Rlys plan logistics parks along freight corridors

Also mull operation of pvt freight terminals.

The railway ministry is going to start negotiations with state governments this month for identifying locations for setting up of multi-modal logistics parks (MMLPs) along the Diamond Rail Corridors (dedicated freight corridors), an official at the railway ministry revealed.

Talks will be held with the governments of Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat, Maharashtra, Punjab,Bihar, Jharkhand and West Bengal to facilitate the establishment of these hubs.

“The Dedicated Freight Corridor Corporation of India Ltd has also been asked to decide on sites for setting up the proposed logistics parks,” he said.

These logistics parks, spanning an area of around 400-500 hectares, would be developed through participative funding on a public-private partnership basis. The MMLPs would house rail sidings with sheds, large inland container depots, warehouses for storage, office buildings for logistics operators and assembly units for processing raw materials for export.

Such state-of-the-art integrated logistic facilities with mechanised handling and intelligent inventory management at strategic locations, it is said, will reduce the overall logistics cost in the supply chain for customers by leveraging the high-capacity rail connectivity of the Diamond Rail Corridors.

Earnings from transport of goods make up two-thirds of Indian Railways’ revenue. Freight traffic has been particularly hit in the gloabl recession

To improve the proportion of freight on railways, the ministry is preparing plans to encourage private ownership of rolling stock for commodities. “To ensure optimal utilisation of available rakes for transporting goods, the ministry is considering permitting private parties to make use of surplus capacity,” the ministry official informed.

A new policy is also being formulated to allow construction and operation of private freight terminals. Organisations which purchase land in proximity to rail stations and decide to avail of railway services at their expense would be eligible for operating such terminals, the official said. The details of the proposal are being finalised.