Lok Sabha Question No. 100 (STARRED), answered on 2016-03-02
Subject: Private Freight Terminals
Ministry: RAILWAYS
Asked by: KAPIL MORESHWAR PATIL

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA STARRED QUESTION NO. 100 TO BE ANSWERED ON 02.03.2016

## PRIVATE FREIGHT TERMINALS

##  * 100.  SHRI KAPIL MORESHWAR PATIL:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  the  Railways  proposes  to  build  private  freight  terminals under the public private  partnership  model and provide  licence  to private sector for running trains for transportation of some special items and if so, the details thereof;
- (b) the  details  of  the  companies  which  have  shown  interest  in  this regard and the terms and conditions laid down for providing the said licences; and
- (c) the  revenue  likely  to  be  generated  by  the  Railways  annually therefrom?

## ANSWER

## MINISTER OF RAILWAYS

(SHRI SURESH PRABHAKAR PRABHU)

- (a) to (c): A Statement is laid on the Table of the House.

***

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF STARRED QUESTION NO. 100 BY SHRI KAPIL MORESHWAR  PATIL  TO  BE ANSWERED  IN LOK SABHA ON 02.03.2016 REGARDING PRIVATE FREIGHT TERMINALS

(a)  to  (c):  With  a  view  to  develop  private  freight  terminals  under  the public private partnership model and to provide licence to private sector for  running  trains  for  transportation  of  some  special    commodities,  the following policies have been issued by Ministry of Railways -

- I. Private  Freight  Terminal  (PFT):    To  facilitate  development  of  a network  of  freight  terminals  with  private  investments  to  provide efficient  and  cost  effective  logistics  services  with  warehousing solutions and users, a scheme was launched during the year 2010, which was further modified in 2012 and 2015. As per the policy, PFTs are to be developed in private land by private investment.
2. (i) The  eligibility  criteria  for  setting  up  a  Private  Freight  Terminal (PFT) are as under :
3. 
4. A registered company in India as per Companies Act 1956
5.  A  public  sector  entity  (PSUs  or  organizations  created  under an act of Parliament), or
6.  An  entity  registered  as  a  Cooperative  Society  under  the Cooperative Societies Act 1912, or
7.  An  entity  owning  an  existing  Private  sidings  or  an  assisted siding, or
8.  A subsidiary of an entity, or
9.  A joint venture company, or
10.  A consortium

An applicant has to deposit application fee of `

10 lakh.

## (ii) The  following  48  companies  have  shown  interest  towards  the scheme  for  development  of  'Private  Freight  Terminal  (PFT)  and proposals for 76 such terminals have been received so far -

