Indian Railways: Scenario of Freight Business Supply Chain

Welcome Readers & member of eBusiness Community in the blog post of ‘Indian Railway: Scenario of Freight Business Supply Chain’. Let’s explore Freight Business of Indian Railways, its transportation network assets, advantages over road transport, Challenges resolve by Freight Marketing Policies and so on.
Freight Business of Indian Railways
As we all know India Railways is the fourth largest rail network in the world. Due to Connecting India railway is consider as the backbone of the Indian economy. Indian Railways moving billions of people via its 119630 kilometers of track, 11122 locomotives, 70241 coaches, and 251256 wagons with 1.33 million workers organized into 17 zones and 68 divisions. Almost 3,200 freight terminals around the nation support the freight traffic on IR. These days, IR has approved 48 Gati Shakti Multimodal Cargo Terminals (GCT), 72 private terminals, 1,086 sidings, and 2,001 goods sheds. In contrast to other forms of transportation however Indian Railways’ freight business is currently moving towards a low-carbon future despite long-distance and large parcel shipping.
Indian Railways Transportation Assets
Locomotives
Locomotives manufacturing unit of Indian railways are Diesel Locomotive Works, Varanasi and for electric locomotives at Chittaranjan.
Wagons Rolling stock
Wagons are from manufacturers in public and private sector and in house manufacturing in designated railway workshops those are as follows:-
Open Wagon
BOXN, BOXNHS, BOXNHL, BOXNHA, BOXNCR, BOXNEL, BOXNS, BOXNLW, BOST, BOST, BOXNLW
Covered Wagon
BCX, BCXN, BCN, BCNA, BCNAHS, BCNHL
Flat Wagon
BRN, BRNHS BRNA, BFR, BRH, BRS, BFK, BFKI, BFNS,
Hopper Wagon
BOBYN, BOBRN, BOBRNHS, BCFC, BRNAHSM1, BOBRNAL, BOBSN
Brake Van Wagon
BVZI, BVZC, BVCM
Tank Wagon
BTPN, BTPGLN, BTFLN
Container Wagon
BLC/BLL
Special Purpose Wagon
NMG, NMGHS, BCACBM, BOM, BWT & Others
NMG wagons are New Modified Goods wagon converted from old passenger rolling stocks.
Conventional Dry Cargo Containers from CONCORE
20/40 ft. conventional end open containers, High Cube containers
20 ft Side Access Containers
22 ft/High Cube Domestic Containers
Specialty Containers
20 ft/40 ft/ 40ft High Cube Refrigerated Containers, Collapsible Flat Rack and Platform Containers, Open Top Containers
20 ft Tank Containers
Commodity transported from these rolling stock are as follows:-
Coal -the biggest commodity (48%) railway transports in spite of other commodities you can transport from railways like Cement and clinker, Coal & coke, Minerals & ores, Food grains, flours & pulses, Cement & clinker, Chemical manures, Iron & steel, Petroleum products & gases, Container service, Automobile, Sugar, salt, spices, oils, Pig, sponge, wrought iron, Stone/bamboo chips, granite and more.
Advantages Transport by Indian Railways over Road Transportation
Firstly Rail transportation is Cost-effective in Fuel Costs & in rates also as it is very cheaper for you than road ways. It is not only environmentally friendly, high carrying capacity, reliable & safe. It reduced traffic congestion as always seen on road ways, Flexible, Energy-efficient, Job creator but Green Energy-efficient Transportation also.
Initiatives by Indian Railways for Freight Business
You should be aware that Indian Railways appears to be adopting a Hungry for Cargo mentality these days. To address deficiencies in freight train operations, such as inadequate terminal facilities and problems with wagon design, IR implementing the following recommendations to enhance business ease. It appears to be sharing costs for terminal development, paying close attention to junction station restrictions, carefully relook rationalization orders, concentrating on freight terminals, and investigating mechanized handling opportunities.
Additionally Indian Railways appears to be involved in the following initiatives
Firstly Infrastructure development-related secondly policy-related, and thirdly operator-based system for goods handling.
Infrastructure development by Indian Railway for Loading targets and loading potential
Lightweight aluminum wagons/ Freight Rake Indian Railways First Aluminum Freight Rake is BOBRNALHSM1.
This single rake can save over 14,500 tones of carbon dioxide over its lifetime.
Track renewal Track and Bridges
Concept of Smart Yard Development- Gandhidham, Hapa, Karchia, Sambhupura as per DPR of RITES
Installation of Weigh bridges
Installation of Weigh bridges to avoid overloading of wagons beyond enhanced limits as there is adverse impacts of enhanced loading on rail tracks and wagons as well as have to impose Speed Restriction.
