![Page 1: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/1.jpg)
Initiatives to Enhance Revenue on Indian Railways
Technical Seminar Series
3rd Seminar
09 August 2018
![Page 2: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/2.jpg)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 2
![Page 3: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/3.jpg)
Context
Thursday, 08 August 2018 Initiatives to Enhance Revenue 3
![Page 4: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/4.jpg)
Growth
Thursday, 08 August 2018 Initiatives to Enhance Revenue
0
2
4
6
8
10
12
14
16
18
20
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 2016-17
Freight loading Passengers NTKM PKM
4
![Page 5: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/5.jpg)
Rail Coefficient
Estimate of National Transport Development Policy Committee
Thursday, 08 August 2018 Initiatives to Enhance Revenue
1951 1978-79 1986-87 2007-08 2017-18
89
65
53
30 33
Freight Coefficient
1951 2011-12
68
10
Passenger Coefficient
5
![Page 6: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/6.jpg)
PASSENGER26.12%
OTHER COACHING
2.63%
GOODS67.15%
SUNDRY4.09%
Shares in earnings
Thursday, 08 August 2018 Initiatives to Enhance Revenue 6
![Page 7: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/7.jpg)
Coal, 48%
RMSP, 2%
Iron or Steel, 4%
Iron Ore, 12%
Cement, 9%
Foodgrains, 4%
Fertilizers, 4%POL, 4% Container, 4% Other Goods, 7%
Commodity share in earnings
Thursday, 08 August 2018 Initiatives to Enhance Revenue 7
![Page 8: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/8.jpg)
Coal43%
Food6%
Metallic Ores4%
Metal & Product3%
Stone2%
Others42%
Commodity wise Revenue - US
Coal44%
Food5%
Metallic Ores16%
Metal & Product
4%
Stone3%
Others28%
Commodity wise Revenue - India
Thursday, 08 August 2018 Initiatives to Enhance Revenue 8
![Page 9: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/9.jpg)
Customer focus
Thursday, 08 August 2018 Initiatives to Enhance Revenue 9
![Page 10: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/10.jpg)
Mahatma Gandhi on customer
Thursday, 08 August 2018 Initiatives to Enhance Revenue 10
![Page 11: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/11.jpg)
Railway Freight Services vis-à-vis Customer Expectations
Price Competitiveness of this Mode of Transport
Only in bulk and for long distances
For customers with captive sidings
Out priced by other modes since multiple handlings are involved in rail transport
(issue of first mile and last mile connectivity advantage)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 11
![Page 12: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/12.jpg)
Ease of doing business with the transporter
Customers need to approach Railways- mindset?
Customers having sidings have an advantage
Entry barriers high- e.g. construction of a siding both costly and cumbersome
IT applications like E-RD, E-payment, etc have improved ease of doing business with Railways
Railway Freight Services vis-à-vis Customer Expectations
Thursday, 08 August 2018 Initiatives to Enhance Revenue 12
![Page 13: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/13.jpg)
Predictability of wagon supplies-time lag between demand and supply of wagons
Wide variation- both among areas and commodities
Rake may be supplied immediately on demand or may have a substantial lag
(10 months in some cases!)
