Oct 25, 2016

Railways to lease out abandoned buildings to e-Commerce companies



New Delhi: eCommerce companies such as Flipkart, Amazon and Snapdeal may soon get to set up warehouses and pickup points at railway stations.

A senior official of the Railway Board said the Railway Ministry is working on a scheme to lease out its abandoned buildings and spaces near railway stations to etailers.
Meanwhile, the non-fare revenue cell of the Board is in talks with the eCommerce companies in this regard, the official said.

The move is seen helping the railways become an end-to-end logistics provider and monetise its real estate, while also reducing the delivery time for eCommerce companies as their warehouses and pickup points are mostly on the periphery of big cities.

“We want to be end-to-end logistics providers. Presently, we see a huge gap in the market where eCommerce companies are unable to get spaces in the city because the cost is too high,” the official, who did not wish to be named, told. “We are offering them our abandoned building and other spaces to set up warehouses and pickup points, that too at a cost-effective price.”

According to the official, EY and BCG have been roped in as consultants to work on the proposed scheme, which is expected to be announced soon. “Railways offers a cost-effective solution to eCommerce by allowing them to set up pickup points at stations.


With this, railways would also become a part of the growing logistics supply chain of white goods, hence getting additional revenues,” said Jaijit Bhattacharya, partner, KPMG. “It’s a win-win situation for both railways and etailers.”

At present, the railways leases out space only to India Post. The official quoted earlier said that ecommerce companies that opt to use the railway network for transportation of parcels could get a sweetened deal under the proposed arrangement. For the railways, apart from monetisation of vacant land and building spaces, the move could boost its freight revenue, which has remained capped in recent years due to no growth in movement of core commodities. Currently, over 90% of the movement of white goods is through roadways.

The ministry will also be offering space near rail side in smaller cities so that etailers, along with other new-age courier companies, can set up their hubs.

“The companies could have more efficient supply chain once their warehouses and pickup points are in the middle of the cities. They could also set up hubs in small cities through our rail-side warehouses,” the official said.

 

