Freight_Incentives_ease_of_doing_Business.pptx

LATEST FREIGHT INCENTIVE -
EASE OF DOING BUSINESS ON IR

To promote economic activities in the country, Indian
Railways has taken a number of freight policy
initiatives.
Relaxations have been provided by slew of
incentives.
Business Development Units have been set up at
Board level, Zonal level and Divisional level.
Board level: Formulate Policy and approve
proposals of Zonal Railways.
Zonal Level: Retain the existing traffic and create
more volumes/revenue and forward proposals to
Board received from customers/Divisions.
Divisional level: Create & Promote Business through
interacting with Business entities and Marketing.
POLICY INIATIVES

ON IR Rs.1,41,116 Crores Against Target 1,45,275 Crores
2021-22

Passenger Revenue of
Rs 39,104 Crores against Target of
Rs 44,375 Crores.

2. SUNDRY EARNINGS
Rs. 6,020 Crores 2021-22
against Target of Rs 7,000
Crores .

Rs. 4,888 Crores in 2021-22
against Target of Rs 5,000
Crores

73.83
%
20.46
%
2.56
%
3.15
%
Rs.1,91,128Crs
SUNDRY
EARNING
S

The following are the freight incentive
schemes
Traditional Empty Flow Direction -
LR-1 concession- 20 & 15%
Loading of Bagged Consignment in Open and
Flat Wagons.
(Cement-30%, Fly Ash-40%)
Freight Forwarders Scheme.
FREIGHT INCENTIVE SCHEMES

TRADITIONAL EMPTY FLOW DIRECTION (TEFD)
• Railway Board’s Corrigendum No.5 to Rate Circular No.13 of 31-3-2022
Validity from 01-04-2022 to 31-03-2023.
• To reduce empty run ratio on IR and to garner additional revenue to
Railways.
• Automatic rebate through computerised FOIS system.
• Notified streams on TEFD shall be based on flow of empties between
divisions in case of intra - zonal traffic and between notified divisions of
other zones in case of inter – zonal traffic.
• Traffic under TEFD can be booked from end to end or from any terminal of
the originating division of empty flow stream to any intermediate terminal in
the direction of empty flow stream.
• Permitted wagons
a. Open – BOXN group, pure BOST rakes.
b. Covered –BCN and BCNHL group
c. Flat wagons and mixed steel rakes – BRN group, BOST group and
CONCORD.

TRADITIONAL EMPTY FLOW DIRECTION (TEFD)
• Concession under TEFD i.e., Inter-Zonal and Intra-Zonal traffic.
• Percentage of concession under TEFD - 20% or 15% on NTR of
applicable Class rate subject to floor limit of NTR of Class-100.
• Restricted Commodities:
Iron Ore (all types)/Coal & Coke/Chemical Manures/
POL traffic/RMC traffic/Military traffic/Commodities under
Class 100 & 100A and less than LR-1.
• Lead restriction
• Short lead traffic of less than or equal to 100 kms shall not be
eligible under this scheme.
• Minimum offer of traffic shall be half rake of –
- BCN/BCNA/BCNAHS -10; BCNHL – 10; BOXN Group – 29
• Traffic booked under this scheme shall not be rebooked, diverted or
given delivery short of destination.

FREIGHT INCENTIVE SCHEME FOR LOADING OF BAGGED
CONSIGNMENT IN OPEN AND FLAT WAGONS
• Railway Board’s letter No. TCR/1078/2015/05/Pt. Dated 20.10.2016 vide
Rates circular No. 27 of 2016.
Objective
• To garner additional volume of traffic and revenue by granting incentive to
customers for loading of bagged consignment.
Incentives
Commodities % discount
on NTR
Cement, china clay, al types of Chemical manures (except rock phosphate),
foodgrain, De-oiled cake, soap stone powder, Hydrated lime, Quick me,
Lead/Zinc concentrate, Bentonite powder, Soda ash, Chalk powder, Calcite
powder, calcinated bauxite, marble chips and Caustic soda
20%
Fly Ash, Urea 30%
In cases, when more than one bagged consignments are clubbed/loaded in open wagon or
flat wagons, the applicable freight discount to that consignment may also be granted on pro-
rata basis subject to fulfillment of all other terms and conditions.

