PPP to be part & parcel of railways

NEW DELHI: The railways are trying to expand the list of public-private partnership (PPP) models. It plans to soon invite bids from private parcel and cargo movers for running trains between Delhi, Mumbai, Chennai, Bangalore and Howrah. The players can also suggest convenient routes for running cargo express trains, originating and terminating on routes covered by the South Central Railway.

According to senior Rail Bhawan officials, the move would boost parcel revenue in a big way. The railways would fix the minimum base price per tonne of cargo. According to sources, big-ticket corporates such as First Flight, FedEx and Gati can all participate in the PPP model with the railways. “We have invited expressions of interest from private cargo operators.

The present parcel policy is causing a loss in business,” a Rail Bhawan official said. Over the last two years, the railways have reduced losses. “We have registered a growth of more than 30% in parcel earnings through better capacity utilisation. To achieve our objective, the leasing policy of brake and parcel vans has been liberalised. To improve capacity utilisation, open tenders will be invited with the reserve price initially set at the scheduled parcel rates,” the official said.

“Generally, ordinary passenger trains have brake vans at both ends, each with four-tonne capacity. Most of the brake vans are running vacant due to lack of demand. However, it was decided that the luggage portion of all such brake vans of ordinary passenger trains would be converted to second-class compartments. Over a two-year period, this would result in savings of 300 coaches and reduce parcel losses,” he added.

Parcels are loaded and unloaded at all stations where the halt is five minutes or more, and the lease holders can themselves prepare the loading manifest. To eliminate the incidence of theft in luggage vans, all brake vans carrying parcels and luggage will be strengthened with steel walls. The 150-kg ceiling for booking luggage in the brake van has also been removed.