Railways’ freight traffic bounces back in June1 min read . Updated: 19 Jun 2020, 09:45 PM IST
Freight earnings declined by over one-third in April and May, as the lockdown brought the economy to a standstill
Freight loading has substantially picked up in June, indicating an uptick in economic activity, Railway Board chairman V.K. Yadav said on Friday. Movement of items from the core sector—coal, cement, fertilizer—as well as foodgrains have been the key drivers for this growth.
“Freight traffic has started picking up. In June (till 17th), we are close to 91% of regular loading (as compared to 2019). Movement of cement, coal, fertilizer, steel is picking up. We are moving to normal loading pattern slowly," he said.
Freight earnings declined by over one-third in April and May, as the lockdown brought the economy to a standstill.
In April-May, earnings from goods movement declined 38% year-on-year (y-o-y) to ₹13,436 crore, with traffic volume down 28% during the same period to 149 million tonnes (MT).
In May, freight earnings fell from ₹11,043 in 2019 to ₹7,437 crore. In terms of volume, it fell 21% y-o-y to 82.6 MT. However, movement of goods picked up substantially, from April, when freight traffic was 65 MT and revenue was ₹5,999 crore.
Movement of foodgrains has picked up substantially. In May, foodgrain revenue rose over 50% y-o-y to ₹1,177 crore.
“In the freight (business), we will be able to earn more than last year. I don’t see any problem in revenue from freight," Yadav said, adding there could be some uncertainty in the passenger earnings segment due to the coronavirus lockdown.