Marketing and Sales Organization PDF

CHAPTER-14:- Marketing and Sales Organization __________________________________________________________________ Rail traffic in India started on 16 April 1853 between Boribundar and Thane. Railways had monopoly in transportation field since it was started in India. But after the independence...

CHAPTER-14:- Marketing and Sales Organization __________________________________________________________________ Rail traffic in India started on 16 April 1853 between Boribundar and Thane. Railways had monopoly in transportation field since it was started in India. But after the independence, the Five Year Plan started. Under these plans, construction of roads and bridges was done rapidly and road transportation had developed. In initial decades, Railways had not felt any need of marketing. But slowly due to increase in employee’s salary, operation/ maintenance, expenditure and decrease share in country’s total transportation and it started suffering financial loss. Due to inherent good features of road transport; Railway’s high profit yielding commodities were attracted towards road transport. In August 1967, Marketing and sales organization was established to identify the reasons for decrease of railway’s share in country’s total transportation and diversion of high profit yielding commodities towards road transport, increase rail traffic and to attract lost traffic. Objectives: 1. Survey of expected traffic. 2. Market survey. 3. To attract lost traffic towards railway. 4. To increase traffic. 5. To retain existing traffic. 6. Co-ordination with other modes of transport. 7. To attract new traffic. Function: 1. Intensive and comparative study of market 2. Market Survey 3. To contact, co-ordinate and organize meetings with businessman 4. To solve the problems of businessman. 5. To frame new schemes of marketing 6. To give wide publicity of marketing schemes 7. To review and improve the schemes 8. Give suggestion for liberalization of rates and rules 9. To keep information about various development programs of Central and State Government 118 10. Review the competitive transport institutions and take appropriate steps to be ahead of them in the competition. 11. Comparative study of rates of road and rail 12. In regards to passenger amenities provided at station, study to be done whether the available amenities are liked by general public or not? 13. Response of general public in respect to railway facilities should be finds out and suggest ways to improve it. 14. Traffic survey 15. Propose opening of new station and siding 16. To collect traffic figures and to analyze and study them. 17. To co-ordinate with other modes of transport. Reasons of diversion of Rail Transport to other modes of Transport – Indian railways carry all type of commodities. Railway’s aim is to earn profit as well as provide social service. Due to following inherent features of road transport, railways traffic gets attracted to road transport. 1. Door to Door service 2. Right of choosing customer. 3. Flexibility in rates. 4. Personal supervision 5. Quick settlement of claims 6. No packing condition 7. No restriction on working and business hour. 8. No extra charges like Demurrage Charge, Wharfage charge, Busy Season surcharge etc. 9. No need of indent. 10. Quick availability of transport service. 11. Quick transshipment en-route. 12. Low cost of transportation. 13. Less chances of damages and theft. Steps taken by Railway in the field of Marketing – Various types of schemes have been launched by Marketing and Sales Organization to attract and increase traffic. 119 Steps taken in field of Freight Marketing:- 1. Freight Incentive Scheme : - i. Liberalized Automatic Freight rebate scheme for traffic loaded in Traditional Empty Flow Direction. ii. Cargo Aggregator (CG) Transportation Product iii. Incentive scheme for loading bagged consignment in OPEN and FLAT wagon; 2. Transportation Product:- (i) Block Rake (ii) Mini rake; (iii) Two point rake (iv) Multi point Rake (v) Two and Multi point Rake ( For other than covered wagon) (vi) Rake from two Originating Terminals; and (vii) Rake from two Originating Terminals (other than covered wagon). 3. Liberalized Wagon Investment scheme (LWIS) 4. Wagon Leasing Scheme (WLS ) 5. Terminal Development Scheme ( TDS) 6. Terminal Incentive cum Engine on load scheme (TIELS) 7. Roll on Roll off scheme (RORO) 8. Operation of NMG Rake. 9. Operation of Jumbo rake. 10. Merry –Go-Round (MGR) 11. Setting up of Private Goods Terminal 12. Facility of stacking in Railway Premises with the help of Central Warehousing Corporation (CWC). 13. Liberalization of Rates and Dynamic Pricing Policy. 14. Uniformity in working hours and business hours, 15. 24 hours working in Goods shed. 16. Simplification of Demurrage and Whafage rules. 17. Liberalization of siding rules. 18. Facility of free advance stacking before loading. 19. Freight Operation Information System ( FOIS) 20. Electronic registration of demand for wagon (e-RD) 120 21. Electronic transmission of Railway Receipt (e-TRR) 22. Electronic payment of freight (e-Payment) 23. Notification of various routes for operation as CC + 6 tonne & CC + 8 tonne. 24. Manufacturing wagons with 25 Ton axle load. 25. Enhancement in carrying capacity of wagons. 26. To permit private container operators to operate container train (PCO) 27. Container Rail Terminal (CRT) 28. Introduction of Dedicated freight corridor (DFC ) 29. Setting up of Multi Modal Logistic Park. 30. Special Freight Train Operator (SFTO) 31. Automobile Freight Train Operator (AFTO) 32. Auxiliary Hub for Automobile Traffic 33. Simplification of Coal and Coke rates. 34. Concession given to the short distance traffic. 35. Private Freight Terminal (PFT) 36. Station to Station rate (STS) 37. Long term tariff contract (LTTC) Steps taken in the field of Parcel Marketing:- 1. Leasing of SLR 2. Millennium Parcel Service. 3. Teevra Gati Seva (TGS) 4. Parcel Cargo Express Train (PCET) 5. Simplification of parcel rates. 6. Leasing of VPU & VPH 7. Computerization of Parcel service. 8. Refrigerated Van service 9. Online registration of Lease holder. 10. Special Parcel Train Operator (SPTO) 11. To grant permission for operation of Parcel van to the PCO Steps taken in the field of Passenger Marketing- 1. Computerization of Reservation office. 2. Unreserved Ticketing System (UTS) 3. Rail travel seva agent (RTSA) 4. Tatkal Seva, Premium Tatkal Seva. 121 5. Coaching Operation Information System (COIS). 6. Integrated Train Enquiry System (ITES)– (Enquiry through call centre)\ 7. Public Address System (PAS) 8. National train Enquiry System. (NTES) 9. Issuing unreserved and season ticket through ATMs. 10. Reservation through Internet (I-ticket & E-ticket). 