Jul 22, 2016

Measure To Boost Freight Traffic By Indian Railways

Following steps have been taken by Railways to boost non-coal sector participation in Railways Transportation: 

(i) Doing away with the busy season surcharge on Jumbo Rakes from April-2016 to June-2016. 

(ii) Appointment of key customer managers to engage with different industries. 

(iii)Tariff Rationalisation: 

• Distance of Mini Rakes increased from 400kms to 600kms. 

• Automatic Freight Rebate Scheme in Traditional Empty Flow Direction has been extended till 30.09.2016. 

• Port Congestion Charge (10% of Base Freight) has been withdrawn from 13.04.2016. 

• Merry-go-Round System has been introduced. 

• Dual Freight Policy for Iron Ore has been withdrawn from 10.05.2016. 

• Short Lead concession implemented from 15.07.2016. 

• Withdrawal of “Busy Season Charge” (15% Base freight) from 01.05.2016. 

• Classification of Commodities- 

(i) Classification of Red Mud reduced from Clas-150 to 120; 

(ii) Groundnut Seeds added under Oil cakes and Seeds at Class-120; 

(iii) Oliflux added under Minerals and ores at Class-160. 

In order to attract additional traffic to Railways and thereby increasing freight revenue, a number of initiatives have been taken by Indian Railways. These are as under:- 

(i) Liberalized Wagon Investment Scheme- So far, 66 rakes by 15 firms have been approved for procurement out of which 31 rakes have been inducted and are running on Indian Railway’s system. 

(ii) Wagon Leasing Scheme- Two companies have been registered as wagon leasing company, after which 12 rakes of BLC wagons were procured and approval for 4 new BLC and 2 BTAP rakes have been accorded. 

(iii) Special Freight Operator Scheme- 3 rakes of BRNA wagons have been procured and running in Indian Railway’s system. 

(iv) Automobile Freight Train Operator Scheme (AFTO)- Two companies have been registered as AFTO. Approval has been given for procurement of 12 rakes of BCACBM wagon. Out of which, 9 rakes have been procured and is running on IR system. 

(v) Private Freight Terminals (PFT)- To facilities development of a network of freight terminal with private investments to provide efficient and cost effective logistics services with warehousing solutions, a scheme namely Private Freight Terminal was introduced. So far 82 proposals have been received, out of which 35 terminals have been notified and are functional. 

This Press Release is based on information given by the Minister of State (Independent Charge) of the Ministry of Communications and Minister of State for Railways in a written reply to a question in Lok Sabha

 

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