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Freight Marketing

INTRODUCTION

Indian Railway, the lifeline of the nation sustains the Indian economy by transporting over 500 million tones kilometers of freight every day and transported an all time high of 600 million tones during 2004-05. The massive growth in freight has been absorbed by upgrading technology and through innovations in operational techniques and commercial practices. Indian Railways have responded to the resurgence in the economy and are poised to achieve an impressive growth in transportation of freight traffic.

With the winds of change sweeping the Indian economy, the Railway too has adapted itself and innovated numerous schemes and pricing structures to suit the rapidly evolving economic scenario in the country. Accordingly, Indian Railways have introduced various freight incentive schemes and innovative price structure to suit the needs of the valuable customers. 

The major incentive schemes introduced by Indian Railways are listed in this site and we hope that the information would be beneficial to the customers in transporting the raw materials and finished products through Railways. 


FREIGHT CONCESSION FOR SHORT LEAD TRAFFIC

Charging of freight for all commodities booked for very short lead upto 90 Kilometers has been rationalized, through a scheme of graded concessions in freight rates as under:

Distance Slab Freight concession
1 - 50 Kms    50 %
51 ? 75 Kms    25 %
76 - 90 Kms     10 %

TRAINLOAD CLASS FOR ALL COMMODITIES

In order to encourage bulk transportation by railways, all commodities have now been assigned a trainload class, one stage lower than their wagon load class with effect from 1.4.2003.

Trainload benefit for Two-Point Rakes

Earlier, two point rakes were given the benefit of lower trainload rates only upto the common point of movement. It has been decided that with effect from 1.4.2003 each part of two-point block rake will be granted the benefit of trainload rate for their respective actual distances of transportation on end- to- end basis.

  • The Trainload classification for two point block rakes booked to approved combination of stations is made applicable for the entire distance of transportation.

     

  • This Scheme would particularly benefit all the cement and fertilizers units on Southern Railway.

STATION TO STATION RATE (STS):


    • A special reduced rate to attract new traffic and to retain existing traffic. Depending upon the quantum of traffic and the commodity, the concessions vary from 10% to 24%.

       
    • Especially beneficial for customers offering substantial incremental traffic.

       
    • Applicable between pair of stations and for either a consignor/consignee.

       
    • Applicable for Block rakes booked on wagon load/Train load class.

       

May be quoted for minimum period of 3 months and a maximum of 12 months.

 
In the financial year 2004-05, Southern Railway has quoted station to station rates for 14 streams of traffic.
 

How To Apply For Stations To Stations Rate (STS)?


The interested parties may apply to Dy. Chief Commercial Manager/Freight Marketing/Chennai in writing with following details:

  1. Commitment of Quantity with quarterly break-up.

     
  2. Performance in the preceding 3 years by rail, if any

     
  3. Period of movement.

     
  4. Present Road rate with additional handling & secondary transport charges at both terminals if any,
     
  5. Present Rail rate with additional handling & secondary transport charges at both the terminals.

     
  6. Percentage of concession required to move the traffic by rail.


PREMIUM REGISTRATION SCHEME :

Objective :

This Scheme has been devised to meet the demands of the rail users for quick supply of wagons for non-programmed traffic. 
 

Salient features :

  • Applicable to non-programmed traffic covered under the Priority-D traffic.
     

  • Accorded preferences over other traffic, within the same class of priority.
     

  • The consignors opt for the scheme will have to pay freight at two classes higher than the class prescribed for that particular commodity.
     

  • The wagon priority Register will be maintained indicating the higher priority with a sign of ? D+ ? within the same class of priority for indents registered under this scheme.
     

  • This scheme will be effective for a period of one year from 01.04.2005.


    LIBERALIZED SIDING RULES :

The operation of Indian Railways has undergone a sea change with block rake movement along with mechanization of goods handling. In this background, Railway sidings, which account for nearly 90% of Indian Railway?s bulk traffic, the existing siding rules have been liberalized and the following new guidelines are issued by the Railway Board.

  1. Nodal Agency :-

  • In order to provide a ?Single Window Service? to the customer, Chief Traffic Planning Manager (CTPM) will be the nodal officer up to construction stage and signing of the siding agreement.
     

  • As soon as the siding is notified for commissioning, CCM (FM) will take over as the Nodal officer.

  1. Time frame :-

  • Railways have fixed the following time frame for processing the proposals :-
     

  • Six months to one year depending on the size of the project where survey is done by the Railway and work is executed under Railway?s supervision.
     

  • When the survey is done by the empanelled consultants and the work supervised by them, the plan should be approved within two months and final approval obtained within four months from the submission of the detailed project report.

