Spares crisis may derail pvt container train plan

Private companies planning to run container trains are facing a severe crisis now. India has severe shortage of train wheels and axles.

This problem will spoil the party of leading companies including Reliance Infrastructure, Gateway Distriparks and Adani Logistics which had evinced interest in running private container trains.

"The existing capacity of wheel and axle manufacturing in the country is not sufficient to meet requirements even as the government has decided to open up container train operations to private players," industry sources said.

Fourteen operators have already applied for licences to operate container trains on the pattern of Container Corporation of India (Concor).

These include Reliance Infrastructure, Pipavav Rail Corporation, Delhi Assam Roadways Corporation, Gateway Distriparks, Hind Terminals, Mundra International Container Terminal, India Infrastructure & Leasing, Adani Logistics, Dinesh International- Emirates Trading Agency, J M Baxi, SICAL Logistics, Central Warehousing Corporation and Bothra Shipping.

Industry sources pointed out that companies would have to wait at least one to two after placing orders for wheels and axles. Durgapur Steel Plant and Rail Wheel Factory in Bangalore are the only companies manufacturing wheels and axles.

"Though Indian Railways has proposed a wheel manufacturing plant at Chapra in Bihar for reducing dependence on import of wheels, it will take more time," they added.

Another representative of bidder observed that import of wheel and axle would add to their establishment cost.

"We will have to invest heavily in setting up inland container depots, handling facilities and other equipments to support container train operations. This is in addition to investment on registration and purchasing other assets including wagons, axle and wheel," he said.

According to a railway logistics consultant, wagons will not be a problem for these companies but they will have to import wheel and axle from China and Romania.

"However, initial two years will be a tough task for private container train operators other than Concor," he pointed out.

Some of the participants said that Concor is entering into strategic alliances with players such as Central Warehousing Corporation and Pipavav Rail Corporation before bidding process which will give a natural edge to them.