11. Issuing tickets through ATVM. 12. Cash-Coin & Smart Card operated Ticket Vending Machine (CoTVM) 13. To encourage tourism based on rail road through IRCTC. 14. Issue Season ticket through IRCTC. 15. Online booking of Retiring Room 16. Online Booking of FTR coach/Train 17. Operation of tourist train. 18. Enhance Carrying capacity of coaches. 19. Operation of LHB coaches. 20. Introducing Garib Rath Trains. 21. Operation of Suvidha Train 22. Operation of Special train 23. Alternate Train Accommodation Scheme (ATAS) 24. Cancellation of PRS ticket on website and 139 25. Flexi Fare for Rajdhani, Shatabdi & Duranto Trains. 26. Dynamic policy for fare 27. Facility of tourist coupon ticket on Mumbai suburban section 28. Up gradation of reserved passenger. 29. Scheme of frequent travellers (SOFT) 30. Passenger profile management system (PPMS). 31. Facility of providing reserved ticket at Post Offices and Petrol Pumps 32. Jan Sadharan Ticket Booking Sewa (JTBS). 33. Station Ticket Booking Agent (STBA) 34. Yatri Ticket Suvidha Kendra (YTSK) 122 FREIGHT INCENTIVE SCHEMES: Objective: a. To generate additional traffic. b. To generate additional revenue. c. To attract freight traffic. d. To increase Railway Earning 1) Liberalized Automatic Freight rebate scheme for traffic loaded in Traditional Empty Flow Direction: (RC- 13/2021 dtd 31.03.2021) 1. Objective: i. To generate the additional freight revenue, by suitable pricing mechanism by giving automatic freight rebate from the FOIS system for the traffic booked in the inter-zonal and intra-zonal traditional empty flow direction. 2. Incentive: i. For all traffic booked on the notified O-D pair under Traditional empty flow direction 20% and 15% concession will be given. For train load: After giving concession, the discounted freight should not be less than NTR of class rate 100, in any circumstances. For wagon load: After giving concession, the discounted freight should not be less than NTR of class rate 110 in any circumstances. ii. For interzonal intermediate point (Any one), benefit of 15% concession will be given on applicable class rate. After giving concession, the discounted freight should not be less than NTR of class rate 100, for train load and it should not be less than NTR of class rate 110 for wagon load, in any circumstances. iii. Interzonal traffic - In addition to the notified divisions, other divisions of the destination zone: 15% concession will be given on the applicable class rate. After giving concession, the discounted freight should not be less than NTR of class rate 100, for train load and it should not be less than NTR of class rate 110 for wagon load, in any circumstances. iv. For automobile traffic - 20% concession will be given on the applicable class rate for automobile, spare parts and other machinery. Floor rate will 123  not be applicable for automobile however floor rate 100 will be applicable for spare parts and other machinery. iv. The discounted freight will be charged from the first rake. 3. Permitted Terminal: - All goods sheds, siding, port and PFTs etc. 4. Restricted Commodities: - i. Cole & Coke; ii. Chemical manures iii. Iron Ores (all types); iv. Commodities under Class 100,100A, LR1, LR2, LR3 and LR3A; v. RMC traffic vi. Military traffic vii. POL traffic 5. Lead restriction: -Traffic of 100 km or less distance is not allowed. 6. Permitted wagons: - a. Open wagon BOXN group and BOST group b. Covered wagon BCN group & BCNHL Group c. Flat Wagon and Mixed Steel Rakes - BRN-Group and CONCORD. d. For automobile traffic – NMG group, BCCNR and BCACM 7. Salient Features: i. The party does not have to apply for this scheme; the FOIS shall automatically calculate the charge rent automatically. ii. The minimum offer of the traffic shall be half of the permitted stock. iii. Train load charging is subject to fulfillment of train load conditions. iv. Under this scheme, book traffic will not be re-booked, diverted or given delivery short of destination. (However, diversion and delivery short of destination is permitted on account of force majeure conditions viz. Act of god, act of war and act of public enemies etc. But this shall be permitted with the approval of PCCM and PCOM of the Zonal Railway who shall record their reasons in writing.) v. Rake loaded under normal tariff shall not be rebooked under this scheme. However rebooking at normal tariff shall continue to be permitted as per extant rules. vi. The benefit of other concessions will not be given on the traffic booked under this scheme. vii. Intra-divisional booking is not permitted under this scheme. 124 2) Cargo Aggregator (CG) Transportation Product 1. Objective – To facilitate cargo aggregation and thereby, expand the commodity basket on Railways. 2. Restricted commodities i. Coal & Coke (including petroleum coke) commodity group ii. Minerals and ores commodity group iii. Iron or Steel commodity group iv. All types of slags 3. Distance Restriction- 300 Kms 4. Permitted wagon- Covered wagons such as BCN / BCNA / BCNAHS group and BCNHL group. 5. Rating - Cargo loaded in a wagon under this scheme will be charged at the rates indicated below: Freight Rate (For Block rake, Sr.no. Details No. of wagons Commodity Mini rake, Two- point rake) a Wagon loaded with Any no. of As per Train Load benefit single commodity wagons para 2 of the commodity for each wagon b Wagon loaded with Any no. of As per Train load benefit 2 commodities wagons para 2 of the higher class rate commodity for each wagon c Wagon loaded with Not more than As per Composite class more than 2 10 wagons for para 2 Rate 120 commodities block rake and Note: not more than 5 Cement & wagons for mini clinker rake. excluded d Wagon loaded with Not more than As per Composite class more than 2 20 wagons for para 2 Rate 130 commodities block rake and not more than 10 wagons for mini rake. 125 Note: The combinations of commodities permitting for loading are given below: i. 5 (c) along with 5 (a) and / or 5 (b) ii. 5 (d) along with 5 (a) and / or 5 (b) iii. Both 5 (c) and 5 (d) will not be permitted simultaneously in a lrake. 6. Floor rate - After grant of all concessions, the chargeable freight should not be less than the NTR of LR1. 7. Registration of Cargo aggregator – One will have to register itself as Cargo aggregator in eRD module by depositing a non-refundable security deposit of one lakh rupees with 18 % GST through online payment mode. Registration of CG will be valid for the particular division. 