Rail cargo volume set to grow 5% this fiscal

Posted by Daily Shipping Times on 12-01-2018        Tweet

KOLKATA: After a gap of three years, the Railways may post nearly 5 per cent growth in cargo volume this fiscal, with coal contributing a little less than half of the total volume.

During the first nine months of this fiscal, the Railways carried about 849 million tonnes cargo, registering a 4.8 per cent growth.

According to sources, January-March being the peak period, the trend may gain momentum and the Railways will finish close to the targeted volume of 1,167 mt, against last year’s total of 1,108 mt.

The volume of coal, which contributes 48-49 per cent of the total, increased 2.7 per cent; raw materials for steel plant, except iron ore, increased 6 per cent, and volume of steel cargo had shot up by a staggering 15 per cent.

Revenue grew faster than cargo volume at 8.11 per cent, presumably due to adjustments in tariff. And coal consumers were the biggest casualty as revenues from coal freight increased 10.18 per cent against less than 3 per cent volume growth.

In comparison, steel consumers are less affected. Revenue from steel raw materials, except iron ore, moved up 10.7 per cent faster than the volume growth. However, the growth of revenue from steel products is lower (10.7 per cent) than the volume growth.