Indian Railways cut freight rates by Rs 475/MT for Iron ore exports

Indian Railways has cut freight charges by Rs 475/MT for
Iron ore exports w.e.f. 6th March 2012.

Railways has modified the existing Distance Based Charge
from Rs.1,600/MT to Rs 1,125/MT for all leads on the booking of Iron Ore
traffic meant for other than domestic consumption for manufacture of Iron &
Steel and Cement.

The cut in freight rates comes before the Budget
announcements and acts as a move to rationalize the large price discrepancy in
between freight Chagres for exports & domestic movement.

According to Industry experts, “Railway freight charge
for domestic iron ore movement stands at around Rs 900/MT. Whereas, for exports
it was around Rs 2,800/MT. So, the cut in freight rates will bring down
the price difference slightly.”