Railway Accounts Department Examinations

Showing posts with label Short Lead Traffic. Show all posts
Showing posts with label Short Lead Traffic. Show all posts

Tuesday, June 30, 2026

short Lead Traffic - Commercial Matters

 



Short Lead Traffic

  • 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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