Wheel Impact Load Detector (WILD)
Detect overloading of track and bridges and working of Wheel
Acoustic Bearing Detectors (ABD)
Monitor roller bearings of different types & detect internal defects related to cup, cone or rollers.
Hot Box Detectors
It is use to check axle, wheel, brake temperatures to avoid overheating that cause of derailment.
RFID readers
RFID tags on automobile wagons ineffective for tracking purposes
Indian Railways software for freight business
Freight Operations Information System (FOIS)
Electronic Registration of demand for wagons (e-RD)
Electronic transmission of Railway Receipt (eT-RR)
Terminal Management System (TMS)
Control Office Application (COA)
Freight Business Development (FBD) portal- Online Interface of Freight Customers
BDU portal
By all means Freight Class & rates, position of indent/demand for each station, outstanding indent, shortest/popular routes, terminal handling facility, freight calculator, facility to track and trace rakes & Electronic Payment System
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Indian Railways Freight Marketing Policies
Private Freight Terminal (PFT) policy
The aim of the policy is to attract private investment in setting up of freight terminals when ever major freight terminals across IR that handle more than 30 rakes every month were deficient in basic facilities.
Wagon Leasing Scheme (WLS)
The aim of the policy is to ‘develop strong leasing market by encouraging third party leasing of wagons.
Liberalized Wagon Investment Scheme (LWIS)
It is Own You Wagon scheme. It allows private players to invest to procure special purpose wagons and high capacity wagons to operate on specific routes/circuits therefore this type of wagon not involve in railways wagon pool.
General Purpose Wagon Investment Scheme (GPWIS)
Invites investment in manufacturing wagons like BOX, BCN, and BOXN etc. IR has not covered special purpose wagons under this scheme.
Special Freight Train Operator (SFTO) policy
Aims to provide opportunity to private operators to offer rail services through owned rakes
Special Parcel Train Operator (SPTO) scheme
The policy allows private parties to procure rolling stock, including general service parcel vans, refrigerated vans, etc., and operate it as special parcel trains.
Automobile Freight Train Operator (AFTO) policy
This policy gives private logistics firms and carriers the chance to operate freight trains serving the auto industry. As long as the operator satisfies the requirements established by IR’s Research Design and Standard Organization (RDSO), new, higher capacity wagons may be introduced. In general with varying carrying capacities, AFTOs use rakes of the NMG and BCACBM types.
BCACBM rakes can hold about 300 vehicles, NMG rakes can hold 125 compact cars.
If traffic volume present, introduction of Sports utility vehicles (SUVs) on the lower deck and sedans/compact cars on the upper deck is possible.
Creation of the Vehicle & Ancillary Hub:
The policy’s objective is to give automakers the chance to use rail for bulk transportation and secondary distribution to consumer centers within the hubs’ to vehicle logistics from beginning to end.
Long-term Tariff Contract (LTTC) scheme
This scheme give freight rate stability to customers.
Comprehensive Parcel Leasing Policy (CPLP)
The objective is to increase private/lease holder participation in carrying parcels by Indian Railways.
Parcel Cargo Express Train (PCET) policy
It set out the set of rules for the operation of leased trains for parcel movement.
JPP-RCS joint parcel product-rapid cargo service parcel vans (VPHs/VPs/VPUs) on round trip basis by long distance mail/express trains is also in existence.
Development of rail-side warehouses
For door-to-door transportation IR and Central Warehousing Corporation (CWC) develop pilot project at Whitefield satellite goods terminal at Bangalore.
Privately owned Container Handling Terminals- It is Own Your Terminal Scheme.
Container Train Operator (CTO) of Indian Railways
It’s a Private Container Operators who can run their private freight train in railway infrastructure and network their own terminal to terminal.
