We’ll Soon See Private Freight Trains In India

The Indian Railways has hinted that private companies may soon be allowed to run freight trains from their private terminal.

According to an Economic Times report, under the Freight Train Operations Scheme, companies can lease rakes from the Indian Railways or have rakes manufactured as per their specifications and run them entirely as per their convenience on the existing rail network from their private freight terminals.

Companies will have to pay track and other usage charges to the Indian Railways. However, the train operations will be managed by railways.

"As we'll soon set up the rail development authority, which will recommend fares, there will be a transparent mechanism to set usage charges for these operators. This will also break the monopolistic view that railways had on freight operations," the official was quoted.

Indian Railways is slowly moving to bring in more private investment in the areas which are of high traction for private companies. The logistics, grains, cement, steel, auto, chemicals and fertilisers sectors will be immensely benefited from the scheme. Private terminals, will add almost 20-25 million tonnes of additional loading capacity.

Also Read:

Decoding Ro-Ro, The Rolling Highway System