|   1 | Aaryan Ispat & Power Pvt. Ltd.                 |   25 | Laxminarasimha warehousing and PFT Pvt Ltd.            |
|-----|------------------------------------------------|------|--------------------------------------------------------|
|   2 | Adhunik Alloys & Power Ltd.                    |   26 | Laxmi Venkateswara Warehouse                           |
|   3 | Ahir Salt and Allied Products Ltd              |   27 | Maheshwari Coal Benification                           |
|   4 | Anaparthi Warehousing Complex Pvt Ltd.         |   28 | Navkar Terminals Ltd.                                  |
|   5 | Arshiya                                        |   29 | NDR Infrastructure Pvt. Ltd                            |
|   6 | Boxtrans Logistics (India) Services Pvt. Ltd   |   30 | Palogix Infra Logistics Pvt. Ltd.                      |
|   7 | Central Warehousing Corporation (CWC)          |   31 | Paradip International Cargo Terminal Pvt. Ltd          |
|   8 | Consortium Sreejan/NTM                         |   32 | Pristine logistics & Infra Projects Pvt. Ltd.          |
|   9 | Container Corporation of India ltd.(CONCOR)    |   33 | Pristine Logistics and Infra projects Pvt. Ltd (PLIPL) |
|  10 | Continental Multimodal Terminals Ltd. Siding   |   34 | Punjab Logistics Infrastructure Limited (PLIL)         |
|  11 | Continental Warehouse Corporation Nava Sheva   |   35 | Raipur Handling & Infrastr. Pvt. Ltd.                  |
|  12 | Distribution Logistics Infrastructure Pvt. Ltd |   36 | Rajasthan Spinning & Weaving Mills                     |
|  13 | Fastrail                                       |   37 | Reliance Haryana Sez Pvt Ltd                           |
|  14 | Gateway Rail Freight Ltd.                      |   38 | S.V. Multi Logitech Pvt Ltd.                           |
|  15 | Gokul Refoils & Solvent Ltd                    |   39 | Sai Balaji Warehousing and Logistics Pvt. Ltd.         |
|  16 | Hasti Petrochemicals                           |   40 | Sanjvik Terminals Pvt. Ltd.                            |
|  17 | Hind Terminals                                 |   41 | SFA Logistics Pvt. Ltd                                 |
|  18 | Indermani Minerals (India) Pvt. Ltd            |   42 | Shiv Carriers Roadways Pvt. Ltd.                       |
|  19 | Indus Udyog & Infrasturcture Pvt. Ltd.         |   43 | Shri Mahavir Ferroalloy Pvt. Ltd.                      |
|  20 | IOTL                                           |   44 | Sociedadede Fomento Industrial Pvt. Ltd.               |
|  21 | Kashipur Infra Freight Terminal Pvt. Ltd.      |   45 | Tata Iron & Steel                                      |
|  22 | Kesar Multimodal Logistic Ltd.                 |   46 | TBEA India Ltd                                         |
|  23 | KRIBHCO                                        |   47 | Three Seasons Logistics Pv t Ltd.                      |
|  24 | Lakshmi Narsimhaswamy Infra. Pvt. Ltd          |   48 | Uttam Value Steels Ltd.                                |

- These  48  companies  have  altogether  applied  for  76  Private Freight Terminals (PFT) out of which  33 PFTs have  already been commissioned/ functioning with an investment  of approximately
- (iii) ` 575 Crores.
- II. Policy on Container Train Operators (CTOs) - With a view to provide total  logistics  support  to  the  end-user,  Railways  have  unveiled  a policy for running of container trains by private container operators in the year 2006 for transportation of containerized cargo.
- (i) Eligibility criteria - The license are provided to companies which fulfill  the  criteria  laid  down  in  Indian  Railways  (Permission  for operators  to  move  container  trains  on  Indian  Railways)  Rules, 2006 which broadly includes the following:
- 
- The Applicant shall be an Indian Registered Company.
-  The  Applicant  should  deposit  a  Registration  fees  of ` 10 crores  (or) ` 50  crores,  as  the  case  may  be,  based  on  the category of license applied for.
-  Must have experience in the Logistics related field.
-  The applicant company should not have been declared 'Sick' under Sick Industrial Companies (Special Provision) Act, 1985 and should have an annual turnover or net worth of not less than Rupees One hundred crores.
- 
- Should have their own terminals or shall take permission from any  of  the  existing  terminal  operators  for  handling  of  their

trains. Wagons  &  containers shall be procured by the Applicant.

- (ii) Based  on  the  policy  issued  by  Railways,  licence  have  been issued  to  the  17  companies  including  Container  Corporation  of India for running of Container Trains. The details are as under -
- 1.
- Adani Logistics Ltd.
2. International Cargo Terminals and Rail Infrastructure Pvt. Ltd.
- 3.
- 4.
- 5.
- 6.
- 7.
- Container Corporation of India Ltd.
- Central Warehousing Corporation Ltd.
- Container Rail Road Services Pvt. Ltd.
- Gateway Rail Freight Ltd.
- Hind Terminals Pvt. Ltd.
8. Innovative B2B Logistics Solutions Pvt. Ltd.
9. India Infrastructure and Logistics Pvt. Ltd.
- 10.
- Pipavav Rail Corporation Ltd.
11. Reliance Infrastructure Engineers Pvt. Ltd.
- 12.
- Sical Multimodal and Rail Transport Ltd.
- 13.
- Darcl Logistics Ltd.
14. Distribution Logistics Infrastructure Pvt. Ltd.
- 15.
- 16.
- 17.
- Kribhco Infrastructure Ltd.
- Arshiya Rail Infrastructure Ltd.
- Fourcee Infrastructure Equipments Pvt. Ltd.
- During the current financial year 2015-16, a target of revenue of 5000 Crores (approximately) has been fixed from the Container
- (iii) ` Traffic.
- III. Special Freight Terminal Operator (SFTO): To increase rail share of the  non-traditional  commodities  like  molasses,  fly  ash,  edible  oil,