FREIGHT INCENTIVE SCHEME FOR LOADING OF BAGGED
CONSIGNMENT IN OPEN AND FLAT WAGONS
• Floor Rate - Minimum chargeable freight after all concessions should
not be less than NTR of class-LR1.
• Permitted terminals - All terminals including ports.
• Lead restrictions - Not less than or equal to 100 km
• Concurrent Freight Concession - 6% concession to and from North
Eastern States would be applicable on the discounted NTR under this
scheme.
• Conditions
• Commodities should only be loaded in standard bags of up to a maximum of 100 kg
• Tarpaulins, if any, for covering the wagons should be provided by the consignor at
their own cost.
• Consignor will be required to furnish an undertaking on the Forwarding Note giving
their consent to loading in open wagons and to the effect that they would bear full
risk for damage/pilferage of the consignment.
• Supply of wagons for loading under the scheme will be subject to operational
feasibility

FREIGHT INCENTIVE SCHEME FOR LOADING OF FLY ASH
• Railway Board’s letter No. TCR/1078/2015/05/Pt. Dated 03.08.2020 vide
Corrigendum No. 1 to Rates circular No. 09 of 2020
Objective - To generate additional loading of Fly Ash and to ensure improved
utilization of rolling stock
Incentives shall be granted to fly ash
• Conditions
• In case of bagged fly ash, it should be packed in uniform bags of standard
size.
Type of stock Rate of concession or applicable
class
Packing conditions
A Open & flat
wagons
40 % concession or applicable class Bagged or bulk /
loose
B Flat wagons 40 % concession or applicable class Bagged
C Covered wagons To be charged at NTR of class LR1 Bagged

FREIGHT INCENTIVE SCHEME FOR LOADING OF FLY ASH
• In case of loading of loose fly ash, customer must ensure hydrating the fly
ash and covering the wagons with tarpaulins at its own cost.
• Tarpaulins, if any, for covering the bagged fly ash in open wagons should be
also provided by the customers at its own cost.
• The customer will be required to furnish an undertaking on the forwarding
note giving their consent to loading of bagged fly ash in open and flat
wagons and to the effect that they would bear the full risk of damage /
pilferage of the consignment.
• Permitted terminals - At all terminals
• Concurrent concessions :
• Freight concession granted to North East region shall be concurrently
available.
• When transported in TEFD stream, the lower of the two NTRs shall be
charged.
• For purpose of Long Term Tariff Contract (LTTC) scheme, the revenue
actually paid to IR shall be taken in AGFR (Actual Gross Freight Revenue)

FREIGHT INCENTIVE SCHEME FOR FREIGHT
FORWARDERS
Rly Bd’s Lr No. TCR/1078/2014/02 dated : 16.06.2015 (RMC/FIS/2015/0)
Objectives
• The scheme aims to facilitate cargo aggregation and thereby expand the
commodity basket on Railways.
• 2.2.1 Restricted Commodities -The following commodities are restricted under the
scheme :
o Coal and all its variants including washed coal and imported coal
o Coke and all its varieties inluding Metallurgical, Petroleum and imported coke
o Iron ore,
o POL
o Traffic moving in privately owned wagons (including OYWS and WIS /LWIS wagons) such as
Cement in bulk in loose, foodgrain in bulk in loose caustic Sda, LPG, Ammonia, Phosphoric
Acid etc, availing freight concession under any other scheme.
o Traffic loaded in Ports
o Container Traffic
o Military traffic,
o RMC
o Marine Gypsum.

FREIGHT INCENTIVE SCHEME FOR FREIGHT FORWARDERS
• 2.2.2. Further, in case of wagons loaded with more than 2 commodities, following shall
not be permitted - All types of ores and minerals, Cement, Food grain, Chemical Manures,
Iron and steel.
• Floor rates : Minimum Chargeable freight after all concessions should not be less than NTR of
class LR-1
• Permitted terminals : Goods sheds
• Lead restrictions : Minimum 700 kms
• Permitted Wagons : Covered, BOXN, Flat wagons
• Concurrent Freight Concessions : 6% concession applicable to traffic loaded to
and from North East states will be permitted concurrently with this scheme.
• Concurrent concessions will be given one after the other on the discounted NTR.
No of wagons Restrictions Freight Rate
A Individual wagons loaded
with a single commodity
Any number
of wagons
As per para
2.2.1
Trainload rate for each wagon for the
commodity loaded
B Individual wagons loaded
with 2 commodities
Any number
of wagons
As per para
2.2.1
Trainload rate for each wagon for the
higher class of 2 commodities loaded
C Individual wagons loaded
with more than 2
commodities
Not more than
10 wagons
As per para
2.2.1 & 2.2.2
Composite class rate of 120

