Gateway Distriparks, container logistics company, is eyeing to transport cars on container trains between Delhi and Chennai.
To ferry cars between Delhi and Chennai on container trains
MUMBAI: Gateway Distriparks, container logistics company, is eyeing to transport cars on container trains between Delhi and Chennai. The company is planning an inland container depot (ICD) in Chennai to be operational by end of FY09.
The depot would be connected to the ICD in Delhi (Garhi) and cater to the logistics need for auto companies in both the states.
R Kumar, chief executive officer, Gateway Distriparks, said, “Major car manufacturers like Hyundai, Maruti, are either based out of Delhi or Chennai and need faster and cheaper transportation of their products, which is possible through trains and it is this market that we intend to tap.”
The company is yet to finalise the location for its Chennai ICD and is evaluating all options. “We are assessing both options; taking over a sick company and converting it into an ICD or buying land and building a new ICD, whichever is feasible,” Kumar said.
However, Gateway is keen on taking over a sick company and has applied to the Board for Industrial Financial Reconstruction (BIFR) for options in Chennai. Kumar said, “Converting an existing factory into an ICD is much easier, especially if it already has a rail siding like cement companies have, than building one from scratch.” Gateway is also willing for a joint venture with companies who have surplus land and want to build an ICD.
The depot is proposed to be spread over 20-40 acres at the cost of about Rs 50 crore. “The ICD in Chennai would boost our domestic business, where we are developing multiple routes simultaneously and expect the domestic routes to complement regular Exim traffic in a year’s time,” Kumar added.
The Chennai ICD when connected to Delhi would facilitate Gateway to carry cars in container trains and would be the major cargo in that route. Gateway is confident to find success in this venture owing to the fact that transportation through trains is faster and cheaper as compared to road.
One train has 45 wagons with one container each and one container can accommodate three standard-sized cars, so effectively transporting 130 cars on one train.
About 65 trucks would be required to transport a similar number of cars by road. Kumar indicated that when the proposed dedicated freight corridor comes up with double stack container trains facility, the number of cars can be transported would be twice.
Though many logistics companies like Allcargo Global Logistics are entering this segment of transporting cars in containers, still almost all cars are transported by road, which takes a longer time and results in some damage to the car.
Gateway has a pan Indian railway licence to run container trains and currently has a fleet of six trains and has ordered rakes to triple the fleet by the end of the next year.
s_archana23@dnaindia.net
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