Automobile Freight Train Operation Scheme(AFTO)

AUTOMOBILE FREIGHT TRAIN OPERATOR SCHEME (AFTO):

Objective:

To provide a PPP based opportunity to logistics service providers and road transporters to invest in wagons and use advantage of rail transport to tie up with end-users and market train services to create a win-win situation for railways and themselves.

Salient Features:

1. AFTO means a party who invest to procure the Rake and obtains permission from the Railway Ministry to arrange for loading / unloading of traffic in its auto freight train.

2. Nodal Agency: At Railway Board level- ED (FM) and at zonal railway level-CCM (FM) will be nodal authority.

3. Commodity to be loaded: Automobile traffic will include passenger cars, two/three wheeler automobile units, mini trucks, tractors, chasis, shells of cars, automobile moved in CKD conditions.

4. Eligibility Conditions for Application-

(i) Registered Company as per company Act 1956,

(ii) Subsidiary Company,

(iii) Joint Venture Company or

(iv) Public sector entity.

5. Applicant should have experience in one of the below-

(i) Transport,

(ii) Port Operations,

(iii) warehousing,

(iv) Container Train Operator,

(v) WLC.

6. The applicant should have net income of ₹.30 Crore in the last financial year and average annual turnover of ₹.20 Crore.

7. The application for the AFTO will be addressed to the ED (FM) Railway Board along with application fee equivalent to 1% of registration fee.

8. Registration fees ₹.5 Crore will have to pay within 01 month of getting the approval of MOR.

9. An agreement will be executed between railways and AFTO for 20 years which is extendable till codal life of wagons. Agreement will be signed by the CCM (FM) of the concerned zonal railway.

10. Minimum investment for 3 rakes along with 4% maintenance spare and brake van. However, AFTO can procure any number of rakes under one registration.

11. Wagons which can be included in this scheme will be certified by the prescribed standard and RDSO.

12. Trains procured under AFTO will not be merged in the wagon pool of Indian Railways.

13. Maintenance of wagons by railways at its own cost except special components, cost of which will be defrayed by investor.

14. Freight rates for AFTO are separate for loaded direction and empty direction.

15. Terminal Access Charges also to be levied.

16. Back loading of automobile verticals (auto ancillaries, auto spare parts etc.) are charged at per wagon rate instead of rake rate

17. Free to run trains from Railway Terminals open for automobiles or from private terminals.

18. AFTO shall nominate a base terminal from where it will operate so that a base maintenance depot can be nominated by railways

19. Freight rebate will be notified time to time,

20. AFTO will have to pay all other charges like taxes, fees, cess, etc.

21. AFTO will have to develop his own terminal or will have to agreement with a Private terminal.

22. AFTO can take haulage charges, terminal charges, wharfage charges etc. independently from its customers, there will be no railway control over it.

23. AFTO will have to pay demurrage fee on using the railway terminal.

24. Payment of freight will be done through E-Payment.

25. Free to terminate the agreement before expiry of agreement by giving three months’ notice.