New Delhi, Jun 16 (PTI) The Railway Ministry will not collect Busy Season Charge for one month from container train operators for moving empty flat wagons to ports for loading cargo.
“Considering the ongoing situation in the Middle East, it has been decided by the Competent Authority to grant temporary exemption from the levy of Busy Season Charge for movement of empty flat wagons to ports,” a Ministry circular dated June 15 said.
According to the circular, the exemption will be effective for one month, from June 17 to July 16.
“To ensure targeted relief, exemption from BSC will be restricted to those cases where return traffic in the form of loaded container trains from ports is assured,” the circular added.
Simplifying the condition, officials said the exemption would be available only for those empty wagons that return as loaded container trains.
“We want to ensure that the concession benefits actual container traffic and not those who merely move empty wagons,” an official said.
Officials noted that Railways normally levies BSC in addition to the base freight charge, increasing the cost of freight transportation from ports to inland destinations.
“Empty flat wagons are moved to ports to pick up export and import containers. The situation in the Middle East has disrupted shipping schedules and container availability. The purpose of removing BSC is to reduce logistics costs and encourage container movement,” officials said.
The circular also directed the department concerned to develop a mechanism in the Terminal Management System (TMS) of the Freight Operations Information System (FOIS) for implementing the exemption.
Container Train Operators (CTOs) have been asked to submit a declaration stating that they would pass on the benefit of the exemption to customers through a corresponding discount.
“We want the concession to ultimately benefit exporters, importers and cargo owners rather than remain entirely with the operators,” officials said.
In India, the Railway Ministry has licensed several private companies, in addition to its PSU, Container Corporation of India (CONCOR), to operate container train services on the Indian Railways network.
These companies book cargo from customers, own or lease container wagons and containers, operate logistics terminals, Inland Container Depots (ICDs) and freight stations, and pay charges to Indian Railways for the use of its infrastructure. PTI JP AMJ AMJ
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