Railways witnesses 10% increase in freight loading in June, shows data

Freight volumes for the national transporter, Indian Railways, had contracted year-on-year for the first time since the coronavirus outbreak in June 2023

Indian Railways witnessed a 10 per cent increase in freight loading in June, marking a rare double-digit rise in its goods transportation in the past few months, according to data released by the ministry of railways.

“During the month of June 2024, originating freight loading of 135.46 million tonnes (mt) has been achieved against loading of 123.06 mt in June 2023, which is an improvement of around 10.07 per cent over last year,” the ministry said on Tuesday.

This is primarily on account of a low-base effect. 

Freight volumes for the national transporter had contracted year-on-year (Y-o-Y) for the first time since the Covid outbreak in June 2023.

The railways had ferried 123 million tonnes (mt) of goods, almost 2 per cent less than June 2022.

Before that, railway freight volumes had been witnessing Y-o-Y growth for the past 36 months, after they drastically declined between March 2020 and July 2020 amid Covid restrictions.

Earnings from freight operations in June 2023 had also decreased 0.95 per cent Y-o-Y to Rs 13,316 crore. This June, railway earnings from freight also increased by 11.1 per cent over the previous year at Rs 14,798 crore.

Last June, volumes had been impacted primarily on account of less demand for coal due to unseasonal rains, the cyclone Biporjoy, and halting and review of several sections in the railways in the aftermath of the Balasore accident.

“Indian Railways achieved loading of 60.27 mt in coal (excluding imported coal), 8.82 mt in imported coal, 15.07 mt in iron ore, 5.36 mt in pig iron and finished steel, 7.56 mt in cement (excl. clinker), 5.28 mt in clinker, 4.21 mt in foodgrains, 5.30 mt in fertilisers, 4.18 mt in mineral oil, 6.97 mt in containers and 10.06 mt in balance other goods during June, 2024,” the ministry of railways said.

Demand for coal, which accounts for 50 per cent of the national transporter’s freight volumes and earnings, increased substantially this year. This was on account of multiple heat waves and record high temperatures in several parts of the country.