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News of Jan
4, 2007
Railways Seeks to Wean Away
Traffic from Roads
New Delhi, Jan 4
Indian Railways Thursday signed an agreement with 14 container train
operators in a move that is expected to wean away freight traffic
from roads, improve goods transportation and help rail freight
revenues rise several fold.
Railway Minister Lalu Prasad said a new beginning was made last year
by granting licenses to private parties for running container
trains, which will be operated by the railways on its network on the
basis of haulage charges.
"The signing of the concession agreement today heralds a new era in
giving a legal shape to mutual relations, rights and
responsibilities between the Indian Railways and the container train
operators," said the railway minister at the signing ceremony which
was attended by Finance Minister P. Chidambaram and Planning
Commission Deputy Chairman Montek Singh Ahluwalia.
Lalu Prasad stated that the agreement clearly defines the mutual
rights and responsibilities, enabling the operators to take loans
from banks without difficulty.
"The operators will be investing about Rs.4 billion for manufacture
of more than 2,000 wagons," he said expressing confidence that the
railways will be able to attract substantial investment in
manufacture of wagons and container terminals.
Around two-thirds of railways' income comes from freight traffic
with around 10 commodities generating bulk of the freight revenue
and 90 percent of freight loading.
"There will be substantial increase in the share of rail-borne
container traffic which is currently limited to 22 percent. This is
likely to result in increase in growth of container traffic from the
present 20 million tonnes to over 100 million tonnes by the end of
the 11th Five-Year Plan (2012)," the railway minister stated.
Though the agreement was signed Thursday, Innovative B2B Logistics
Solutions Pvt Ltd, one of the container train operators, has already
commenced operations of container trains, Ashok Gupta, adviser
(traffic) railway board, told IANS.
"By April we expect a couple of more operators to commence
activities," said Gupta.
"This public-private partnership is expected to help the railways
increase its freight movement and revenue three to four fold in next
five years."
Adani Logistics Ltd/Mundra Port & Economic Zone Ltd., Boxtrans
Logistics India Services Ltd., Container Rail Road Services Pvt Ltd,
Delhi Assam Roadways Corporation Ltd, Emirates Trading Agency,
Gateway Rail Freight Pvt Ltd, Hind Terminals Pvt Ltd, India
Infrastructure & Leasing Pvt Ltd, Pipavav Railway Corporation Ltd.,
Reliance Infrastructure Engineering Pvt Ltd and SICAL Logistics have
all signed up for an assured investment of Rs.100-500 million.
Public sector entities including Container Corporation of India (CONCOR)
and Central Warehousing Corporation have also signed up to help the
railways boost its freight handling and fight off competition in
what was earlier a monopoly market.
The public-private partnership is also expected to see the creation
of several logistics park across key cities boosting the movement of
not just export-import goods but also domestic movement of products
including food and industrial products.
IANS
News of Jan
4, 2007
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