Railways move ahead on special freight train operator scheme

To boost the share of railways freight movements among end users, the ministry of railways has finalised its 'special freight train operator scheme' announced by railway minister Mamta Banerjee during her railway budget speech fro 2010-11.

The scheme aims to increase the share of railways in the movement of non-conventional traffic like bulk cement, bulk fertilisers, fly ash, selected chemicals and petrochemical, bulk alumina, steel products requiring SPW, vegetable oil, molasses and caustic soda that require the deploymewnt of special purpose wagons.

In her railway budget speech this year, minister Mamata Banerjee had announced the early notification of a policy to permit private operators to invest in infrastructure on the lines of container train operators, and run special freight train for commodities requiring specialised wagons.

The scheme would help the railways acquire a larger trffic shafre without a higher capex on specialised rolling stock for such specialised commodities.

Prior to the presentation of Railway Budget 2010-11, the minister held pre-budget discussions with representatives of chambers of commerce and industry followed by a post-budget workshop between Railway board and industry representatives to ascertian the requirements of rail users.

The special freight train policy provides for a concession period of 20 years, extendable till expiry of life of wagon. The maintenance of wagons during this period will be provided by the railways at its own cost except for the cost of special components, which will be paid by the owner of these wagons.