MULTI DISCIPLINARY ZONAL TRAINING INSTITUTE

Southern Railway

TIRUCHCHIRAPPALLI

PRO Commercial Cum Ticket Supervisor

ADVANCED GOODS THEORY

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 TOPICS INDEX

Page
S.No Topic
No
1 Theory of Rates 1
Claims – Organization, Settlement Of Claim, Power For
2 4
Settlement Of Claim
3 Railway Claims Tribunal 6
4 Consumer Protection Act 1986 7
5 Responsibility of Railway as Common Carrier 8
6 Rules for Public Auction of Goods and Parcels 12
7 FOIS 14
8 e-payment 15
9 eT-RR 16
10 e-RD 17
11 Working of In- motion Weigh Bridge 18
12 Punitive Charges, Load Adjustment 21
13 Dedicated Freight Corridor (DFC) 22
14 Public Private Partnership 24
15 Marketing Organisation 26
16 Station to Station Rates 28
17 Sidings 30
18 Policy On Private Siding 33
19 Dynamic Pricing Policy 40
20 Wagon Leasing Scheme 41
21 Liberalized Wagon Investment Scheme (LWIS) 42
22 Roll On – Roll Off (RO – RO) Scheme 43
23 General Purpose Wagon Investment Scheme (GPWIS) 44
24 Automobile Freight Train Operator (AFTO) 46
25 Liberalized Special Freight Train Operator (SFTO) 48
26 Freight Incentive Schemes (FIS) 52
27 Transportation Products 60
28 Parcel Management System (PMS) 66
29 Parcel Cargo Express Train (PCET) 68
30 Modified Comprehensive Parcel Leasing Policy(MCPLP) 69
31 Merry -Go -Around (MGR) 73
32 Container Rail Terminal (CRT) 76
33 Rail Side Ware-housing Scheme 79
34 Terminal Development Scheme 82
35 Private Freight Terminal (PFT) 85
 Theory Of Rates
Introduction: -

Indian Railways carry about 30000 commodities of heterogeneous variety. These consists
of raw materials, finished products, perishable, goods loose or in bulk and in bags, articles
of high and low value, fragile and dangerous goods, building materials of all kind and
medicines, chemicals and drugs, clothing, footwear and essential food stuffs. In fact, they
directly or remotely enter into the daily existence of the average person.

Therefore, it is a matter complexity to fix the charges of transportation commonly known as

“Rate”. While fixing the same (Rate) various features are taken into consideration to arrive
at a rational rate structure. What is most essential is that there must not be any loss of the
trade, loss of the carrier (Railways), diversion of traffics due to high rate and high profit both
to the trade and transporter. Therefore, various principles are adopted while fixing rate.

Principles:
The commodities are classified duly considering the following factors:
(i) Cost of service
(ii) Value of service
(iii) What the traffic can bear
(iv) Transportation characteristics of the commodity
(v) It’s utility to the society
(vi) National interest

Cost of service:
• It represents the cost of transportation of a commodity from one place to another.
• It is represented in terms of money per tonne.
• Rate fixed must not be less than the freight charges.
• Minimum freight charges must not result in loss in the cost of service.
• It determines the floor or minimum freight charges to cover the cost of service.

Value of service:
• It represents the value to be obtained from the service.
• It is determined by taking the difference between cost (value) at the place of
production and the cost (value) at the place of consumption.
• The difference represents the freight charges to be levied on consignment.
• If the difference shows reverse the commodity shall run by alternative means of
transport.
• The study provides or determines a normal margin of profit
• It also ensures provision of expenses incidental to transport.

What the traffic can bear:

• It is somewhat different from the value of service and cost of service.
• It represents reasonable freight charges on the commodity
• Seller’s market and buyer’s market are taken into consideration.
• It envisages collection of freight charges lower than the cost of haulage in certain
cases -Low rated commodity.

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Other factors:
• National interest:
Commodities i.e. food grains, coal, ore, fertilizers are given lower classification
• Raw materials and finished goods:
Raw materials moving to factories at fixed lower classification so that cost of finished
products is not fixed at higher.
• Transportation characteristics:
Classification done depending upon quantity of goods offered.
• High valve commodities:
Higher classification to high profit yielding commodities.
• Use of commodities:
Use of commodities determines classification.
• Telescopic rate:- According to it, charges for the greater distance proportionately
decreases with the increase in distance.

RATING OF GOODS TRAFFIC

GOODS RATES

CLASS RATE STATION TO STATION RATE SPECIAL RATE

|
WAGON TRAIN
LOAD LOAD

Class Rates
• All commodities are listed under various “Classes” in IRCA Goods Tariff, Part – I, Vol.
– II and denoted by numbers varying from LR3(A) to 200 (Totally 46 class rates)
• Low rated classification: LR3(A), LR3, LR2, LR1 &100A.
• General Classification:100, 110, 120A, 130A, 120, 140A, 130, 140, 145, 145A, 145B,
150, 160,165, 180A, 170, 180, 190, 200.
• Each scale rate having both T/L and WL Rates except 145(A) and 145(B).
• Goods Tariff Part I Vol. II has been rationalized to contain only 25 groups of
commodities-
• 22 commodity groups on ‘General Tariff lines’ & 3 on ‘Low rated Tariff lines‘
• Each group under a main head will have a single uniform class rate except otherwise
specifically provided.
• No commodity shall be charged for a weight less than PCC of the wagon.
• PCC means – Permissible CC or Calibrated CC.
• Motor vehicles in NMG/BCCN and BCACM are charged at NMG class and BCACM
class respectively
• Train load rates are notified in the Goods Tariff.
• Wagon Load rate is Train Load Rate + 10%

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• The rate per tonne for different distances for various classes which are given in the
IRCA Goods Tariff, Part – II are called “Class rates”
• The trainload rates are charged only when the prescribed minimum numbers of
wagon conditions are satisfied.
• Class 100 is the base class & all other classes represent the relative percentages
• If classification is not given in the tariff for any commodity, such commodity will be
charged according to the type of wagon loaded, as follows:
Wagon Class

Covered 150

Open 160

Flat 180

Tank 200

• The class rates apply only when a special rate is not quoted for the commodity.

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 Claims Organization, Settlement of Claim, Power for settlement of claim

Despite various efforts taken to ensure that the goods are delivered without damage,
pilferage, etc. claims for compensation arises. The Railways are responsible to settle the
claims cases up to the satisfaction of the owner of goods as it is an ‘after sale service.’

Hence to maintain the overall image of the Railways, the claims organization under the Chief
Claims Officer has been set up in all Railways. The Claims office functions under the
Commercial Department. The organizational set up of claims branch in Southern Railway
is a follow:

➢ Chief Claims Officer (CCO)

➢ Deputy Chief Claims Officer (Dy. CCO)
➢ Senior Commercial Manager (SCM) - Claims
➢ Assistant Commercial Manager (ACM) – Claims
➢ Commercial Inspectors and Claims Tracers at HQ Level assist the above
claims officials.

Procedure for settlement of claims

• Claims for compensation will be considered only for booked goods for which receipt
is granted.
• The application should reach CCO within 6 months from the date of booking as per
Section 106 of Railways Act, 1989.
• The nature of claim and the amount of claim should also be furnished in the letter

Action taken by Claims office:

➢ Claim is registered in the ‘Claim Register.’
➢ File is maintained for Commodity-wise and Division-wise.
➢ Tracing memo is issued to booking station for booking and dispatch particulars,
Copy of invoice and original forwarding note are also called for.
➢ Assistance from NR cell is sought to trace the goods in case of consignment not
received in full or partially received.
➢ A notice of claim is served on the booking and intermediate Railways to prove
dispatch..
➢ Receipt &Delivery particulars and M&DG report are called for from the destination.
Settlement of claim:

➢ On receipt of M&DG report, the enclosures are verified to repudiate or admit the claim
(Enclosures: Original Railway Receipt, Copy of DD message, Seal cards in original,
joint Survey Report, Transhipment particulars, if any)
➢ In case of repudiation, the Officer should record the grounds in the file and party
should be advised accordingly.
➢ In case of payment, a Claims Inspector should verify the case, which will be approved
by the Officer.
➢ If claim is admitted, necessary pay orders are sent to the party, which can be
encashed at the station mentioned therein.

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 Fixation of Inter-Railway Liability

• In case of non-delivery of goods, booking and despatch particular should be called

for from the booking station together with copy of invoice and original forwarding note.
• In case of damage, deficiency, etc., the remarks in the R.R., DD message, JE/MECH.
Certificate for WT/NWT of the wagon, Delivery remarks and Joint Survey Report
should be examined to determine and decide the settlement.
• Since correct despatch of goods is the responsibility of the booking railway, in case
of misdespatch, the mis-despatching railway will be held responsible.
• Any loss or damage also occurs in misdespatched goods, one-third of the cost should
be borne by the Railway in which the loss/damage occurred.
• If the value of good is more than Rs. 20,000/-, appointment will be made to the
booking Railway and passing railways in proportionate to the distance of the traffic.
• If the value of goods is Rs. 20,000/- or below, the settling railway has to bear the cost
whatever may be the reason for non-delivery of goods, being a conventional practice

Power for settlement of Claim

• The powers delegated to officers for settlement of loss and damage claims as well
as settlement of accident and untoward incidents claims, is as under,
ACM Rs 25000

SCM Rs 50,000

Dy CCM (Claims)/Dy CCO Rs 2 Lakhs

PCCM in HAG /Coordinating Rs 8 Lakhs

Head/CCO

GM Unlimited

Powers of CCO for decreed cases Rs 4 Lakhs

If the amount is above Rs 75,000 or above, Financial Concurrence is must.

Powers also delegated for sanctioning other expenses i.e, interest awarded by court,
legal expenses etc, to any extent in addition to monetary powers mentioned above only
in cases of train accident or untoward incidents as defined under Section 124 and 124A
of the Railways Act, 1989.

5
 RAILWAY CLAIMS TRIBUNAL
Definition:
A claims tribunal has been set up at New Delhi in accordance with the claims tribunal Act 1987
which is required to determine claims against Railway Administration for compensation of loss,
damage, destruction, deterioration or non-delivery of consignment entrusted to Railways for
carriage or for refund of fares or freight or for compensation for death or injury resulting during
Railway accident.
Objectives:
• To avoid protracted litigation in civil courts, since average time for disposal of a suit by the
civil court is 4 - 5 years.
• To give speedy relief to Rail users keeping in view the motto "customer satisfaction".
• To reduce the burden of various civil courts in the country, thereby, giving them more time to
decide more cases speedily.
Composition of railway claims tribunal:
• The claims tribunal shall consist of the following staff:
➢ A chairman
➢ Four vice chairman
➢ Such number of judicial members & technical members as the central Govt. may deem fit.
Qualification of a chairman:
• A person shall not be qualified for appointment as chairman unless he
➢ Is or has been a judge of high court
➢ Or has for at least 2 years held the office of a vice-chairman
Qualification of a vice-chairman:
• A person shall not be qualified for appointment as vice-chairman unless he
➢ Is or has been or is qualified to be a judge of a high court or
➢ Has been a member of the Indian Legal Service and has held a post in Grade-I of that
service or any higher post for at least 5 years
Qualification of a judicial member:
• A person shall not be qualified for appointment as a judicial member unless he is or has
been or is qualified to be a judge of a high court
Qualification for a technical member:
• A person who has adequate knowledge of rules and procedures of, and experienced in,
claims and commercial matters relating to railways
• The chairman, the vice chairman and every other member shall be appointed by the
president. No appointment of a person as a chairman shall be made except after
consultation with the chief justice of India.
Benches:
• The central government has set up 19 benches throughout the country and the members
of these benches will be reviewed from time to time. The following are the benches set
up in Southern/Southern Western Railway:MAS, ERS,SBC
Term of office:
• The chairman, vice-chairman or other members shall hold office of 5 years from the date
on which he enters of his office or until he attains
➢ In case of chairman, 65 years
➢ In case of vice-chairman or any other member, 62 years whichever is earlier.
Procedure and powers of Tribunal:
• The Tribunal shall have the same powers as are vested in a civil court.
Limitations:
• An application for any claim should be filed within 3 years from the date of booking of
parcels and goods within one year of occurrence of accident.
• If the decision given by the Tribunal is against the railways or the party, they can appeal
to the high court and if necessary to the Supreme Court.
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 Consumer Protection Act 1986
• A consumer is one who buys goods or one who hires or avails a service
• In order to protect the interests of consumers against exploitation,
ConsumerProtection Act was enacted in 1986
• Rail transport comes under the purview of this Act.
• Rights of a consumer under CPA 1986:
❖ Right to safety
❖ Right to be informed
❖ Right to be heard
❖ Right to redressal
❖ Right to consumer education
• Redressal set up
❖ District forum
❖ State commission
❖ National Commission
• District forum enjoys the powers of a civil court
• This forum may be approached when the compensation claimed is not
exceedingRs 20 lakh within 2 years of dispute
❖ State commission-20 Lakh – 1Crorre
❖ National Commission->1 Crore
• Powers of District forum
❖ To remove the defect-when a lab points out
❖ To replace goods –w/o defect
❖ To return the price paid
❖ To compensate for loss or injury owing to negligence

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 Responsibility of Railway common carrier(Sec.93 to 104 of RA 1989)

• With effect from 1/1/1962, Railways as “Common Carrier of goods” have assumed the
Common Carrier Liability, when the following conditions are fulfilled.
• Packing of goods is sound and the goods are charged at “R.R.” rate
• As a common carrier, the Railways should deliver the goods to the consignee in the same
condition as accepted at the time of booking.
• When the Railways fail to deliver the goods as above, they are liable to pay compensation
to the owner for any loss, damage, non-delivery ,etc.
As per Section 93 of Railways Act 1989
• Railways is responsible for the loss, damage, non- delivery of goods due to any cause
except when the damage/loss is caused by any of the following reasons:
➢ Act of God
➢ Act of War
➢ Act of Public Enemies
➢ Act of omission or negligence by the Consignor/Consignee or their agents
➢ Arrest, restraint or seizure by legal process
➢ Restriction by Central/State Government
➢ Natural deterioration or wastage in bulk or lose in weight due to inherent defect,
quality vice of goods
➢ Latent defects
➢ Fire, explosion or any other unforeseen risk
• Even in the above cases, to claim immunity from their liability, Railways have to prove
that they have used reasonable foresight and care to prevent the goods from loss,
damage, etc.
• Railways have assumed ‘common carrier liability’ only when goods are in transit.
Termination of Transit:
• The transit commences when the Railway Receipt is issued to the owner or when the
goods are loaded in the wagon in full by the consignor whichever is earlier.
• The transit is considered as terminated,
WHEN ON COMPLETION OF

No demurrage charges incurred

Wharfage free time
Demurrage charges incurred Demurrage free time
Consignments are not to be unloaded by
the Owner (e.g: Parcel & luggage traffic)
• Railways. responsibility as ‘common carrier’ ceases at the time of T.T
• After termination of transit, and upto 7 days, Railways are responsible only as a
“Bailee.” (A Bailee is an ordinary prudent man who would take care of the goods entrusted
to him as his own goods of the same bulk, quantity and value under similar circumstances)
• The Bailee is not responsible for loss or damage or non-delivery of goods provided he has
taken due care of goods as mentioned above.After 7 days from termination of transit,
Railway is not responsible for any loss, damage, etc.

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• After termination of transit, railways have no responsibility even that of a bailee in the
following cases:
* Animals
* Perishables
* Dangerous goods
* Goods on which PCEV charges has been paid
Section 94: Sidings
• In case of loading at sidings the railways is responsible for loss, damage, destruction,
deterioration and non-delivery of goods from the time it has taken over the goods from
the siding owner at inter change point and railway administration is informed in writing.
• In case of delivery of goods at siding, railways is responsible for loss, damage,
destruction, deterioration and non-delivery of goods till it has handed over to the siding
owner at the interchange point and siding authorities were informed in writing.
Section 95: Delay in transit
• Railways are responsible for loss, damage, destruction, deterioration and non-delivery
of goods due to delay in transit because of its negligence or misconduct.
Section 96: Consignment carried on foreign railways
Section 97: Goods carried at owner's risk rate
• Railways are not responsible for loss, damage, destruction, deterioration and non-
delivery of goods in transit at owner's risk rate.
• If the loss etc. is due to the negligence / misconduct of railway staff, railways is
responsible for loss damage, destruction, deterioration and non-delivery of goods
• When railways fails to give correct reason for the loss, damage, destruction,
deterioration and non-delivery of goods. It is the responsibility of owner to prove that
railways are at fault. Burden of proof lies with the owner. However railways should
disclose how the goods are dealt with, when the goods are in the custody of railways.
Section 98: Defective packing condition
• Railways are not responsible for loss, damage, destruction and non-delivery of goods
offered in defective packing condition/improperly packed
• Railways should prove that the loss, damage, destruction, deterioration and non-
delivery of goods is due to defective / improper packing condition.
• Railways should also explain what extra precautions the Railways have taken in case
of carriage of defectively packed goods.
Section 99: Responsibility after termination of transit
• Railways is responsible as bailee for the period of 7 days after the termination of transit
• It does not assume even bailee's responsibility for goods booked at owners risk rate
expect upon proof of negligence of railways.
• Railways shall not be responsible for loss, damage, destruction, deterioration and non-
delivery of goods for any consignment, after the expiry of a period of 7 days after the
termination of transit.

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Section 100: Luggage
• Railway is responsible for loss, damage, destruction, deterioration and non-delivery of
goods carried in brake van.
• Railways is not responsible for loss, damage, destruction, deterioration and non-delivery
of goods booked with owner, unless it is proved that it is due to the negligence of
railways.
Section 101: Live stock (Animals)
• Railway is not responsible for loss or injury to any animals due to fright (fear),
restiveness of the animals or due to overloading of animals.
Section 102: Exoneration from responsibility
• Railways is not responsible for loss, damage, destruction, deterioration, and non-
delivery of goods due to mis-declaration or frauds practiced by the customers, improper
loading or unloading by consignor/consignee, riot, civil commotion, strike, lockout or loss
of particular market.
Section 103:Extent of Monetary Liability and Prescription of Percentage Charge
Rules,1990 (PCEV – Percentage Charge on Excess Value)
• The Railways have limited their extent of liability for payment of compensation towards
loss or damage of goods vide Section 103 of Railways Act, 1989 as follows:
❖ In respect to baggage, up to Rs. 100/- per kg.
❖ In respect to goods other than baggage, up to Rs. 50/- per kg.
❖ In respect to animals as per the limit prescribed under Schedule– I of the above
rules.
❖ Elephants - Rs. 6,000/- per head
❖ Horses - Rs. 3,000/- per head
❖ Horned cattle or Camels - Rs. 800/- per head
❖ Dogs, Donkeys, Goats, Pigs,
Sheep or other animals or Birds - Rs. 120/per head
• If any consignor likes the Railways to accept more liability than the above limits, he should
declare the value of his goods in the forwarding note and pay an additional charge called
“Percentage Charge on Excess Value.”
• If PCEV charges are paid, the liability of the Railways will be extended to the value
declared by the consignor.
• The Railways liability is determined on the basis of actual weight of goods only,
irrespective of the method of charging except in case of animals.
• PCEV charge must be pre-paid at the time of booking.
• The goods on which the PCEV charges are collected should be packed in such a manner
that they are not likely to be damaged if fairly handled.
• Packages containing valuable goods should be packed and sealed in such a manner that
any tampering could be easily detected. The packages may be sealed with station seal
and the sender’s private seal.
• SMs are authorized to accept PCEV for goods of value up to Rs. One Lakh.
• If the value of goods exceeds Rs. One Lakh, the PCEV be accepted only on permission
from Sr. DCM.
• If PCEV charges are paid, the freight charges must be levied only at R.R. Rate.
• The PCEV charges should be calculated only on excess value.
10
• It is collected subject to a minimum of Rs.2/-and a maximum of 1% of the excess value.
• No maximum PCEV charge is prescribed for animals/birds.
• The consignor must declare the value at the time of booking and pay the PCEV charge,
wherever due for Articles of special value listed under Part – I of Schedule– II of the above
rules.
• Rates of PCEV charge:
• Schedule I -Animals Re.1/- per Rs.100/- or part thereof per160 km or part thereof.
(Min:Rs.2/- No max. prescribed)
• Schedule – II (Part – I):
Description of Goods Rate of PCEV charge
❖ Gold 13 paise per Rs. 100/- or part thereof
❖ Silver per 160 km. or part Thereof
❖ Pearl (Min Rs.2/- Max.1% of Excess Value)
❖ Precious Stones
❖ Jewellery
❖ Scooter or Motorcycle
❖ Currency Notes and Coins other than
Government treasure
❖ Government stamps and
❖ Stamped paper other than Postal stationery
• Schedule – II (Part – II):
Goods other than those specified in Part – I above @ 25Paise per Rs. 100/- or part thereof
per 160 km. or part thereof. (Min Rs.2/- Max.1% of Excess Value)
• Section 104: Goods carried in open wagons instead of covered wagons
• Goods may be carried in open wagons instead of covered wagons with the consent of
the owner for loss, damage, destruction, deterioration and non-delivery in such cases;
the responsibility is equally shared between railways and owner.

