Indian Railways freight loading in August grows to highest ever level once more

A major reason for the current rise was the growth in non-traditional commodities like automobile, fly ash, stone, onion, chemical salt, sand, sugar and cotton.

August marks the twelfth consecutive month when the Indian Railways had surpassed its highest freight loading volumes. The national carrier had in September last year announced a skew of measures to promote the use of railways to transport goods.

To achieve this, the national transporter had taken several industry-friendly measures during the financial year. This includes the formation of business development units, launching of freight business development portal and introduction of a new iron ore policy.

Tariff incentives like long lead discounts for commodities like coal, iron ore, finished steel, limestone and clinker and short lead discounts for all commodities except coal and iron ore also helped in shifting of a large share of commodities from road to rail route.

In addition, withdrawal of busy season surcharge of 15 percent, 5 percent and 25 percent discount on loaded and empty containers respectively, 40 percent discount for fly ash in railway wagons were other major tariff measures launched during the year.

Among the non-tariff incentives lined up during the year include liberalisation of the wagon and terminal investment schemes, reduction in punitive charges, opening up of all stations for parcel traffic, removing the limit of the number of co-users at sidings, improvement of good sheds and improving the fleet of wagons. For smaller transportation products also distance restriction was removed during the year.