Costing and Pricing Issues in Transport Sector - Indian Railways ...
Costing and Pricing Issues in Transport Sector - Indian Railways ...
Costing and Pricing Issues in Transport Sector - Indian Railways ...
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Traditional Freight Structure<br />
• From the traditional freight structure IR gradually tried<br />
to move to more commercially based freight structure.<br />
• Introduce <strong>in</strong>tegrated tariff <strong>and</strong> <strong>in</strong>centive structure custom<br />
tailored for each major bus<strong>in</strong>ess stream – present <strong>and</strong><br />
potential.<br />
• Tariff should be based on <strong>in</strong>put costs <strong>and</strong> leverage<br />
railway’s strengths <strong>in</strong> long haul <strong>and</strong> bulk.<br />
• Reduce cross subsidization amongst commodity groups.<br />
• Elim<strong>in</strong>ate tariff l<strong>in</strong>es operat<strong>in</strong>g below cost.*<br />
• Move towards FAK rates as far as possible with only<br />
limited exceptions.<br />
Tuesday, September 06, 2011 INDRA GHOSH, Adviser/Rates Slide No. 42
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