VIJAYAWADA: For carrying freight at fixed rates, the South Central Railway (SCR) on Saturday signed a long term tariff contract (LTTC) with Penna Cement Industries for five years.
The scheme gives long-term stability and certainty in the freight tariff rates to corporate freight customers, said the SCR’s Principal Chief Operations Manager N Madhusudhana Rao. Once a customer enters into the LTTC with the Railways, the freight tariff rate will remain fixed for one year.
“This gives predictability and stability in freight rates and helps the customers to plan their logistics for that year, without worrying about change in rates,” he added.
The scheme also gives incentive in the form of freight discount if a customer exceeds the previous year’s freight contribution.
It is a growth-linked incentive wherein higher the freight contribution over the preceding year, higher the discount, Rao added. Penna Cement Industries is the eighth company to sign such an agreement with the SCR. SCR GM opined that the scheme was beneficial to freight customers.