The Hindu Business Line : SAIL's rail movement to increase 15% this year

Riding on an estimated 14 per cent jump in the production of hot metal at 16.37 million tonnes (mt) in 2007-08 compared to 14.37 mt in 2006-07, Steel Authority of India Limited (SAIL) hopes to transport over 15 per cent more cargo by rail this fiscal compared to the previous one. Thus, in 2007-08, SAIL's rail transportation is estimated at 71.50 mt against 61.88 mt in 2006-07.

The inward-outward break-up shows that this year, SAIL's rail-borne inward traffic comprising raw materials such as coal — indigenous , imported and boiler — iron ore, flux and manganese ore will be 56.29 mt (48.74 mt) and the outward traffic made up of finished products, both primary and secondary varieties, 15.21 mt (13.14 mt) — both growing at over 15 per cent.

The volumes of indigenous and boiler coal projected to be transported by rail during the year under review will drop — indigenous coal by more than 12 per cent at 3.42 mt (3.9 mt) and boiler coal by more than three per cent at 4.74 mt (4.89 mt). However, the throughput of other items of inward traffic are projected to rise - imported coal by 30 per cent at 13 mt (10 mt), iron ore by 18 per cent at 27.7 mt (23.53 mt) and flux by more than 15 per cent at 7.26 mt (6.29 mt). The throughput of manganese ore will rise marginally to 0.08 mt (0.07mt).

In the case of outward traffic, rail transportation of primary products will rise by 17 per cent at 12.43 mt (10.61 mt) and of secondary products by about 10 per cent at 2.79 mt (2.53 mt).

SER, the key mover

An analysis of the projected SAIL traffic among different railway zones shows that South Eastern Railway (SER) will continue to handle the bulk of the traffic at 36.78 mt (32.39 mt) , comprising 29.68 mt (25.97 mt) of inward traffic and 7.10 mt (6.42 mt) of outward traffic, while East Coast Railway (ECoR) is to post highest growth of 38 per cent at 7.74 mt (5.61 mt), all inward. SER will post 13.5 per cent growth.

During the year, on SAIL account, an estimated 16.7 per cent growth is projected to be achieved by South East Central Railway (SECR) at 18.59 mt (15.93 mt), 19.3 per cent by Eastern Railway (ER) at 3.10 mt (2.6 mt), 19.9 per cent by West Central and Central Railway (WC&CR) at 2.29 mt (1.91 mt), all inward, and 12 per cent by North Western Railway (NWR) at 1.43 mt (1.28 mt), also all inward. The lone exception will be East Central Railway (ECR) whose throughput will drop by an estimated 27 per cent at 1.58 mt (2.16 mt), again all inward traffic.

In other words, the three zones — SER, SECR and EcoR, all part of the erstwhile undivided SER — together will handle more than 88 per cent of the traffic, both inward and outward. ECoR will not handle any outward traffic. The only other zonal railway which, together with SER and SECR, will handle SAIL's outward traffic is ER.

Import coal

There will be a 30 per cent jump in the import of coal by SAIL at 13 mt in 2007-08 compared to 10 mt in 2006-07 and the railway zone-wise break-up shows that two zonal railways will handle the entire import - ECoR, which will handle 7.54 mt (5.48 mt), a 40 per cent growth, and SER 5.46 mt (4.58 mt), a growth of 19per cent. SER will handle the largest volumes of iron ore for SAIL's plants, an estimated 18.19 mt (15.63 mt), or a growth of 16.4 per cent, followed by SECR, 9.51 mt (7.9 mt), an over 20 per cent growth.

But then SER will also take the biggest hit in respect of the movement of indigenous coal. While the overall throughput of indigenous coal will drop by about 12per cent, in case of SER the drop will be nearly 18 per cent at 2.23 mt ( 2.71 mt). The throughputs of other zonal railways handling indigenous coal, namely, ER, EC and WC&CR, however, will remain unchanged at their present levels.

Ports' share

The port-wise break-ups show Haldia will handle an estimated six mt (4.5 mt) of imported coal for different SAIL plants, Paradip two mt (1.7 mt) and Visakhapatnam five mt ( 3.8 mt).

Haldia will cater to the requirements of Durgapur steel plant, Bokaro steel plant, IISCO and Durgapur Projects Ltd; Paradip will serve Durgapur steel plant, Rourkela steel plant, Bokaro steel plant and IISCO; and Visakhapatnam, Bhilai steel plant and Rourkela steel plant.

The bulk of the imported coal, 4.63 mt (3.79 mt), will be transported to Bhilai , followed by Bokaro , 3.54 mt (2.72 mt), Durgapur , 1.77 mt (1.39 mt), Rourkela 1.66 mt (1.24 mt) and IISCO 0.78 mt (0.5 mt).

It may be noted that for the past couple of years SAIL has been supplying imported coal to DPL for conversion into coke.

After conversion, SAIL takes delivery of the coke. In 2006-07, the volume was 0.41 mt, projected to rise to 0.71 mt in 2007-08.

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