Truckers see opportunities in freight scheme

Railways will have to rope in private players to implement these schemes, they say.

Truckers, which carry over 60 per cent of the total freight, see some impact on their long-distance business from some of the new schemes announced in the Railway Budget, yet they see opportunity in them. Railways carry over 30 per cent of the total freight.

Though Railway Minister Mamata Banerjee has not increased freight rates, she has announced schemes like providing door-to-door parcel services to attract freight from roads. Industry sources see an increase in business opportunities from such initiatives.

“It will not be possible for railways to implement these schemes on their own and they will have to rope in private players. We see an opportunity coming to us,” said K Prabhakar, Director, Transport Corporation of India.

Some believe that their long-distance businesses may be impacted on the grounds that door-to-door services by railways on the long-distance route will be preferred over roads.

“The door-to-door service might impact our long-distance business to an extent but not much. But there is more opportunities for us as to provide this service, railways will need us to complement them and we will gain,” said B Channa Reddy, president, All India Confederation of Vehicle Owners’ Association.

Analysts see huge revenues coming to railways from the parcel business, but also have doubts over the implementation of the door-to-door service by the railways.

“This is the first time railways are venturing into parcel business and, if implemented in a proper manner, this will fetch Rs 1,000 crore for the railways,” said Manish Saigal, executive director at KPMG, a financial advisory firm.

“The door-to-door service is a brilliant idea but railways will find it difficult. Providing last-mile connectivity to the goods will be difficult for the railways,” Saigal added.

The railways are also eyeing non-bulk goods like transporting automobiles. The minister has announced to set up automobile and ancillary hubs at 10 locations and examine ‘the need for special wagons for iron ore, fly ash, automobiles etc’.

The railways will also introduce a ‘modified wagon investment scheme for high capacity general purpose and special purpose wagons’.