Rates Circular No.

74 of 2005

Government of India
Ministry of Railways
Railway Board

No.TC-I/2005/201/2 New Delhi, Dt. 19.12.2005

General Managers(Commercial)
General Managers(Operating)
All Indian Railways.

Sub: Free time and rates of demurrage, wharfage & stacking charges
Ref: Under mentioned Board’s letters:
1. No.TC-I/2000/201/8 dt. 27.1.2005 (Rates Circular No.4 of 2005)
2. No.TC-I/93/205/1Pt. dt.21.2.2005 (Rates Circular No.11 of 2005)
3. No.TC-I/2000/201/8 dt. 21.6.2005 (Rates Circular No.36 of 2005)
4. No.TC-I/2004/201/4Pt.A dt. 1.7.2005 (Rates Circular No.38 of 2005)
5. No.TC-I/2004/201/4Pt.A dt. 25.7.2005 (Rates Circular No.46 of 2005)
6. No.TC-I/93/205/1Pt. dt.9.11.2005 (Rates Circular No.64 of 2005)
***
Board has decided to revise the instructions regarding permissible free time
for loading and unloading of wagons for steel plants & goods sheds/sidings and
rates of demurrage charge, wharfage charge and stacking charge. Accordingly, the
comprehensive modified instructions in supersession of all earlier instructions on
these subjects are as follows:

2.0 Free time for loading and unloading of wagons

2.1 Free time for loading and unloading for different types of wagons and allowances
(if any) at goods sheds & sidings, seven old steel plants and all other steel plants
are prescribed in paras 2.2, 2.3 and 2.4 respectively.

2.1.1 As and when new types of wagons are introduced, free time mentioned herein
shall automatically apply to the wagons depending upon the type of wagons.

2.1.2 The entire group of wagons placed for loading/unloading shall be treated as one
unit for the purpose of levy of demurrage charges i.e. even if one wagon out of the
group is detained for loading/unloading beyond the prescribed free time,
demurrage will be leviable on all the wagons in the group.

2.1.3 Zonal Railways should make efforts through constant dialogue with Rail users to
develop the infrastructure for efficient handling of wagons to reduce the terminal
detention and hence improve wagon availability.

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 Rates Circular No.74 of 2005

2.2 FREE TIME FOR LOADING/UNLOADING OF WAGONS AT GOODS SHEDS

AND SIDINGS
Permissible Free Time (in hours & minutes)
Type of Wagons MECHANIZED MANUAL
Loading Unloading Loading Unloading
OPEN wagons
like BOXN, BOX, BOY, BOI,
5:00 7:00 9:00 9:00
BOST, BOXNHA, BOXNHS,
NBOY etc.
HOPPER wagons
like BOBS, NBOBS, BOBR, 5:00 2:30 N.A. N.A.
NBOBR, BOBY, NBOBY etc.
FLAT wagons
like BFR, BRH, BRN, BFK,
6:00 N.A. 8:00 8:00
BFKI, BFNS, CONCORD
rakes etc.
5:00 5:00
(1 to 15 wagons) (1 to 15 wagons)
COVERED wagons
like BCN, BCNA, BCNHS, N.A. N.A. 7:00 7:00
BCNAHS, BCX, BCXN etc. (16 to 25 wagons) (16 to 25 wagons)
9:00 9:00
(26 wagons & above) (26 wagons & above)
6:00
TANK wagons (upto 29 wagons)
6:00
(white oil) 8:00
(30 wagons & above)
N.A. N.A.
7:00
TANK wagons (upto29 wagons)
7:00
(black oil) 9:00
(30 wagons & above)

Military wagons-KM N.A. N.A. 4:00 4:00

N.A. N.A. 5:00 5:00

Military wagons (upto 20 wagons) (upto 20 wagons)
other than KM wagons like
DBKM etc. N.A. N.A. 7:00 7:00
(21 wagons & above) (21 wagons & above)
Type of commodity
Container # 3:00 3:00 N.A. N.A.
Consignments handled by
7:00 8:00 N.A. N.A.
Crane
Livestock N.A. N.A. 4:00 4:00

Note: Loading by pay loaders is a type of mechanized loading.

N.A. stands for ‘not applicable’.
# Permissible free time in case of double operation of container traffic i.e. unloading followed by loading in
the same wagons, shall be 5 hours. However, in the case of container commodity handled by sling cranes,
the free time for loading/unloading will be 6 hours for single operation and 8 hours for double operation.

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 Rates Circular No.74 of 2005

2.2.1 ‘Additional Free Time’ which is given on account of extra shunting for placement,
removal etc. should be 2 hours (two hours). However, in cases where the additional
free time had been fixed less than 2 hours as per earlier Time & Motions Studies,
the same should continue.