Some of the major CTOs are as follows:-
Adani Logistics- Operated Terminals- JNPT, NSICT, GTI- Category I
Arshyia Rail Infrastructure Ltd – Operated Terminals- MILK (KLMG)- Category I
Boxtrans Logistics (India) Services Pvt.Ltd – Operated Terminals- PNCS- Category III
Container Rail Road Services Pvt Ltd- Operated Terminals- JNPT, NSICT, GTI- Category I
India Infrastructure & Logistics Pvt Ltd – Operated Terminals- JNPT, NSICT, GTI, MILK (KLMG) – Category I
KRIBHKO Infrastructure Ltd. – Operated Terminals- B 2 B MILK, Kalamboli. JSLE(Holding line) – Category I
Pipavav Rail Corporation Ltd. – Operated Terminals- Category III
Reliance Infrastructure Engineers Pvt. Ltd – Operated Terminals- Category I
South India Corporation (Agencies) Ltd. – Operated Terminals- Category I
Trans Rail Logistics Ltd. – Operated Terminals- CRTK (Turbhe), MILK (KLMG)- Category IV
Container Corporation of India Ltd. – Operated Terminals- JNPT, NSCIT, GTI, DRTA, CDSN, CRTK (Turbhe), CRCC, CRMM, ACDA, ICBD – Category I
Central Warehousing Corporation ETA Engineering Pvt. Ltd. – Operated Terminals- JNPT, NSCIT, GTI, CWC
Gateway Rail freight Ltd. Hind Terminal Pvt Ltd – Operated Terminals- JNPT, NSICT, GTI- Category I
Innovative B2B Logistics Solution Pvt. Ltd. – Operated Terminals- MILK, CWC, (KLMG)-IV
Fourcee Infrastructure Equipment Pvt. Ltd. – Operated Terminals- B2B MILK, Butibori- Category III
Vikram Logistic & Maritime Services Pvt. Ltd -JNPT, PCS
Hind Terminal Pvt. Ltd – JNPT, NSICT, GTI, CWC
Distribution Logistics Infrastructure Pvt Ltd – B2B MILK, Kalamboli.
Liberalized Special Freight Train Operators (LSFTO)
With this policy the manufacturer or logistics service provider can hire other manufacturers or providers to move their cargo and invest in specially designed wagons so that able to handle unique kinds of commodities.
Terminal Incentive cum Engine on Load Scheme (TIELS)
For loading and unloading operations at sidings or goods shed, train engine waits on the Railway’s account to work the train as soon as the loading and unloading is finished.
Freight Forwarder Scheme (FFS)
Under the Freight Forwarder Scheme, there is only one aggregator from Kishanganj that serves as a host.
The objective of FFS is to increase the IR’s commodity basket by facilitating the gathering and railroad transportation of BOGs.
Roll-on roll-off (RoRo)
This service helps to prevent traffic jams and preserve the door-to-door convenience offered by the road sector while also conserving fuel for main-haul carriage.
Liberalization of siding rules
Railway-won siding such as departmental sidings, public siding supplied by the railroads, assisted siding serving an industrial unit for which the railroads and the siding owner split the capital cost, and military siding where traffic is only permitted due to defense. The goal of this plan is to develop these siding.
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Gati-Shakti Multimodal Cargo Terminal (GCT)
Gati-Shakti Multimodal Cargo Terminals will serve as hubs for the seamless integration of various modes of transportation with the rail system. Partners in private logistics will establish GCT. It will increase in terminal capacity through conversion of private sidings to PFTs (private freight terminals) and public-private participation. This Gati Shakti Multi-Modal Cargo Terminal (GCT) policy will cover Private Siding or Private Freight Terminal policies.
The 15 Gati Shakti Cargo Terminals zone wise commissioned so far that’s are:
SER- GCT NAME – Jai Balaji Industries – Barajamda – SERVING STATION -Barbil
SER – OMPL (Orissa Metalliks) – Gokulpur
ECoR – Paradip East Quay Coal Terminal Pvt Ltd – PRDP
ER – Maithon Power Ltd Siding – Thaparnagar
SCR- IOCL – Nakkanadoddi/GTL
NER- Hindustan Urvark Rasayan Ltd- Nakha Jungle
WR- CONCOR- Varanama
NFR- IOCL (IOMB)- Moinarband
NWR – Nayara Energy Ltd- Kairla(JU)
SCR- SCCL- Sattupalli
SWR- HPCL- Shivadi (SZV)
NER- Ankur Udyog Ltd- Sahjanwa
NER- Adani Agri- Jasoda/IZT
NFR- FCI Siding – Cinnamara
ER- Punjab State Power Corp. Ltd.- Pakur
Capacity enhancement of Facilities in freight terminals of Indian Railway steps
For a customer logistic services require freight terminal facilities like direct reception and dispatch areas; all weather-paved or cemented approach roads to facilitate rake placement and removal in a timely manner; and amenities like covered sheds, mechanical equipment, and weighments to improve the caliber and speed of loading and unloading operations. In order to create a service market at rail terminals, IR is currently initiating cargo aggregation services. These facilities include Aggregator, Truker, Warehouse and labor to provide customized services like door-to-door, station-to-station, train station-to-door, and door-to-train station.
