short Lead Traffic - Commercial Matters

 

Short Lead Traffic

• Sources: Rate Circular 16 of 2020 and  Corrigendum-1 to RC 16/2020 dt. 05.08.2020. Validity is extended from time to time. 

• Salient Features: 

• Up to 100 KMs

• Agreement Period: Maximum 10 Years

• Applicable for all Traffic (except Coal & Coke, Iron Ore, Military Traffic, Rail Material Consignments and Container Traffic )

• Permitted Distance slab and Freight Concession as follows,

Distance Slab	Freight Concession
0 -50 KM	50%
51 - 75 KM	25%
76 -90 KM	10%
91- 100 KM	NIL

• The applicable concession as mentioned above shall be given on Normal Tariff Rate (NTR).

• This concession shall not be available with any other concession. (except 6% concession on freight applicable to traffic booked to and from the NorthEast Frontier Railway (NFR)region).

• CRIS has developed necessary modifications in FOIS.

• The agreement shall have a clause of enhanced loading commitment supported with Bank Guarantee. Depending upon the commitment, the percentage concession may vary from the rates mentioned in above referred Rates Circular.

• Zonal Railways must assess the concession vis-a-vis the additional traffic and revenue projections to determine the rate of concession. 
• 
  
• Zonal Railways shall evaluate the fulfillment of committed traffic and revenue projections annually, and realize the unmet revenue from customer or from Bank Guarantee at the end of year. 

• Zonal Railway shall get the MIS report designed in TMS through FOIS/CRIS before effecting the agreements, so as to get data on traffic, revenue and concession given for assessment of performance. 

Objective of the Scheme

* To attract short-distance freight traffic from road transport to Railways.

* To make Rail freight competitive for nearby destinations where road transport has an advantage.

Practical Examples

Distance: 40 km

* Normal Freight = ₹100 per tonne

* Concession = 50%

* Freight Charged = ₹50 per tonne

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EOL - Engine On Load - Commercial topic

 

 

EOL - Engine On Load 

 

• Source: New/Revised policy on EOL Freight Marketing Circular 16 of 2023   - In supersession of all the earlier instructions issued on the EOL.

 

• Need of the Circular 16 ?  

1.    Launch of GCT - Gati-Shakti Cargo Terminals.

2.    Amendments to PFT & Private Siding policies.

3.    Addressing operational issues. 

4.    Optimum utilization of Rolling stock. 

5.    Prompt clearance of Freight trains from the Terminals

• EOL stands for Engine On Load. 

 

• What is EOL? A system of operations that would permit the placement and clearance of the rake at the Terminals by the same Locomotive within the time. 

 

• In EOL,  

1.    The Train locomotive will remain available during the loading and/or unloading operations in the Terminal, 

2.     And, wait on Railway’s account (till the free time permitted for loading/unloading 

3.    So as to work the train (rake) immediately after loading/unloading operation is completed.  

• Terminals under EOL means Terminals operated by GCT - Gati-Shakti Terminals, PFT - Private Freight Terminals & Private Sidings.  

• All New Cargo terminals  - preferably operate under EOL.  Exemption only be given under operational/geographical constraints with the consent of Zonal Operating Dept and the personal approval of the DRM.  

  

• Through distance basis:  Terminals notified for charging on Through distance basis can operate under the EOL system of operations. 

 

• Who built facilities for loading/unloading  -  Terminal operators 

 

Conversion: 

A.             Non EOL into EOL 

·        Condition of “Through distance basis”. 

·        Signing an EOL agreement with the Division. 

B.    EOL into Non EOL or Partial EOL

·        Where problems are being faced in effective implementation of EOL system in Terminals due to operational/geographic constraints. 

·        In Division: Should send “Detailed operational justification” with the approval of DRM to the Zonal Hqrs. 

·        In Zonal Hqrs: Joint approval of PCOM & PCCM who will pass a reasoned speaking order. 

·        The Terminal operator will be required to clear all the pending dues and withdraw all pending arbitration/court cases against the Railways. 

