By TIOL News Service

NEW DELHI, MAR 31, 2013: THE Ministry of Railways has decided to rationalize haulage charges for containers transported by rail in privately owned wagons; the resultant reduction in haulage charges is expected to catalyse rail borne container traffic at a time when growth, both globally and domestically, is stunted.

In the modified tariff structure, which takes effect from 1 st April 2013, the share of traffic moving in 40 feet containers, which is growing ‘fleet' particularly in case of EXIM traffic, has been reckoned for the first time; the resultant reduction in the haulage rates of 10 T to 20 T loaded containers is 5 %.

Additionally, the linkage of haulage rates of empty containers and flats to the haulage rates for 20 feet containers (single deck) in the 0-20 tonne weight slab @ 65% and 60% respectively) has been reintroduced, which has resulted in the reduction in haulage rates of empty containers and empty flats by 13% in each case.

The net impact of the aforesaid rationalization as assessed at average lead of container traffic is summarized in the following Table.

Haulage rates in the case of loaded containers in other weight slabs, viz. upto 10T, 20T to 26T and more than 26T are not impacted either way by the proposed rationalization.

In the prevailing context of slow economic growth both domestically as well as globally, it is expected that the aforesaid reduction in haulage rates would help Container Train Operators (CTOs) in augmenting their competitive edge. The consequent increase in traffic volumes would be to the mutual benefit of the CTOs as well as Indian Railways.

In another related notification, Ministry of Railways in response to several representation, has decided to allow 25% concession in the Haulage Rate circulated vide Ministry of Railways Rates Circular No. 34 of 2012 (and as amended from time to time) in the case of containerized fruits and vegetables traffic sponsored by the Ministry of Agriculture and / or its National Horticulture Board. This scheme has taken effect from 15.03.2013 and is valid upto 14.03.2014.

In response to requests made by Container Train Operators, Ministry of Railways has also decided to permit felspar (or Feldspar) which is a mineral, to be transported in containers as a specific exception, this permission has come into effect from 19 th March 2013. This new traffic is expected to further spur growth in rail borne container traffic.