Indian Railways is set to redouble efforts to increase freight movement, with coal loading witnessing 8–9 per cent increase in both volume and value terms. Other major freight categories like cement, raw materials and imported coal witnessed a decline in loading, according to the latest (January first week) figures from the national transporter.

Earnings from coal loading (including imported coal) account for nearly 50 per cent of the Railways’ freight earnings.

Coal loading (excluding imported coal) until the first week of January 2025 was around 528 million tonnes (mt), up by 41-odd mt year-on-year. Earnings from coal loading stood at ₹59,100 crore, up by around ₹4,709 crore. 

Imported coal loading declined by about 10 per cent y-o-y in volume terms. Loading until January 5 stood at 74.38 mt, down by 9–10 mt from the same period a year ago. However, earnings from the segment plunged 18 per cent to ₹7,210 crore.

The other freight categories that saw an increase in loading included refined petroleum products and containers. 

Freight earnings until December were ₹1,25,109 crore, up by about 3.5 per cent y-o-y.

Coal logistics plan

A senior Railways official told businessline that as part of the National Coal Logistics Plan — which aims to increase the country’s annual coal production to 1.5 billion tonnes by FY30 — about 37 railway projects have been identified to plug critical gaps.

One lakh additional wagons would be needed for the projected 86 per cent of coal evacuation by rail by FY2030.

“The Ministry of Railways has undertaken the procurement of these wagons for coal evacuation,” the official said, adding that an origin-destination study of coal movement is currently underway, based on congestion analysis and other scientific data.

This had led to the identification of gaps in railway infrastructure in the blocks currently in operation and those set to be operationalised for the country’s peak production requirement.

Coastal movement

Incidentally, there is a suggestion to increase coastal movement of coal from 40 mt per annum to about 120 mtpa, for which critical railway infrastructure gaps have been identified.

These gaps include the need for rail-over-rail in Cuttack and the four-lining (to be upgraded to four tracks) of the Cuttack-Paradip railway line.

“Authorities of Paradip, Dhamra and Gangavaram port are taking measures to enhance their coal handling capabilities,” a second official said.

With the Integrated Coal Logistics Plan in place, the railways’ share of coal transportation is expected to increase to 87 per cent while lowering the share of road transportation. Integrated first- to last-mile rail connectivity and identification of infra gaps could help cut rail logistics cost by 14 per cent.

“The cost savings identified, as per the plan, is around ₹21,000 crore per annum,” an official said, adding that the plan also envisages lowering of carbon dioxide emissions by 1,00,00 tonnes per annum, with around 10 per cent savings in average turnaround time.

Inland waterways

Incidentally, not just the Railways but even ports are looking to tap into the lucrative coal loading and transportation sector.

National Waterways–5, along the Brahmani and Mahanadi rivers, has been identified for development, specifically aimed at coal movement.

The Inland Waterways Authority of India (IWAI), the Odisha government and Coal India Ltd are forming a special purpose vehicle to develop a waterway for the transportation of coal from the Talcher coal fields to Paradip port.