Indian Railways announces fresh freight incentive

In a significant development last week, Indian Railways announced certain Freight incentives to give a boost to the economy. Member (Traffic), Railway Board P.S. Mishra, announced these measures, to support various segments of the industry. These include:

Levy of Busy Season Charge Deferred:

  • BSC, which is levied @ 15% from 1 Oct-30 June, has been deferred till further advice (Except for iron ore and POL).
  • Coal & coke and container traffic are already exempt.

 

Waiver of Supplementary charges on Mini and Two point rakes:

  • The 5% Supplementary charges applicable on Loading on Mini and Two point rakes is being waived off.
  • This is likely to boost loading of Smaller cargo sizes and help cement, steel, food grains and fertilizers loading.

 

Round-trip charging on container traffic:

  • As per haulage charge rating of container traffic, 0-50 km is the minimum distance slab for charging.
  • It is seen that container traffic in this ultra short lead (0-50 km) is very low at present.
  • Therefore, round-trip charging of container trip has been introduced for a distance of less than 50 km on each way.
  • Under this scheme, haulage charge for 0-100 km slab will be charged for total to and fro movement, instead of charging for 0-50 km slab each way.
  • Impact- this comes out to be about  35% cheaper per TEU for the complete round-trip
  • It is expected to especially give a fillip to EXIM traffic between ports and Inland Container Depots.

Discount on movement of empty containers and empty flat wagons

  • A discount of 25% discount in haulage charge of containers has been given to encourage movement of empty/flat to ports; thereby increasing loaded container traffic in return
  • It is expected to enhance price-competitiveness of Railway vis-a-vis other modes of transport and expand freight basket by capturing new traffic.
  1. Large-scale de-notification of commodities for container traffic
  • As per container haulage charging policy, notified commodities are charged at Container Class Rates (CCR), which is 15% lower than General Tariff Rates (GTR). Rest of the commodities are charged at Freight All Kind (FAK) rates, which are even lower than CCR.
  • Recently, 90 more commodities have been de-notified, which brought down their haulage charge from CCR to FAK rates.

Now, out of total 635 commodities in Goods Tariff, only 38 commodities are under notified/CCR rates (11 of these are POL commodities).

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