The Hindu Business Line : Container train operators ask wagon makers to ‘hold’ orders

Wagon manufacturers such as Texmaco and Titagarh Wagons may get impacted by the slowdown as the container train operators ask them to ‘hold on’ to the orders.

Simply put, container train operators are now opting to delay accepting deliveries of additional wagons that they had ordered earlier. This is because container operators are unable to fully utilise the current lot of wagons and have started stabling their rakes on account of the sudden dip in cargo availability in October.

Four container train operators Business Line spoke to confirmed (on conditions of anonymity) they have approached wagon makers seeking a deferral of the orders.

“Given that cargo availability is suddenly down to the extent that we are resorting to stabling of rakes, there is no point going fast on further acquisition of rolling stock. We have to pay the inventory costs to the wagon makers when we ask them to go slow on the orders,” said an official from a firm that offers container train services.

“We will review the cargo demand situation over the next few months before embarking on the wagon procurement programme,” said an official from another container train operating firm.

Wagon manufacturers, meanwhile, offered a guarded response, declining to share any specific numbers.

Mr Ramesh Maheswari, President and Chief Executive Officer of Texmaco Ltd, said, “As of now, there is no ‘significant’ impact on our production and despatch programme.”

Mr Umesh Chowdhary, Managing Director of Titagarh Wagons Ltd, said, “There are some deferrals by some operators. We expect this to be a temporary glitch. Many train operators are adopting a wait and watch policy.” From the current supply of wagons, about 10-15 per cent is booked by the new container train operators, said Mr Chowdhary.

Charges to Rlys

For stabling their rakes in the Indian Railways’ yards, container operators have to pay the Railways Rs 13,000 a day a rake (pretty much like parking charges because the stabled rakes further congest the rail tracks).

Hit by low levels of cargo, container train operators have approached the Railways for a reduction in haulage charges across the board. Haulage charge is the money paid by container train operators for using rail infrastructure such as track and signalling system.

The Railways has already reduced haulage charges in the heavy-weight domestic segment by ten per cent for container operators for the November 1-December 31 period.

Container train operators Business Line spoke to pointed out that compared to the cargo loadings in September, October loadings have decreased by about 20 per cent for their companies.

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