Freight Movement Of Core Goods Slows Down During April-May

The commodity-wise tonnage moved by the railways showed a sluggish trend in the movement of core goods in the initial months of 1997-98. This could adversely affect the railways freight revenue this year as freight movement rates of core goods are higher than those of non-core goods.

The sluggish trend had been noticed in raw materials for steel plants, iron and steel finished goods, iron ore for export and cement, besides metallurgical coal for steel plants and washeries.

In all, these goods accounted for a shortfall of almost 4 million tonnes in April and May as against the aggregate target set for the two months.

 

Raw materials for steel plants saw a shortfall of 1.15 million tonnes, closely followed by metallurgical coal for steel plants and iron and steel finished goods.

Other core goods which have missed the target are iron ore for export (0.44 million tonne) and coal for washeries (0.24 million tonne).

The movement of cement was marginally down by 0.02 million tonne.

The reason for this disturbing trend could be due to the continuing traffic diversion from rail to road or because production and consumption of the

goods in question were not picking up.

However, the movement of fertilisers and petroleum, oil and lubricants (POL), both of which had slowed down after last October, has picked up.

The fertiliser movement was up by 0.68 million tonne and POL by 0.17 million tonne. Improvement in freight carriage was also seen in coal for power plants and grain (moved on trade account). Coal carriage was up by 1.63 million tonne and grain by 0.87 million tonne.

The net cumulative result is that the total tonnage moved by the railways during April-May exceeded the target of 67.50 million tonnes by 1.21 million tonnes.

To achieve the target of 430 million tonnes set for 1997-98, the railways need to move at least 35.83 million tonnes each month.

Going by this, the tonnage moved in April-May should have been 71.66 million tonnes.

The actual, however, was 68.71 million tonnes, short by 2.95 million tonnes.

The cash-strapped railways need to step up its freight movement in order to achieve its set target as also to avoid the ritual of the freight rate/passenger fare hike this year again.