Heralding a new era in efficient, cost-effective and eco-friendly rail transportation of products, SAIL, Rourkela Steel Plant (RSP) has commenced operation of Liberalised Special Freight Train Operator (LSFTO) rake on April 8, 2024.
In a function organised at Hot Strip Mill-2 of RSP, Atanu Bhowmick, Director In-Charge, RSP with the additional charge of Bokaro Steel Plant flagged off the first LSTF rake provided on contract basis by DP World. It is noteworthy that RSP had signed a contract with DP World for the operation of six dedicated BFNS 22.9 rakes on a lease and operate basis. The contract is a first of its kind logistic arrangement by any public sector undertaking to strengthen its logistics to next level with dedicated rake supply.
Notably, the dedicated LSFTO Rakes will play a pivotal role in transporting RSP’s high-quality steel from plant to customers, ensuring a streamlined and efficient supply chain connecting all rail terminals across Indian Railways, including SAIL’s terminals. In the customised wagons, load adjustment can be planned better to reduce dead freight. The number of dispatchable steel rakes will increase to the tune of 15 rakes in a month leading to additional sales turnover of the company. The earning in freight rebate will be upto 12 per cent. Less time to secure the products, zero demurrage payment on loading and unloading of rakes and savings due to less ideal freights are some other major financial benefits to be accrued by the plant with the use of the LSFTO rakes.