NFR introduces attractive incentive schemes to boost freight traffic

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Despite Covid challenges, Indian Railways has been able to maintain the high momentum in Freight figures in terms of loading and earnings. A number of concessions / discounts are also being given by Indian Railways to make Freight movement through Railways very attractive for transporters for transportation of their goods and parcels.

  • With the introduction of these new initiatives, Indian Railways now offers comparatively lower rates than road transportation in an eco-friendly way to freight customers. 
  • In this regard a meeting with about 15 nos Cargo Aggregators and Logistic Service providers was held yesterday at Maligaon.

Some of the attractive incentive schemes available for transportation of various types of goods through railways which were explained to them by senior railway officials are mentioned below:

  • Long Term Tariff Contract (LTTC) scheme: 
    • It provides long term stability and predictability to the freight tariff rates. 
    • Rate will remain fixed for o­ne year agreement period even if Railway increases the freight rates and helps the customer to plan his logistics for the entire year. 
    • It also offers incentives to the freight customer in the form of discounts if the customer exceeds the previous year’s freight contribution.
  • Traditional Empty Flow Direction (TEFD) scheme: 
    • Under this scheme 15% to 20% discount o­n Normal Tariff Rate (NTR) will be provided from the first RR itself for transporting freight to more than 100Km distance.
    • Freight customers need not apply for the scheme as it is calculated by a computerized system automatically.
  • Station to Station Scheme (STS): 
    • Under this scheme concession in the form of percentage discount over normal traffic rate upto a maximum of 30% for incremental traffic and 15% for retention of traffic is allowed if the customer applies for concession. 
    • It is applicable for a specific stream of traffic of a particular commodity for movement between a specific pair of originating and destination stations.
  • Round Trip Traffic (RTT) scheme: 
    • If a customer commits to offer traffic in the return direction i.e. back to originating station, either from the destination station or from any point within 200 kms of the destination station, then traffic for both outward and return traffic shall be charged at the lower the applicable class rates amongst the outward and return direction traffic.
  • Utilization of Alternative Good sheds: 
    • Terminal charges, which is presently @Rs. 20/- per tonne will not be levied from freight customers when freight traffic is handled to and from the alternate nominated Good sheds.
  • Mini Rake scheme: 
    • Mini Rakes with a minimum composition of 20 wagons can also be loaded at Trainload Class rate under certain conditions. 
    • Levy of supplementary charges will be applicable depending o­n distance.
  • Freight Incentive for Loading Bagged Consignment: 
    • Sometimes during peak season, customers don’t get covered wagons for loading commodities like cement, fertilizer and food-grains. 
    • In such situations, if the customers load these commodities in open or flat wagons, such booking is given a freight discount of 30% across the Railway Receipt (RR) at the time of booking itself.
  • Incentive Scheme for Freight Forwarders: 
    • The scheme enables the freight forwarders to aggregate the cargo and thereby expand the commodity basket of railways. 
    • A wagon may be loaded with a single or multiple commodities for which Train Load rate at applicable Class would be charged.
  • Short Lead Concession scheme: 
    • It is applicable for all traffic except “Coal & Coke, Iron Ore, Military Traffic, Rail Material Consignments (RMC) and Container Traffic” and for traffic booked upto 100 kms o­nly. 
    • Concession will be given o­n Normal Tariff Rate (NTR).
  • Roll o­n-Roll off (RO-RO) System: 
    • This is a service to carry loaded trucks o­n wagons powered by rail engines in order to decongest roads. 
    • Saves cost o­n diesel and man-days besides reducing pollution. 
    • Goods will be transported in a safe and faster way.
  • Vyapar Mala Express: 
    • It is a special type of Express cargo service where traders can book part of the goods carrying rakes as per their requirement or supply order.
  • Kisan Rail: 
    • Under this scheme producers of agro products can transport their produce to consumption centres by availing subsidy. 
    • Individual/group of farmers, State Marketing/Co-operative Federation, Co-operative Societies, Food Processor units, Exporter etc are eligible.

Source: North East Frontier Railway-Press Release | Image Credit (representational): MoR

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