Priority to essential commodities like fertilizers impacts supply of rakes to other commodities
Railway Freight Services vis-à-vis Customer Expectations
Thursday, 08 August 2018 Initiatives to Enhance Revenue 13
![Page 14: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/14.jpg)
Passenger
Thursday, 08 August 2018 Initiatives to Enhance Revenue 14
![Page 15: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/15.jpg)
Archaic systems
On platform loading
Antediluvian rules including packing conditions
Extremely hostile customer interface
Other coaching
Thursday, 08 August 2018 Initiatives to Enhance Revenue 15
![Page 16: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/16.jpg)
Freight Initiatives
Thursday, 08 August 2018 Initiatives to Enhance Revenue 16
![Page 17: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/17.jpg)
Wagon Investment Schemes
![Page 18: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/18.jpg)
Initially introduced in April 2008
Objective:
To attract private investments in
Special Purpose Wagons (SPW) and High Capacity Wagons (HCW)
by end-users, or Wagon Leasing Companies for leasing to the end-user
Liberalised Wagon Investment Scheme (LWIS)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 18
![Page 19: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/19.jpg)
Types of wagons
Liberalised Wagon Investment Scheme (LWIS)
BTAP BFNS
BTCS
Thursday, 08 August 2018 Initiatives to Enhance Revenue 19
![Page 20: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/20.jpg)
All commodities covered – except coal, coke, ores & minerals
No Registration Fees
Has to apply for a minimum 1 rake for specific circuit
Has to procure full rake composition, including brake-van, as notified by IR with 4% additional
wagons as maintenance spares
Liberalised Wagon Investment Scheme (LWIS)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 20
![Page 21: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/21.jpg)
Maintenance of the wagons by IR – on payment
Agreement ‘valid for the codal life’ of the type of wagon inducted
LWIS rakes to operate between private terminals equipped to handle SPW
(LWIS Operator must have a tie up with private terminals or own its terminals or sidings)
Railway good sheds may also handle such trains
Liberalised Wagon Investment Scheme (LWIS)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 21
![Page 22: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/22.jpg)
Initially introduced in May 2010
Objective:
To increase rail share of the non-traditional commodities
(e.g. molasses, fly ash, edible oil, caustic soda, chemical, petro-chemicals, alumina, bulk cement, etc)
Special Freight Train Operator Scheme (SFTO)
Category Commodities Registration fees
1 Bulk fertilizers, bulk cement, fly-ash ₹ 7 crore
2 Bulk chemicals, petrochemicals, bulk alumina ₹ 10 crore
3 Steel products ₹ 10 crore
4 Molasses, edible oil, caustic soda ₹ 3 crore
Thursday, 08 August 2018 Initiatives to Enhance Revenue 22
![Page 23: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/23.jpg)
SFTO (BRNA Wagon)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 23
![Page 24: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/24.jpg)
Introduced in April 2018
Objective:
To cater to long-term demand of Railway Freight Customers, and to achieve accelerated growth
in freight traffic
Feature
Distinct colour code (will not be mixed with IR’s pool of wagons)
Eligibility
General Purpose Wagon Investment Scheme (GPWIS)
Producers or consumers of goods transported
by rail
PSUs, CPSEs
Logistics providers
Port owners/Port Rail Companies
Mine owners
Wagon Leasing Companies (WLCs)
for use of end-users only
Thursday, 08 August 2018 Initiatives to Enhance Revenue 24
![Page 25: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/25.jpg)
GPW (BOX,BOXN)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 25
![Page 26: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/26.jpg)
Introduced in February 2013
Objective:
To increase IR’s market share in transportation of automobiles (two and three
wheelers, cars, tractors, etc) – by inviting private participation
Automobile Freight Train Operator Scheme (AFTO)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 26
![Page 27: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/27.jpg)
AFTO (BCABM)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 27
![Page 28: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/28.jpg)
Wagons
Only special purpose wagons (SPW) designed to carry automobiles
Commodities
Passenger cars, SUVs, two/three wheelers, tractors, mini trucks, chassis, shells
of cars, automobiles in CKD condition
Special feature
Back-loading permitted with automobile verticals (auto ancillaries, spare-parts)
Automobile Freight Train Operator Scheme (AFTO)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 28
![Page 29: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/29.jpg)
Introduced in April 2008
Objective
To develop a strong wagon leasing market with a view to bring in wagons of better design
Focus on
High Capacity wagons, Special Purpose wagons and wagons for containers
Wagons to be leased to end-users and operators as permitted in the concession
Wagon Leasing Scheme (WLS)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 29
![Page 30: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/30.jpg)
Comparison of features
Type of wagon
WLS HCW
SPW
