The first private sector cargo terminal was opened in Rewari

The Dedicated Freight Corridor Corporation of India Limited (DFCC) started operations at the Rewari Gati Shakti Cargo Terminal (GCT) today. The GCT is based on the Public Private Partnership (PPP) model, fully invested by private stakeholders and has no revenue sharing from Indian Railways.

The Rs 8 crore GCT at Haryana was built exclusively for container traffic along Line 10 of the Western Dedicated Freight Corridor (DFC) to New Rewari Station. It is operated by the Pristine Mega Logistics Park. It was won by Pristine in a race with state-owned Container Corporation of India (Concor) and shipping giant DP World, officials said.

“This is a radical change from Indian Railways’ current mode of operation, in which the Railways shared a portion of the terminal access fee with the GCD operator,” the railway company said. This step has ensured that the terminal can be developed without investment from the railways or the DFCCC.

The terminal was put into operation within 75 days of the order being placed.

Senior officials present at the inauguration said the private sector interest is significant considering all three companies involved in the bid have bid for zero revenue share.

Normally a certain part of the Terminal Access Charge (TAC) is shared by the railway with the operator. In Andhra Pradesh, for example, GCT was allocated to Grasim Industries in January, with Railways receiving 15 percent of the TAC.

A senior DFCC official said: “The bidding war, which involved zero revenue share in this tender, led to a re-examination within the Railway Board. This terminal will be a torchbearer for the formulation of new policies.

According to a senior Pristine official, the terminal offers the Ludhian-based cargo aggregator a unique revenue-generating opportunity.

A top executive at the company said: “There are cities that send single-stack containers to Ludhiana for double-stacking, and often the entire supply chain is delayed. This terminal allows us to shorten the waiting time. As a result, the transport costs will also increase. For this reason, we did not claim Terminal Access Charge (TAC) during the tender. We are convinced of the profitability of GCT.

Related Articles

Back to top button

Subscribe To Our Newsletter

Don't miss new updates on your email