The Hindu Business Line : Container train operators to seek reduction in haulage rates

New Delhi March 16 Container train operators have decided to approach Indian Railways through their Association to seek reduction in haulage charges and early action on their proposals (pending with Railways) to use railway land for setting up terminals.

Haulage charges are a cost element for container operators. Indian Railway levies haulage charges on container operators for allowing them to use locomotives, tracks and signalling system of Railways.

Talking about the need to have "rationalised haulage charges" so that they are able to garner higher container traffic share to rail routes, the operators sought relatively lower charges for 40-feet equivalent unit containers.

Tariff slab

At present, Indian Railways does not have specific tariffs for 40-feet containers — they are charged uniformly at twice the rates for 20-feet containers. However, the carrying capacity for 40-feet containers is not equal to that of two 20-feet containers.

"Internationally, 40-feet containers are rated (priced) at 35 tonnes and 20-feet containers are rated up to 30-tonnes," Mr R.C. Dubey, Managing Director, Pipavav Railway Corporation Ltd, said on behalf of all container operators. Mr Dubey is the President of the Association of Container Train Operators.

For 40-feet containers, most of the shipping lines and several international Railways charge tariffs which are about 1.5 to 1.6 times the tariffs levied for 20-feet equivalent unit containers, he said.

The operators would also seek concessions in empty haulage directions of container movement, on the lines of discounts that Railways offers to its other freight traffic moved through wagons.

Land markers

Additionally, several operators have sought lease of identified land from Indian Railways so that they can build terminals and depots. "Applications seeking permission to use specific land have been moved to Railways during the last one year period, at various points of time by various operators," Mr Dubey said.

Till operators have land and terminals in place, they cannot take deliveries of their rolling stock (flat wagons) and cannot offer services on a point-to-point basis. "Where would we park our flat wagons during detention," asked an official.

Even as Railways has stated several times that it would give preferential treatment to container operators while allotting land, the operators association has sought a clear, land lease policy from Railways as soon as possible.

Fourteen players, including the incumbent (Concor), Adani Logistics, Central Warehousing Corporation (CWC), Gateway Distriparks, Hind Terminals (MSC Group), Reliance, SICAL Logistics, J.M. Baxi Group, Delhi Assam Roadways and Pipavav Rail Corporation Ltd have received approvals from the Railways to offer containerised services in early 2006. In 2007, only one firm, Kribhco, applied for the container operations licence.

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