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Indian Railways takes series of Initiatives in Tariff and Non-Tariff field to boost Freight Operations

Indian-Railways-takes-series-of-Initiatives-in-Tariff-and-Non-Tariff-field-to-boost-Freight-Operations

* Series of Discounts offered

* The initiatives taken in Tariff field includes discount on loaded containers, Pond ash/ Moisturized ash (Open wagon), Withdrawal of surcharge of two point/mini rakes (for Cement, Iron and steel, Food grains, Fertilizers), Round trip Traffic (RTT) policy, Long lead concession & Short lead concession

* Discounts range from 5% to 50%

* In spite of Covid related restrictive challenges, Freight loading in the month of August 2020 (till 27th August 2020) is 4.3% higher, compare to last year for the same month

On mission mode, Indian Railways has taken a number of initiatives to boost Freight Operations in spite of COVID 19 related challenges. Because of these initiatives, the freight loading in the month of August 2020(till 27th August 2020) is 4.3% higher, compare to last year for the same month. In the month of August 2020 (till 27th August 2020) the total freight loading was 81.33 million tonnes which is higher than last year for the same month (77.97 million tonnes).

Indian Railways has taken a series of initiatives in Tariff and Non-Tariff field.

Utilizing Covid period as an opportunity Indian Railways substantially increase the speed of Freight Trains. 72 % increase in average speed of Freight Trains in the year 2020-21 as compared to last year. 94 % increase took place in speed of Freight Trains in August 2020 compared to August 2019.

*Following are the latest Tariff Rationalization initiatives (measures) taken by Indian Railways to boost Freight Operations:

1. 5% discount on loaded containers (addition to 25% on empty) for Containers from 03.08.2020.
2. Discount for Pond ash/ Moisturized ash – Open wagon – 40% for Power plants, Cement from 03.08.2020.
3. Revision in classification of Industrial salt from 120 to 100A for Chemical Industry from 03.08.2020.
4. Stabling charges for private Container and Automobile trains waived off till 31st October 2020 for Containers and Automobile from 03.08.2020.

*Following are some other Tariff Rationalization initiatives (measures) taken by Indian Railways to boost Freight Operations:

1. Withdrawal of Busy Season charge – 15% for all sectors Except Coal, Iron ore and containers from 1.10.2019.
2. Withdrawal of 5 % surcharge of two point/mini rakes for Cement, Iron and steel, Food grains, Fertilizers, Bulk BOG from 1.10.2019.
3. Discount for Fly ash – Bagged in open wagon – 40% for Power plants, Cement from 10.05.2020.
4. Alternate terminal scheme – Rs 56,000 to Rs 80,000 per rake for all sector from 27.06.2020.
5. Round trip Traffic (RTT) policy – charging of lower class for all sectors from 01.07.2020.
6. Long lead concession – 15 to 20% for Coal, Iron ore and Iron and steel from 01.07.2020.
7. Short lead concession – 10 to 50 % for all sectors (except coal and iron ore) from 01.07.2020.

*Following are latest Non-Tariff initiatives (measures) taken by Indian Railways to boost Freight Operations:

1. Two point unloading permitted for Automobile traffic for Automobiles sector from 05.08.2020.
2. Limit on number of Co-users in Private siding removed for all sectors from 18.08.2020.
3. All private sidings / Good sheds / Private freight terminals opened up for Parcel traffic for Parcels from 18.08.2020.
4. Reduced composition for Indented parcels extended till 31.03.202 for Parcels from 18.08.2020.
5. Extension of time tabled parcel express till 31.12.2020 for Parcels from 19.06.2020.
6. Application fee for Greenfield PFT reduced from Rs 10 Lakh to Rs 20,000 and completely waived off for conversion of siding to Brownfield PFT for All Sectors from
24.08.2020.
7. 23 more two point combinations opened for steel traffic for Steel sector from 25.08.2020.
8. Freight and parcel helpline through 13 for all sectors from 26.08.2020.
9. Distance restriction on Mini rakes of 1500 km removed with a small surcharge for Cement, Iron and steel, Food grains, Fertilizers, Bulk BOG from 27.08.2020.

*Other Measures taken by Indian Railways to boost Freight Operations are as follows:

1. Business Development Units (BDUs) set up – Divisions, Zones and Board level.
2. Restrictions on co-use of private sidings removed – 1,079 private sidings allowed to become private freight terminals effectively.
3. 405 Major Good sheds being improved – Concrete surface, bright LED lighting, better roads & labor facilities – To enable 3 shift operations.
4. Time tabled parcel trains.
5. Opening up of export traffic to Bangladesh for Parcels, Containers & Automobile.
6. Kisan rail introduced from Devlali (Nashik) to Danapur (Patna) on 07.08.2020– Multiple stoppages, multiple commodities, Multiple parties – Now extended to Muzaffarpur. Link train from Kolhapur to Manmad also added. Now Bi-weekly from 24.08.2020. Total 04 trips have been completed till Now.

Utilizing Covid period as an opportunity Indian Railways substantially increase the speed of Freight Trains. 72 % increase in average speed of Freight Trains in the year 2020-21 as compared to last year. 94 % increase took place in speed of Freight Trains in August 2020 compared to August 2019.

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