Indian Railway to rationalizes freight rates

28 March 2016 | New Delhi

Indian Railways have announced rationalization of freight rates for short lead traffic under the Merry-go-round (MGR) system operated between coal mines and thermal plants and between ports and coastal thermal plants.

The revised rates will come into effect from April one this year according to an official release.

The revised Merry-go-round rates will be around INR 47 per ton carried by BOXN wagons for eighteen kilometer lead. The wagons could make 2 or 3 trips a day.

The road transport rates for the same lead (Distance) works out to INR 72 per ton. Rationalization of freight rates were announced in the recent railway budget in an effort to take on the completion from the road sector. Of late, freight carried by the road sector is on the increase while railway's freight earnings have dwindled. The trend was observed during the last few years.

The new rates have been announced to reverse the trend. Singareni collieries in Telangana have committed to the Railways additional coal traffic to the tune of four million tons in the next financial year if the freight rates are rationalised.

The MGR terminals at both ends are privately owned.

The rail track between the two terminals will be provided by the customer. The terminals at both ends will operate round the clock. MGR systems are popular in connecting port with coastal thermal plants, collieries with thermal or cement plants for short distances.

Source:

TR-Bureau