STOCK MARKET BSE NSE

Railways Pulls Chain on 'Snail-driven' Freight Train

Published: 16th May 2015 06:02 AM  |   Last Updated: 16th May 2015 09:16 AM   |  A+A-

KOCHI: The Railways has grounded the operations of its first private cargo special train — the Parcel Cargo Express — flagged off from Chalakkudy in October last year, after transporting companies backed out citing huge losses caused by poor logistics.

The cargo train bound to Moga in Ludhiyana from Chalakkudy, carrying rubber, spices and coir products from the state, had a run-time of four days and was marketed as cheaper-than-road alternative, but took 8 to 11 days to reach the destination. A road trip would have taken 7 days, sources said.

Transporting companies that entered into a contract with the Central Rail-side Ware Housing Corporation (CRWC) allege that the service was torpedoed by some senior Railway officials  for the benefit of truck transporters.

Two companies, Delhi-based AVG Logistics and Beta Global Logistics, which partnered with CRWC stopped supplying consignments to the train in February.

Speaking to Express, Thomas Varghese, Marketing Manager, Delhi-based AVG Logistics, said the train used to be detained at various stations citing technical reasons. The company claims that it incurred a loss of Rs 3.5 crore due to consignment delays.

Sources in the Railways said truckers from North India had sustained severe losses after the train was launched. The trucks which arrive here used to return with consignments, but their business suffered with the introduction of new service. The train was delayed by senior officials, allegedly, after the truck lobby exerted pressure. The Railways has now initiated steps to forfeit Rs 1.23 crore deposited by the CRWC. Speaking to Express, senior officials attached to the CRWC in Kerala, said they incurred a loss of Rs 4 crore. Officials of the Commercial Division, Railway, denied the allegations and said the real issue was the conflict between the CWRC and logistic companies. Rajesh Chandran, Area Manager, Ernakulam, told Express  that the Chennai Division is exploring the feasibility of starting the services from Kalamassery in Ernakulam. “We have informed our readiness to start the service from here,” he said.

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp