Date:16/02/2006 URL: http://www.thehindubusinessline.com/2006/02/16/stories/2006021602750100.htm

Back 14 cos bid for container services — Reliance Infrastructure, Adani, CWC, P&O among contenders

Our Bureau

New Delhi , Feb. 15

WITH industry heavyweights such as Reliance Infrastructure, Central Warehousing Corporation (CWC), Adani Logistics and some prominent multinationals taking the plunge, the rail container operations space is hotting up in the country. So far, only Concor was allowed to operate in the sector.

Fourteen companies have put in their applications with the Indian Railways to offer services with registration fee totalling Rs 540 crore. Ten companies have applied in the Rs 50-crore category; whereas four have applied in the Rs 10-crore category, said a senior Ministry official.

Companies in the Rs 50-crore category include Adani Logistics, Central Warehousing Corporation (CWC), Container Corporation of India (Concor), Dinesh/ETA (Emirates Trading Agency), Gateway Distriparks Ltd, Hind Terminals (MSC Group), India Infrastructure Leasing (a joint venture of Mr Rajeev Chandrashekhar's Hindustan Infrastructure and APL, a subsidiary of Singapore-based NOL), MICT (P&O Ports), Reliance Infrastructure Leasing (a firm of Mr Mukesh Ambani) and SICAL Logistics.

Players in the Rs 10-crore category include Delhi Assam Roadways Corporation Ltd, Bothra Shipping, JM Baxi and Co, and Pipavav Rail Corporation Ltd (PRCL).

A fee of Rs 50 crore would allow the operators to offer containerised services across the country for both export-import (exim) and domestic traffic. A Rs 10-crore fee would allow the operators to move domestic containerised traffic across the country but exim containerised traffic can be moved from specified ports only. Today was the last date for submission of applications.

Railway Ministry officials said that the sector is likely to see investments to the tune of Rs 10,000 crore in rolling stock, inland container depot (ICD) and container freight stations (CFS) over the next two years.

This would help Railways earn Rs 5,000-10,000 crore additional earnings and result in a minimum of additional 100 million tonnes piecemeal and non-bulk traffic every year, they said.

Amongst the above players, PRCL has already been given an in-principle approval by Railways. On when the players would be given an approval, officials said a decision would be taken by March 31 this year. "We would give approval to all players... even if there are shortcomings, we would like to give time to players to overcome them," the official said.

The Railways might provide land to these companies for building ICDs and multi-modal logistics park.

On whether the Railways has enough line capacity to accommodate all these players, officials said that Railways is putting in massive investment in increasing line capacity over the next 18 months.

With so many players applying, industry experts expect "intense competition".