KOCHI: Two logistics facilities will come up at Angamaly and Karukutty railway stations under the Thiruvananthapuram division as the Southern Railway (SR) looks to scale up freight movement.
At a time when the Kochi airport is seeing an increase in cargo movement, especially in the Fast-Moving Consumer Goods (FMCG) category, the railway too wants to make the most of it.
A senior railway official said the facilities will be built and operated by private parties on the surplus railway land. “The available space is around 4,400 sq ft at Angamaly and around 3,000 sq ft at Karukutty. The private party will be provided with land use licence and will have to develop the infrastructure. The facilities can be used as warehouses, silos, cold chains, micro-fulfilment centres, cargo scanning and value-added services. The aim is to increase rail freight and integrate the railways into the national supply chain,” he said.
The official said the land earmarked for Gati Shakti Cargo Terminals (GCTs) is excluded and governed by the GCT policy.
“Land is leased through open, competitive bidding. Lease charges are payable annually in advance under the Railway Board’s land policy. The initial term is 25 years, counted from two years after site handover or from commissioning, whichever is earlier.
At the end of each term, the contract is re-tendered. The existing developer has a First Right of Refusal if they match the highest bid and have no dues,” said the official.
The facility is linked to one or more railway terminals within 100 km, chosen from a list the Zonal Railway publishes in the tender notice.
“Traffic counted toward the GRF (Guaranteed Railway Freight) is verified. The facility’s turnover growth is reviewed first after year five and then every three contractual years. If the compound annual growth rate (CAGR) exceeds 25%, the developer pays a lump sum equal to the excess percentage of the last three years’ GRF. For example, a CAGR of 28% means a payment of 3% of that GRF,” said the official.