State-owned rail operator Container Corporation of India said it will increase its freight charges for the movement of containerized cargo, starting Jan. 20, 2011.
The move follows an upward revision of container haulage charges announced by Indian Railways, slated to take effect Jan. 1.
“Indian Railways have revised rail haulage charges payable to them for the movement of container traffic by rail, effective Jan. 1, 2011. Accordingly, rail freight tariff for export-import traffic is being revised, effective Jan. 20, and the same shall be notified soon,” Concor said Wednesday.
By The Numbers: U.S. Container Trade With India.
Haulage charge is the fee paid by container train operators to Railways for using its rail network and infrastructure. Such costs account for up to 75 percent of a typical container-hauling company’s overall operating expenses.
Concor’s haulage fee disbursements for the full fiscal year ended March 31 amounted to nearly $485 million, representing almost 60 percent of its total sales during the year.
The company, an offshoot of Indian Railways, is the largest intermodal logistics provider in the country, with a network of nearly 60 inland terminals at major locations.
Concor earlier recalled an Oct. 1 rate increase announcement after the Railway Ministry agreed to reconsider applying revised haulage rates on container rail operators following vigorous protests from trade associations.
In other trade news, the Shipping Ministry expressed concern that non-major ports, by virtue of being outside the purview of port regulator Tariff Authority for Major Ports, are charging the trade “exorbitant” harbor fees.
“A new regulatory framework needs to be put in place for the port sector so that all operators, public or private, and all ports, major or non-major, have a level-playing field,” said Indian Shipping Minister G.K. Vasan, addressing a maritime conference.
India has 13 major publicly-owned ports and 187 non-major ports, including Mundra and Pipavav, located along its 4,600 miles of coastline.