The Hindu Business Line : Rlys records 18% earnings growth in October

New Delhi, Nov 22 The Indian Railways’ freight earnings for October 2007 registered over 18 per cent growth year-on-year even though the freight loadings for the month witnessed a relatively lower growth rate of 12 per cent.

The relatively higher growth rate of freight revenues has been due to the hike in freight charges through various surcharges (busy season and congestion) imposed with effect from October 1.

This is evident from the fact that for most of the key commodities, Railways witnessed a higher growth rate in earnings than the growth rate in tonnage.

Coal tonnage

For instance, coal tonnage volumes registered a 13.48 per cent growth during the period whereas revenues from coal went up 16.25 per cent. For coal, the net tonne kilometre (NTKM) – a performance measure that records the combined impact of tonnage and distance — witnessed a nine per cent growth. In Oct, Railways moved 27.94 million tonne (mt) coal (24.62 mt) and earned Rs 1,461.51 crore (Rs 1,257.26 crore).

Iron ore, cement

Similarly, tonnage for iron ore for exports went up 44.85 per cent while the earnings registered a whopping 66 per cent growth. Railways moved 4.78 mt of iron ore earning Rs 377.78 crore during the month.

For cement, Railways recorded a 7.28 per cent increase in tonnage (moving 6.93 mt load), while the revenue growth rate was a much higher 18.75 per cent (earning Rs 367.66 crore).

Foodgrains

In foodgrains, despite a 12 per cent fall in tonnage during the month, Railways managed to garner almost 6 per cent higher revenues. Revenues from transporting fertilisers went up by an impressive 21.48 per cent compared to a much lower 6.59 per cent increase in loadings.

An official press release issued here stated: The total earnings from freight traffic during October was Rs 3,976.29 crore, compared to Rs 3,356.77 crore during the corresponding period last year showing an increase of 18.46 per cent. Railways carried 66.05 mt of freight traffic during October as compared to 58.76 mt during the corresponding period last year, registering an increase of 12.41 per cent, it said.

The NTKM went up by 8.05 per cent (from 38,690 million in October 2006 to 41,804 million in October 2007).