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A Parliamentary Standing Committee on Railways has again asked the Railway Ministry to prepare zone-specific strategies to increase freight traffic, particularly in areas with limited mineral movement and industrial activity. The Committee has also called for a structured annual review of freight rates based on commodity demand, competition, logistics costs and operating expenses. It welcomed measures such as network expansion, Dedicated Freight Corridors, yard modernisation and private investment in wagons. The Ministry reported that the average number of freight trains per day increased from 4,968 in 2021-22 to 6,789 in 2024-25, while crew shortages remain an issue.
A Parliamentary Standing Committee on Railways has again asked the Railway Ministry to share zone-wise plans aimed at increasing freight traffic, particularly in regions where mineral movement and industrial activity remain limited.
The Committee made the recommendation in its ninth report, which was tabled in Parliament during the past week. It had previously asked the Railways to formulate and implement strategies tailored to individual railway zones to attract more freight traffic.
The Committee welcomed the Railways' efforts to increase network capacity through multitracking, the operationalisation of Dedicated Freight Corridors (DFCs) and modernisation of railway yards. However, it said these infrastructure measures should be supported by more structured planning at the zonal level.
The Railway Ministry informed the Committee that periodic, data-based assessments are carried out using inputs from Zonal Railways, Divisional Railways and Business Development Units. These assessments are used to support policy interventions, freight rate rationalisation and incentive schemes wherever required.
The Committee, while taking note of these measures, called for a structured annual review of freight rates. It said such reviews should examine commodity-wise demand, market competition, logistics costs and operational expenditure before decisions are taken on freight pricing.
The issue is important for Indian Railways because freight remains a major source of its earnings. A previous report of the Standing Committee noted that freight revenue accounts for about 65% of the Railways' earnings and also helps subsidise passenger services. It had also pointed to differences in freight revenue growth across railway zones and called for targeted measures to improve performance in weaker zones.
The Committee also noted that the Railways continue to give considerable priority to coal transportation by ensuring the availability of rakes and wagons. It appreciated the facilitation of private investment under the Private Wagon Investment Scheme. It has now sought clarity on whether the framework under the National Coal Logistics Plan and Policy will also be used to modernise coal transportation through an interconnected and multimodal network.
The Committee also asked the Ministry to provide an update on the Public Private Partnership (PPP) policy for rail connectivity and capacity augmentation, introduced in 2012 and currently under revision.
Coal remains one of the largest components of the Railways' freight business. The Committee's earlier report had noted that coal contributes almost half of railway freight earnings, while also recommending greater attention to other commodities to reduce dependence on a limited freight basket. It had specifically suggested increasing the movement of automobiles, FMCG and e-commerce goods by rail.
The Ministry informed the Committee that the average number of freight trains operated per day increased from 4,968 in 2021-22 to 6,789 in 2024-25. To further improve freight movement, Indian Railways is strengthening existing feeder routes that connect major industrial hubs with the DFC network. The Ministry said infrastructure strengthening and operational improvements are being undertaken to facilitate smoother movement of freight between these hubs and dedicated freight corridors.
The Committee had also raised concerns about improving freight train speeds. The Ministry's submission referred to an average freight train speed of 37 kmph on the DFC network in 2024-25. The broader conventional railway network recorded a lower average freight speed of 23.8 kmph during the same financial year, according to the Committee's earlier report. The higher speed on DFCs underlines their role in moving freight away from the congested conventional network.
The Committee has stressed that better feeder connectivity is necessary to ensure that the benefits of DFC infrastructure extend to industrial centres that are not directly connected to the dedicated corridors. Its earlier recommendations had called for both new feeder routes and capacity augmentation on existing routes for better integration with industrial hubs.
The Committee also raised the shortage of train operating crew and asked the Railways to resolve the issue urgently. It said adequate crew availability is necessary to reduce delays, improve freight throughput and ensure uninterrupted movement on the DFC network.
In its action taken response, the Railway Ministry said 28,769 vacancies for Assistant Loco Pilots (ALPs) and 6,560 vacancies for Goods Train Managers had been notified during 2024 and 2025.
The Ministry further said a substantial number of ALPs had already been selected against 18,799 vacancies advertised in 2024. It expects these recruitment measures to substantially address the shortage of operating crew.
The latest observations follow the Committee's sixth report on increasing freight-related earnings of Indian Railways and developing Dedicated Freight Corridors. That report contained 12 observations and recommendations covering freight earnings, pricing, wagon availability, infrastructure capacity, freight terminals, coal transportation and DFC connectivity.
The Railway Ministry subsequently submitted Action Taken Notes on all the recommendations. The ninth report has now examined the Ministry's responses and made further observations.
The earlier report had also pointed out that several railway yards lack modern loading, unloading and storage facilities. It recommended improvements such as better approach roads, solid platforms and covered facilities. The Committee also supported the expansion of Gati Shakti Cargo Terminals with private participation to improve connectivity between freight-generating regions and industrial hubs.
Freight rate competitiveness has remained another concern. The Committee's earlier review noted that the last comprehensive freight rate revision had taken place in November 2018, despite changes in operating costs. It therefore recommended regular reviews instead of relying on periodic adjustments without a wider assessment of market conditions and railway operating expenses.
Sources PTI