Liberalized Special Freight Train Operator
Scheme (12% for 20 years)
Automobile Freight Train Operators.
General Purpose Wagon Investment Scheme
(10% for 15 years)
Wagon Leasing Scheme
WAGON LEASING SCHEMES

 Long Term tariff Contract scheme for Traffic in
Incremental or Retention or Both.
One MT eligibility, retention – 5 MTs.
 Station to Station Scheme.-max 30%
 Merry-Go-Round Scheme.
 Terminal Development Scheme.-no terminal charges
 Engine-On-Load Scheme.- one year
 Roll – On – Roll – Off Scheme.
 Private Freight Terminal- Rs.20/- per tonne
OTHER SCHEMES

STATION TO STATION RATES SCHEME (STS)
• Railway Board’s Rates Circular No.15 of 2022 dt. 03-06-2022.
• Concession will be granted only on the incremental traffic over and above
the benchmark NTKM on yearly basis.
• Applicability - Specific stream and commodity.
Stock - Block rake, Two/Multi-Point Rake, Mini Rake.
• Excluded commodities:
(a) All commodities with classification below Class-100,
(b) Commodities under Main Commodity Head “Coal & Coke”,
(c) Iron ore (all types),
(d) Military traffic, POL and RMC.
• Maximum percentage discount - 30%.
• Agreement shall be for a period of maximum 3 years not less than one
year.

STATION TO STATION RATES SCHEME (STS)
• Concession in freight rates under STS shall be applicable to a specific
stream of traffic of a particular commodity for movement between a
specific pair of originating and destination stations/points.
• It shall ensure that grant of concession under STS between any O-D pair
should result in the overall increase in the NTKM of that station/cluster
for that commodity rather than diversion of existing traffic from the
adjoining areas.
• Concession under STS shall be applicable to cluster of stations also. The
cluster of stations is defined as stations/points within close proximity to
each other with a maximum distance between any two stations/points
not exceeding 150 km. The spirit behind the policy is that traffic of one
station should not divert to another station to get the benefit under STS.
• Benchmark NTKM is defined as average NTKMs of corresponding periods
of previous 12 months. The agreement shall become effective from the
first day of the following month.

• Railway Board vide Rates Circular No.27 of 2020 dt.23-10-2020 –
Validity from 24-10-2020 to 31-10-2022
• Objective – To reduce empty run – To offer traffic in return direction back to originating
station either from destination station or from any point within 200 Kms.
• Restricted commodities –
Iron Ore / Container Traffic / POL / Military Traffic /
RMC & Automobile traffic / Traffic below NTR of Class-100.
• Benchmark – Monthly average of commodity NTKMs achieved in previous 24 months or
commodity NTKMs in the same month of previous year whichever is higher. Benchmarks
are commodity as well as direction (onward and return specific).
• Charging –
Outward traffic Class 150 – Inward Class 160 – Charging will be at Class 150;
Outward traffic Class 150 – Inward Class 140 – Charging will be at Class 140 less
difference of freight between Class 150 and Class 140.
Outward and Inward traffic Class is same – Charging will be done at 10% less than the
Class.
For Coal & Coke – concession is capped at equivalent to 10% of applicable class of freight.
ROUND TRIP TRAFFIC CONCESSION (RTT)