8. Other coditions: i. CG should select consignors / Consignees from the submitted list of customers / organisations. ii. In case CG does not have all the details of forwarding note at the time of placing indent, it can place the indent with a single forwarding note and provide complete details of Forwarding note at supply of rake. iii. Change of commodity – Up to 20% of the wagons indented may be permitted. iv. Prepayment of freight is compulsory and it will be booked at owner’s risk. ‘Said to contain’ Railway receipts will be issued. v. Multiple RR may be issued on the basis of different Consignor / Consignee. vi. CG shall be responsible for clearance of any Railway dues. 9. Misdeclaration of commodity: i. In case of single or two commodity in wagon – As per extant rule. ii. In case of multiple commodity in wagon – Will be charged at Class 200. 10. All extent commercial rules and regulations will apply eg.-Demurrage, Wharfage etc. 126  3) Incentive Scheme for Loading Bagged Consignments in Open and Flat Wagons: 1. Objective:-To encourage loading of bagged consignment in Open and Flat wagons. 2. Lead restriction – Not less than or equal to 100 km. 3. Permitted terminal – Goods shed, PFT, Sidings and Ports. 4. Permitted wagon – Open wagon – BOXN group, BOST, BOX Flat wagon – BRN group, BFR, BRH, BFNS 5. Concession – Commodity Concession All types of Fertilizer (Except Rock Phosphate), Bentonite powder, Stone powder, Chalk powder, Calcite powder, Cement, China clay, DOC, 20% Food grains, Lead / Zinc, Quick Lime, Soap, Soda ash, Caustic Soda, Calcinated Bauxite, Marble chips and Hydrated Lime, Silica sand. Urea, Neem coated urea 30% Following Incentive will be applicable for Fly Ash/ Bed Ash: Type of Wagon Concession Packing Condition A Open Wagon 20% Bagged/Bulk/Loose B Flat wagon 20% Bagged C Covered wagon LR1 class on NTR Bagged Note: Floor Rate will not be applicable for A & B. 20% concession will be given on applicable Class rate. 6. After giving all concessions, minimum chargeable freight should not be less than NTR of class 100. 7. Standard size of bags should be used Maximum 100 kg.( 2.5 ton jumbo bag can be loaded only in open wagon) 8. Tarpaulin should be provided by the consignor. 9. Consignors will be required to furnish an undertaking on the forwarding note that they would bear full risk for damage / pilferage of the consignment. 10. The customer need not apply. Freight discount will be given at the time of issue of RR. 127  Transportation Product:- 1. Block Rake 2. Mini rake; 3. Two point rake (For covered wagons) 4. Multi point Rake (For covered wagons) 5. Two and Multi point Rake ( For other than covered wagon) 6. Rake from two Originating Terminals (For covered wagons) 7. Rake from two Originating Terminals (other than covered wagon). 1. Block Rake : Conditions of block rake are as following: i. Forwarding and destination stations shall be nominated for half /full rake handing. ii. For availing benefit of train load class rates, indent should be placed for standard rake size. iii. The wagons for which standard rake size is not fixed, for such wagons minimum weight condition is 1400 tonnes. iv. If the fit wagons supplied by the Railway admini stration are less than standard rake size, party has to load all fit wagons to get the benefit of train load. v. If wagons required for train load (standard size / minimum no.) could not be supplied and indent is not cancelled, benefits of trainload should be given, but Railway Administration should record the reasons for such supply. vi. If rake is split up during transit for operational reasons, benefit of train load will be given. vii. Supply of all the wagons should be done at same time in case of train load consignments. However in case of supply in parts benefit of train load rates should be given. viii. In special circumstances benefit of train load class rate can be given to such train load consignment which originates from one place and ends at two places or originates from two places and ends at one place. For which rules are as under : - d. One of the two places is a serving station and the other its siding or both are siding served by the same serving station. e. Two IBP – Independent Booking Point siding under one serving stations. f. The stations may be different, if approved by Railway Board. 128 ix. If wagons are loaded with more than one commodity then higher class rates commodities freight will be charged. Maximum two commodities can be loaded in a wagon. x. In case of rakes loaded from two points, at least 10 wagons should be loaded from each point and in case of rakes loaded to two points; at least 10 wagons should be loaded to each point. xi. For the allotment of rake, Indent of BCN group and BCNHL group will be treated as interchangeable. xii. For the allotment of rake, Indent of BOST group and BRB/ BRNA/ BRNAHS/ BFNS group will be treated as interchangeable. xiii. This transportation product is applicable to all types of wagons and systems over BG and MG. xiv. Party has to pay all other applicable charges as per rule like busy season surcharge, congestion surcharge and development charge etc. xv. On request of customers Railway can combine multiple wagonload indents either registered by same / different customers of the same location to form trainload rake. 2. Mini Rake – Mini rakes can be booked at train load class rates under following conditions. i. Goods can be booked only in covered wagon. ii. Minimum number of wagons – 20 covered wagon. iii. It will be booked from and to any notified full or half rake terminal. iv. Free time for loading / unloading – 5 hour. v. Excluding Coal, Ores and Raw material for Steel plant (RMSP). vi. There is no restriction of maximum distance. vii. Supplementary charge will be collected by following Rate: Distance Rate of Supplementary charges Up to 1000 km. 5% Beyond 1000 km up to 2000 km. 7.5% Beyond 2000 Km. 10% 129 3. Two point Rake (For covered wagons)– Two point rakes can be booked at train load class rates under following conditions. a. This product is available only for Covered wagons. ** b. Originating Terminal should be a notified full or half rake terminal. c. Both destination terminals should be a notified full or half rake terminal d. Distance between both terminals should not be more than 500 kms. (In both peak and lean period) e. Minimum 10 wagons should be loaded for each destination, f. Total number of wagons indented and loaded must conform to standard the Block rake composition. g. Supplementary charge will be collected at the rate of 5%. 4. Multi-Pont Rake. (For covered Wagon) - Multi point rake can be booked at train load class rates under following conditions:- a. This product is available only for Covered wagons.** b. Originating Terminal should be notified full or half rake terminal. c. Each destination terminal should be notified full or half rake terminal. d. Distance between two terminals should not be more than 500 kms. e. Minimum 10 wagon to be loaded for each destination station. f. Total numbers of wagon indented and loaded must conform to the standard block rake composition, g. Supplementary charges of 20% will be levied from 1 st Oct to 30th June on base freight. 