Country’s only Rail Auto Hub yet to attract car majors

C Shivakumar

Walajabad (Kancheepuram district):

The country’s first auto hub being developed in Walajabad would soon flag off its first rake, which has the capacity to carry 125 cars, by the middle of this month, according to Southern Railway general manager Vashista Johri.

The hub was inaugurated by Union Railways Minister Suresh Prabhu from New Delhi through online, marred by technical glitches, as top railway officias assembled at Walajabad railway station, which is located near Kancheepuram district.

Interestingly, the launch of the auto hub would sound a death knell to the facility in Thiruvallur which was being used by Hyundai to transport its cars to Changasari in Assam.

But car majors are cautious in welcoming the move by Indian Railways. V Anand, senior general manager sales logistics, Hyundai, told Express that they need to evaluate the hub for commercial condition. "We have to evaluate in terms of aggregation of space, access to heavy vehicles and also loading and unloading cars besides safety of their cars,” Anand, who was present during the function said.

While the hub would be useful in transporting the car to Ennore Port, which usually takes nearly 36 hours through road from the manufacturing facility, Anand feels that cost factor still favours road sector.

The rail freight is too costly than road freight, he says. Only if the distance is above 2,000km, then rail freight service is affordable, he says. Interestingly, Hyundai, which produces 18,000 cars per annum, is using the rail to transport only four per cent of its cars and most of it is through Melapakkam facility sector.

While seeing its limitations in NMG rakes, Indian Railways is also planning to partner with APL VASCOR, a logistics specialist, which uses double decker wagon to transport the cars. One rake transports a total of 318 cars.

While the hub is being planned to cater to one million units of four-wheelers being produced per annum, the land looks inadequate and has to be developed to cater to huge containers carrying cars from the manufacturing plant. Even the road is too narrow but railways hope to expand it.

But Johri is optimistic. “It is just a pilot project. We will evaluate the first phase,” he says. Interestingly, the initial holding capacity is for 300 cars and it is likely to be expanded to 800 to 1,000 cars during the second phase.

Johri says that of the one million units being produced in Kancheepuram district, 3.6 lakh is being exported while the rest 6.4 lakh is transported to domestic market.

It is also planned to create infrastructure for the huge trucks carrying the cars from the manufacturing facility to the yard before being shipped to Chennai or Ennore Port or the domestic rail routes.

Currently, Hyundai is looking to transport the cars using the facility to Kathuwas near Delhi and Changasari in Assam.

While the idea of auto rail hub is good one but with lack of wherewithal and competition from private sector, it is long way to go before making the project a success. Barring Hyundai, there were no representatives from other auto majors