New Delhi: Highway transport has historically been the dominant mode of transport to ferry the autos from the manufacturing hubs to market locations in India as a consequence of its flexibility and accessibility. Progressively, automakers are shifting to railways to hold their autos from the factories to the dealerships primarily to chop logistics value, meet sustainability targets and adjust to emission norms. This additionally permits them to cut back the transit time, ferry bigger volumes of autos in a single go and guarantee security throughout transportation.The rail freight charges have remained steady for the previous 10 years, which has been a significant assist for the business. Nevertheless, the Ministry of Railways has revised the charges of haulage cost, elevated the freight charges by 20% for the motion of Bogie Lined Autorake Double Decker Wagon (BCACBM) from the present monetary yr.
“Car producers have inside targets for utilization of railways and have been working in the direction of attaining that. However with this fee revision, producers could must re-look at their targets and would possibly shift their volumes to different modes of transportation,” Rajesh Menon, Director Common, Society of Indian Car Producers (SIAM) stated.
“Car sector was not anticipating such a revision. Quite, a revision in a phased method would have been extra acceptable, year-on-year foundation, for enterprise planning,” he stated.
Trade specialists consider that such a fee revision has come up at a time when transportation by way of railway rakes was more and more turning into a most well-liked mode. Such a revision in charges could function a dampener in its development.
Bal Malkit Singh, Chairman- Core Committee & Former President, All India Motor Transport Congress (AIMTC) stated that the 20% revision in charges signifies that the present freight construction just isn’t viable within the mild of rising working prices.
Maruti leads the wayMaruti Suzuki was the primary carmaker to make use of railways to move its autos within the nation. Over the previous 8 years, the corporate has elevated its rail dispatches by five-fold. In FY15, it transported 65,700 models which has now elevated to three,35,245 models in FY23. Cumulatively, it has dispatched over 14.9 lakh autos utilizing the rail mode until FY23 and claims to have averted 6700 MT of carbon emissions.
Railway dispatches has additionally helped the automaker to achieve its prospects in Southern and North-Jap states a lot quicker. Maruti Suzuki has 40 railway rakes, with a capability to hold over 300 autos per rake. It makes use of 7 loading terminals throughout Delhi-NCR and Gujarat and 18 vacation spot terminals – Bangalore, Nagpur, Mumbai, Guwahati, Mundra Port, Indore, Kolkata, Chennai, Hyderabad, Ahmedabad, Delhi-NCR, Siliguri, Coimbatore, Pune, Agartala, Silchar, Ranchi and Ludhiana.
Rahul Bharti, Govt Officer- Company Affairs, Maruti Suzuki stated that for the decongestion of roads, attaining greater vitality efficiencies and for decreasing CO2 emissions, it is very important improve railways transportation.
Nevertheless, he added, “For railway logistics to be viable, the price of logistics have to be profitable and aggressive. We hope that as the amount of railway dispatches improve, economies of scale will set in.”
Going ahead, the maker of WagonR and Swift is bullish on railway transportation and stated that it’s concentrating on to systematically improve dispatches by near about 1 lakh models yearly within the coming years.
“The rise in value could also be operational for Maruti Suzuki because it transports giant volumes. The corporate additionally has its rail yards. For OEMs with comparatively smaller volumes, the 20% improve might be dampener,” stated an business govt on situation of anonymity.
Transporting autos by way of Railways vs RoadwaysIndustry specialists recommend that for brief distances there may be not a lot distinction in the price of transportation by way of totally different modes. Nevertheless, for lengthy haul the price of transportation by street is sort of double when put next of railways.
Chetak Group, which has been within the logistics business for over 4 many years, can also be seeking to enterprise into railways as a mode of auto transportation. The corporate caters to auto OEMs together with Maruti Suzuki, Hyundai, JCB, Kia, Honda, amongst others.
Sachin JKS Haritash, Director, Chetak Logistics stated, “We’re planning to put money into railways. We’ll finalize and place an order for bogies by this yr.” One railway bogie, which may carry about 300 vehicles, prices about INR 25 crore.
In response to SIAM estimates, for transporting a mid-size automotive over a distance of two,200 kms as we speak, the price of transporting autos by street is about INR 30,000. For transporting the identical automobile by railways the associated fee comes as much as round INR 20,000.
Other than decreasing the carbon footprint, one of many greatest causes for shifting to railways has been a major improve in the price of transportation of autos by street over the previous 10 years. Whereas this improve and the general value of transportation varies from one producer to a different, it’s largely depending on the amount of autos being transported and the long-term fee agreements automobile producers could have with their logistics suppliers.
It might even be famous that whereas transporting autos by way of railways, further first and final mile bills are additionally borne by the automobile producers, Menon stated. For transportation by way of railways, OEMs transfer the automobile from the manufacturing plant to the closest railway yard the place vehicles are loaded within the rakes. It’s then transported from the beginning level of the rail path to its finish. That is adopted by carrying it to the respective dealerships.
For railways, the automakers additionally must cater to the price of terminal dealing with.
Singh of AIMTC acknowledged that in contrast to railways, roadways present the flexibleness of first and final mile supply. Highway transporter vehicles additionally present a bonus of working as per the consumer’s schedule. To make sure security, lined automotive carriers put a bodily shell across the automobile throughout transit. The transporter vehicles are additionally designed particularly to hold vehicles and are geared up with loading lifts, winches, ramps and likewise include safe mounting factors for the automobile.
Railways must cater to the potential of automakers’ manufacturing within the nation. In response to AIMTC estimates, the ratio of automakers transporting autos by way of railways vs roadways is about 1:7. The penetration of railways stands at about 12% for auto OEMs, besides Maruti Suzuki.
AFTO LicenseThe Ministry of Railways first launched the Car Freight Practice Operator (AFTO) Coverage in 2010. Later, with an purpose to encourage logistic service suppliers to put money into railway wagons and improve the motion of completed cars by railways, it modified and reintroduced the AFTO Coverage 2013, to supersede the sooner Coverage.
In 2018, the federal government relaxed the Coverage and lowered the registration payment to INR 3 crore from INR 5 crore earlier. The variety of rakes to be procured which stood at 3 was additionally lowered to 1 and restrictions to move the cars in a single path have been lifted.
Maruti Suzuki is the one SIAM member which has an AFTO license. This license permits the Firm to manufacture and function excessive velocity, excessive capability auto wagon rakes on the Indian Railways community. As well as, there are different non-public operators just like the Transport Company of India, APL Vascor, IVC Logistics, amongst others who’ve obtained the license for transporting autos by way of railways.
Earlier, the Indian Railways additionally developed the New Modified Items (NMG) rakes, that are largely passenger wagons adjusted in a way the place home windows are welded and passenger seats are eliminated. The autos are then loaded from the rear within the empty capsule-like construction.
At present, the NMG and the BCACBM Auto Loader wagons are used for automobile transportation by way of railways.
