Waltair div sees 15% rise in freight

The Waltair Railway Division is expecting 10-15 per cent growth in freight revenue during the current financial year despite the completion of the country's longest slurry pipeline by Essar group's Vizag-based Hy-Grade Pellets Limited.

K C Pradhan, senior divisional commercial manager of the division, told Business Standard that with the construction of slurry pipeline, the division may lose about 3.5-4 million tonnes of cargo during this financial year.

"Nevertheless, we are confident of registering 10-15 per cent growth in freight revenue earnings this financial year by making alternative arrangements," he added.

Apart from vigorous marketing efforts to attract new cargo, the railway would increase cargo quantities by adding more wagons, he said.

"Normally, each rail rake can transport about 3,500 tonnes of ore. Now, by adding a few more wagons, a rail rake can carry 4,800-5,000 tonnes. So with the existing rail network, we can increase our revenues," he said.

This division created an all-time record by transporting 36.70 million tonnes of cargo in 2005-06 as against 33.77 million tonnes in the preceding year, registering a growth of about 8.7 per cent. Revenue earnings too, were up by about 25 per cent at Rs 1,963 crore in the financial year 2005-06, as against Rs 1,572.36 crore in the previous year.

Of 36.70 million tonnes of cargo transported by the division in 2005-06, about 50 per cent was iron ore. The railways brings about 18 million tonnes of iron ore from Bailadilla to Visakhapatnam through the Kirandol-Kothavalasa railway line.

The Visakhapatnam Steel Plant, Hy-grade Pellets Limited, Ispat Industries, Vikram Ispat and MMTC Limited depend on the railways to bring iron ore to Visakhapatnam.

During the last financial year, Hy-grade Pellets completed the construction of country's longest slurry pipeline to bring iron ore instead of depending on railway wagons.

Normally, Hy-grade Pellets used to bring about 4 million tonnes of iron ore through railway wagons. But, now they can use the pipeline to transport iron ore to reduce their transportation cost.