Wagon for Container movement
LWIS SPW and HCW
SFTO Special Purpose and High Capacity Wagon
AFTO SPW (BCACBM)
GPWIS General Purpose wagons( BOX, BOXN, BCN etc.)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 30
![Page 31: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/31.jpg)
Comparison of features
Ownership of the asset
WLS WLC
LWIS End users (investor/ Lessee ) or WLC (Lessor)
SFTO SFTO Investor till codal life of wagon
SFTO will be Consignor and Consignee for RR
AFTO AFTO Investor or WLC
AFTO will be Consignor and Consignee for RR
GPWIS Party who has procured the rake (User or WLC )
Thursday, 08 August 2018 Initiatives to Enhance Revenue 31
![Page 32: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/32.jpg)
Comparison of features
Period of Agreement
WLS Registration of a WLC will be valid for 20 years
LWIS IR will have no right to use these wagons subject to prior written
agreement between IR and such investor
SFTO
20 years, extendable till expiry of codal life of wagonsAFTO
GPWIS Codal life
Thursday, 08 August 2018 Initiatives to Enhance Revenue 32
![Page 33: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/33.jpg)
Comparison of features
Maintenance cost
WLS By IR on payment
@5% of the capital costLWIS
SFTO
By IR at its own cost during the currency of the agreementAFTO
GPWIS By IR on payment. @2% of the capital cost
Thursday, 08 August 2018 Initiatives to Enhance Revenue 33
![Page 34: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/34.jpg)
Comparison of features
Freight rebateScheme Quantum To
WLS If WLC purchases wagons from CTO, SFTO, AFTO and end users, the
applicable rebate will be that of the policy under which the wagons were
procured initially
Lessee (i.e. end
user)
LWIS SPW -15%
HCW -12%
On base freight respectively for a period of 20
years
End user
SFTO SPW 12% and
HCW 12%+2%)
Additional 2% rebate is granted on base freight for each increase of 10% in throughput per train
End user
AFTO Haulage charges as notified by IR from time to time End user
GPWIS 10% on base freight on each loaded wagon for a period of 15 years with a
cap to the extent of lease charges payable by IR to IRFC
Payer of freight
Thursday, 08 August 2018 Initiatives to Enhance Revenue 34
![Page 35: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/35.jpg)
Comparison of features
Who gets the scrap
WLS Not mentioned
LWIS Investor will not be entitled to any residual value of the rake procured by him
SFTO Not mentioned
AFTO Not mentioned
GPWIS Not mentioned
Thursday, 08 August 2018 Initiatives to Enhance Revenue 35
![Page 36: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/36.jpg)
Tariff Schemes
![Page 37: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/37.jpg)
Long Term Tariff Contract with key freight customers (LTTC)
Objectives:
Long term Gross Freight Revenue commitment from customers at pre-determined price
escalation principle
Grant of incremental Gross Freight Revenue (GFR) linked and volume linked discount to
customers
Main Features:
Discounts range from 1.5% to 35% as per the incremental growth in GFR
Customers are required to offer at least 1 million tonne traffic per year
Thursday, 08 August 2018 Initiatives to Enhance Revenue 37
![Page 38: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/38.jpg)
Long Term Tariff Contract with key freight customers (LTTC)
Other Features:
Period of agreement – not less than three years and not more than five years
Customer will have to offer 1 million tonne in the first year and more than 3
million tonne traffic during the agreement period
Customers offering more than 5 million tonnes of traffic per year will get
discount on retention of traffic subject to same amount of GFR being
maintained over the period of the agreement
Thursday, 08 August 2018 Initiatives to Enhance Revenue 38
![Page 39: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/39.jpg)
Long Term Tariff Contract with key freight customers (LTTC)
Excluded commodities
All commodities below class-100, coal & coke, iron ore, military traffic, POL, RMC, container and
automobile traffic
Freight Rate
Fixed freight rate as prevalent (at that date) during the beginning of the each year of the
agreement period
Any increase in rates during the year effective from the beginning the next year of the
agreement
Discount in freight under this scheme will be given as refund within 45 days
Thursday, 08 August 2018 Initiatives to Enhance Revenue 39
![Page 40: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/40.jpg)
Long Term Tariff Contract with key freight customers (LTTC)
Agreement
To be signed at Zonal Railway level
For multi-zonal operations will be signed with that zonal railway which deals
with maximum traffic of that customer
Customer can opt for single zone or multiple zone agreements or both
Beneficiaries
Key customers such as cement, fertilisers, steel industries etc
Thursday, 08 August 2018 Initiatives to Enhance Revenue 40
![Page 41: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/41.jpg)
Double Stacked Dwarf Containers (DFDC)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 41
![Page 42: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/42.jpg)
Double Stacked Dwarf Containers (DFDC)
A new delivery model to increase loadability and attract new traffic ‘under wire’
Trial for running of Double Stack Dwarf Container successfully conducted on
Jamnagar-Ludhiana route on 02.03.2017.