5. Two and Multi point Rake (other than covered wagon):- Two and Multi point Rake (other than covered wagon) can be booked at trainload class rates under following conditions: a. Originating terminal should be notified as full or half rake terminal. b. Each destination terminal should be notified full or half rake terminal. c. List of two and multi point combination will be notified by Railway Administration. d. Distance between two terminals should not be more than 500 kms. e. Minimum 10 wagons should be loaded for each destination terminal. 130  f. Total number of wagon indented and loaded must conform to the standard Block rake composition. g. Supplementary charge 5% on two point and 20% on Multi Point rake on base freight. 6. Rake from Two Originating Terminal (for covered wagon):- Rake from Two Originating Terminal can be booked at train load class rates under following conditions: a. This product is available for Covered wagons only. b. List of two point combination will be notified by Zonal Railway. c. Each Originating terminal should be notified full or half rake terminal. d. Destination terminal should be a notified full or half rake terminal. e. Distance between the two terminals should not be more than 500 kms. f. Minimum 10 wagons should be loaded from each originating terminal. g. Total numbers of wagons indented and loaded must conform to the block rake composition. h. The customers cannot cancel indent at one point after he has started loading at other point. If he does so, the entire freight will be charged for all wagons. i. Supplementary charge will be collected at the rate of 5%. 7. Rakes from Two Originating Terminals (other than covered wagon):– Wagon can be booked at train load class rates under following conditions: i. List of two point combinations will be notified by Zonal Railway. ii. Each Originating terminal should be a notified full or half rake terminal. iii. Destination terminal should be a notified full or half rake terminal. iv. Minimum 10 wagons should be loaded from each originating terminal. v. Total numbers of wagons indented and loaded must confirm the block rake composition. vi. The customers cannot cancel indent at one point after he has started loading at other point. If he does so, the entire freight will be charged for all wagons. vii. 5% Supplementary charge will be applicable on base freight. 131 ENGINE ON LOAD SCHEME (EOL): 1. Objective: i. Optimum utilization of rolling stock. ii. To minimize the detention of wagons. 2. Engine on-load scheme has been implemented for the better utilization of wagons and for quick transportation of goods. 3. During the loading and unloading, the engine will remain in siding so that the train can be run immediately after the completion of these tasks. 4. The owner of the siding will have to choose this scheme and also sign the agreement. 5. All new siding will be brought under the EOL operation while giving 'RTC' (Rail Transport clearance). 6. Siding holders will have to develop loading / unloading facility and yard lay- out facility as per 'EOL' concept. Yard and terminal detention must be saved. The party will have to adopt a round the clock work system in its terminal. 7. Permissible free time: Free time for demurrage charges will be less than normal rules so that the detention of wagons can be minimized. EOL Free time in hours Type of rake Loading Unloading Open rake 3:00 5:00 Hopper rake 3:00 2:00 Covered rake 6:00 6:00 Tank rake 5:00 5:00 Flat rake (BRN, BFN, CONCORD 6:00 6:00 etc) Note: (a) When bag consignment loaded in open wagon, Zonal railway may increase free time for loading from 3 hrs to 6 hrs. (b) At EOL siding additional one hour free time for covering open wagon during loading of loose/bulk commodity. (c) At EOL siding free time for loading of steel in open wagon is 6 hours. 8. If any additional time is allowed, then it will be applicable. Such as additional time for shunting etc. 9. The following provision shall be applicable for the siding working under 'EOL' Scheme-2013:- 132  i. The train engine can be utilized free of charge within the stipulated free time by the party. After the expiry of free time, the Engine Higher Charges will be taken. ii. In case of Bulb type siding, freight will be charged on the basis of through distance up to specific loading and unloading point. No shunting or siding charges for haulage of wagons within the siding be leviable. iii. Multiple pointing siding: Some siding serves new plants and old plants. If operation at one of the plant is covered under EOL norms, the siding can be notified as EOL siding with no cost of railway employee to the siding owner. However, the other benefits 'EOL' scheme would be applicable only for specific commodity and / or stocks handled in specified siding. 10. Suitable rest room facilities shall be provided for train crew by the siding owner. Siding owner will also provide canteen facilities to the train crew on payment of charges as prescribed for their staff. 11. Railway will bear the cost of railway staff in the siding. 12. Siding which have been notified for charging freight on through distance basis can be brought under EOL operation. It has been decided that in addition to private siding, Zonal Railways can also extend the EOL scheme to selected Goods shed & Rail side ware house complexes, where crew changing & resting facilities can be made available. 133 FREIGHT OPERATION INFORMATION SYSTEM (FOIS): 1. Working of Goods shed is computerized by CRIS which is known as Freight Operation Information System. 2. In this system work related to operations, yard management, and commercial working is computerized. 3. FOIS is the Management Information System (MIS) used in Indian Railways for its freight business. 4. MISs are used for improving efficiency in management and control of operations in Railways resulting in higher productivity of resources and improving quality of service to customers. FOIS helps to improve the process of planning, monitoring and decision making and reduce operating expenses through a more efficient utilization of rolling stock. 5. FOIS comprises of 2 modules - a. Rake Management System ( RMS) b. Terminal Management System (TMS) 6. 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. 