Railways maintains steady momentum with higher freight loading in May 2021

Indian Railways reported 114.8 million tonnes of freight loading in May 2021 which is 9.7 per cent higher than the previous best of 104.6 MT reported in May 2019.

The Indian Railways has maintained a steady growth in freight traffic for the second month of the current financial year. The railways reported 114.8 million tonnes (MT) of freight loading in May 2021. This is 9.7 per cent higher than the previous best of 104.6 MT reported in May 2019.

Freight loading had surpassed 2019 levels in April 2021 too with 111.41 MT being transported by the national carrier. This was 10 per cent more than April 2019 levels.

The freight growth is much higher compared to 2020 levels during these months since the first wave of the Covid-19 pandemic and subsequent lockdowns had a more severe impact on business activities.

On the whole, the Railways reported record high freight loading in 2020-2021. This was on the back of speedier freight trains that found more track space since passenger trains were halted for most of the year. But there was also an uptick in some new commodities that the Indian Railways ferried.

“This change has continued and sustained we are carrying more traffic even in the new commodities in our freight basket. Last year, we ferried 40 million tonnes less coal, this year there is significant uptick in coal demand for power generation as well. I feel this demand will be sustained to carry the traditional and new items in the freight basket,” Railway Board Chairman, Suneet Sharma told Business Standard.

“Steps such as the Kisan Rail have also helped up increase freight from categories that were there, but in lesser quantities,” he added.

Steep targets ahead

But the Indian Railways has set a mammoth target of doubling freight loading by 2024. Responding to a query on how this will be achieved in light of the pandemic, Sharma said, “We had ferried 1225 million tonnes freight last year (2020-2021), our target is to carry 2024 million tonnes in the year 2024. To achieve that, mega projects such as the Eastern and Western Dedicated Freight Corridors (DFCs) need to be completed and we hope to see that happen next year. We are planning a freight loading of 1400 million tonnes in the current year.”

Sharma said that with freight increments of 10 per cent, as is the case right now, the Indian Railways will not be able to achieve the 2024 target.

Despite this he is hopeful of significant improvements once major rail projects are completed.

“This year itself over 1000 kilometres of DFCs are complete and major breakthrough is expected when we get traffic to Bhagalpur from the Mundra port. The releasing of capacity by shifting container movement to the freight corridors will be useful for carrying other commodities. The freeing up of capacities due to coal movement being shifted to the freight corridors will be enormous,” he said.

“We believe will definitely get more traffic if we improve the turnaround times and speeds. We are very certain of achieving our freight loading targets as major infrastructure projects come online,” he added.