Railways Expects To Earn More From Freight This Fiscal Despite Covid-19 Outbreak
Railways expects to earn more from freight movement in 2020-21 than a year ago, aided by transportation of staples to commodities.
Indian Railways expects to earn more from freight movement in 2020-21 than a year ago even as economic activity collapsed following the Covid-19 outbreak.
“As far as revenue from freight is concerned, not only we’ll be able to reach last year’s level but we will be able to make more earnings than last year,” VK Yadav, chairman of the Railway Board, addressed reporters over a virtual press conference on Friday. “Freight traffic has been more than 90% in June as compared to the same month last year.”
Essential commodities and foodgrains were key drivers for the increase in freight traffic, he said. The amount of foodgrains transported through rail is almost double compared to last year, he said, adding coal movement was another key driver following a pick-up in power generation.
Freight rail continued during the two-month stringent lockdown, transporting staples among other items, at a time when most other modes of transport came to a halt. All but essential businesses were shuttered during the period, dealing a blow to consumption.
Movement of commodities like steel, fertiliser and iron ore, too, has started to increase across the country, the railways said. Freight traffic for April-June 17, 2020 stood at 200 million tonnes, according to a presentation by the national transporter. That compares with 101.41 MT it clocked in June 2019. “So, it really indicates that economic activity is picking up and we’re slowly going back to normal.”
Freight traffic, however, slumped nearly 28% year-on-year during April-May to 148 MT, as transport of coal was badly affected, the railways said. Coal and cement account for more than half of the world’s fourth-oldest network’s freight.
Passenger services, which contributed nearly Rs 50,000 crore in revenue a year ago, are yet to commence large-scale operations. The transporter would normally operate over 1,800 mail and express trains and 4,000 passenger trains, but is running a mere 230 trains at present following the pandemic.
“We’re keeping a close watch as there is uncertainty in demand for passenger trains,” Yadav said. “Based on assessments we will add trains, whenever needed.”
The Railway Board chairman also said they’re working to eliminate their dependence on imports. For signalling projects, 70% of the components are made in India, and we’re mostly inviting tenders where only domestic bidders are allowed to bid.