The key objective sectors would include coal, cement and steel and, subsequently, other sectors could be used | Photo credit: Jothi Ramalingam B
In a sweeping movement to recover the market share of the road logistics sector, the railroads are preparing a policy to reduce load rates for short-distance loading haals of 250-300 km, government officials familiar with discussions said. Business line.
The initiative, aimed at reinforcing the competitiveness of the rail and addressing the connectivity of the last mile, marks a significant axis for the national transporter, since it seeks to remodel the country’s logistics landscape.
Despite its fixed network or more than 68,000 km, the railroads handle only 29 percent of the Indian load, compared to 65 percent of Road, according to the data of the Ministry of Railways.
Railways intend to take up to 35 percent in the coming years.
The policy, even in its training internships, is designed to undermine the advantage of road transport costs.
The key objective sectors would include coal, cement and steel and, subsequently, other sectors could be used, if the initial responses are positive.
Rail vs Road
With approximately ₹ 2,5 per ton per km, road transport is almost twice as an extent that the current rate of ₹ 1.36 per ton per km, but the advantage comes into play only when travel distances exceed 700 km and more. Moreover, Road Travel enjoys the connectivity of the last mile, for the stores, a segment that the railroads are now trying to address.
“The railroad has the cost advantage in the paper, and also when the distances traveled are 800 to 1000 km, there is almost monopoly for the national transporter. But Road has made the short or accessibility market. If we (railways, is) the last mile truck industry of the last mile mile.
The river routes, to ₹ 1.06 per ton by km, remain a niche player in the load movement segment.
The logistics sector of India, valued at more than $ 200 billion, is a critical artery for the fifth largest economy in the world. But the costs of high inefficiencies, the fragmented network and the great dependence of diesel trucks have a long time hindered growth.
Multiple pilots in
Multiple pilot projects are already being carried out in industrial belts such as Gujarat and Maharashtra, where the railway apartments are updated to handle smaller and sensitive shipments, a domain traditionally dominated by trucks.
Dedicated clues have been identified for the short lead load movement, while there is an impulse to establish warehouse and sheds, near the thesis terminals. The standardization of the rake, instead of reusing the oldest, for an easy load movement and a faster load and the Ushis, has also been carried out.
“The railroads will have almost 100,000 cars available soon, which makes the dedicated load movement in short distances viable,” said the official.
Between fiscal year 2014 and fiscal year24, the average manufacture of the car in India was around 15,875. This has increased a triple in fiscal year 2015 to 43,000, the sources said. While locomotive production has almost doubled at 1,681 in fiscal year 200
Posted on April 19, 2025