The Hindu Business Line : Transport by rail now dearer

New Delhi, April 1 Rail transportation of almost all commodities has become dearer with Indian Railways imposing a “busy season surcharge” of 5-7 per cent from April 1 to June 30. While coke and coal will attract a five per cent surcharge, all other commodities will attract 7 per cent surcharge. Only container movement has been spared of the surcharge.

However, iron ore movement has been hit particularly hard with Railways increasing the freight charges by an additional 5.8 per cent through a change in classification. The iron ore customers would have to pay the surcharges over and above the higher freight rate classified.

Additionally, Railways has increased congestion charge for iron ore exports to 100 per cent (from 60 per cent) for the entire financial year. Traditionally, Railways has imposed congestion surcharges on all iron ore booked for good sheds and sidings that serve the ports. This has generally been with a presumption that all such iron ore is for export purposes.

However, on account of a procedural change, those iron ore firms who use rail good sheds and sidings near the ports for serving domestic consumption purpose would have to pay a 30 per cent surcharge, instead of the 100 per cent levels from April 14. For this, Railways has suggested a procedure for them, including a self-declaration that the iron ore is meant for domestic consumption.

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