Rail­ways re­duces freight rates to boost ex­ports

Cargo Talk - - News -

The In­dian Rail­ways has slashed the cost of trans­port­ing iron ore for ex­ports for the first time since March 2012 by levy­ing a flat dis­tance-based charge across all slabs in re­sponse to ‘sig­nif­i­cant changes in the mar­ket’.

In a cir­cu­lar is­sued by the Rail­way Board, the new dis­tance­based charge has been set at a uni­form 300 for all slabs and is ef­fec­tive from Septem­ber 8 for iron ore ex­ported for the pro­duc­tion of iron and steel and ce­ment. The move is part of the Rail­ways' dy­namic pric­ing pol­icy, which re­views charges in step with mar­ket rates.

There has been a sig­nif­i­cant change in the mar­ket of ex­port of iron ore and hence the is­sue of DBC has been re­viewed. Ac­cord­ingly, the cen­tral gov­ern­ment has ac­corded sanc­tion for re­vis­ing dis­tance-based charge levi­able on book­ing of the iron ore traf­fic for other than do­mes­tic consumption over all dis­tance slabs.

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