ASSIGNMENT

Group 4

Group Members –

Name - Atulya Jauhari Roll No – 2280012

Name – Ayush Srivastava Roll No – 2280013

Name – Balasaheb Rajkumar Sabne Roll No – 2280014

Name – Banani Pal Roll No – 2280015

Question –

In what ways do you think that the amenities available to freight customers
(including those at the goods sheds/stations) on Indian Railways are below the
mark? What should be the order (priority) in which these deficiencies should be
rectified?
Introduction:

The Indian Railways, a significant pillar of India’s logistics sector, has been making
commendable progress in the freight domain. In the fiscal year 2022-23, it achieved an
originating freight loading of 1512 MT, reflecting a growth of approximately 7% over the
previous year. This performance was driven by the transportation of a variety of commodities,
including coal, iron ore, iron & steel, food grains, cement, petroleum products, and fertilizers.

In terms of customer relations, the Indian Railways provides a plethora of facilities. These
encompass customer-centric incentive schemes, scheduled movement of cargo, live tracking
and monitoring of cargo, and professional support. Customers also have the option to invest in
wagons for guaranteed availability and other benefits, and in terminals for a Gati-Shakti
Multimodal Cargo Terminal (GCT). The Indian Railways also emphasizes green and energy-
efficient transportation. Trains generate up to 80% less CO2 and consume 75-90% less energy
for freight traffic than road transport1. To make freight customers aware of how much carbon
emission they have saved by opting to transport by Railways in comparison with road, Indian
Railways have decided to credit Rail Green Points (RGPs) to the customers.

However, despite these advancements, the sector is not without its challenges. Issues such as
erroneous ETAs, manual updates, empty railcar tracking, and primitive systems are prevalent.
The shift away from coal and towards renewable energy has also had an impact on railway
revenue.

As we delve deeper into this topic, we will be discussing these issues in more detail, shedding
light on the complexities of the freight sector within the Indian Railways and the efforts being
made or can be made to address these challenges.
Challenges in Freight Operations:

 Operational Efficiency – Ensuring that freight services run smoothly and on time is a
significant challenge. Delays can occur due to various reasons, including infrastructure
limitations and logistical complexities.
 Suboptimal Infrastructure – Limited infrastructure development at goods sheds and
stations often translates to congested storage areas, outdated handling equipment, and
slow turnaround times. This leads to delays in loading/unloading, demurrage charges,
and increased transportation costs for businesses. Additionally, poor road access to
goods sheds further bottlenecks the entire process, adding to transportation time and
impacting delivery schedules.
 Limited Technology Integration – Limited use of technology for freight tracking and
management results in a lack of transparency for businesses. Customers often face
difficulties in tracking their cargo in real-time, leading to delays in planning and
decision-making. Manual processes for booking, documentation, and billing are not
only time-consuming but also prone to errors.
 Inadequate Security Measures – Inadequate security measures at goods sheds and
stations leave cargo vulnerable to theft, pilferage, and damage. This not only leads to
financial losses for businesses but also disrupts supply chains and damages customer
trust.
 Maintenance and Cleanliness – Subpar maintenance and cleanliness standards at
goods sheds and stations often lead to delays and equipment breakdowns. This disrupts
operations and adds to overall transportation costs. Poor track maintenance can also
lead to delays and damage to cargo.
 Lack of Integrated Connectivity – Often, there is a gap in the first and last mile
connectivity, which means that the freight may not be efficiently transferred from the
origin to the railway system and from the railway system to the final destination.
 Inaccurate Estimated Time of Arrival (ETAs) – Customers require reliable ETAs for
planning and efficiency. However, providing accurate ETAs can be difficult due to the
manual nature of updates and the lack of real-time tracking systems³.
 Reactive Disruption Management – Managing unexpected disruptions such as
weather events and railroad strikes can be challenging and often requires a manual
approach, which can be inefficient³.
  Empty Railcar Tracking – Keeping track of empty railcars and ensuring they are
efficiently used is another challenge that can affect the overall productivity of rail
freight services.
 Environmental Sustainability – As the focus on reducing carbon emissions grows, the
rail freight industry must find ways to operate more sustainably.

