Pvt players set up CFSs in Ludhiana to facilitate cargo

The cargo generated from the Ludhiana region has grown 40-fold over the last two decades, especially after the Inland Container Depot (ICD) was developed in 1989 by CONCOR. Visualising this potential, private players commenced operations from this industrial city to handle cargo movements.

Today there are six Cargo Freight Stations (CFSs) operational, four of which are private, and CONCOR as well as 4 private rail operators are providing services. These include, Punjab State Warehousing Corporation (PSWC), Overseas Warehousing (P) Ltd, Krishna Cargo Movers, Gurudev Impex (P) Ltd and Gateway Rail Freight Ltd.

Last year Gateway Rail Freight Ltd, a subsidiary of Gateway Distriparks Ltd has also opened Punjab’s first private rail-linked Logistics Park which includes ICD at Sahehwal in Ludhiana. Hind Terminals Pvt Ltd, DP World Ltd and India Infrastructure (P) Ltd. also started services on this route

Experts feel the recent commencement of operations by private operators has proved as a boon for the exporters. As the services have improved substantially, exporters manage to get better freight rates and can send their shipment in time.

Worth noting that Ludhiana is one of the largest hubs where container cargo for India’s overseas trade originates. After ICD New Delhi, Ludhiana happens to be the biggest ICD in the country. As of today the total volume of import/export cargo being handled by various ICDs in Ludhiana is about 13,500 TEUS (twenty foot equivalent unit) per month.

According to the local industrialists, Punjab has a huge unmet demand for rail-based container transportation on both domestic and international routes. Earlier, in absence of the facilities, they were supplemented by Delhi-based container terminals, resulting into higher overall transaction cost.

Ludhiana, Dhandari, Mandi, Phagwara, Jalandhar, Barnala and Amritsar are the major markets in Punjab and Ludhiana is the ideal hub for providing inter-model service to all these locations. Engineering Export Promotion Council, Regional Chairman, S C Ralhan said, “Besides some problems, the commencement of the services by the private operators has improved the services. Earlier it was dominated by CONCOR, with the entry of private players in this field the competition grew and exporters are able to get best freight rates.”

Exporters believe that extension of the eastern freight corridor to Ludhiana will further give fillip to trade and industry. It is worth noting that Ludhiana accounts for an estimated 200,000 containers a year as hosiery, food grain traders, yarn, auto components, and machinery and cycle parts makers ship products in steel containers to global destinations. Ludhiana also imports metal scrap in large quantities.