The Hindu Business Line : Private firms may be allowed to lease wagons

After allowing private players into container operations, the Indian Railways (IR) may allow private firms to get into the business of wagon leasing. These firms may acquire and lease wagons to various players running rakes on Indian Railways' tracks, according to official sources.

At present, while Container Corporation of India (Concor) acquires flat wagons for its operations on its own, several other entrants in the sector have lined up acquisition plans or have entered into agreements with Concor to lease its wagons.

However, these players also think there is space for a pure-play wagon leasing company, provided the conditions for operations are well laid out.

"Concor would only lease out its surplus wagons, which will not be enough to meet the needs of all new players entering the market," said an official from a private container operator that plans to start services this year.

Asked if it would be possible for any player to acquire flat wagons and start leasing them to operators in the containerised services segment without involving the Railways, the official pointed out that the Railways would need to be involved as all rolling stock that run on rail tracks has to conform to the Railways' safety standards.

14 firms on track

When the Railways opened its containerised sector recently, 14 companies filed their applications with the IR to offer services. The Railways mopped up a registration fee totalling Rs 540 crore.

Ten companies have applied in the Rs 50-crore category, and four in the Rs 10-crore category.

Companies in the Rs 50-crore category include Adani Logistics, Central Warehousing Corporation (CWC), Container Corporation of India (Concor), Dinesh/ETA (Emirates Trading Agency), Gateway Distriparks Ltd, Hind Terminals (MSC Group), India Infrastructure Logistics Private Ltd (a joint venture of Mr Rajeev Chandrashekhar's Hindustan Infrastructure and APL, a subsidiary of Singapore-based NOL), MICT (P&O Ports), Reliance Infrastructure Leasing and SICAL Logistics.

Players in the Rs 10-crore category include Delhi Assam Roadways Corporation Ltd, Bothra Shipping, JM Baxi and Co, and Pipavav Rail Corporation Ltd (PRCL).

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