Home > Indian Industry News, Railways > Private Freight Terminal Policy of Indian Railways Finalised

Private Freight Terminal Policy of Indian Railways Finalised

The Union railway ministry has finalised policies for implementation of the private freight terminal and special freight train operator schemes on a public-private partnership model.

While the intention of the policy may be clear, implementation of projects under the PPP route are yet to take off in the desired manner.

Excerpts of the policy

  • The rail ministry is looking to integrate rail transport with the supply chain and to increase rail share in non-conventional traffic, requiring special wagons for commodities such as fly ash, caustic soda and bulk fertilisers, among others.
  • Container operators are eligible to develop private freight terminals. This move will facilitate companies that already have a licence for container operations to set up their own terminals.
  • Period of concession for 20 years, extendable till expiry of codal life of wagon.
  • Train operator will charge tariff from end user and will be the consignor and consignee.
  • Rebate of 12 per cent on base freight for 20 years or recovery of cost whichever is earlier.
  • Minimum investment for 3 rakes.
  • Logistics companies with one year experience and net worth of at least Rs 10 crore or annual turnover of Rs 20 crore are eligible.
  • Revenue sharing in the scheme will be 50% of the terminal charge or Rs 10 per tonne, whichever is higher, with a moratorium of two years for brownfield terminals and five years in case of greenfield terminals. The terminal charge will be increased from the sixth year onwards.
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