Public Private Partnership in Container Train Operation Model Concession Agreement June 2007

Abstract

Maritime container traffic in India is growing at an annual rate of nearly 14 per cent in comparison to the global growth rate of 7 to 8 per cent. The twelve major ports handled about 5.4 million TEUS during 2006-2007. Of this, less than 2.1 million TEUS were carried by rail. With the rapid growth in container trade, there is an opportunity for Indian railways to increase its intermodal traffic base, generating additional revenues, besides promoting an efficient and environment friendly mode of transportation. The entry of competing private entities in container movement will help expand this business at lower costs and higher efficiencies. Projections of traffic growth suggest that Indian ports would handle about 15 million TEUS by 2014-15. Of this, nearly 4 million TEUS are expected to move on the rail network increasing the number of intermodal trains from 26 per day in 2005-06 to about 138 trains by 2014-15.