The Hindu Business Line : Rlys may not meet container operators' demand

Rail container operators may find it very difficult to get their much-demanded assurance from Indian Railways on a one-time hike in haulage charges per year.

The Railways collects haulage charges for letting operators use its infrastructure such as tracks and signalling system. Thus, haulage charges are a cost element for the operators.

Railways hiked haulage charges on its own and during the last two years, the charges were hiked mid-year and at times twice a year as well. So, container operators wanted certain predictability in this aspect and had sought an assurance from Railways in the model concession agreement being drafted.

Railway Board sources recently told Business Line that this demand would be difficult to meet as container operations account for just two per cent of Railways' freight business.

"Railways doesn't give that kind of guarantee (of hiking the haulage charges once a year) to any of its customers. On what basis would we extend that guarantee to the container operators," the sources said.

Even the container operators are unlikely to extend similar assurances to their customers, pointed out the Ministry sources. "Would the container operators assure their customers that they would hike the transportation tariffs only once every year? Then how can they expect that kind of an assurance from Railways?" asked the sources.

In November 2004, the Railways had increased the charges by 15 per cent. In April 2005, they were further hiked by five per cent and again in November 2005, the haulage charges went up by 15 per cent.

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