Private Freight Terminal Facility in

VPLPL
 Private Freight Terminal (PFT)

 A robust multi-modal infrastructure with seamless first/last mile

connectivity is integral to the development of a complete logistics chain.
 The Primary objective of introducing the PFT policy by IR
 To facilitate rapid development of freight terminals with private
investment; and
 To Enhance the presence and share of railways in the overall
transport chain.
 Divert traffic so far predominantly moving by road to rail and attain
increased rail freight volumes by offering integrated, efficient and cost
effective logistics and warehousing solutions to users
 Features of PFT Policy

 The scheme, initially launched during the year 2010, was revised in the year
2012. Further, PFT policy was liberalized during the year 2015.

 PFT policy permits multiple consignors/consignees cargo from that PFT. No

separate permission is required for handling third party cargo.

 Railways provide connectivity to the rail network. Terminal Management

Company gets rail access to handle third party cargo in the logistic chain.

 Two types:

 Greenfield– Completely new project of PFT.

 Brownfield–Private or existing siding can become PFT.

 PFTs are to be developed on private land by private investment.

 Permitted to handle all types of traffic excluding outward coal, coke under
priority ‘C’.
 Total Number PFTs
No. of PFTs

Proposals received for development of PFTs 109

PFTs notified and commissioned 60

‘In Principle’ approval given 42

Proposals under process/ examination 07

PFT commissioned in 2018-19 04

 Benefits of PFT

 PFT gives Win – Win Situation for both Private Party and Railways.

 Increase in freight revenue to IR through PFT.

 As a first stage in liberalisation of the policy, the application fee for

setting up a PFT has been reduced from Rs 1 crore to just Rs 10 lakh.
This is a one-time charge for the private participant and will encourage
more and more private players to enter this field.

 The Railways has also decided to do away with the one-time fee of Rs 5
crore for loading of iron ore.

 As a private freight terminal, it is allowed to handle third-party freight

unless a private siding where only in-house traffic can be handled.
 Application Procedure in Brief

 Application of setting up PFT to be forwarded to CTPM of respective Zone for

Operational feasibility and eligibility criteria scrutiny with details of Projected
business volume and list of authorized users to be used only for assessing
capacity of IR network.

 Technical feasibility check of connecting PFT with IR rail network.

 In-principle approval of RA and subsequent submission of Application fee

 Other Technical approval from different division after submission of DPR by

TMC.

 RA will issue a commercial notification opening a PFT as an independent

terminal.

 Agreement period of operating PFT will be 30 years.

 Application fee:

 Rs 10 lakh during applying. In case of rejection, 99% of application fee

to be returned within 30 days of rejection.

 Security Deposit:

 Rs 10 lakh within one month of granting approval of setup of PFT by RA.

 Upon successful completion of the PFT, 99% of the security deposit will
be refunded within 30 days of issue of notification of the PFT.
 Existing PFT Near Vizag
 One PFT namely M/s Vimla Infrastructure Pvt Ltd is operational
approximately at 50 Kms from Vizag near Narsingapalle Railway Station.

 Started operation in 10.03.2017 as a Greenfield PFT.

 List of Existing users of this PFT:

1. M/s Sagar Cement Ltd 9. M/s N R Ispat & power 17. M/s. Anand Carbo
2. M/s Vedanta Limited 10. M/s SLY LGTRADE Private Limited
3. M/s BALCO (Alumina) 11.M/s Perfect Concast Pvt Ltd 18. M/s Vital Marketing
4. M/s Ratnamani Metals 12.M/s Ultratech Cement Ltd 19. M/s Maithan Alloy LTD
and Tubes Ltd 13.M/s Shri Girija Alloy & Alloy 20. M/s Godawari Power
5. M/s Emami Cements Ltd 14.M/s Vizag General Berth and Ispat LTD
(Petcoke, Gypsum) Cargo PVT LTD 21. M/s ACC LTD
6. M/s Rain CII CARBON Ltd 15.M/s Anahitha Resources 22. M/s Ambuja Cement
7. M/s Nuvoco Vistas PVT LTD LTD
corporation Limited 16. M/s Nova Iron and Steel
8. M/s Hindlaco industrie LTD
 Benefits and Value proposition of PFT at VPLPL
 No Major capital cost required as fully developed siding and connection
already exists.
 No Local Haulage Charges or Terminal charges payable by VPLPL, hence,
effectively reducing the cost to customer.
 VPLPL can act as a separate terminal independent of port having its won
railway commercial department stationed in the premises for indenting of IR
wagons and engines.
 Customers can book their wagons directly from VPLPL terminal hence easing
the congestion at Port.
 Availability of better infrastructure at VPLPL such as adequate storage space,
state of art warehouses, very long rail line ( to accommodate 2 full rakes at
one go), fully paved open yard etc.
 Better proximity to Port as compared to existing PFT which is approx. 50 KM
away from Port.
 Current Challenges for VPLPL
 Since VPLPL siding is an extension of VPT’s siding, a sum of
Rs.1565 per wagon (haulage charges) and Rs.27.29 per Metric Ton
(terminal handling charges) is payable to VPT as per the existing
tariff rates.

 The potential customers whom we have met (Rain Calcing, SAIL,

NALCO, Vedanta etc) have expressed their willingness to utilize our
rail siding facility provided there is no increase in costs.