The Hindu Business Line : `Rail Budget not to hit road transport sector'

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Kolkata Feb. 27 The Railway Budget for 2007-08 will not affect the road transport sector, at least immediately, according to Mr D.P. Agarwal, Vice-Chairman & Managing Director of Transport Corporation of India (TCI).

"We do not see any immediate impact on the road freight sector," Mr Agarwal has observed in a statement. "The road transport sector offers the last mile advantage and has the capability to offer end-to-end solutions over rail transport."

PPP Model

He, however, feels that there should be better co-ordination between rail and road sectors in the long run as the two sectors together can enhance productivity and efficiency on the country's logistics front. "Our recent tie-up with the Container Corporation of India (Concor) is reflective of our belief in this concept," he remarks.

The decision to promote the PPP model in the Railways, in his opinion, is a progressive step and should be executed through the BOT route. This will not only expedite the development of rail infrastructure, but also improve the operational efficiency. The PPP model, he suggests, should also be extended to develop warehousing facilities and logistics parks to boost multi-modal transportation of goods.

He expresses the hope that various initiatives outlined in the Rail Budget such as development of 20,000-km high-density network, upgradation of the existing rail network and strengthening the wagon fleet will help reduce congestion on the burgeoning rail freight sector.

The proposal for a special complaint redressal cell is a step in the right direction, as it would facilitate quick and expeditious settlement of cases, he adds.

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`Rail Budget not to hit road transport sector'