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CONCOR to buy 200 more LNG trucks for running first mile, last mile service, says CMD Swarup

CONCOR will buy 200 liquefied natural gas (LNG) trucks to add to the 100 it had bought previously as the state-run rail hauler looks to strengthen its green logistics solutions as part of the first mile, last mile offerings to customers.
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Source: ET Infra

“The board has cleared a proposal to procure 200 more LNG trucks in the near future after seeing the robust demand we are getting,” Sanjay Swarup, Chairman and Managing Director told analysts during the fourth quarter earnings call on 17 May.

Of the 100 LNG trucks ordered earlier at Pune-based Blue Energy Commercial Vehicles Pvt Ltd, CONCOR has procured and deployed 90 trucks at Khatuwas, Chennai, Nagpur, Baroda and Ankleshwar terminals, which the Company said was giving “good commercial returns”.

Currently, CONCOR is providing first mile, last service to some 25 percent of its total volumes of 4.72 million twenty foot equivalent units (TEUs) handled in FY24.

“This year we want to raise the share to 50 percent and then to 80-85 percent,” Swarup said.

It is going to be a cash cow for us because the margins that we thought are even better in our LNG trucks, said another CONCOR official.

The navratna PSU has rolled out an app based first mile last mile service, developed by Tata Consultancy Services (TCS).

Globally, logistics contributes to 14-15 percent of carbon emissions and in that the contribution of heavy-duty trucking is about 90 percent. The trucking industry is one of the most significant polluters, producing up to 450 million tonnes per annum of CO2, as well as significant noise, particulate matter, and pollutants each year.

Compared to diesel trucks, an LNG truck emits up to 28 percent less carbon dioxide (CO2) and up to 30 percent less noise. It can also raise an organization’s scores on the environmental social and governance (ESG) ratings.

When appropriately utilised with trained drivers, LNG trucks have the potential to reduce particulate material (PPM) by up to 91 percent.

LNG trucks have seen great success in the Chinese and European markets.

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