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 Procedure Of Public Auction

• Station masters have been empowered to dispose of lost property, unclaimed packages /
consignments of value upto Rs. 5,000/- by public auction.
• Consignments above Rs.5, 000/- should be disposed of by authorized officers.
• Unclaimed consignments are to be disposed of by parcel office / goods shed at their
respective stations in public auction.
• Consignments / packages, which are useful to departments, should be first offered to
departments on valuation, duly collecting credit notes to the extent of value and when they
are not required for their use a letter to this effect should be obtained.
• Arms and ammunition, explosives and other dangerous goods, intoxicating drugs, opium,
drugs etc., should be handed over to the concerned department viz. military, excise
department etc.
• A monthly programme of the auctions at various places should be drawn up and a public
notification is to be issued through newspapers for the purpose of wide publicity.
• Co-ordination with accounts branch to be maintained so that the auctions are held in the
presence of representatives of the accounts department.
Procedure for conducting auction:
• Commercial inspector should ascertain the current market price of the articles.
• If the packages contain a copy of trade invoice, the price given therein can be adopted.
• In case of standard items of popular brand, market price can be obtained from the
authorized distributors / whole sale dealers in local market.
• In respect of non-standard items, reasonable market price should be fixed keeping in view
the rates in newspapers or rates to be ascertained from reputed manufacturers and
merchants.
• While fixing the reserve price for articles in sound condition, reduction of about 20% of the
verified market price of articles of almost similar nature should be allowed.
• If articles happen to be in damaged condition, a further reasonable reduction in reserve
price consume rate with the condition of the article should be made.
• Commercial inspector should submit his proposal in regard to fixation of reserve price of
the articles to be sold in public auction. The concerned authorized officer to conduct
auction will finally fix the reserve price.
• The fixation of the reserve price should be done well before the date of auction and
information about the reserve price should be kept confidential.
• In respect of machines, electrical goods, scientific instruments, sophisticated imported
articles etc assistance from technical officers / staff of railways should be taken in fixing
the reserve price.
• In case of goods of special nature, the value of which cannot be easily determined, opinion
of an out side expert may be sought if railway administration considers such a step is
necessary.
• The competent authority may sanction the expenditure on outside expert’s opinion.
• In disposing the articles in auction, care should be taken to observe whether any ban is
restrictions are imposed by the local authorities of the state / central governments on the
sale of the commodity as well as any regulations regarding control prices etc.
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• The notice of auction sales should indicate brief description of the articles proposed to be
sold by public auction. The description of costlier and imported articles should be in
greater details.
• The sale list should contain the full description including weight of the articles put to
auction and bear signatures of the official conducting the auction.
• Before starting proceedings, names and addresses of every bidder should be noted on a
sheet of paper. Bid sheets of auction should be preserved for record. The names,
addresses and signatures of three highest bidders should be obtained and kept on record.
• In case the reserve price of any article is not bidden in first and second auctions, the
officer authorized to conduct the auction could be empowered to dispose of a particular
article at a price upto 20 % below the reserve price.
• If it so happens that the bid even upto 20 % below the reserve price is not obtained, in
such exceptional cases, articles could be sold in auction even at a lower price with the
approval of the commercial officer at the appropriate level.
• All papers relating to fixation of reserve price, sale list and bid sheets should be kept in
safe custody by the staff concerned.
• No articles / consignment should be disposed off by accepting tenders without conduction
public auction.

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 Freight Operations Information System (FOIS)
• Working of Goods shed is computerized by CRIS which is known as Freight Operation
Information System.
• In this system work related to operations, yard management, and commercial working
is computerized.
• FOIS comprises of 2 modules -
➢ Rake Management System (RMS)
➢ Terminal Management System (TMS)
• Rake Management System (RMS): - This system include works related to Operating
department like yard management, operation of goods trains etc. which is fed by
Trains Clerk (TNC) or employees of Operating Department.
• Terminal Management System (TMS): - This system includes work related to
commercial department, which is fed by employees of commercial department. It is as
under: -
➢ Demand Registration.
➢ Commercial Placement.
➢ Inward number taking.
➢ Preparation of Railway Receipt.
➢ E-payment.
Benefits: -

• It easily provides all information to management.

• No error in calculating freight due to computerized system.
• Less possibility of wagon being unconnected
• Every person gets instant, correct and uniform information
• The probable time of arrival of the goods on the terminals can be known.
• Helps in preparing various types of statistics such as WTR, NTKM etc.
• Customers can take appropriate action by planning in advance for loading or
unloading of goods.
• Less staff is required. Reduction of stationery costs.
• Good services can be provided in low operating costs.
Freight Business Development portal

FOIS has developed Freight Business Development portal wherein facility for
uploading application by customer for various freight activities like stacking
permission, diversion, rebooking, short of destination delivery, wavier of DC/WC,
STS etc have been provided.

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 Guidelines for electronic payment system
• This scheme provides a facility to rail users to make payment of freight charges directly
from their Bank account to Railway’s bank account to electronic means.
• Any rail customer having regular to business with railways may apply to PCCM of ZR on
which the booking station is located.
• It will be sole discretion of railway administration to accept or reject a request for e-
payment of freight charges.
• A tripartite agreement/ quadripartite agreement will be entered into by the Railway,
Nationalized/ Public Sector Bank having approved accreditations with Railway and the
customer/authorised handling agent incorporating the provisions of this guideline and
details of all other arrangements required for operating the e- payment system.
• LC / BG mentioned is designed to be a security to enable railways to issue paid e-RRs
even in case in which no positive electronic confirmation is received by railways about
the freight charges having been transferred from the customer’s bank account to
railway’s bank account.
• Customer intending to opt for e-payment facility will be required to open an irrevocable
Letter of Credit (LC) in favour of Railway at a branch of bank mutually agreed upon by
the customer and ZR for an amount equivalent to two days of average freight of the
highest transaction month of the last financial year.
• In case of new customer or customer whose freight transaction for whole of the last
financial year is not available, the amount of Letter of Credit(LC)/Bank
guarantee(BG)may be decided in consultation with associate finance on the basis of
traffic offered /expected.
• The LC /BG should be valid for 12 months from the date of commissioning of the facility
with a provision permitting encashment up to 15 days after the validity period of LC, if
required.
• Under this scheme, the goods clerk will give a command to the system to prompt the
bank for collection of freight charges through e-payment system. The bank on receipt of
such advice through TMS will collect funds from the customer’s account and
electronically credit the same to Railway’s account during business hours or at the start
of the next business day if such transaction takes place after close of business hours.
• Normally, a request from FOIS to the bank for electronic payment will be responded
within 150 seconds .
• After successful collection of the requisite amount, the bank will communicate its
confirmation in an encrypted form including all booking details.
• At the loading point, TMS will display a message confirming successful completion of
transaction. TMS will permit issue of Paid e RR.
• Whenever there is no confirmation of transfer of fund is received from the bank due to
technical/network failure etc and when bank sends a message of insufficient fund, then
also Pais e RR will be issued up to the total amount of LC/BG.
• E payment system will be 24x7 on all days of the year.

15
 Electronic Transmission of RR (eT-RR)
• eT-RR has been launched to provide paperless transaction system where Railway
Receipt is generated and transmitted electronically to customer through FOIS, and
even delivery of goods is given through e-surrender of eT-RR.
• This facility has been extended to container traffic, Freight Forwarders, Iron & Steel,
Iron Ore, Salt and Granite traffic.
• eT-RR should be opted while registering e-RD
• Each Goods Clerk is given a separate User ID & password
• On completion of loading and collection of freight charges, eT- RR is generated
• eT-RR captures the name and designation of the Goods Clerk
• As and when eT-RR is generated, a system generated FNR no. is sent to the
customer on e- mail/SMS
• Delivery allowed to the customer on showing the transaction slip and eT-RR on
mobile/Tablet/laptop to the goods clerk.
• When more than one RR is issued for a rake, combination of e TRRs and normal RRs
is allowed as per the choice exercised by customer.
• Zonal Railway may allow change of consignee name in the Forwarding Note until
preparation of Railway Receipt except in case of traffic pertaining to Bangladesh.
However, number of Forwarding Notes cannot be changed.
e-Surrender by Consignee FOR

Delivery Rebooking Diversion

Transaction Slip with Consignee should submit Consignee should submit
Transaction ID generated. transaction slip and e-TRR transaction slip and e-TRR
Printout Printout
TMS Popup Enter transaction ID and
Enter transaction ID in TMS
(Consignee should submit complete Diversion process
and complete Rebooking
transaction slip and e-TRR with Diversion order
process.
Printout)
Obtain sign in Delivery Book
System message sent to
and enter and enter transaction ID e-TRR issued.
TMS/Originating station
in TMS

Delivered in TMS Super sessional e-TRR

issued.
“Successful Delivery” message sent
to consignee

16
Registration of demand for wagons electronically (e-RD) through FOIS web portal

• The scheme of e-RD provides facility to rail users to register demand for
wagons electronically through FOIS Web portal.
• Electronic registration of indent for wagons is mandatory for all kinds of traffic
except (i) Military Traffic, (ii) Relief materials for natural calamities, disasters
etc(iii) any traffic for which PCCM may permit in emergent situation including
force majeure.
• Customer have pre-register themselves by uploading self-attested documents
and indicate choice of their Division on the E-Demand module on the FOIS
website www.fois.indianrail.gov.in.
• Sr. DCM will download the documents and complete the process of registration
within 7 days.
• The customer is given a User ID and a password by SrDCM
• Then, demand can be registered atwww.fois.indianrail.gov.in by filling e-
demand note
• On collection of WRF through online payment facility, demand no.,
Forwarding Note number& priority class are displayed to the User
• On completion of loading, the e-Demand customer or their agent will show the
e-Forwarding Note and the document received by them in acknowledgement of
successful registration of demand on their mobile/laptop/tablet to the Goods
Clerk.
• Unless and until, the e-Forwarding Note and the document are shown to the
Goods Clerk, RR shall not be prepared for that e-Demand in FOIS Application
• For sponsored traffic, programme, approval of COM/CFTM is required.
• e-RD is applicable to traffic originating from one station/siding by a single
consignor.
Cargo Aggregrators:
• They have to register itself as Cargo aggregators by depositing one time non-
refundable security deposit of One Lakh rupees through online payment mode.
It has to register separately for each division.
• Indent will be placed for a standard Rake or a Mini rake composition
• If details of all Forwarding notes are not available while registering e-RD,
registration is allowed on a single forwarding note. Only CG customer can place
multi-consignor demand.
• If already registered ,change of commodity upto 20% of the wagon indented
may be permitted.

17
 Working of In motion Weigh bridge and upkeeping of its paper
• At the time of submitting the forwarding note, the sender has to record the weight of the
consignment.
• All consignments loaded in standard bags of uniform size, low density commodities like Pet
Coke, MetCoke are exempted from mandatory weighment at weighbridges with a provision
that at least 5% of the rakes should be subjected to weighment.
• Consignment loaded in nonstandard bags or in loose condition should be 100% weighed.
Provision of In Motion Weigh bridge:

• All traffic loaded from any terminal are required to be weighed at weighbridges
• All loading points should be covered by weigh bridges.
• Provision of an in-motion weighbridge is mandatory in all new private sidings having outward
traffic.
• Installation, Commissioning and maintenance of weighbridges shall be entrusted to
mechanical department of IR.
• Functioning of all weighbridges in the division should be reported in the daily position and if
out of order, DRM shall have full powers to permit loading.
• GM should be apprised if weighbridge is out of order for more than three months
• In motion weigh bridge is preferred to static weighbridge as it entails weighment of rakes in
motion thereby reducing detention to rolling stock.
• PCOM of each railway will notify the Associate weighbridges at which rakes loaded at each
loading point for each stream are required to be weighed.
• PCOM of each railway will also notify the Alternate Associate Weighbridge where
weighment will be done if the Associate weighbridge is defective.
• FOIS is integrated with weighbridge so that weighment information is directly transmitted
from weighbridge to TMS.
• Loading point will prepare Vehicle Guidance (VG) in duplicate duly indicating the wagon No,
CC Tare Consignor, Consignee etc and hand over to Guard.
• The Guard of the train will hand over one copy of VG to weighbridge clerk at weighment
point.
• The weighbridge clerk will weigh the wagons duly indicating all the records of CC, Tare etc
and the result will be communicated to the loading point.
• Rake should not be stopped short of the Electronic in Motion Weigh Bridge (EIMWB)
• The rake will move at normal speed from loading point to first available weighbridge.
• If rake not weighed due to defective weighbridge or any other reason, then speed restriction
of 40 Kmph or less as decided by Railway is to be followed from first weighbridge point to
next available weighbridge where weighment is done.
• RR shall be prepared based on the weighment details furnished by Weigh Bridge within
24hours of loading.

18
• DCM/Sr DCM of the loading points may however permit issue of RR not later than 48
Hours from the time of completion of loading
• If it is not possible then RR should be prepared on the basis of Sender’s weight
• In case of continuous bank Holidays, force majeure conditions etc.DRM may allow
further extension of time for issue of RR up to the next working day of the bank
through a written authority.
• If weighbridge is not available, the wagon should be marked for weighment at
associated weighbridge duly recording in Vehicle Guidance (VG).
• Wagons which are to be weighed at enroute should be labelled to destination, but
noted in the wagon summary to stop at weigh bridge station.
• All weighments made at weigh bridge station are recorded in weighment register.
• Punitive charges for overloading if any should be realized at originating point itself
and should be mention in RR and indication in FOIS. Reweighment of such
wagons/rakes at enroute/destination should normally not done.
• Weighment of rakes /wagons at associate weighbridge/Alternate Weighbridge shall
be treated as weighment at forwarding station for all purpose.
Pre -Weigh Bin Bridge Loading System:

• Zonal Railways may permit weight o meter/pre-weighbin System of weighment in

private sidings on case-to-case basis on joint recommendation of Sr.DOM, Sr.DME,
Sr.DEN & Sr.DCM and with the personal approval of DRM duly keeping in view the
requirement to avoid manipulation of weighment data.
• The basic requirements to be kept in view while permitting weightometer/pre-
weighbin system of weighment to avoid manipulation of weighment data.
• The equipment shall be certified by Weights and Measures Department, and should
also meet all extant statutory provisions and policy guidelines.
• The system should have proper locking/sealing arrangement to avoid any
tampering with the system including software. The 'admin' control should be with the
Railways.
• One-to-one correspondence between Weighto-meter discharge and corresponding
wagon must be available
• Proper procedure order for normal operations covering precautions to be taken to
ensure that wagons are empty before loading and periodical test weighing of this
system is available.
• The system should have interface with FOIS to avoid any error in data capture
during transmission.

19
 Guidelines for levy of Detention charges etc.,

SI Condition Weighment at originating Weighment at other than originating

No point(Associate weighbridge point
located at loading point itself (Associate /Alternate weighbridge not
or serving station of the located at the loading point itself or
sidings) serving station of siding, enroute
weighbridge, weighbridge at destination

1 No overloading If rake detained for weighment and no overloading is detected –

No Detention charge, No Punitive charges

2 Marginal No detention charges

overloading Punitive charges levied
(No load
adjustment/
detachment of
wagons)-
3 Gross Detention charges of Rs 5000/ for No detention charges
overloading each overloaded wagon plus
Situation A- load adjustment Situation B- load adjustment done at
(Load
carried at weighment point nearby location due to operational
adjustment to
itself: constraints at weighment points
be made)
Charges for detention of rake Charges for detention of rake shall be
collected from the time of levied for actual transit time (from
completion of weighment to the weighment point to load adjustment point)
time of completion of load or two hours whichever is less plus the
adjustment at the rate of duration of load adjustment at the
prevailing demurrage charges on prevailing demurrage charges for the entire
the entire rake. rake.

No Punitive charges On detection of overloading at other than

originating point, if customer carries out
load adjustment at such point, Punitive
charges shall be levied for the distance
travelled by the train from originating
station to load adjustment point.

4 Wagons undergone load adjustment should be randomly reweighed and if over loading is
detected – Rupees one lakh per wagon shall be levied.
5 Shunting charges levied if railway loco is utilized for load adjustment
6 Wharfage charge is leviable at offloading point for usage of Railway wharf
7 Unloading charges also recovered if overloaded goods are unloaded by Railways during load
adjustment

20
 Punitive Charges for Overloading of Wagons Rules 2012 (Section 73)
• Punitive charges are collected when the commodities are loaded in a wagon beyond its PCC
or as notified by the railway
• It is collected in addition to freight and other charges
• It shall be lawful for the railway to unload excess goods and recover the cost of such
unloading and any other charge for the detention of wagons on this account
• Punitive charges can be collected from the consignor, the consignee or the endorsee.
• Punitive charges are not collected if the consignor carries out load adjustment at the
originating station
• On detection of overloading at other than originating point if the customer carries out load
adjustment at such point, Punitive charges will be levied for the distance travelled by the
train from originating station to load adjustment point
• Busy Season Surcharge is applicable. No development charge is levied

Punitive Charges
Situation A Situation B
Wagon type Extent of overloading: Aggregated Payload Aggregated
weight exceeding PCC not Exceeding payload exceeding
combined PCC combined PCC of
of the rake the rake

Up to 0.5 tonne Nil Nil

(Only normal freight.) (Only normal freight)
BCCW, BCNHL, > 0.5 tonne but not more 2 times of freight 3 times of freight rate
BFNSM 22.9, BCFC, than 3.5 tonnes rate applicable to applicable to that
BCFCM that commodity commodity
(Loading tolerance: 2.5 times of freight rate 4 times of freight rate
0.5 tonne) applicable to that applicable to that
> 3.5 tonnes commodity commodity

Up to 1 tonne Nil Nil

For container trains (Only normal freight) (Only normal freight)
and for wagons other > 1tonne but not more 2 times of freight 3 times of freight rate
than BCCW & BCNHL, than 4 tonnes rate applicable to applicable to that
BFNSM 22.9, BCFC, that commodity commodity
BCFCM 2.5times of freight 4 times of freight rate
> 4 tonnes rate applicable to
(Loading tolerance: applicable to that
that commodity commodity
1 tonne)

Note: Normal freight recovered for weight up to loading tolerance (LT)

Punitive charges for weight exceeding PCC+LT

21
 Dedicated freight corridor (DFC)

➢ Railways’ share in freight traffic has come down from 83% in 1950-51 to 35% in 2011-
12.
➢ The Indian Railways' quadrilateral linking the four metropolitan cities of Delhi,
Mumbai, Chennai and Howrah, commonly known as the Golden Quadrilateral; and
its two diagonals (Delhi-Chennai and Mumbai-Howrah), adding up to a total route
length of 10,122 km comprising of 16% of the route carried more than 52% of the
passenger traffic and 58% of revenue earning freight traffic of IR.
➢ The existing trunk routes of Howrah-Delhi on the Eastern Corridor and Mumbai-Delhi
on the Western Corridor are highly saturated, line capacity utilization varying between
115% to 150%.
➢ The National highways along these corridors comprising 0.5% of the road network
carried almost 40% of the road freight.
➢ The existing Golden Quadrilateral network of IR including it’s diagonals is facing
severe capacity constraints. Although Indian railways in last three to four years has
taken a number of steps for improving its services resulting in positive turn round in
its financial and physical parameters, much needs to be done for developing rail
infrastructure which respond fast to the needs of the industry.
Objectives:
• To build a corridor with appropriate technology that enables Indian railways to regain
its market share of freight transport by creating additional capacity and guaranteeing
efficient, reliable, safe and cheaper options for mobility to its customers.
• To set up Multimodal logistic parks along the DFC to provide complete transport
solution to customers.
• To support the government's initiatives toward ecological sustainability by
encouraging users to adopt railways as the most environment friendly mode for their
transport requirements.
Salient features of the project
• DFC will be mostly double line except between Khurja and Ludhiana on Easter
Corridor and between Tughlakabad and Pirthala on Western Corridor.
• Eastern Corridor will be electric and western corridor will be on Diesel Traction to
enable movement of Double Stack container trains. ,
• Both the corridors will be fit for moving heavier and longer trains with axle load of 25
tonnes.
• The track substructure will be fit for 30 tonnes.
• The stations on the corridor will be 40 kms apart and will have loop length of 1500
metres.
• All level crossing gates are proposed to be replaced by grade separators.
• Logistic parks along the corridor are also planned under PPP.
• Both Eastern and Western Corridors will be connected between Dadri and Khurja
through a new line.
• Considering that origins and destinations do not lie on the DFC, the feeder routes to
these freight corridors will also be upgraded for movement of heavier and longer
trains.
Western Dedicated Freight Corridor or Western DFC
• It is going to be a broad gauge corridor. This will connect two most important cities in
India viz. Delhi and Mumbai. (Dadri, Uttar Pradesh to Jawaharlal Nehru Port, Mumbai
— 1,468 km). and would be electrified with double line operation.
Eastern Dedicated Freight Corridor or Eastern DFC
• It is going to be a broad gauge corridor. This will have double line and will be electrified
(Ludhiana, Punjab to Dankuni, West Bengal — 1,760 km- 1839 km.) This corridor will
also pass through Dadri (The origin point of Western Dedicated Freight Corridor) which
will serve as a junction.

