Indian Railways freight rose 6.1% in September and revenue rose 9.3%

NEW DELHI: Indian Railways’ freight load rose 6.14% year-on-year to 135.35 million tonnes in September from 127.52 million tonnes a year earlier, driven by growth in several key commodity segments, according to data released by the Railway Ministry on Tuesday.

Cumulative freight traffic for April to September increased by 4.1% year-on-year to 833.7 million tons. Shipping revenue rose 3.7% during the first half of the current financial year, the ministry said.

Strong September growth

Several major commodity segments posted strong growth in September. Food grain shipments increased by 25%, followed by clinker by 20%, domestic containers by 10%, coal by 9%, other commodities by 8.2%, mineral oil by 6%, finished steel by 5.5% and iron ore by 5.2%.

Indian Railways also boosted coal supplies to power plants during the month. The average number of coal rakes delivered daily rose 11.6% to 443 in September from 397 per day a year earlier.

Revenues from transportation in September increased by ₹1,266 million or 9.3% over the year-ago period.

The increase in cargo movement comes as Indian Railways seeks to expand its share of India’s logistics market by improving last-mile connectivity and adding capacity for industrial cargo. Its share fell below 30% and the national carrier wants to increase it to more than 45% in the coming years. The ministry attributed the latest growth to demand in sectors such as coal, steel and fertilizers, among others.

Railways are counting on growth in freight traffic to boost their revenue. For the current financial year, it aims to increase cargo loading to 1,765 million tonnes from an estimated 1,670 to 1,700 million tonnes in fiscal year 2026 (FY26). At the target level, an increase in revenue from freight transport is expected ₹1.88 trillion, approximately ₹1.78 trillion in FY26.