Rail budget disappoints freight haulers

Railway minister Laloo Prasad Yadav's interim budget for 2009-10 interim railway budget proposals announced on Friday has not pleased private rail operators, as there are no new incentives for cargo handling.

However, wagon manufacturers are more upbeat, thanks to the proposal to add more coaches to passenger trains. With a proposed investment of Rs2.3 trillion over the next five years, Yadav proposed introducing higher capacity wagons. He also indicated that the high-speed 'bullet train' proposal, which has been on the table for some time now, will get a fresh focus.

Construction work on the eastern high-speed corridor, meant to separate passenger and cargo lines, started on 10 February and work on the western line will begin this month, Yadav said in his speech, spurring hopes of more wagon demand in the near term. The ministry had set up a special purpose vehicle in October 2006 to construct a dedicated freight corridor to carry cargo.

Yadav said 43 new trains will be run this year. "The freight corridor they've announced will boost demand for the new technology wagons. The total number of these wagons is likely to go up further," said Ashok Vijay, senior vice president of Texmaco Ltd.

Texmaco, India's biggest private wagon manufacturer, has hich secured orders for 3,000 wagons in 2008/09 and expects orders for another 4,500-5,000 wagons in fiscal 2010.

Rail operators, on the other hand, felt left out in the cold, as they expected some concessions on freight charges. They were hoping for a reduction in haulage charges, especially for empty containers, and better facilities.

Freight in India is estimated to rise 6.59 per cent to 910 million tonnes in 2009-10 despite a slowing economy. The load has been rising at an average of eight per cent a year over the last five years.