Saturday, April 11, 2015

Infrastructure: Energy, Ports, Roads, Airports, Railways etc. —> Private freight terminal (PFT); Agri Rail

In 2012, railways allowed to construct private freight terminal. Does it means that, private companies can buy the railway land for the freight terminal construction? Whether they can able to load/offload all goods except coal, coke and iron ore?
 
The concept of private freight terminal is to allow private sector to build and manage terminal, while railways gives connectivity. Mostly they are getting made on private land only. It can be done on railway land on lease basis. But the essence is railway land for creating freight terminals are not so much there, hence private freight terminal.
They are allowed to handle all goods - coal of "d" priority ie non programmed coal, iron ore with special permission etc. 

Sir, so those terminals will be exclusively offloading the goods earmarked for that private developer who is maintaining that terminal?
No, such exclusive terminals called 'sidings' are already existing. In PFT any one can 'book' consignment and load/unload.  The consignee/consignor pays a charge to the private terminal owner. So far, such activity is possible only in railway owned good sheds. Now it is extended to private players. Indeed some existing 'sidings' started converting into PFT.
 
So what's the incentive for a private developer to invest in a PFT?
He can collect his own 'charges' from the consignee/consignor over and above the rail freight. He can offer services like warehousing, even logistics. Since infrastructure projects like these have a longer pay back time, the PFT concept has not been taken by the private sector in a big way.
 



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