  1. Reduction in Overhead charges :-

  • Various charges such as, General, Departmental & Contingencies Charges etc., are reduced substantially. 
     

  1. Capital cost :

  • The siding owner shall bear the cost of the siding from the take- off point including Overhead electrification (OHE) for new sidings.
     

  • The capital cost of all traffic facilities such as, Y-Connection, Additional lines at serving station, crossing station, patch doubling of the section etc., shall be fully borne by the Railways.
     

  1. Cost of Gauge conversion :

The cost of Gauge conversion will be shared by Railways and the siding owners provided the investment made by Railways is financially viable with a minimum ROR of 14% vis-a-vis traffic offered by the siding in the last 24 months. Where it is not financially justified, the siding owner will have to bear the full cost.

  1. Cost of Electrification:
     

  • For a new siding in the electrified territory or the territory approved for electrification, the capital cost of OHE shall be borne by the siding owner. 
     

  • For the existing siding, the cost of electrification will be borne by the Railways subject to certain conditions.

  1. Cost of staff :

  • Railways will bear the cost of all Railway staff barring the cost of one Commercial staff in each shift in all Private sidings other than Engine on Load (EOL). 
     

  • The cost of all staff at EOL siding will be borne by the Railways.

  1. Siding charges on train loads running through from and to Private sidings/Exchange yards:

  • Freight charges shall be levied upto the buffer end of such sidings/yard and no siding charges are leviable. However, if Railway locomotive is used for performing shunting inside the siding, shunting charges for such shunting as per existing rule would be leviable.


ENGINE-ON-LOAD(EOL) SCHEME:

Objective 

In order to improve the utilization of rolling stock and to help the customers in prompt clearance of freight trains from their siding, liberalized ?Engine-on-Load? scheme is introduced. Under this scheme the train engine will remain available during loading or unloading operation in the siding and wait on Railways account so as to work the train immediately after loading/unloading operation is completed.


The salinet features of engine on load (EOL) scheme:

(a) Eligibility:

Sidings which have been notified for charging freight through distance basis will be brought under the ?EOL? Scheme.

(b) Permissible Free Time: 

Free time for loading and unloading operations under the EOL will be lower than the normal free time. The free time under EOL for loading and unloading operations will be permitted as under:-

Type of operation   Free time for bulk commodities   Free time for Bagged consignments  

Loading? All       Types of wagons  

4 Hours

6 Hours

Unloading ?

1.  All Types 0f wagons except BOBRN  

4 Hours

5 Hours

2.  BOBRN Wagons

2 Hours

Not applicable


c) Debit/Credit Hours For Demurrage:

  • A system of debit/credit hours with regard to detention to wagons shall be introduced.
     

  • Debit hours would signify the detention in terms of wagon hours beyond the free time permissible under the EOL.
     

  • Credit hours would signify the wagon hours saved with reference to the free time permissible under the EOL.
     

  • The net debit/credit hours accrued during the month shall be carried forward for the purpose of levying demurrage charges on quarterly basis.

d) Exemption From Engine Hire Charges:

 


If a siding owner requires to utilize the train Engine during loading/unloading of the rake within the free time, the same will be allowed without levying any additional charges. The siding owner may therefore, not be required to maintain a captive engine at his cost under EOL operation.

(e) Exemption From Payment of Siding Charges:

* For the bulb type sidings, freight will be charged on the basis of through distance upto a specified loading or unloading point and not for the entire length of the siding.

* No siding/shunting charges for haulage of wagons within the siding will be leviable under the Engine-On-Load operation. 

(f) Exemption From Cost Of Railway Staff:

The Railway will bear the entire cost of all Railway Staff deployed at the siding operated under the EOL Scheme. 

(g) General

It should be ensured that all arrangements, including timely relief to the train crew, as and when required are made available in EOL siding.


WAGON INVESTMENT SCHEME (WIS)

Objective:
To encourage public - private partnership in procurement of wagons, a new scheme called Wagon Investment Scheme (WIS) has been introduced.

Eligibility
Individuals as producers, corporate entity as producers, association or group like SAIL, Public sector undertaking/Government undertakings are eligible to participate in the scheme for procurement of Railway wagons (BCN & BOXN).

Benefits

  • Assured supply of guaranteed number of rakes every month
     

  • Rebate in Freight for a specified period
     

  • Bonus rakes without concession / penalty
     

  • Additional rakes without concession/penalty to the investors opting for Engine on Load (EOL) scheme.
     

  • No maintenance charges required to be paid.

Procedure

  • Procurement to be done directly from builders approved by the Ministry of Railways as per the Indian Railways Standard (IRS) designs & specifications and inspection.
     

