Title - New automobile freight policy to attract more traffic

NEW DELHI: With an aim of increasing its share in transportation of automobiles, Railways has formulated a new freight policy replacing its earlier one.

The Automobile Freight Train Operator (AFTO) Scheme 2013 superseded the earlier AFTO Scheme of 2010, said a senior Railway Ministry official.

Logistic services providers and road transporters can induct special wagons on the Railways and avail of freight rebates in return as per the new AFTO policy.

Under the policy, the rebates for carrying auto on Railways are in-built into the freight rates offered by the PSU.

The earlier AFTO scheme launched in July 2010 had allowed private sector entities to induct and operate special wagons on network. They were offered 15 per cent rebate on freight rates for every rake loaded.

But the policy evoked a cold response from the industry. Though the Railways currently carries around one million vehicles, mainly cars, light commercial vehicles and two wheelers and three-wheelers, on its own trains, the new policy will allow privately owned trains dedicated to automobiles just like container trains.

As many as 318 small cars of the size of Maruti's Alto will be moved in one go as against 265 cars that can be currently transported in one train load.

Automobile traffic will include passenger cars, two/three wheeler automobile units, mini trucks, tractors, chassis and shells of cars.

The AFTO will be free to run trains over Indian Railways provided the railway terminal is open for automobile booking, and the private terminal is also willing to handle automobile traffic. No NOC shall therefore be required for the routes from zonal railways.