22
 Planned Dedicated Freight Corridors:
• East-West Dedicated Freight Corridor - connecting Kolkata and Mumbai, 2,000 km
• North-South Dedicated Freight Corridor - connecting Delhi and Chennai, 2,173 km
• East Coast Dedicated Freight Corridor - connecting Kharagpur with Vijayawada, 1,100
km
• South-West Dedicated Freight Corridor - connecting Chennai and Goa, 890 km.
Advantages of DFCs:
1. High levels of freight can be carried
2. Reduced unit cost
3. More reliability , availability and reduction in transit time
4. High speed trains and higher productivity of railway assets
5. Decongest busy routes and terminals

23
 Public Private Participation (PPP) in Indian Railways

Areas where private participation can be done:

a. Indian railway is suffering from low investments, poor capacity, congestion, low
speeds, poor conditions of railway stations.
b. The budgetary resources are not sufficient to make up for the investments
required.
c. PPP approach can be used to transform the railway in different areas comprising
from ticketing, station construction and upkeep, rolling stock manufacturing,
signaling etc.
d. Bibek Debroy committee has also said that PPP mode can be utilized for
mobilizing finances.
Benefits
• Opens opportunity for returns from investment in Rail Projects.
• Augmentation of railway infrastructure and decongestion of the railways.
• Ensure timely availability of Rail Infrastructure to the beneficiaries viz. Port, Industry
and States.
• Better maintenance and efficiency in implementation of projects.
• The PPP projects in case of airports have shown that this mode greatly helps in
improving quality of services.
Challenges:
• Absence of independent regulator in the railway sector. In its absence there are
chances of litigation or other issues as cropped up in road sector.
• No past experience in the PPP model for implementation of projects for Railways.
Types of PPP
• Design- Build
• Operation & Maintenance contract
• Design- Build- Finance- Operate
• Build-Own- Operate
• Build –Own- Operate-Transfer
• Build-lease-Operate-Transfer
• Operation license
• Finance only
Scope for investment in Indian Railways
• 100% Foreign Direct Investment (FDI) in the railway infrastructure segment has
been allowed recently which has opened up opportunities for participation in
infrastructure projects such as high-speed railways, railway lines to and from coal
mines and ports, projects relating to electrification, high-speed tracks and suburban
corridors.
• Indian Railways envisages a prospective investment of USD 130.76 billion in the
next five years.
• The sector aims to boost passenger amenities by involving Public Private
Partnership (PPP) investments in provision of foot-over bridges, escalators and lifts
at all major stations.
• Last-mile connectivity to boost business activity in and around ports and mines has
been proposed through the formation of special purpose vehicle (SPV) companies
under the PPP model.
• Indian Railways aims to involve private equity through individuals, NGOs, trusts,
charitable institutions, corporates, etc. to provide passenger amenities such as
battery-operated carts to facilitate movement for senior citizens and differently
abled, at stations.
• To strengthen rail connectivity with various ports, Indian Railways has floated SPVs
under the PPP mode. Pipavav Rail Corporation Ltd., Bharuch-Dahej Railway
Company Ltd., Kutch Railway Company Ltd., Hassan-Mangalore Rail Development
24
 Company, Obullavaripalle-Krishnapatnam Railway Company Ltd., and Anugul-
Sukinda Railway Company Ltd. have been established.

• Three rail connectivity projects namely Gevra Road-Pendra Road new line,
Raigarh-Bhupdeopur new line and Jaigarh Port connectivity projects are being
implemented through the joint venture route.
• Eastern Dedicated Freight Corridor of 1840 km length and Western Dedicated
Freight Corridor of 1504 km length is under construction as well as many projects
are under planning stage.
• Wifi provided in 100 stations, to be provided in 400 stations more.

25
 Marketing And Sales Organisation

Indian Railways were monopolistic till late sixties and afterwards they started to feel
the pinch of competition from road transport. With the priorities given under Five Year
plans, road links were developed throughout the length and breadth of the country
and this resulted in gradual diversion of rail traffic to road.

The load traffic has to inherent advantage of:

❖ Door-to-door service
❖ Flexibility in quotation of rate
❖ Supply of trucks depending on the demand and supply position in the market
❖ Quick transit time

To meet the challenges ahead, the Railways set up the Marketing and Sales
organization in the year 1967.

The Marketing & Sale organization:

Railway Board level - Headed by Executive Directors for Passenger Marketing

and Freight Marketing under Member (Traffic)

Zonal level - Headed by CCM (PM) & CCM (FM) and assisted by
Marketing Inspectors

Divisional level - Headed by DCM & assisted by Commercial Inspectors

Station level - Headed by SMR and assisted by Commercial staff

The rail coefficient

The rail coefficient - i.e. the percentage of freight carried by rail over the total
availability, which itself is calculated as a sum of internal production plus imports - is
an index of the market share of the railways in the industry

26
In order to capture the traffic and compete with the road sector and to encourage the
freight traffic, some of the measures adopted from time to time are as follows:

I. Bulk segment III. Transportation Products

• Station To Station Rates (STS) • Block Rake

• Liberalization Of Siding Rules • Mini Rake
• Engine On Load Scheme (EOL) • Two Point Rake (Covered Wagon)
• Dynamic Pricing Policy (DPP) • Multi Point Rake (Covered Wagon)
• Wagon Leasing Scheme (WLS) • Two And Multi Point Rake (Other Than
• Liberalized Wagon Investment Scheme Covered Wagon)-For Steel
(LWIS) • Two And Multi Point Rake (Other Than
• Roll On Roll Off Scheme (RO RO) Covered Wagon)-For Other Than Steel
• General Purpose Wagon Investment • Rake From Two Originating Terminals
Scheme (GPWIS) (Covered Wagon)
• Automobile Freight Train Operator (AFTO) • Rake From Two Originating Terminals
• Special Freight Train Operator (SFTO) (Other Than Covered Wagon)

II. Freight Incentive Schemes (FIS) IV. Non bulk segment

• Concurrent Freight Concession

• Modified Comprehensive Parcel
• Incentive Scheme for Short Lead Traffic
Leasing Policy (MCPLP)
• Automatic Freight Rebate Scheme for Traffic
• Parcel Cargo Express Train (PCET)
Loaded in Traditional Empty Flow Direction
• Operation of Merry Go Round
• Incentive Scheme for Cargo Aggregators
(MGR)system
• Incentive For Carrying Bagged Consignment
• Container Service
in Open/Flat Wagons
• Incentive scheme for Fly Ash
• Round Trip Tariff (RTT)
V. Infrastructure Improvements
• Long Term Tariff Contract (LTTC)

• Setting Up of Warehousing Facilities at

Railheads By CWC
• Terminal Development Scheme
• Development Of Private Freight Terminal

27
 Station To Station Rates (STS)

Introduction
• Section 32(a) of RA 1989 – Empowers railways to quote Station to Station rate
• Guidelines framed by Ministry of Railways.
• In special cases, Zonal Railways may frame their own guidelines to attract traffic.

Applicability
• Grant of concession should result in overall increase in the NTKM of that
station/cluster for that commodity rather than diversion of existing traffic from the
adjoining areas.
• Benchmark/NTKM for the station as a whole or for that particular commodity/rail user
refers to such benchmark/total NTKM for that particular O-D Pairs.
• Existing as well as new traffic – eligible for concession.
• New Traffic is defined as,
- Traffic offered by a new rail user subject to crossing the benchmark NTKM for that
commodity and that particular station/cluster or
- New Commodity offered by an existing / new rail user or
- Commodity offered for a new O-D Pair of stations/clusters by an existing rail user
(subject to total NTKM of that commodity from that particular station / cluster
crossing the benchmark NTKMs for that particular commodity)
• NTKM/Freight earnings after grant of concession under STS should normally
increase.
• ZR to analyse the traffic trend and ensure party should not be able to take concession
in the name of new traffic by changing the loading point or name of the party.
• Concession applicable to cluster of stations also. Distance between two
stations/points not to exceed 150 Kms. Cluster applicable for loading point only.
Booking from cluster of stations – not more than two stations in the cluster.
• COMs of the loading zone – define cluster for a commodity. Cluster station falls in
other zone – COMs of the Zonal Railways to decide.
• Traffic from one station should not be diverted to other station to obtain concession.
• Concession granted either to the consignor or the consignee.

Principles for reducing Freight rates

• Concession granted only on the incremental traffic over and above the benchmark
NTKM.
• Benchmark NTKM – Average NTKMs of corresponding periods of previous 24
months.
• Monthly, Quarterly and Half yearly benchmark NTKMs – Calculated on the same
lines.
• Station NTKM calculated on Monthly, Quarterly, Half Yearly or Yearly basis as per
the demand of the customer.
• Customer opts concession on monthly basis – agreement effective from first day of
the following month. Same way for Quarterly, Half yearly and Yearly. (Financial
period in Railways – April to March)
• Concession from the next rake after the benchmark NTKM is crossed.
• Concession under STS – for retention of traffic also. For this, trend during previous
three years is scientifically analysed if there is any shortfall.
• Concession proportionate to compensate the probable traffic drop irrespective of
station benchmark.
• Benefit of STS for “retention of traffic” can be extended to commodity/party whose rail –
coefficient is already very high and if that co-efficient is maintained at the same level even
with increase in production/output/despatches of that commodity/customer/party/siding etc.
• Concession – Percentage discount over the NTR.
28
• Concession granted when concession under no other scheme is granted.
• Concessional freight should not be less than NTR of Class – 100
• Concession applicable to Block Rake, Two/Multi Point Rake, Mini Rake etc.
• Maximum discount for attracting incremental traffic is up to 30%
• For retention of traffic, maximum concession to a particular commodity shall be 15%
only.
Permitted Terminals
• All terminals (Goods sheds, sidings, ports, CRTs, PFTs etc.)

Excluded Commodities
• Commodities with classification below Class – 100
• Coal and coke
• Iron ore (all types)
• Military Traffic, POL and RMC.

Modalities
• Rail User to apply to DRM of the concerned division with full details.
• Application verified by Divisional Empowered Committee (DEC) comprising CMI &
TIA nominated by DRM.
• DEC verified application through Sr. DCM to DRM approval.
• DRM shall forward it to GM through CCM, COM & FA&CAO.
• After GM approval, necessary instructions issued by DRM or by an officer
authorised by him.
• Application not approved; regret letter sent.
• If approved, an agreement duly incorporating the provisions of STS shall be
executed between Railway and customer.
• Agreement – Maximum period is 3 years and minimum 1 year.
• Fresh agreement every year as benchmark NTKM would change every year and
circumstances may warrant change in rate of concession also with change in freight
rates of other modes.
• Change in classification or base freight rate (excluding imposition of any surcharge)
shall not be applicable during the currency of the contract or for one year whichever
is less. After one year, rate revised as per increase in freight rates.
• Option from withdrawal from the scheme after giving notice of three months.
• No other concession permitted under STS.

29
 Siding

A rail track laid to serve a government department, a Factory/Mill/Industry/Mine, etc.

Under a special agreement to their premises is called “Siding”. The siding works on
basis of the agreement called as “Siding Agreement”.

Siding Agreement
• The terms and conditions on which the siding is to be worked will be embodied in an
agreement, which will be executed by siding user with the Railway.
• Divisional Railway Manager (DRM) will arrange to supply a certified true copy of the
agreement along with a copy of blue print of the siding to the serving station for
ensuring that normal working of the siding conforms to the provisions of the
agreement.
• Siding users are forbidden to sublet either part or whole without written permission
from the Railway Administration. The Siding Owner will also give a written
undertaking to Railway to this effect.

Making and taking over wagons/vehicles

• Wagons / Vehicles will be hauled by the Railway to and from the siding where the
Railway’s engine makes the placement or to or from the point or line of interchange
fixed for this purpose where the siding user arranges for the shunting with his own
locomotive or otherwise, according to the terms of the agreement.
• The Wagons/Vehicles will be deemed to have been placed in the siding and made
over to the siding user when:

➢ The wagons / vehicles are placed at the specified point of interchange of wagons
between the Railway Administration and the owner of the siding; and
➢ The owner of the siding be advised in writing accordingly by the Railway servant
so authorised that the wagons / vehicles have been so placed.

• Similarly, the wagons / vehicles will be considered as returned to the railway as soon
as they are available for removal from the siding after unloading / loading, have been
placed at the specific point or the line of interchange between the siding and the
railway administration and a railway servant authorised in this behalf has been
informed in writing accordingly by the owner of siding.

• In respect of those sidings which have facility for direct reception and despatch of
trains, i.e, such trains that do not require to be dealt with at serving station, ‘the point
of interchange’ will be siding itself.

Siding Vouchers
• The advice of placement and return of wagons / vehicles, will be given on a “Siding
Voucher”.
• In terms of Section 94 of the Railways Act, 1989 the responsibility of the Railway
Administration, in respect of goods to be delivered at a siding ceases after the wagon
containing the goods has been placed at the point of interchange and the siding user
informed in writing that the wagon has been so placed, the SM should ensure that
there is no delay whatsoever in the delivery of siding voucher to the siding user, at
the time of placement of wagons at the point of interchange.
• Siding Vouchers are supplied in a book form printed in two counterfoils each marked
for “Record” and for siding user and are serially machine numbered.
• These should be written in ink only. If due to any reason, siding voucher has been
incorrectly prepared, it should be cancelled over the dated signature of the SM and
both the foils retained intact at the station.

30
• Where the siding charges are fixed on ‘per trip’ basis, a trip being defied as ‘one
movement of the engine to and from the siding for placement and / or removal of
wagons, whether loaded or empty’, a separate siding voucher should be issued for
each such trip.
Procedure for Booking and Delivery of Traffic
• The working of the siding will be on the basis of the siding agreement executed by
the owner with the Railways.
• For registration of wagon demands, WDR Fee shall be collected in the form of ‘Lump
Sum Deposit’.
• In lieu of Traders Wagon Demand Register, only a ‘Demand Register’ has to be
maintained.
• In the absence of a specific allotment order by Operation Department, the siding
owner may be permitted to select the destination on day-to-day basis.
• The siding owner may be allowed to load wagons allotted against a particular indent
to another destination, provided it is not restricted or inconvenient to the Railways on
a particular day.
• The freight charges will be levied from / to the serving station if the siding is not
charged on through distance basis. (Through distance charging provided to the siding
having peripheral yard system)
• To haul the wagons between the serving station and the siding, ‘Siding Charges’ are
levied at notified rates.
• If separate tally clerk is posted at the siding, he should supervise loading and
unloading of goods.
• Name of the serving station is written within brackets after the name of siding in RR,
Seal Cards, bracket labels etc.
• Clear Railway Receipt has to be issued in the siding itself.
• If separate tally clerk is not posted at the siding, invoicing and book delivery should
be done at the serving station.
• Name of the siding is written within brackets after the name of serving station in R.R,
seal cards, bracket label etc.
• ‘Said to Contain’ Railway Receipt has to be issued at the serving station.
• Book delivery should be made at the serving station before placing the inward wagons
at the siding.

Siding Charges
• In addition to freight charges, to and from the station serving the siding, siding
charges at the rates laid down in the agreement or notified separately by Railway
administration for dealing with the traffic at the sidings should be recovered from the
siding users.
• In case of Military siding, the individual railway need not fix the siding charges as the
siding charge for such siding is fixed by the Railway board.
• In case of Colliery Sidings, the siding charges are fixed for each wagon on the basis
of previous year’s traffic data by individual Railway. The amount of siding charges is
shown on invoices and included in freight. No separate siding charge amount is taken
in the Balance sheet on Debit Side.
• In case of Assisted/Private Sidings, the siding charges are levied on per trip basis.
• A trip means, movement of one Railway engine from the centre of Serving station to
the end of siding or up to the point of interchange as the case may be and back for
the purpose of placement/removal of one or more loaded/empty wagons.
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• The average trip time is fixed duly conducting shunting trials in the presence of Party’s
representative and representatives from Commercial, Operating and Accounts
departments. Normally, six shunting trials are conducted to arrive at the Average Trip
Time.
• The siding charge per trip will be,

Average trip time (in minutes) X (All India Engine Hour Cost / 60)
• The resultant of the above formula will be rounded off to the next higher value to arrive at
the net siding charge.
• If the Average trip time is less than one hour, the Siding Charge will be levied for a
minimum of one hour.
• The siding charge per trip is notified for the use of one engine per trip. If more than one
engine is used in a trip, siding charges will be levied for the additional locos also.
• Siding charges are revised every year whenever there is a change in the AIEHC.

Peripheral yard system:

• In some major sidings, sufficient yard facilities are provided in the siding, so that direct
reception/despatch of goods trains is possible in the siding itself.
• In such cases, the goods trains meant for siding will not be dealt at the serving station.
• And hence the freight will be levied on through distance basis up to the buffer end of the
siding or the farthest point of the exchange yard, instead of up to the serving station.
• No separate siding charge will be levied.
• Under the system, only trainload traffic is dealt.
• The list of sidings having peripheral yard system of charging is notified by concerned ZR
through Rate Advice with the related distance for charge.

Levy of Siding Charge when more than one engine is used:

• This has been clarified by Board vide No. TC-1/99/214/11 dt 01.11.2000. Board have
decided that wherever shunting operations require only one locomotive and Railways
make active use of only one locomotive, siding charges should be worked out by
including the cost of one loco only.
• In caseloads cannot be hauled by a single loco in the siding and double or multiple
engines are required for handling the loads, siding charges will be levied by taking into
account double or multiple engines.

Categorisation of Sidings
The sidings are categorised as per originating earnings as follow,

Originating Earnings per annum Type of Siding

Above Rs. 100 Crores. Platinum Card Holder

Above Rs. 50 Crs but upto Rs. 100 Crs Gold Card Holder

Above Rs. 10 Crs but upto Rs. 50 Crs. Silver Card Holder

• The zonal railway should nominate officers to interact and provide single window attention
to these customers to sort out the problems of the valued customers and improve the rail
despatch.
• Issues related to maintenance, disputes in respect of staff payments, issues pertaining to
technical departments and also to suggest ways and means to reduce the overall siding
cost, inspections and formal meetings with these customers will be held at DRM/ADRM
level once in 3 months and at CCM/COM Level once in 6 months.

