The Hindu Business Line : SWR seeks rebate on freight for Mangalore-bound iron ore

Recently in Hubli The Hubli-headquartered South Western Railway (SWR) zone, which has created capacity on the Bellary-Mangalore section, is not able to utilise it to the full for handling iron ore cargo. The main reason for this is the increase in railway freight charge for iron ore cargo.

However, the SWR is hopeful of utilising it to the full, provided a proposal it submitted, on reducing freight charge for iron ore, gets the Railway Board approval.

Speaking to Business Line in Hubli, Mr Praveen Kumar, General Manager of SWR, said SWR has approached the Railway Board, seeking 20 per cent rebate in railway freight charge for iron ore cargo towards New Mangalore Port sector.

“We have approached the Railway Board to nurture this Mangalore port sector. We have asked them to give 20 per cent rebate for our loading parties. We expect that with 20 per cent rebate on freight rate we may be able to win back some of the traffic,” he said

Freight rebate

He said SWR has created capacity on the Bellary-Mangalore section. “But I am not able to utilise it. I can run four rakes a day. However, I am running only two rakes a day. Rebate on railway freight charge for iron ore cargo will help earn more and avoid damage to road infrastructure. In fact, Mangalore port is also geared up to handle rail cargo,” he said.

Iron ore cargo contributes to around 70 per cent of the freight loading of SWR zone. Nearly five-six rakes a day of iron ore cargo was shifted to road transport system after the increase in railway freight charge for iron ore cargo.

It is to be noted here that Railways had increased the freight rate for iron ore cargo for export on May 22, in order to make export dearer and to encourage domestic consumption. The railway freight charge for iron ore cargo from Bellary to Mangalore — which was Rs 1,434.27 a tonne on April 1 — was increased to Rs 1,853.53 a tonne on May 22.