7. Terminal Management System (TMS):- This system includes work related to commercial department, which is fed by employees of commercial department. It is as under:- a. Demand Registration. b. Inward number taking c. Commercial Placement. d. Commercial Release e. E-payment and other mode of online payment like RTGS/NEFT f. Preparation of normal Railway Receipt or Electronic Railway Receipt g. Delivery of goods h. Calculation and collection of DC & WC i. Calculation and collection of ancillary charge like siding charge, shunting charge, crane charge, engine hire charge etc. j. Preparation of Online Goods Balance Sheet. k. Forced debit / Credit l. Preparation of electronic Money Receipt. m. Preparation of electronic cash remittance note (CR Note) 134 Benefits:- i. It easily provides all information to management. ii. No error in calculating freight due to computerized system. iii. Less possibility of wagon being unconnected and if wagon is unconnected, it is connected at the earliest. iv. In this system every person gets instant, correct and uniform information v. With the help of FNR (Freight number record) customers can be measured the current status of the consignment in the transit. vi. The probable time of arrival of the goods on the terminals can be known. vii. Helps in preparing various types of statistics such as wagon turn round, net tonne km, engine km, wagon km day, train km etc. viii. Customers can take appropriate action by planning in advance for loading or unloading of goods. ix. Saves time in doing various tasks x. Less staff is required. Reduction of stationery costs. xi. The management helps in making effective decisions related to transport management, implementing skills in the organization's work and the development of employees. xii. Good services can be provided in low operating costs. Rationalization Scheme:- 1. Objective i. To get more traffic for the railways. ii. Compete with road transport. iii. Reducing route congestion. iv. Keeping the customers satisfied by getting the goods to destination quickly. v. Reducing the detention of wagons. vi. Accomplishing earnings target. 2. The goods will be sent through the easy route in view of operation, and the freight will be taken from the nearest route. 3. In case of gauge change, 200 km per gauge change will be added. 4. If the consignee wants to send the goods by any route other than the nearest route, he has to give it in writing on the forwarding letter. 135 5. According to section 71/1/b of the Railway Act, if the route has been fixed at the time of giving priority, then the goods will be carriage by that route. The fare will also be charged through the same route. 6. If the railway administration has decided the route from any station to any station under the Rationalization Scheme, then the goods will be carriage through that route. The fare will also be charged through the same route. Benefits: For the business class: i. Goods are delivered quickly and safely. ii. Saving in time taken at transshipment and repacking points. iii. Goods handling and transhipment charges are not levied. iv. The chances of damage and theft of goods are less. Siding Charges: 1. Where freight is levied from and to the serving station and separate charges are levied for haulage of wagons between the serving station and the siding and back, these charges are called as Siding charges. 2. The charges levied for providing the traffic facilities from serving station to siding and back are called as siding charges. 3. The siding charges should normally be fixed on the basis of cost per engine hour and the average time for a round trip from the serving station to the siding and back for placement and/or removal of wagons whether loaded or empty. 4. The charges per trip should be arrived at by multiplying the average time taken for the trip by the cost of engine hour, as per the formula given below: 5. Siding Charge = Average trip time in minutes x (Engine Hour Cost / 60) 6. Siding charges will be in addition to the freight from serving station to destination station. 7. Siding charges should be taken for minimum one hour. 8. Rounding off of siding charges should be done in next rupees. Service tax should be taken on siding charges. 9. Siding charges are levied as per siding agreement or as per rate (AIEHC) decided by railway board. 10. Siding charges are not levied for IBP/ or through distance basis sidings. 136 Shunting Charges: 1. Shunting Charge is leviable for the utilization of Railway’s locomotive to perform shunting operation at a siding, irrespective of the fact whether the siding is notified for charging freight on through distance basis or otherwise. 2. Shunting Charge is not calculated on the basis of trip time (Trip time method is applicable only for the levy of Siding Charge). 3. Shunting charge is levied on the basis of actual shunting time and prevailing ‘All India Engine Hour Cost(AIEHC)’ for ‘Train Engine’ or ‘Shunting Engine’ as the case may be. 4. All India Engine Hour Cost is circulated every year by Railway Board. 5. Shunting Engine means a railway locomotive specifically brought/send for performing shunting operation. ƒ 6. Train Engine means a railway locomotive attached with inward/outward rake. 7. Shunting Charges = Actual Shunting Time X AIEHC OR = Shunting Time fixed as per Study X AIEHC 8. All India Engine Hour Cost (AIEHC) for recovery of Siding & Shunting charges- With effect from- 01.07.2017 Type of Engine Cost per Hour B.G. M.G. Diesel Engine Shunting Engine Train Engine Electric Engine Train Engine ------ 9. Shunting charges are calculated on periodical basis. 137 AUTOMOBILE FREIGHT TRAIN: BOOKING OF AUTOMOBILE TRAFFIC CARRIED ON NMG, BCACM & BCCNR WAGONS 1. BCACM & NMG/BCCNR wagons when loaded with automobile (including 2- wheelers & tractors) will be charged at Class BCACM & Class NMG respectively. 2. Class NMG will also applicable to BCCNR wagons, when loaded with Automobile traffic. 3. The normal and minimum composition of BCACM, NMG & BCCNR rakes will be as under:- Stock PCC Normal Minimum Composition Composition NMG 58.8 25 24 BCCNR 58.8 30 27 BCACM 58.8 45 40 4. Indents should be made specifically mentioning the type of wagons. Priority of NMG/BCCNR and BCACM will be mentioned separately. 5. If loading in NMG rake along with motor vehicles, spare parts or other machinery, lubricating oil like grease in separate wagon, then charging will be as under. Commodity Charged at Motor vehicles NMG freight rate per wagon basis Spare parts or other machinery Applicable train load class rate as per Goods tariff Lubricating oil like grease etc Applicable train load class rate as per Goods tariff 6. Various charges under Dynamic Pricing Policy like Busy Season Charge are not leviable on automobile traffic moved in these rake. 7. Development charges will be levied on NTR. 8. Normal rules for free time, DC, WC and stacking as applicable to goods traffic will also applicable to this traffic. 9. There will be no charge for empty haulage of these wagons. 