With export-import sliding on the back of the global economic slowdown, India’s container rail trade is now feeling the heat. The impact, in form of lower volumes, was already felt in the September quarter. And more pain is expected in the second half of this fiscal.
In the April-September 2008 quarter, container traffic growth was at 10.2% against the annual average growth rate of 14.4% between 1994 and 2008. Experts feel this growth rate will fall almost 5% year-on-year. However, negative growth is not expected.
As export-import (exim) business slows, rail container operators are now focussing on domestic movements to avoid losses. Sachin Bhanushali, president, Gateway Rail, which has 25% of its rakes on exim routes, said the company has seen a drop of 10% in exim volumes. “We have deployed the capacity released from exim business on our domestic routes so the rakes don’t lie idle.” Gateway Rail, a subsidiary of Gateway Distriparks Ltd, runs 12 trains and is in the process of inducting another six.
Traditionally, domestic container movement has been via roads. Though expensive, roads offer the last-mile connectivity, which the rail route can’t. Rail operators too were focussing on the exim segment.
However, rail transportation is expected to gain traction in the domestic market, with 15 private operators and the country’s largest container rail operator, the Container Corporation of India (Concor) increasing their services.
Source: Daily News & Analysis