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Shippers in Chennai reluctant to shift from road to rail

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The reluctance of shippers in Chennai to switch more cargo from road to rail is another hurdle in government’s efforts to speed up road to rail conversion for reducing port congestion and increasing productivity. In spite of time-definite train services and tariff incentives offered by Concor, shippers are showing no inclination to move loads to rail. Chennai’s rail share in the first three fiscal quarters through the end of December slipped to 5.6 per cent from 6.1 per cent, in the same period in 2015.  Chennai’s April to December rail volumes totalled 63,371 teu out of total throughput of 1.12 million teus, versus 71,567 teus and 1.16 million teus previously. At the same time the share of truck shipments remained flat at 94 per cent.

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