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Blog Entry# 3455557
Posted: May 26 2018 (18:52)

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May 26 2018 (18:52)   JSPL to move 30 million tonne raw materials and steel by rail in 2081-19

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Entry# 3455557   News Entry# 338419         Tags   Past Edits
Business Line reported that Jindal Steel and Power Ltd expects s to increase its rail freight loading by 50 % this year, with plans to lug 30 million tonne in the ongoing fiscal year against 20 million tonne in FY2018.With this, the company’s overall spend on the rail freight will be about INR 3,700 crore for hauling raw material to its plants and final products to customers. This will add INR 1,200 crore to the national transporter's freight earnings kitty this year, as JSPL had a rail freight bill of about INR 2,500 crore last year.
Kapil Rawat, Executive Director Group Logistics, told BusinessLine that the company is widening its special wagon investment portfolio by investing in flat wagons, wider than what
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Railways has, in order to carry wider steel plates that can be used to make pipes, windmills, boilers and construction projects.
The company, which has two plants in Raigarh and Angul, moves raw material to these plants from ports located on the east coast like Paradip, Dhamra and Visakhapatnam. While the company transports these raw materials, coking coal and limestone, from ports to its plants, iron ore is moved from nearby mines for steel plants.
JSPL's raw materials traverse a distance up to 500 km based on the port and plant.It is 220 km for Paradip Port -Angul plant and about 500 km for the Visakhapatnam port-Raigarh plant. However, the company's finished products – steel – move longer distances of 1,000-1,200 km – from its plants in Angul, Odisha, and Raigarh, Chhattisgarh, to customers located in South, West and North.
JSPL is also widening its investments in special wagons, under the special freight train operator (SFTO) scheme of Indian Railways, which enables it to get discounts on freight rates by carrying cargo using those wagons. JSPL, which acquired an SFTO licence to move long rail tracks to be laid in the ongoing Eastern dedicated rail freight corridor under construction, invested in three special trains to move these rail tracks.
In a similar move, it has invested in another type of special wagons to move the large steel plates it is manufacturing as they cannot fit in the present wagon stock of the Indian Railways, or the existing trucks. These newly designed special wagons, called BRN wagons that are open, flat wagons, are wider than what the Railways has in their wagon pool. The company already has the nod from the railway regulatory body Railway Design and Standards Organisation. JSPL has now placed order for three rakes from Jindal Rail Infrastructure.

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