PFT at Vizag

Vizag has one PFT (50-60 KM away from Vishakhapatman):

M/s Vimla Infrastructure Pvt (India) Limited (VIPN): Started operation in 10.03.2017
as a Greenfield PFT.
Primary reason for Customers using this PFT is due to congestion and lack of availability
of Indian Railway wagons at Vizag Port and to avail better infrastructure and storing
capacity at PFT.

Serving IR Station: Narsingapalle Station near Vijayawada

Existing Users of VIPN PFT:

1. M/s Sagar Cement Ltd
2. Vedanta Limited
3. BALCO (Alumina)
4. M/s Ratnamani Metals and Tubes Ltd
5. M/s Emami Cements Ltd (Petcoke, Gypsum)
6. Rain CII CARBON Limited
7. M/s Nuvoco Vistas corporation Limited
8. M/s Hindlaco industrie
9. M/s N R Ispat & power Pvt Ltd
10. M/s SLY LGTRADE
11. M/s Perfect Concast Pvt Ltd
12. M/s Ultratech Cement Ltd
13. M/s Shri Girija Alloy & Alloy Pvt Ltd
14. M/s Vizag General Berth Cargo PVT LTD
15. M/s Anahitha Resources PVT LTD
16. M/s Nova Iron and Steel LTD
17. M/s. Anand Carbo Private Limited
18. M/s Vital Marketing
19. M/s Maithan Alloy LTD
20. M/s Godawari Power and Ispat LTD
21. M/s ACC LTD
22. M/s Ambuja Cement LTD
PFT Policy details:
a. Original PFT Policy 1 Cr Application Fee (retained by Railway), and 1 Cr
SD ( refundable after timely completion)
b. Greenfield: Revenue sharing starts after 5 years
c. Brownfield revenue sharing starts after 2 years
d. Revenue sharing details: 50% of prevailing terminal charge of railway or
Rs 10 per MT
e. Revenue sharing increase annually with indexing it to 90% WPI
f. Benefit to TMC (Terminal Management Compnay):
i. Rail access to all India network of IR
ii. TMC will charge wharfage, Terminal charges and value added
services as per its own tariff
iii. No wharafage payable to IR

g. OBJECTIVES of PFTs as per Indian railway:

i. Enable rapid development of network of freight terminals with
participation of private sectors.
ii. Enhance the presence and share of Railways in overall transport
chain.
iii. Recapture the high rated traffic, diverted from rail to road.
iv. Participation of major logistic service providers to create world
class logistic facilities.
Time Lines of Subsequent Amendment to Policy:
i. Revenue sharing details 2012 circular: 50% of prevailing terminal charge
of railway or Rs 20 per MT (on inward and outward movement)
ii. Revenue sharing details 2014 circular: Flat Rs 16 per MT to be paid to IR
iii. Year 2014- Additional fee of 5Cr for handling iron ore or oron ore pellet
traffic (withdrawn in 2015)
iv. Year 2015: 10 Lac Application Fee (retained by Railway), and 10 Lac SD (
refundable after timely completion)
v. 05.06.2015: Revenue sharing clause deleted
vi. Year 2019:10 % freight discount on PFT account (for 10 years or till
recovery of the capital cost)

Commercial viability of private terminals is more near cement companies, ports and power
plants which consume coal. At present, private freight terminals are built by private
investors on private land and connectivity is given by the railways to the operators on lease
basis. “These terminals are mostly 2-3 km away from stations and therefore huge capital
is required to build warehouses, yard and railway lines .

At present, the Railways has around 58 private freight terminals handling 15 million
tonnes (MT) of traffic.

FACILITIES TO BE DEVELOPED at PFT by PFT Owner or the TMC:

(i) Round the clock working.
(ii) Handling of traffic on EOL free time scheme.
(iii) Facilities of warehousing with enough stacking andcirculating area.
(iv) Minimum 2 rakes per day handling.
(v) Provision of crew rest room by TMC
(vi) Access of the crews to the staff canteen of the TMC onsubsidized charges.
(vii) TMC is to construct in-motion Weigh Bridge.
(viii) Construction of rooms for Goods Shed, and commissioning of TMS/FOIS terminals
at the PFT.
(ix) Payment of freight charges to Railways through E-Payment.

ELIGIBILITY CRITERIA of PFT:

(i) The Company should be an entity registered in India under the Companies Act 1956.
(ii) The company which will fulfill any one of the following criteria can apply under the
policy subject to having a net worth of Rs. 10 Crore or having a turnover of Rs. 20 Crore
as on the last day of the previous financial year:-
(a) Having logistics service as a core business of the company with minimum one year
experience in the field.
(b) Existing train container operator
(c) End user of railways with private siding.
(d) Any industry intending to set up a private siding cum PFT
BENEFITS OF THE TMC
(i) TMC will get access to handle third party cargo and thereby providing him opportunity
to augment his presence in logistics chain.
(ii) TMC will realize terminal charges, wharfage and other value added charges from the
parties.
(iii) TMC is to pay freight and all other charges like cess, taxes, demurage charges,
engine detention charges etc. as per the extant rules.

Types of Freight Terminals (FTs)

Freight Terminals include the following categories of terminals:-
I. DFCCIL Goods Sheds / Terminals.
II. Sidings on Railway / DFCCIL land.
III. Private Sidings built on private land in terms of the Private Siding Policy for
exclusive use of its owner for its own cargo and also cargo belonging to
authorised co-users.
IV. Terminals/ICDs / CFSs set up for handling of containers and other cargo.
V. Multi modal logistics parks / Private Freight terminals (PFT).
VI. Port Terminals including terminals connected with Inland waterways