Friday, September 30, 2022

Railways allows Amazon to use its trains to transport consignment

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New Delhi: The Railways has struck a deal with e-commerce giant Amazon under which it will allow the company to transport its goods by train. The deal is expected to be a great boost for the railways parcel business.

Railways to accommodate Amazon on 2 premium trains

According to a Railway Board letter, the Railways will give space to Amazon on two of its premium trains — Sealdah Rajdhani and Mumbai Rajdhani — on a pilot basis for a period of one month. The contract would be extended to three months depending on the feedback received.

Under the agreement, the zonal railways will earmark a space of 2.
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5 tonnes in the parcel van of these trains for loading/unloading of Amazon India consignments and the remaining space of 1.5 tonnes will be for the Railways.

What else does the agreement involve?

Amazon will be responsible for paying freight charges equivalent to the highest lease rate on the same train on pro-rata basis. One month advance freight charge will also be levied on Amazon by Indian Railways.

The proposal faces resistance from unions

However, the fact that the Railways will give Amazon India the task of loading and unloading parcels has caused much unrest among employee unions which consists comprising of workers involved in the loading and unloading work. They have alleged that it would cost them their livelihood. In order to register their protest on the matter, they have called a two-day strike on July 31 and August 1.

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