This is an attempt to highlight the leakages in our train operations which have huge financial implications but often go unnoticed. Please go through this text
at leisure (as it is 4 pages long) and comments/criticisms are welcome. There are certain assumptions which have been made to ascertain the financial loss due
to detentions, which are a little subjective mainly due to lack of data in the desired format
A REPORT ON FINANCIAL LOSS INCURRED ON ACCOUNT OF CARRYING EMPTY REJECTED BOXN WAGONS FROM THE KORBA AREA
Efficiency of transportation of freight and passengers by rail depends on the quality of three inputs -
- Path, which is the permanent way,
- Capacity, provided by the coaches and wagons and
- Motive power, provided by the locos
Track and motive power are more or less reliable factors, as they have a prescribed schedule of maintenance and are not prone to frequent failures. But it is the quality of wagons, which is of serious concern, which can hamper the growth of freight traffic in Bilaspur division, especially because it is a freight intensive division which single-handedly contributes about 13% of the freight loading of Indian Railways.
In Bilaspur division, the Korba area is the loading hub, comprising of 15 sidings, of which 12 are colliery sidings belonging to M/s South Eastern Coalfields Ltd. On an average, about 30 rakes are loaded daily in these 12 colliery sidings, including about 18-20 from the four loading lines of Junadih siding. This amounts to 4425 FWUs per day, which is about 40% of the total loading done in the division. It also amounts to originating earnings of about Rs.2300 crores per annum from this area alone.
So the quality of empty wagons being placed for loading is extremely crucial for faster loading and drawal of loaded rakes. During an inspection of Korba, it was noticed that there was a major problem with regard to rejected wagons running empty to their destinations. This is a serious issue as it has tremendous financial implications in terms of loss of revenue. So a study was conducted by the undersigned on the loss of revenue caused on this count for the Korba area alone. It may be clarified that Audit had carried out a study and raised an Audit Para on this issue. This is a study carried out independently, even going into the causes of the problem and possible remedies.
Facts of the Problem:
The data made available from the office of the Sr.DME/BSP reveals the following facts about the extent of the problem in the Korba area.
Month |
April 08 |
May 08 |
June 08 |
July 08 |
Aug 08 |
Sept 08 |
No. of rejected wagons |
516 |
487 |
557 |
600 |
714 |
663 |
It can be seen from the above table that the average number of rejected wagons running empty to their destinations stands at around 590. The financial loss on this count is as follows:
- Average number of rejected wagons running empty - 590
- Total number of tonnes of loading lost on this count - 34,810 (assuming every rake carries 3200 tonnes)
- Average yield per tonne on S.E.C.Railway - Rs.663.61
- Total loss of revenue per month - Rs.2,31,00,264/-
- Total loss for the last 6 months - Rs.13,86,01,585/-
There is also an additional loss incurred on account of the detention caused by other damaged wagons, which are repaired after placement on the loading line. The figure of these wagons is almost the same as those as rejected wagons. The average number of such wagons for the period from April 2008 to September 2008 was 649. Though there is no record of what would be the average time taken to repair each wagon, even if we take it as 20 minutes, it amounts to a loss of 4327 wagon hours. Again though no records are available to ascertain as to how many rakes were affected, the general trend, as ascertained by Sr.DME, is an average is about two defective wagons per rake. This would indicate that about 325 rakes are detained on account of defective wagons and would entail a loss of about 108 engine hours. An attempt has been made below to convert these into financial terms.
The cost per wagon hour and engine hour have been taken from the calculations made for determining the ROR in PWP proposals for PH-16.
- Cost per wagon hour - Rs.81
- Financial loss - Rs.3,50,487/- per month
- Cost per engine hour - Rs.7730
- Financial loss - Rs.8,34,840/- per month
- Total wasteful expenditure incurred - Rs.11,85,327/- per month
- Hence the total financial loss per month = Rs.2,31,00,264+Rs.11,85,327 = Rs.2,42,85,591/-
- Total financial loss for 6 months till September 2008 = Rs.2,42,85,591/- x 6 = Rs.14,57,13,456/-
Besides this, the hauling of empty wagons in a fully loaded rake has got serious implications on safety as well. Application of emergency brakes may cause an empty wagon between two loaded wagons to derail and cause a serious dislocation of traffic.
Causes of the Problem:
The main causes for rejection of the wagons by the siding authorities are related to the problem with door closure, floor sheet damage and side panel damage. These above damage to wagons are caused due to the following reasons:
- Damage caused due to negligence in loading operations by the sidings is a major concern. The pay loaders used for loading often hit the side panel in order to finish the loading faster. The problem is more during the monsoon when the coal load lifted by the pay loader sticks to the bottom and the pay loader then dashes the arm against the side panel so that the coal stuck inside falls into the wagon.
- Damage is also caused due to negligence at the time of unloading in various power plants and industrial sidings. The damage is caused by grab cranes, tipplers and by pay loaders. Sometimes, the gripping of the tippler is not proper and that can damage the side panel. The arm of the pay loaders, in order to salvage the coal stuck on the floor of the wagon, strikes the floor sheet with some speed leading to cracks and holes in the floor sheet.
- Inadequate and poor quality of supervision of loading and unloading operations by the Railways is also one of the main reasons. If there is a presence of Railway staff at the time of loading and unloading, there will be a deterrent effect on the part of the siding authorities and the operations will be carried out with more care without damaging the wagons. The Railway administration also is reluctant to act tough against the sidings and levy punitive charges whenever such damage is caused to our assets.
- Another major factor causing damage to the wagons is miscreant activity, associated with theft of coal. Miscreant activity of this kind normally takes place at the periphery of the PSU sidings and at places where detention of loaded rakes normally takes place at interchange points, junction lines and crossovers. The miscreants use crude tools like crowbars, spades, hammers etc. and cause damage to the wagon doors and side panels.
Means to combat these problems:
· The solution to most of the problems above lies in strengthening our supervisory mechanism of loading and unloading operations. The Operating and Mechanical departments should come out with ways to strengthen the supervision.
· We should also counsel and take up with siding authorities on proper use of loading and unloading equipment. We should act tough whenever such damage is caused to our wagons and levy damage and deficiency charges as per rule.
· Since we know the main areas where miscreant activity takes place, patrolling should be intensified in such areas and the results should be closely monitored in terms of arrests made, prosecutions effected etc. We should also take up with the state government the issue of removal of these slums and unauthorised structures which come up by the side of the track and indulge in these activities. If these slums cannot be removed then we should take up the intensification of policing in such areas with the state government to help curb the menace of coal theft and consequent damage of our wagons.
· In order to effectively repair the wagons found defective, portable welding-cum tool vans should be deployed at major loading points so that many of the common defects found in the wagons can be rectified within a short time. If such vans or trucks are not available in required numbers, they should be hired using DRM's powers.
The solutions suggested are of course, not very easy to implement but sustained initiatives in that direction, as suggested above, should be attempted so as to minimize the problem to a large extent. The solutions are also not the quick-fix type ones and the results will take a reasonable time to bear fruit, provided consistent efforts are made in the lines suggested above. There also needs to be a shift in our attitude towards the problem where we should refuse to accept such leakages in our revenue and incurrence of wasteful expenditure. I would like to end only with the sincere hope that the Railway Administration addresses the problem in an effective manner and help plug these massive leakages in our revenue.