Dedicated Freight Corridors
IR point out high density network routes that are six of the Golden Quadrilateral routes (New Delhi, Mumbai, Chennai, and Howrah), as well as their diagonals and additional feeder routes, throughout the railway network that provided timetabled freight business services. DFCCIL was established in October 2006 to plan the North South, East Coast, and East-West DFC corridors.
Eastern Corridor – EDFC
East – West Corridor- The 1,856 km Eastern Dedicated Freight Corridor (EDFC) is being developed between Ludhiana in Punjab to Dankuni in West Bengal
Western Corridor – WDFC
The 1,520 km Western Dedicated Freight Corridor.
The route is from JNPT and the ports of Mumbai, Pipavav, Mundra, and Kandla.
Hub and Spoke Services
Container Corporation of India (CONCORE) is railways undertaking company for container carrier, Terminal and CFS Operator which have 7ICD, 64 terminal of which 4 Exim container depot.
Tughlakabad Concore ICD is one major terminal serving as as hub for terminals for Ludhiana, Moradabad, Panipat etc
Dadari Concore ICD serving as as hub for terminals for SIDCUL, Panthnagar, ICD Agra.
Khatuwas Concore ICD serving as as hub for terminals in between Northern India & Western ports of Mundra/Pipavav for double stack container.
In short, rail freight is expected to capture road traffic through infrastructure reforms such as DFCs, industrial corridors, Golden Quadrilateral routes, cargo terminals, multi-modal parks, 100% electrification, multi-tracking on congested routes, and speed enhancements.
Challenges resolve by Indian Railways Freight Business by their initiative
Decline in delays by provision of adequate infrastructure that are due to sharing of lines by passenger and freight trains have resulted in significant shift of traffic from rail to road
Line capacity
Majority of the Zonal Railways are in the range of optimal and higher than optimal utilisation of line capacity. Due to infrastructural development there is proper utilization of line capacity.
Terminal infrastructure and operation
Mechanized loading/unloading facility to decline additional costs in handling of goods at terminals. Minimize restrictions for loading by to overcome unloading issues arise from labor. Minimize terminal detention time by improving efficient terminal operations so that there will be no pending indent remain in terminals.
To improve Wagon turnaround time
Wagon utilization as well as track proper utilization
Price competitiveness of IR with road transport
IR looking for competitive freight charges so that freight do not moved away from railways.
Minimize of Stabling of rakes in enroute
Previous years rakes become stable at different places as a result of insufficient powering, a blocked path, and ineffective crew management, which has a negative impact on freight operations. As a result, freight trains experience 45–50% slower speeds due to stabling and detention while traveling. Additionally, freight trains are delayed for up to 6 hours at junction stations because of passenger traffic.
Follow Interchange commitments and other agreements by other zonal railways during the train operations.
Work proper Rationalisation orders
Rationalisation can be explained as re-routing of freight traffic on the shortest route to a different route in order to avoid the over-utilized line sections.
Provide adequate wagon supply, minimize design issues, and proper cost of wagons and decline of transit time
Piecemeal cargo Transportation
Railways seems to be transportation of bulk cargo. But for Piecemeal freight IR initiate two-point / multi-point services.
Expansion of enhanced Close Circuit routes for CC rakes in zonal railways.
We like to state to enhance the “leads” of Indian Railways freight business price, transit times, wagon availability, service dependability, information flow consistency, physical and financial flows prior to and following services, or the PAPD (Pre-Arrival Post-Departure process), safety is necessary.
However, for this certain difficulties such as Coastal shipping, private port expansion, and port-led development are there. The “product” and “service” expectation from railways for the automotive industry segments and the fast-moving consumer goods (FMCG) sector must be sufficient to satisfy market demands.
Call to action
Indian Railways Freight Marketing
In order to prioritize connecting the Railways with Industry and Trade, it is necessary to investigate the potential of drawing in more freight traffic. Railway authorities seems to appear to be taking a “take it or leave it” approach when it comes to freight transportation. All operations should be conducted with a customer-centric mind set and a “Freight on Priority” policy.
Traffic on-demand marketing strategy is necessary to increase the freight market share. Hold regular conversations with the stakeholders to learn about their needs for rakes during peak and off-peak seasons whenever rakes are in transit, information flow and consignment tracking gives good psychological experience to customer.
Conclusion
Not to mention, Indian Railway is preparing for the future. India’s railway network spans the entire country and acts as an invisible thread. Indian Railways is a dependable option for long-distance delivery of bulky packages or cargo. Railways’ dedication to enhancing their services draws in new clients who have never transported by rail before. Continue Reading! I’m grateful.