The Hindu Business Line : Railway goods loading growth slowed in April

New Delhi May 18 The Indian Railways' high growth story seems to have dampened in April with the total goods loaded witnessing a below five per cent growth — driven by relatively less volumes of coal at pitheads, cement and fertiliser.

Railways witnessed only a 4.87 per cent increase in loadings (at 60.92 million tonnes) in April 2007 compared to April '06. The growth rate is down by 4.6 per cent from the average annual growth of 9.17 per cent witnessed in fiscal 2006-07. It was in 2001-02 that Railways had witnessed a four per cent growth in tonnage and since then, the numbers have been increasing.

Lower volumes

While the Indian Railways is yet to release the break-up of different commodity loads moved in that month, this arrest appears to have been driven by lower volumes of coal, cement and fertiliser movements.

"There has not been a reduction in loading of these commodities. But these loadings have not gone up by as much as was expected by us," Ministry sources pointed out when contacted.

Freight revenue

While loading has not been as expected, freight revenues do not reflect as dismal a story because Railways had increased freight rates for several commodities after June 2006. Increase in freight rates ensured higher earnings from relatively lower volumes of goods moved. Earnings from freight in April 2007 touched Rs 3,698 crore, up 12.9 per cent compared to April 2006. But this too is 26 per cent lower growth than the 17.5 per cent annual freight revenue growth in 2006-07 over the preceding year.

Driven by these disappointing numbers, the Union Railway Minister, Mr Lalu Prasad, recently met the Railway's major customers from various sectors including coal, cement, petroleum and fertiliser firms.

"The meeting was almost a panic call by Railways. We were asked about our problems while moving goods in trains," echoed several people who had attended the meeting. A Railway Ministry official said, "From the meeting, it emerged that several cement plants have stopped production for maintenance and fertiliser volumes went down because of lower import arrivals. Also, lesser coal was available for loading at pitheads."

Railways expects to resume its growth momentum in two months — once these sectors are back on track.