Railway freights may increase for steel and iron ore in India
Industry reports from
India refer to a possibility that the Railways may hike the railway
freight rates particularly for commodities of steel
iron ore and cement. The expectations that the booming demand will keep the steel and
iron ore movement high for both domestic and foreign market for a couple of more years lead to the idea of
freight increase. The Railways believe that such
freight hike can easily be absorbed by the industry enjoying increased profit margins.
The officials also refer to the option of reducing the
freight rates back, in case same are found to be too heavy. However, it must be noted that at this stage such
freight hike is only a proposal currently under review.