2.2.2 In case of goods sheds and railway sidings where the placement capacity is less
than a rake, the free time will start with the placement of 1st part of the rake.
However, intervening periods between the time of completion of loading/unloading
of the 1st part and time of placement of 2nd part of the same rake for
loading/unloading, between the time of completion of loading/unloading of the 2nd
part and placement of 3rd part of the same rake for loading/unloading and so on,
should be treated as dies-non. Demurrage for excess detention will be levied on
entire rake. Excess detention should be calculated by deducting the permissible
free time and periods of dies-non from the period of total detention (i.e. period from
the time of placement of 1st part to the release time of last wagon) of the rake.

2.2.3 In case of goods sheds having multiple lines of limited capacity, if a rake is split up
and placed on different lines successively, free time for the entire rake will
commence from the time of placement of first lot of wagons. Demurrage for excess
detention will be levied on the entire rake. However, if the time interval between
successive placements is too much due to exigencies like accident etc., free time for
each placement shall be granted separately according to the slab of free time
applicable for relevant placement.

2.3 FREE TIME FOR LOADING/UNLOADING OF WAGONS AND ALLOWANCES

APPLICABLE IN THE CASE OF SEVEN OLD STEEL PLANTS.

Seven old steel plants namely Bhilai Steel Plant, Bokaro Steel Plant, Durgapur Steel
Plant, Indian Iron & Steel Co., Rourkela Steel Plant, Tata Iron & Steel Co. and
Visakhapatnam Steel Plant will be permitted free time as prescribed below:

Type of wagon Name of the Number of Permissible free time (in hours)
Steel Plant wagons Loading Unloading
Open wagons Visakhapatna Upto 35 16 8
m Steel Plant 36 & above 18 10
Indian Iron & Upto 35 24 16
Steel Co. 36 & above 26 18
All others Upto 35 22 12
36 & above 24 14
Flat wagons All Upto 35 24 12
36 & above 26 14
Hopper wagons All Upto 45 N.A. 8
46 & above N.A. 10
Covered wagons All Irrespective of the 24 24
number
Tank wagons All Irrespective of the 24 24
number

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 Rates Circular No.74 of 2005

Allowances
Six types of allowances namely Terminal Allowance, Unfit/Sick Wagon Allowance,
Debit/Credit hours adjustment, Block Rake Allowance, Captive Rake Allowance
and Bunching Allowance may be allowed to above mentioned seven old steel plants
as mentioned below:

(a) Terminal Allowance

Terminal allowance of 45 minutes only for pull through trains will be allowed. In
case of other rakes, the free time will commence from the time of intimation of
completion of the train examination formalities, which will be reckoned as “made-
over” time, irrespective of the actual clearance of the load by the plants.

(b) Unfit/Sick Wagon Allowance

If such wagons are received with loaded/empty rakes, 24 hours beyond the
permissible free time for unloading/loading would be allowed. In case of sick
wagons, allowance should be 24 hours after the wagons are made fit by TXR. The
steel plants should return these wagons in the mixed pilot within 24 hours.

(c) Debit/Credit hours

Whenever a Steel Plant is able to handle the wagons in less than the permissible free
time, resulting in earning of credit hours, the credit hours so earned will be adjusted
to the extent of 100% against the debit hours. The adjustment will be done in every
10(ten) days period across different types of wagons.
For the purpose of adjustment of credit/debit hours, only the permissible free time
will be taken into consideration, and not other allowances.
Off setting of debit hours incurred on any wagon detained inside a Steel Plant
beyond 10(ten) days, from the date of its being made over to the Plant, is not
permitted.

(d) Block Rake Allowance

Block rake allowance of 10 hours will be permissible for all types of wagons only for
the purpose of loading except Visakhapatnam Steel Plant. This allowance is
admissible to block rakes only, and not for piecemeal traffic. Visakhapatnam Steel
Plant will be permitted block rake allowance of 05 hours only.

(e) Captive Rake Allowance

For the purpose of maintaining the integrity of rakes in interchange transactions
with Steel Plants, Captive Rake Allowance of 2 hours will be admissible for only
BOXN rakes, which run on crack pattern on Round trip Brake Power Certificate
(RBPC). This allowance will be admissible in case of all seven old Steel Plants,
except Visakhapatnam Steel Plant.

(f) Bunching Allowance

Bunching allowance of 3 hours will be permissible. However, this allowance shall
not have cumulative effect.
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 Rates Circular No.74 of 2005

2.4 FREE TIME FOR LOADING/UNLOADING OF WAGONS AND ALLOWANCES

APPLICABLE IN CASE OF ALL OTHER STEEL PLANTS

Permissible free time for loading/unloading of wagons and allowances applicable

in the case of steel plants other than the above mentioned seven old steel plants will
be as under:

Type of wagon Number of Permissible free time (in hours)

wagons Loading Unloading
Open wagons Irrespective 12 8
Flat wagons of number of 12 8
Hopper wagons wagons N.A. 4
Covered wagons 10 10
Tank wagons 9 9
N.A. stands for ‘not applicable’.

