Truckers tie up for rail container services

At least 20 trucking companies are negotiating a consortium to operate rail containers, a business that was opened to private participation last month, and retain their dominant share of the container transport market.

Sources close to the development said over 20 large, medium and small road players had applied for licences to operate rail containers.

They included leading names like Transport Corporation of India (TCI), Patel Roadways and Best Roadways.

TCI is expected to lead the consortium and have the largest stake. Though acknowledging that they were "studying the possibilities of the project," TCI Executive Director Vineet Agarwal said no decision had been taken on running container trains.

The idea behind the alliance is to spread the cost of the huge investment needed to handle a container train running from a hinterland to a port. The costs, which could be as high as Rs 500 crore, include building of an inland container depot and container freight station, acquisition of wagons and so on.

The government has licensed over 13 private players to operate railway containers, ending the 19-year monopoly of the Container Corporation of India. A second round of bidding ended a few days ago.

The Railways hope to control at least 50 per cent of the container market by privatising operations. Road transport currently accounts for 70 per cent of the container market.

Asked about the possible diversion of cargo from road to rail as a result of privatisation, Agarwal said the impact on road transport would not be felt for four or five years.

"The road sector will be hit only when the dedicated freight corridor becomes operational in another seven years," he said.

Containerised import-export traffic is growing at 15 to 20 per cent a year and is expected to almost double to 110 million tonne in five years, railway officials said.