The newly-launched time-table goods train introduced by Eastern Railway (ER) in association with Container Corporation of India (Concor) is yet to pick up reasonable volume of container cargo. Although the train, being run on a weekly basis, is carrying capacity cargo so far, chances are that this may fall after a month or so when traditional traffic dies down.
"At present, there is a surge in jute movement from West Bengal to Punjab. But that is going to die down from September onwards. We have to complement this with value-added container cargo, which is yet to flow in in large numbers," G K Mohanty, regional general manager, Concor told Business Standard.
The cargo train, which leaves Chitpur yard on Wednesday and reaches Tughlaqabad in New Delhi on Friday in guaranteed transit time of below 48 hours, carries 35 wagons, each having two containers on board. The train is currently carrying 16 to 17 containers with value-added items for which the special initiative of time-table train was targeted at.
"Everything will now depend on aggressive marketing of our service, which is cost-effective and time saving. We will increase publicity campaign and establish more direct contacts with corporate houses. We are looking at items such as tea, butter, consumers goods from big houses such as HLL and ITC. Paints and lube oil, too, are our focus areas," Mohanty said.
The bigger challenge is perhaps breaking the stronghold of the road transport sector which commands largest marketshare in general goods traffic. The flexibility in fixing freight rates on a daily basis give competitive advantage to road sector. Moreover, sometime they carry more goods than what is allowed. They also provide door-to-door service.
Mohanty, however, claimed that Concor's service is cost-competitive enough to challenge the road sector. "We also give door services, but it is costlier," he said.
Concor is also deferring its plan to introduce premium rates for this train. The proposal of partial compensation in case of delay is also ruled out at present. "This is an initial offer at special price," he added.
The decision to run this freight train gains significance in the light of falling volume in bulk commodities such as coal and steel. Railway officials feel the limited product basket has restrained the growth of freight movement through railways, whose marketshare has come down from 70 per cent in post-indigence to 40 per cent at present. Moreover, the insistence on high volume requirement has driven the small cargoes to the road sector.
