After offering space for spa and retail, Western Railway has decided to lease out space to set-up a warehouse at Grant Road station, areas around which have booming business, especially in electronic and computers.
Grant Road lies in the heart of South Mumbai and there are wholesale markets at Lamington Road dealing in electronic goods, Mangaldas Market for cloths, Kalbadevi, Bhuleshwar etc. This is a highly commercialised but congested area. Due to space crunch developing a warehouse in this area is a challenge. Hence, WR feel that a warehouse with ample capacity and facility in the vicinity of these business centres shall prove to be gamechanger for businesses in this area.
WR’s chief public relations officer Sumit Thakur said, “We have invited bids for developing Rail-Side warehouse at Parcel depot in Grant Road on Renovate, Operate, Manage and Transfer (ROMT) basis. This facility will bring shops and warehouse near to each other saving time, fuel and labour to businesses.”
The identified can be used by licensee for office purpose, stacking, storage, sorting, parking etc. Thakur said ,”The area offered is 2058.25 Sq. Mt. We expect to earn Rs 28 crore through this deal over a period of five years.” Thakur said, “Another advantage is that this facility could become instrumental in bringing new parcel traffic to railway as it is very near to Mumbai Central Railway Station. Also, at the end of five year, the developed warehouse facility will be handed over to railway, which later can be exploited at more remunerative rates.
The decision has been taken to improve non-fare box revenue. Usually, the sources of non-fare box revenue are mobile assets, out of home advertising, rail display network and content on demand. A MRVC study in 2014 had pointed that level of non-fare revenues in the system on Mumbai suburban is 6 per cent when compared with other urban rail systems in the world.
For example, MTR Hongkong used to earn 41 per cent of its revenue from non-fare sources while Singapore’s SMRT had 25 per cent. Recently WR offered space for unisex saloons at at Mumbai central, Andheri, Goregaon, Kandivli and Borivli in Mumbai and Surat in Gujarat. At Mumbai Central, it has awarded contract for upgraded waiting room with facilities like massage and spa apart from spruced up interiors. At Dadar WR h as offered space to open Family Mall.