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 Policy On Private Siding

• The revised policy guidelines is applicable for all new sidings and for those ongoing
proposals where “Detailed Project Report” (DPR) has not been approved.
• Where DPR is already approved, it will continue to be governed by the provisions of
the Policy prevailing at that time.

Eligibility and Applicability

• Private siding is only for end user. One co-user is permitted with permission of siding
owner and approval of COM.
• However, siding owner can permit multiple Co-users and inform ZR at least 7 working
days in advance.
• All new sidings shall come up with “Engine On Load” concept.

Definitions
 Abstract Cost – Cost as indicated by the party in the application for setting up of
private siding.
 Anticipated cost – Cost anticipated at the stage of Feasibility Report.
 Completion cost – Cost calculated on the basis of payments made for contracts of
execution, procurement, establishment etc, for which audited accounts will be
submitted.
 Common User facilities – Facilities which facilitate the Railway traffic operations
such as ‘Y’ connection, additional lines/loop lines at the serving station, crossing
station, patch doubling, shunting neck, engine escape line, modification to existing
OHE or Electrification, S&T work etc.
 Co-user – Permission given to a rail user other than the owner of a private siding by
the Railway for using the siding for handling of his own goods traffic at that siding,
subject to the provisions of the Siding Agreement.
 End user – User who owns a plant/manufacturing unit or production unit/mines and
the siding is for the purpose of his exclusive use for handling the products being used
or manufactured or produced therein. Includes sidings of FCI, POL and Containers.
 Estimated Cost – Cost as estimated at DPR Stage. Excludes cost of land acquired
by the party and the cost of track network utilized by the party for their internal use.
 Private siding – Privately owned siding constructed/laid out by a party at it’s own
cost for railway freight services under a special arrangement. Shall cover only that
portion of tract network and related infrastructure on which Railway rolling stock will
ply. Network utilized by the Company/party for their internal use shall not form part of
the siding defined herein.
Nodal Agency
• In order to provide a” Single Windows Service” to the rail customers at various stages
for all siding matters and to redress the grievances of the applicants/Siding owners,
the nodal and coordinating officers shall be as under:
• In Railway Board office:
• Coordinating officer both prior to construction and also after siding is notified for
commercial operation- Executive Director (Freight Marketing)
• Coordinating officer during construction stage-Executive Director/ Civil Engineering
(General).

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• At divisional and headquarters level the nodal and coordinating officers shall be as
under:
Stage Nodal and Nodal and
Coordinating Officer Coordinating Officer
at Divisional Level at Headquarters
Level
For all private siding Nodal officer -DRM Nodal officer -CTPM
matters:
At various stages planning
preconstructions
construction and after
construction stage
Throughout the Coordinating officer- Coordinating officer
construction stage Sr DOM CTPM
After completion of project Coordinating officer - Coordinating officer
issue of notification and Sr DCM CCM/FM
after commissioning

• The members of both committee at the Division And headquarter level should be by
designation and in absence of the incumbent, the officer looking after either formally
or as link officers shall discharge this function.
• The above changes shall be made applicable to all private sidings i.e existing
undergoing proposals as well as new proposals for construction of private sidings.
Procedure and Time Line
• After examining the Feasibility report and conceptual plan submitted by division,
CTPM of ZR shall advise “In Principle Approval” (IPA) to the party.
• After approval of ESP (Engineering Scale Plan) and intimation to party, no changes
in the ESP shall be permitted except on unavoidable technical consideration.
• Commercial operation permitted only after signing of the Private siding agreement
including Land License Agreement by Sr.DCM & Sr.DEN respectively of the Division.
• In case delay in submission of DPR, Cost and other details by the Party within
specified time line, CTPM may permit extension up to one month on receipt of the
request from the party. Further 2 months extension by PCOM. Beyond this time, the
case will be deemed to be dormant and will be so advised after giving 7 days’ notice
to the party.
• Proposals becoming non-responsive or applicant is no longer interested in
constructing siding, PCOM in consultation with PCE shall close the proposal.
• Committee comprising CTPM (Convener), CGE and SAG officer from finance dept
will monitor the progress of commissioning of sidings at HQ Level and report
submitted to GM.
• At Divisional Level, branch officers from Operating (convenor), Engineering and
Finance Department will review the progress of siding on monthly basis and report
be submitted to DRM.
Departmental Charges
• Departmental Charges – in terms of Provisions of “Indian Railways Code for the
Engineering Department – 2012” shall be payable by the party.
• Departmental charges shall be levied to cover the cost of tools and plant and of
establishment supervision w.r.t survey, DPR Approval, Plans & Estimates,
Construction and Final Inspection & Certification and shall be utilized by the
respective departments.
• Departmental charges leviable on Project Cost
• On project completion, total cost of the project shall be calculated. The cost of
creation of “Common Users Facilities” if to be incurred by the party, shall be shown
separately.

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 Capital cost of Siding
• Siding owner to bear the capital cost of the new sidings from the take-off point at the
serving station.
• Capital cost for all traffic facilities such as ‘Y’ connection, additional lines/loop lines at
the serving station, crossing station, patch doubling, shunting neck, engine escape
line etc as to be approved by COM, shall be fully borne by the Railway.
• The distance for charging of tariff, for each ‘Y’ connection shall be increased by 5
Kilometres, which shall be applicable to all traffic handled at that siding.
• Capital cost for augmenting the facilities including electrification within the premises
of siding owner shall be borne by the siding owner.
• All the proposed traffic facility shall be as per Railway’s approved designs/drawings
and standards/specifications
• Licensing of Railway land for providing connectivity to the private siding exclusively
shall be done as per extant policy.
• Physical work for providing connectivity to private siding shall be done towards the
end of construction of the siding and after executing the land licensing agreement.
• Siding shall normally take off from the existing serving station. However, in case when
it is operationally not feasible to provide a connection from an existing serving station,
on party’s request for a connection from a location between two existing stations at
its own cost, provision of a block hut / block station with required points & crossing
may be considered, provided :
➢ All aspects on train operation have been examined to the satisfaction of ZR and
certified by COM of the railway.
➢ Entire capital cost is borne by the party.
➢ Siding owner also pays a lump sum amount which would be equal to recurring
cost towards maintenance & staff employed for a period of 10 years.
➢ Amount deposited by the party shall be utilized by the concerned departments
of Railway for creation of required manpower and the contractual agencies as
the case may be.
Instructions for bearing the Capital Cost of Assets in Railway Area:
• Siding owner can also opt for bearing the cost of traffic facilities that are to be normally
borne by Railways.
• If siding owner desires to bear such capital cost of traffic facilities to expedite
commissioning of his siding, the following shall be applicable.
➢ Done through railway approved contractors / consultants. Party can request
railway to execute part / full work on deposit term basis.
➢ Common user traffic facilities shall be used not only by the party but also by other
users including Railways and shall be maintained by Railway.
➢ Ownership of such assets will remain with Railways and no land licensing will be
charged for this portion of the work.
➢ After completion of the siding, the actual expenditure incurred by the siding owner
on behalf of Railways shall be verified by the Division.
Charging of freight from the siding owners, bearing cost of ‘Common user
facilities’
• A fixed freight discount of 10% on outward traffic only shall be given to the party for
a maximum period of 10 years or till the investment made by the party is realized
through freight discount whichever is earlier.
• To this effect, CCM/FM of ZR shall issue notification to grant freight rebate to siding
owner.
• The above freight discount is actually the repayment of investment made on behalf
of Railways and is really not a freight rebate in the strictest sense of the term. As
such, this freight discount shall be admissible in addition to all other rebates that the
siding owner may become eligible for such as empty flow direction etc.
• The distance, for charging of tariff, for each ‘Y’ connection, shall be increased by 5
kilometres, which shall be applicable to all traffic handled at that siding.
35
• Division shall advise the CCM/FM of the ZR, the total amount of investment made by
the party in railway area. On receipt of advice from the division, CCM/FM of the ZR
shall also advise CRIS regarding the above amount for private party, so that proper
checks/flags are set in FOIS for issuing the Railway Receipt
• Cost of supervision, inspection or establishment charges taken in the project cost for
the common user facilities shall not be included for the purpose of calculating
repayment of investment to the party.
Cost of Gauge Conversion
• Gauge conversion cost shall be shared with the party provided the investment on
gauge conversion, made by the Railways is financially viable with a minimum ROR
of 14% based upon the traffic offered by the siding in the last 24 months.
• Where the investment is not financially justified, the siding owners shall bear the full
cost of the conversion or the siding shall be closed.
Maintenance of Assets on New and Existing Sidings:
Responsibility of Siding Owner
• Can maintain the track etc., of his siding either himself or through the Railways.
Owner will enter into an agreement with the concerned division.
• To pay damage costs if the rolling stock of the railway derailed / damaged inside the
siding due to bad maintenance conditions.
Electrification Cost
• New Siding – the entire cost of electrification of the siding shall be borne by the siding
owner.
• Existing Siding – Electrified at railways cost provided it is operationally justified by
PCOM of that ZR. For calculating the ROR, GTKMs and cost of electrification shall
be taken for main line as well as sidings combined together.
Maintenance of OHE
• OHE maintenance cost for both existing and new sidings shall be borne by the
railways.
• In case of OHE theft, restoration done by the railways but cost borne by the siding
owner.
Maintenance of Civil Engg. Assets
• New Sidings – done by party. Railways collect only “Inspection charges”.
• Existing Sidings – done by party. Railways collect inspection charges. Maintenance
done by Railways at the cost of siding owner.
C&W Examination – Maintenance facilities in sidings
• New sidings – Normally no C&W facility. If developed cost borne by owner on one
time basis. Upkeep is party’s responsibility. Running repairs of rolling stock including
material and staff cost for railway owned stock borne by railway.
• Existing sidings – Facility planned only when loading / unloading is five or more rakes
per day. If done apportionment of cost done between railways and owner.
C&W Examination – Handling of Wagons in sidings
• Owner to ensure that no railway wagon gets damaged during loading / unloading. If
caused due to fault of owner, damage and deficiency charge shall be raised.
• Frequent check by railway representative to ensure that wagons are not damaged in
the siding.
• Tipplers and bulk handling systems – as per RDSO’s approved specifications.
• Tipplers and bulk handling systems to be replaced after their codal life is completed.
• If rolling stock continue to get damaged, siding shall be closed till the equipment or
procedure that is causing the damage is repaired / put right.
Maintenance of S&T Assets
• Provided at take-off point maintained by Railway
• Maintenance of S&T Equipment inside the siding shall be done by the party through
the railway approved contractors.
• Quarterly inspection by SSE. Cost to be borne by owner

36
 Commercial Staff
• Owner to bear cost of one commercial staff per shift or as decided by Railway.
• As soon as the siding is notified, party to deposit, cost of posts of commercial staff
estimated for 10 years period.
Provision of other facilities
• In motion weigh bridge at owner’s cost in siding having outward traffic on private /
railway land.
• FOIS with TMS installed at the siding – cost borne by owner.
Agreement
• Integrated agreement, comprising Land license agreement and Private siding
agreement shall be signed before commissioning of the siding.
• Sr. DEN of the concerned division is the signatory of land license agreement. Sr.
DCM of the concerned division is the signatory of private siding agreement.
• After notification of siding and signing of integrated private siding agreement one copy
shall be kept with Sr. DFM of the division for raising bills.
• Commercial department of ZR shall issue notification after obtaining alpha and
numeric code of the siding.
• Information to CRIS for feeding the data in FOIS.

Engine on load-EOL
• EOL system of operations means loading/unloading in such manner and within such
time as would permit placement and clearance of the rake by the same locomotive.
• Under the EOL system of operation, the train locomotive will remain available during
loading / unloading operation in the terminal, and wait on Railway’s account (till the
free time permitted for loading/unloading) so as to work the train immediately after
loading/ unloading operation is completed.
Applicability and eligibility:
• Terminal (Gati-Shakthi Cargo Terminal /Private Sidings /Private freight terminals)
notified for charging on “Through Distant Basis” can operate under the EOL system.
• The terminal operator /owner/legal representative, for the terminals under EOL
system, Shall develop facilities for loading and unloading and design layouts to
facilitate the same.
• All new cargo terminals shall preferably operate under EOL system. However only in
case of operational/ geographical constraints in implementation of EOL (with a
consent of operating department of the ZR and the personal approval of DRM) can
decide to commission such terminal under Non-EOL system.
Existing terminal:
• Existing terminals already under EOL where problems have been faced in effective
implementation can convert to Non EOL system with approval of competent authority.
• Existing terminals which are being operated under non EOL system may opt to come
under EOL system by signing an EOL agreement with railways.
• The competent authority for conversion of terminal from Non EOL to EOL and vice
versa shall be as under:
Conversion of Recommending Approval authority
terminal into authority
Existing EOL terminal Division with Joint approval of PCOM and
into Non EOL terminal approval of DRM will PCCM in Zonal Railway who will
For partial EOL send detailed pass a recent speaking order
operational
justification

Existing Non EOL to May opt to come under EOL by signing an EOL
EOL agreement with the division only for terminals where
charging is been done through distance basis.
37
 • The agreement signing authority will be senior DCM of the division where the terminal
is located and on behalf of the terminal shall be a legal representative only.
Provision under EOL system:
• The free time for loading/unloading at the terminal shall be lower than the normal free
time so as to minimize detention to wagons and to ensure that the placement and
clearance of rake is possible by the same loco.
Type of Rake EOL Free time (In Hours)

Loading Unloading

Open Rake (BOXN etc) 3:00 5:00

Hopper Rake (BOBR etc) 3:00 2:00

Covered Rake (BCN etc) 6:00 6:00

Tank Rake (BTPN etc) 5:00 5:00

Cost of commercial staff:

• The cost of commercial staff applicable on various types of terminals shall be as
under:
Type of terminal Applicability of commercial staff cost
EOL Terminal All GCT /private siding/PFT under EOL-
No cost of commercial staff to be levied
Non EOL terminal
Partial EOL terminal GCT -No cost of commercial staff
Private siding/ PFT- cost of only one
commercial staff shall be borne by the
siding owner.
Exemption from engine Hire charge EHC:
• Terminals shall be permitted to utilize railway locomotives during loading/unloading
of the rake within the prescribed free time without levy of any additional charges.
• The terminal operator/manager/owner may therefore not be required to maintain a
captive locomotive at his cost at terminals operating under EOL.
• Terminal operators /owners/ legal representatives shall record and declare to railway
staff present at the time immediately after completion of loading/ unloading.
• Detention of locomotives rake after declaration regarding completion of loading
/unloading shall not be on account of terminal operator /manager/ owner.
• The EHC at EOL and partial EOL terminal shall be applicable as per the following
table:
Status of loading Status of locomotives Engine hire charges EHC
unloading
Within free time - No EHC irrespective of whether
engine is present or it has been
withdrawn from the terminal
Beyond free time Locomotive absent for entire No EHC
duration beyond Free time
Locomotive present partially/ EHC will be levied for the
completely beyond free time duration locomotive is available at
the terminal from the end of free
time till the completion of loading
/unloading irrespective of the fact
there are the shunting operation
has been performed or not

38
 Exemption from Siding Charges
• For the bulb type sidings, freight will be charged on the basis of through distance upto
a specified loading or unloading point and not for the entire length of the siding.
• No siding/shunting charges for haulage of wagons within the siding will be leviable
under the ‘EOL’ operations.
General conditions:
• Suitable resting facilities shall be provided to the train crew by the terminal operator/
owner/ legal representative within the premises as per the standard prescribed by the
railway
• Terminal operator shall also permit the train crew to avail facilities such as staff
canteen etc in the premises on payment of charges.

39
 Embedded Empties/Under Loads/Piecemeal:

• Embedded empties in BOBRN should be reduced. Those sidings which are not
showing improvement should be penalized financially.
• Under load/ Piecemeal holding on the zonal railways is increasing. All zonal railways
should mop up piecemeal wagons as rake induction is expected to be low.
• Reduce the running of embedded empties in all the Zonal Railways so as to ensure
that all the wagons are loaded in a rake. Unfit wagons be made fit for freight loading.
Body damage, door damage, floor damage, petty repairs etc. are the main causes
for locos running embedded empties and efforts should be made to ensure that
adequate material is available at the siding to make these wagons fit for loading.

Dynamic Pricing policy

Demand Management Charges
SI Charges Commodities Surcharges Levied Levied on
No during
1 Busy Season All commodities 15% 1st October Applicable
surcharge except Coal & to 31st July on Base
Coke, Freight
automobiles
moved in NMG,
BCACM,
BCCNR and
BCACBM
Container traffic 10%
2 Supplementary All commodities Mini Rake- 1st October Applicable
charge Up1000 Km- 5% to 31st July on base
>1000Km-2000Km- 7.5% freight
> 2000 Km- 10%
Two- point rake-5%
Multipoint rake-20%
3 Congestion All traffic book to 25% Throughout Applicable
charge Bangladesh the year on base
including freight
Container traffic
All traffic booked 20%
to Pakistan
including
container traffic

• NTR = base freight rate and various Demand Management Charges

• Other charges like punitive charge for overloading, penal charge for
misdeclaration and Concessions (discounts/ rebates) will be levied on NTR

40
 WAGON LEASING SCHEME(WLS)
Objectives:
To develop strong wagon leasing market by encouraging third party for leasing of wagon
Definition:
 End User – Rail Customers who are producers or Consumers of goods transported in Rail.
 Operators – 3rd Party Logistics company engaged in providing service to multiple customers.
 Wagon Leasing Company – A company engaged in the business of procuring wagons and
making them available to other business entities.
 Lessor – WLC engaged in the business of leasing wagons to lessee.
 Lessee – End Users or Operators under concession granted by IR to run trains on IR Network.
 Leased Wagon – Wagons given on lease by a Lessor to Lessee.
 Idle Leased Wagons – Wagons owned by a lessor & held on IR network or other private siding
awaiting nomination of lessee.
 High-Capacity Wagons (HCW) – Wagons with high payload of minimum 2 tonnes over the same
type of wagons in 25.0 Tonne or 22.9 Tonne axle load route. Standard Composition of rake not
to be changed. Will run on specific route identified by IR. Not forming part of IR Pool.
 Special Purpose Wagons (SPW) – Wagons designed for transporting specific or group of
commodities. Will operate in specific route or closed-circuit route. Will not form part of IR Pool.
Types of wagons:
• High-capacity wagon (HCW)
• Special purpose wagon (SPW)
• Wagons for container movement
• General Purpose Wagons (GPW)
Leasing of wagon:
• End user (HCW&SPW)
• Operators granted permission to operate rakes under the schemes such as SFTO, LWIS, GPWIS,
CTO ETC.
Eligibility:
• Entity registered in India under companies act 1956
• At least 5 years’ experience of asset leasing business
• Net worth of at least Rs 100 crores.
• In case of Subsidiary company experience and net worth holding with more than 50% equity,
may reckoned and should have 25% of prescribed et worth.
Registration
• Register as WLC with MOR by paying onetime non-refundable registration fee of Rs 5 crore.
• Registration valid for 35 years from the date of registration and can be extended on payment of
registration fee.
Concession:
• HPW-12% for 20 years
For every additional tonne of payload-additional 0.5% for 20 years
• SPW-15% for 20 years
• Concession on freight rate at time of commercial notification by CCM
Procurement of wagons:
• Procure wagon directly from wagon manufactures or through imports.
• Procurement allowed with prior administration and technical approval of MOR
• Wagon in unit of block rakes plus 4% additional as maintenance spares and brake van for each
rake.
• Inducted into service after safety and quality inspection by MOR.
• Permitted to purchase wagon from CTO, SFTO,AFTO and end user with MOR prior approval.
• Brake van added to IR pool with undertaking that IR will provide Brake van for operational
requirements.
Maintenance of wagons:
• Done by IR on payment

41
 LIBERALIZED WAGONS INVESTMENT SCHEME (LWIS)
• This scheme is introduced by Ministry of Railway which will supersede, Wagon
Investment Scheme and Own Your Wagon Scheme. Consumers who have invested in
old schemes can avail their benefits till the duration of agreements.
Objective –
• To encourage procurement of wagons through Private Public Partnership.
• To enhance carrying capacity of Indian Railways.
• To increase Railways earnings.
• To attract expected traffic in future.
Procurement of Wagons - Following investors can procure wagons under this scheme-
• WLC – Wagon leasing company –For leasing to end user.
• End users – Will invest for their own traffic only.
• Logistics providers exclusively for the end user company.
Type of Wagons: -
• High-capacity wagons (HCW) - Wagons with payload which are at least 2 tonnes higher
than the payload of extent similar wagons for 22.9 or 25 tonne axle load routes.
• Special Purpose Wagon (SPW) – Wagons designed for a specific commodity.
Restricted Commodities-
• Coal & Coke, Ores and Minerals.
Procedure for Procurement of Wagons: -
• Will be allowed only with prior approval of MOR.
• Wagon should be procured in units of rakes with 4% maintenance spare and one brake
van.
• Wagon will be procured by customers directly from Wagon manufacturers or through
import subject to compliance with design and specifications of RDSO.
• These wagons will not be included in general pool of IR. They will be known by the
name of private investor only.
• Loading will be permitted only for indents registered by end user for approved loading
points and destinations over specific /closed routes.
• If the End Users does not place any indents, these wagons will remain idle in his
premises. If these wagons are stabled in railway yards, stabling charges will be payable
as notified.
• If Rake is detained in railway good shed beyond the permissible free time detention
charge shall be levied.
• For using railway good shed, terminal access charge, detention charge and ground
usage charge shall be levied.
Freight Concession
• Freight concession to the end users that will be granted for each loading in rakes
consisting of new HCW and SPW procured.
• No freight will be charged for moment of empty rake to the next destination provided the
distance travelled by empty rake is less or equal to the loaded distance.
• If the distance travelled by empty rake is more than the loaded distance then the
additional distance travelled by empty rake shall be charged at 50% of the loaded
freight at public tariffs as per the PCC of the wagon.
HCW
• Investment in HCW, with a pay load of 2 tonnes more than the pay load of extant similar
wagons will be eligible for a freight concession of 12% for a period of 20 year.

