PHOTO: RAMESH SHARMA

NEW VENTURES: Railway Minister Lalu Prasad checking out a camera at a function where the Indian Railways signed agreements with 14 players to handle container transport operations. The signing of the pacts in New Delhi on Thursday ended the monopoly of the state-run Container Corporation of India.

NEW DELHI: In a major step towards implementation of the decision to privatise container services by ending the monopoly of state-run Container Corporation (Concor) in cargo business, the Indian Railways on Thursday inked concession agreements with 14 players to handle container transport operations. The move is expected to help increase government revenues by Rs. 2,000 crore annually.

Railway Minister Lalu Prasad, Finance Minister P. Chidambaram and Deputy Chairman, Planning Commission, Montek Singh Ahluwalia, were present at the signing ceremony of public-private partnership agreements. Incidentally Concor, which so far had the monopoly on container operations, is one of the companies that have signed the concession agreement.

As per the agreements, the companies would buy containers from manufacturers, build inland container depots and find customers, while the Railways would run the goods trains.

Hailing the occasion, Mr. Prasad said, "I am happy that 14 operators are investing about Rs. 400 crore for operation of around 2,000 containers. I am confident that in the next few years, we will be able to attract investment worth thousands of crores in container and terminal operations.''

He wanted private operators entering the arena to take a look at the prospects of moving domestic cargo even as they transported import and export goods.

Referring to the demand of private operators for guarantee of fixed transit time, the Minister said these demands would be met once the new freight corridors became operational.

The other players that have signed the agreement included Anil Ambani-owned Reliance Infrastructure Engineers Ltd, Adani Logistics Ltd, Central Warehousing Corporation, Delhi Assam Roadways Corp, Innovative B2B Logistics and Pipavav Railway Corporation.

The companies have paid a total of Rs. 500 crore to the Railways as licence fee. The deadline for execution of the business is three years, while one of the players has already started the business in the eastern sector.

Later, Railway Board Chairman J. P. Batra said: "Considering that container traffic is growing at 20 per cent annually, we will be able to add additional capacity through these agreements with private players.'' It would enable the Railways to spend its limited resources on other priority areas, while giving tough competition to the road freight traffic with the addition of capacity, he said.

The board has also invited bids for the second phase of container business till January-end, he said, adding that the Railways planned to extend the PPP model in budget hotels, platform development and locomotives production, besides development of freight corridors.

Under the current agreement, while nine players have deposited Rs. 50 crore as one-time fee with the Railways for all-India rights of operating container business, five players deposited Rs. 10 crore each for area specific operations.

Mr. Batra said the Railways would charge a fixed haulage fee on these companies for providing its trains and lines for the container traffic, but they would be free to charge freight rates from the consignees.

The Railways is anticipating that the new players would help it double its annual container business of around 21 million tonnes over the next three years, besides providing cheap transport to industry and traders.

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