What is hurting South Central Railway?

Freight earnings constitute 70 per cent of revenues for the Indian Railways and SCR has had the distinction of standing second in all the zones in freight earnings but in the current fiscal, earnings have been hit for multiple reasons.

Every year Jindal Group transports 6.5 million tonnes of iron ore from Krishnapatnam Port to Bellary but this year till date only just .5 million tonnes have been recorded. With Jindal stopping the import of iron ore and developing its own berth at Goa, the freight revenues have been hit.

Decreased demand, glut in China, and cyclone too have affected Krishnapatnam Port. According to estimates, .7 million tonnes of traffic got affected post the natural disaster.

Save the highest ever single day loading of coal totaling 42 rakes from Singareni coal fields on December 16, 2015, the freight revenues are nothing much to talk about. In 2014-15 freight earnings was Rs 9,393.5 crore and up to December the earnings are Rs 7,050.48 crore.

Indian Railways is losing out on container movement and cement. The revenues have come down by 2.3 million tonne and 3.8 million tonne respectively and the SCR too has been hit as discoms have enough coal stock.