Running a 760 km railway is a tough task in itself. But difficult times call for unconventional tactics.

And for KRC, times are bad. When conceptualised, feasibility studies showed that the Konkan railway would easily handle freight worth Rs 171 crore per year. The long rail route that connected the entire western coast was considered a boon to the nation. One that would spur the industrial growth that would sustain it in the long run. But KRC's promoters had not reckoned with a slight twist of fate. Even as the railway was under construction, cement and chemical manufacturersin Gujarat discovered sea trade. Cost of sea transport was not only 50 per cent lower, but time schedules were within the company's control. The big guys like Gujarat Ambuja Cement and L&T even constructed jetties to meet captive needs.

By the time the railway was completed last year, KRC's business had practically faded away. At the current level of traffic, in 1998-99, KRC's first accounting year, it will be lucky to make Rs 50-60 crore. And given the fact that freight subsidises passenger travel, the very raison d'etre of the railway is threatened. Hence the search for new business. Says Rajaram, "We found that customers are uncomfortable with the image of the railways.

It is percieved as an intimidating edifice, an organisation that makes no commitment towards service. It was seen therefore as the last option." It is here that KRC decided to look for a solution. First they had to make commitments. Says Rajaram, "With all the logistics planning that companies are doing, it is vital to make a commitmenton the delivery schedule."

Another issue was the various modes of transport and the paperwork involved.

It's a hassle KRC has taken onto itself. Not only does KRC handle the different modes of transport, but is also responsible for interacting with its counterparts such as the Western, Central and Southern Railway, whose services are required until the cargo reaches home ground - and that is only at Roha. But what ever the issue - rakes to be procured, or documents to be cleared, the headache is KRC's.

In short, book your cargo, and forget about it. It's service customers are more than willing to pay for. For starters, KRC is already moving 25 rakes for Gujarat Ambuja from Nagothane to the south. As more and more companies find bottlenecks at ports in the south a drain on their resources, they will start to test the Konkan Railway. If the railway is successfully wooing back some of the trade it lost to the shipping industry, it is not sparing road operators either.

It will also be offering servicessuch as roll-on-roll-off, which enable a truck operator to roll his truck onto the train and disembark at a point where it is most convienent to reach his destination. With road transport at 20-30 per cent more expensive than rail, KRC is only trying to skim some of the cream off its business. In the long run, as client decide to use the Konkan railway directly, it could even begin to eat into the share of truck operators.

KRC will soon be setting up offices in Gujarat and Kerala. "But," says Rajaram, "our customers can log into our systems and book their orders, irrespective of whether we have an office in the area." The company thus hopes to reduce its establishment costs by using technology to reach a wider base of customers.

If customers buy the pitch, KRC hopes to rake in atleast Rs 100 crore, a amount that could significantly bridge the Rs 250 odd crore gap in its revenues at the moment. To move things along a little faster, KRC has set up a training school in Cochin to give its engineers a taste ofKotler. For an organisation that is losing a crore a day, nothing can be too desperate.