The Ministry of Coal has reported a substantial increase in the movement of coal via the Rail-Sea-Rail (RSR) route. In the fiscal year 2024 (FY24), coal transportation through this multi-modal system nearly doubled, reaching 54 million tonnes (MT), up from 28 MT in FY22.
This growth underscores the government’s commitment to improving logistical efficiencies and reducing the carbon footprint associated with coal movement. The RSR route involves transporting coal from mines to ports by rail, then shipping it along the coast to another port, and finally delivering it to power plants via rail. This integration of rail and sea transport not only alleviates congestion on traditional all-rail routes but also offers a more cost-effective and environmentally friendly alternative. The coastal shipping component, in particular, has the potential to revolutionize India’s logistics industry by providing a scalable solution to meet the growing energy demands of the country.
To further promote this sustainable mode of coal transportation, the Ministry of Coal has collaborated with Indian Railways to implement measures that enhance the efficiency of the RSR route. One such initiative is the introduction of telescopic freight rate benefits for coal movement to powerhouses from Coal India Ltd (CIL) and its subsidiaries. These incentives aim to make the RSR route more economically viable for power producers, thereby encouraging greater adoption. Looking ahead, the government has set an ambitious target to increase the coal transportation capacity via the RSR route to 112 MT by 2030. This goal is part of a broader strategy to diversify coal evacuation methods and reduce dependence on all-rail routes, which often face capacity constraints during peak demand periods.
By expanding the RSR network, India aims to create a more resilient and sustainable coal supply chain that can better withstand fluctuations in demand and supply. The integration of coastal shipping into the coal logistics framework also opens up new avenues for export opportunities. Developing infrastructure that supports both domestic supply and international trade can position India as a key player in the global coal market. This dual-purpose approach not only enhances energy security but also contributes to economic growth through increased trade.
In conclusion, the Ministry of Coal’s push for sustainable coal logistics via the Rail-Sea-Rail mode represents a forward-thinking approach to meeting the nation’s energy needs. By embracing multi-modal transportation, India is taking significant steps towards a more efficient, cost-effective, and environmentally responsible coal supply chain. As the government continues to invest in and expand this infrastructure, the vision of a greener and more sustainable energy future becomes increasingly attainable.
Coal Ministry Accelerates Sustainable Logistics with RSR Mode