Haulage rates structure issued on 14.07.2017
Tariff of this delivery model is 17% lower than the tariff prevalent for normal ISO
container
Feasibility of other routes being examined
Thursday, 08 August 2018 Initiatives to Enhance Revenue 42
![Page 43: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/43.jpg)
Liberalised Automatic Freight Rebate Scheme in Empty flow Directions
Loaded traffic in empty flow direction being charged at LR1 (with certain
conditions) – average discount of 30 – 40%.
Loading increased by 208% by13.97MT)
Earning has increased by 212% (by ₹867.70 Cr.) compared to last year.
In 2018-19: 1.29 MT of additional loading generated along-with ₹48.48 Cr. of
earning –from April 18 upto June 18.
Thursday, 08 August 2018 Initiatives to Enhance Revenue 43
![Page 44: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/44.jpg)
Station-to-Station Rates
Guidelines issued on 29.09.2016Up to 30% concession for incremental traffic between station to station
15% concession available for retention of traffic
Loading available from a cluster of stations within 150 km from each other
Two benchmarks
Customer has to cross own loading benchmark
Also to cross station or cluster benchmark for that commodity
Potential for additional traffic of 5 million tonne
Zonal Railways have signed 72 agreements till 31 March 2018
Thursday, 08 August 2018 Initiatives to Enhance Revenue 44
![Page 45: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/45.jpg)
Other changes in policies
Rationalised policy on Merry Go Round System issued w.e.f. 01.04.2016
To facilitate transportation of coal from mines to power houses near pit heads
MGR freight rates kept very competitive about 82% lower than the normal freight rate
Thursday, 08 August 2018 Initiatives to Enhance Revenue 45
![Page 46: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/46.jpg)
Other changes in policies
Discount for loading of bagged consignment in open and flat wagons issued on
24.10.2016
30% discount granted on loading of Fly Ash and Urea (neem coated Urea)
20% discount granted on loading of Cement, China clay, Chemical, Food-grains etc.
Thursday, 08 August 2018 Initiatives to Enhance Revenue 46
![Page 47: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/47.jpg)
Other changes in policies
RO-RO New Delivery Model
ZR shall decide the rate/charge as per local conditions
Weighment of trucks permitted on trial basis on road weighbridges to encourage loading
Thursday, 08 August 2018 Initiatives to Enhance Revenue 47
![Page 48: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/48.jpg)
New customer friendly initiatives
Electronic transmission of Railway Receipt
Pilot project launched on 30 January 2015 at HPCL/Loni over CR
Second phase implemented over NR in March 2018
Zonal Railways asked to take steps for registration of customers under e-RD module of FOIS
FOIS/CRIS is working on system design modification to include container traffic under eT-RR
Thursday, 08 August 2018 Initiatives to Enhance Revenue 48
![Page 49: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/49.jpg)
New customer friendly initiatives
Customer friendly rationalisation of weighment policy
Variation in two weighment results - 2nd weighment will be the chargeable weight
Non feasibility of load adjustment of overloaded wagon at originating point Weighbridge out of
order for three months
Dispensation from mandatory weighment to standard bag consignment in containers, pet coke,
met coke, chuni dal and De-oiled Cake
Pre-weigh bin or weight-o-meter
Thursday, 08 August 2018 Initiatives to Enhance Revenue 49
![Page 50: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/50.jpg)
Comments invited
Draft Proposed Policy on Advance Freight
Customers and general public asked for comments on the draft policy
Offer to major customers to get priority transit on payment of advance freight for the ensuing
period
Thursday, 08 August 2018 Initiatives to Enhance Revenue 50
![Page 51: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/51.jpg)
Terminals
