Concessions on bulk cement transportation to boost cement traffic

27 Jul 2021 CW Team

The Ministry of Railways has decided to waive the standard haulage charge per twenty-foot equivalent unit (TEU) for the movement of empty specialised tank containers used for bulk cement transportation in order to encourage the shipment of bulk cement by rail.

It will be granted when the specialised tank containers are moved in one direction fully loaded and returned empty.

According to a circular issued by the Ministry of Railways on July 16, the concession will be valid for five years beginning August 1.

Normal haulage charges for empty container transportation will be reduced by 50% in the first year, 40% in the second, 30% in the third, 20% in the fourth, and 10% in the fifth.

For example, for the loaded movement of specialised containers from point A to point B, the applicable normal haulage charge will be applied. Discounts will be applied for empty return movements from B to A.

If these specialised containers are transported via any other route, a standard haulage charge for empty or loaded containers will be imposed.

According to the Ministry of Railways, the concession is being granted to ensure rate consistency and stability in order to encourage customers to offer bulk cement traffic via rail.

A rate circular issued in November 2017 revealed that bulk cement transported in tank containers are currently billed on a haulage charge per TEU basis.

Previously, the ministry announced a 5% reduction in the current haulage charge per TEU for the movement of loaded containers and a 25% reduction in the movement of empty containers and empty flat waggons until April 30, 2022.

According to Indian Railways, tank containers for bulk cement transportation should be designed, manufactured, tested, and inspected in accordance with ISO container provisions.

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Also read: Price hikes improve cement profitability outlook: CLSA

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