Special Freight Train Operation Scheme(SFTO)

SPECIAL FREIGHT TRAIN OPERATOR SCHEME (SFTO):

1. Objective: -

i. To increase the share of railways in non-conventional traffic in high capacity and special purpose wagons.

ii. This policy provides investment opportunity for the Logistics Service Provider and the manufacturer/ producer to get wagon.

2. SFTO will provide wagon to users (end-users)

3. Eligibility: -

i. Joint Venture Company, a company registered under the Company's act.

ii. The applicant should have experience of one year in any one of the following transport and logistics, port and land terminal operations, warehousing, container train operator, WLC , manufacturer etc.

iii. The applicant should have net worth 50 crore or annual turnover 75 million in the last financial year.

4. The commodities included under this scheme have been divided into four categories (category)

5. An agreement will be executed between railways and SFTO for 20 year.

6. SFTO 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.

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

8. The application for the SFTO will be addressed to the ED (FM) Railway Board. Registration fees will have to pay within 01 month after getting the approval of MOR.

9. Applicants must apply separately for different categories.

10. The applicant will have to get 04% extra wagon and one Brake Van in addition to full Rake composition.

11. In case of loading in SPW rake, concession will be given to 12% freight for 20 years and on excess loading of more than 10% in HCW wagon, 02% additional freight concession will be given on each of the every additional tonnage. The concession will be granted for a maximum up to 10% freight, which will be up to 20 years.

12. SFTO will have to pay all other charges like taxes, fees, cess, etc.

13. The wagons procured by SFTO will not be included in the wagon pool of Indian Railways.

14. SFTO will have to develop his own terminal or will have to agreement with a Private terminal.

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

16. SFTO will have to pay demurrage fee on using the railway terminal.

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

18. If the SFTO violates the agreement, then the agreement can be terminated by giving 01 month notice and the registration fee will be forfeited.