138 10. If other than aforesaid commodity is carried in these wagons i.e. if mis- declaration is detected, a penalty at the rate of twice the applicable rate on per wagon basis for the entire train, shall be levied.. The penalty will be in addition to the freight already paid. 11. Freight calculation for distance more than 3500 KM: Firstly, freight per KM should be calculated for the highest available distance (3500 Km). Freight for distance beyond 3500 Km will be reached by multiply the freight per KM with the actual given distance. Wagon Leasing Scheme (WLS) 1. Objective : - a. To bring in wagons of new and better designs. b. To develop a strong wagon leasing market. c. To procure rolling stock according to demand of wagons. 2. Eligibility Criteria:- i. Entity should be registered in India under the Companies Act, 1956. ii. At least 5 years’ experience of asset leasing business. iii. Net worth of at least 100crores. iv. If the WLC is a subsidiary, the holding company must hold 50% or more. The net business of the applying company should be at least 25% of 100 crores. 3. Registration :- a. Entity will be required to register itself with Ministry of Railway b. Registration fee will be Rs.5 Crore, which is non-refundable. c. Registration will be valid for 35 years d. Validity of registration will extended without any charges subject to satisfactory performance. e. Registration will be cancelled on the company becoming insolvent or on breaching contract. 4. Procurement of Wagons by WLC a. Wagons can be procured directly from wagon manufactures or through imports. b. Wagon also can be procure by AFTO, SFTO or end users. c. Wagon must be according to RDSO standards. 139  d. Procurement of wagons will be allowed only with prior approval of Ministry of Railway. e. Procurement of wagons would be in units of the standard rake along with 4% extra wagons and one brake van for maintenance. f. Freight concessions to which investors are entitled under LWIS will be made available to lease holder. However, this benefit will not be given if wagons are procured in lease by operators. 5. Leasing Contracts a. Wagon leasing contract will be bi-partite agreement between the WLC and the lease holder. b. Railway will not have any responsibility or liability in respect of wagons leasing contract. c. One copy of agreement should be given to IR. d. The WLC will have the right of substitution of lease holder under intimation to Indian Railway. e. On receipt of an advice of termination of the agreement by the WLC, IR shall cease to make such wagons available to the lease holder f. Lease holder will pay Freight, Wharfage charges, stabling charges and other charges to IR. g. Freight charges at class 100 will be collected by IR to move idle leased wagons. 140 LIBERALIZED SPECIAL FREIGHT TRAIN OPERATOR SCHEME (LSFTO): 1. Objective: - i. To increase the share of railways in non-conventional traffic in high capacity and special purpose wagons. ii. This policy provides investment opportunity for the Logistics Service Provider and the manufacturer/ producer to get wagon. 2. SFTO will provide wagon to users (end-users) 3. Eligibility: - i. Joint Venture Company or partnership of companies, a company registered under the Company's act 2013. ii. The applicant should have experience of one year in any one of the following transport and logistics, port and land terminal operations, warehousing, container train operator, WLC , manufacturer etc. iii. Registration will be subject to fulfilling the above conditions. 4. The commodities included under this scheme are as under: Commodities Bulk fertilizer, bulk cement, fly ash. Bulk chemicals, petro-chemicals, Liquid Ammonia, bulk alumina, caustic Soda Steel product which requires special wagon Molasses, Edible Oil, Bulk Food Grain 5. An agreement will be executed between railways and SFTO. The agreement will be valid for 35 years, or till the period the rakes are operational whichever is earlier. 6. SFTO means a party who invest to procure the Rake and obtains permission from the Railway Ministry to arrange for loading / unloading of traffic in its auto freight train. 7. Wagons which can be included in this scheme will be certified by the prescribed standard of RDSO. 8. The application for the SFTO will be addressed to the PED/ED (FM) Railway Board. MOR after getting NOC from concerned zonal railway grant necessary approval for procurement and operation of the rake(s). CCM/FM of nodal zonal railway shall be the nodal officer for signing the agreement. 9. The applicant will have to get 04% extra wagon and one Brake Van in addition to full Rake composition. 10. In case of loading in SPW rake, concession will be given to 12% freight for 20 years and on excess loading of more than 10% in HCW wagon, 02% 141  additional freight concession will be given on each of the every additional tonnage. The concession will be granted for a maximum up to 10% for the additional tonnage carried, which will be up to 20 years. 11. SFTO will have to pay all other charges like taxes, fees, cess, etc. 12. The wagons procured by SFTO will not be included in the wagon pool of Indian Railways. 13. SFTO will have to develop his own terminal or will have to agreement with a Private terminal. 14. SFTO can take haulage charges, terminal handling, Ground rent etc. independently from its customers, there will be no control of railway over it. 15. SFTO will have to pay demurrage fee, Ground usage charge and Terminal access charge on using the railway terminal. 16. Payment of freight will be done through E-Payment. 17. If the SFTO violates the agreement, then the agreement can be terminated by giving 01 month notice and the registration fee will be forfeited. 142 AUTOMOBILE FREIGHT TRAIN OPERATOR SCHEME (AFTO): (FM- MC/AFTO/2021 Dt. 26.10.2021) Objective: Providing win-win opportunities for both end-users and Railways by enabling logistics service providers and road transporters to invest in PPP based wagons and connect to market train services. Salient Features: 1. AFTO means a party who invest to procure the Rake and obtains permission from the Railway Ministry to arrange for loading / unloading of traffic in its auto freight train. 2. Nodal ZONAL RAILWAY: It means the zonal railway of the base terminal of AFTO rakes. 3. Commodity to be loaded: Automobile traffic will include passenger cars, two/three wheeler automobile units, mini trucks, tractors, chasis, shells of cars, automobile moved in CKD conditions. 4. Eligibility Conditions for Application- I. Registered Company as per company Act 2013, II. Subsidiary Company, III. Joint Venture Company or IV. Public sector entity in the business of logistics V. Applicant should have experience in one of the below- a. Transport and logistics. b. Port and land terminal Operations, c. warehousing, d. Container Train Operations. e. Wagon leasing. 5. The application for the AFTO will be addressed to the PED/ED (FM) Railway Board for minimum one rake including BV with 4% additional wagons in spare. AFTO can purchase any number of rakes under one registration. 