To sustain the rise in steel freight traffic, the Indian government owned and operated Indian Railways is offering a Long Term Traffic Contract with inbuilt incentives to domestic steel companies, a railway official said on Wednesday, August 30.
Indian Railways’ steel freight during the April-July period of 2017 was up 25 percent over the corresponding period of the previous fiscal year, resulting in total freight carried by the transporter during the April-July period of 2017 amounting to 375 million mt, or 15 million mt more than that recorded in the corresponding period of the previous year. With steel freight contributing significantly towards the rising total freight, the long-term traffic contract offered to steel companies is aimed at sustaining the momentum by retaining customers among steel producers, the official said.
The Long Term Traffic Contract would entail offers to steel companies such as assured freight rates of minimum guaranteed freight offered, assured supplies of railway wagons and discounts on incremental volumes of traffic offered beyond the minimum guaranteed volume contracted for transportation, the official said.
Incidentally, government owned and operated Steel Authority of India Limited is the first among domestic steel companies to have signed a Long Term Traffic Contract with Indian Railways.