42
• For each additional tonne of pay load, an additional 0.5% of freight discount will be
granted.
SPW
• Freight concession of 15% will be granted for a period of 20 years.
Maintenance of Wagons:
• By Indian railways on payment
• Charge for moving the wagons from the private terminal to the workshop and back shall
be borne by the Indian railway.

“Roll On” & “Roll Off” Scheme (RO-RO)

• Roll-on Roll-off is a service where trucks and cars ride piggy-back on specially designed
wagons.
• For the first time, the system was adopted by Konkan Railway Corporation.
Features of RO RO Service
• RO – RO is defined as new commodity in IRCA Goods Tariff No 48, Pt 1 Vol.II.
• All commodities and the main commodity head coal & coke, Iron Ore (all types) and
military traffic shall be excluded commodities under RORO service.
• The freight rate table indicating the base freight per wagon for loaded vehicles and
empty vehicles /empty flats is prescribed.
• The rake shall be charged for the corresponding numbers of loaded vehicles and empty
vehicles/ empty flats.
• The RORO service shall be subject to levy of all ancillary charges as notified from time
to time.
• Terminal charge for the subject RORO service being handled at railway good shed and
PFT to be collected by Railways.
• Terminal charge for empty wagons /flat, Terminal access charge shall be levied .
• Free time for loading and unloading will be three hours
• Demurrage and wharfage charges will be levied.
• A maximum of two persons per truck including driver will be permitted to accompany the
truck by purchasing second class ticket for the journey.

43
 General Purpose Wagon Investment Scheme (GPWIS)

General
• As there was long term demand from Railway Freight Wagons Users for better and timely
availability of General Purpose Wagons (GPW) it has been decided by Ministry of
Railways (MOR) to introduce a scheme for investment in General Purpose Wagons.
Types Of Wagons Permitted For Private Procurement
• General Purpose Wagons (BOX, BOXN, BCN etc.) approved by ROSO to run over the
routes approved by Indian Railways.
• Special Purpose Wagons (specially designed to carry specific commodity or a group of
commodities) will not be covered under this scheme.
Applicability Of This Scheme
• This scheme shall be applicable exclusively on the wagons inducted under this scheme.
Wagons inducted by investors prior to the commencement of this scheme shall not under
any circumstances, be covered under this scheme.
Eligibility
Under this scheme the following shall be eligible to procure wagons . ..-
➢ Producers or consumers of the goods to be transported by rail.
➢ PSUs, Central Public Sector Enterprises.
➢ Logistics providers.
➢ Port Owners/Port Rail Companies.
➢ Mine Owners.
➢ Wagon Leasing Company (WLC) (for use of end users).
Procurement Of Wagons
• Procurement of wagons will be allowed only with prior administrative approval of Ministry
of Railways (MOR).
Procedure for procurement of wagons
• Application, along with specific details of the proposal, to be submitted to Executive
Director/Freight Marketing (EDFM), Railway Board.
• The details regarding number of rakes required, type of wagons, loading station(s),
destination station(s), proposed specific route(s) or close circuit(s)
• If proposal is found operationally feasible, an approval letter from Ministry of Railways
permitting procurement of rakes under GPWIS on the approved circuit shall be issued for
PCOM and PCCM of concerned Zonal Railways.
• Agreement will be signed between the PCCM of the concerned Zonal Railway and the
applicant within 6 (six) months from the date of approval from Railway Board.
• Wagons should be procured in units of full rake with 4% maintenance spares and one
brake van. A minimum of one rake has to be invested in, to participate in the scheme.
• Rakes procured under any other investment scheme will not be eligible to be inducted
under the GPWIS Scheme.
• All Rakes have to be in compliance with IRS designs and specifications applicable at the
time of procurement and inspection by RDSO
• Privately procured wagons will be inducted into service only after completion of the
mandatory safety and quality inspections by RDSO
• Information regarding placement of order for procurement of rakes and Date of actual
induction of the rake on Indian Railways network may be advised by the party to the
PCOM of the concerned Zonal Railway as well as EDFM, Railway Board.
• Zonal Railway will keep the details of the wagons and brake-vans procured for each rake
by the party
• Commercial notification will be issued by the PCCM in consultation with PCOM.
• The General Purpose Wagons (GPW) inducted under this scheme will not be merged in
general pool of the Indian Railways.

44
Operation Of Privately Owned Wagons
• The rakes inducted under GPW Scheme shall not be merged in IR's pool of wagons and
will be distinctly indicated through a colour scheme. The rakes so inducted shall run on
pre-approved circuits.

Terminal For Loading/Unloading

• Between private sidings/ terminals or Private Freight Terminals (PFTs) or Inland
Container Depots (ICDs) or Ports or Mines equipped to handle the traffic for which
GPWIS end users must have a tie-up for handling of such wagons.
• The wagons can also be operated from railway goods sheds notified in terms of
Wharfage Rules, wherever feasible, on recommendation of PCCM and approval of
PCOM provided such rake handling will not in any way hinder or restrict or hamper any
priority in handling of inward or outward traffic of other rail customer
• GPW rakes will not be allowed to be stabled on Railway Land. And have to be stabled
in private siding/terminal of the customer when not in use.
• The associated loading and unloading point or points can be changed as per the
requirement of the GPWIS end user. This change is subject to the operational feasibility
and approval of the Railway Board.
• Rake(s) should be procured and presented for induction under this scheme within 18
(eighteen) months from the date of signing of the Agreement.
• Fresh NOC has to be obtained for the circuit on expiry of this time limit.
• Indian Railways reserves the right to modify/amend any provisions of the scheme in
consultation with the existing end users of the scheme.
Maintenance Of Wagons
• Maintenance of Wagons will be undertaken by IR on payment as per agreement to be
executed with the wagon owner.
Freight Rates And Concessions
• A rebate of 10% shall be given on the base freight on each loaded wagon for a period of
15 years
Period Of Agreement
• The period of agreement for each rake will be for the codal life of the specific stock as
specified at the time of induction of the rake by the Ministry of Railways.
Lien
In cases of default of payment by the investor, IR shall exercise lien on the privately
owned wagons and the consignment loaded in such wagons to recover its dues.
Force Majeure
Railway shall not be responsible for any loss, destruction, damage, deterioration or non
delivery of goods arising from the following causes:
➢ Act of God.
➢ Act of war
➢ Act of public enemies
➢ Restraint or seizure under legal process
➢ Orders or restrictions by Central Government or states Government or by any officer
or authority subordinate to the Central Government or a State Government authorized
in this behalf.
➢ Fire, explosion or any unforeseen risk.
➢ Act or omission or negligence of the investor or consignor or consignee
➢ Natural deterioration or wastage in bulk, or weight due to inherent defect, quality or
vice of the goods.
➢ Latent defect
Dispute Resolution
• Resolved through Arbitration and Conciliation Act 1996

45
 Automobile freight train operators scheme (AFTO)

Eligibility:
Applicant should be,
• A registered co. in India under C.A 1956.
• A Subsidiary Co.
• Joint Venture Co. or Partnership.
• Public Sector entity in the logistics business.
• Should have one year experience in any one below,
➢ Transport & Logistics
➢ Port & land terminal operations
➢ Warehousing
➢ Container Train Operations
➢ WLC
➢ Manufacturers of automobiles.
Registration fee & validity:
• AFTO Selected by IR to deposit registration fee of Rs. 3 Crs.
• Concession agreement for operation of AFTO is 20 Years. Extendable till codal life of
wagons based on satisfactory performance of AFTO.
Procedure for application
• Apply to PED/EDFM with all details
• Application to contain all the details.
• On receipt of the application, MOR shall study the proposal in details and grant necessary
approval.
• Agreement will be signed by CCM/FM of the nodal Zonal Railway of the base terminal of
AFTO.
• AFTO has to procure full rake formation + BV + 4% additional wagons as maintenance
spares.
• Additional wagons can be procured/withdrawan with permission from IR
• Agreement will be valid till the codal life of the rakes.
Procurement of wagons
• Allowed only with prior approval of MOR.
• Wagons to be procured to conform to IR Designs and specification. Inducted after
inspection by RDSO.
• AFTO can operated trains between private terminals for which tie up is made or use its
own terminal/sidings or from any rail terminal to any rail terminal on payment of terminal
access charges.
• AFTO can also lease wagons from WLC or from any other registered operator.
• Should procure the rake and start operations within 2 years from signing of agreement
else registration cancelled.
• Can also introduce new design wagons and shall be inducted in IR within 4 years, as
SPW wagons, from the date of signing of agreement.
• If AFTO is already registered, then such new design can be inducted within 3 years of the
design and trial run being approved by RDSO.
• BV procured will be added to IR Pool. BV for the AFTO Rake will be provided by IR.
• If rakes procured without BV, AFTO to pay haulage charges for BV by IR.
• Charged for the first run from manufacturing unit to Loading point.
• Permitted to commence operation as soon as the first rake is inducted.
Maintenance of wagons
• Maintenance of Wagons done By IR.
• For special components required for maintenance cost borne by investor.

46
 Commodities
• Passenger Cars
• Two / Three wheeler automobile units
• Mini Trucks, Tractors, Chassis
• Shells of cars,
• Automobiles moved in CKD Condition.
• Automobile verticals
Freight payable
• Rates as notified from time to time are applicable.
• Rates separate for loaded rake and empty rake.
• Even if one wagon is loaded, the full rake charged as loaded.
• AFTO shall be responsible to pay all charges and surcharges, fees, cess, duties, taxes
etc. as payable on the basis of notification issued by the Central and State Governments
from time to time.
• All payments made through e-payment only.
Operation of trains
• Trains under AFT will not be merged in the wagon pool of IR.
• AFTO will be the Consignor and Consignee for the consignment.
• The AFTO can either operate their trains between :
 Private terminals equipped to handle the traffic for which AFTO must have
a tie up with such private terminals
 Own Private Terminal / sidings
 Any rail terminal to any rail terminal on IR provided suitable handling facility is
available subject to payment of terminal access charges.
• AFTO is free to run trains over IR provided the railway terminal is open for automobile
booking.
• Indents placed at nominated loading point for the nominated destination point.
• Rakes may be used by IR for traffic other than the AFTO subject to prior agreement
between IR & AFTO
Charges
• Operator shall charge his customers for rail haulage, terminal handling, ground rent etc
on a market determined basis and Rlys does not have any control over it.
• AFTO Rake detained in Rly terminal, detention charge @ Demurrage charge is levied.
No Waival permitted.
• If stabled, stabling charges collected.
• No demurrage charge or detention charge by railways on privately owned wagons in a
private terminal.
• Normal Claims rules applicable.
Nodal officer
• PED/ED ( FM) at RB .
• After commencement of operation-CCM/FM at the nominated ZR
Termination of agreement
• AFTO can terminate the agreement before the expiry of the agreement period by giving
three months advance notice.
• AFTO does not follow the rules for safety of the goods carried or of railway property or
any rules laid down by MOR then can be terminated by giving one months’ notice
without .any liability of Indian Railways.
Dispute resolution
• Decision of MOR is final.
• Non-amicable dispute – referred to arbitration

47
 LIBERALISED SPECIAL FREIGHT TRAIN OPERATOR (LSFTO)

Objective
• To Increase Railway, share in Transportation of non-conventional traffic in HCW &
SPW.
• Increasing commodity base rail traffic
• Introduction of better design of wagons to increase throughput per train
• Provides opportunity to logistics provider/manufacturers to invest in wagon and use
them for their commodity transport or third-party commodity - thus win -win situation
being created
Eligibility
• A registered co. in India under C.A 2013.
• A Subsidiary Co.
• Joint Venture Co. or Partnership of companies.
• Public Sector entity in the logistics business.
• Should have one year experience in any one below,
➢ Transport & Logistics
➢ Port & land terminal operations
➢ Warehousing
➢ Container Train Operations
➢ Manufacturers.
➢ Wagon Leasing
• Applicant being Subsidiary company holding with more than 50% equity, the eligibility
criteria viz experience be may reckoned
• Sick company not allowed
• Change of control before the completion of one year from commercial operations is not
permitted
• However, after one year with the approval of MOR the change of control is permitted.
Registration
• Apply to PED/ED FM along with details.
• Along with the application party has to apply a minimum one rake for a commodity
under this scheme.
• MOR grant necessary approval of registration and procurement
• Approval will be issued by MOR to ZR containing details regarding SFTO Name, rebate,
commodity, Number and type of rake, Handling Terminals etc.
• CCM/FM is the nodal for signing agreement and issue of notification to all concerned
Commodity:
The following commodities which require SPW wagons:
• Bulk Fertilizers
• Bulk Cement
• Fly Ash.
• Bulk Chemicals
• Petrochemicals excluding petroleum products
• Caustic Soda
• Liquid Ammonia
• Bulk Alumina.
• Steel Products require specially designed wagons.
• Molasses
• Edible Oil
• Bulk Food Grain
• RORO service

48
 Agreement and validity
• Agreement for registration under SFTO would be signed by CCM/FM and the party
within six months from date of approval of MOR
• Agreement is valid for 35 years or till the rake is under operational is earlier
• Renewal of agreement - application to be submitted one month in advance before
expiry of agreement
• If terminated- rakes will be ceased
• Responsibility of ZR to keep agreement in safe custody till last rake is operated
• Existing SFTO operate will remain under the same policy, however if they desire to
enroll in LSFTO Scheme, new agreement under LSFTO has to executed.
Procedure for seeking approval of New Rakes
• Procurement of wagons for induction is permitted only with prior approval of MOR.
• Registered SFTO has to apply to PED/ED FM
• MOR will grant permission in consultation with Traffic Transportation Directorate of
MOR and NOC from ZR
Wagons
• Wagons must comply with IRS design and specification and will be inducted after
RDSO inspection, other than IRS design with prior approval of MOR and technical
clearance issued by RDSO.
• SFTO shall develop new wagon design in accordance with the procedure of new wagon
design approvals issued by RDSO.
• Privately procured wagon - inducted into service only after completion of mandatory
safety and quality inspection by MOR authorized agencies.
• Has to procure full rake composition with brake van with 4 % additional wagons as
maintenance spare.
• Brake van will be added to IR General pool in exchange IR will provide brake van
required for SFTO Trains
• SFTO can take wagons on lease from WLC with approval of MOR. However, freight
rebate is given for 20 years minus the expired age of wagon certified by concerned ZR
Maintenance of Wagon
• Maintenance taken care by IR free of cost within the agreement period. If special
components for maintenance are required the same shall be procured by SFTO.
• No haulage charges will be collected to haul the SFT rake to examination depot
nominated by Railways
Terminals
• SFTO will operate between private siding/terminals or its own terminals/sidings be
equipped to handle such trains.
• SFTO can also operate from railway good sheds with recommendation of PCCM on
approval of PCOM.
• In case of change / Modification of terminals for loading/unloading or circuits -
application to be submitted to MOR and approval granted based on the feasibility report
of ZR.
Freight Payable and rebate.
• Wagons inducted for transportation should at least give the same net tonnage per train
as per full rake length notified by IR
• SPW RAKE - 12% freight for 20 years
• HCW Rakes - additional freight rebate of 2% shall be granted on Base freight for each
increase of 10% in throughput per train subject to minimum rebate of 10% for additional
tonnage - 20 years
• No freight will be charged for movement of empty rake to the destination subject to the
condition the empty rake distance is less than or equal to the distance travelled by the
train before unloading.
• If the condition is not satisfied then 50% of freight is collected for a distance over and
49
 above for distance between empty rake travelled and the distance travelled by the train
before unloading
Loading of commodities not covered under LSFTO
In empty Direction
➢ If commodity not covered under LSFTO are loaded in empty direction in approved
circuit, 10% freight rebate of the public tariff for that commodity with Floor rate not
less than Class 100
In loaded direction
➢ Commodities not covered under LSFTO are to be loaded in loaded direction as per
circuit , the operator should get permission . However, no freight rebate is provided.
• SFTO shall be responsible for all charges and surcharges etc .
Operation of Trains
• Trains purchased under this policy will not be merged with wagon pool of IR
• Since rebate is applicable on specific rake and for an specific period, separate
identification will be maintained in TMS with the date of commercial commissioning
• SFTO will be treated as the consignor and consignee will be as per the details given in
FNote by SFTO.
• SFTO shall have tie up with the end users for marketing and arranging traffic
• SFTO shall develop his own terminal or tie up with private siding/terminals for loading
and unloading of traffic.
• In case of other Private terminals SFTO has to submit NOC to the concerned Zonal
railway.
• Indents for loading will be placed from nominated Terminals
• The rakes may be used by IR in an emergency for traffic offered by customer other than
SFTO subject to a prior mutual written agreement between IR and SFTO
• SFTO to carry only identified commodities.
• SFTO shall charge his customer for rail haulage, terminal handling, ground rent on
market determined basis and the railway has no control over such pricing.
Terminal Access charges, Detention/Stabling and wharfage charges
• No demurrage charge collected
• Stabling charges collected - if SFTO is stabled on IR network
• SFTO has to pay Terminal access charge for the entire rake for dealing with rakes at
railway terminals at the time of preparation of RR itself.
• At Railway terminal- detention charges collected for the rakes after expiry of free time
up to the time of release.
• Total permissible free time will as per the type of wagons
• Detention charges - Rs 150/- per wagon per hour or part thereof.
• PCCM/PCOM can notify penal detention charge up to 6 times of the Normal rate.
Ground usage charges
• Ground usage charges collected for use of ground at Railway good shed.
• Free time will be in accordance with the type of Good Shed
Type of Good shed Free Time in Hours

Group – I 12

Group – II 15

Group – III 72
• Free Time of Ground usage charges - Commences after expiry of free time for loading
and unloading.
• Ground usage charges - Will be levied after expiry of Permitted free time till time of
removal of goods from the ground.
• If advance stacking has been availed by the SFTO, Ground usage time will commence
from the time advance stacking has been permitted.

50
• Ground usage charge will be levied per train per hour basis irrespective of the number
of goods on ground.
• Ground usage charges will be levied for full rake at prevailing wharfage rate
• PCCM may apply higher Ground usage charges up to six times the normal rate
Advance stacking permission
• SFTO - advance stacking permission will be 24 hours in advance for loading on an
incoming train
Nodal officer
• Nodal Officer for the implementation of the policy - PED/ED FM, MOR
• Nodal Officer for granting NOC for routes - CFTM
• Agreement signing authority - CCM/FM
Termination of Contract
• Mutually - 3 Months advance Notice period, no residual value of the wagons payable by
IR and he can sell his rakes to any other party
• SFTO not Comply the Agreement term and condition - Rly can terminate by giving one
month notice period and along with penalty will be imposed, however he can sell his
rake to any other party
Dispute resolution
• The decision of MOR is the final

51
 Freight Incentive Schemes
Concurrent Freight Concession:

▪ 6% concession to and from North Eastern States applicable on the discounted NTR

ProcessingProcedure

▪ Customer need not apply.

