Monday, June 7, 2010

Indian Rail Freight Encourages Private Investment

New Draft Terminal and Rail Truck Schemes Published
Shipping News Feature

INDIA – The Traffic Commercial Directorate of state run Indian Railways announced their plans last week to allow more commercialisation of the industry. A draft framework of the schemes to increase rail freight traffic and improve track infrastructure with the development of privately funded tracks, independent rail trucks and inter modal terminals has now been published.

There are two distinct documents the first of which is specifically targeted at those who wish to invest in private goods handling facilities and the second to encourage the transport of ‘non conventional’ traffic by offering rebates to private carriers for certain cargoes and reducing the amount of cargo carried by road trucks.

Both schemes are open only to Indian registered companies and developers of the multimodal private freight terminals (PFT’s) will be expected to share profits with Indian Railways after two years for brown field developed sites and five years in the case of green field projects.

Full lists of criteria, proscribed cargo etc. can be seen HERE.