Page 32 - CII Artha Magazine

Sector in Focus

Railways: In this overall context of the collection, increase in axle modal share of the Railways in The conventional approach and
loads, door to door service,
freight to more than 40 per
‘Business as Usual’ (BAU)
economy of the nation, Indian
ease of moving piecemeal
scenario of 3.75 per cent CAGR
Railways need to carry 40-45
cent. The objective of the Plan is
traffic etc. These factors have
to create infrastructure capacity
is insufficient to achieve 3000 MT
per cent share of freight on
An Engine of the economic and induced gradual & consistent ahead of demand, which in turn by 2030. This will increase the
modal shift in favour of road
modal share of railways in the
environmental considerations.
would also cater to future
over a period.
logistics sector and overall cost of
growth in demand up to 2050
However, due to chronic
transportation will decrease.
under-investment in IR over
and also continue to sustain it.
years in expansion/
Growth for augmentation of the network NATIONAL RAIL In synergy with the National Accordingly, Indian Railways has
PLAN TO INCREASE
Rail Plan, Indian Railways has
and its upgradation, there
formulated a threefold strategy to
were severe capacity
also prepared a roadmap for
address the constraints of
THE MODAL SHARE
achieving future peak demand
Infrastructure, Rolling Stock and
constraints especially on its
OF RAILWAYS IN
HDN/HUN routes. Capacity
Marketing, pricing, customer
of freight loading of 3000 MT
FREIGHT
Aatmanirbhar constraints eventually resulted Hence, to create a future ready per annum by 2030, from the service & policy related issues.
present loading of 1512 MT in
in low average speed of freight
A. Network Expansion/
traffic, sub-optimal throughput
2022-23, by identifying the
Augmentation and
and poor reliability. In contrast,
works for upgradation of
Upgradation works to improve
other modes of transport,
network systems for carrying
Railway system, IR has
Bharat mainly road, became more formulated the National Rail 3000 MT, induction of wagons B. Commensurate Augmentation
the carrying capacity for
3000MT+20 per cent
and locomotives, prioritising
Plan. The National Rail Plan is
competitive owing to vastly
improved infrastructure during
aimed to formulate strategies
strategies & identifying
based on both operational
the last 25 years coupled with
marketing, pricing, customer
and Upgradation of Rolling
cargo friendly initiatives such
policy initiatives to increase
as GST, electronic toll capacities and commercial service and policy related Stock Fleet (Locos & Wagons)
issues.
C. Policy, Strategic and
Customer-centric initiatives for
inducing modal shift to Rail
T he transportation sector logistics cost in India for pilgrimage across the country. for consumption of goods, as 3000 Growth of Freight Loading The above strategies (A), (B) &
improving the competitiveness
is crucial for economic
has also been witnessed in the
growth of any country, which of Indian goods both in India’s logistics industry developed economies. With (C) have been translated into a
not only connects different domestic as well as export handles over 10,000 types of rising income levels, higher 2500 detailed action plan with 24
parts of the country but also markets. Reduced logistics diverse products and exports, rapidly growing 2000 Mission items. Indian Railways has
facilitates the movement of cost improves efficiency generates about approximately e-commerce and retail market 1500 planned for time bound
goods and people, which is cutting across various sectors 4500- 5000 MT of Cargo and a projected GDP growth ntkm in billion implementation of the above
essential for trade and of the economy, encouraging annually, which translates into of around seven percent in the 1000 loading in mt items through close monitoring
commerce. Indian Railways value addition and enterprise. about 3 trillion NTKM of next five years, the demand for 500 of sanctioning of works and
(IR), the 4th largest Railway Indian Railways with its more transportation output at a goods movement is expected execution by respective Mission
network in the world, has than 170 years of existence, is cost of approximately Rs 9.5 to grow more than 7 per cent 0 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- 2022- Leaders.
21
22
23
13
14
12
10
11
15
19
20
18
16
17
always been the backbone of now making a transformative lakh crore. Demand for freight and transportation output is ntkm in billion 601 626 668 650 666 682 655 620 657 701 669 678 820 901
the transportation sector in change which has been the transport has been increasing expected to increase from the loading in mt 892 926 975 1014 1058 1101 1108 1111 1161 1223 1210 1233 1418 1512 Indian
India. IR plays a stellar role in result of years of planning and rapidly to keep pace with the current level of 3 trillion.
meeting the logistics needs of dedication. The vision of Indian high economic growth Source: Ministry of Railways Railways-
the country and is rightly railways is to provide safe, coupled with the rising Moreover, there are massive
called the lifeline of the nation. efficient, affordable, customer population and improved expectations in the passenger Achieving new
focused and environmentally standards of segment, where the travel
sustainable integrated living, patterns of citizens have Cumulative Track Electrification (RKM) New Lines, Doubling & Gauge Conversion heights and
INDIAN RAILWAYS transportation solutions to which changed due to the pandemic (KM Per Year)
ARE THE BACKBONE the needs of the country. It together and there is more focus on 70,000 4500 focus areas
OF LOGISTICS aims to be a modern vehicle fuel undertaking more meaningful 60,000 52,247 58,812 4000 3925
SECTOR IN THE of inclusive growth, higher journeys. In this context, the 50,000 45,881 3500 The above outlined strategies
COUNTRY connecting remote regions, demand competition between roads 40,000 39,866 3000 2908 are beginning to show results in
communities, ports, mines & and railways has been levelling 35,488 2500 2226 2370
centres of industry, up. Indian Railways has been 30,000 2000 Indian Railways. Many new
IR is a major part of the commerce, continuously making efforts to 20,000 1500 heights have been reached in the
National Logistics Policy, which tourism and provide passengers with 1000 year 2022-23. Indian Railways
envisages to reduce the speedy, efficient, low cost and 10,000 500 has achieved a new high in New
modern transportation 0 0 Line/ Gauge Conversion/
Multi-tracking of about 14.4 km
Shri Anil Kumar Lahoti, Chairman & CEO solutions from origin to 18-19 19-20 20-21 21-22 22-23 2019-20 2020-21 2021-22 2022-23 per day and about 18 Route Km
Railway Board, Government of India destination. Source: Ministry of Railways of electrification per day.
32 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 33
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023