Indian Railways ordered 2,000 Open Wagons

NEW DELHI : Indian Railways (IR) has signed a significant agreement with a joint venture of the state-owned companies Steel Authority of India (SAIL) and Rail India Technical and Economic Service (RITES), this is reported by the railway transport news portal Railway Supply.

The contract, worth ₹8.2 billion ($99 million), provides for the delivery of 2,000 new open wagons by the end of 2024. These wagons were specially designed for IR by the Indian steel company Jindal Rail.

The new type of open wagon features a universal design intended to optimize cargo transportation: in one direction, the wagons will carry ore, and in the return direction, they will transport raw steel.

This technology was developed in response to India’s growing crude steel production capacity, which requires more efficient logistics solutions.

Currently, IR operates about 318,000 freight wagons. The new contract is just part of a large-scale program to renew and expand the fleet of freight wagons. In the last three months, IR has signed contracts for the supply of 12,000 wagons totaling ₹51.2 billion ($615 million).

In March 2024, IR ordered 6,700 freight wagons from Indian companies Titagarh Rail Systems Ltd and Jupiter Wagon in Kolkata. The total value of these contracts was ₹28.6 billion ($345 million).

In April, a contract was signed for the supply of another 4,500 wagons worth ₹19.2 billion ($230 million), which will be produced by Hindustan Engineering and Industries (HEI).

In May 2024, IR entered into an agreement with Besco for the production of 800 freight wagons worth ₹3.4 billion ($40 million). These orders reflect IR’s strategic focus on modernizing railway transport and increasing its freight capacity.The new wagons will enhance transportation efficiency, reduce logistics costs, and better meet the needs of India’s rapidly growing industry.

The implementation of innovative solutions, such as the universal open wagons from Jindal Rail, demonstrates IR’s commitment to adopting advanced technologies and enhancing competitiveness in the global rail transport market.

Thus, the active renewal of the freight wagon fleet and the introduction of new technologies are key elements of Indian Railways’ development strategy aimed at supporting industrial growth and improving the country’s infrastructure.