Coal Transportation via Rail-Sea-Rail Route Reaches 54 Million Tonnes in Two Years
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Synopsis
The Ministry of Coal has doubled coal movement via Rail-Sea-Rail routes to 54 million tonnes over two years, enhancing logistics and reducing carbon footprint, with ongoing efforts to meet rising energy demands.
Key Takeaways
- Coal movement has increased significantly via the Rail-Sea-Rail initiative.
- The RSR method improves logistical efficiency.
- Reduces congestion on traditional rail routes.
- Telescopic benefits in freight rates are introduced.
- Commitment to meeting national energy demands.
New Delhi, Feb 28 (NationPress) The Ministry of Coal announced on Friday that it has successfully doubled the coal movement via its Rail-Sea-Rail route initiative, which combines two transport methods for more effective coal distribution.
This multi-modal system facilitates the smooth transportation of coal from extraction sites to ports and ultimately to end users, enhancing logistical efficiencies.
The Rail-Sea-Rail approach alleviates congestion on the all-rail route (ARR) by introducing an alternative coal evacuation method, while also ensuring a reduced carbon footprint compared to the ARR coal movement. The coastal shipping component holds the potential to transform India’s logistics sector, according to a statement from the Coal Ministry.
In recent years, the Ministry of Coal has made notable advancements in utilizing the coal Rail-Sea-Rail (RSR) networks in collaboration with the Railways. Consequently, coal movement has surged from 28 million tonnes (MT) in FY22 to nearly 54 MT in FY24 and continues to rise.
To further boost RSR coal movement, Indian Railways announced in February their decision to allow a telescopic benefit in freight rates for coal transported from Coal India Ltd (CIL) mines to power stations. This initiative is expected to further increase coal movement in RSR mode.
Currently, domestic coal is being transported from mines via the Rail-Sea-Rail route to satisfy the demands of various power facilities. This process involves transporting coal by rail in two segments: from mines to the unloading port during the first leg, and from the loading port to power plants during the second leg. Traditionally, the billing for both rail transport segments was conducted separately by the Railways.
The telescopic benefit lowers rail freight costs for coal transport compared to the previous method of charging for each leg independently, resulting in reduced transportation expenses in RSR mode.
This decision by the Railways is expected to further enhance coal movement volume in RSR mode and promote coastal shipping, as stated.
The Ministry of Coal reiterated its commitment to improving the Rail-Sea-Rail coal evacuation strategy to effectively meet the increasing energy needs of the nation and ensure a reliable and efficient energy supply system.