Long Term Tariff Contract
• Eligibility Criteria-The Customer willing to come under this scheme of LTTC, shall be
eligible only if he/she is already loading or giving traffic of at least one Million
Tonnes per annum (outward or both outward & inward as the case may be as per
the agreed terms) in the previous year as defined above.
• The Agreement shall not be for less than 3 years and shall not be extended for
more than five years in total.
• The customer entering into Agreement with Railways under this scheme shall
provide Minimum Guaranteed Gross Freight Revenue (MGGFR) with a
commitment to increase the freight revenue from the existing level.
• MGGFR for each year should increase by minimum 5% annually. This means that
MGGFR for first year should be at least 5% more than Actual Gross Freight
Revenue (AGFR) of previous twelve months. MGGFR of the second and the third
year should be at least 5% more than the MGGFR of the preceding year.
• For calculating AGFR, either the freight received from outward traffic or sum of
inward and outward freight traffic of the Customer from its various terminals/
sidings/ plants shall be reckoned.
• The percentage of rebate shall be based on the incremental growth in AGFR over
and above the Benchmark Gross Freight Revenue (BGFR). From second year
onwards, MGGFR of preceding year committed by the customer at the time of
signing the Agreement shall become the benchmark GFR and the rebate shall be
granted on the incremental growth over and above this BGFR.

Long Term Tariff Contract
• Under the scheme, the customer shall be offered a fixed
freight rate as prevalent (at that date) during the beginning of
the each year of the agreement period. Increase in freight
rates mid-way in a year shall not be passed on to the
customer for that year of the agreement period.
• The change will be effected from the beginning of next year
of the agreement. The impact of freight increase on AGFR,
the MGGFR and BGFR of that year will be adjusted.
• Rebate in case of Retention of Traffic: Under this policy, the
rebate shall also be granted on retention of traffic at the same
level as of the previous year’s AGFR. The Companies who are
already carrying a very high volume of traffic on rail and
offering a huge amount of GFR, a certain percentage of rebate
shall also be offered to such Companies on the absolute GFR
offered by them, for retention of traffic, if they enter into a
Contract with Railways.

Liberalised Special Freight Train Operator
Scheme(LSFTO)
1. Applicant should be registered under Companies Act, 1956
or subsidiary company or joint venture company or public
sector undertaking.
2. Minimum one rake to be procured under this scheme.
3. To be operated on approved circuits. However, permitted to
access Railway owned Goods sheds and Private Freight
Terminals with approval of PCCM and PCOM.
4. To apply to Railway Board for procurement of rake.
5. On receipt of approval from Railway Board, Agreement to
be entered within six (6) months and procurement of rake
within two (2) years of approval
6. Maintenance of wagons will be undertaken by Indian
Railways at Railway’s own cost.
7. For Special purpose Wagon rates, 12% rebate will be
granted for 20 years.

Liberalised Special Freight Train
Operator Scheme(LSFTO)
8. In case of high capacity wagons, additional freight rebate of 2%
may be granted provided throughput of this rake is above 10%
than normal rake.
9. The customer applies online on “ Freight Business Development Portal”
for procurement of Special Purpose rakes to ED/FM or CCM/FM of
concerned Railway.
10. On receipt of application and verification of documents, Railway Board
approves for procurement of rakes. The rakes or procured through
Wagon Leasing company or from manufacturers.
11. After procurement of rakes, an agreement is executed between the
customer & Railways and notification issued mentioning the closed
Circuits, wagons numbers, percentage of concession, period of
concession and other valid relevant details.
12. This agreement is valid for 35 years, or till the period the rakes are
operational whichever is earlier or this may be renewed.
13. On completion of 20 years , the freight will be collected without
extending concession.

• (FREIGHT MARKETING CIRCULAR NO. 05 of 2013
No. 2012/TC(FM)/18/21 dated 07-03-2013)
• The objective is to improve the utilization of the rolling stock, and
help the customers in prompt clearance of freight trains from their
sidings/ terminals.
• Under the ‘EOL’ operations, the train engine will remain available
during loading or unloading operation in the siding and wait on
Railway’s account so as to work the train immediately after
loading/unloading operation is completed.
• The siding owners will be required to opt for the EOL operations
under an agreement with the zonal railway and Free time for
loading and unloading operations under the ‘EOL’ will be lower
than the normal free time so as to minimize detention to the
wagons and the waiting period of the locomotives.
Engine-On-Load Scheme

Engine-On-Load Scheme
• The benefits to the customer are:
• exemption from Engine Hire charges such as engine use by
siding within free time of loading / unloading ,
• Exemption from Siding Charges (For the bulb type sidings
freight will be charged on the basis of through distance up to
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) and
• in Multiple-Plant Sidings where one siding is serving
different plants , even if one plant is covered under EOL
scheme the siding will get benefit EOL scheme with no cost
of Railway staff to the siding .

