India’s steelmakers have expressed concern about the unavailability of railway rakes to transport iron ore and other raw materials. Steelmakers through Steel Association of India – involving companies such as Tata Steel, SAIL, JSW, JSPL, AMNS India and others – has shown that empty rakes (known as BOXN wagons) are moving out of the factory instead. because of the slag load.
In addition, with the Railways imposing a two-year ban on the introduction of new rakes under the General Purpose Wagon Investment Scheme (GPWIS), rake shortages continue, as mentioned in a letter letter to the Ministry of Steel.
On March 13, Railways issued an order with immediate effect under which Policy GPWIS was reviewed.
Lack of money to scratch
According to market sources, it takes at least 3.5 tons of raw materials to produce one ton of steel. And integrated steel mills require 30 iron ore rakes per day, compared with today’s industry average of 25 rakes. As a result, the transportation of iron ore is taking place by road and the production of the hot metal is being limited.
The letter mentioned that the “lack of rail rakes to transport raw materials and finished steel” has resulted in finished steel piled up “at the construction site” of the mills.
“There is a severe shortage of locusts at the ports of the East Coast Railway, mainly Paradip, Dhamra, Vizag and Gangavaram. The significant reduction in raking capacity has resulted in a reduction in output despite sufficient imported coal stockpiles at the ports,” it was mentioned.
The Indian Steel Association, in its letter to the ministry, also sought to reinstate long-term tariff contracts, a policy that has now been discontinued. “The resumption of long-term tariff contracts will increase the rail multiplier as the main raw materials – iron ore and coal – make up the largest share of traffic,” it said.
The Ministry of Steel has also been encouraged to participate to accelerate the completion of priority lines such as the Angul–Sukinda railway, doubling the Banaspani – Jakhpuria and Jaroli – Jakhapura lines and building the third and fourth lines on important routes such as Jarapada to Budhapank and Budhapank to Salegaon.
There have been concerns about steel mills’ current SFTO/LSTFO rakes – which were put in place to overcome shortages of rakes from the Railways – are operating at an average speed of 10 – 12 km, well below the speed limit. average of Indian Railways. In logistical parlance, SFTO refers to a party that will invest in the procurement of rakes and obtain permission from the Ministry of Railways to arrange the loading and unloading of cargo in its automated freight trains.