Logistics of Rail...with strategies....

2. INTRODUCTION
 Indian Railways (reporting mark IR) is an Indian state-
owned enterprise, owned and operated by the government of
India through the Ministry of Railways. It is one of the
world's largest railway networks comprising 115,000 km
(71,000 mi) of track over a route of 65,000 km (40,000 mi)
and 7,500 stations.
 Railways were first introduced to India in 1853
from Bombay to Thane.

3. CONTINUED
 IR carries about 7,500 million passengers annually or more
than 20 million passengers daily (more than a half of which
are suburban passengers) and 2.8 million tons of freight
daily.
 In 2011-2012 Indian Railways
earned 104,278.79 crore (US$19.71 billion) which consists
of 69,675.97 crore (US$13.17 billion) from freight
and 28,645.52 crore (US$5.41 billion) from passengers tickets.

4. INTRODUCTION
 Its operations cover twenty four states and three union
territories and also provides limited international services
to Nepal, Bangladesh and Pakistan.
 Indian Railways is the world's fourth largest commercial or
utility employer, by number of employees, with over
1.4 million employees. As for rolling stock, IR holds over
229,381 Freight Wagons, 59,713 Passenger Coaches and
9,213 Locomotives. The trains have a 5 digit numbering
system as the Indian Railways runs about 10,000 trains daily.
As of 31 March 2012, 22,224 km (13,809 mi) (34%) of the total
65,000 km (40,000 mi) km route length was electrified.

5. COMMERCIAL MOVEMENT
 Indian Railways earns about 70% of its revenues from the
freight traffic (Rs.686.2 billion from freight and Rs.304.6
billion from passengers in 2011-12). Most of its profits come
from movement of freight. It makes a loss on passenger
traffic. It deliberately keeps its passenger fares low and cross-
subsidises the loss-making passenger traffic with the profit-
making freight traffic.

7. SWOT ANALYSIS
STRENGHTS:
 There is a consistent growth over a CAGR of 25 % with
a potential of 100 mmt in the year 2005-06.
 A total of 1.7 MTEUs were rail borne, out of which the North
contributed 0.71 MTEUs and the West 0.23 MTEUS.

8. WEAKNESS
 This is a highly capital intensive business and the cost
of rolling stock is around Rs.13 crores/rail. The cost of
operating an inland container depot is around Rs. 100
crores.
 There is a long gestation period and the project may take
sometimes up to 10 years to achieve break even.
 There is high concentration of traffic at selected port.
78 % of the total container cargo is handled by west coast
ports. 70 % of total traffic at the west coast is handled by a
single port, i.e. Jawaharlal Nehru Port Trust (JNPT).
 60 % of the traffic of the west coast moves to the northern
hinterland, which leads to a heavy congestion along the
routes.

9. OPPORTUNITIES
 With the growth of containerization due to growing
GDP, there exists huge potential in the form of a largely
virgin market. With the congestion at the existing road
linkage ICDs and limited scope for excavation, there is an
opportunity for development of competing facilities.
 There is a potential for running double stacked trains with
the lower haulage charges and better utilisation of rolling
stock and track capacity.

10. THREATS
 This industry is highly dependent on external agencies such
as Indian Railways, port terminal operators and shipping
lines. There are still several unresolved issues on operational
matters, such as stability of rakes, service guarantee and
dedicated freight corridors.
 With regards to double stacked operations due to the lack of
a developed infrastructure, this may take time to take off in a
larger way.
 There exists fragmentation on volumes due to multiple
operations and there is no control on haulage cost.

11. FREIGHT RATE
 In Existing freight structure ,some 3000 commodities have
been classified into several classes, which are shown as class
rates.
 The class rates -start from 60 which is the lowest and end at
class rate 300, which is the highest.(per quintal).

12. CONTINUED…
 Along with class rates Wagon load rates ,Trainload rates has
also been introduced for certain commodities like grains,
Pulses, coal, Fertilizer, cement, iron and steel, limestone etc.
 Special Rates- For Defence, postal tarrif etc.
 Station-to-Station Rate- To meet competition from
alternative modes of transport and to generate additional
freight traffic.

13. DOCUMENTATION
 FORWADING NOTE.

14. OTHER TERMS
 Packaging Conditions.
 Marking Of Consignments.
WB 1761/11 SHM
 Weighment.
 Routing Of Goods.

15. Owners Risk and Railways Risk Rates.
 Railway reciept.
 Demmurage.
 Wharfage.
 Overcharges and Undercharges.

16. LOOKOUTS IN DETAIL
 http://www.indianrailways.gov.in/railwayboard/uploa
ds/directorate/traffic_comm/Freight_Rate_2K12/RC_0
7_12.PDF