Rlys freight traffic rises 11.7% signalling stable core growth

NEW DELHI: Strong industrial growth in recent months seems to have stabilised if the double-digit growth in Indian Railways��� freight traffic is any indicator. The country���s largest transporter carried 73.46 million tonnes of freight in October, up 11.7% over the 66.08 million tonnes ferried in the same month last year.

In August, industrial output showed a remarkable recovery by expanding 10.4% on the back of double-digit growth in mining, manufacturing and electricity sectors as against the 1.7% growth recorded in the same month last year. The Railways has posted a double digit growth in freight traffic for the second time in this financial year.

Railways��� earning from freight on originating basis during April-October period this fiscal increased 7.47% to Rs 32,452.79 crore. The Railways carried 501.28 million tonnes of goods during the first seven months this fiscal.
���The traffic movement increased in almost all the commodities especially iron ore, fertiliser, cement and steel during October.

We would have seen similar growth in September also but external factors such as operational disruption in South Central Railway due to flood, late monsoon and law and order problem in Jharkhand affected freight traffic,��� Railway Board member (traffic) Sri Prakash told media.

Railways minister Mamata Banerjee had set a target of carrying 882 million tonnes of freight in 2009-10 ending March 31, up 49 million tonnes over the previous year. ���We would carry much more than the projected traffic for the current fiscal,��� Mr Prakash said. Due to the economic slowdown, Railways��� freight traffic had dropped to negative territory in October last year.

The sharp fall in commodities such as iron ore, steel and foodgrains severely impacted Railways��� earning in the second half of last fiscal. It earns nearly 65% of its revenue from freight loading. Freight traffic bounced back in April this year with loading growing by about 3.41% to 70 million tonnes.