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Cut in terminal access charges, haulage charge payment mode key issues

Mamuni Das

New Delhi, July 5 Assuring container train operators that it would look into their demands, the Indian Railways (IR) has asked them to submit their proposal seeking reduction in terminal access charges. IR, however, struck down the demand of these operators to continue the earlier system, wherein they were not required to pay any terminal access charges.

Railways also said that it would try and address the issue regarding the instrument to be used for haulage charge payment, according to sources. Container operators have demanded that they be allowed to pay haulage charges by way of cheque. At present, the Railways accepts demand drafts only from the new container operators. This process makes operations quite cumbersome for these firms.

This is because the operators have to go to the goods-shed, get the containers weighed, calculate the haulage charges and pay the charges to the goods clerk. “Since we have some idea of the total weight of boxes, but are not very sure of the exact volume, we end up going to the goods clerk with various denominations of demand drafts so that we can make the payment soon and pave the way for moving the rake,” said an official of a container operating firm.

With Container Corporation of India (Concor), the Railways follows a different “rolling payment mechanism,” wherein Concor pays haulage charges by cheque in advance for every fortnight based on the traffic trends. It then reconciles the funds with the Indian Railways in subsequent payments. However, given that the new container operators do not handle such huge traffic volumes, they pay haulage charges on a per train basis.

Pointing out that the Railways charges about Rs 250 per twenty feet equivalent unit (TEU) container from Concor for boxes handled on railway land, the entrants in the sector said that the charges that the Railways proposes to levy are several times higher than Rs 250 per TEU.

According to rough calculations by the operators, they could end up paying Rs 2,500 per TEU by way of terminal access, ground handling and detention charges — if they were to follow the proposed Railway guidelines.

The Railways recently issued guidelines firming up its procedures and rates for letting container operators access its terminals (good sheds, sidings and unused tracks). These operators would have to pay terminal access charges of Rs 34,000 per rake per terminal.

Additionally, the operators would have to pay detention and ground handling charges on a per hour per rake basis, if they use the terminals beyond the allowed free time limit. The guidelines were supposed to have come into effect from July 1. Prior to this circular, the private container operators were not required to pay any access charges for using the railway terminals — they just needed an approval from the divisional or zonal railway manager.

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