In a surprise move, the Railway Ministry has withdrawn a special dispensation given to the Dedicated Freight Corridor Corporation to offer discounts for roll on-roll off traffic on its network. However, officials said the Ministry is likely to issue a more comprehensive circular outlining the discounts across traffic segments soon.
“…the Board’s letter….dated August 24, 2022 empowering DFCCIL to grant concession/quote special rates for its intra DFCCIL traffic stands withdrawn with immediate effect,” said a recent circular by the Railway Ministry.
Other terms and conditions notified earlier with respect to powers of DFCCIL as Railway administration shall remain the same, it further said.
The Ministry had just recently in August empowered DFCCIL to grant concessions and quote special rates for its intra DFCCIL traffic.
The objective was to help DFCCIL enhance the modal share and give attention to unconventional new traffic following industry representations. Roll on- roll off (RORO) traffic refers to a service where companies can transport their trucks on the railway rakes and then they are eventually driven off to the final destination.
“The Railway Ministry will come out with a revised clarification based on discussions with the DFCCIL. The Corporation had sought certain dispensations and the Ministry has agreed to it,” said an official with DFCCIL.
Biz models
Apart from RORO traffic, the DFCCIL is working on various other business models such as transport of small cargo and setting up of goods sheds and freight terminals. “There is no competition with Indian Railways. The idea behind DFCCIL is to increase the modal share of Railways by advantages of speed and reliability,” said another official.