 

• What is Partial EOL ? 

1.    Certain Terminals serves old plants and new plants (one of them is under EOL) 

2.    Terminals serve some commodities under EOL (Example: Unloading of Coal) and some commodities under Non EOL (Example: Loading of Fly ash)   

 

• Agreement Signing Authority: 

1.    Railways -   Sr.DCM

2.    Terminal - Legal Representative 

 

• Cost of Commercial Staff borne by the Terminals

 

Terminal Type	Categories	Cost levied
EOL	All	Nil
Non EOL/Partial EOL	GCT	Nil
	PFT/Private Siding	One staff

  

• EHC - Engine Hire Charges: Levied at the notified AIEHC for one Locomotive only for Each Rake  (though multi-Loco or double headed Loco used as per the need of the load)

 

Status of Loading / Unloading	Status of Locomotive	EHC	Remarks
Within Free Time	Present / Absent	Nil
Beyond Free Time	Absent	Nil
	Present	Yes   (From the end of Free Time to the completion of Loading / Unloading	Irrespective of the fact, whether the shunting operations have been performed or not

• Siding Charges - Nil for the EOL Terminals as well as Bulb type Terminals. 

 

• What is Bulb type Terminal? The Terminal where freight is charged on the basis of through distance up to a specified loading or unloading point and not for the entire length of the Terminal. 

Key points for MCQ:

1.    EOL stands for Engine On Load

2.    GCT stands for Gati-Shakti Cargo Terminal

3.    PFT stands for Private Freight Terminal

4.    EHC stands for Engine Hire Charges 

5.    AIEHC stands for All India Engine Hour Cost

6.    New/Revised Freight Marketing Circular 16 of 2023 (on EOL) 

7.    All New Cargo terminals  - preferably operate under EOL.

8.    Conversion of EOL into Non EOL or Partial EOL: Approval of DRM, then Joint Approval of PCOM & PCCM with reasoned Speaking order.

9.    Agreement Signing Authorities: Railways - Sr.DCM and Terminal - Legal Representative. 

10.                    EHC applicable only: Beyond Free time subject to presence of Locomotive during the Loading/Unloading operations at the Terminals.  

11.                    Cost of One Commercial staff borne by the Non EOL Terminals/Partial EOL Terminals of PFT/Private Sidings only. 

12.                    Cost of the Commercial staff - Nil for EOL Terminals of all categories and Non EOL/Partial EOL of GCT. 

13.                    Siding Charges - Nil for the EOL Terminals as well as Bulb type Terminals.  

 

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Pass Rules - Loss of Metal Passes

 

Establishment Rules: Pass Rules:                                                       

Recovery for loss of Metal Passes: Gold ₹26,113/-, Silver ₹4,964/-, and Bronze ₹4,960/-.

Recovery is made from the officer reporting loss.

Recovered amount is credited under Miscellaneous Railway Receipts.

Authority: Railway Board order dated 11.10.2021.                           

PTO - Preferential Traffic Order 2026-27

PTO - Preferential Traffic Order   

 

• Source: The PTO General Order No. 100  (for allotment of Wagons) w.e.f 01.04.2026. Unless canceled earlier, it will remain in force up to 31st March 2027  Click for GO No 100 dated 17.03.2026

• Section 70 of the Railways Act, 1989 - First comes first to serve - Basis for Booking and transportation of Goods.  No priority or No preference  

 

• Section 71 of Railway Act, 1989 - Orders are issued by Central Government to Railways Administration from time to time - For giving priority or preference to booking and transportation of particular types of commodities in the interest of the Nation / Public in General or for Industrial Development. 

 

• PTO - Preferential Traffic Order - Published by the Central Govt in Gazette and informed the Railway Administration.  

 

• PTO validity - 1 Year.  

 

• The priority route is decided and Goods are carried by that route only

  

General Instructions:  

•  Block Rake traffic is preferred over Peice-meal Traffic. 

