Despite Covid challenges, Indian Railways has been able to maintain the high momentum in freight figures in terms of loading and earnings.
A number of concessions/discounts are also being given by Indian Railways to make freight movement through Railways very attractive for transporters for transportation of their goods and parcels.
“With the introduction of these new initiatives, Indian Railways now offers comparatively lower rates than road transportation in an eco-friendly way to freight customers,” said Guneet Kaur, chief public relations officer (CPRO) of Northeast Frontier Railway (NFR).
In this regard, a meeting with about 15 cargo aggregators and logistic service providers was held on Friday at Maligaon in Guwahati, Kaur informed.
Some of the attractive incentive schemes available for transportation of various types of goods through railways which were explained to them by senior railway officials are mentioned below:
Long-Term Tariff Contract (LTTC) scheme: It provides long-term stability and predictability to the freight tariff rates.
Rate will remain fixed for one year agreement period even if Railway increases the freight rates and helps the customer to plan his logistics for the entire year.
It also offers incentives to the freight customer in the form of discounts if the customer exceeds the previous year’s freight contribution.
Traditional Empty Flow Direction (TEFD) scheme: Under this scheme, 15%-20% discount on Normal Tariff Rate (NTR) will be provided from the first RR itself for transporting freight to more than 100 Km distance.
Freight customers need not apply for the scheme as it is calculated by computerized system automatically.
Station to Station Scheme (STS): Under this scheme, concession in the form of percentage discount over normal traffic rate up to a maximum of 30% for incremental traffic and 15% for retention of traffic is allowed if the customer applies for concession.
It is applicable for specific stream of traffic of a particular commodity for movement between a specific pair of originating and destination station.
Round Trip Traffic (RTT) scheme: If a customer commits to offer traffic in the return direction i.e. back to originating station, either from the destination station or from any point within 200 km of the destination station, then traffic for both outward and return traffic shall be charged at the lower the applicable class rates amongst the outward and return direction traffic.
Utilization of Alternative Goods sheds: Terminal charge, which is presently at Rs. 20 per tonne will not be levied from freight customers when freight traffic is handled to and from the alternate nominated goods sheds.
Mini Rake scheme: Mini Rakes with a minimum composition of 20 wagons can also be loaded at Trainload Class rate under certain conditions. Levy of supplementary charges will be applicable depending on distance.
Freight Incentive for Loading Bagged Consignment: Sometimes during peak season, customers don’t get covered wagons for loading commodities like cement, fertilizer and foodgrains.
In such situations, if the customers load these commodities in open or flat wagons, such booking is given a freight discount of 30% across the Railway Receipt (RR) at the time of booking itself.
Incentive Scheme for Freight Forwarders: The scheme enables the freight forwarders to aggregate the cargo and thereby expand the commodity basket of railways. A wagon may be loaded with single or multiple commodities for which trainload rate at applicable class would be charged.
Short Lead Concession scheme: It is applicable for all traffic except “Coal & Coke, Iron Ore, Military Traffic, Rail Material Consignments (RMC) and Container Traffic” and for traffic booked up to 100 km only.
Concession will be given on Normal Tariff Rate (NTR).
Roll on-Roll off (RO-RO) System: This is a service to carry loaded trucks on wagons powered by rail engines in order to decongest roads. Saves cost on diesel and man-days besides reducing pollution.
Goods will be transported in a safe and faster way.
Vyapar Mala Express: It is a special type of Express cargo service where traders can book part of the goods carrying rake as per their requirement or supply order.
Kisan Rail: Under this scheme producers of agro products can transport their produce to consumption centres by availing subsidy. Individual/group of farmers, State Marketing/Co-operative Federation, Co-operative Societies, Food Processor units, Exporter, etc. are eligible.
To know further details about all the above incentive schemes, Freight transporters, Cargo Aggregators and Logistic Service providers can always send e-mail to the Chief Commercial Manager/Freight Marketing (CCM/FM) of the Northeast Frontier Railway at email@example.com