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Southern Railways’ freight indices witness upswing

Southern Railways’ freight indices witness upswing

16.682 MT of freight loaded generating Rs.1516.95 Crores during April-October 2021

Concerted efforts of Business Development Units (BDU) adds new commodities to SR’s freight basket

Southern Railway BDUs generate Rs.86.7 Crores of incremental freight earnings during April-October 2021

Southern Railway has registered substantial increase in freight loading and revenue generated during the period from April – October 2021.   Despite the pandemic situation, Southern Railway endeavoured to keep the supply chain intact registering steady growth in both freight loading and revenue generation.

Southern Railway loaded 16.682 Million Tonnes of originating Freight in the first 7 months i.e. April to October of the current financial year ( 2021-22), registering a growth of 12.75% in comparison to the corresponding period of last financial year which stood at 14.796 Million Tonnes

There is also a rise of 26.47% in originating freight revenue in comparison to the first seven months of the last fiscal. During April to October 2021, the revenue generation from originating freight loading is Rs 1516.95 crores against Rs. 1199.50 crores in same period of the previous year. Besides, the originating freight revenue is 2.61% higher  than Board’s target for April-October 2021.

The main commodities of freight loading during this year are Iron & Steel, Raw Material for Steel Plants (RMSP), Coal, Cement, Fertilizer, Petroleum Products and Containers.  Notably, Southern Railway has loaded 7.77 Million tones of Coal, 0.94 Million Tones of Cement, 2.182 million tones of fertilizers, 2.145 tones of POL and 0.938 million tones of Food grains during the period.

Business Development Units yield results

In a bid to double the freight volume by 2024 and attract road traffic, the Ministry of Railways set up Business Development Units (BDUs) at all zonal and divisional levels in July 2020.  In Southern Railway, multi-disciplinary Business Development Unit (BDU) comprising of officers from Operating, Commercial, Finance and Mechanical Departments was set up at Zonal and Divisional levels.Southern Railway’s BDU effort has yielded results in diversifying its freight basket.

Southern Railway has registered an incremental revenue of Rs.86.7 Crores from new commodities captured during April-October of FY 2021-22.  During this period, 9.39 lakh tonnes of new commodities were loaded in 322 rakes.The sustained efforts of Divisional BDUs have helped capture new traffic such as Construction machinery, Harvester machines, power tillers, motor tractors,  Edible oil, Laterite, Motor cars, deoiled cake, Slag, etc.

Division-wise performance of BDUs

During the period from April – October 2021, Chennai Division loaded 4.37 lakh tonnes of new commodities in 150 rakes recording a revenue of Rs.35.28 Crores.  Notably, loading of 2.07 lakh tonnes of Laterite in 52 rakes yielded the highest revenue of Rs.12.05 Crores .  Commodities such as Gypsum, fertilizers, construction machineries, paddy and motor cars also generated considerable revenue for Chennai Division.

Palakkad Division captured new traffic by strengthening its customer base and loaded commodities such as Limestone, Power tillers, Steel coils, Sugar, edible oil and Container traffic.  A total of 1.70 lakh tonnes were loaded in 52 rakes during April-October 2021 generating Rs.14.75 Crores earnings from new traffic.  Significantly, the loading of 1.5 lakh tonnes of Limestone in 39 rakes yielded a revenue of Rs.12.43 Crores for the Division.

Tiruchchirappalli Division attracted new commodities such as Slag, Clinker, Cement, Caustic Soda in Containers, Paddy, sugar and Petcoke to its freight basket.  The division recorded a revenue of Rs.20.82 Crores revenue during April-October 2021 by way of loading 2.15 lakh tonnes of freight in 65 rakes.

Madurai Division BDUs’ concerted efforts attracted the traffic of Charcoal, Clinker, Deoiled cake, Limestone and motor tractors. 1.13 lakh tonnes of new commodities were loaded in 53 rakes during April-October 2021 generating Rs.15.52 Crores revenue. 

During the same period, Salem Division generated Rs.9 lakh by way of loading 1147 tonnes of Harvester machines while Thiruvananthapuram Division fetched the new traffic of Motor tractors generating Rs.24 lakh freight earnings by way of loading 1470 tonnes.

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