Shortage of wagons to hit rail freight earnings

The Railways are going to face a shortage of 4,000 wagons by the end of the current year. And the public sector wagon manufacturing units do not seem to be a great help -- they are producing half of what they can.

"While the demand for the year is expected to rise to 22,763 four-wheel wagons against the targeted 20,000, the wagon producing units would manage to manufacture only 18,500 wagons," a railway ministry official said. Only 12,000 wagons had been produced till November, he added.

He said that these units would not be able to manufacture even 20,000 wagons already tendered by the Railways. In fact, seeing a surge in demand, the ministry plans to increase its order by 30 per cent, but officials are expressing doubts about any appreciable increase in production.

The shortage means the railways loses out on the freight traffic. "We are not being able to meet the demand, with requests for rakes or indents piling up with the Railways. The Railways is specifically facing problems in case of iron-ore traffic," another official pointed out.

Of the 12 wagon manufacturing units, four are in the public sector. Three of the public sector firms -- Burn Standard Company Ltd, Braithwaite & Company Ltd and Bharat Wagon and Engineering Company Ltd -- are sick units and therefore have been producing below capacity, the officials said.

Even though the private manufacturers have a better track record, the ministry's hands are tied as the public sector manufacturers are to be given a preference.

Apart form the lack of rolling capital, shortage of wheels also affect the production capacity of these units. The Railways supplies wheels to the wagon manufacturers.

"There is a shortfall of about 35,000 wheels at present, which the ministry is trying to meet. It is not possible to keep on producing wagons, if adequate wheels are not available as manufacturers lack storage space for such wagons," a ministry official said.

He added that the wheel shortfall is expected to be met as the Durgapur Steel Plant has promised to supply 60,000 wheels for the current year, against 57,500 wheels committed.

The plant would step up its production to supply 70,000 and 80,000 wheels during the next two years.