The Hindu Business Line : Cos asked to suggest entry barriers — Rlys consults stakeholders for policy on container operations

THE Indian Railways has sought comments from stakeholders to firm up its policy on allowing other organisations (public and private) to run containerised operations.

A meeting was recently held on this issue involving the various stakeholders, including the Railways, the Shipping and Commerce Ministries, the Planning Commission, Shipping Corporation of India, Container Corporation of India (Concor), IL&FS and other private companies.

"We have asked the companies to suggest possible entry barriers," said a Ministry official.

There are certain rail routes where containerised traffic is heavy and which would be attractive for several players.

"Given the fact that Railways' track infrastructure is limited and cannot accommodate all the players at the same time, how to limit the number of players on those routes is the issue," said an official present in the meeting.

No consensus yet: Consensus is yet to emerge on the final policy formulation, almost a year after the Ministry approved (in early November 2004) a proposal to allow Pipavav Rail Corporation Ltd (PRCL) to run containers and then "pended it." Subsequently, in his 2005 Budget speech, the Railway Minister, Mr Lalu Prasad, announced the opening of the sector and that a policy would be in place.

At the recent meeting, companies were asked whether there should be a licence fee in the form of entry fee or competitive bidding to allow operators.

Another option is to make operators pay a registration fee on a per flat wagon basis.

The stakeholders were also asked whether the number of operators per route should be limited. And if preferences should be given to those who have already invested in the rail connectivity-related infrastructure.

"Whether players such as inland container depot owners, port companies, shipping companies, rail track owners and cargo companies should be given a preferential treatment is another issue," said an official.

Similarly, an option suggesting the imposition of a congestion surcharge is being debated for those routes that attract the maximum traffic.

At present, Concor, an Indian Railways subsidiary, is the only container operator on railway tracks.

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