TM International Logistics Limited (TMILL), a joint venture of Tata Steel, NYK Holdings (Europe) BV and IQ Martrade is planning to kick-start operations of private trains in association with Indian Railways to carry steel coils of Tata Steel, a senior company official said on Wednesday, July 22.
“We are very excited about running our own trains by participating with Indian Railways Special Freight Train Operators’ Scheme (SFTO). The scheme offers us vast opportunities to expand our freight logistics business and we will commence by transporting steel coil products of Tata Steel to various markets,” TMILL managing director, R N Murthy said.
The Indian government owned and operated Indian Railways recently put the SFTO scheme in force under which private companies could own and operate privately owned trains for identified commodities by investing in their own railway and arrange for loading and unloading from these special freight trains.
For example, steel companies will be permitted to run these special freight trains with customized wagons catering to specific steel products like coil but the wagon specifications will have to be approved by the government’s Rail Design and Standards Organization (RDSO).