Improving freight operations of Indian railways

Abstract

Despite performing the ever best in the year 2007-08, the IR (Indian Railways)has continued to loose its market share in the freight operation. There has been a drastic shift over the year. In 1951-52, the share of railway traffic in freight transportation was eighty nine percent and road traffic was eleven percent. Reducing this share in 2006-07, the share of IR was only twenty one percent and the road has captured seventy nine percent of the freight transportation. Now the challenge for the IR is how to check this reversing trend and how to improve its share in the freight operation. In this perspective, the study provided an alternative vision to search some alternative. In this study it has been analyzed and found that there has been substantial capacity enhancement in the road sector. The route length of road has increased from four lakh kilometers in 1951-52 to twenty seven lakh kilometers in 2004-05 where as the route length of railways has increased from fifty four thousand kilometers to sixtyt hree thousand kilometers in the corresponding period. Similarly the number of goods vehicle in roadways has improved from 82,000 to 48 lakh whereas the number of wagons in railways has increased from 2.00 lakh to 2.28 lakh in the same period. The budgetary support of Government of India has also reduced from 10% in the First Plan to 5.5% in the Tenth Plan. Since the railway rates are by and large controlled by the government, railway is still not free to collect freight as per the market demand and supply policy. Due to this, the railway has been facing acute shortage of fund for developmental activities and there have been very restricted growth. The priority list of IR is not based on market demand supply. Rather it is based on government priority. In this study an attempt had been made to understand the mood of the customers dealing export-import traffic. Overwhelmingly, the customers have pointed out that low rate is the main attraction point of the IR and the customers would be coming to the IR till its edge of prices over other mode of transportation remains. Uncertainty of wagons for loading emerges as the major problem which indicates that the IR needs to improve the wagon supply condition. Pitiable condition of goods shed emerges to be another stumbling block as this has affected performance of the customers. Uncertainty of the delivery at the destination was another problem area. The IR need to improve its reliability level. The exporters-importers have also desired that their commodities should be transported as per their commitment of export-import. In this study a suggestion has been made to make the export-import traffic as the priority area and to develop proper traffic facilities related with the movement of export-import traffic. The changes in the strategy of the wagon allotment have also been suggested with three tier wagon allotment system including Normal Wagon allotment . Preferential Wagon Allotment and Auction Based Wagon Allotment