Pvt container rail players' plans derail

Private operators wanting to run container trains will have to wait for at least three more years before their wish becomes a reality.

Indian Railways has issued licences to 14 players to operate container trains on key routes. Container Corporation of India (Concor), currently, is the only company operating container railway in the country.

Skyrocketing haulage charges and shortage of wheels are set to dampen the spirit of private firms. The railways, which had collected Rs 540 crore each as licence fee from 14 players, has not yet signed a Model Concession Agreement (MCA).

Private container rail players said the domestic wheel set and wagon makers are flooded with orders and even overseas manufacturers had increased prices by 35 per cent.

"Concor has recently paid Euro 3,400 for a wheel set as against Euro 1,800 a year ago, an increase of 89 per cent. The overseas companies, recognised by Railway Design and Standards Organisation (RDSO), in China, Romania and France have increased average prices by 30 per cent," sources said.

PSU companies making wagons and wheel sets are flooded with orders from Indian Railways and Concor, upsetting the plans of private operators.

"In order to block new players, Concor has placed huge orders with PSU wheel set and wagon manufacturers in the country and overseas. Now, it is considering an access charge to access its inland container depots (ICDs)," said a leading player.

Railways is also planning a wagon-leasing scheme for private players with a licence fee of Rs 2 crore.

Former Concor chief and president of one of the private operators, Boxtrans Logistics (India) Services, Sharat C Misra said, "Haulage charge (fee to use rail line) has gone up by 65 per cent in the last one year. There was only 30 per cent increase in seven years till November 2005. Since then, the haulage charges have gone up by 65 per cent."