New Delhi: Aiming at increasing freight volume, railways today launched a new traffic rationalisation policy which includes multi-point loading facility for covered wagons and increasing distance limit for mini-rake facility to 600 kms.
“Our 2/3rd revenue comes from freight. We have to improve freight revenue collection and we will also rationalise freight rates,” Railway Minister Suresh Prabhu said.
The policy aims at increasing freight by about 6 million tonnes as it has allowed multi-point loadings and also increased the distance limit for loading mini rakes to 600 kms from current 400 kms.
“Railways will be market-friendly. We will be guided by market forces and we will be market-oriented. We will keep upgrading our policies so that we do not lose our freight,” Prabhu said.
Earlier loading was permitted for point-to-point service which was favouring big players. But now it would allow multi-loading facility which will benefit small players too, railways said.
The public transporter has been witnessing continuous erosion of its share in cement dispatch. Railways share has come down from over 40 per cent at the beginning of the financial year 2015-16 to around 37.8 per cent in January 2016.
We need to gear up and all our steps will be completely transparent, Prabhu said.
The traffic rationalisation move is expected to help cement and fertiliser sectors in transportation to smaller markets as the policy entails allowing multi-point loading in covered wagons which was earlier not permitted.
The measures like introducing mini rake, multi-point loadings will provide much needed support to cement sector and at the same time, help Railways in ensuring that its share does not deplete any further.