AUTOMOBILE FREIGHT TRAIN OPERATOR
(AFTO) SCHEME
• (Freight Marketing / Master Circular / AFTO / 2021/ 0 No. 2017/TC(FM)/4/12dated 26- 10
– 2021)
• “AFTO’ means Automobile Freight Train Operator and the parties who invest in procurement
of rakes and arrange traffic for loading/unloading in the Auto Freight Trains (AFT).
• The policy provides an opportunity to logistics service providers and road transporters to
invest in wagon and use advantage of rail transport to tie up with end users and market train
services to create a win-win situation for railways and themselves.
• Automobile traffic includes passenger cars, two /three wheeler automobile units, mini
trucks, tractors, chassis, shells of cars, automobiles moved in CKD condition.
• AFTO has to induct a minimum of one rake including brake van with 4% additional wagon
spare, shall operate from a base terminal and for this a base depot for wagon maintenance
will be nominated.
• These wagons are maintained by IR.

AUTOMOBILE FREIGHT TRAIN OPERATOR
(AFTO) SCHEME
• AFTO train is free to move over IR system between terminals, private or owned
or railway terminals open for automobile traffic.
• This agreement is valid till the codal life or till the period the rakes are
operational.
• The Freight Rates (for loaded and empty separately ) as notified from time to
time for the specific stock shall be applicable for such traffic moving in
automobile rakes.
• Even if one wagon is loaded, the full rake shall be charged as loaded.
• After a fully loaded run with automobiles, back loading shall be permitted with
automobile verticals i.e. auto ancillaries and auto spare parts at the per wagon
load rates for BCACBM.
• Procurement of wagons for induction under this policy will allow only prior
administrative approval of MOR.

Private Freight Terminal Scheme (PFT)
• (Freight Marketing/ Master Circular/ PFT 2015/ 0No. 2011/TC(FM)/14/14
Dt.02.01.2015).
• TMC is solely responsible for ownership of land or lease, license or any
other arrangement under which private land is proposed to be used for
development of a PFT.
• Crew resting and canteen facilities may be provided.
• The cost of commercial staff (who oversee loading / unloading activities)
such as one staff per a shift to be borne by TMC.
• PFT would be permitted to book and handle all traffic excluding coal and
coke under ‘C’ priority. Outward loading of coal and coke under ‘D’ priority
is allowed. However, PFT may be permitted to handle outward iron ore or
iron pallet traffic from PFTs on payment of additional fee of Rs 5 crore by
the PFT owner.
• All types of wagons, parcel vans, containers and Privately Owned wagons
plying in IR system are allowed to operate in PFTs.

Private Freight Terminal Scheme (PFT)
• Freight booked from PFT is pre-paid and all
“Commercial and Operating rules” including free time
as applicable in a Goods shed for booking, supply and
delivery of goods are also applicable.
• Freight or haulage charges on traffic booked from and
to a PFT will be charged based on through distance.
• PFT has to install its own in motion Electronic
Weighbridge.
• Maintenance of Track portion within the Railway
boundary from the Take-off point shall be borne by the
TMC.
• Terminal Charges of the consignments booked to the
PFTs are refunded in the succeeding month (@ Rs 20
per tonne both for inward and outward traffic).

GENERAL PURPOSE WAGON INVESTMENT SCHEME (GPWIS)
(FREIGHT MARKETING MASTER CIRCULAR GPWIS/2018/0 No.
2018/TC(FM)/04/01 dt 26.04.2018)
• Wagons which can carry multiple commodities without any
specific approval from MOR (already approved by RDSO for
fitness) like BOX, BOXN, BCN etc. are called General Purpose
Wagons (GPW).
• The period of agreement for each rake will be for the codal life of
the specific stock as specified at the time of induction of the rake
by the Ministry of Railways.
• Party has to run minimum of one rake with 04 % spares and Brake
Van.
• The rakes inducted shall not be merged in IR’s pool of wagons and
will be distinctly indicated through a colour scheme.
• Maintenance of Wagons will be undertaken by IR on payment as
per agreement to be executed with the wagon owner and
maintenance depots will be decided based on the circuits.
• Based on the commodity flows, various Zonal Railways would be
clubbed into Groups for each type of rolling stock.

