Logistics

Discounts to spur cement traffic

P Manoj | Updated on July 25, 2021

With the concession, the Railways hopes to achieve consistency, stability in rates

The Ministry of Railways has decided to grant concession on normal haulage charge per twenty-foot equivalent unit (TEU) for movement of empty specialised tank containers used for transportation of bulk cement, in a move aimed at encouraging shipment of the product by rail.

The concession will be given when such specialised tank containers are moved in one direction fully-loaded and returns empty. The concession will be valid for five years beginning August 1, the Ministry of Railways said in a circular issued on July 16.

The extent of concession on normal haulage charges for transportation of empty containers will be 50 per cent in the first year, 40 per cent in the second, 30 per cent in the third, 20 per cent in the fourth and 10 per cent in the fifth year.

To illustrate, for loaded movement of specialised containers from A to B, the applicable normal haulage charge will be levied. Concession will be given for empty return movement from B to A.

If these specialised containers move on any other route, normal haulage charge (without discount) for empty/loaded containers will be levied.

The Ministry of Railways said that the concession is being granted “as a special case” to provide “consistency and stability in rates” to encourage customers to offer bulk cement traffic to rail.

Currently, bulk cement (cement in loose form) when transported in tank containers is billed on haulage charge per TEU basis, according to a rate circular issued in November 2017.

On April 28 this year, the Ministry announced a 5 per cent discount on the prevailing haulage charge per TEU for movement of loaded containers and 25 per cent discount on movement of empty containers and empty flat wagons till April 30 next year.

Indian Railways said that tank container for bulk cement movement should be designed, manufactured, tested and inspected according to provisions applicable to ISO containers.

Published on July 25, 2021

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