The Hindu Business Line : Rly Ministry to lay down norms for container operators

RAILWAY Ministry, which is currently working on a policy paper on allowing private players to operate in the container operations sector, is likely to consider giving permission to those companies who broadly satisfy few basic conditions, among others.

One of the conditions set in the proposal is that the player should have made significant investments in laying of railway tracks. Second, the company should either own an Inland Container Depot (ICD) or should have a tie up with an ICD operator.

Third, the company should have its own wagons, said reliable sources.

But the private player might not be allowed to offer containerised operations on all routes.

"The player would be required to obtain route specific licences from the Ministry," said a reliable official.

Moreover, the route is likely to be specified for the operator, with one end being the port near which the operator has invested in building up of rail line, and the other end being various hinterland points.

On the cost side, the operators will probably to be asked to pay up a certain percentage of their revenues as licence fee.

Additionally, they would be charged a certain fee on a per kilometre basis for every kilometre they move on, which would be at the same level as charged for Container Corporation of India (Concor).

As for the final freight tariffs for the containerised traffic, as is the current practice for Concor, it would be left to the individual operator.

Asked if there would be any limits on the number of players who would be allowed to operate on a given route, the official said, "The condition seeking investments in laying of railway tracks would put its own limitations.

"How many private players would be interested in putting in their money to provide rail connectivity to a single port? How many rail connectivities will be possible and economically viable in the first place?"

Anyway, given the fact that Concor has a pan-India licence to offer containerised transport operations, thus competition between the two players in a specific route will most likely be there.

While these are the points that the proposal outlines, there are issues being debated that include defining the limit of investments in rail line and wagon.

However, there are issues regarding ensuring a level playing field between the new movers and Concor since as on date, Concor doesn't have to pay licence fees.

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