8^th April, India: Heralding a new era in efficient, cost-effective and eco-friendly rail transportation of products, SAIL, Rourkela Steel Plant (RSP) has commenced operation of LSFTO (Liberalised Special Freight Train Operator) rake.    

In a function organized at Hot Strip Mill-2 of RSP, on 6^th April 2024, Mr. Atanu Bhowmick, Director In-Charge (DIC), 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 PSU to strengthen its logistics to next level with dedicated rake supply.

Mr. S R Suryawanshi, ED (Works), Dr. B K Hota, ED (M&HS), Mr. Tarun Misra, ED (P&A) with the additional charge of ED (Projects), Mr. Alok Verma, ED (Mines), Mr. A K Behuria, ED (F&A), Mr. Ashok Jalwania, Commandant, CISF, Mr. Ardhendu Jain, VP, Rail and Inland Terminals,  DP World Subcontinent and Mr. Amit Garg, Vice President - Domestic Sales - Rail & Inland Terminals  , DP World, Subcontinent,  Mr. Sravan Kumar, CDO, SE Railways, several CGMs of RSP, Senior Officers and a large number of employees of the Plant were present on the occasion.

Mr. Bhowmick lauded the long-awaited initiative which would result in an efficient and sustainable outbound logistics solution. “It is a historic moment for us that we have been waiting for long which is also one step in the direction of ESG compliance. It would help stepping up our operational and logistics-efficiency so as to enhance customer delight and achieve cost-optimisation,” he added.

Mr. Suryawanshi also congratulated the RSP collective for this initiative and appreciated the efforts of the concerned departments for being first in entire SAIL to have LSFTO rakes. 

Mr. Adhendru Jain, Vice President, Rail and Inland Terminals, DP World Subcontinent, in his address, said “We are committed to bridging commerce with efficiency and sustainability. Our latest LSFTO partnership with SAIL will deliver on our promise of enhanced predictability, sustainability, and visibility of cargo. We are grateful to SAIL for this opportunity and will continue to work together to deliver comprehensive logistics solutions that support its supply chain networks to make trade possible.”

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 terminals. In the customised wagons, load adjustment can be planned better to reduce dead freight. The number of despatchable 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%. 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.   

The groove system in the wagons will ensure safe handling of the products with least transportation-damage. The inbuilt lashing mechanism will reduce the loading, metal saddle and lashing cost substantially, while the use of wooden dunnage will be completely eliminated thereby reducing the carbon footprints. With certain modifications plates too can also be dispatched in these rakes. 

Notably, DP World will monitor and manage the running of these rakes as per LSFTO guidelines of Indian Railways.