Railways eye lucrative automobile transportation sector

In a bid to break into lucrative automobile transportation sector,
Railways has invited tenders from private players to deliver cars, mini-trucks
and tractors to showrooms countrywide.

It has formulated the
'Automobile Freight Train Operator' policy which will facilitate bulk movement
of automobile traffic by rail from production hubs to consumption
centres.

"The policy would seek to increase the low rail share of
automobile traffic from present level 3 to 4 per cent to about 30 per cent in
the next five years," said a senior Railway Ministry official, adding, the
policy has come into effect from July 19.

Automobile sector is one of
the fastest growing sectors with the production expected to double by 2016.
Therefore the scheme will provide an unique opportunity to the logistic
providers and road transporters to tie-up with end-users and avail the train
service, the official said.

Supporting the venture, Railways had
announced a policy on development of automobile and ancillary hubs at strategic
locations across the country for storage and secondary distribution by
roads.

Shalimar near Howrah was the first of 10 such hubs inaugurated
by Railway Minister Mamata Banerjee last year. While the policy offers scope for
private investment in wagons, Railways on its part has also developed customised
wagons suitable to transport automobiles.

The official said
logistics-related companies and wagons leasing companies with a minimum of one
year experience and with a net worth of Rs 20 to Rs 30 crore can apply as
operators in the venture.

The policy will be reviewed after one year.
The policy formulation comes in the wake of the Railway minister's announcement
in last Budget seeking a new business model and inviting private investment for
starting new services and development of infrastructure.Courtesy: http://economictimes.indiatimes.com/news/news-by-industry/transportation/railways/Railways-eye-lucrative-automobile-transportation-sector/articleshow/6293003.cms