A headache for Western Rly

VADODARA, AUG 31: Commercial traffic has been the life-line for the Vadodara division of Western Railways. Transportation of crude oil, c...

VADODARA, AUG 31: Commercial traffic has been the life-line for the Vadodara division of Western Railways. Transportation of crude oil, coal and steel has been its main source of earnings.

But with scores of refineries coming up in other parts of the country, and companies switching over to other means of transport, commercial traffic seems dwindling, thus threatening profits.

Say railway officials, companies 8212; which have been the prime source of income for railways8217; freight 8212; have switched over to other modes of affordable transport system. 8220;Obviously, when the roadways have become cheaper mode of transportation, why would they companies opt for the railways,8221; an official said.

Freight income coupled with passenger traffic were the main sources of profit for the division. But while passenger traffic continues to fetch revenue for the division, it is the commercial traffic which seems to giving the division a hard time.

8220;The number of passenger trains crossing this division is the maximum in comparison to other division of the railways and we do get revenue from this. But in comparison the commercial traffic used to fetch us more money,8221; the official said.

8220;Just a few months back, this was the only division from where crude oil could be transported to the other parts of the country, especially to the north. But with a refinery coming up in Panipat, the transportation has stopped,8221; said a senior divisional officer on conditions of anonymity.While the freight from here used to go up to Mathura, it now only goes to the western parts of the country, he added.

The division8217;s other sources of income had been transportation of steel and coal too, said the officer, adding that of late even Essar Steel had refused to send their raw or finished products though the railways.

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8220;In a time of recession every organisation looks for a cheaper alternative. And for Essar, roadways has proved 20 per cent cheaper than railways,8221; said the official.

Comparing road and rail transport, the official said that though a company could book a whole rake, which ranged from 12 to 18 wagons, for transporting huge amount of goods, road transport was still cheaper.

8220;We are lucky that the Gujarat Electricity Board is not yet importing coal. The day this happens, the Vadodara division would no longer be a profit-generating division,8221; claimed the official.