Muristek
Alarm bells for private goods carriers as long-route cargo shifts to Railways
Amritsar, April 8
Alarm bells have started ringing for private goods carriers as long-route freight is gradually shifting to train cargo services.
Private goods transporters are losing business while the railways is earning business and profits. And it is visible as per the data released this fiscal. Ferozepur Division of Northern Railway ferried a record 15.44 million tonnes of cargo during the financial year ending on March 31, which is about 19 per cent more than the previous fiscal.
City-based private goods carrier operator Anantdeep Singh, who is spokesperson for the All India Motor Transport Congress (AIMTC), stated that private goods transporters were losing their bulk long-destination freight business to the Railways. "The rising prices of diesel and spare parts, imposition of toll taxes on highways, weight restrictions, corruption, high taxes and other overhead costs are some of the reasons behind the dent in their business."
Makhan Singh, a goods transporter, said the Railways offered low-cost tariff on long-haul freight, besides several factors were working to its advantage. For instance, a goods train's carriage accommodated around 60 tonnes of cargo, which is equal to a capacity of six trucks. Six trucks on long-haul freight require massive overhauling and services, thereby, increasing the input costs of goods transport operators.
Manjeet Singh, a goods transport operator, said, the long-destination bulk trade was annually shifting to the tune of over 7 per cent. He said the state government must offer incentives on taxes and soft loans for procuring new vehicles as those into the business of goods carriers provided employment to local residents.
Dr Seema Sharma, Divisional Railway Manager, Ferozepur Division, said the division ferried a record 6,205 rakes, including 475 from the border district, carrying items like packaged food items, basmati rice, paper, potato, tractor, gypsum, etc, which is about 20 per cent more than the previous financial year.
The division received a revenue of about Rs 2,829 crore from freight this financial year, which is about 18 per cent more than the previous financial year.