Privatization of Container Train business in India

Economic growth and trade expansion in recent years have enhanced the relevance of railways as a critical element in the globalisation of the Indian economy. In particular, this sector has witnessed significant interest from both domestic as well as foreign investors following the policy initiatives taken by the Government of India to promote public private partnerships in infrastructure.

In India, railways are government owned and operate under the Ministry of Railways (MoR). It is a vertically integrated organization controlling its own facilities, performing all operating and administrative functions and unilaterally determining what services to provide. The top management of IR also functions as the secretaries of the MoR, thereby bundling the roles of licensor, infrastructure service provider, operator, and regulator.

With a view to attracting a greater share of container traffic and introducing competition in rail freight services, in January 2006 the Ministry of Railways allowed the entry of private and public sector operators to obtain licenses for running container trains on the Indian Railways (IR) network. The scheme was opened to all Indian companies, including subsidiaries of foreign companies registered in India, having a minimum annual turnover of Rs 1 billion. The validity for permission was for 20 years, further extendable to another 10 years, on the same terms and conditions under a Model Concession Agreement (MCA).The period of concession would start from the date of signing of the agreement.

This initiative was the first significant move of its kind where private parties were allowed to make entry in the domain of railway operations with direct customer interfacing. The response to the policy was good and 15 new entrants obtained licenses to run container trains and one more player Arshiya international joined later in 2008.

The MCA provides for non-discriminatory scheduling of trains as among different operators, public and private. All container trains will be scheduled on a first-come-first-served basis, thus providing a level playing field to all operators including the incumbent public sector operator. There is no restriction on the frequency and number of trains that a Concessionaire can offer to the Railway Administration for haulage.

The entire network of IR was classified and grouped into four categories based on existing and anticipated traffic volumes of ports. A onetime registration fee of Rs 50 crores (for category I license) or Rs 10 crores (for category II, III, and IV license) was payable to MoR.

Category I covers JNP/Mumbai Port - National Capital Region (NCR) rail corridor and beyond. This category also includes all domestic traffic.

Category II covers Rail corridors serving JNP/Mumbai Port and its hinterland in other than NCR and beyond. This category will also include all domestic traffic except on category I routes.

Category III covers Rail corridors serving the ports of Pipavav, Mundra, Chennai/Ennore, Vizag and Kochi and their hinterland. This category will also include all domestic traffic except on category I routes.

Category IV covers Rail corridors serving other ports like Kandla, New Mangalore, Tuticorin, Haldia /Kolkata, Paradip and Mormugao and their hinterland and all domestic traffic routes. This category will also include all domestic traffic except on category I routes.

According to the agreement locomotives would be provided by the Railway Administration to haul trains on a non-discriminatory basis on payment of notified charges. For delay in supply of locomotives beyond twelve hours, the Authority would provide a rebate equal to 2% of the haulage charges payable by the Concessionaire.

Haulage charges for movement of containers on the railway network informally would be prescribed by the Railway Administration from time to time, and would be applicable to all operators on a nondiscriminatory basis.

The Railway Administration would haul Concessionaire trains carrying notified commodities at the tariff specified for such commodities. Operators had to pay haulage charges to IR for using its infrastructure. IR reserved the right to determine haulage charges. Trains would be dispatched on a nondiscriminatory ‘first come first served’ basis.

The MCA was signed with operators on 4th January 2007. Thus, of the 16 operators, 12 got the category I license, two operators got category III and other two operators got category IV. None had sought the category II license. Most of the companies created subsidiaries to undertake container operations. The 16 CTOs and their respective category licenses are as follows:

• Adani Logistics Ltd (Adani Group)- Category I
• CONCOR (IR Public Sector Undertaking)-Category I
• Container Rail Road Services (DP World)-Category I
• CWC (CWC Public Sector Undertaking)-Category I
• Freighstar (ETA Group)-Category I
• Gateway Rail Freight ltd (Gateway Distriparks)-Category I
• Hind Terminals (Sharaf Group (UAE) and MSC Agency)-Category I
• India Infrastructure and Logistics (APL India)           -Category I
• Reliance Infrastructure (Reliance (ADAG))-Category I
• SICAL Logistics-Category I
• Boxtrans (India) Logistics Services (JM Baxi & Co)-Category III
• Pipava Railway Corporation Ltd (PRCL)-Category III
• TransRail Logistics Ltd (Delhi Assam Roadways)-Category IV
• Innovative B2B Logistics Solutions (Bagadiya Shipping & Bothra Brothers (P) Ltd)         -Category IV
• KRIBHCO Infrastructure Ltd (KRIBHCO (Public Sector Undertaking))-Category I
• Arshiya Rail Infrastructure (Arshiya International)-Category I

Gateway Rail Freight Pvt Ltd was the first private operator to run a container train. They flagged off their first train on 3rd May, 2006, using a CONCOR rake. The first privately owned container train by a private operator was flagged off by Innovative B2B Logistics Solutions on 30th October, 2006.

