India’s coal rake movements rise by 6% y-o-y in Feb’23

India’s total coal rake movements (domestic plus imported coal) stood at 15,172 units in February 2023, which means that the Indian Railways transported 59.16 million tonnes (mnt) of coal during the month, as each rake carries approximately 3,900 t.

In comparison to February 2022, the total rake movement of coal increased by 6% y-o-y. This increase is consistent with dispatches increasing y-o-y. In February,  India’s coal dispatches had risen by 5% y-o-y to 74.9 mnt.

On monthly basis, India’s total coal rake movements have fallen to 6%.  In January it was 16,193 units. The m-o-m fall was due to fewer days in February. Moreover, the average number of rakes per day increased in February compared to January.

In February, average number of rakes per day was 542 while in January the number was 522.

Surge in imported coal traffic  

Imported coal rake movement rose by 31% y-o-y to 2321 in February. This surge was because coal imports rose by 26% y-o-y in February to 17.6 mnt.  Meanwhile, India’s domestic coal rake movement remained almost stable in February compared to a year back.

Zone-wise rake movements

• East Central Railway has trafficked the largest volume with a 4% y-o-y increase.
• Only the South East Central Railway has seen a 3% y-o-y decrease among key ports handling coal movement.
• East Coast Railway, South Central Railway, South East Railway, and Eastern Railway coal traffic had increased by more than double digits in February 2023 as compared to February 2022.

• South Central Railway’s domestic coal traffic has surged by 21% y-o-y.

• East Coast Railway handled more than 57% of the imported coal rake movement in February 2023, with an increase of 31% y-o-y.
• Western Railway’s imported coal rake movement has surged by 132% y-o-y February 2023.
• Except for South West Railway, all other zones had an increase in imported coal rake y-o-y in February 2023.

Outlook

In the near term, the movement of coal rakes is anticipated to rise. The peak month for domestic coal production and dispatches is March. Additionally, it is anticipated that India’s imports of coal would rise as power plants stock up in anticipation of the spike in power demand in the summer season.