•  Traffic will have preference over other Traffic within the same class of Priority in the following order: 

 

1. Traffic guaranteed under special Schemes 

2. Traffic in rakes loaded from the Good shed of the station having round the clock working

3. Traffic booked from Full rake handling siding having mechanized loading facility.

4. Traffic offered for distance of more than 600 Kms within the same classification  

5. Single Point Block rakes over two-point / multipoint mini rakes  

6. Wednesday & Saturday shall be reserved and notified for allotment of rakes as per the ODR - Date of Registration irrespective of the class of priority.   

7. Monday & Friday will be  nominated two days for according higher priority to traffic covered under Premium Indent Scheme

•  Any Traffic under special orders of the Ministry of Railways (Railway Board) / Zonal Railways 

Priority	Traffic
A	Military Traffic sponsored by MILRAIL and approved by the Railway Board
B	Emergency Relief works (for natural calamities like floods, drought, earthquakes etc)  - Sponsored by an Officer, not below the rank of Dy.Secretary of Central / State Government or by a Non-Government Organisation. All Food grains except quota traffic notified by the Railway Board.  Levy Sugar for PDS - Public Distribution System & other welfare programs sponsored by FCI - Food Corporation of India / State Govts or their agencies approved by the Railway Board. Proposals for sponsorship of any other commodity by a Central Govt agency  will require specific approval of the Railway Board.
C	1	Coal	i) Sponsoring authority is Public Sector Coal - Accepting authority is ED/RM, Kolkata for ER, ECR, SER, SECR & ECoR  ii) Sponsoring authority is Private coal companies - Accepting authority is COM/CFTM of other Zonal Railways iii) Sponsoring authority is Coal Importers - Accepting authority is PCOM/CFTM of respective Zonal Railways
	2	Iron Ore	Sub - Priority	Traffic Type
			C +	From Customer’s own private siding to his own private siding at unloading end of for domestic manufacturer
			C	One end to other end, the Customer is having his own private siding at either end for domestic manufacture
			C -	One end to the other end, the Customer not owned by him at both ends.
	3	Other than 1 & 2	i) Non - refined Edible Salt - For the States of West Bengal, Assam, Sikkim & Tripura  - Sponsored by the respective State Governments .  For the other States  - The Sponsored by Salt Commissioner & Accepted by the Zonal Railways (Amendment 2 to GO.98 dated 02.08.2024) ii) Common Salt to approved iodization plants - For the States of West Bengal, Assam, Sikkim & Tripura  - Sponsored by the respective State Governments .  For the other States  - The Sponsored by Salt Commissioner & Accepted by the Zonal Railways (Amendment 2 to GO.98 dated 02.08.2024) iii) Fertilizer - Sponsored by Fertilizer manufacturers / Importers  - Accepted by the Zonal Railways  iv) POL - Petroleum, Oil & Lubricants - Sponsored by Oil companies - Accepted by the Railway Board
D	All other Traffic not included in A, B & C

Key points for MCQ 

1. PTO stands for Preferential Traffic Order 

2. PTO validity - 1 Year   

3. PTO - Issued by Central Govt and published in Gazette

4. No of Priorities under PTO - 4 

5. MIL RAIL - Military wing of the Railways  (Office at Sena Bhawan, Army Hqrs) 

6. Railways Act - Year 1989 (The First act in 1890)

7. PDS stands for Public Distribution System 

8. RMS stands for Raw Material for Steel plants 

9. POL stands for Petroleum, Oil, & Lubricants 

10. ED/RM - Executive Director Rail Movement

11. SCO stands for Salt Commissioner Organization - Hqrs - Jaipur

12. Salt Commissioner is working under DPIIT 

13. DPIIT stands for Department for Promotion of Industry & Internal Trade (Ministry of Commerce & Industry)

14. Wednesday and Saturday are fixed for allotment of Rakes as per the date of registration, irrespective of the class of priority. 

15. Monday and Friday will be nominated two days for higher priority to traffic covered under Premium Indent Scheme.

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