CARGO TRANSPORT – ECONOMY

NewsHow cargo transport can be improved

 

Indian Railways Initiatives to improve bulk cargo:

1. Relaxation of rake movement rules: It provides a facility to load from/to multiple locations, permitted mini rakes and introduced private freight terminals (PFTs).

2. Gati Shakti Terminal (GCT) policy: It will lead to all PFTs and private sidings being converted into GCTs. A private siding is a railway line that is owned by a company and is connected to a railway.

3. Partnership with private freight operators: IR has encouraged them to invest in wagons thus helping in the induction of privately-owned wagons to facilitate specialised traffic like automobiles and fly ash.

 

Government measures to improve the cargo transport system:

1. PM Gati Shakti (PMGS) policy for a National Master Plan (NMP): The PMGS aims to bring synergy to create a seamless multi-modal transport network with the NMP employing technology tools for coordinated planning.

2. National Logistics Policy (NLP): The NLP focuses on building a national logistics portal and integrating platforms of various ministries.

3. Integration of postal and railway networks: This integration was happened to bring better logistical solutions to the rural areas.

4. One station – one product: This scheme aims to build each railway station as a promotional hub and showcasing local and indigenous manufacturing products.

5. Introduction of 400 Vande Bharat trains: This Vande Bharath trains will ease the passenger travelling with reduced time.

 

WAY FORWARD:

1. Reducing barriers: Indian Railways should reduce non-price barriers to entry of private players.

2. Developing common-user facilities at cargo aggregation and dispersal points: Especially in mining clusters, industrial clusters and large cities.

3. Collaboration with State governments: The knowledge of these clusters rests with the States, and thus collaboration with State governments is necessary.

4. Transport new commodities as well: For instance, fly ash.

5. Wagon-design reforms: IR should encourage and liberalise the design of new wagons amenable to higher and efficient loading.

6. Parity in environmental regulation: Absence of stringent environmental regulations in road sector has led to some users moving cargo by road. There should be no such disparity in regulation between modes of transport.