Table of Contents
The Indian Railways and the Carriage of General Cargo: Significance, Features, and Objectives
A cargo train near the Tuticorin Port. | Photo Credit: File Photo
Introduction
This article analyzes the carriage of non-bulk and general cargo by the Indian Railways (IR), focusing on its significance, features, and objectives. It also discusses the current challenges and potential solutions for improving the transportation of general cargo.
Significance of General Cargo
General cargo refers to a diverse range of goods that are transported in smaller quantities and do not require bulk transportation. It includes general goods, domestic containers, parcels, and other miscellaneous items. The efficient carriage of general cargo is crucial for facilitating trade, commerce, and economic development.
Features of Indian Railways’ General Cargo Carriage
The Indian Railways carries general cargo through a combination of passenger trains and special heavy parcel van (VPH) trains. However, there are various challenges affecting the effectiveness of these approaches, including high tariffs, inadequate infrastructure, unreliable transit times, and complex booking processes.
Objectives of Improving General Cargo Carriage
The primary objectives of enhancing the carriage of general cargo by the Indian Railways are:
- To increase the loading capacity and revenue generated from general cargo transportation
- To provide cost-effective and efficient transportation solutions for shippers
- To attract more shippers and buyers of general cargo to choose railways as their preferred mode of transportation
- To optimize pay load and speed through the development of new rolling stock and infrastructure
Effects of Current Challenges
The current challenges in the carriage of general cargo by the Indian Railways have led to a decline in parcel trains and underutilization of containerization. These challenges result in higher costs for shippers, limited market development, and missed opportunities for revenue generation by the railways.
Potential Solutions and Pros
There are several potential solutions to improve the transportation of general cargo:
- Discontinuing the use of VPH parcel trains in favor of more efficient covered wagon types
- Offering lower tariffs and simplified booking mechanisms to attract more shippers
- Allowing individual wagon bookings and running trains even with partial loads
- Modifying freight tariff rules to accommodate different types and quantities of cargo
- Encouraging the development of cargo aggregators and optimizing payload and speed
These solutions have the potential to increase revenue, improve efficiency, and meet the diverse needs of shippers and buyers of general cargo.
Cons and Limitations
While the proposed solutions have various benefits, some potential cons and limitations include:
- Possible financial losses during the initial phase of market development
- Risk of predatory pricing by other container train operators
- The need for policy changes and modifications in freight tariff rules
- Challenges in developing and maintaining a developed market for general cargo
Fun Fact: Indian Railways and General Cargo
The Indian Railways is one of the largest railway networks in the world, covering vast distances and connecting thousands of destinations. Despite its extensive infrastructure, the carriage of general cargo has not yet reached its projected potential. With the implementation of innovative strategies and improved services, the Indian Railways has the potential to significantly increase the transportation of general cargo in the coming years.
Sudhanshu Mani is the leader of the Vande Bharat project and an independent rail consultant. M. Ravibabu is a founding member of Anekdhara, a public policy portal.
Mutiple Choice Questions
1. What was the total earnings of Indian Railways from the carriage of general cargo in 2018-19?
a) ₹8,247 crore
b) ₹5,339 crore
c) ₹12,584 crore
d) ₹3,384 crore
Explanation: In 2018-19, the Indian Railways earned a total of ₹8,247 crore from the carriage of general cargo.
2. According to a RITES study in 2008, what was the projected general cargo loading for the Indian Railways for the next ten years?
a) Between 194 to 292 MT
b) Between 100 to 150 MT
c) Between 500 to 600 MT
d) Between 50 to 100 MT
Explanation: According to a RITES study in 2008, the projected general cargo loading for the Indian Railways for the next ten years was between 194 to 292 MT.
3. What are the two approaches currently used by the Indian Railways to move general cargo?
a) Passenger trains and parcel vans
b) Freight trains and container trains
c) Heavy parcel vans and truck transport
d) Special heavy parcel van (VPH) trains and premium scale rates
Explanation: The two approaches currently used by the Indian Railways to move general cargo are passenger trains and special heavy parcel van (VPH) trains.
4. Why has there been a decline in the parcel segment of general cargo?
a) High tariff rates
b) Improper terminals
c) Inconsistent weighbridges
d) All of the above
Explanation: The decline in the parcel segment of general cargo can be attributed to reasons such as high tariff rates, improper terminals, inconsistent weighbridges, and other factors mentioned in the passage.
5. What is the suggested alternative to VPH parcel trains for carrying general cargo?
a) Covered Bogie Wagon Type with Air Brake and Heavy Load (BCNHL)
b) Freight trains
c) Truck transport
d) Premium scale rates
Explanation: The suggested alternative to VPH parcel trains for carrying general cargo is a Covered Bogie Wagon Type with Air Brake and Heavy Load (BCNHL), which can carry 700% more cargo with 45% more volume.
6. How much domestic cargo moved by containers as a percentage of the Indian Railways’ loading?
a) 0.3%
b) 1%
c) 5%
d) 10%
Explanation: Only 0.3% of the Indian Railways’ loading is domestic cargo moved by containers.
7. What is the main issue faced by shippers for the carriage of general cargo by the Indian Railways?
a) Lack of service to meet their needs
b) High haulage rates
c) Risk of losses involved
d) Predatory pricing by other container train operators
Explanation: The main issue faced by shippers for the carriage of general cargo by the Indian Railways is that it lacks a service to meet their needs.
8. What are the three categories into which general cargo is segmented?
a) Highly time sensitive (HTSG), medium time sensitive (MTSG), and low time sensitive (LTSG)
b) Domestic cargo, international cargo, and perishable cargo
c) Bulk cargo, containerized cargo, and non-bulk cargo
d) Premium scale rates, Rajdhani rates, and truck rates
Explanation: General cargo is segmented into three categories — highly time sensitive (HTSG), medium time sensitive (MTSG), and low time sensitive (LTSG).
9. How can the Indian Railways attract shippers to use their freight rates for moving price-sensitive cargo?
a) By permitting shippers to book individual wagons
b) By reducing the freight rates
c) By adding freight of any kind (FAK) to the tariff table
d) All of the above
Explanation: The Indian Railways can attract shippers to use their freight rates for moving price-sensitive cargo by permitting shippers to book individual wagons, reducing the freight rates, and adding freight of any kind (FAK) to the tariff table.
10. What does the IR need to encourage in order to optimize payload and speed for the carriage of general cargo?
a) Cargo aggregators
b) More freight forwarders
c) Rajdhani express trains
d) Sleeper coaches
Explanation: The IR needs to encourage cargo aggregators in order to optimize payload and speed for the carriage of general cargo.
Brief Summary | UPSC – IAS
The Indian Railways (IR) has been facing challenges in the carriage of non-bulk and general cargo. In 2018-19, the IR loaded 62 million tonnes of general cargo, which fell short of a projected target of 194 to 292 million tonnes. The decline in the parcel segment can be attributed to high tariffs, improper terminals, and unreliable transit times. The use of heavy parcel vans (VPH) trains has been counterproductive, and a better alternative would be matching covered wagons. Private container train operators have also failed to boost general cargo movement due to high haulage rates and market risks. To improve the situation, the IR should focus on segmenting general cargo, permitting the booking of individual wagons, and incentivizing volumetric loading.