The Indian government is making significant strides in optimizing coal transportation through the Rail-Sea-Rail (RSR) mode. With coal movement via RSR nearly doubling from 28 million tonnes (MT) in FY22 to 54 MT in FY24, this initiative is set to transform India’s logistics landscape, ensuring efficient coal evacuation while promoting sustainability.
The Need for Rail-Sea-Rail (RSR) Mode in Coal Transportation
India’s growing energy demands necessitate a seamless, cost-effective, and environmentally sustainable coal transportation system. Traditionally, the all-rail route (ARR) has been the primary mode of coal transportation, leading to network congestion, higher logistical costs, and increased carbon emissions. The RSR mode, integrating rail and coastal shipping, provides a viable alternative by decongesting the railway network and leveraging maritime infrastructure for bulk cargo movement.
Key Benefits of the RSR Mode
1. Cost Competitiveness and Efficiency
The latest decision by Indian Railways to allow telescopic benefits in freight rates for coal transported via RSR mode is a game-changer. Previously, coal transported in two legs (mine to unloading port and loading port to power plant) was charged separately for each leg, increasing costs. The telescopic benefit consolidates freight charges, significantly reducing transportation costs and making RSR a more competitive option for coal evacuation.
2. Decongesting Railways and Enhancing Capacity
The ARR mode often faces congestion due to high coal transportation demand, causing delays and inefficiencies in freight movement. The increased use of RSR alleviates this pressure by diverting a significant portion of coal transportation through coastal routes, allowing Indian Railways to optimize its network and improve overall freight services.
3. Environmental Sustainability
The RSR model contributes to India’s sustainability goals by reducing the carbon footprint of coal transportation. Coastal shipping is inherently more fuel-efficient than rail transport, leading to lower greenhouse gas emissions. The shift towards RSR aligns with India’s commitment to sustainable development and cleaner logistics solutions.
4. Strengthening Maritime Infrastructure and Coastal Economy
With the increased adoption of RSR mode, India’s coastal ports and shipping infrastructure will receive a significant boost. The expansion of port facilities, investment in coastal shipping, and integration of rail connectivity with maritime logistics will generate employment, enhance regional economies, and support India’s vision of becoming a global logistics hub.
Impact on India’s Economic Growth
The adoption of RSR mode for coal transportation has far-reaching economic implications:
Boosting Energy Security: Ensuring uninterrupted coal supply to power plants enhances energy security and supports industrial growth.
Improving Logistics Competitiveness: Reduced transportation costs will contribute to overall cost efficiencies in power generation and allied industries.
Enhancing Port Utilization: Increased coal movement via ports will drive investments in coastal shipping infrastructure, fostering maritime trade.
Supporting Make in India and Atmanirbhar Bharat: A robust logistics ecosystem strengthens India’s manufacturing sector by ensuring reliable and cost-effective energy supply.
The government’s focus on Rail-Sea-Rail (RSR) mode as an alternative coal transportation strategy is a significant step towards a resilient, efficient, and sustainable logistics framework. With supportive policies such as telescopic freight benefits and increased coal movement through coastal shipping, India is poised to enhance its energy security, reduce logistics costs, and propel economic growth. Strengthening the RSR mode will not only support India’s coal sector but also pave the way for a more integrated and future-ready multimodal logistics network, essential for achieving the vision of a Viksit Bharat by 2047.
