BackRail freight earning down 31% in Q1; loading nears pre-covid level in June
Freight traffic volume was down 21.4% during the same period to 241.55 million tonneAs much as 93.58 mt goods were transported in June compared to 101.42 mt a year ago
PremiumNEW DELHI: Indian Railways’ freight revenue declined close to a third during the first quarter of the financial year 2020-21 due to disruptions caused by the coronavirus-induced lockdown in the country, official data showed.
Earnings from movement of goods declined 31.3% on-year to ₹22,266 crore during the quarter-ended June. Freight traffic volume was down 21.4% during the same period to 241.55 million tonne (mt).
Freight loading though significantly improved in June, down only 7% year-on-year, inching towards pre covid-19 level. As much as 93.58 mt goods were transported in June, as compared to 101.42 mt a year ago. On a sequential basis, it grew 13%.
But earnings did not recover in the same pace. In June, freight earnings fell from ₹10,707 crore a in the year-ago period to ₹8,829 crore. In terms of volume, it fell 21% year-on-year to 82.6 mt.
Railways transports bulk industrial goods, an indicator of the pick-up in industrial activity health of the economy. Last month, railway board chairman Vinod Kumar Yadav said movement of items from the core sector--coal, cement, fertilizers--as well as food grains have been the key drivers for this growth. “We are moving to normal loading pattern slowly," Yadav had said.
According to the Railways’ estimates, freight earnings will be at ₹1.47 trillion in 2020-21.
The railways transports a wide basket of goods, including food grain, fertilizers and industrial outputs, such as coal, cement and iron ore, among others. The cement and coal segments comprise more than 50% of freight movement for the national transporter.
Earnings from coal declined to ₹9,260 crore in the quarter-ended June from ₹16,362 crore in the same period last year. Earnings from cement fell to ₹1,594 crore from ₹2,396 crore a year-ago. However, the movement of food grain witnessed a jumped to ₹2,559 crore, from ₹1,802 crore a year ago.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