Short Lead Traffic Concession

• The following concession is granted on NTR for all traffic except coal and coke, Iron
Ore, military traffic, RMC and container traffic booked upto100km

Km Concession %
0-50 50
51-75 25
76-90 10
91-100 Nil

• Concurrent only with 6% concession granted on traffic booked to and from North–East
• Validity may be extended by Zonal Railways by entering into a long-term agreement
(not exceeding 10 years) with the customer
• The agreement shall have clause of enhanced loading commitment supported with
Bank Guarantee. Depending upon the commitment, the percentage concession may
vary from the above rates

Liberalised Automatic Freight Rebate scheme for Traffic Loaded in

Traditional Empty Flow Direction (TEFD)
Objective
• To reduce Empty Running Ratio on IR and to garner additional revenue
• Automatic rebate is given to inter-zonal/intra-zonal traditional empty flow direction
Incentive:
Traffic Charging
Inter –Zonal 20% discount on NTR subject to floor limit of NTR of Class 100 (trainload)
Class 110(wagonload)

Inter –Zonal 15% discount on NTR subject to floor limit of NTR of Class 100 (trainload)
Class 110(wagonload)

Intra –Zonal 20% discount on NTR subject to floor limit of NTR of Class 100 (trainload)
Class 110(wagonload)

Intra –Zonal 15% discount on NTR subject to floor limit of NTR of Class 100 (trainload)
Class 110(wagonload)

Inter –Zonal 15% discount on NTR subject to floor limit of NTR of Class 100 (trainload)
Only one Class 110(wagonload)
intermediate point
Discounted freight rate charged from the first RR itself for traffic loaded in empty flow
directions
52
Lead Restriction:
Short lead traffic of upto 100km will not eligible under this scheme.
Permitted wagons:
Open – BOXN group, BOST group.
Covered- BCN and BCNHL group
Flat wagons and Mixed Steel rakes - BRN group and CONCORD
Permitted wagons for Automatic traffic only
NMG group, BCCNR and BCACM
Permitted Terminals:
Goods sheds, Sidings, Ports, PFTs etc
Restricted Commodities:
Following commodities shall not be eligible under this scheme:
Iron Ore (all Types)
Coal & Coke
Chemical Manures
POL Traffic
RMC traffic
Military traffic
Commodities under Class 100& 100A, LR1, LR2, LR3 & LR3A
Salient features:
Intra – Divisional booking not permitted
Customer need not apply
No other concession granted
No rebooking/diversion/short of destination delivery is allowed except in case of force
majeure conditions.

. Incentive For Loading Bagged Consignments in Open and Flat Wagons

• This scheme endeavour to utilize open and flat wagons for loading of commodities that
otherwise favour covered wagons.
• Introduced to garner additional traffic
• Incentive on NTR
• Cement, china clay, chemical manure, food grains etc – 20%
• Urea, fly ash- 30%
• Minimum lead – 100km
• Minimum chargeable freight after concession should not be less than class 100
• Customer need not apply
• Further, as industry demanded for permitting large sized bags so that it could result in
cost savings to customers, same has been permitted upto 2.5 tons per bag for open
wagons (only)
• Tarpaulins if necessary are provided by customer

53
 Freight Incentive Scheme for Loading Of Fly Ash
Objective:
To generate additional loading of Fly ash and to ensure improved utilization of rolling
stock.
Incentive:
Following incentives shall be granted to Fly ash:

Type of stock Rate of concession or applicable Packing Conditions

class
A
Open 40% concession on NTR of Bagged or Bulk/Loose
applicable class
B 40% concession on NTR of
Flat wagons applicable class Bagged
C
Covered wagons
To be charged at NTR of class LR1 Bagged

Permitted Terminals:
All terminals
Lead Restriction:
None
Processing Procedure:
Customers need not apply for availing this incentive. The same shall be granted through
TMS on compliance of the features of the scheme.
Conditions:
• Bagged Fly ash should be packed in uniform bags of standard size.
• Loose flyash-Customer to ensure hydrating the fly ash and covering with Tarpaulins.
• Tarpaulins, if any, for covering the bagged flyash in open wagons should be provided by
the customer at their own risk.
• The customer should furnish undertaking in FN giving their consent to load fly ash and
should bear full risk.

54
 Revised Round Trip Tariff (RTT)
Under this policy, freight discount is granted to traffic if customer offers to book traffic in
onwards as well as return direction. The return traffic under this traffic is charged at lower
of the two classes of onward vis a vis return traffic, effectively both onwards at return
traffic/commodities are charged at lower class among these, subject to terms and
conditions applicable, except for coal and coke for which maximum discount is capped at
10%. Rail users desirous of availing incentives under RTT policy shall be required to apply
to Zonal Railway.
• Customer(consignor) should offer traffic in return direction
• Return traffic should originate from destination of o/w traffic or from a point 200km from
destination
• Return loading should begin within 24 hours of the release of o/w rake at destination
• Charging of both directions :

Direction O-D Commodity Class Freight payable

Scenario I
Outward A -B X 150 At class 150

Return B/C-A y 160 At class 150

Scenario II
Outward A -B X 150 At class 150

Return B/C-A y 140 At class 140 less the diff of

freight between NTR of
class 150 and 140
Scenario III
Outward A -B X 150 At class 150

Return B/C-A y 150 At class 150 less 10%

discount on NTR in both
direction

• All terminals excluding goods sheds and PFTs but including ports eligible
• Applicable to block rakes only
• RRs linked by TMS and NTR is compared
• Consignor of o/w traffic and consignee of return traffic must be same. Consignor can
be the same for both directions
• RRT indent at return points gets overriding priority for loading (since rake already
allocated)
• Exempted traffic: Iron ore, containers, POL, automobiles, military, RMC, traffic below
NTR of class 100

55
 Long Term Tariff Contract
Introduction
• First of its kind to provide certainty in logistic operations for the Railways as well as the
customers.
• Long term assured traffic to railways and certainty in tariff rates as well as freight
rebate to the customers.
Objectives
• Long term freight revenue commitments from the customers.
• Stability and certainty of freight rates to the customers and assured supply of wagons.
• Generation of additional traffic volumes and revenues for railways.
Definitions
• "Gross Freight Revenue" (GFR)-
Total freight revenue offered by the customer for the transportation of commodities.
• "Minimum Guaranteed Gross Freight Revenue" (MGGFR)-
➢ Annual minimum gross freight revenue committed by the customer for each individual
Financial Year of the Agreement.
➢ MGGFR would normally be higher for each subsequent year with pre agreed annual
incremental growth for the entire period of the Agreement.
• "Actual Gross Freight Revenue" (AGFR)-
Total revenue realized by Railway from a customer for transportation of commodities
by way of freight charges
• Benchmark Gross Freight Revenue" (BGFR) –
➢ Revenue over which the incremental growth of GFR would be calculated.
➢ For the first year, BGFR shall be the actual GFR achieved during the previous twelve
months
➢ From second year onwards, it shall be equal to the MGGFR of preceding year.
• "Rail co-efficient"-percentage share of railways in the total dispatches by the Customer.
Excluded commodities
• All commodities with classification below Class-100
• Coal & Coke
• Iron ore
• Military traffic, POL and RMC
• Container Traffic
• Automobile Traffic
Eligibility Criteria
• Customers willing to come under LTTC, if already loading or giving a traffic of one
Million Tonnes per annum (Both Outward & Inward) in the previous year.
• New Traffic or New entrant is eligible subject to the condition they commit to provide
traffic more than three million Tonnes over the entire agreement period & atleast
one Million tonnes during the First year itself.
Concurrent Concession
• 6% Concession to traffic booked to and from NE
• TEFD
• Concession for loading bagged consignments in open and flat wagons
• In addition to this, customer is also eligible for discounts on account of assisted
siding policy, Various wagon investment schemes and terminal development
scheme.
• However, Floor rate will freight applicable to class 100.
Non concurrent concession
• STS, FFS and concession to short lead traffic shall not be considered for rebate as
well as GFR under LTTC

56
 Features
• Zonal railway should enter into agreement with the customer.
• If customers have terminal in multiple zone, individual agreement with respective
zonal railway can be entered subject to the condition that he should have offered a
minimum of 1 Million tonne per annum.
• If customers desire to have single agreement for multiple zone, then he can enter
into a single agreement for multiple zone where he offers a maximum traffic
• He is free to enter into single agreement for some zone and left over zone may be
combined shall be executed in single agreement.
• Utmost care to be taken while entering agreement that all customers plants are
included and this prevents shifting of traffic from one location to other location with
the zone for seeking concession without additional traffic.
• Proposal to be submitted to CCM , CCM shall process in consultation with COM &
FA& CAO and with personal approval of GM agreement signing & Executing
authority is CCM of the zone.
• If multiple zones are involved, then the CCM of Maximum traffic offering zone will be
agreement signing authority and other zone CCM & FA& CAO of executing Zone
will be add as witness.
• MGGFR for each year will be given by the party by adding up all revenue of traffic
offered by him.
• MGGFR for each year will increase by 5% annually.
• For calculating AGFR either outward traffic or Both Outward & Inward is taken into
account.
• Restricted commodities is not taken into account for calculating AGFR.
• LTTC concession can be availed either by consignor & consignee. in case both of
them are enrolled in LTTC means the consignor will be granted the concession.
• Separate contract ID will be printed in RR for accountal of AGFR.
• Agreement period should not be less than 3 years and maximum to be 5 years in
Total.

57
 Rebate Structure

% increase in Gross Freight Revenue (GFR) Rebate on Acutal Gross

over and above the benchmark GFR Freight Revenue (AGFR)

0 - <=5 0

>5 - <=10 1.5

>10 - <=15 2.5

>15 - <=20 5

>20 - <=30 7.5

>30 - <=40 10

>40 - <=50 12.5

>50 - <=60 15

>60 - <=70 17.5

>70 - <=80 20

>80 - <=90 25

>90 - <=100 30

Above 100 35
• First year - incremental growth in actual GFR over the GFR of the previous 12
Months
• Second Year - MGGFR of the proceeding year committed by the customer at the
time of signing the agreement will be benchmark GFR and rebate will be given on
increment in BGFR.
• Rebate accrued under this scheme will be credited to the party within 45 days after
completion of each year.
• FA & CAO will be the payee for rebate.
• Increase in freight will be effected from the next year only.
• To neutralise the impact of freight increase in AGFR, MGGFR & BGFR the formula
is employed
• Modified MGGFR= MGGFR for the commodity x % increase in freight rate for that
commodity
• Modified BGFR = BGFR for the commodity x % increase in freight rate for that
commodity
• Rebate in case of retention of Traffic - for retention of Traffic at the same level as of
previous year AGFR for The companies who have already having high volume of
traffic and offering Huge amount of GFR some rebate is offered on the absolute
GFR

58
• Rebate is given subject to the condition that previous year AGFR is being met.(Total
Volume of Traffic)
• Rebate on Total Volume
Rebate on
Total volume of Traffic
Corresponding Freight
(MT)
Revenue (%)

• 0 - <=5 • 0

• >5 - <=10 • 0.5

• >10 - <=15 • 1.0

• >15 - <=20 • 1.5

• >20 - <=25 • 2.0

• >25 - <=30 • 2.5

• >30 - <=35 • 3

• >35 - <=40 • 3.5

• >40 - <=45 • 4

• >45 - <=50 • 4.5

• Above 50 • 5.0
• For New Traffic -during first year shall be eligible for Flat 2.5% rebate on GFR.(fulfilment of
prescribed conditions)
• Arbitration - GM of the concerned Zonal Railway is the competent authority
• Termination of Contract - 3 months notice period on either side and in case of continuous
default rebate for the termination year will not be refunded.
• Renewal of contract is done by mutual agreements.

59
 Transportation Products:

Railways offer transport services primarily in Block Rakes. In addition, several other
transportation options differentiated by volume of consignment at varying tariff rates
are also available as described below,
▪ Block Rakes
▪ Mini Rake (Covered wagons)
▪ Two Point Rake (Covered wagons)
▪ Multi Point Rake (Covered wagons)
▪ Two and Multi Point Rake (Other than Covered wagons) Steel
traffic
▪ Rakes from Two Originating Terminals (Covered wagons) for
other than steel traffic
▪ Rakes from Two Originating Terminals (Other than Covered
wagons)
▪ Cargo Aggregator Transportation Product

Traffic which is not covered under any of the transportation products mentioned below
will be charged at Wagon load rate.

Block rake
▪ It is train carrying wagons for single destination
▪ The size of a rake forming block rake for different types of wagons is notified
by the Railway Board
▪ Single point Block rake with a wagon composition as notified by RB will be
booked at Trainload Class rate.
Conditions
• Both the Originating and Destination terminal should be notified as either Full
Rake Terminal or Half Rake Terminal.
• Number of wagons indented must be applicable for standard rake size of Block
Rake.
• In cases where even the minimum number of wagons qualifying for Block Rake
cannot be supplied by the Railway against trainload indent due to shortage of
wagons, operating or any other constraint arising out of unforeseen
circumstances in a specific instance such as accident, blockade etc., the rail
user(s) shall not be penalized. In such cases also, the benefit of trainload rate
can be extended as follows:
 CGS to contact the control office with regard to non-supply of
indented number of wagons for trainload.
 AOM/DOM should record reasons for non-supply and issue a
numbered message extending the trainload rate benefit.
 Giving reference of the numbered message in the Railway Receipts,
GC/CGS should extend trainload rate benefit.
 The message should be recorded and filed for inspection by TIA/CMI.
 Trainload rate is applied
• Trainload rate benefit shall be extended to block rakes at the serving station by
clubbing wagons loaded from more than one siding served by the same station
or loaded partly from a siding and partly from the station serving that siding for a
single destination.
• Trainload benefit shall be extended to trains originating from one point and
terminating at two points provided that the two points are either the serving
station and its siding or two sidings of the same serving station, or two sidings

60
 notified as independent booking points but operationally branched out from the
same station.
• For rake loaded with two or more commodities, the required number of total
wagons should be loaded with. In case more than one commodity is loaded in a
wagon, freight will be charged at the higher-class rate of the goods which the
wagon contains.
• Maximum number of commodities loaded in wagon should not exceed two.
• Indents for BCN groups of wagons and BCNHL wagons will be treated as
interchangeable for the purpose of supply of rakes. Trainload rate conditions will
be applicable as per type of stock supplied. The customer must place an indent
for 42 BCN / 58 BCNHL wagons.
• Indents for BOST and BRN/BRNA/BRNAHS/BFNS wagons will be treated as
interchangeable for the purpose of supply of Vegas however trainload rate
conditions will be applicable as per the type of stock supplied.
• This product is applicable on all types of wagons and systems (BG & MG) subject
to compliance of all conditions mentioned herein above.
• The customer will have to pay all other applicable charges like busy season
charge, congestion charge, development charge etc.
Mini Rake
Mini Rakes can be loaded at Trainload Class rate under the following conditions.
Conditions
• Mini Rakes are permitted only in covered wagons.
• Mini Rakes will have a minimum composition of twenty wagons.
• Mini Rakes can be loaded to and from any notified full or half rake terminal.
• Free time for loading/unloading of Mini Rakes will be 5 hours.
• Mini Rakes cannot be loaded with Coal, Ores and RMSP.
• A Supplementary charge will be levied on base Freight Rates for the period
October to July, as under:
Distance Supplementary Charge
0 to 1000 Km 5%
Beyond 1000 to 2000Km 7.5%
Beyond 2000 Km 10%
Two Point Rake (Covered Wagons)
Two Point Rakes can be loaded at Trainload Class rate under the following conditions.
Conditions
• This product is available only for covered wagons for specific combinations
notified by Railway Board,
• Originating terminal should be a notified full or half rake terminal.
• Both destination terminals should be a notified full or half rake terminal.
• Destination terminals should not be more than 500 Kms between two stations.
• A minimum of 10 wagons should be loaded for each destination.
• The total number of wagons indented and loaded must conform to the Block
Rake composition as notified for various types of wagons by the Railway Board.
• A Supplementary charge of 5% will be levied on Base Freight Rates for two-
point rake for the period October to July,

61
 Multi Point Rake (Covered Wagon)
Any Multi Point Rakes can be loaded at Trainload Class rate under the following conditions
Conditions
• This product is available only for Covered Wagons
• Originating terminal should be a notified full or half rake terminal.
• Each destination terminal should be a notified full or half rake terminal.
• No two destination terminals can be more than 200 kms apart.
• A minimum of 10 wagons should be loaded for each destination.
• The total number of wagons indented and loaded must conform to the Block
Rake composition as notified for various types of wagons by the RB.
• A Supplementary charge of 20% will be levied on Base Freight rates for multi-
point rakes for the period October to July,
Two and Multi Point Rake (Other than Covered Wagons)-Steel Traffic
Any Two and Multi Point Rakes for other than Covered wagons for steel traffic can be
loaded at Trainload Class rate under the following conditions,
Conditions
• Originating terminal should be a notified full or half rake terminal.
• Each destination terminal should be a notified full or half rake terminal.
• A minimum of 10 wagons should be loaded for each destination.
• The total number of wagons indented and loaded must conform to the Block Rake
composition as notified for various types of wagon by the RB.
• No two destinations terminals can be more than 500 Km or apart.
• For the period October to July, a supplementary charge of 5% on two-point rake and
20% on multi point rake will be levied on base freight rates.
Two and Multi Point Rake (Other than Covered Wagons) for other than Steel Traffic
Any Two and Multi Point Rakes for other than Covered wagons for other than steel traffic
can be loaded at Trainload Class rate under the following conditions,
Conditions
• Originating terminal should be a notified full or half rake terminal.
• Each destination terminal should be a notified full or half rake terminal.
• A minimum of 10 wagons should be loaded for each destination.
• The total number of wagons indented and loaded must conform to the Block Rake
composition as notified for various types of wagons by the RB.
• For the period October to July, a supplementary charge of 5% on two-point
rake and 20% on multi point rake will be levied on base freight rates.
Rakes from Two Originating Terminals (Covered Wagons)
Rakes from two Originating Terminals can be loaded at Trainload Class rate under the
following conditions.
Conditions
• This product is available only for Covered wagons from notified / specified
terminals.
• Two-point combination from which loading is permitted will be notified by ZR
concerned.
• In case, the two terminals are on different railways, the Railway issuing
notification will take recorded prior consent of the concerned Railway.
• Each Originating and Destination terminal should be notified full or half rake
terminal.
• Loading of rakes from two terminals can be done only if the two loading
terminals are less than 200 Kms apart.
• A minimum of 10 wagons should be loaded from each originating terminal.

62
• The total number of wagons indented and loaded must conform to the Block
Rake composition as notified for various types of wagons by the Railway
Board.
• The customer cannot cancel the indent at one point after he has started
loading at the other point. If he does so, the entire freight will be charged
irrespective of loading only one portion of traffic.
• For the period October to July, a supplementary charge of 5% on two-point
rakes will be levied on Base Freight Rates.
Rakes from Two Originating Terminals (Other than Covered Wagons)
Rakes from two originating terminals in other than covered wagons can be
loaded at Trainload class rate under the following conditions.
Conditions
• Notified Two Point combinations from which loading are permitted is notified
by the RB.
• Each originating and destination terminal should be a notified full or half rake
terminal.
• A minimum of 10 wagons should be loaded from each originating terminal.
• The total number of wagons indented and loaded must conform to the Block
Rake composition as notified for various types of wagons by the Railway
Board.
• The customer cannot cancel the indent at one point after he has started
loading at the other point. If he does so, the entire freight will be charged
irrespective of loading only one portion of traffic.
• For the period October to July, a supplementary charge of 5% on two-point
rakes will be levied on Base Freight Rates.

