MSPL orders 6 rakes

MSPL Limited, the largest private sector iron ore processor and exporter from Karnataka, has placed an order for six railway rakes under the own-your-wagon (OYW) scheme of the Railways.

It is for transporting iron ore from its mines in the Bellary-Hospet region to ports in Goa and New Mangalore for exports.

The company recently received three of these six rakes and is expecting to receive two more during the week. The sixth rake will be received early next month, in April. Each rake will have a capacity to carry 3,600 metric tonnes and cost Rs 14 crore. MSPL has made a capital investment in the six rakes aggregating to Rs 85 crore, a company release said.

"This is a significant step forward in our logistics management as this will not only improve our efficiency levels and cut logistics cost by about 30 per cent but also help us move larger quantities of iron ore from the mines to port and help the company post better revenues in the coming years," said Shrenik Baldota, director of the company.

He said, railway rakes are the most preferred and cost economic means of transport for iron ore. MSPL moves nearly 80 per cent of its iron ore production by rail and the balance 20 per cent is transported by trucks. However, the company is presently constrained by the availability of rakes.

To overcome the constraint, the company has opted to go in for acquisition of rakes under the OYW scheme floated by the Railways under the public-private partnership model, the release added.