Tuesday, 02 January 2024 12:17 GMT

Indian Railways' September Freight Loading Rises 6.1% As Revenue Grows 9.3%


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(MENAFN- Live Mint) NEW DELHI: Indian Railways' freight loading rose 6.14% year-on-year to 135.35 million tonnes in September, from 127.52 million tonnes a year earlier, driven by growth across several key commodity segments, according to data released by the ministry of railways on Tuesday.

Cumulative freight loading during April-September rose 4.1% year-on-year to 833.7 million tonnes. Freight revenue during the first half of the current financial year grew 3.7%, the ministry said.

Strong September growth

Several major commodity segments recorded strong growth in September. Foodgrain loading rose 25%, followed by clinker at 20%, domestic containers at 10%, coal at 9%, other goods at 8.2%, mineral oil at 6%, finished steel at 5.5% and iron ore at 5.2%.

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Indian Railways also stepped up coal supplies to power plants during the month. The average number of coal rakes supplied per day rose 11.6% to 443 in September, from 397 a day a year earlier.

Freight revenue in September increased by ₹1,266 crore, or 9.3%, from the year-ago period.

The increase in freight movement comes as Indian Railways seeks to expand its share of India's logistics market by improving last-mile connectivity and adding capacity for industrial cargo. Its share has fallen below 30%, and the national transporter aims to raise it to more than 45% over the next few years. The ministry attributed the latest growth to demand from sectors such as coal, steel and fertilisers, among other commodities.

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Railways is counting on freight growth to bolster its revenue. For the current financial year, it aims to increase freight loading to 1,765 million tonnes, from an estimated 1,670-1,700 million tonnes in fiscal year 2026 (FY26). At the targeted level, freight revenue is projected to rise to ₹1.88 trillion, from about ₹1.78 trillion in FY26.

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