With the country?s booming export-import trade, containerised movement of cargo by rail is likely to be the next big thing in terms of logistics. Not only is it faster, but also it is also more economical. Rail Bhavan mandarins are already projecting numbers and making new plans to boost this aspect of
freight movement.
The ministry has already permitted private companies to run container trains. Some 15 companies, including state-run Container Corporation of India, have permits to run private container trains. Railway minister Laloo Prasad in his Budget speech this year projected that container traffic would jump five-fold to 100 million tonne (mt) by 2011-12, against the 20 mt carried at present by the railways.
The railways ministry also plans to introduce a number of measures to help boost the containerised movement of cargo. It has already begun running double-stack container trains on diesel routes and is now looking at running them on electrified routes. The ministry has finalised plans for triple-stack container trains on electric routes for domestic movement of cargo. It is also planning to set up many more inland container depots (ICDs) and warehouses to meet the huge rise in railway freight traffic. To new container operators, it has already provided its old terminals to use as ICDs until they develop their own infrastructure.
More importantly, the ministry hopes that the dedicated freight corridor would eventually sort out any congestion on the railway network due to the large number of private container trains plying on it. However, ground realities reveal quite a grim picture and there is need for a greater overhaul of the railway system before containerised movement by rail really catches on. The main problem is the limited rail network and related infrastructure such as ICDs and warehouses.
Of the 15 companies with container train permits, only eight are operational. State-run Concor remains the largest player so far. Adani Logostics, India Infrastructure Leasing, Container Rail Road Corporation, Hind Terminals, Gateway India, JM Baxi & Co, Bothra Shipping and the recently launched Emirates Trading Association are among those that have begun running container trains.
Estimates reveal that private container trains total only 31 so far, compared to about 145 run by Concor. The railway ministry estimates that private operators transport about 0.25 mt of goods every month. Clearly, the new entrants have a long way to go in terms of adding freight transportation.
While a number of companies had evinced interest in getting container train permits from the railways, their enthusiasm dried up as estimates showed that the existing rail network could not sustain many new entrants. Earlier, during the year, when the railways had reopened applications for container permit licences, about 60 companies had shown interest and attended a meeting with the ministry of railways.
However, despite the huge response, only Kribhco finally took a license. Retail biggies such as the Future Group, Aditya Birla Group and Hindustan Unilever Ltd decided to wait a while. Similarly, international logistics players such as Mitsui OSK Lines, Hyundai Merchant Marine, NYK Lines and Transport Corporation of India too did not apply for a permit.
The most common refrain amongst these companies was the infrastructure bottlenecks. The 15 players who already have permits would congest the existing rail lines and without a dedicated freight corridor in place, it would be impossible to run more trains, most of them said.