The government will set up ten automobile and ancilliary hubs across the country in the public-private-partnership (PPP) mode between the Railways and the auto industry.
The hubs will create docking areas for cars and two wheelers and aims at increasing railways’ share in automobile transportation. At present, only about 5 per cent of cars and two wheeler logistics is taken care of by the railways.
“We have been in consultation with the railway board for setting up such hubs,” said an official of the Society of Indian Automobile Manufacturers (SIAM). “These will create parking lots for automobiles, enabling companies to use railways as a mode of transportation of goods on long distances.”
According to SIAM, if this project is implemented successfully, railways’ share of logistics can go up to 15 per cent in the next three-four years.
“Countries like the US, China, Germany and France use railways in a big way and India and it is natural that India also follow that path,” the official added. Around 8-10 acres of land would be required to set up such a hub, besides secured fencing, lighting and customised wagons.
Companies like Maruti Suzuki and Hyundai are already working with the railways to create such infrastructure. “If the government is serious about setting up such an infrastructure, we will take a look at it,” said a Hyundai spokesperson.