7 Useful Tips from Experts in Coal Logistics

1. 7 Useful Tips from Experts in Coal Logistics The market demand for coal has been on an upswing. The same can be understood by India being one of the leading importers of coal, only next to China. Every year India imports around 139 Mn tons of coal, out of which 47% comes from Indonesia and 11% from Australia. With this, there are many Indian companies venturing into coal mining and transportation. It is expected that there will be more than 500 Mn tons of coal by 2020, which would further boost the demand for logistics in this area. For now, let's look at some important tips from experts on how to manage coal logistics smoothly. 1) Establish A Strong Backend: Varun Thapar, an expert in coal logistics says that logistics activities need to be very systematic for any business to succeed in the coal transportation sector. He adds that this is more important than anything else because it leads to success in the end. 2) Tailor-Made Approach: Coal transportation should be done through cargo trains rather than express passenger trains because, for this, one does not need specialized rakes or specialized train routes. Instead, it is best to go with a tailor-made approach for this business. 3) Specialized Rakes Are Preferable: It is ideal to use dedicated rakes for coal transportation as they can be handled more efficiently and quickly. They are capable of carrying large loads in one go, thus saving on time and money due to reduced travel distance. 4) Containers Are Ideal For Transportation: Rakes are not suitable for transporting coal because their open design does not protect the cargo against harsh weather conditions. Weather can affect the quality of coal, and hence it is best to opt for specialized containers that offer complete protection from outside elements. They also ensure safety in case of any accidents and thefts.

2. 5) Gauge Conversion: A major problem in this business is that different states have different track gauges. This leads to cargo being unloaded and then loaded again at the destination, leading to a waste of time and money. To avoid such a situation, it is best to stick with standard gauges that will save time. 6) Coal Hogs: Not all states are well known for their coal transportation, but some Indian hubs like Jharsuguda in Orissa or Bokaro in Jharkhand are storage centres for coal. This makes them ideal places to store the cargo before it is transported to different parts of the country. 7) In-House Logistics: In order to avoid any unnecessary hassles in coal transportation, it is best to have an in-house logistics team that will handle every aspect from beginning till end. Outsourcing certain activities can lead to a breach of security, making one liable for legal proceedings. So, these are some tips from experts in the coal logistics industry that will help you immensely in your business. Of course, if you don't want to deal with the hassles and risks of coal transportation yourself, you can always outsource it to a logistics company. They will take care of all aspects, including security and compliance, so that you can focus on expanding your business. DELHI CORPORATE OFFICE Thapar House, 124 Janpanth, New Delhi - 110001, India T: +91 11 40058000 F: +91 11 2336 1978