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Railways, CWC sign pact for rail side complexes

By Our Special Correspondent

NEW DELHI DEC. 20. The Indian Railways and the Central Warehousing Corporation, a public sector enterprise under the Ministry of Food and Civil Supplies, today signed a memorandum of understanding for setting up rail side warehousing terminals at 22 identified major locations in the country for enhanced customer services and logistic support. Under the pact, the Railways get a share in warehousing revenues of the CWC at the terminals to the extent of 5 per cent of the gross revenues or 6 per cent of the market value of the land leased out to the CWC. The CWC would make an estimated investment of Rs. 225 crores to make possible door-to-door delivery of goods and the facility of storage as part of the desired supply chain by customers.

The memorandum was signed in the presence of the Union Railway Minister, Nitish Kumar, and the Food and Civil Supplies Minister, Sharad Yadav, the Minister of State for Railways, Basana Gowda Patil, and the Chairman of CWC, K. C. Tyagi. The Managing Director of CWC, N. K. Choubay, signed the MOU on behalf of the Food Ministry, while the executive director (traffic), S. K. Chowdhary, signed it for the Railway Ministry.

Mr. Yadav said the agreement would enable CWC to not only provide hassle-free, eco-friendly and fuel efficient customer satisfaction service but also help commercially in the cost of transportation and distribution of goods. He thanked the railways for making land available to CWC on lease at nominal rate.

Responding to Mr. Yadav, Mr. Nitish Kumar said the pact with CWC would help the Railways in attracting piecemeal domestic goods traffic, which was expected to encourage high revenue yielding additional traffic and improve the package of services. He said the MOU had been entered into after the success of the pilot project set up in Bangalore. With this the 2003-04 budget promise had been fulfilled, he added.

The alliance is aimed at achieving optimal efficiency of transportation logistics.

Transportation and warehousing would be the two key elements amounting for about half of the total logistics cost.

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