GENERAL PURPOSE WAGON INVESTMENT SCHEME (GPWIS)
• The Empty Return Ratio (ERR) for the stock originating and terminating
within such a group of the zones would be calculated and only those circuits
will be approved where the ERR is at par or better (i.e. ERR is less) than the
benchmark ERR for the said group of zones.
• The rakes procured will operate between private sidings/ terminals or
Private Freight Terminals (PFTs) or Inland Container Depots (ICDs) or Ports
or Mines equipped to handle the traffic for which GPWIS end users must
have a tie-up with such private sidings/terminals, PFTs, ICDs, Ports, Mines or
own its private terminals/sidings for handling of such wagons.
• They can also operate in Railway goods shed subjected to operational
feasibility and payment of Terminal Access, Demurrage, Ground Usage,
Wharfage and stabling charges.
• A rebate of 10% shall be given on the base freight on each loaded wagon.
Such rebate shall, however, be ordinarily for a period of 15 years subject to
a cap to the extent of the lease charges payable by IR to IRFC for
procurement of rolling stock.

Round the Clock Working
Delegation of Powers to Division for introducing
“Round the Clock Working”.
 The working hours and business hours of all railway
terminals is 06.00 to 22.00 hours.
 DRM may introduce the “ round the clock working” on
case to case basis for possible improvement in wagon-
turn-round.
 DRMs may ensure basic facilities like drinking water,
toilet, resting, wharf, sufficient lighting, approach road
and other required facilities while introducing round
the clock working.
 Goods sheds giving higher volume of traffic and
revenue may be taken up on priority basis so as to
optimize expenditure.

CONCESSIONS AND DISCOUNTS GRANTED
Short-Lead Concession of 10% to 50% granted
to all traffic, except coal and iron-ore (upto 100
Kms).Extended upto 30.06.2023
0 to 50 Kms-50%,
51 to 75 Kms-25%,
76 to 90Km 10%.
Terminal Access Charge Concession (50%)
granted at Group III terminals for Container Train
Operators, i.e., Rs. 80,000/- at Group III Goods
Sheds.
15% discount on Empty Haulage Charged for
empty Containers respectively.

STEPS TO INCREASE EASE-OF-DOING
BUSINESS WITH RAILWAYS
Online payment system for freight charges – Railway Rates Circular No.18 of 2021
dt.30-04-2021 – Effective from 01-06-2021.
-This is done by enabling on the web an option for payment of various charges to the
customer.
-Online payment through Freight Business Development(FBD) portal via SBI’s payment
gateway –
-Online payment system through FBD shall be available 24 x 7.
-All kinds of freight transactions, such as wagon registration fee, demurrage, wharfage,
siding charge, shunting charge, Rebooking charge, Diversion charge, etc.
-Customer to get registered in the FBD portal.
-Any transaction in favour customer will be intimated through mail/message.
- On receipt of the same, Customer will log on to the FBD portal for making payment On-
Line.
- Customer can make payment through Credit card, Debit Card, RTGS, NEFT etc.
-The On-Line payment can be made within two hours of receipt of the mail/message.
-In case, Customer unable to make On-Line payment within two hours for reasons unknown,
can switch over to traditional payment, i.e., through Demand Draft.
- the Second digit of RR will be 8 for On-Line payment.
-On successful payment made, message is received in FOIS at the location for generation of
RR.

 Business Developmental Portal launched for freight
customers for making online tracking of consignments,
online FBD Portal.pptx applications for waiver of
demurrage/wharfage charges/ stacking permission/
procurement of rakes etc.
 Registration of demand for wagons electronically (e-
RD).
 Electronic Transmission of Railway Receipt (eT-RR).
 Online interface to Freight Customers to provide
requisite information.

 Mini-rakes are permitted without any distance restriction. However, surcharge is
levied -
5% - 0 Kms to 1000 Kms,
7.5% - 1001 Kms to 2000 Kms
10% - Beyond 2000 Kms
Valid upto 30-06-2023 – Railway Board’s letter dt.30-6-2022.
 Two point combination (originating and destination Terminals) enhanced to 500
Kms extended upto 30.06.2023 and levy of 5% surcharge - Railway Board’s
letter dated 30.06.2022.
 Lower limit relaxed to 10 wagons in case of covered stock to target piecemeal
traffic in Traditional Empty Flow Direction – Valid upto 31-3-2022.

