The Hindu Business Line : Moving cars by rail to become costlier from today

For a distance of 1,200 km (distance between Maruti Suzuki’s Gurgaon plant and Mundra port), the end-to-end rail transportation cost will become Rs 7,900 per car. The corresponding road transportation rate is Rs 6,900 per car, said industry sources.

The domestic car transportation market is primarily served by road with companies moving 95-96 per cent of their cars by road. The road transporters are able to provide end-to-end service unlike the railways.

The Railway Ministry has decided to withdraw the 25 per cent discount it had offered for specially designed wagons of Indian Railways (called BCACM wagons) to carry automobiles.

BCACM wagons are actually modified container flat wagons with two tiers developed for carrying automobile traffic.

In August 2008, Indian Railways had started a pilot project for moving automobiles by modifying container flat wagons.

Railways had then decided to offer a 25 per cent discount on the tariffs so that they could match the lower tariffs offered by road transporters.

For instance, the Railway freight rate per Maruti Alto between the two rail heads (1,200 km) in a BCACM wagon is Rs 7,243. But the car manufacturer has to undertake an added cost of Rs 700 a car (last mile connectivity charge of Rs 500 and loading/unloading charge of Rs 200).

Adani Logistics

But, Adani Logistics, the Adani Group’s container train operating arm, which transports cars in container trains between Patli (in Haryana) and Mundra port, claims that it is transporting cars at tariffs of Rs 6,900 a car.

Adani Logistics uses special containers of South African firm Kar-trainer and fits in five small (Maruti Suzuki 800 model) cars in each 40-feet unit equivalent container.

Each rake can carry 45 containers, thus, allowing 225 cars to be transported in a rake. The cars are then exported from Mundra port to various European countries in NYK’s vessels.