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CTO (container train operator)
What it is
Private operators have run container trains on the Indian Railways network under long-term licences since 2006. The operator owns or leases rakes, pays Indian Railways a haulage charge for track and traction, and prices the customer door-to-door
A rake carries roughly 90 TEU loaded single-stack, with realisation on north India to west coast EXIM lanes around Rs 20,000-21,000 per TEU
Impact on industries
- The margin is a spread between door-to-door realisation and haulage, handling and road cost - a conversion model rather than an asset-price bet
- Scale in rakes and terminals improves utilisation and lets an operator offer reliable scheduled services rather than opportunistic capacity
- Haulage charge is set by Indian Railways, so the largest cost input is administered by the same entity that owns the competing network
- Rakes are capital-heavy and route-specific in practice, so a demand shift strands assets bought for a particular lane