Rail freight loading slowdown continues; November sees 1.4% growth

Freight loading on Indian Railways continued to show sluggish growth in November, with the national transporter handling 130 million tonnes (mt) of goods, marking a 1.36 per cent increase compared to the same month last year.

 

Coal, which makes up half of the railway’s freight volume, saw a year-on-year (Y-o-Y) growth of 3.4 per cent, reaching 65.5 mt.

 

According to the India Meteorological Department, average temperatures in India in November were 1.05 degrees Celsius above normal, making it the seventh hottest November on record.

 

Data from the core sector up to October reveals a 5.3 per cent increase in electricity generation so far this year.

 

Container volumes grew by 3.9 per cent in November, while overall growth for 2024-25 (FY25) stands at 3.4 per cent. Iron ore and steel cargo grew by 1.8 per cent, while foodgrain showed a 5 per cent rise. Fertiliser shipments remained nearly flat, with only a 0.8 per cent increase, while miscellaneous goods grew by 1.8 per cent.

 

A senior railway official said that the focus in recent months has been on passenger trains, due to the festival season’s surge in travel, which saw 120 million passengers using the railways. This follows last year’s criticism for insufficient general coach supply during the festival rush, a shortcoming the ministry worked to address this year.

 

For the current financial year, Indian Railways has transported 1,038 mt of freight, reflecting a 2.1 per cent increase over 2023-24 (FY24). Coal volumes grew by 5.6 per cent, while iron ore (accounting for 11 per cent of the freight mix) showed no growth, and petroleum products grew by 1.6 per cent.

 

The Centre for Monitoring Indian Economy forecasts a 3.3 per cent Y-o-Y increase in freight traffic for FY25. “This is quite a deceleration compared to the 15 per cent rise seen in 2021-22, a 6.6 per cent rise seen in 2022-23, and a 5.2 per cent growth registered in the previous financial year,” it said in a forecast in October.

 

The ministry targets Rs 1.8 trillion from freight operations this financial year, a 6.5 per cent increase over Revised Estimates for FY24 but consistent with the original Budget Estimates.

 

Experts have raised concerns that the national transporter’s sluggish freight growth may pose challenges to its Mission 3000, which aims to carry 3,000 mt of goods by 2030.