Higher coal movement takes rail freight growth to 6.7% in September

Much of this growth was led by coal freight, which rose by 9.4 per cent to 59.7 mt in September, owing to higher coal demand at thermal power plants across the country

After months of sluggish growth, movement of goods through Indian Railways recorded a growth of 6.67 per cent in September, with 123.53 million tonnes (mt) of volumes achieved, according to data released by the ministry of railways.

“Freight revenue of Rs 12,956.95 crore has been achieved in September 2023, against Rs 12,332.70 crore freight earnings in September 2022, thereby showing an improvement of about 5.06 per cent over the last year,” the ministry said.

Much of this growth was led by coal freight, which rose by 9.4 per cent to 59.7 mt in September, owing to a higher coal demand at thermal power plants across the country.

Ahead of the festival season, the movement of finished goods and containers across the railway network also increased in September.

However, the freight basket diversification push from railways has seen slower growth than raw materials, with miscellaneous goods seeing a tepid 4.8 per cent growth in September.

Experts had earlier raised concerns about the growth of freight in railways not being commensurate with the growth of the Indian economy. They felt that it may be an indication of the national transporter losing modal share in national logistics.

In June, for the first time in three years, freight volumes recorded a year-on-year (Y-o-Y) decline. It has since assumed a recovery path, with freight increasing by 6.38 per cent in August as well.

Growth of the eight core sectors, on the other hand, was 12.1 per cent in August.

Overall volume growth in 2023-24 continues to be on the slow track, with data indicating a 2.9 per cent increase in the first half of the fiscal year.

Meanwhile, earnings from freight have increased by 3.4 per cent.

“On a cumulative basis from April–September 2023, freight loading of 758.20 mt was achieved against last year's loading of 736.68 MT. It is an improvement of approximately 21.52 mt over last year’s loading for the same period. Railways earned Rs 81,697 crore against Rs 78,991 crore over the last year, which is an improvement of Rs 2,706 crore,” the ministry of railways said.