Country’s largest steel maker SAIL said it has entered into a long-term tariff contract with railways. This involves 15 zones for loading and unloading terminals.
Different commodities applicable to the contract include iron and steel, pig iron, slag, limestone, dolomite and manganese ore with a benchmark gross freight revenue (BGFR) of Rs 3,417.74 crore.
This comes with corresponding tonnage of 19.3 million tonnes (MT) effective from September.
At present this is the highest LTTC agreement in terms of Gross Freight Revenue of Railways.
“Steel Authority of India Ltd and Indian Railways have entered into a strategic agreement on Long Term Tariff Contract (LTTC) on August 29, 2017,” SAIL said in a statement.
Former Minister Prabhu has stated that the vision document to make Indian Railways the best in the world by 2030, is ready and freight diversification is a big aspect of it.
LTTC has been introduced by Indian Railways to establish long-term contracts with customers with guaranteed incremental revenue for Indian Railways, the statement said, adding that the contract can be for a duration of three to five years.
The Cement makers are signing long-term freight contracts with Indian Railways (IR) in droves.
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