Rlys lowers RoRo freight rates by a third on dedicated freight corridors

New rates to ply for 6 months to test market appetite

After months of deliberation, the ministry of railways has temporarily lowered freight rates by around 30 per cent for roll-on/roll-off traffic on dedicated freight corridors, officials told Business Standard.

"It has been decided by Competent Authority to permit subject movement for Rs 28,111 per wagon for trucks up to 40 tonne and Rs 32,000 for trucks more than 40 tonne for movement between New Palanpur and New Rewari," the railway board said in an order.

Business Standard had exclusively reported on March 17 of the national transporter's plans to slash freight rates for truckers on dedicated freight corridors by 25-30 per cent.

The board clarified that these rates have been introduced on an experimental basis. These will be in effect from April 22 to October 31.

Earlier, a RoRo trip for a truck on the above mentioned 640-kilometre stretch would cost a transporter Rs 40,000-45,000 per wagon.

The Dedicated Freight Corridor Corporation (DFCC) of India has been ordered to submit a report on the market testing of these new rates, supplemented with market surveys, representations of stakeholders, total traffic achieved, and potential for additional traffic. 

In RoRo, trucks, with or without goods, are loaded on trains through a ramp provided at the dead-end of a loop on BRN wagons (specialised open wagons built solely for transportation of trucks). Before loading, the trucks are weighed and passed under a height gauge to ensure that they conform to the regulations for safe passage.

The railway board and DFCC have been deliberating on the issue after the latter had said that existing RoRo rates were too high for truckers to make the shift from roadways to railways.