Indian Railways to allow private companies to develop goods-sheds at Railway Stations.

After initiating privatisation of its passenger train services and station redevelopment works, the Indian Railways is now set to develop goods sheds at railway stations through private investment.

With a view to making railways' freight operations more robust, the railway board recently unveiled a policy for setting up of new goods-shed facilities and developing existing goods-sheds (which Railways are unable to do due to lack of resources) at a large number of railway stations, through private participation.

Private companies will be entitled to a share in the terminal charges and terminal access charges for all inward and outward traffic dealt at the goods-shed for a period of five years from the date of completion of work, the policy document, a copy of which has been reviewed by ET, said.

The share will be decided through a competitive bidding process and the party seeking the least share will be awarded the contract.

Private companies developing these goods sheds will be able to utilise available space for advertisements, setting up food kiosks and canteens during the duration of the contract.

The Indian Railways have around 1,200 existing goods-sheds which will be redeveloped. Besides, there is room for developing new goods sheds at the remaining goods-sheds at over 7,000 railways stations, a senior railway ministry official told ET.

ET