After the logistics, coal and power industries, Minister for Railways Piyush Goyal has now reached out to the automobile sector. This is part of the Railway Ministry’s plan to grab a higher share of the transportation market for the Indian Railways.
Indian Railways is going after a modal share of 20% of the automobile transportation market by 2020-21. By FY 2023-24, the Ministry wants to increase this share to 30%.
Minister Goyal met representatives of SIAM (Society of Indian Automobile Manufacturers), Tata Motors, Hyundai Motors, Ford Motors, Mahindra & Mahindra, Honda India, and Maruti Suzuki Ltd, The Automobile Freight Train Operators (AFTOs), Automotive Tyre Manufacturers’ Association (ATMA), according to a Ministry statement.
Indian Railways Automobile Transport Business
Transportation by rail of automobiles from the factory to consumer markets or ports has steadily increased over the years.
From 429 rakes in 2013-14, Indian Railways has increased their tally to 1,595 rakes in FY 2019-20. From April to September 2020, the transporter has loaded 836 rakes with automobiles against 731 for the same period in the previous year, Railway Ministry data says.
This despite starkly reduced loading in April and May 2020 due to a strict lockdown that resulted in the closure of factories and supply chains, claims the Ministry statement.
Indian Railways Measures To Attract Automobile Industry
- Haulage charges for BCACBM rakes have not been revised since May 2013
- Freight for NMG wagons has not been revised since May 2018
- Increase in the number of NMG rakes – from 30 (on 1st April) to 42
- Two-destination loading permitted in NMG rakes
- Export of automobiles permitted
– Traffic to Bangladesh started in NMG rakes
– Traffic to Nepal started, via Nautanva terminal (NER) - 7 new terminals opened for automobile loading
Chitpur (ER); Penukonda (SWR); Nasrala (NR); Nautanva (NER) – for traffic to Nepal; Salchapara, Furkating, & New Tinsukia (all NFR) - 52 railway terminals available for automobile loading
- All private sidings, private freight terminals, and Inland Container Depots can handle automobile loading traffic
A ministry statement outlined the above measures taken in a bid to make rail transport more attractive for automobile manufacturers.
More terminals are being opened up for the automobile industry according to demand. Charodi (WR), Bakshi Ka Talab (NER), Mesra (ECR) are three terminals in progress.
Use of BCACBM rakes for exporting of vehicles is being planned in coordination with Bangladesh Railway. Besides, a new tall auto carrier wagon design using moving dimensions similar to that of the double stacked dwarf container is under development at RDSO, said the Railway Ministry.
Filling Up Increased Line Capacity
A significant amount of line capacity will be commissioned over the next few years. The long-delayed Dedicated Freight Corridor and several capacity enhancement projects are likely to fully online starting FY 2021-22.
Another factor is the unforeseen impact of the COVID-19 pandemic. The nation-wide lockdown and the resulting collapse of freight and passenger revenues has left a gaping hole in the Indian Railways’ finances for FY 2020-21.
While freight revenues are inching back up to normal, the deficit April, May, June and July is likely to leave the Indian Railways with a significant total revenue shortfall at the end of the year. This is not counting the much higher fall in passenger revenues since the lockdown was imposed.
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Officials across the Indian Railways organization have begun pitching rail transport to everyone from big industry to small farmers.
Moving with uncharacteristic speed during the lockdown, Indian Railways also set up Business Development Units at zonal and divisional levels. These units are meant to scout for new opportunities in their areas and convert them into business for the organization.
The ministry has not released data on the performance of these units so far.
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