![Page 52: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/52.jpg)
Private Freight Terminals
Policy first introduced in 2012
Objective:
To open the area of terminal development to logistic services providers, to create
world-class facilities
PFTs to be developed on private land – to deal with railway traffic,
including parcel and container traffic
Thursday, 08 August 2018 Initiatives to Enhance Revenue 52
![Page 53: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/53.jpg)
Goods Sheds
Renewed focus on upgradation and modernisation of goods shed
Objective:
Upgrade and modernise goods sheds to attract more and varied traffic by
enhancing customer experience
Thursday, 08 August 2018 Initiatives to Enhance Revenue 53
![Page 54: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/54.jpg)
Passenger related Initiatives
Thursday, 08 August 2018 Initiatives to Enhance Revenue 54
![Page 55: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/55.jpg)
PA
SS
EN
GE
RS
(IN
MIL
LIO
NS
)
640
650
660
670
680
690
700
710
720
2017-18 ACTUAL2018-19
TARGET(2018-19)
Seasonal variations in Passenger traffic
Thursday, 08 August 2018 Initiatives to Enhance Revenue 55
![Page 56: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/56.jpg)
Initiatives to enhance earning through Passenger Services
Augmentation of ticket selling capacity
Automatic Ticket Vending Machines (ATVM), ticket booking through mobile
phones, Jan Sadharan Ticket Booking Sewaks (JTBS), Station Ticket Booking
Agents (STBA), Yatri Ticket Suvidha Kendra (YTSK)
Thursday, 08 August 2018 Initiatives to Enhance Revenue 56
![Page 57: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/57.jpg)
Initiatives to enhance earning through Passenger Services
Augmentation of on-board capacity
Additional coaches, Festivals and Holiday Special trains during, Suvidha trains
Special measures
Tatkal Quota, Premium Tatkal Quota, Flexi-fare system, Suvidha trains
Thursday, 08 August 2018 Initiatives to Enhance Revenue 57
![Page 58: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/58.jpg)
Initiatives to enhance earning through Passenger Services
Vikalp
Alternate Train Accommodation Scheme (ATAS) known as VIKALP
To provide confirmed accommodation to waitlisted passengers
To ensure optimal utilization of available accommodation
Increase in RAC berths
The number of RAC berths has been increased to provide additional
accommodation to the passengers
Thursday, 08 August 2018 Initiatives to Enhance Revenue 58
![Page 59: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/59.jpg)
Initiatives to enhance earning through Passenger Services
New Trains
Gatimaan, Tejas, Humsafar and Antyodaya with higher fare structure than Mail/Express
trains
Some fare increase
Platform tickets from ₹5 to ₹10
Minimum fare for non-suburban from ₹5 to ₹10
Clerkage and Cancellation charges
Thursday, 08 August 2018 Initiatives to Enhance Revenue 59
![Page 60: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/60.jpg)
Initiatives to enhance earning through Passenger Services
Fare rebates and discounts
10% rebate on base fare on vacant seats booked after preparation of first chart in all
trains including Rajdhani, Shatabdi and Duronto trains.
Discounted fares have been offered in some trains which showed less patronage over
some part of the journeys
Optimum use of quotas
Powers delegated to PCCMs to decide the percentage of Tatkal quota in
Rajdhani, Shatabdi and Duronto trains based on the utilization of Tatkal quota within
certain limits
Thursday, 08 August 2018 Initiatives to Enhance Revenue 60
![Page 61: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/61.jpg)
Non-fare Initiatives
Thursday, 08 August 2018 Initiatives to Enhance Revenue 61
![Page 62: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/62.jpg)
Rail Budget 2016-17 announced creation of NFR Directorate:
“To reorganize Railway Board along Business Lines and setting up cross
functional Directorates in Railway Board to focus on areas for enhancing
revenues by 10 to 20% from Non Tariff Sources.”
