BL reported that the Indian Railway Ministry is close to finalizing a policy to allow container train operators to use private sidings to load traffic. At present, such operators are not allowed to load traffic from private sidings. The Ministry is considering a proposal under which the box train operators may be allowed to pick up such commodities as cement, food grains, chemicals, fertilizers and iron and steel.
As of now, there is lack of clarity on whether these operators can pick up these commodities that have traditionally been loaded in railway wagons. There have been instances in the past when the Indian Railways had introduced rules preventing box train operators from loading heavy, bulk commodities.
The container train operators have been pursuing with the Railway Ministry to receive some benefits similar to the liberalized wagon investment scheme.
Ms Mamata Banerjee Railway Minister had announced in the Rail Budget that the Ministry would formulate a policy to allow container operators access private sidings.
The Ministry had unveiled the LWIS in 2008 to attract investments into rolling stock and long-term incremental traffic in bulk and heavy commodities such as cement and chemicals. Under the LWIS, a bulk commodity user of the Railways is required to invest in special wagons and sidings and, in turn, get freight concessions of 12% to 15% for 20 years.
The container train operators said that as they also make long term investments in rolling stock they should also be allowed the benefits extended under the LWIS.
The operators claim that the draft policy, in its current form extends fewer benefits and will not make a feasible business case for them. Under the proposed policy, by moving a commodity through container train operators, the Railways earns almost 35% to 40% more revenue than what it would earn from a player moving the same commodity under LWIS.
In the new policy, which is under finalization, the Railways proposes to let container train operators access private sidings and offer a 10% concession on the freight charges which is lower than the 12% to 15% concession offered under the LWIS. Also, unlike in the latter scheme, the Railways has not specified the duration for which the discount will be offered to the operators. The operators want clarity on this too.
(Sourced from http://www.steelguru.com/news/index/2009/09/14/MTExNTg4/India_Railways_forming_policy_for_use_of_private_siding_by_box_trains.html)
Sunday, September 13, 2009
India Railways forming policy for use of private siding by box trains
0 comments:
Post a Comment