Auto Industry looks at Indian Railways to meet transportation demand of automotive logistics

Government agencies willing to help automotive logistics sector

Chairman, Railway Board calls for suggestions for sustainable growth

New Delhi, 9th October, 2017: Society of Indian Automobile Manufacturers (SIAM), the apex body of the automobile industry held its 4th SIAM Automotive Logistics Conclave today where delegates discussed emerging challenges in India’s fast moving automotive logistics sector and called for concerted efforts from the industry players and the government, especially the Indian Railways, for the sustainable development of the sector.

Speaking at the inaugural session of the annual event of SIAM Automotive Logistics Conclave themed : “Changing Facets of Automotive Logistics’’, Dr Abhay Firodia, President, SIAM & Chairman, Force Motors Ltd said developments in the sector are happening in a very exciting pace in these changing times with active participation of the government.

“Presence of Chairman, Railway Board here indicates that the government is desirous to be pro-active to smoothen and transitioning to the new era. The Railways has been a major catalyst and a lever in transformation of our country. It has the power to move things, people and freight, which have huge impact on efficiency and cost,” Dr Firodia asserted.

Terming Indian Railways as the movers of nation, Mr Ashwani Lohani, the Chairman, Railway Board, who was the chief guest at the Conclave assured the industry that he is trying to bring in culture of work at Railways and has initiated the process of reforms.

He said the Indian Railways is poised for a change, in the way it conducts its business. “We do have issues and we are aware of it. We are trying to focus on these issues and so have initiated the process of reforms. It is a changing time for the nation. You will see a paradigm shift that will come in Indian Railways. We will spare no effort in improving the interaction with automobile industry in meeting their logistics needs,” Mr Lohani asserted while replying to a participant urging him to look into delays and mishandling of goods while transporting through Railways network.

Mr Lohani also suggested SIAM and the industry to share their concerns with him and promised to address as many issues as possible. He further stated that the Indian Railways is looking at consolidation and growth especially for the high speed freight corridor and auto hubs.

“We want private investments in this segment. We have a scheme of entering in long term partnerships. The long term contract agreement will help reduce logistic cost. This is the new policy. We at Indian Railways are looking at different ways of conducting business. Currently we move 1100 million tonnes of freight a year and 25 million passengers a day. We understand that the manufacturings of vehicles have gone up and so the requirement of logistics is crucial for the sector. Automobiles are symptom of how our economy is doing,” Mr Lohani explained.

Mr Prem Verma, Chairman, SIAM Logistics Group & Project Leader – Logistics, Tata Motors said that this annual event is an excellent initiative to bring in the industry on one platform to discuss issues and concerns confronting the sector. Welcoming Mr Lohani, Mr Verma averred that his presence at the conclave is the testimony to the seriousness Indian Railways have for the automobile business. “We are very sure that going forward, things would be better and will improve further,” said Mr Verma.

Over 100 delegates from vehicle manufacturers and logistics service providers  participated on the first of the event.  Display stalls were also set up by a few logistics provider.  The conclave will conclude tomorrow with sessions on other modes of transport.

About SIAM
The Society of Indian Automobile Manufacturers (SIAM) is a not-for-profit apex national body representing all major vehicle and vehicular engine manufacturers in India. SIAM works towards supporting sustainable development of the Indian Automobile Industry with the vision that India emerges as the destination of choice in the world for design and manufacture of automobiles. It also works towards facilitating enhancement of the competitiveness of the Indian Automobile Industry, reducing cost of vehicles, increasing productivity and achieving global standards of quality.