freight marketing Investment Policy on freight marketing Investment Policy on Automobile Freight Train Operator (AFTO)

 Objective: With a view to increase IR’s market share in transportation of automobile by inviting private participation for procurement and operation of special purpose wagons, a new scheme namely Automobile Freight Train Operator (AFTO) Scheme was introduced during the year  In view of representations of prospective logistics service providers, the scheme was reviewed during the year 2013 and the revised policy on Automobile Freight Train Operator Scheme (AFTO) was issued on Automobile Freight Train Operator (AFTO)

 Eligibility:  Transporter or logistic provider  Port and Land Terminal Operator  Warehouse Operator  Container Train Operator  Manufacturer  Wagon Leasing Company  Company should have a net worth of minimum of Rs. 20 Cr. or is having an annual turnover of minimum 30 Cr. Automobile Freight Train Operator (AFTO)

Salient features One time upfront registration fee of Rs.5 crores Train operator will be free to charge tariff from end user. Applicant has to apply to Board’s Office for Registration as AFTO. Minimum investment for 3 rakes along with 4% maintenance spare and brake van. However, AFTO can procure any number of rakes under one registration. Trains procured under AFT will not be merged in the wagon pool of Indian Railways contd……. Automobile Freight Train Operator (AFTO)

Salient features Period of agreement for 20 years, extendable till expiry of codal life of wagon. Maintenance of wagons by railways at its own cost except special components, cost of which will be defrayed by investor. Freight rates for AFTO are separate for loaded direction and empty direction Terminal Access Charges also to be levied. Back loading of automobile verticals (auto ancillaries, auto spare parts etc.) are charged at per wagon load rate instead of rake rate contd……. Automobile Freight Train Operator (AFTO)

Salient features  Free to run trains from Railway Terminals open for automobiles or from private terminals  Free to terminate the agreement before expiry of agreement by giving three months notice.  AFTO shall nominate a base terminal from where it will operate so that a base maintenance depot can be nominated by the railways.  Agreement will be signed by the CCM(FM) of the concerned zonal railway. Automobile Freight Train Operator (AFTO)

Response from Industry  M/s Maruti Suzuki have registered under the scheme.  They had placed order for 3 rakes, out of which 2 rakes are in operation from Gurgaon (NR) to Nidvanda (SWR).  One more rake is expected to be inducted very soon.  M/s Maruti Suzuki expect to start services from Gurgaon to Warrdha (CR) and Gurgaon to Chitpur (ER). Automobile Freight Train Operator (AFTO)

Response from Industry  M/s APL Logistics/ Vasscor Automotive Pvt Ltd. have also registered under the scheme.  They had placed order for 3 rakes, out of which 2 rakes are in operation from Melpakkam (SR) to Khatuwas (NWR).  One more rake is expected to be inducted very soon.  The party has also requested for another 3 rakes, which is under process for approval. Automobile Freight Train Operator (AFTO)

Earnings from AFTO rakes  For running of two rakes procured by M/s Maruti Suzuki Ltd., Railways could be able to fetch an earnings of Rs crores, in total number of 23 trips, since induction of rakes i.e  For running of two rakes procured by M/s APL Logistics/ Vasscor Automotive Pvt Ltd., Railways could be able to fetch an earnings of Rs crores, in total number of in 9 trips, since induction of rakes i.e Automobile Freight Train Operator (AFTO)

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