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Costing and Pricing Issues in Transport Sector - Indian Railways ...

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Freight rates for different classes<br />

• Rates for different classes are modified based on<br />

– whether the rate is to be <strong>in</strong>creased or decreased.<br />

• Themarg<strong>in</strong>al adjustmentsaredone t d depend<strong>in</strong>gdi<br />

on<br />

– whether same has been <strong>in</strong>creased or reduced <strong>in</strong> the<br />

last couple of years, <strong>and</strong><br />

– our perception of what the traffic can bear.<br />

• No exercise has been done of mak<strong>in</strong>g an ab-<strong>in</strong>itio<br />

analysis of the cost of operation <strong>and</strong> for fix<strong>in</strong>g of rates<br />

accord<strong>in</strong>gly.*<br />

• In most cases it is not only difficult but impossible.* ibl • Cost of haul<strong>in</strong>g a foodgra<strong>in</strong> rake <strong>and</strong> a cement rake is<br />

the same,<br />

– but they cannot be charged equally.*<br />

Tuesday, September 06, 2011 INDRA GHOSH, Adviser/Rates Slide No. 59

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