NEXT POST

READ MORE -

Rail News - Public service (4206) Rail News - Public service (3669) Rail News - Rail Employee (2330) News - General (417) DIVISION - JABALPUR (357) Rail News - Rail Development (321) News - Spl Train (266) Rail News - Job - Career (207) DIVISION - BHOPAL (205) Rail news - Metro (195) Rail News - Circulars (144) DIVISION - HUBLI (136) DIVISION - MORADABAD (122) Office Order (105) DIVISION - ALLAHABAD (94) World Rail News (85) Rail news - Public Alert (83) News - Loco Pilot (77) Rail News - Rail Budget (69) HIGH SPEED RAIL (68) Rail News - 7th Pay Commission (67) Rail News - New Train (63) Improvement in Facilities (59) Accidents (58) Rail News - Railway Safety (58) Rail Development (55) Rail news - World Rail (49) Rail News - Tourism (39) Public Interest (37) Award (35) News- Railway Exam Result (35) Rail News - Freight Services (35) DIVISION - Delhi (34) Rail News - Sports (33) Trade Union (33) Bonus (PLB) (30) PIB (29) Bullet train (28) News - Railway Employee (28) new line (26) IRCTC (25) News - Dearness Allowance (24) Station Master (24) Rail News - Special Train (22) TATKAL TICKET (22) RPF / RPSF (21) Railway News - Metro (21) Complaint and Suggestions (20) Railway Pensioners (20) Mumbai local (19) News - Job - Career (19) Rail News - Security (19) News - Catering (18) Railway time table (17) News - New Tech (16) Circulars - Govt of India (15) Scam (15) ‘Premium’ Special Trains (15) Know About (14) Rail News - Railway Revenue (14) Rail news - Employment Notification (14) Railway Board (14) Railway News - Delhi Metro (14) Catering Related Complaints (13) Railway Joke (13) Freight Corridor (12) DIVISION - RAIPUR (11) Dedicated Freight Corridors (11) Indian Railway History (11) Rail News - Security (11) Rail Accidents (10) AISMA (9) News - Exam Result (9) Passenger Amenities (9) Rail News - New Rail Line (9) Railway pass (9) Budget (8) DIVISION - Ambala (8) Employee News (8) INCOME TAX (8) PHOTO (8) Premium Air-Conditioned (8) Public Grievances (8) World Rail - China (8) fares hikes (8) semi-high speed (8) Central Railway (7) Night Duty Allowance (7) Rail budget (7) online tickets (7) International Railway (6) Mono Rail (6) Mumbai Metro (6) News - Budget (6) Rail Fares (6) Railway Safety (6) Ticket Booking (6) Train Cancellation (6) World Rail - Japan (6) Zone - Western Railway (6) extra coaches (6) guard (6) Always Important (5) Children Education Allowance (5) Drinking Water (5) HELP (5) Holiday Trains (5) IRCON (5) LOCOMOTIVE (5) Rail History (5) Rail News - Business (5) booking counters (5) hi-tech (5) macp (5) AIR - RAIL (4) Coaches (4) Food plazas (4) IMPORTANT RULE (4) Mumbai (4) News - Railway Rule (4) RAIL TEL (4) Rail Neer (4) Rail News - Rules (4) Railway Minister (4) World Rail - Pakistan (4) Zone - South Central Railway (4) e-ticket booking (4) escalators (4) Booking - Parcel (3) CCTV (3) DOUBLE DECKER TRAIN (3) Electrification (3) Konkan railway (3) Leave Rule (3) Medical Allowance (3) Member Engineering (3) Modal Question Paper (3) News - Rail Road (3) News- Railway Exam (3) PASS (3) Question Bank (3) Rail News - China (3) Rail fare hike (3) Suvidha Train (3) TRANSFER POLICY (3) VAISHNO DEVI (3) new pension scheme (3) reservation (3) tatkal ticket (3) Booking - Luggage (2) D & A RULE (2) Extension of train services (2) Khumbn Mela (2) LDCE (2) MATHERAN (2) MOBILE APPS (2) Minister of State for Railways (2) National Rail Museum (2) News -World Film (2) OROP (2) Passenger Reservation System (2) Police help desk (2) Provident Fund interest (2) Rail News - Goods Train (2) Railway Protection Force (2) Railway Proud (2) Railway Stations (2) Retiring Rooms (2) Revenue earnings (2) South Eastern Railway (2) Zone - East Central Railway (2) Zone - N E RLY (2) Zone - Northern Railway (2) Zone - Southern Railway (2) railway station (2) ALER (1) Air Travel (1) DIVISION - CENTRAL RAILWAY (1) DIVISION - MADURAI (1) DIVISION - VIJAYWADA (1) Directory (1) Division - Rangia (1) FOOT OVER BRIDGE (1) FORMS (1) Government Railway Police (1) House Rent Allowance (1) Interesting Facts (1) JAIPUR (1) LARGESS (1) LONDON (1) Lifeline Express (1) MST (1) Measures Against Fire (1) Medical Care (1) Ministry of Railway (1) News - TV (1) Passenger Security (1) RDSO (1) Rail - Roko (1) Rail Bridges (1) Rail News - Privatization (1) Rail News - Bengali (1) Rail News - Consumer Forum (1) Rail Tariff (1) Rail Tenders (1) Rail e-tickets (1) Railway Act (1) Railway Quarter (1) Railway Week (1) Rath Yatra (1) Road over Bridges work (1) SCRA (1) SKY BUS (1) Sainagar Shirdi (1) Suburban trains (1) Swadeshi (1) TRAVELLING ALLOWANCE (1) Ticket Examiner Staff (1) Track Man (1) WhatsApp (1) World Rail - New York (1) World Rail - Russia (1) World Rail - USA (1) World Rail - Washington (1) Zone - E RLY (1) Zone - N C RLY (1) Zone - North Western Railway (1) Zone - Northeast Frontier Railway (1) Zone - S E Railway (1) fire-fighting equipment (1) mobile ticket booking (1) smart card (1) wagon factories (1)

Followers