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Some way to go before the finish

by | Jan 15, 2019 | News

The Railway Ministry’s plans to allow private companies to run freight trains from their own private terminals may lead to faster evacuation of cargo, but the proposed move is faced with multiple challenges, said analysts.

“The move may be widely seen as ushering of fundamental reforms in the stodgy behemoth but past experience does not exactly paint a positive picture,” said Rohit Chaturvedi, managing partner Kitzo Management Advisory, a logistics strategy and operations consulting firm.

Poor past experience

“Even less ambitious initiatives like allowing Private Container Terminal Operators (CTOs), Multi Modal Logistics Parks or most recently Private Freight Terminals (PFTs) have not met with desired success,” said Mr. Chaturuvedi, formerly director of Crisil Risk & Infrastructure Advisory. “To be fair, PFT has shown a glimpse of railways’ readiness to take necessary steps in the right direction, but not sufficiently,” he added.

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