Date:14/12/2005 URL: http://www.thehindubusinessline.com/2005/12/14/stories/2005121401870800.htm

Back Rlys hikes haulage charges for Concor

Mamuni Das

New Delhi , Dec. 13

COMPANIES that transport goods using containers over rail tracks may have to pay higher charges soon, with the Railways recently increasing the haulage charges for Container Corporation of India (Concor) by 15 per cent. At present, Concor is the only organisation that offers container transportation services on rail tracks.

The company pays haulage charges to Railways for using its tracks and signalling system. The charges form a base cost for the public sector units' tariffs, over which the organisation adds its own margin.

This increase may result in an increased level of tariff for customers of Concor, unless the public sector unit decides to absorb the entire increase in cost.

"Railways has imposed an across-the-board 15 per cent increase in haulage charges for Concor. The increase is effective from December 1," a Railway Ministry official told Business Line. This the second time this fiscal when Railways has increased the haulage charges. In the first half of this calendar year, it had increased the charges by five per cent.

When contacted, Concor officials confirmed the increase in rates. However, they declined to comment on whether this increase in haulage charges, which is a significant cost element for Concor, would be passed on to its customers. "We are yet to decide whether we would pass on the cost increase to our customers," said an official.

In mid-November this year, Concor had increased its tariffs on select routes by about 5-8 per cent.

During 2003-04, Concor paid Rs 912 crore, constituting more than half of its total income of Rs 1,789 crore, as haulage charges to the Railways.