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 catalyze rail borne container traffic at a time when growth both globally and domestically, is stunted.
In the modified tariff structure, which takes effect from April 1st 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 in the 0 to 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.
Weight Slab
Average Lead
Existing Rate w.e.f. 01.02.13
Proposed Rate w.e.f. 01.04.13
Variation
(in fans)
(in Rs. per TEU)
(in Rs. per TEU)
(%)
10 T to 20 T
1200
16526
15638
-5%
Empty Containers
10742
9324
-13%
Empty Flats
9916
8607
-13%
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 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 in the case of containerized fruits and vegetables traffic sponsored by the Ministry of Agriculture and its National Horticulture Board. This scheme has taken effect from March 15th 2013 and is valid upto March 14th 2014.
In response to requests made by Container Train Operators, Ministry of Railways has also decided to permit felspar which is a mineral to be transported in containers as a specific exception this permission has come into effect from March 19th 2013. This new traffic is expected to further spur growth in rail borne container traffic.
Ministry of Railways maintains continuous dialogue with CTOs as part of a well defined and institutionalized mechanism. The slew of recently launched initiatives is expected to further strengthen the existing foundations of a sustainable win win situation for Indian Railways and the Container Train Operators