The Hindu Business Line : PRCL to offer container services on rail tracks

INDIAN Railways has given a go-ahead to Pipavav Rail Corporation Ltd (PRCL) to offer containerised services. The company has emerged as the first player to receive an approval to run container operations on the rail tracks.

The company has received an in-principle approval from the Ministry today for running containers from ports of Pipavav, Mundra, Chennai/Ennore, Vizag and Kochi with hinterland, according to an official. The operations of PRCL can start only after a concession agreement is signed with the Railways.

PRCL is a 50:50 joint venture between the Indian Railways and Gujarat Pipavav Port Ltd that was set up to construct, maintain and operate the 270-km-long broad gauge railway line connecting the Pipavav port in Gujarat to Surendranagar Junction on the Western Railway. With this, PRCL can offer services to EXIM and domestic container traffic.

To meet the prerequisite of making arrangements for inland container depots (ICDs), PRCL had recently tied up with Container Corporation of India (Concor) for building ICDs in collaboration. The company might need to mobilise resources to acquire rolling stock or may lease rolling stock from Concor.

The corporation had applied for permission with Rs 10-crore registration fee for running offering containerised services.

Indian Railways had recently announced the policy for allowing players other than Concor to offer containerised services. As per the policy, applicants need to have a net worth or annual turnover of Rs 100 crore and make their own arrangements for a rail-linked ICD by leasing it from ICD owners or by owning it.

They also have to procure flat wagons for transporting containers, whereas Railways would provide locomotives. The permission would be for a 20-year period and can be extended by another 10 years subject to satisfactory functioning by the operator.

The rail routes on which permissions would be granted were grouped in four categories.