Allowances
Two types of allowances namely Block Rake Allowance and Bunching Allowance
will be allowed to the steel plants other than the above mentioned seven old steel
plants as prescribed below:

(a) Block Rake Allowance

Block rake allowance of 05 hours will be permissible for all types of wagons only for
the purpose of loading. This allowance is admissible to block rakes only, and not for
piecemeal traffic.

(b) Bunching Allowance

Bunching allowance of 2 hours will be permissible. However, this allowance shall
not have cumulative effect.

3.0 Rates of demurrage Charge

3.1 FOR ALL STEEL PLANTS
In case of steel plants, demurrage charge @Rs.50/- per 8-wheeled wagon per hour,
or part of an hour, for detention of wagon in excess of the permissible free time for
loading or unloading, shall be levied.

3.2 FOR OTHER THAN STEEL PLANTS

In case of other rail users, demurrage charge @Rs.75/- per 8-wheeled wagon per
hour, or part of an hour, for detention of wagon in excess of the permissible free
time for loading or unloading, shall be levied.

3.3 In case excessive congestion takes place at any terminal/steel plant,

CCM/COM/DRM can increase the demurrage rates, even at progressively
increasing rate subject to a maximum of six times of the prevalent rate. This penal
demurrage rates should be implemented only after giving wide publicity and due
notice of 48 hours and should be applicable for the notified period.

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3.4 The rates of demurrage charges prescribed above shall be applicable equally to all
types of 8-wheeled goods wagons and coaching vehicles (other than passenger
vehicles), irrespective of their carrying capacities.

3.5 The rates of demurrage charge in respect of 4-wheeled wagons/vehicles shall be

half of the rates prescribed for the 8-wheeled wagons/vehicles.

4.0 Permissible free time for removal of goods from railway premises

4.1 Permissible free time for removal of goods from railway premises at present are as
under:
Circumstances Permissible free time
(i) Goods available for 12 working hours.
delivery after
unloading on the day
of unloading
(ii) Goods, after 12 working hours or till the closing time of the
unloading, available goods shed on the day following the day of
for delivery on the unloading.
following day

5.0 Rates of wharfage charges

Rates of wharfage charges per quintal or part of a quintal per day or part of a day,
leviable after completion of permissible free time for removal of goods from railway
premises irrespective of the space being covered or open, shall be as under:

Rates of wharfage charges

1st day Nil
2 day
nd Rs.2.00
3 day
rd Rs.3.00
4 day
th Rs.4.00
5 day
th Rs.5.00
6 day
th Rs.6.00
7th day onwards Rs.7.00
The term ‘1st day’ referred to in the above table is defined as the day on which
goods are available for delivery i.e. the day of unloading in reference to 4.1(i) above
and following day of unloading in reference to 4.1(ii) above. Subsequent days i.e.
2nd day, 3rd day etc. should be counted in reference to the ‘1st day’.

5.2 Rates of wharfage charges prescribed above shall be uniformly applicable to all
commodities.

5.3 Rates of wharfage charges prescribed above shall be uniformly applicable in case of
all stations, goods sheds and public sidings.

5.4 In case excessive congestion takes place at any terminal, CCM/DRM can increase
the wharfage rates, even at progressively increasing rate subject to a maximum of
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six times of the prevalent rate for the 2nd day. This penal wharfage rates should be
implemented only after giving wide publicity and due notice of 48 hours and
should be applicable for the notified period.

6.0 Permissible free time for advance stacking of goods in Railway premises
Zonal Railways may permit stacking of goods in railway premises at selected goods
sheds without payment of wharfage charges upto a period of ten days in advance of
loading after review of traffic pattern at such goods sheds and without causing any
hold up to other traffic.

7.0 Rates of Stacking charges

Stacking charges shall be leviable beyond the permissible advance stacking period
of ten days at the same rates as prescribed for wharfage charges.

7.1 The term '1st day' in the case of stacking charges is defined as the day on which the
permissible advance stacking period is completed. For the present rules, the 10th day
of stacking is, accordingly, the ‘1st day’. Subsequent days i.e. 2nd day, 3rd day etc.
should be counted in reference to the 1st day so defined.

7.2 Rates of stacking charges prescribed above shall be uniformly applicable to all
commodities.

7.3 Rates of stacking charges prescribed above shall be uniformly applicable in case of
all stations, goods sheds and public sidings.

8.0 These instructions will be effective w.e.f. 01.01.2006.

9.0 This issues with the concurrence of the Finance and Traffic Transportation
Directorates in the Ministry of Railways.

The receipt of this letter may please be acknowledged.

(Navin Kumar Parsuramka)

Joint Director Traffic Commercial (Rates)
Railway Board

No.TC-I/2005/201/2 New Delhi, Dt. 19 .12.2005

Copy to:
1. Dy. C&AG(Rlys), Room No.222, Rail Bhavan, New Delhi.
2. FA&CAOs, All Indian Railways.

For Financial Commissioner(Rlys)