Transformation of Cinema

Indian cinema has gained huge recognition worldwide in last 2 decades or so. The standards of film making, budgets, technology all have taken a huge leap. An industry which produces highest number of movies per year compared to any other industry worldwide; has also gained a considerable amount of followers overseas which has added to its glory. Surely this transformation has come because of the unconventional approach adopted by industry. Multiplex has given a flavor to cinema and helped in targeting a different segment. Technology advancements such as High definition, 3D effects, digital sound etc. has made the experience world class.

Another sea change has been observed in the approach of Hindi film making that focuses on connect with all segments. Be it merger of art and commercial cinema through “multiplex cinema” or picking up real plots for filmmaking such as “no one killed Jessica” or by adopting bestselling books like “5 point someone”;all have offered a different flavor to audience.

The collaboration with global studios and their significant involvement has also helped in raising the bar of film making. Big budgets, overseas set up and background, involvement of overseas technicians and workforce has become a common trend. A recent trend of risk taking film making is also observed to create something out of the league. Similar is the case with screenplay, cinematography and other key departments.

Recent movies such as Robot & RA One both are classic example of changing flavor and technology involvement, the mega success of “3 Idiots” clarifies the way for adoption in cinema. On one hand there is freshness in masala films such as “Dabangg & Singham” and on other hand there are youth centric films like Rock star, Rock on & Rang de basanti. Another classic example of change in Hindi cinema’s approach is “DON” series, where unlike the traditional Hindi film; the central character is purely negative, greedy & mean. Appearance of international celebrities in Indian movies & vise verse is common now days.

This trend existed in Indian cinema from beginning but remained noticeable in few works. The era of art cinema surely gave the impactful weight to content & quality but it was not always able to lure masses. With new generation coming up with different perspective and ideas I hope the cinema lovers will be served with many exciting flavors in the coming time

All over the place

There are things in life which often come to us very late but when they come; an unknown happiness comes along which cannot be expressed in words. I was always so called busy all these years to take a vacation; a real holiday but this time around there was a strong commitment.

The restless waves of ocean are hypnotizing and take away the restlessness of mind & soul.

My short but delightful visit to Konkan in Maharashra is more than what I can express in words. So I think these pics will do the needful.

The other track of Indian Grand Prix

It is surely a great historic day today when this country hosted a world class event i.e. Indian Grand prix at Greater Noida. Built with Rupees 10 billion cost, this is a world class facility which brings glory and prestige for India at global stage. After the mockery in organizing Commonwealth Games 2010, successful hosting of F1 proves that India is also capable enough of hosting any world class event with same global standards and facilities.

No doubt it’s a great achievement but when I look at other side of scene, it all becomes unexciting. On one hand the media & farmers are howling over land acquisition in Noida Extension and on other hand acres of agricultural land is been acquired for F1 event; against several protests. It’s in the same country where government reduces subsidy on diesel for agricultural use and cites international price hike as the reason and on other hand thousands of liter fuel became smoke in just one event.

The country where official sources claim Rs 32 is what more than half of population can’t spend per day, and in same country millions and billions have been spent by elite citizens of the country just to see cars zooming at 300 km per hour. Just few days back an official report mentioned Uttar Pradesh as state which tops criminal activities and today more than 30,000 force was deployed for F1 event, ignoring their actual objectives.

It’s the same country where a low cost airline operator recently shuts down operation because of the increasing air fuel prices and cut throat competition in low cost airline segment (which caters to the middle class population specifically) and same person spends billions in promoting events such as IPL & F1.

It is not that the views are against organizing F1 in country but we need to maintain balance and indulge in activities which have higher productive outputs. Things need to be prioritize and balanced and even from sports point of view we need to make sure that it should not become a sport which caters to only higher class of society and kills the other sports.

India- In search of Independence

65 years of independence and the search is still on. Yes, this country is still searching for the true independence which was dreamt off; independence from corruption, independence from poverty and independence from many more social evils.

Today in the midst of “second battle of freedom” which is going on in political arena, I as a common youth sometimes find myself in doubt. All I see around me is scams, corruption and oppression. From BOFORCE to CHARA, BLACK MONEY to CWG and then AADARSH to 2G. Every year, every month; a new scam, bigger than the previous one comes to dent this freedom.

Now when a 74 year old man raised his voice against the corruption, everyone started talking about fight against corruption. But question arises are we really ready to fight? Do we have the willingness to eradicate this bug? Are we ready to stop skipping traffic signals, are we ready to say no ‘donation seats’, are we ready to oppose for any demand for bribe?

There are hundreds of question like this that deals with our day to day life corruption, which we our self impose on us. If the answer to all these questions is ‘No’, then this fight is senseless. Only supporting Anna will not help, there is need to help ourselves. Jan Lokpal is only an instrument in this fight against corruption; the real weapon is our will and efforts. I know it’s easier saying than doing but at least we can make an effort by not initiating corruption from our end.