Railways is planning to run double and triple stack container trains, which, players feel, would boost efficiencies and provide economies of scale.
MUMBAI: Railway minister Lalu Yadav’s plans to increase railway’s freight capacity to 1,100 million tonnes (MT) 2011-12 from 724 MT currently, and increase container traffic to 100 MT by the same time have enthused the container industry.
“It is extremely good for the (container) industry. Investment for private operations in the sector is encouraging,” says Sachin Bhanushali, chief executive of Gateway Distriparks, a logistics player having extensive interests in container-based rail transport.
Railways is planning to run double and triple stack container trains, which, players feel, would boost efficiencies and provide economies of scale. Bhanushali says his firm would begin operating double stack, currently only operated by state-owned Container Corp, by as early as middle of the year.
Gateway Distriparks stock closed 2.6% up at Rs 167, while Container Corp, whose monopoly is now increasingly under threat, was down 3% at Rs 1,830.
Railway container operators say although freight charges were unchanged in the last three years, haulage charges were hiked by over 50%, over the last 18 months. With over two-thirds of the operating cost being accounted by haulage alone, a stable pricing policy could bring down freight charges.
Although container traffic is growing 15% annually, railway’s share is fast diminishing. For instance, from JNPT to Delhi NCR, the busiest freight corridor of the country, Railway’s share for container transportation is 35%, with the rest being transported through road.
Looking at the shortage of rolling stock, railways is setting up a joint venture company with the Kerala government. Railways have set a target to have 200 diesel and 200 electric engines, besides 11,000 wagons during the year.
“The budget has correctively identified the capacity constraints of rolling stock. They are planning to increase the rolling stock production through new factories for manufacturing electricdiesel locomotives, coaches and wheel and axle factories,” says Rajeev Jyoti, managing director, Bombardier Transportation, which manufacturers Railway engins.
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