Some of Initiatives taken and Policies made by Government:

 Help from NITI Aayog - NITI Aayog, which is a think tank of the Indian government,
has been backing studies that aim to boost the efficiency of rail and its share in freight
transport in India. They're focusing on improving operational efficiency, infrastructure,
and connectivity.
 The National Rail Plan (NRP) 2030 - The Ministry of Railways has come up with the
NRP 2030. This plan is all about providing a long-term vision for expanding the railway
network. The goal is to make the rail network work smoothly with other transport
modes for efficient multimodal transportation.
 PM Gati Shakti Initiative - This initiative has set an ambitious goal to increase rail
freight movement from 27% to 45% by 2030. It also aims to increase freight movement
from 1.2 billion tonnes to a whopping 3.3 billion tonnes by the same year.
 National Logistics Policy - The National Logistics Policy and the creation of
Dedicated Freight Corridors are part of the government's strategy to make the logistics
sector more efficient and tackle the challenges in freight movement. This policy works
hand in hand with the Gati Shakti initiative.
 The Gati-Shakti Multi-Modal Cargo Terminal (GCT) – It is an initiative by the
Indian Railways to boost investment in the development of additional terminals for
handling rail cargos. Launched on December 15, 2021, the GCTs are being developed
by private players and can be constructed on non-Railway land or fully/partially on
Railway land. Till October 19, 2022, 15 GCTs have been commissioned, and around 96
more locations have been provisionally identified for the development of GCTs. The
target is to set up 100 GCTs within the next three financial years. These terminals aim
to enhance the efficiency and effectiveness of freight operations in the Indian Railways.

All these initiatives show the government's dedication to making the railway freight system in
the country more efficient and sustainable.
Ongoing Research Projects to improve Freight Transport:
 SFOORTI - SFOORTI, or Smart Freight Operations Optimisation and Real-Time
Information, is an analytical tool that the Centre for Railway Information Systems
(CRIS) came up with. Its main job is to make planning, allocation, coordination,
monitoring, and analysis of Indian Railways' freight operations better.
 AI in Railway Infrastructure - There's ongoing research on how artificial intelligence
(AI) can be used in railway infrastructure. This research includes creating AI methods
that are specifically designed for different types of railway infrastructure and their
conditions.
 DFCCI - The Dedicated Freight Corridor Corporation of India (DFCCI) is working on
developing freight corridors all over the country. They're using automation technologies
like precision-guided gantries for laying tracks and mechanized signalling and
telecommunications to make operations smoother.
All these efforts are part of a bigger plan by India to modernize its rail freight system and make
it more competitive and efficient.

Prioritisation in which the Deficiencies to be Rectified:

 Operational Efficiency - The first priority should be to improve operational efficiency.
This includes addressing issues related to loading/unloading delays, demurrage
charges, and increased transportation costs.
o Delays in Loading/Unloading: One of the big problems that affect operational
efficiency is the delay in loading and unloading goods. This could be because
there aren't enough people to do the job, the equipment is old, or the processes
aren't efficient. To fix this, the Indian Railways could think about getting
modern equipment for loading/unloading, training their staff better, and making
their processes more efficient.
o Demurrage Charges: Demurrage charges are the fees that customers have to
pay when their goods aren't loaded or unloaded within the free time given. These
charges can make transportation costs go up for businesses. To tackle this issue,
the Indian Railways could look at their demurrage policy again and think about
giving more free time for loading/unloading, especially for certain types of
goods that take more time to handle.
 o High Transportation Costs: When transportation costs are high, rail freight
can become less competitive compared to other ways of transport. These costs
could be because of things like fuel prices, costs to maintain equipment, or
inefficiencies in operations. The Indian Railways could try to bring down these
costs by making fuel use more efficient, taking good care of equipment, and
making operations more efficient.
Improving operational efficiency can directly affect how cost-effective freight
operations are. It can help businesses save money, make rail freight a more competitive
option, and in the end, help the economy grow. It's not an easy task, as freight is the
most profiting sector of Indian railways (Bread & Butter) and reducing the charges will
directly affect the earning but is one of the major factor
 Infrastructure Development - The next priority should be infrastructure development
at goods sheds and stations. This includes addressing issues related to storage areas,
handling equipment, and turnaround times. Well-developed infrastructure is crucial for
efficient freight operations.
o Storage Areas: When storage areas are crowded, it can make handling goods
inefficient and cause delays in loading and unloading. To fix this, we need to
make storage areas at goods sheds and stations bigger. This could mean building
more storage facilities or making better use of the spaces we already have.
o Handling Equipment: If the equipment for handling goods is old, it can slow
down operations and increase the chance of goods getting damaged. If we
switch to modern, automated equipment, we can make loading and unloading
operations faster and safer like containerizing most of the goods thus reducing
the loading and unloading operations way faster.
o Turnaround Times: If turnaround times are slow, it can cause delays and make
costs go up. If we make operations at goods sheds and stations more efficient,
we can reduce turnaround times. This could mean making processes more
streamlined, improving how staff coordinate with each other, and using
technology solutions.
o Road Access: If Road access to goods sheds is poor, it can add to the time it
takes to transport goods and affect delivery schedules. If we improve road
connectivity to goods sheds and stations, it can make the movement of goods to
and from railway stations smoother.
 Connectivity - Improving connectivity to goods sheds and stations should be the next
priority. Poor road access to goods sheds can add to transportation time and impact
delivery schedules. Improved connectivity can facilitate smooth movement of goods to
and from railway stations.
o Road Access: As discussed in previous point if road access to goods sheds is
poor, it can make transportation take longer and affect when deliveries are
scheduled. This is because trucks that are carrying goods to and from the railway
stations might have trouble getting to the goods sheds if the roads are in bad
condition or if there's a lot of traffic. One of the top priorities should be to
improve road connectivity to goods sheds and stations. This could mean making
the existing roads better, building new access roads, or putting traffic
management measures in place to reduce traffic.
o Integration with Other Modes of Transport: For goods to move seamlessly,
it's important that railway stations are well-connected with other ways of
transport like roads, ports, and airports. This makes sure that goods can be
transported to and from railway stations easily, which can reduce how long
transportation takes and cut down costs. In here too containerization can prove
to be really effective solution.
o Digital Connectivity: In the digital age we live in today, connectivity also
means using technology to track and manage freight operations. This includes
using GPS to track where goods are, digital platforms for booking and managing
freight, and communication technologies for coordinating operations. If we
enhance digital connectivity, we can make freight operations more efficient and
transparent.
 Technology Integration - The integration of technology in freight operations should
also be a priority. This includes the use of automation technologies like precision-
guided gantries for track laying and mechanized signalling and telecommunications for
streamlined operations.
o Automation Technologies: Using automation technologies like precision-
guided gantries for track laying can really speed up the process and reduce
mistakes made by humans. Also, mechanized signalling and
telecommunications can make operations run more smoothly and improve
coordination among different parts of the rail network.
 o Digital Platforms: Developing and using digital platforms for booking and
managing freight can make the process easier and more efficient for customers.
It can also give real-time information about where the freight is, which can help
in planning better and making decisions.
o Advanced Tracking Systems: Using advanced tracking systems can give real-
time information about where the goods are and what their status is. This can
help in planning better, reduce uncertainties, and improve customer service.
o Artificial Intelligence and Machine Learning: Using artificial intelligence
(AI) and machine learning (ML) in freight operations can help in predicting
demand, finding the best routes, and improving operational efficiency. It can
also help in predictive maintenance of equipment, which can reduce downtime
and make equipment last longer.
 Policy Reforms - Lastly, policy reforms should be considered to provide more
relaxations and incentives to the customers. This can help in boosting the economy of
the country. And also promote rail as a mode of transport for the customers. As increase
in rail transport compared to other transport directly reduces total fuel consumption,
carbon emissions, etc thus leading to sustainability.