6. Proposed loading terminals, destination terminals and base terminals will be mentioned in application including any other relevant information, if required. 143 7. On receipt of the application from AFTO, MOR shall grant approval. 8. On the basis of approval of MOR, agreement will be signed by the CCM/FM of the nodal Zonal Railway of the base terminal. 9. This agreement will be valid till the codal life of wagons. 10. Minimum investment for one rake along with 4% maintenance spare and brake van. 11. Wagons which can be included in this scheme will be certified by the prescribed standard of RDSO. 12. Trains procured under AFTO will not be merged in the wagon pool of Indian Railways. 13. Maintenance of wagons by railways at its own cost except special components, cost of which will be defrayed by investor. 14. Freight rates for AFTO are separate for loaded direction a nd empty direction. 15. Terminal Access Charges as per extant applicable rates also to be levied if terminal of IR is accessed by AFTO. a. Both terminals are private terminal – Nil b. Both terminals are Railway – Rs. 81,000/- c. One terminal is private and one is Railw ay terminal – Rs. 40,500/- 16. The rates shall be separate for rakes running as loaded and those running as empty. Even if, one wagon is loaded the full rake shall be charged as loaded, however if immediate preceding trip has been charged at loaded rates for a ll wagons the next trip shall be charged at loaded rates for loaded wagons and at empty rates for empty wagons. 17. AFTO is free to operate trains from railway terminals open to automobiles or from private terminals. 18. AFTO shall nominate a base terminal from w here it will operate so that a base maintenance depot can be nominated by railways. 19. Freight tariff and rebate will be notified time to time. 20. AFTO will have to pay all other charges like taxes, fees, cess, etc. 21. AFTO will have to develop his own terminal or will have to agreement with a Private terminal. 144  22. AFTO can take haulage charges, terminal charges, wharfage charges etc. independently from its customers, there will be no railway control over it. 23. AFTO will have to pay demurrage charge on using the railway terminal. 24. Payment of freight will be done through E-Payment. 25. Free to terminate the agreement before expiry of agreement by giving three months’ notice. GENERAL PURPOSE WAGON INVESTMENT SCHEME (GPWIS) In view of the long term demand from Railway Freight Users (PSUs, Industries and other stakeholders) and to achieve the desired growth in freight traffic on IR, a policy on General Purpose Wagon Investment Scheme (GPWIS) has been formulated. 1. 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. 2. TYPE OF WGONS PERMITTED FOR PRIVATE PROCUREMENT General Purpose Wagons (BOX, BOXN, BCN etc.) approved by RDSO to run over the routes approved by Indian Railways. Special Purpose Wagons (specially designed to carry specific commodity or a group of commodities) will to be covered under this scheme. 3. APPLICABILITY OF THE SCHEME This scheme shall be applicable exclusively on the wagons inducted under this scheme. Wagon inducted by investors prior to the commencement of this scheme shall not under any circumstances, be covered under this scheme. 4. ELIGIBILITY 145 Under this scheme the following shall be eligible to procure wagons:- i. Producers or consumers of the goods to be transported by rail. ii. PSUs, Central Public Sector Enterprises. iii. Logistics providers. iv. Port Owners/ Port Rail Companies. v. Mine Owners. vi. Wagon Leasing Company (WLC) (for use of end users) 5. PROCUREMENT OF WAGONS Procurement of wagon will be allowed only with prior administrative approval of Ministry of Railways (MOR). 6. 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 o inducted shall run on pre-approved circuits. 7. MAINTENANCE OF WAGONS Maintenance of wagons will be undertaken by IR on payment as per agreement to be executed with the wagon owner 8. FREIGHT RATES AND CONCESSIONS A rebate of 10 % shall be given on the base freight on each loaded wagon. Such rebate shall, however, be ordinarily for a period of 15 years subject to a cap to the extent of the lease charges payable by IR to IRFC for procurement of rolling stock. 9. 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. 10. 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. 146 11. FORCE MAJEURE Railways shall not be responsible for any loss, destruction, damage, deterioration or non delivery of goods arising from the following causes: i. Act of God. ii. Act of War. iii. Act of public enemies. iv. Restraint or seizure under legal process. v. 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. vi. Fire, explosion or any unforeseen risk. vii. Act or omission or negligence of the investor or consignor or consignee. viii. Natural deterioration or wastage in bulk, or weight due to inherent defect, quality or vice of the goods. ix. Latent defect. 12. DISPUTE RESOLUTION All disputes in regard to implementation of the agreements with the Zonal Railway, under this scheme, will be resolved through Arbitration and Conciliation Act 1996 as amended from time to time. The concerned Zonal Railways with whom the agreement has been signed will deal with litigations and court cases arising if any. 13. General conditions and procedure for procurement of General Purpose Wagons Following procedure and conditions are laid down for procurement of wagons by prospective investors under GPWIS: - i. Application, along with specific details of the proposal, should be submitted to Executive Director/Freight Marketing (EDFM), Railway Board. ii. The details should include number of rakes required, type of wagons, loading station(s), destination station (s) proposed specific route (s) or close circuit (s) and any other information relevant to the proposal. 147  iii. The proposal shall be examined in consultation with Traffic Transportation (TT) Directorate of Railway Board. iv. If the 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 Principal Chief Operating Manager (PCOM) and Principal Chief Commercial Manager (PCCM) of concerned Zonal Railways. v. On the basis of the approval of the Railway Board , an Agreement will be signed between the Principal Chief Commercial Manager (PCCM) of the concerned Zonal Railway and the applicant within 6 ( six) months from the date of approval from Railway Board. vi. Wagons should be procured in units of full rake with 4% maintenance spares and one brake van. However, 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. vii. Information regarding placement of order for procurement of rakes may be advised by the party (signatory to the agreement) to the PCOM of the concerned Zonal Railway as well as EDFM, Railway Board. viii. The General Purpose wagons (GPW) inducted under this scheme will not be merged in general pool of the Indian Railways. 