63
 Cargo Aggregator Transportation Product
Objective:
• The product aims to facilitate cargo aggregation and thereby, expand the commodity basket on
Railways.
Applicability:
• Cargo Aggregator transportation Product shall be applicable for loading of all commodities
except the following:
i)Coal and Coke (including Petroleum coke) commodity group
ii)Minerals and Ores commodity group
iii) Iron or Steel Commodity group
Iv) All types of Slags
Permitted Terminals:
• Goods Sheds, PFTs, GCT
Lead Restriction:
• Minimum 300 Kms.
Permitted Wagons:
• Only Covered wagons such as BCN/BCNA/BCNAHS group and BCNHL group.

No. of wagons Commodity Freight Rate

A Individual wagons Any number As per applicability Trainload rate for each
loaded with single of wagons wagon for the
commodity commodity loaded.
B Individual wagons Any number of wagons As per applicability Trainload rate for
loaded with 2 Each wagon for the
commodities higher class of
2 commodities loaded.
C Individual wagons Not more than 10 wagons As per applicability Train load rate at Class
loaded with for block rake and not more Cement & Clinker Rate of 120 for each
More than two than 5 wagons for Mini Rake excluded wagon.
Commodities
D Individual wagons Not more than 20 wagons As per applicability Train load rate at class
loaded with for block rake and not more 130 for each wagon
More than two than10 wagons forMini Rake loaded with
Commodities more than 2
commodities

• The combination of commodities permitting for loading under the policy are given below :
I. (c) along with (a) and/or (b)
II. (d) along with(a) and /or (b)
Both (c) and (d) will not be permitted simultaneously in a rake.
Floor Rate:
NTR of Class LR –I
Conditions:
• To avail the benefit ,one has to register itself as ‘Cargo Aggregator” in eRD module by
depositing a non-refundable deposit of Rupees One Lakh through online payment mode.
• Indent will be placed for a standard Rake or a Mini Rake composition. If CG does not have
details of FN at the time of indent, indent can be placed with a single FN .
64
• If registration already made, Change of commodity allowed upto 20% of the wagons
indented.
• Both the originating and destination should be full /half rake terminal.
• Freight charged for each wagon for the PCC of the wagon at class rate indicated.
• Said to Contain RR will be prepared on prepaid basis at owner’s risk. Multiple RR can be
issued .
• The concerned Customer has to pay freight and all other charges.
• No concurrent concession of 6% will be allowed .
• In case of misdeclaration, wagons loaded with more than two commodities will be charged
at Class 200 and for wagons loaded either single or two commodities ,the normal
misdeclaration rules applies.

65
 Parcel Management System(PMS)
The are 5 Modules available in Parcel management System
Forwarding module
Booking module
Loading module
Un loading module
Delivery module

Salient features of parcel management System

• Parcel booking in Indian Railways has been computerized by implementation of PMS in
selected stations.
• New format of PWB,LT, Gate pass & Money Receipts are introduced
• PWB & LT has 4 foils
➢ First Foil- Receipt
➢ Second Foil- Accounts
➢ Third Foil-Invoice
➢ Fourth Foil- Record
• Parcel Way bill and Luggage Ticket has a Preprinted stock No. consists of 7 digits
• At the time of printing the PWB & LT, the system generates a 10 digit unique No.
• The Unique no. generated by the system is Known as Progressive Reference Record(PRR)
• Direct capture of parcel weight electronically by the System
• Universal booking windows for all destinations
• Single window for weighment and cash payment
• Advance unloading guidance about inward parcel from the system can be taken at
destination
• Tracking parcel with help of barcode technology and through SMS
• Train Master entry along with scales by Railways
Booking
• Inputs are given by the operator based on Forwarding note submitted by the customer
• Freight is calculated by the System automatically
• Pre printed PWB/LT is inserted in printer
• Pre – printed Stock no. is entered in the system
• Mis match PWB/LT should be cancelled
• All the MIS reports are generated by CRIS
PMS Working procedure
• ID/pass word of the commercial staff is entered
• Private cash declared in the system
• Forwarding Note executed by the customer
• PWB/LT issued
• At the end of the shift, left over packages are handed over to next incoming clerk
• Cash summary is taken by the booking clerk at the end of the shift.

Working procedure- Loading /Un loading

• Direction wise loading guidance taken from the system
• Parcels are shifted to Platform with the Loading Guidance.
• Porter name also entered in the system
• Inward parcels entered in system
• Wharfage charges are calculated automatically by the system based on the time of un
loading
• Delivery clerk issues gate pass duly collecting the dues(if any).

66
Benefits of PMS

Customer
• Customer can Track latest status of the parcels through internet and SMS
• Reduction in time required for weighment and booking
Staff
• Automatic freight calculation based on latest rules
• Reduction in human errors.
Railways
• Loading according to priority thereby curtailing malpractices and complaints
• Beneficial to Accounts for internal check
• Reduction in Claims
• Potential for revenue generation based on improvement in service.
Computer Peripherals involved in PMS
• Centralized servers in CRIS
• Thin Clients/printers/switches/UPS at booking offices
• Thin Clients/Electronic weighment machines/ switches/UPS in godowns
• Barcode printers at common booking window
• Mobile Barcode scanners at platforms and inward godowns with GPRS connectivity

Handheld Mobile devices at Parcel offices over GPRS Connectivity

Handheld mobile devices with barcode scanner facility, used for transmitting the PMS
Data to the PMS server at CRIS New Delhi in Real time fashion, through GPRS network.

Data Warehouse
Online database holds the data only for 3 months after booking. Data more than 3 months old is
sent to another database capable of holding voluminous data, which is called data warehouse.
A separate application has been made to access this archived data. A person can at any moment
of time can fetch data from data-warehouse for various MIS reports.

67
 Parcel Cargo Express Train (PCET)
Parcel cargo Express trains are being operated on End to end basis and Round Trip only
Minimum Composition
• First Six Months-15 parcel Vans+ SLR(2 Compartments- 4 tonne each)
• After Six Months-20 parcel vans+ SLR(2 Compartments- 4 tonne each)
• Composition can be increased up to 24 parcel vans
• Reserve price for the extra vans shall be collected on Prorata basis
Eligibility criteria
• Registered leaseholders and others having turnover of not less than Rs 10 crores per
annum during the last three financial year
Reserve Price
• Reserve Price(RP)-1.25 times of Single journey freight at Scale ’P’
• PCCM can reduce RP with concurrence of PFA but it should not be less than Scale ‘P’
Duration of Contract
• Lease period- 6 years
• No escalation of Lump sum Price- for first 3 years
• Fourth year onwards- 10 % escalation
• Not permitted for Medium term, short term, temporary or day to day basis lease.
Payment of Freight
• Pre-payment of Lump sum leased freight should be paid for each trip separately.
• Collected for entire train or minimum 15 vans, on the day of loading.
• Calculated as per actual PCC of the parcel van supplied.
Frequency of Service
• Minimum – atleast 2 trips/month
• Maximum- As per demand/Availability of van
• CCM/FM can re-schedule the trip with mutual consent.
• Punctuality of train- Time table prepared by originating railways
Free Time
• Loading and unloading g -as per type of van
Demurrage & wharfage Charges
• Normal rules for detention of Rolling Stock and delay in removal of parcels shall be
applicable
Free time for stacking/Removal
• One day advanced stacking and one day removal time will be given at both ends
• ZR can be extended with the approval of GM
Free space to leaseholders
• Free space of 15’x 15’ may be provided till the period of operation of contract at
suitable location.
• At both originating and destination.
Free escort with PCET
• 1 escort permitted to travel free from originating to destination by same train .
• Can be changed at any enroute point during journey.
Procedure for preparation of Manifest
• No RR will be issued
• Only Money Receipt will be issued for lumpsum leased freight
• Leaseholder have to prepare manifest, in five copies, for each VPU and signed
Others
• Punitive charges will be levied for over loading.
• Restricted Goods are not permitted.
• In case of misdeclaration,a fine of Rs 10000 shall be imposed on the leaseholder.

68
 Modified Comprehensive Parcel Leasing Policy – MCPLP

Aim:
• To maximize utilization of unutilized / underutilized Parcel space in Brakevans( SLRs)
• More Customer friendly. Introduced in November 1991.
• Claims are avoided.
• No need for Railway staff for loading and unloading.
Conditions:
• Customer desirous, should register with the Railways and Registered holders can only
participate in the tenders floated and also for temporary and day to leasing.
Categorization of Service:
• Categorization of Train / service will be notified separately for up and down direction of
the train by the Zonal Railway concerned on which the Up and Down train originates.
Applicability of the scheme:
• Brake van( SLR)
• Parcel van ( VPU, VPH, VP , VPR)
Eligibility for lease holders:
• Any person / Cargo operator or transporter with Indian Citizenship
• Agency or Company registered in India.
• Manufacture company of JVC registered in India are eligible.
• Should have been a registered lease holder at the Division or Zonal HQ where tenders
are floated ( Separately for each Division , Zone)
Registration:
• Validity for 5 years.
• Registration Fees:

Category For Tender of Annual Turnover Registration Fees

Rs.
A SLR, VP 2 Crores 1,00,000/-
B SLR 50 lakhs 50,000/-

Space to be Leased out

• SLR – One compartment of 4 tonne( minimum) and additional units also permitted.
• VP – Entire van of 18/25 tonnes
• Separate tender will be floated for each 4 tonne in case of SLR
• 2 SLR Train/ 3 or 4 SLR Train and Reversal of Train Engine
Lease Non Lease
2 SLR Train Both 4 T in FSLR One 4 T Compartment in
One 4T of RSLR RSLR to be kept for
loading Luggage,
Perishable, New print and
IMS parcels.
3 / 4 SLR Train All except one 4T from One 4 T compartment for
Originating station to Final each destination
destination.
Reversal of Train One 4 T in FSLR One 4T compartment
Engine One 4 T in RSLR

69
 Order of Priority for leasing of SLR
• Originating station to Destination.
• Originating station to Intermediate station.
• Intermediate station to Destination station.
• Intermediate station to Intermediate station.
Duration of Contract.
Type of Lease Period Mode
Long Term Lease 5 years Open tender
Short Term lease 2 years Open tender
Temporary Lease 30 /60/90 days at a time Quotation

Day to Day Lease Maximum of 10 days at a time Quotation

Note;
• There will be no escalation in first 3 years in LLF.
• Annual escalation of LLF at the rate of 10% per annum on the LLF of the 3 immediate
preceding year shall be applicable from the fourth year onwards.
• Parcel vans can be leased out only for Long term, on round trip Basis through Open
tender.
• Parcel vans is not permitted on Temporary or Day to Day lease.
- Agreement to be executed with the successful bidder.
- Lease holder can terminate the contract giving 60 days notice without forfeiture of SD.
- Railway can terminate the contract by giving notice of three working days.
- Before one year party can not opt for termination.
Payment of Lumpsum Lease Freight (LLF)
• Prepayment of Freight is compulsory.
• Payment should be made one day advance
• Late remittance – 5% surcharge – but before loading.
• In the case of round trip – 50% to be remitted at each end.
• Surcharge – Development surcharge will be applicable on LLF,
• Service tax as applicable will have to be collected.
• Surcharge on bulky article will not be collected.
• Money receipt will be issued.
• If the lease holder fails to load, the leased freight will be forfeited.
Note : There shall be no escalation of LLF during the contract period on account of
Budgetary or other increase in the tariff rates.
Manifest
• No PWB will be issued for leased traffic.
• Digital payment receipt certificate verifiable on IREPS ,will be generated for the money
paid by the contractor as advanced lump sum freight and the same shall be visible on
PMS.
• Party will prepare manifest in 4 copies and sign
 Record copy – at loading station
 Lease holder record copy
 One copy kept in the leased portion – unloading station record
 Authority to remove consignment from destination station.
• Details in manifest – Train No. , Date, Details of leased space, MR Number and details
of Lumpsum freight paid, Number of packages loaded and weight.
• Loading and unloading will not be supervised by Railway staff.
• At destination , lease holder will take delivery of the packages on the strength of manifest
duly signed and stamped by Railway staff.
70
 • Content of each package / consignment to be mentioned in the manifest , put (POL)
Paste on Label or through ink on each package.
Loading /Unloading
• Will be done by the lease holder.
• Can bring 2 hours before departure of trains at originating station. Unloaded packages
should be removed within 2 hours after actual arrival.
• Normal wharfage charges applicable after the above time limit.
Multi-Disciplinary Team
• To ensure customer friendly service to lease holder and to provide single window
clearance.
• Commercial (Parcel Office Staff), Mechanical staff and RPF will comprise the team.
• This team will interact with lease holder for solving all their issues.
Over loading & Penalty
Weight > PCC but Weight > PCC+ Weight > PCC+
within Tolerance Tolerance (SLR) Tolerance (parcel
(SLR/Parcel vans/ vans/indented parcel
indented parcel special special train/leased
train/leased PCET) PCET)
(and the total weight of
the train remains within
the tolerance limit
prescribed for the full
rake)

Normal freight for 1. Lump sum leased 1. Lump sum leased

excess weight freight for excess wt freight for excess wt
+ +

2. punitive charge: 2. punitive charge:

2 times scale R rate 2 times scale R rate if

for entire excess wt overloaded upto 3 T incl
for Origin- POD km LT/

+ or

3. penalty : 6 times scale R if more

than 3 T incl LT) for
Rs 10,000/- per
excess wt for Origin-
compartment/vehicle
POD km
+
+
4. any other punitive
3. penalty :
action
Rs 10,000/- per
compartment/vehicle
+

4. any other punitive

action

71
 Claims:
• Railways is not responsible for any claim/compensation for any reason if carried in seals-
intact condition
• No PCEV to be realized from lease holder
Other instructions:
• Lease holder solely responsible for canvassing, acceptance, booking, handling and
delivery of parcels
• Lease holders to load only such commodities as permitted to be booked as parcels by
Railways
• Livestock not permitted
• Commodities listed in Red tariff not permitted
• Fine of Rs.50,000 for false declaration, in addition to cancellation of contract
• Any damage to BV or platform or any other Railway property to be made good by lease
holder
• In case of derailment due to overloading, penalty Rs.50,000 imposed on the lease holder
in addition to cancellation of contract and derailment charges

72
 Merry-Go-Round (MGR) System

Objective

• To provide an economical and reliable alternative short lead traffic.

Terms and Conditions

• All proposals for MGR System should be approved by the GM of the concerned ZR on
the recommendations of the Committee consisting of COM, CCM & FA&CAO of the ZR.
• Both end terminals shall be privately owned. Necessary infra-structure for efficient
loading and unloading operations to be provided by the party.
• Should have FOIS Connectivity and should be operated under TMS and enabled for e-
payment of freight and other charges to the railways.
• The system shall be provided by the party at their own cost.
• Rail track should be provided by the customer. The track should be fit for running of
goods train with axle load of 22.9 tonne at a speed not lower than 40 kmph.
• Signalling equipment shall be provided by the Railways at Customer’s cost.
• Customer to maintain the terminals, rail track and other assets owned by them. However,
the responsibility for maintaining the terminals, rail track and other assets may be
entrusted to railways on payment of usual charges as per separate agreement for this
purpose.
• Railways will provide locos, wagons, brake-vans and other rolling stock as per
requirement for running of the rakes under MGS System.
• Railway will deploy one rake of BOBRN or BOXN as the case may be. Customer should
offer loading of minimum one rake per day under the MGR System. More than one rake
will be supplied if there is justified need.
• Terminals at both ends will operate round the clock.
• Permissible free time

Type Loading (In Hrs) Unloading (In Hrs)

BOBRN 3.00 2.00

BOXN 3.00 5.00

• Normal demurrage rules will apply at loading / unloading terminals for detention of rake
beyond free time only in the case where loading / unloading both for MGR and IR system
take place and co-exist.
• Customer to provide an in-motion weighbridge at the loading point to prevent
overloading. If overloaded, extant punitive charges shall apply.
• If railways fails to provide rolling stock / crew on demand beyond 48 hours, the period
shall be treated as ‘Dies-Non’. The loss in loading due to dies – non period shall be given
exemption from levy of penalty.

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 Charging of MGR Traffic
• Lump-sum rates shall be charged under the MGR System which would depend upon
the number of trips to b loaded per day per rake (with same rake) and the lead of traffic
(distance slab)
• 5 charging slabs for BOBRN Rake and 3 Charging slabs for BOXN Wagons as given
below,

BOBRN BOXN

<= 1 Trip / day <= 1 Trip / day

>1 to <= 1.5 Trips / day >1 to <= 1.5 Trips / day

>1.5 to <= 2 Trips / day >1.5 Trips / day

> 2 to <= 2.5 Trips / day

> 2.5 Trips / day

• Number of trips per day per rake will be arrived at by dividing the total number of
loaded trips committed by the customer for the full year divided by 365.

Illustration :-

• If party informs railways that they are not able to utilize the rolling stock due to
unavoidable reasons for 48 hours or more, railways shall have the right to withdraw the
rolling stock so as to prevent idling of valuable resources and such period shall not be
treated as dies-non for the purpose of calculation of number of trips per day.
• If the number of trips loaded in a year is less than the stipulated number of trips, a
penalty of 4% on freight paid on actual number of trips loaded in a year shall be
recovered from the party for non-fulfilment of commitments. However, the sum total of
freight paid and penalty thereof should not exceed freight for committed number of
trips.

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• Since the actual number of trips loaded in a year will be known only at the end of the
year, Railways shall make arrangement of Letter of Credit / Bank Guarantee etc, to
ensure recovery of undercharges. A clause to this effect should be finalized and
included in the agreement.
• No charge under Dynamic Pricing Policy shall be applicable under this Scheme except
Development Charge.
• All relevant commercial rules and charges as amended from time to time, would be
applicable, unless specifically mentioned to the contrary.

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 Container Rail Terminal

• CRT – Railway owned terminal notified as CRT and permitted for operation of
container trains by Private Container Operator (PCO)

General Guidelines
• Operation of handling of conventional trains will be given preference. Railway’s business
interest are not compromised.
• ZR may notify one or more CRTs at a railway owned terminal depending upon the
assessment. Every CRT will have a capacity to deal with one container train only at a
time.
• Common user facility for all the PCOs. All PCOs will have access on a “first come first
served” basis.
• Use of ground permitted to only one PCO at a time.
• No CRT will provide container or cargo storage facilities. No staff should be deployed on
exclusive basis for any CRT. No permanent container or cargo storage facility will be
provided at any CRT.
• All CRTs will function round the clock. Relaxation with the personal approval of GM.
• Custody, security and responsibility for the containers and cargo on ground awaiting
removal, stuffing, de-stuffing, unloading or loading will be with the PCO.

Terminal Access Charge

• PCOs dealing with their container trains at railway owned terminals notified as CRT will
have to pay Terminal Access Charge (TAC) at the rates notified from time to time.
• In case of terminals owned by PCO, TAC is not leviable.
• TAC levied on per rake basis irrespective of the actual rake composition or actual
number of containers on a train or actual number of wagons or containers handled at the
CRT.
• TAC collected at the time of preparation of RR. Methodoloy for levy of TAC is,

Type of rake handling at CRT TAC

Loaded rake in and empty flats out 1 x Rate of TAC

Empty flats in and loaded rake out 1 x Rate of TAC

Loaded rake in and loaded rake out 1.5 x Rate of TAC

Chasis handling 1.5 x Rate of TAC

• “Loaded” means flats loaded with either empty containers or containers loaded with
goods.

Permissible Free Time and Detention Charge for Use of CRTs.

• Total Permissible Free time at CRTs – For loading and/or stuffing the containers and/or
unloading and/or de-stuffing the containers on a container train will be 9 Hours,
irrespective of the activity or activities done on the rake and number of operations
performed.
• Free time commences from the time of placement of the first wagon and considered
released when the last wagon of the rake is released.
• Beyond permissible free time, detention charge will be levied. Detention charge levied
for 45 BLC wagons irrespective of the actual no of wagons or containers in the rake.
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• Detention charge = prevailing demurrage charge (At present, Rs. 150/- per wagon per
hour or part)
• Higher detention charge upto 6 times – CCM/COM.

Ground Usage Charge

• Levied for the use of ground at CRT.
• Free time permitted for the use of ground at the CRTs.
• Permissible free time = Wharfage rule.