 Non-levy of Terminal charges at Unloading point at notified
alternative Goods-sheds instead of Busy Goods-sheds –
Railway Board’s Rates Circular No.14 of 2020.
 In order to de-congest busy Goods sheds, Alternate Goods
sheds are identified in and around the Busy Goods sheds
and Railway Board notifies Alternate Goods sheds.
 The traffic originating/terminating at these Alternate Goods
sheds are exempted from pay Terminal Charges to
encourage freight customers to use Alternate Goods sheds.
 On SCR, for
 Karimnagar (Busy) the Alternate Goods sheds are
Sultanabad, Ligampet jagityal & Gangadhara
 Nizamabad (Busy) the Alternate Goods sheds are
Kamaraddi, Bodhan & Dicchipalli.

 Incentive for Loading Bagged consignment in open and flat
wagons – Concession 20% for Cement – Corrigendum No.3 to
Rates Circular No.27 of 2016.
 Revised Penalty for overloading – Punitive charges for
overloading at other than originating station will be levied from
originating in the load adjustment point. – Corrigendum No.2 to
Rates Master Circular Weighment/2019/0 dt.16-9-2020. Earlier
punitive charges were levied from originating to destination
irrespective of point of detection.
 No limit for number of Co-users at Private Sidings. Siding owner
may permit multi co-users and inform the zonal railways atleast
seven working days in advance. – Railway Board’s Freight
Marketing Circular No.17 of 2021.
 Wagon Load rates revised to 10% of the Train Load Class with
effect from 15-04-2021 – Railway Board’s Rates Circular No.09 of
2021 dt.25-03-2021.

 Maintenance charges are collected for the Track portion within the Railway
boundary from the Take-Off point for Private Sidings and PFTs. Now, Board vide
Freight Marketing Circular No. 11 of 2021 amended the following:
 New Sub Para 8(a) (iii) added-The railway administration may permit Private Siding
owners to maintain track within the Railway land through approved consultants, on
party’s request and at party’s cost. In such cases, no maintenance charges shall be
levied on private siding owner.
 8(b) (iii)- for arriving at equated track length of a private siding, fraction up to half a
kilometer shall be treated as half a kilometer and fraction above half a kilometer
shall be rounded off to the next kilometer for the purpose by taking track
maintenance charges for the portion of siding outside railway boundary.
 However, for the portion of siding within the Railway boundary, fraction upto 100
metres shall be trated as 100 metres and fraction above 100 metres shall be
rounded off to the next 100 metres.

Debit/Credit system in case of private siding.
 Whenever a customer is able to handle wagons in less than
permissible free time resulting in earning of credit hours, the credit
hours so earned will be adjusted to the extent of 100% against the
debit hours:
 The adjustment will be done on monthly basis across same type of
stock and type of operation: loading or unloading.
 Demurrage charge will be levied on the basis of net debit hours.
 No refund will be admissible for credit hours.
 It will be applicable to those customers giving 01 MT traffic per
annum.
 Interested customer may approach PCCM to avail the facility of
Debit/Credit system.

Introduction of premium indent:
 The scheme shall be optional.
 In sidings, the customer can indicate a date of supply of
rakes and also indicate whether he will load if the rake
is supplied after due date on Normal tariff rate.
 The customer shall be required to 15% premium on
normal tariff which shall be deposited in advance. If
the rake is supplied later than the indicated date on the
indent, the premium paid will be adjusted against the
normal freight.
 Premium indent once placed cannot be withdrawn.
Withdrawal of the indent shall invite forfeiture of the
premium paid.

• Speed of freight trains almost doubled
compared to last year.
• Extending concessions and discounts
• De-congesting the Terminals
• Increase ease-of-doing business with
Railways.
• To attract smaller than train-load
traffic.
STEPS TAKEN BY IR TO BRING EASE IN
TRANSPORTATION THROUGH RAIL

No restrictions on booking of freight to any
of the goods-sheds or terminals.
Alternate Goods-Shed Policy launched to
decongest busy goods-sheds (no Terminal
Charges levied)
Private Freight Terminal and Private Siding
policies liberalized.
No limit on Co-users in Private Sidings.
STEPS TO DECREASE CONGESTION AT
TERMINALS

NEED
Faster release of rakes
Avoid detention to rakes
Better turnaround of wagons/rakes
Cordial relation and interface with freight
customers
Increase in tonnage and freight revenue
Increase in terminal capacity
Create value added service
DEVELOPMENT OF GOODS-SHEDS

TYPES OF GOODS-SHEDS
 Group – I – More than 12 rakes per
month.
Group – II – 07 to 12 rakes per month
Group – III - Less than 07 rakes.

