Even as several firms raised concerns on the rail container operations sector getting crowded given the Indian Railways' line capacity constraints, the Railways has begun wooing companies to take the container operating licences.

The Indian Railways has organised an interactive session to address concerns of companies that are eyeing the rail container operations segment.

Companies, with the requisite networth, can acquire licences to operate containerised trains on rail tracks. Depending on the routes where they want to run containers, they need to pay Rs 10 crore or Rs 50 crore as registration fees to the Railways initially to get the licence. Having acquired the licence, the companies are required to invest in building container depots and acquire rolling stock to run container trains.

While about 35-odd firms have evinced interest in the sector, they are yet to put in the registration amount. The last date for applying for registration to the Indian Railways is January 31.

Pointing out that the sector could get highly competitive, an official from one of the firms eyeing the segment said, "Ten operators already have the licence to operate container trains on the Delhi-Mumbai rail route, which is the most attractive container operations segment at present. Given the rail capacity constraint and given that the Indian Railways is not giving any transit time guarantee for moving the operators' rakes, wouldn't the time taken by any operator to use the rail link be affected?"

Line capacity

The Railways, however, said that it is taking steps to increase the line capacity. Moreover, it would provide transit time guarantee once the freight corridor is in place.

"The Delhi-Ringus route is likely to be ready by one-two months. By December 2007, Rewari-Ringus-Phulera route is expected to be ready." This would increase the line capacity between ports in the Western coast and the northern hinterland.

Kribhco, which spends about Rs 200-300 crore per annum on moving fertilisers and is eyeing this segment, wanted to know if it would be allowed to run a rake, which has a mix of container wagons and other wagons. The Railway officials addressing the meeting said this may not be possible.

An official from Shipping Corporation of India had queries on the likely costs of flat wagons, time taken between order placement and delivery of wagons.

Some smaller firms desired that the networth requirements be relaxed, while several firms had queries on the commodities that Railways would not allow to be moved in containers.