Indian Railways draws plans for scheduled EXIM container trains

The Indian Railways will allow select container train operators to run on a fixed schedule, in a significant shift that will allow timely delivery of containerised cargo. Officials aware of the plan said deliberations are underway with private container train operators for a scheduled export-import (EXIM) service from Tughlakabad Inland Container Depot (ICD) to the Adani Mundra port.

Meanwhile, a pilot service from Tughlakabad ICD to Kolkata via Agra and Kanpur by Container Corporation of India (CONCOR) will begin from October 1, a Rail Ministry statement said.
The scheduled EXIM container train movement plan is expected to attract private participation and deliberations have already been held between some interested players. These moves are aimed at ensuring reduction in transit time for goods and timebound delivery, as the country eyes improved logistics to bring ease for businesses especially the exports sector.


“Every day of delay at the ports increases cargo costs by about 0.5%," said Ajay Sahai, Director General and Chief Executive Officer (CEO) of the Federation of Indian Export Organisations (FIEO). He added that a scheduled container train service would not only help exporters plan their shipments with greater certainty but also provide assured and consistent business for Indian Railways.

Container freight train operators say their business is extremely vulnerable to delays during exports.

“A container train reaching late usually means the ship has already departed. The detention, demurrage, and wharfage charges start kicking-in,” representative from a freight train operator said adding the unpredictability increases risks.

Running scheduled container trains on the Indian Railway network has been a challenge due to the preference given to passenger movement and track congestion issues. Prospects of such services are expected to improve with the dedicated freight corridor being fully operational in the coming months.

"The scheduled container service by Indian Railways must be backed by an assurance of compensation for delays to encourage more operators to opt for it," Manish Puri, President, Association of Container Train Operators (ACTO) said, adding that this will bring accountability and reliability to the concept.

According to industry estimates, the share of freight movement on rail in containerised form has grown marginally from 4% to 5% between 2014 and 2024. Container freight earning of the Indian Railways is budgeted to rise 4% to Rs 10,170.4 crore in the current fiscal.

Trial Run

Indian Railways said the proposed Tughlakabad-Kolkata container train service shall run bi-weekly, adding that there will be a transit assurance of 120 hours besides complete waiver of empty haulage charges in the onward journey. Officials said this waiver is aimed at encouraging timely transit of goods even if all the containers are not filled up.

Kanpur and Agra will be treated as hub locations, allowing containers to be loaded or unloaded there as well. The Tughlakabad-Kolkata scheduled container train is primarily aimed at domestic cargo and will run as a pilot for a year after which it will be reviewed.