Railway Board vide Freight Marketing Circular
20/2020 dt.14-10-2020 issued guidelines for
“Development of Goods-shed through Private
Investment”. Salient features are as under:
Introduction
To increase its freight business volumes as well as
model share.
Augmentation of line capacity and terminal capacity
through private participation.
By allowing for setting up of new goods- shed facilities
& developing existing goods-sheds at larger number
stations .

THROUGH PRIVATE INVESTMENT
Scope of facilities permitted.
Applicable for setting up of new Green-field
Goods-shed .
And can also be applied for developing of
existing Brown–field Goods-shed as
decided by concerned Zonal Railway.

Developing Green-Field Goods-shed
Private parties are permitted to develop
loading/unloading facilities for full rakes.
Approach roads
Drainage
General Lighting
Covered Shed (If required)
Facilities for labour (Resting space with
shade, drinking water, bathing facilities
etc)

Other Infrastructural facilities at Green–Field
 Laying of additional line for handling traffic should be included in
scope of work including electrification of the line with any
signaling changes.
 Creating facilities for handling container traffic can be included
under the scheme.
 All the facilities developed shall be used as common user
facilities
 Should not in any way hamper or obstruct existing rail users.
 Construction shall be as per the guidelines in Annexure II of
Railway Board circular on ‘Development of Freight Terminals’
vide letter no 2007/PL/25/I dated 05.06.2007

Developing Brown-Field Goods- sheds
Private parties are permitted to repair/
re-develop and maintain existing facilities &
also set up additional facilities.
Approach roads
Drainage
General Lighting
Covered Shed (If required)
Facilities for labour (Resting space with shade,
drinking water, bathing facilities etc)

Tenure
 Five (10) years from date of completion of work
Incentives
 Share in the Terminal Charges(TC) & Terminal Access
Charges (TAC).
 TC & TAC to be paid 10th succeeding month.
 Utilization of available space for establishing small
canteen/tea-shop, advertisements etc by the private party
during the currency of contract.

Conditions stipulated for Developers:
 No priority or preference granted to the traffic of the
party over the traffic of other customers.
 Responsibility for maintenance of assets and
facilities vested with party during agreement period.
 The facility and assets so created shall be handed to
Railways and no claim to these facilities /assets.
 Development of facility will be as per approved
Railway designs, standards and specification.
 Freight, Demurrage and Wharfage charges will be
applicable.

Procedure for allotment of contract:
 Through Open bidding
 Short listing of stations by Sr.DCM & Sr.DOM with
approval of DRM
 Facilities to be developed at these Goods shed
shall be mentioned in the bid document
 Bids shall be invited separately for each Goods
shed
 Contract will be awarded with lowest share in TC
and TAC

FUNDS FOR
 Requirement for maintenance of Goods-sheds (Group-wise) per annum:
- Group – I - Rs.30 to Rs.50 lakhs
- Group – II - Rs.20 to Rs.30 lakhs
- Group – III -Rs.10 to Rs.15 lakhs
 Possibility of getting funds under Plan Head 5300 (Passenger Amenities) for
“Development of Goods-shed” is not possible to the extent it is required.
 Need of the hour that a new Plan Head in the name of “Goods Terminal Facilities”
should be created and substantial funds should be made available for maintaining
this important customer interface to best standards for facilitation of customers, to
reduce the detention to rakes and generating additional revenues to Railways.
 Railway Board has been requested for creation of Plan Head for “Goods Terminal
Facilities” on par with “Passenger Amenities” for developing standard
infrastructures at Goods-sheds and also maintenance of existing Good-shed
Terminals as its targeted to double our freight loading and proportionately
increasing freight revenue.

THANK YOU
STAY SAFE & STAY HEALTHY

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