The Hindu Business Line : Private container train operations delayed

Kolkata March 15 It is over a year now since the Indian Railways issued licences to more than a dozen private firms for running container trains but nothing much has happened.

Most of the firms are yet to start operations and thus have failed to pose any major challenge to the State-owned Container Corporation of India (Concor).

One reason for this of course is the delay in the signing of the model concessional agreement between the Railways and the various operators. The signing took place only in January this year. Also, most private container operators are still to acquire their own rakes which are under construction in various wagon-manufacturing units. But most important, the issue of terminal operation and management has not yet been satisfactorily resolved.

Theoretically, all private operators are supposed to have their own terminals. But then this is not a smooth process, the acquisition of land being the most difficult.

Also, to have the facility ready will take time. Many private operators therefore have urged Concor to allow them to use its terminals which, complete with Customs facilities, are ideally suited for handling export-import traffic.

It is not that Concor is averse to such a proposal but there are several issues which have to be sorted out first.

Concor welcomes the idea of letting private operators use its own terminals on the ground of better utilisation of the assets.

Condition for access

Not all its 56 terminals across the country can boast of high capacity utilisation. But then Concor is yet to firm-up the terms at which the terminals are to be offered to private operators for use.

Too liberal terms might invite the criticism of extending undue favours but, more important, by doing so Concor will only help competition become intense at its doorstep. Too stiff terms, on the other hand, might scare the private operators away, which in the long run might not benefit Concor.

The private operators will either set up their own terminals or will turn to others who are setting up terminals.

This will lead to fragmentation of the market now entirely controlled by Concor.

Another option

Still another option is being examined. Some private operators are believed to have urged the Railways to acquire lands (not a problem for the Railways) and set up a terminal as common users' facility with the ownership and the management of the terminal left to a separate company which may be a joint venture between Government and non-Government organisations.

The Railways, it is learnt, is examining the proposal and working on a suitable model.

It is natural for the Railways to have interest in such a model.

After all, cargo hubs and logistics parks are being planned as part of the much-publicised dedicated freight corridors.

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