15 hrs ago
South Coast Railway shifts wood pulp traffic to rail
South Coast Railway wants more companies to send goods by train.
Imported wood pulp had been traveling by road from Kakinada to Maharashtra for about 15 years.
The railway found that its freight rules made trains more expensive than trucks.
Officials worked with industry representatives to change the pricing classification for wood pulp.
The new classification lowered the railway charges.
As a result, the 1,061-kilometre shipment was moved to rail.
One train carrying the pulp has already been loaded.
Railway officials expect this business to bring in nearly Rs 20 crore each year.
South Coast Railway has moved imported wood pulp traffic from road to rail.
The 1,061-km route runs from Kakinada to paper units in Maharashtra.
The first rake was loaded at Kakinada Port for Bhigwan in Maharashtra.
A revised tariff classification reduced rail freight charges for wood pulp.
The traffic is expected to add 1.5 lakh tonnes and nearly Rs 20 crore annually.
- Who
- South Coast Railway, railway officials, and industries transporting imported wood pulp.
- What
- Imported wood pulp traffic has been shifted from road to rail, creating a new freight opportunity.
- Where
- From Kakinada Port to Bhigwan in Maharashtra, over a distance of 1,061 kilometres.
- When
- The first rake was loaded on Saturday; the proposal for revised rating was sent to the Railway Board in July 2026.
- Why
- A revised freight classification reduced charges and made rail transport more competitive with road transport.
Key facts
- Commodity
- Imported wood pulp
- Route
- Kakinada to Bhigwan, Maharashtra
- Distance
- 1,061 kilometres
- Previous transport mode
- Road
- New annual freight loading
- Around 1.5 lakh tonnes
- Expected annual revenue
- Nearly Rs 20 crore
- Expected revenue per rake
- Nearly Rs 40 lakh
- New tariff classification
- Class-110 under the Goods Tariff
Quotes
Vijayawada Railway Division
Railway division that issued the press release about the freight initiative
“The successful diversion of this long-distance traffic from road to rail reflects South Coast Railway’s continued efforts towards customer-oriented freight business development, tariff rationalisation and attracting new traffic to the railway system”
financialexpress.com
“Based on the proposal, wood pulp has now been included as a commodity in the Goods Tariff under Class-110. This led to a considerable reduction in the freight charges for the commodity. This made transportation by rail more competitive than road”
financialexpress.com
Sources
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