Type of Goods Shed Free Time (in hours)

Group – I 12

Group – II 15

Group - III 72

• Free time starts from the expiry of the free time for loading and/or unloading the container
traffic.
• If advance stacking has been availed by PCO, Ground usage charge will be levied after
making allowance for permissible gree times for advance stacking and for ground usage.
• Levied on per train per hour basis irrespective of the number of container or the goods
on the ground.
• Ground usage charge levied for full rake of 45 wagons at the prevailing rate of Wharfage
charge.
• Higher Ground Usage charge – Upto 6 times – CCM of ZR.

Ground Usage Charge for advance stacking

• Advance stacking on the ground of any CRT for 24 hrs free of any charge for loading on
an incoming train.
• Ground Usage charge levied after expiry of free time. Not levied till the placement of
empty container rake for loading.
• Rake supplied only after expiry of the permitted time or completion of stacking whichever
is earlier.

Waiver of Detention charge and Ground usage charge considered under justified
circumstances as per extant instructions as applicable t5o waiver of
Demurrage/Wharfage charge.

Development charge
• Development surcharge of 5% is leviable on the Haulage charges for the container
traffic.

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 Procedure for notifying a railway owned terminal as CRT.
• Demand will be processed by CCM in consultation with COM if found justified and
necessary.
• If justified, such terminal will b notified as CRT with the personal approval of GM.
• All Group III goods sheds will be treated as CRTs unless and otherwise notified to the
contrary by the ZR.
• Notifying a terminal as CRT should not hinder the handling of inward or outward traffic
in rail wagons at present and also in foreseeable future.
• Stations and Goods sheds not currently open for goods booking or unused yard lines
(including those in notified Group I & II Stations) with adequate road access should be
considered for notification as CRT.
• Group I & II Stations in terms of Wharfage rule may also be considered for notification
as CRT. Chassis stuffing / de-stuffing operation may be permitted at all Group – I & II
railway terminals unless and otherwise notified to the contrary by COM of ZR due to
operational constraints. ZR may permit only if it does not affect the Railway’s operation
of loading/unloading of it’s own stock.
• Lift on – Lift Off may also be permitted at Group I & II terminals, if multiple handling lines
are available and wherever feasible, subject to the condition that traffic dealt at such
terminal does not exceed seven rakes per handling line per month. Permitted on joint
recommendation of COM & CCM and with the approval of GM.
• ZR in their notification for CRT should clearly indicate whether Lift On – Lift off Operation
or Chassis stuffing/De-stuffing or both is permitted at such CRT.
• Every CRT will have a capacity of dealing with one container train only at a time. If
suitable placement lines and adequate ground area is available, they should be
demarcated for notifying more than one separate and independent CRTs at such railway
goods sheds or unused yard lines.
• Permission to use any railway owned terminal as CRT can be terminated by the
concerned ZR after giving a notice of two weeks, if circumstance so warrant in the
opinion of the concerned GM. Such decisions will be binding on the PCOs.
• For the purpose of giving permission to use any station/goods shed as CRT, the
classification of station/goods shed will be done excluding the number of all types of
privately owned trains like container trains, automobile trains under AFTO policy and
other specialized trains such as road-rails etc,. Dealt at such station/goods shed.
However, for the purpose of granting free time or levy of ground usage charge the
classification of station/goods shed will be done by covering all types of trains including
container trains, automobile trains under AFTO policy and other specialized trains such
as road railers etc, dealt at such station/goods shed.

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 Infrastructure Improvements
Rail Side Warehousing Facility

Setting up of rail side warehousing facility with public private partnership for
participants other than CWC. (Central Warehousing Corporation).

Objective
• To provide warehousing to promote inter-modality by providing seamless door to door
service at competitive price, reducing the cost of secondary transport through provision
of warehousing at close proximity to rail facility and other value added services to
customers.
• Warehouse in addition to existing Goods shed not in substitution.

Who can apply

• Individual firm or corporate entity – Rs. 10 crores turnover per annum
• Should have requisite expertise and experience in execution of warehousing project
• For foreign agencies, an Indian Joint Venture partner will be necessary.

Whom to apply
• CCM of the ZR Concerned.

Site for Warehouses

• Only at those locations, where setting up of such value added facility will result in
attracting sufficient additional traffic and sites so identified are agreed to by the Railways.
• Necessary traffic survey by the prospective warehousing agency.
• Jointly decided by service provider and Railways. Final decision by Railways.

Provision of land
• Land for the warehouse will be provided by Railways.
• Long term future requirement of Railways should also be kept in view while allotting land.
• Size of the plot – Minimum level of traffic guaranteed.
• Land to be finally given on lease is decided by a committee of officers of the ZR at SAG
level from Commercial, Engineering and Finance Departments.
• Recommendation put to AGM/GM for acceptance.
• RB kept informed in this matter.

Earnest Money and Security Deposit

• Bidder to deposit an amount of Rs. 5 Lakhs as earnest money along with bid.
• Successful party should make a security deposit of Rs. 25 Lakhs in the form of a Bank
Guarantee.

Mode of selection
• Selection of warehousing agency by inviting competitive bids in two parts ie., Technical
Bid and Financial Bid.

• Technical bids will have particulars like firm’s name, address, existing areas of activity
and experience, list of customers sered, area of warehousing and other facilities
proposed to be built including indication of land requirement, expected gestation period
for project implementation, source of funding, financial results (audited accounts) for
the last three years.

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• Financial bid will include the expected annual turnover in the first year and subsequent
years, pinpointing guaranteed rail-borne traffic separately, expected revenue
performance in the first year and subsequent years and percentage of total revenue
subject to a minimum of 5%, proposed to be shared with Indian railways.

Tender selection committee

• Comprising of 3 SAG officers one each from Commercial, Accounts and Engineering
Depts will finalize and take approval of GM.

Period of Lease Agreement

• Lease agreement will be for 30 years – extended subject to satisfactory performance.
• Lease not extended – Premises along with the structures will be handed over to the
Railways.

License Fee
• Nominal land license fee of Re 1/- per Sq.m per annum.
• Lease rent paid by the promoter for the warehousing area including any open areas
around the built-up warehousing structure used for business / movement purpose as
agreed mutually with Railway.

Revenue Sharing
• From third year onwards or from the date of operationalization of the warehouse,
whichever is earlier, in addition to the nominal lease rental, the promoter will share with
Railways the accepted percentage, subject to minimum of 5% of the gross revenues
from all activities arising out of the business at the location leased to the promoter.
• This percentage reviewed every three years after the date of operationalization of
warehousing complex or from the sixth year after the execution of the agreement,
whichever is earlier.

Loading/Unloading facilities
• Developed by the promoter for smooth operations

Free Time
• Free time for loading / unloading as per Railway rule. Demurrage charges applicable.
Wharfage not applicable.

Development and maintenance of common area

• Common facility areas like Circulating area, approach roads etc will be developed by the
service provider and used commonly with the Railways.
• Repair and maintenance cost of this area – borne by the promoter.
• No lease rent in respect of such area. No commercial activity is allowed on this land.

Rail Linkage
• Railways will provide efficient rail connectivity required to handle traffic.
• Efficient loading / unloading facilities – developed by the promoter for smooth running of
the warehouse.

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 Preference to rail borne traffic:
• Promoter to give preference to rail born traffic. Atleast 70% of the warehousing space
for rail borne traffic.
• A committee of officers from Commercial, Accounts &Engg departments to conduct
review of rail borne traffic every year.

Staff Cost
• Cost of Commercial staff posted at the goods shed will be borne by the service provider.
Railways to keep the number of staff to minimum.

Gestation Period
• Maximum period of 2 years from the date of signing the agreement as gestation period
(covers construction and operationalization of the warehouse).

Termination of lease contract

Railway can terminate the lease contract under the following circumstances,
• On termination of lease period if further extension is not sought.
• If no warehouse construction work starts within one year of granting letter of intent, the
agreement will stand terminated automatically.
• Any violations of the terms and conditions
• Rail borne traffic going down the minimum level of guaranteed traffic continuously for
two years.
• Promoter not paying the minimum lease charges in any year and portion of the revenue
as fixed in the agreement.

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 Terminal Development Scheme

• Growth In freight traffic has highlighted the urgency of addressing capacity constraints.
• Adequate line and terminal capacity and ability to provide compelling value to customers
in terms of low, competitive logistics costs hold teh key to sustained growth in future.
• This policy seeks to supplement the in-house programme of MOR by opening the area
of terminal development to participation of major customers of Railways.

Objective
• To promote development of new railway terminals through investment from private
sector.
• Leads to development of terminals and new special purpose wagons resulting in long
term commitment of rail movement of freight traffic in specific commodities.

Definition
 End Users – Rail customers who are producers or consumers of the goods transported
by rail.
 Bulk Commodity – Commodities namely Cement, Fly Ash, and fertilizers – moved in
loose condition in privately owned SPW.
 Finished Products – Commodities namely finished iron and steel products, bagged
cement and bagged fertilizers.
 SPW – Special Purpose Wagons – designed for transportation of a specific commodity
or group of commodities – will operate on specific routes or closed circuits – not form
part of IR Pool.
 LWIS – Liberalized Wagon Investment Scheme

Scope
• Terminals dealing with Coal and coke, POL, iron ore and all other types of minerals and
ores – not eligible under this scheme.
• This scheme limited to development of
• (i)new terminals for handling bulk commodities – Cement, Fly ash & fertilizers in loose
condition
• (ii) new terminals for unloading finished products namely iron & Steel, bagged cement
and bagged fertilizers

Types of Terminals – Covered under this scheme

• Terminals for Bulk Commodities
• Terminals for Finished Products
• Set up on private land close to IR Network or in surplus railway land

General Conditions
• Private ownership of sidings or terminals at both ends by the end users.
• End user – approach GM of the concerned ZR with all relevant details.
• To qualify for financial incentives under this scheme – Commodities permitted should
originate and terminate at a private terminal or private siding. (atleast one terminal should
be a new terminal under this scheme)
• End user to built private terminals at their own cost and to provide efficient handling
facilities.
• Both the terminals on round the clock basis.
• Commercial staff posted and cost borne by end user.
• Private terminal on railway land – end user to give a minimum commitment in regard to
traffic guarantees – Not applicable for terminal on private land.

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• End user to get all clearances from other government departments.
• No train examination facility in the terminal.
• Operated under TMS with e payment facility
• End user availing any other concession not eligible under this scheme.
• Gestation period – 1 year from the date of approval or handing over of railway land.
• Railway liability will not extend beyond the interchange point at the terminal.

Land
• Private terminals – on land procured by end user at their cost.
• In IR Owned surplus land – lease for 30 years – Extendable for another 10 years
based on satisfactory performance.

Traffic Guarantees
• Terminal developed on railway land, end user to give following minimum commitment
(i) First year of operation – 0.5 million tonne.
(ii) Second year of operatin - 0.75 million tonnes.
(iii) Third and subsequent years - 1.0 million tonne or higher.
• Terminal on private land – no commitment needed.

Eligibility
• End user should be an entity registered in India under Companies Act 1956.

Selection of the Investor

Terminals on Private land
• End user – GM of the ZR
• NOC by COM – Subject to operational feasibility and fulfilment of the conditions of the
scheme.
• Final approval by MOR.
Terminals on Railway Land
• Railway will invite business proposals through an EOI (Expression of Interest)
• Proposals and credentials shortlisted
• Shortlisted end users to submit financial bid indicating total revenue payable to Railways
every year – Parameter to decide higher bidder.
• End user to give minimum guaranteed volume of traffic as per policy.
• If end user fails to offer committed revenue per annum – except due to force majeure
reasons – to make good the difference in revenue between committed amount and
actual.

Land Lease Charges

• Land lease charges as per the notified policy of MOR.

Dispute Resolution
• Arbitrator nominated by GM of the ZR.

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 Incentives
Terminals for Bulk Commodities
• Handling bulk commodities namely Cement, Fertilizers and Fly ash when transported in
loose condition and moved in privately owned SPW procured under LWIS.
• Sidings or terminals at both ends of the approved close circuit shall be privately owned,
out of which at least one terminal should be new terminal developed under this scheme.
• Freight concession of 15% granted for a period of 20 years on each loading of a new
rake of SPW procured under LWIS.
• Concession of Base Freight rate prevailing at the time of issue of notification by CCM or
the Basic Freight rate applicable at the time of booking whichever is lower.
• Waiver of Busy Season surcharge for 20 years
• Waiver of terminal charge.
• No Demurrage or Wharfage charge leviable.
• Maintenance of privately owned SPW done by IR as per charges and terms laid down in
agreement.

Terminals for finished products

• Private terminal for unloading of finished products namely Iron &Steel, bagged Cement
and bagged Fertiliser.
• Only IR Owned general service wagons.
• Waiver of Busy season surcharge for 20 years
• Waiver of terminal charges.
• Customer other than original end user – can book traffic – as per mutual agreement with
end user – such case only incentive is non levy of terminal charge.
• Free time as per engine on load norms.
• Demurrage charges leviable. No wharfage charge.

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 Private Freight Terminal (PFT)

Objective:
• Rapid development of freight handling terminals with the participation of private
sector
• Enhance the presence and share of Railways in the overall transport chain.
• Divert traffic moving by road to rail.
• Attain increased rail freight volumes by offering efficient and cost-effective logistics
and warehousing solutions to users.

Definitions:
 Brownfield PFT- Existing Private siding converted into a PFT under this policy.
 Greenfield PFT – A new freight terminal commissioned as a PFT.
 Container Train Operators-CTO Private train operatorswho has been granted
concession to operate container trains
 Co-use – The permission given to a rail user by Railways, other than the siding
owner, for using the siding for handling his own goods at the siding.
 TMC – Terminal Management Company who is the owner of the PFT.

Nodal Agency:
At Railway Board:
– Executive Director (Freight Marketing) -prior construction and after commercial
operation
– Executive Director/Civil Engineering (General) -during construction stage
At Zonal level and Divisional level

Stage Nodal and Nodal and

coordinating coordinating
officer at Divisional officer at
level Headquarters
level
For all PFT matters-at Nodal officer -DRM Nodal officer-
various stages planning, CTPM
pre-Construction,
construction and after
construction stage
Throughout the construction Coordinating officer- Coordinating
stage Sr DOM officer-CPTM
After completion of project Coordinating officer- Coordinating
/issue of notification and Sr DCM officer-CCM/FM
after commissioning

Freight Terminals
▪ Railway owned Goods sheds & Railway sidings on Railway land.
▪ Private sidings on private land.
▪ Private sidings on private land with co-use facility.
▪ Privately owned container handling terminals on private land.
▪ Private Freight Terminal set up by TMC on private land.

Eligibility for TMC

▪ Company registered in India under C.A 1956,
▪ Public Sector Entity.
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▪ An entity registered as a Co-operative society as per CS Act 1912,
▪ Entity owning a private siding or assisted siding.
▪ Subsidiary company or subsidiary of PSU.
▪ JV Company
▪ A consortium.
▪ Applicant with experience in the business of logistic service will be preferred.

Conversion of Private Siding to PFT

• Existing Private siding already operating with co-use facility that allow handling of
third party cargo will have to necessarily apply to convert themselves into a PFT.

• Private siding used only by the siding owner can continue as private siding.

• Siding owner – willing to continue with co-use facility – permission can be given to
all the co-users without any upper limit.

Documents required:
– For Greenfield PFT:
➢ Papers relating to eligibility criteria
➢ Feasibility Report of proposed PFT
➢ Projections of anticipated business volumes.
– For Brownfield PFT
➢ Papers relating to eligibility criteria
➢ Projections of anticipated business volumes.

Application Fee
• Apply online on website- ircep.gov.in/PVTSDG
• Non refundable application fee of Rs 20000 for Greenfield PFT and no application
fee for for Brownfield PFT.

Security Deposit
• To ensure timely completion, an amount of Rs.10 lakhs will be collected as Security
Deposit at the time of approval.
• On successful completion of the PFT within the stipulated time, security deposit will
be refunded.
• Terminal management company required to complete the PFT project within the
time schedule prescribed in DPR.
• Railway administration can give extension for a maximum of 1year on payment of
penalty of 20% of security deposit.
• If PFT is not completed within extended period, the approval will be automatically
cancelled and Security Deposit will be forfeited

Application Procedure:
• CCM/FM of the concerned ZR and the TMC will execute an agreement for operation
of the PFT before commissioning of the PFT.
• After execution of agreement, PCCM of the concerned ZR will issue commercial
notification regarding opening a PFT as an independent terminal.

Authorized Users:
The consigments booked to PFT will be consigned to the consignee,whom TMC has
authorised to make use of his facility.

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 Commodities permitted
• All commodities except coal and coke under ‘C’ Priority. Outward loading of coal
and coke under ‘D’ priority is allowed.
• Outward iron ore and iron ore pellets traffic.
• MOR can alter the list of commodities from time to time.

Types of wagons permitted.

• All types of wagons
• Parcel Vans
• Privately owned wagons
• Containers permitted to run on IR Network.

General Conditions:
• Applicant TMC responsible for ownership/ lease/ license or any other arrangement
of private land proposed to be used for PFT.
• TMC to fulfill all statutory requirements and get all clearances.
• All PFTs will function round the clock on all days including Sundays and all other
holidays.
• TMC will be free to fix tariff for services offered in PFT and recover charges from
customers.
• All Commercial and Operating rules as applicable in a Goods shed shall be
applicable at PFT.
• Gestation period for Greenfield PFT 3 years & Brownfield PFT 1 year. Failure to
adhere to gestation period will lead to cancellation of approval. However, extension
of gestation period possible for maximum 2 years for Greenfield and 1 year for
Brownfield PFT in view of unforeseen exigencies on payment of 20% of security
deposit per year or part thereof.

Facilities on the PFT:

• Full rake placement capacities.
• Various logistics related services will be provided by the TMC.
• In-motion electronic weigh bridge facility.
• FOIS and TMS facility.
• TMC will provide furnished rest room facilities at its cost, and canteen facility for
crew and guard.
• Railway Commercial staff will be posted at PFTs
• TMC will be required to pay to Railways cost of maximum of one commercial staff
per shift.
• If there are more than one handling area which cannot be supervised from one
location, cost of additional commercial staff subject to a maximum of one
commercial staff per shift per handling area will be paid by TMC.

Construction of PFT
• Construction of PFT as per provision of private siding policy.
• Connectivity to Railway line through Railway land will be facilitated by Railway –
on payment of license fee.
• Each PFT provided with a serving station.

Agreement:
• The period of agreement for operation of each PFT will be 30 years.
• To be signed by TMC and authorized representative of CCM of the concerned ZR.
• Agreement will be signed before notification of the PFT.
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 Payment of Freight
• Freight on traffic booked from and to PFT shall be charged on through- distance
basis.
• Freight or haulage charges will be paid by the consignor as prescribed in the Goods
Tariff or special notification.
• Consignment booked to and from a PFT will be pre-paid.
• Freight charges to be paid at the preparation of RR, preferably through e-payment.
• No Wharfage charges would be payable at a PFT.
• Demurrage charge for general service wagons and stabling charges.
• Loco detention charges.
.
Rights of TMC:
• TMC will have right to change its list of authorized users duly informing Railways.
• Right to change the list of commodities.
• Right to independently fix charges for the services it offers to rail users.

Benefits to TMC
TMC could levy various charges from its customers such as
• Terminal charges
• Wharfage charges
• Charges for other value added services
• No wharfage will be levied by Rlys.
• TMC can fix own charge for the service it offered to the Rail Users.

Weighbridge, FOIS & TMS

• Electronic in motion weigh bridge compulsory in case of dealing with inward traffic
by PFT.
• If only Outward, it is not compulsory but it should be ensured that weighing facility
is available at origination station or enroute.
• FOIS & TMS with limited access installed at PFT by TMC. All the cost borne by
TMC.

Dispute resolution
• Decision of MOR is final.
• Non-amicable dispute – referred to arbitration by a Board of three arbitrators –
Spelt out in agreement – bound by provisions of “Arbitration and Conciliation Act
1996”

Termination of Agreement
• RA can terminate by giving written notice of termination of 180 days to TMC.
• Before Termination notice, written show cause notice to make representation
within 30 days.
• TMC can terminate by giving 180 days’ notice.

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