October 12, 2008

Union railway ministry plans bulk terminals

Union railway ministry is planning terminal development scheme for private entities, which will enable private companies manufacturing products such as cement, fertilizers and fly ash to build their own terminals for transporting these freight items keeping in mind their specific requirements.

The terminal is likely to be set up near the manufacturing hub either on private land or on land owned by railways. The developer will have to build the terminal at his own cost according to his specific needs and can house facilities for storage, loading, unloading and packaging of the commodity. According to initial estimates, setting up such terminals will require investments of at least INR 40 crore each.

It is learnt that, as an incentive, the terminal owner will enjoy freight discounts stretching over a period of 20 years. This will translate into a freight concession of 15%, a waiver of the hefty busy season surcharge along with a waiver of the terminal surcharge for the developers of the terminals.