caustic  soda,  chemical,  petrochemicals,  alumina  &  bulk  cement, Special Freight Train Operator (SFTO) Scheme has been launched in 2010 and modified in 2013 and 2014.

- (i) The eligibility criteria for the applicant becoming an SFTO are as under:
- 
- A registered company in India as per Companies Act 1956
-  A subsidiary company.
-  A Joint venture company or partnership
- 
- A public sector entity in the business of logistics.
-  The applicant should have minimum one year experience in any one of the following fields.(i) transport and logistics (ii) port and land  terminal  operations  (iii)  warehousing  (iv)  container  train operations (v) manufacturers (vi) wagon leasing company
-  Any company  which has been declared sick under Sick Industrial Companies (Special Provision) Act 1985 shall not be eligible  to  apply  under  these  rules  and  operate  trains  either individually or in association with other companies.
-  The company should have a net worth of minimum ` 50 crore or an annual turnover of minimum ` 75 crore as on 31st March of the last financial year.
-  In case the applicant is a subsidiary company, experience and net  worth  of  the  holding  company,  owning  more  than  50% equity  in  the  subsidiary  company,  may  be  reckoned  for  the purpose. However, in such cases, the applicant company must have more than 25% of the prescribed net worth.
-  The applicant has to apply for a minimum of 3 rakes under this scheme.

-  The  SFTO  selected  by  the  Ministry  of  Railways  shall  have  to deposit registration fee for different categories.
- (ii) M/s Jindal Steel and Power Limited (JSPL)  has been registered under  Special  Freight  Train  Operator  (SFTO)  Scheme  and  three rakes  have  been  inducted  by  JSPL  in  November  2015  and  the projected freight for the year 2015-16 is ` 3.24 crore.
- IV. Automobile  Freight  Terminal  Operator  (AFTO):    To  increase  Indian Railway's  market  share  in  transportation  of  automobile  sector  by inviting  private  investment  for  procurement  of  wagons,  a  scheme namely  Automobile  Freight  Train  Operator  (AFTO)  Scheme  was introduced in 2010, which was further revised in 2013 & 2014.
- (i) The  eligibility  criteria  for  applicant  for  becoming  an  AFTO  as under
- 
- A registered company in India as per Companies Act 1956
- 
- 
- 
- A subsidiary company.
- A Joint venture company or partnership
- A public sector entity in the business of logistics.
-  The applicant should have minimum one year experience in any one of the following fields.(i) transport and logistics (ii)port and land terminal operations(iii)warehousing (iv)container train operations(v) manufacturers (vi) wagon leasing company
-  The  company  has  to  deposit  an  upfront  registration  fee  of ` 5 crore.

-  The company should have a net worth of minimum ` 20 crores or an annual turnover of minimum ` 30 crores as on 31st March of the previous financial year.
-  Any company  which has been declared sick under Sick Industrial Companies (Special Provision) Act 1985 shall not be eligible  to  apply  under  these  rules  and  operate  trains  either individually or in association with other companies.
-  In case the applicant is a subsidiary company, experience and net  worth  of  the  holding  company,  owning  more  than  50% equity  in  the  subsidiary  company,  may  be  reckoned  for  the purpose. However, in such cases, the applicant company must have more than 25% of the prescribed net worth.
-  The applicant has to apply for a minimum of 3 rakes under this scheme.
- (ii) Two  firms  viz    M/s  Maruti  Suzuki  India  Limited  and  M/s  APL Logistics Vascor Automotive Private Limited have been registered under the Automobile Freight Train Operator (AFTO) Scheme. With induction of 8 rakes, the anticipated  revenue earnings in 2015-16 will be ` 63.24 crore.

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