Indian Railways launches auto rail hub in Chennai

Indian Railways has inaugurated its first common user finished vehicle rail hub at Walajabad station, in Chennai in the south of India, close to a cluster of assembly plants. The hub is part of the Indian government’s plan to increase the movement of vehicles by rail in India substantially over the next decade. According to information distributed by the Press Information Bureau of the Indian Government, the Walajabad hub is 5,000 square metre large, and will have loading capacity of 300 vehicles. The centre is located close to plants that include Renault Nissan, Hyundai Motor and Ford, with access to the ports of Chennai and Ennore for export flows. The hub is also touted as regional distribution centre for receiving brands such as Honda and Tata built in the north of the country. Suresh Prabhu, India’s railway minister (pictured), who inaugurated the centre by video link, said that the Chennai site was only a first step in the development. He also highlighted the importance of working across vehicle brands. “Indian Railways is further working on how to get more auto transportation into the railway track,” he said. “Railways cannot rely upon only one business partner and this is the way to do business and thus reach to cargo is essential to generate/increased freight revenue.” According to Indian Railways, only around 4 percent of vehicle traffic is transported through Indian Railways, resulting in about Rs 100 crore annual revenue. The railways target is to increase its share to 20 percent by 2026. The rail hub is part of a set of reform by the Indian Railways in recent years to capture a larger share of finished vehicle and overall freight volumes by rail. In recent years, the government had also allowed some operators to invest and operate specialised equipment.