Shipping Ministry to set up new co to develop port rail projects.

As part of its initiative to fast-track port connectivity, the Shipping Ministry proposes to incorporate a new company to undertake rail projects at all Government ports.

The new entity, which will have equity participation from the 12 Major Ports, is expected to implement all new rail projects and also to undertake the existing rail line operations with in the port area, a Government official said.

Nitin Gadkari, Union Shipping Minister, discussed the Ministry’s proposal with head of government ports at a meeting in Mumbai. The proposed company will have an initial authorised capital and of Rs.100 crore. The official, however, said the proposal is at an initial stage and the details are yet to be worked out.

Currently, rail projects at ports are implemented by special purpose vehicles created by individual ports with the support of Rail Vikas Nigam Ltd. However, projects often get delayed under this model.

Ports like Mumbai and Kolkata operate their own rail lines within the port area. These ports own locos and maintain the rail lines themselves. Mumbai port railway handles around four million of tonnes of cargo a year. The proposed port rail infrastructure company is expected to take over all the railway operations with in the port.

HBL