April 15, 2016 5:49 PM

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Port congestion surcharge withdrawn by Railways

Railways has withdrawn port congestion surcharge levied on cargo moving to inland. The move aimed at attracting imported freight traffic including containers,coal and iron ore. <br/><br/>An official release said, the port congestion surcharge levy, which is 10 per cent of the basic freight rate, has been withdrawn with immediate effect. <br/><br/>The decision is in line with the Railway Minister Suresh Prabhu's promise to make rail a competitive mode of transport in comparison to roads.The withdrawal is expected to give respite to the Industry in bringing down logistics costs and thereby attract increasing volumes of traffic to the rail mode.<br/><br/>It was a pending demand of the Ministries of Shipping and Ports, Steel, Container Operators and other Industries and the move will be a big boost to national industrial growth.In November,2014, Railways had imposed the port congestion surcharge on all goods traffic including containers originating from ports.

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