The Railways has seen nearly 5 per cent year-on-year increase in freight loading for the first five months of this fiscal (April to August) riding on growing volumes of cement, steel and iron ore traffic.
Steel cargo increased by 22.27 per cent to 22.62 million tonnes (mt) during April-August 2017 over the same period last year.
Iron ore loading saw a near 13 per cent y-o-y increase to 59.23 mt, while cement cargo grew by 12.60 per cent to 47.53 mt. Loading of foodgrains and containers has also gone up. The improved showing, however, came despite a 0.3 per cent drop in coal cargo to 215.86 mt, owing to reduced imports.
No growth in coal
Coal accounts for 48 per cent of the Railways traffic and 44 per cent of its earnings profile. According to Bajwa, while the loading of imported coal dropped, domestic coal loading increased. The demand for rakes from the domestic coal sector, however, is way below the projected targets. As against 238 rakes a day, Coal India Ltd is loading only 214 rakes a day, he said. “We hope the coal loading numbers will improve and we will be able to achieve the set target of 555 million tonnes this fiscal,” Bajwa told BusinessLine on the sidelines of the ‘mjunction’ organised coal markets conference. Fertiliser was the other major category that saw around four per cent decline in traffic, during this period, to 20.29 mt due to “less imports.”
The Railways invests nearly 131,000 crore to ramp up rolling stock (wagons), expanding track capacity through line doubling and improving the signalling system. According to Bajwa, by the end of 2018-19, the rolling stock (wagon) availability will increase by 10 per cent.
Container volumes at major ports increased 8.4% in August over a year ago, indicating a significant recovery in trade
Container volumes at major ports (in terms of 20-foot equivalent units) increased 8.4% in August over a year ago, indicating a significant recovery in trade. Due to the initial disruption caused by the introduction of the goods and services tax (GST), container traffic growth had slowed to around 2-5% in the earlier two months. Encouragingly, volumes at Jawaharlal Nehru Port Trust (JNPT), India’s largest container port, remained strong, clocking a growth of 9.1%, data compiled by PhillipCapital (India) Pvt. Ltd shows.