  • Any number of wagons in unit of rake loads can be owned subject to a minimum of one rake and 4% additional wagons.

Salient parameters are summarized as under:

 BCN RakesBOXN Rakes
Freight Rebate10 %10 %
Period of Rebate15 Years10 Years
Period of Rebate4 Rakes per month6 Rakes per month
Bonus: Additional guaranteed no. of Rakes without freight rebate or penalty   
a) without Engine on Load (EOL)2 Rakes per month2 Rakes per month
b) with Engine on Load (EOL)4 Rakes per month4 Rakes per month

INCENTIVES FOR SMALL TRADERS AND RETAILERS

  • In order to encourage a large number of traders and retailers, clubbing is permitted up to 12 consignments, in Broad Gauge 8 wheeler wagon as against the limit of 6 consignments presently. For every additional railway receipt, an amount of Rs.100 to be paid to Railways.
     

  • This scheme meets the long pending of demands of small traders and retailers. Of particular benefit would be to the Fireworks traffic originating from Sivakasi. Also this would benefit small farmers and entrepreneurs of Erode, Coimbatore, Salem areas who are not able to generate wagon loads of Cotton seeds, Coir, etc., individually. 

 

10 % CONCESSION ON TRAFFIC IN OPEN WAGONS

A 10% freight rebate would be offered for Cement & Fertilizer traffic loaded in block rakes in open wagons.

SETTING UP OF RAIL-SIDE WARHOUSING FACILITIES WITH PUBLIC-PRIVATE PARTNERSHIP.

Objective: 

The objective of the project is to provide warehousing to promote inter-modality by providing seamless door-to-door service at competitive price, reducing the cost of secondary transport through provision of warehousing at close proximity to rail facility and other value added services to customers.

1.Who can apply: Any individual firm or corporate entity having Rs.10 Crores turnover per annum with requisite expertise & experience in execution of warehousing project can apply. For Foreign Agencies, an Indian Joint Venture partner will be necessary. 

2. Whom to apply: The application will be submitted to the Chief Commercial Manager of the Zonal Railway(s) concerned.

3. Site for Warehouses: The proposals for warehousing may be considered only at those locations where setting up of such value added facility will result in attracting sufficient additional traffic and sites so identified are agreed to by the Railways. Location will be decided jointly by the service provider and Railways.

4. Provision of land: As the idea of providing warehousing has been conceived to give value added single window system service to the customers at the Railway terminal itself, the land for the warehouse will be provided by Railways. While earmarking such land for warehouse, Railways? own long term future requirement should also be kept in view. The size of the plot shall have a direct relevance with the minimum level of traffic guaranteed.

5. Period of Lease Agreement: The lease agreement will be for 30 years which may be extended further subject to satisfactory performance for a period and on such terms and conditions as maybe mutually decided between the Railways and the promoter.

6. License Fee: As the idea behind the scheme is to increase rail borne traffic and to share the revenues, Railways will charge a nominal land license fee of Rs.1/- per sqr. meter per annum. 

7. Loading/Unloading facilities: Loading/Unloading facilities at the terminal will be developed by the promoter for smooth operations.

8. Free time: Free time for loading/unloading will be as per Railways rules. No wharfage, however, will be levied under the system. 

9. Rail linkage: Railways will provide efficient rail connectivity required to handle traffic. Efficient loading/unloading facilities at the existing rail terminal in proximity to the warehouse will be developed by the promoter for smooth running of the warehouse.

10. Preference to Rail borne traffic: The promoter will be required to give preference to the rail borne traffic. This will be a condition of the lease agreement enjoining the promoter to earmark at least 70% of the warehousing space for rail borne traffic. 

CONTACTS


For further details and information on all above schemes and incentives, please contact any of the following:

1. Chief Commercial Manager, Headquarters Office,
North East Frontier Railway, Guwahati - 11
Ph No. -

2. Chief Operations Manager, Headquarters Office,
North East Frontier Railway, Guwahati - 11
Ph No. -
 

3. Chief Freight Transportation Manager, Headquarters Office,

North East Frontier Railway, Guwahati - 11
Ph No. -

4. Dy.Chief Commercial Manager/Freight Marketing,
North East Frontier Railway, Guwahati - 11
Ph No. -

5. Senior Commercial Manager/Rates, Headquarters Office,
North East Frontier Railway, Guwahati - 11
Ph No. -

6. Senior Commercial Manager/ Marketing & Sales
North East Frontier Railway, Guwahati - 11
Ph No. -




Source : Welcome to North East Frontier Railway / Indian Railways Portal CMS Team Last Reviewed on: 10-02-2011  


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