(FE)
Cement markers are signing long-term freight contracts with Indian Railways (IR) in droves, a development that would help the transporter reverse the recent trend of a decline in cement loading and allow manufacturers of the binder to cut operating costs significantly. Following India Cement and UltraTech Cement which have signed loading contracts with the railways recently, at least three more large cement makers — ACC, Ambuja Cement and Birla Shakti (Vasavadatta Cement plant in Karnataka) — have inked long-term freight agreements with the transporter. Though the exact quantum of business these contracts will bring to IR is not immediately known, it is certain to benefit from the guaranteed revenue flows.
Apart from cement firms, steel makers are also showing interest in IR’s long-term contract scheme. In July, when the scheme was launched, Tata Steel had inked a contract with the South Eastern Railway. Steel Authority of India and JSW Steel are also getting into such contracts. At least 10 more long-term freight contracts are expected to inked by the end of this month, said a Railway Board member. “Vedanta has also shown interest but they are insisting on coking coal which is not included under the scheme as of now,” added the official.
