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MACHINIST - Stone India subsidiary in collaboration with Railrunner for freight cars

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Stone India subsidiary in collaboration with Railrunner for freight cars
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Written by Vijay   
Tuesday, 06 October 2009

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Mumbai: Stone India through its wholly owned subsidiary company Stone Intermodal Pvt Ltd executed an exclusive collaboration agreement with Railrunner N.A. Inc. USA to manufacture, operate and sale the new generation freight cars for seamless door-to-door transportation service on rail and road.

This project will entail an investment of Rs 150 Crores in two phases. The phase I investment will be through internal accruals and the facilities for manufacturing is being set up in its existing location with a capacity to build 25 Railrunner Freight cars/month.

In Phase II of the project the company will set up a Greenfield manufacturing plant with a capacity to build 500 Railrunner freight cars per month. All the major components & systems of these freight cars will be made in-house by Stone India.

The collaboration provides exclusivity in marketing, manufacturing and operating rights in India for an initial period of 10 years.

"The gross weight to tare weight ratio of the system will be as high as 4.5 against 2.5 to 3. Against a standard train of 45 flat freight cars, this system will permit 50 flat cars per train due to reduced inter car gaps. This dead weight reduction of approximately 400 MT & higher number of cars/train will reduce the rail transportation cost significantly and also result in significant fuel savings due to reduced drag and lower tare weight of train," states A. Mondal, Managing Director & CEO of Stone India.

Revenue

The five main revenue streams for this project are : Door-to-door cargo operation with web enabled on-line tracking system ; Railrunner Rolling Stock Sale ; Leasing operation for Railrunner Rolling Stock ; Cargo tracking operation for Railrunner Service operators ; Rolling Stock Maintenance and spares.

According to the company, due to significantly lower engine fuel consumption or lower tractive power requirements the products will qualify for carbon credit.

"For the first time India freight movement will have air-cushioned ride, articulated bogie thereby enabling freight trains to run at mail/express train speed and permit sophisticated & fragile products to be transported through rail. The system will also enable movement of automobiles, automobile components, refrigerated products seamlessly in rail as well as road," he adds.

The company has already received commercial & operating clearance from Indian Railways and the design validation is in progress, which would be completed soon. On completion of technical clearance from Indian Railways, the company will enter into an agreement with Indian Railways for train operation with Railrunner freight cars.

The company expects that, five years hence the cargo market in India can have around 100 numbers operating Railrunner freight trains.

 
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