The Hindu Business Line : Rail container operators seek stable cost regime

What they want
Operators request not to mandate moving double stack containers on double stack routes.
Seek bringing down wagon maintenance time
Locomotives be made available at two hours notice

A FILE picture of rail container operations

New Delhi , May 3

Rail container operation licensees have urged the Indian Railways to ensure a stable cost regime.

"We have requested the Railways to announce changes in haulage charges once every year, preferably during the Budget," said a container operator adding that the increase should be based on a costing logic where input costs are taken into account proportionately.

The Indian Railways had called for feedback from the container operators on the agreement that is being worked out.

The operators had a meeting with the Railways on Saturday.

The Railways collects haulage charges for letting operators use its infrastructure such as tracks and signalling system.

During the last few years, the Railways has hiked haulage charges several times. Significantly, none of these changes were announced during the Budget.

Starting from April 1, the Railways had increased haulage charges by about 31 per cent to 210 per cent for various segments for exim traffic. In November 2005, the haulage charges went up by 15 per cent, whereas in April 2005, they were hiked by 5 per cent. In November 2004, the Railways increased the charges by 15 per cent.

Moreover, the Railways has been requested not to mandate moving double stack containers on double stack routes. "The Railways has proposed that single stack containers cannot be moved on double stack routes. Simply put, we have to wait and get double stack load before moving a rake on these routes," said a player pointing out that this could result in delaying the transportation at times.

Players have also requested the Railways to bring down the wagon maintenance time to about 4-6 hours from the proposed level of 24 hours.

The Railways have proposed that all rakes have to be examined by the railway staff at the operators' premises after the rakes have travelled a 7,500 km distance, and the examination time is 24 hours.

"We would not like the rakes to be idle for such a long duration," said an official.

Moreover, players have also urged that locomotives be made available to them at two hours notice during return trips compared to the proposed level of four hours.

Fourteen players including the incumbent (Concor), Adani Logistics, Central Warehousing Corporation (CWC), Gateway Distriparks, Hind Terminals (MSC Group), Reliance Infrastructure, SICAL Logistics, J.M. Baxi Group and Pipavav Rail Corporation Ltd have received in-principle approval from the Railways to offer containerised services.