SIAM welcomes the announcement of Rail Auto Hub in Chennai

Car Makers feel that the proposed Rail auto hub in Chennai is going to a big support to industry

 Society of Indian Automotive Manufacturers or SIAM has welcomed the proposal of setting a Rail Auto Hub in Chennai. This was announced by Mr. Suresh Prabhu, Minister for Railways Railway as a part of his Railway Budget announcements. According to reports, this proposed Rail Auto Hub will be providing a big support to the automobile industry by facilitating transportation of vehicles from manufacturing plants to respective destinations. The Upcoming Union Budget will also have significant impact on the automotive world.

Soon after the Railway Minister’s announcement that an Auto Hub would be shortly inaugurated in Chennai, SIAM has informed that it had been in dialogue with Ministry of Railways. It also conveyed that Mr. Vinod Dasari, President, SIAM, has called it a very welcome development as from the point of view of clean and efficient solution, Railways has to emerge as a viable and economic alternative logistics option.

  According to Mr. Dasari, “The involvement of the Transport Logistics Company of the Railways can provide the first mile and last mile connectivity between the OEMs and Dealers thus providing end-to-end logistics solutions for the automobile sector.” 

He went on to add that it is also encouraging to see that many other recommendations of SIAM are being taken into consideration in the Railway Budget, which includes rationalization of freight structure, long-term tariff contracts for key customers, rail site logistics parks and warehouses for loading and unloading facilities and availability of timetable for freight trains.   

Looking at the support the Ministry is extending to the industry, SIAM believes that rail logistics would gain further traction in the movement of vehicles in the future.

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