Background
Thursday, 08 August 2018 Initiatives to Enhance Revenue 62
![Page 63: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/63.jpg)
Advertisement
Stations
FOBs, ROBs, RUBs
Railway buildings, Loco Sheds, Production Units, Structures on Railway
premises (like water tanks, Microwave towers, OHE masts etc)
Coaches (both inside/outside), Locomotives, Wagons
Land along with tracks and near railway stations
Subjects allocated
Thursday, 08 August 2018 Initiatives to Enhance Revenue 63
![Page 64: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/64.jpg)
Parking of vehicles in railway land other than at stations;
Onboard (trains) and off-board (stations) entertainment,
Sponsorships of activities and events at stations, branding etc.
Radio, Video, Internet, Wi-Fi, Mobile Apps, Interactive services
(like video games etc) in railway premises including stations
To provide innovative suggestions ideas and inputs related to Tourism and Tourist trains for
increasing revenue
Subjects allocated
Thursday, 08 August 2018 Initiatives to Enhance Revenue 64
![Page 65: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/65.jpg)
Rail Display Network
Out of Home Advertisements
Mobile Assets Advertising
Content on Demand
Unsolicited demand
NINFRIS
Simplification of Parking policy
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 65
![Page 66: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/66.jpg)
Rail Display Network
To explore non-fare revenue to Rail Display Network to enable real time flow of
information to passengers and also unlock digital advertising potential which will
lead to increase in non-fare revenue.
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 66
![Page 67: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/67.jpg)
Out of Home Advertisements
To monetize advertising assets apart from station area such as circulating areas
of A1 to F category of Railway stations, Rail over Bridge (ROB), Rail under
Bridge (RUB), Level Crossing Gates, Railway Colonies, Railway
Workshops, Railway Production Units, Railway Land along the tracks etc.
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 67
![Page 68: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/68.jpg)
Mobile Assets Advertising
To offer combined freight packages consisting of internal and external
advertisement to help realize economies of scales and get more marketing
flexibility thereby getting enhanced earnings for Indian Railways.
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 68
![Page 69: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/69.jpg)
Content on Demand
To detail the various conditions to monetize entertainment based services on
trains and stations.
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 69
![Page 70: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/70.jpg)
Unsolicited proposals to enhance NFR
To consider … unsolicited proposals made by outside agencies, with a potential
for enhancement of earnings by enabling private and public participation in the
conceptualization of an earning project/scheme and permitting finalization of the
same.
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 70
![Page 71: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/71.jpg)
NINFRIS
New and Innovative Ideas and Concepts Scheme for Generation of Non Fare Revenue
To promote new ideas and concepts related to passenger convenience and enhancing Non Fare
Revenue a policy on Indian Railways has been formulated and issued on to Zonal Railways of its
effective implementation.
Focus on all new and innovative ideas, concepts, proposal, ideas, themes, etc., that have not
been tested before and with potential to enhance non-fare revenue earnings.
One year tenure for the first contract
Opportunity cost approach
Policies created
Thursday, 08 August 2018 Initiatives to Enhance Revenue 71
![Page 72: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/72.jpg)
Estimates of earning
Sr. Item RE 2017-18 BE 2018-19 Remarks
1 COD 50 100 Discharged on 03.07.18
2 RDN 300 400 Discharged on 17.05.18
3 OOH 150 400 Discharged 22.03.18
4 ATM 300 150 Tender invited twice- but no response
5 Mobile Assets 50 150 Delay led to delegation to Zones on
16.02.18
Total 850 1200 Earning from Advertisement and Publicity
204.10
Thursday, 08 August 2018 Initiatives to Enhance Revenue 72
![Page 73: Increasing efficiency on Indian Railwaysirastimes.org/Article_pdf/Tech Sem 09 Aug.pdf · 2018. 8. 10. · Comparison of features Type of wagon WLS HCW SPW Wagon for Container movement](https://reader035.vdocument.in/reader035/viewer/2022071515/61371db80ad5d20676486970/html5/thumbnails/73.jpg)
Thank you