CHENNAI: A string of non-railway operational activities, such as parking and food stalls, at the Chennai Central is set to be privatised, under ministry’s proposed station re-development plan.
Chennai Central, the busiest rail terminus in the city, figures in the list of 23 stations in the country to be re-developed in the first phase. Railways hope to provide world class facilities to passengers, besides monetising the large land space available at stations.
Railways will use the Swiss challenge mode to identify the private party who will undertake the project, presently estimated to cost `350 crore.
A senior official told Express that re-development plans are progressing fast. Ernst and Young, a multinational firm, has been appointed as the consultant. The last date for bid submission has been extended till June 30.
Under the plan, senior railway officials said the chosen bidder will be responsible for upgrading the station. “Except activities like ticketing, signal & telecommunication and train operations, the rest will be taken over by the private concern,” the official said.
For that purpose, a station facility manager will be appointed to oversee the re-development process. “All existing non-operational contracts entered by railways will be transferred to the private party, who may bring in their own staff,” he said.
The redeveloped station is expected to improve passenger experience by providing amenities like digital signage, escalators, self-ticketing counters and lounges. When asked whether passengers would have to pay user development fee, just as the charge levied in airports by private developers, the official replied in the negative.
“However, passengers are required to pay for availing themselves of services such as using the lounge,” he said.
Southern Railway has already formed two committees - technical and financial- which will evaluate the proposals. In addition, an independent committee, comprising real estate and finance experts will be in place to scrutinise the proposals. “By March 2018, we hope to identify the private developer, who will then complete the re-development work in 18 months,” the official said.
What is a Swiss challenge?
A private player who submits a proposal for the project is shortlisted. The proposal is then made public for suggestions and improvements. The improved proposal may be accepted, but not before the first right of refusal is given to the original bidder.
What do the bidders get?
The revamped station has been envisioned as centre for retail development and office spaces besides hospitality sector. Three separate areas have been identified, to be leased out to the selected bidder.
Station area (including platforms, parking area) to be leased out for 15 years.
Vacant land in and around the station (for their commercial exploitation)- to be leased out for 45 years.
The airspace above the station area - to be leased out for 45 years.