Automobile logistics by Indian Railways : Eco friendly and Faster deliveries
Recently, Volvo Cars has realized the power of railway logistics for transporting its finished products which is economical and significantly cuts carbon dioxide emissions. These cars will be transported from plants to car depots.
This switch from trucks to trains is a meaningful change that an automobile company can introduce in the industry as operational emissions, including logistics makes up for the 25% of carbon footprint per car. Volvo is planning to tackle carbon emissions across its operations including through recycling and reuse of materials.
Volvo is using trains to transport its cars from its manufacturing plants in China to Belgium two times a week. Volvo uses trains for delivering cars to depots within China, US and in Russia.
Eco-friendly being a trending concept, definitely plays well with consumers. For those who do not find a cleaner environment appealing, would be happy to know that this would result in shorter waiting period and faster deliveries.
If you are wondering why cant India do it too, well, we already are. India has been using trains to deliver its cars since 2014 and now railways has become the preferred choice.
Automobile Logistics by Indian Railways
This advancement in train automobile logistics would not have been possible without the Research Designs and Standards Organization (RDSO) of the Indian Railways that designed a 2-level Auto Car wagon â€˜BCACBMâ€™ for transporting cars from factory to to various markets through its extensive rail network. One rake can accommodate up to 318 cars at a time which is a huge number as compared to road transportation.
To attract more automobile traffic, the Indian Railways liberalized Automobile Freight Train Operator (AFTO) policy in 2019 to attract more private investment in the special wagons, BCACBM (high-capacity railway wagons) and NMG wagons. Indian railways has relaxed the minimum requirements for a logistics company to get into a partnership them.
The registration fees for AFTO which was INR 5 crores was reduced to INR 3 crores recently and minimum rake procurement was reduced from three rakes to one.
Adani Logistics Ltd, APL Logistics amongst others are the third party logistics companies that are in partnership with the Indian Railways. Maruti Suzuki has a partnership with Indian Railways for transportation solutions for finished cars.