14. Terminal for loading/ unloading i. The rakes procured under GPWIS will operate 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 with such private sidings/terminal, PFTs, ICDs, Ports, Mines or own its private terminals/sidings for handling of such wagons ii. The wagons can also be operated from railway goods sheds notified in terms of Wharfage Rules, wherever feasible, on the recommendation of PCCM and approval of PCOM. iii. Under no circumstance GPW rakes will be allowed to be stabled on Railway Land. The same have to be stabled in private siding/terminal of the customer when not in use. 148  iv. In case of default f the payment by the user, IR shall exercise lien on the privately owned wagons and the consignment loaded in such wagons to recover its dues. v. The ownership of the rakes under the scheme will be with the party who has procured the rake. vi. The rakes will be allowed to operate till the codal life of the rake or till they are in a condition safe to operate whichever is earlier. 15. Conditions for operation of General Purpose Wagons in GPWIS IR will operate as per the conditions prescribed below: - i. Loading in wagons procured under this Scheme will be permitted only against indents registered by end users subject to extant rules for allotment of wagons. ii. Wagons falling in this category shall not be merged in the wagon pool if IR. iii. Rakes comprising such wagons will be indentified as exclusively belonging to the party who had procured them. These wagons will have distinctive colour scheme to identify rakes. iv. If the End User does not place any indents, these wagons will remain idle in his premises. v. The circuit on which the rakes are proposed to be deployed by end user would be approved by Traffic Transportation Directorate, Railway Board. vi. For using railway goods shed, Terminal Access Charges, Detention Charges and Ground Charges shall be levied as per rule. 16. Stabling and Wharfage Charges i. Stabling charges as notified by MOR will be payable as per Rates Master Circular Demurrage- Wharfage-Waiver/2016/0 issued vide letter No.TC-I/2016/201/1dated 19.05.2016 and its amendment/revision/extension from time to time. i. If a GPWIS rake is detained in railway terminal (goods shed), beyond the permissible free time up to the time of release of the rake, detention charge shall be levied. ii. Ground Usage charge will be levied for the use of ground at Railway goods shed. 149 iii. GPWIS end user will be permitted a free time for use of ground at the railway goods sheds. iv. Permissible free time for use of ground for dealing with a GPWIS train will be same as is permitted under Wharfage rule for goods traffic. Type of goods shed Free time (in hours) Group-1 12 Group-1I 15 Group-1II 72 v. Ground Usage charge will be levied for full rake at the prevailing rate of Wharfage charge, as under and its amendment/corrigendum from time to time: Type of goods shed Present rate of Wharfage charge ( per wagon per hour or part thereof) Group-1 Rs.150/- Group-1I Rs.120/- Group-1II Rs.75/- vi. GPWIS end user may be permitted advance stacking of goods on the ground of any goods sheds for 24 hours free of any charge for loading on an incoming train. vii. Detention charge and ground usage charge will be treated on par with Demurrage charge and Wharfage charge for the purpose of consideration of waiver. 17. Freight Concessions in GPWIS i. Freight concession on base freight shall be provided to the end user loading in the rakes consisting of general purpose wagon procured GPWIS subject to following conditions :- ii. Freight rebate/credit of 10 % will be granted whenever the rake moves in loaded condition. iii. When the end user pays the freight either as Consignor or Consignee the rebate shall be granted on the RR itself. iv. The freight rebate of 10 % will be granted in each case on the Base freight Rate prevailing at the of booking. 150  v. The amount of rebate on freight will be capped to the extent of lease charge payable by IR to IRFC, both on annual as well as cumulative basis for an equivalent amount of capital raised by it for financing rolling stock for IR. vi. Freight rebate of 10 % on such loaded wagons will be granted ordinarily for a period of fifteen (15) years. Such rebate shall not exceed the lease charges payable by IR to IRFC for procurement of such wagons during the first fifteen (15) years of the lease agreement between IR and IRFC for leasing of rolling stock. Parcel Management System 1. Objectives: i. To increase the parcel traffic ii. Optimum utilization of parcel space. iii. To minimize the claims. iv. To bring the transparency in the system. v. To curtail the corruption. vi. To improve the railways image with customer satisfaction. 2. Main Features: i. Direct capture of parcel weight electronically. ii. Universal windows for all destinations for booking. iii. Single window for weigh-ment and cash payment possible. iv. Advance unloading guidance about inward parcel from the system at destination. v. Tracking parcel with help of barcode technology and through SMS. vi. Current details of Parcel are available on the website www.parcel.indianrail.gov.in. 3. Modules i. Forwarding note module ii. Booking module - Parcel, luggage, Parcel Van iii. Loading module - Loading guidance, Loading summary iv. Unloading module - Unloading guidance, Unloading summary v. Inward godown module vi. Delivery module 151  vii. Lease module viii. FSLA (Freight service and ledger account) Module ix. Training Module x. Bug reporting module xi. Data Warehouse module 4. PLUTO i. Tracking of parcels through online information of parcels on internet site www.parcel.indianrail.gov.in ii. Customer can track its parcel against PRR no. on the parcel receipt. iii. This tracking has been integrated with NTES system for expected time of arrival at destination. 5. Benefits to Railways from Parcel Management System: i. Loading generally according to priority thereby curtailing malpractices and complaints ii. Beneficial to Accounts for internal check iii. Information easily available for management. iv. Increase in parcel earnings due to increase in parcel traffic. v. Intermediate stations have advance information about the parcels being loaded, leading to optimum utilization of parcel space and control over overcarried packages. vi. Reduction in Claims vii. Potential for revenue generation based on improvement in service. 6. Benefits to Railway employees from Parcel Management System: i. Automatic freight calculation based on latest rules ii. Reduction in human errors. 7. Benefit to customers From Parcel Management System: i. Track latest status of the parcel through internet and SMS ii. Reduction in time required for weighment and booking. 152