
Exim News reported that the Indian Railways is expected to extend the 30% discount on empty flow direction for freight carriage till December 007 although the scheme was valid till September 2007. In addition, the mini rake scheme will also continue.
Railway Ministry official said the Railways are enthused by the remarkable freight growth rate of 14% during July to September 2007-08, which prompted the extension. The idea is to attract maximum traffic from our only competition, which is road. The truck rate is significantly higher for the return trip, whereas the Railways charge the same rate in both directions.
The official explained "It was noted that up to 40% of trains returned empty. As the marginal expenditure incurred in loading freight in the empty flow direction was low, heavy discounts of up to 30% were announced on the reverse flow direction to ensure high utilization of assets through the year."
The scheme does not include transportation of coal and iron ore. Under the scheme of mini rakes, extra wagons are made available without any additional charge in the non peak season and at a freight rate higher than block rake trains by 5% in the peak season. The Railways’ peak season is from September to February.










