Konkan Railway Corporation focuses on freight, sees big gains
Though popular for its passenger services connecting Mumbai-Goa-Kerala through the picturesque coastal area, the KRC in the past few years has started giving emphasis to developing freight corridors.
By Girish Kuber, TNN |
MUMBAI: Refocusing on its priorities has helped the loss-making Konkan Railway Corporation (KRC ) beat the downward trend. Though popular for its passenger services connecting Mumbai-Goa-Kerala through the picturesque coastal area, the KRC in the past few years has started giving emphasis to developing freight corridors.
“Initially we had a meagre goods movement and that was adding to our losses. Now, we have tied up with various private and government units for freight services. It has reflected on our balancesheet and has helped us come out of the red,” said KRC chairman and managing director Anurag Mishra on the eve of its 10th anniversary.
In the first six years the KRC had just about 20% revenue from freight services while the passenger movement was contributing for the rest. The KRC had three freight train services while the number of passenger trains was 12. In an effort to reverse the trend it has recently tied up with miners from Goa and Karnataka along with corporates, like Tata Metalics at Sawantwadi, offering them freight services.
“This has resulted in the KRC earning Rs 25.5 crore from freights during December ’07, which is highest-ever for Konkan Railway,” Mr Mishra said.
The cargo earnings have increased from Rs 87.68 crore in 2004-05 to Rs 206.58 crore in 2006-07 and the freight revenue has surpassed the passenger revenue for the first time in 2006-07. The revenue from RO-RO services —where trucks are carried on trains — has increased from Rs 14.81 crore in 2005-06 to Rs 21.38 crore in 2006-07.
“This is in line with the Indian Railways that mops up Rs 20,000 crore by ferrying passengers and collects double that amount by carrying goods,” he said. In the current financial year KRC has achieved an operating surplus of around Rs 107 crore till December-end, which is 23% higher than that for the previous financial year.
The freight earnings this year are up by over 21% compared to the previous year, coaching earnings are up by over 7% and total earnings have improved by almost 12%.
According to Mr Mishra, there has been a growth of 38% in freight earnings in 2006-07 compared to the previous year. “There has been an increase in the number of freight trains in the last financial year as compared to 2005-06. In 2006-07 there were around 3,516 trains compared to 2,984 trains in the previous year, which is an 18% rise,” he said.
Besides, KRC’s other innovations such as anti-collision device (ACD), SkyBus metro, etc, have generated much interest among investors. The railway ministry has already undertaken a plan to install ACDs in all its services. KRC has invited global tenders to develop SkyBus metro.
“Initially we had a meagre goods movement and that was adding to our losses. Now, we have tied up with various private and government units for freight services. It has reflected on our balancesheet and has helped us come out of the red,” said KRC chairman and managing director Anurag Mishra on the eve of its 10th anniversary.
In the first six years the KRC had just about 20% revenue from freight services while the passenger movement was contributing for the rest. The KRC had three freight train services while the number of passenger trains was 12. In an effort to reverse the trend it has recently tied up with miners from Goa and Karnataka along with corporates, like Tata Metalics at Sawantwadi, offering them freight services.
“This has resulted in the KRC earning Rs 25.5 crore from freights during December ’07, which is highest-ever for Konkan Railway,” Mr Mishra said.
The cargo earnings have increased from Rs 87.68 crore in 2004-05 to Rs 206.58 crore in 2006-07 and the freight revenue has surpassed the passenger revenue for the first time in 2006-07. The revenue from RO-RO services —where trucks are carried on trains — has increased from Rs 14.81 crore in 2005-06 to Rs 21.38 crore in 2006-07.
“This is in line with the Indian Railways that mops up Rs 20,000 crore by ferrying passengers and collects double that amount by carrying goods,” he said. In the current financial year KRC has achieved an operating surplus of around Rs 107 crore till December-end, which is 23% higher than that for the previous financial year.
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The freight earnings this year are up by over 21% compared to the previous year, coaching earnings are up by over 7% and total earnings have improved by almost 12%.
According to Mr Mishra, there has been a growth of 38% in freight earnings in 2006-07 compared to the previous year. “There has been an increase in the number of freight trains in the last financial year as compared to 2005-06. In 2006-07 there were around 3,516 trains compared to 2,984 trains in the previous year, which is an 18% rise,” he said.
Besides, KRC’s other innovations such as anti-collision device (ACD), SkyBus metro, etc, have generated much interest among investors. The railway ministry has already undertaken a plan to install ACDs in all its services. KRC has invited global tenders to develop SkyBus metro.
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