Going multi-modal

INTERVIEW: PUNEET AGARWAL

What started off as a family enterprise in the sixties has grown over the years and become a public limited company - Delhi Assam Roadways Corporation Ltd. (DARCL).

Today, it's among the largest logistics company in India with a turnover of around Rs 576 crores (2005-06). It now has ambitious plans and is all set to introduce Multi-modal Transportation. Growing at around 35 per cent (CAGR) over the last few years, the company is likely to touch the Rs 1000-crore mark in 2007-08, asserts Puneet Agarwal, Director, DARCL.

What's your outlook for the next two years?

DARCL has always focused on the transportation of Full Truck Load consignments and specialises in bulk movement of goods. We have a nationwide network of over 130 branches and long-term relationships of trust with truck suppliers and good financial backing. With, our focus on inter-modal transportation, share of Railways will become more significant with over 20-25 per cent of our loads expected to be carried out through Railways. Our newly-formed TRANSRAIL division which will be looking after the business of operating container trains is likely to add more revenues to the stream.

Do you have any specific offerings for the SME sector?

Our upcoming Container Rail Transportation Service shall be interesting to them to ensure reliable and safe/speedy transportation of their cargo to/from within our outside the country.

With the consistent rise in oil prices, there's bound to be a pressure on the freight rates. How does your company tackle the situation?

Since a majority of our customers are large government bodies and big corporates and we have term contracts with them, it is a standard industry practice to have a diesel escalation clause in the contract. However, due to increase in the cost of road transportation, the need for transportation by Rail has become much stronger due to its lower cost over long distances.

What can be done to improve the Road Transport sector?

The sector has multiple prospects, room for every hard working person though it remains largely unorganised barring 5-7 per cent of the transport industry. The Golden Quadrilateral Project and other steps by the government to encourage private participation and FDI are highly appreciable to develop the roads infrastructure in the country. Areas that require attention are having good training schools to train the drivers, more seriousness in enforcement of good driving habits, use of technology to reduce the stoppage time at Octroi/Toll Tax booths, better lighting and signaling for safe driving at night hours and quick and responsive systems to clear the roads in case of any vehicle breakdown/accident. Another area is the registration authority should have online information of genuine trucks with chassis and engine numbers. A database should be made available of errant truck owners/drivers so that the transport company can be cautious.

How important is IT for your company?

We have over 95 per cent of our branches connected online to our central server. We have our in-house integrated ERP. We provide our customers with a web interface where they can login to see the loading/delivery date/time of their consignments and also the en-route vehicle tracking information where they have requested for tracking facilities. Our system is integrated with both GPS as well as swipe card-based vehicle tracking service providers.

"The registration authority should have online information of genuine truckers with chasssis and engine numbers"

Puneet Agarwal
Director, Delhi Assam Roadways Corporation Ltd.