The Hindu Business Line : SW Rly zone freight loading rises 14% in H1

In spite of factors such as decrease in the export market for iron ore, hike in freight rate for iron ore cargo, the Hubli-headquartered South Western Railway (SWR) zone has been able to manage a growth of 14.21 per cent in originating freight traffic in the first half of the current financial year.

Mr Praveen Kumar, General Manager of SWR, told Business Line here on Friday that the SWR recorded an originating freight loading of 22.5 million tonnes in the first six months of the current financial year as against 19.7 million tonnes in the corresponding period of the previous fiscal, recording a growth of 14.21 per cent.

Iron ore

(It is to be noted here that iron ore contributes a major share to the total freight loading of the zone.

Iron ore traffic amounts to around 70 per cent of the total traffic.)

The zone recorded very good loading in the initial months of the current fiscal.

However, he termed that the last two months of the current fiscal were not so satisfactory.

“In September, we loaded 10 per cent less than last year,” he said, and he attributed this to the uncertain situation in the iron ore export market.

China brake

China, which is a major customer for iron ore cargo, has put a brake on lifting iron ore cargo.

This is having adverse impact as the Indian exporters reducing the loading of the cargo.

The increase in freight rate for iron ore cargo diverted some part of the iron ore loading to roads.

Asked about the amount of iron ore cargo shifted from railway to road after the increase in the freight rate, he said around five-six rakes a day, which were earlier moving through railways, were shifted to road.

Monsoon months

Stating that monsoon months are not good for iron ore business, he said some of the ports in the west coast such as Mormugao, Karwar and Belekeri remain closed during that period.

“Normally June-August are the lean period for iron ore business. The good season for the iron ore begins in October,” he said.

Steel goods

Asked about the domestic loading of iron ore cargo, he said that one of the major domestic steel companies has cut down on the iron ore intake in the last 10 days.

“The finished steel product dispatches have come down in September.

“That is an indication that major steel producer has slowed down steel dispatches, which is again hit us in terms of carrying more outward traffic,” he said.

Iron ore and steel products are attractive traffic for SWR zone as they are high rated traffic, he added.