Lok Sabha Question No. 1711 (UNSTARRED), answered on 2019-02-13
Subject: Share of Railways
Ministry: RAILWAYS
Asked by: ARVIND GANPAT SAWANT

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.1711 TO BE ANSWERED ON 13.02.2019

## SHARE OF RAILWAYS

1711.  SHRI ARVIND SAWANT:

Will the Minister of RAILWAYS be pleased to state:

- (a) the  details  on  the  statistics  related  to  the  share  of  Railways  in cargo transportation from 2007 to 2017;
- (b)     whether there has been a decline in the share of Railways in cargo transportation over the years and if so, the details of the reasons for the same; and
- (c)    whether  the  Government  is  proposing  to  undertake  measures  to encourage  cargo  transportation  through  Railways  and  if  so,  the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

- (a) to (c) A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN REPLY TO PARTS (a) TO (c) OF UNSTARRED  QUESTION  NO.  1711  BY  SHRI  ARVIND  SAWANT  TO  BE ANSWERED  IN  LOK  SABHA  ON  13.02.2019  REGARDING  SHARE  OF RAILWAYS

- (a)  &  (b)  The  total  transport  system  study  carried  out  by  RITES  for  the erstwhile  Planning  Commission  in  2010  had  estimated  that  Railways' share in the inter-regional freight traffic came down from 89% in 1951 to 30% in 2007-08. In passenger traffic also, road was the dominant mode, although  precise  model  shares  were  not  indicated.  Authentic  data  of traffic  from  other  mode  of  transport  mainly  road  is  not  completely available and hence not strictly comparable with rail traffic from 2007 to 2017. The primary reason for decline of Railways' share is growth of the economy, capacity constraints on Indian Railways and growth of the road transport network.
- (c)  Yes,  Madam.  Capital  expenditure  in  Railways'  capacity  enhancement has  been  greatly  scaled  up  over  the  last  four  years.  Average  Capital Expenditure between 2014-15 and 2017-18 (RE) is ₹95132.22 Cr. compared to ₹45979.66 Cr. over 2009-10 to 2013-14. Other measures to attract and increase Railway traffic include:
- i. Liberalised Automatic Freight Rebate scheme for traffic loaded in empty flow  direction,  Long  Term  Tariff  Contracts  (LTTC)  with  key  freight customers,  Station  to  Station  rates  (STS),  withdrawal  of  Dual  freight policy for Iron Ore, discount on loading of bagged consignment in open

and  flat wagons,  rationalisation of coal tariff, withdrawal  of port congestion  charge,  rationalisation  of  Merry-Go-Round  (MGR)  system, reduction  of  minimum  distance  for  charge  from  125  km  to  100  km, distance increased for mini rake from 400 km to 600 km, proliferation of Roll-on Roll-off (RORO) services, de-notification of 44 additional commodities for charging at FAK rates, withdrawal of congestion charge for  stone  traffic  transported  from  Eastern  Railway  to  Bangladesh  via Darsana/ Benapole.

- ii. The methodology for levying Terminal Access Charge (TAC) for handling container trains in railway terminal has been liberalised from 1.5 times to  one  time  in  case  of  double  operation  (i.e.  unloading  followed  by loading), reduces non-freight cost to customer.
- iii. Indian Railways has taken an innovative business decision to transport empty containers and empty flat wagon for private container rakes at a discount  of  25%.  The  move  is  likely  to  give  a  thrust  to  movement  of empty  containers  by  rail  towards  ports  to  return  as  loaded,  thus profiting Indian Railway with higher container share.
- iv. Use  of  extensive  computerization  in  freight  operations  to  improve monitoring  and  to  improve  utilization  of  assets,  deployment  of  higher capacity   locomotives    and  higher  capacity wagons,  improvement   in

maintenance practices of wagons and locomotives resulting in increased availability of rolling stock for traffic, improvement in track and signaling to carry the higher volume of traffic, training staff and officers to adopt the new technology and management practices.

- v. Two Dedicated Freight Corridors (Western & Eastern Dedicated Freight Corridors)  have  been  taken  up  to  create  adequate  capacity,  which  is essential requirement to cater the traffic demand and improve quality of service.

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