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Date: 24/04/2024

Govt mulls optimising coal movement costs

The government’s inter-ministerial group is re-examining the mechanism for optimising fares for transport of coal through the rail-sea-rail route, encompassing coastal shipping, it is learnt. The idea is to make the fares feasible enough so that this can be used as an alternative mode of evacuation, reduce carbon footprint and create infrastructure at ports that can be later leveraged for exports. The inter-ministerial group includes the Coal Ministry, Railways, Ports, Shipping and Waterways Ministry, and the Power Ministry. There have been some issues that the Railways has been asked to look into which include working on rake rates. The Shipping Ministry is working on the possibility of bringing down some charges like handling costs, berthing costs, and so on. Opting for rail-sea-rail mode could potentially bring about significant reduction in logistics costs for end-users in South India, a study carried out by the Centre had previously said. The possibility of using conveyors to transport coal from mines to the coast is also being looked into, as per a report.
 
Source: Exim News Service: New Delhi, April 23



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