Container train operators (CTOs) – who have not built terminals and operate in the domestic segment - can breathe easy. As per media sources, the Railway Ministry have decided to hold in abeyance its earlier proposal to increase terminal access charges for CTOs.
The companies that focus on domestic segment include Arshiya Rail, Boxtrans, Innovative B2B, and Kribhco Rail Infrastructure Ltd. On April 27, the Railway Ministry had proposed to increase the terminal access charges by 36% which it has decided to hold for now.
View: As a part of the concession agreement with the Indian Railways, all CTOs were required to set up rail-linked terminals. But the entrants have not invested as much in setting up terminals, which requires close to 12 times the capital investment in a rake. There are six terminals built by the newer container train operators while Concor has a network of over 60 terminals.
This move - of the proposed hike in terminal access charges being held in abeyance – will propel the container train operators to set up more terminals. It will also help improve their financial health by reducing their cost of operations.
....more info
The companies that focus on domestic segment include Arshiya Rail, Boxtrans, Innovative B2B, and Kribhco Rail Infrastructure Ltd. On April 27, the Railway Ministry had proposed to increase the terminal access charges by 36% which it has decided to hold for now.
View: As a part of the concession agreement with the Indian Railways, all CTOs were required to set up rail-linked terminals. But the entrants have not invested as much in setting up terminals, which requires close to 12 times the capital investment in a rake. There are six terminals built by the newer container train operators while Concor has a network of over 60 terminals.
This move - of the proposed hike in terminal access charges being held in abeyance – will propel the container train operators to set up more terminals. It will also help improve their financial health by reducing their cost of operations.
....more info