India's first rail auto hub is now operational

India's first auto rail hub is now operational. Located at Walajabad in the Kancheepuram district of Tamil Nadu, it is designed to hold 300 cars and to help cars to be driven on stone-paved tracks into the railway wagon.

The hub is located 12 km - 40 km from the manufacturing facilities of Renault-Nissan, Hyundai and Ford. On a yearly basis, the hub is expected to be used to transport more than one million cars manufactured by the plants in the area.

The first batch of cars was loaded on a freight train that has 25 wagons capable of carrying five cars each. The 124 cars that were loaded onto the train, have been built by Hyundai. They will be transported to Changsari in Kamrup district in the state of Assam. Southern Railway will earn Rs. 16.37 lakh from this trip. Cars built in adjoining states are also likely to be brought by trains to Tamil Nadu for distribution.

The railway ministry announced its plans to develop Walajabad as a rail auto hub in February 2016. It was inaugurated on March 1.

Southern Railway plans to capture the export market through Chennai and Ennore ports as well. It plans to transport cars to and from the two ports. The move is likely to help it increase its freight earnings.

Source: ET Auto