The railway ministry has failed to meet its target of 6 per cent growth in freight traffic in the first quarter of the current financial year (2009-10), data released by the ministry reveal.
The railways have carried 213 million tonnes (mt) of freight in April-June 2009, a 4.7 per cent increase over 203 mt freight traffic in the year-ago quarter.
Though commodity-wise freight revenue of the railways has increased 4.15 per cent during the April-June period over the corresponding quarter last year, freight tonnage itself has fallen short of the set target of 220.5 mt for the period by 7.41 mt.
The number assumes significance as in 2008-09 the deficit in freight loading amounted to 17 mt for the entire year. Railway Minister Mamata Banerjee has set a target of 882 mt for freight traffic in 2009-10. This gives an incremental loading of 49 mt over the 833 mt carried in freight in 2008-09.
Ministry officials attribute the shortfall in loading to the decline in traffic in iron-ore. Traffic in iron-ore for exports has decreased sharply by 37.35 per cent in April-June 2009 over the same period a year ago.
“Freight rate for iron ore has also come down this year”, a ministry official said on condition of anonymity. As a result, revenues from traffic in iron ore has fallen by nearly 32 per cent this quarter.
“India largely exports iron ore to Japan and China. China places short-term orders for importing iron ore. Last year, the demand had risen due to the Beijing Olympics,” the official added.
“In the domestic market too, sponge-iron prices have crashed. Net requirement has come down. Demand is less,” he informed.
Indian Railways has earned Rs 1,874.63 cr in the first quarter from traffic in iron ore, against Rs 2,764.31 crore collected in April-June 2008.
However, the official said: “Freight tonnage has increased 9.59 per cent in June (over the same period last year). We are hopeful the trend will continue and there will be a distinct improvement in freight traffic in the first two months of this quarter.” Coal, he said, would “fuel” growth in freight traffic.
According to sources, the ministry is further concentrating on increasing long lead traffic to boost earnings from freight. Lead refers to the average haul per tonne of freight.
The more the distance an amount of freight is carried over, the greater is the average earning from the traffic.
The initiatives undertaken by ministry to boost freight traffic are significant as the railways earn 66 per cent of their revenue from earnings in freight. The goods earnings for 2009-10 has been projected at Rs 58,525 crore in the Railway Budget this year.
