First 100% private-funded Gati Shakti terminal begins operations

The Dedicated Freight Corridor Corporation of India (DFCC) commenced operations on the Rewari Gati Shakti Cargo Terminal (GCT) in public-private-partnership (PPP) mode. This becomes the first operational GCT with complete investment from a private player and zero revenue-sharing on account of the Indian Railways. The Rs 8-crore GCT in Haryana, built solely for container traffic, along the edge of Line 10 of the New Rewari station on Western Dedicated Freight Corridor (DFC), will be operated by Pristine Mega Logistics Park, which got the project in a race against state-owned Container Corporation of India (Concor) and shipping major DP World, officials said.
“It’s a revolutionary departure from the existing practice in Indian Railways where a part of the terminal access charge is shared by the GCT operator to railways. This measure will ensure that the development of the terminal is achieved with no investment by railways or DFCC,” the railway-owned firm said. The terminal has been made operational within 75 days of awarding of contract.
Senior officials present at the inauguration said private sector interest was evident from the fact that all three companies had made bids for zero revenue sharing, which means railways would keep all the revenue from terminal usage fees. Typically, only a certain part of the terminal access charge (TAC) is shared with the railways by the operator, due to a policy on land management framed last October. The proportion of sharing between the private operator and the railways is a key bidding metric.