The Hindu Business Line : Railways urges user industries to commit long-term traffic

THE Ministry of Railways has asked its users from the petroleum industry to commit long-term incremental traffic if they require benefits from the Railways in terms of reduced freight rates and other charges.

"A task force has been constituted that would reconsider freight charges levied on POL transportation. However, while you are seeking benefits from the Railways, do let us know the incremental traffic that would accrue to Railways provided these benefits are given," said a senior Railway Ministry official.

Meanwhile, officials from various oil companies have called for increasing the loading/unloading time and reducing the demurrage charges for wagon usage, among others.

The Railways has initiated a series of dialogues with major user industries such as cement, petroleum products, iron and steel, iron ore, foodgrains, and automobile."Empty flow direction has been clearly defined in Railway terminology and user industries are advised to come up with suggestions in respect of freight rebate desired for incremental traffic offered by them," said another official.

Meanwhile, a release said that though the Railways carried a record load of 600 million tonnes in 2004-05, an estimated 80 box covered wagon rakes remained unutilised, thereby idling precious transport capacity.

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