Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Sail’s Bokaro steel plant (BSL) has bought its first freight train to reduce costs incurred for transporting iron ore from mines to plant. The 59 wagon train cost Rs200mn ($2.68mn) would save Rs400,000 per trip from its Kiribu and Meghataburu mines to the steel plant. The railways will also offer a 10pc rebate on transportation of ore with these rakes for 15 years.


Additionally, BSL will save significant costs incurred due to demurrage charges levied by railways for delays in loading and unloading wagons owned by railways. Also, this purchase will solve the non-availability of rakes issue for BSL and ensure scheduled transportation of ore.


BSL owns 40 rail locomotives, but this is the first time it has bought an entire train.


The steel plant has also signed an agreement with Texmaco Rail and Engineering to purchase six rakes under General Purpose Wagon Investment Scheme (GPWIS) sanctioned by the railways. The entire cost of this project is approximately Rs1,100mn.


Besides Bokaro, Sail’s other plants will also secure rakes, including the Bhilai steel plant buying four rakes and the Durgapur steel plant three rakes.



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