Contract for development of new GCT at Bikkavolu awarded

Samalkot(Kakinada District): SCR Vijayawada Division has awarded the first ever contract through e-tender for development of new Gati Shakthi Cargo Terminal (GCT) entirely on railway land at Bikkavolu. The contract was awarded to M/s Grasim Industries Ltd at an estimated construction cost of Rs 15.24 crore, which will bear the entire construction cost. This move shall ensure development of additional terminals for handling rail cargo, generating extra revenue for the Division along with additional traffic.

The GCT at Bikkavolu will be a common user facility, wherein prospective as well as existing customers can access GCT for transporting their commodities. Railways shall retain a revenue share of 15% in Terminal Charges and Terminal Access Charges for a period of 35 years after the completion of Cargo Terminal. M/s Grasim Industries Ltd shall handle Caustic soda Lye, Food Grains, Industrial Salt and General Merchandize commodities after commissioning. The anticipated traffic projections are more than 8 rakes, both inward and outwards per month. Grasim Industries Ltd will commence the GCT construction at Bikkavolu within 18 months after receiving the Grant of Approval of Construction from headquarters. The ownership of infrastructure including track, signalling equipment and OHE created on railway land shall belong to the railways. This is a win-win situation for railways & customers as the GCT Operator shall avail 85% revenue share in Terminal Charges and Terminal access Charges for the rakes handled at the Terminal and Railway shall benefit with additional cargo terminal with best infrastructure developed by the GCT Operator. Maintenance and operations of assets like track, signal and telecom, over-head equipment shall be borne by the Railways at the Terminal and no terminal charges shall be levied on cargo for which GCTO himself is the consignor and /or consignee.

Indian Railways has introduced new Gati-Shakti Multi Modal Cargo Terminal (GCT) policy with a view to boost investment from industry in development of additional terminals for handling Rail cargo. Under this policy, apart from new terminals, under-construction and existing private sidings/terminals can also migrate to convert as Gati-Shakti Multi Modal Cargo Terminals.

Speaking on the occasion, Divisional Commercial Manager (DCM) Vavilapalli Rambabu said that these terminals will ensure adding new commodities and volumes of traffic to the railway freight basket. He stated that the entire process of identifying sparable surplus land, completing field survey, approval of drawings and estimates, floating and finalizing tender has been completed in a record time of 5 months.