Heralding a new era in efficient, cost-effective and eco-friendly rail transportation of products, SAIL’s Rourkela Steel Plant (RSP) commenced the operation of a liberalised special freight train operator (LSFTO) rake on April 8, 2024.
In a function organised at Hot Strip Mill-2 of the RSP, Atanu Bhowmick, director in-charge, RSP (with the additional charge of the Bokaro Steel Plant), flagged off the first LSTF rake, provided on a contract basis by DP World. It is worth noting that RSP had signed a contract with DP World for the operation of six dedicated BFNS 22.9 rakes on lease-and-operate basis. The contract is a first-of-its-kind logistical arrangement by any public sector undertaking to upgrade its logistics to the next level with a dedicated rake supply.
The dedicated LSFTO rakes will play a pivotal role in transporting RSP’s high quality steel from the plant to customers, ensuring a streamlined and efficient supply chain connecting all rail terminals across the Indian Railways network, including SAIL’s terminals. The customised wagons allow better planning of load adjustment to reduce dead freight. The number of despatchable steel rakes will increase to 15 rakes in a month, improving the sales turnover for the company. Earning in freight rebate will go up to 12 per cent. Lower time to secure products, zero demurrage payment on loading and unloading of rakes, and savings due to less ideal freight are some other major financial benefits to be accrued by the plant with the use of LSFTO rakes.
The groove system in the wagons will ensure safe handling of the products with minimal transportation damage. The built-in lashing mechanism will substantially reduce the loading, metal saddle and lashing costs, and the use of wooden dunnage will be eliminated, thereby reducing the carbon footprint. With certain modifications, plates can also be despatched in these rakes.
Notably, DP World will monitor and manage the running of these rakes as per Indian Railways’ LSFTO guidelines.