Trade Analytics

Freight- An attractive opportunity

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Freight- An attractive opportunity

  • Major source of revenue for Indian Railways
  • Accounts for almost two third of Railway revenues
  • Traffic rose by 4.12 per cent in FY13
  • Targeted market share of 50 per cent by 2030

Freight- An attractive opportunity


Freight is a profit making business segment of Indian Railways and is the backbone of railway revenues. Indian Railways have carried 1009.73 million tonnes (MT) of revenue earning freight traffic during FY13. The freight carried shows an increase of 39.95 MT over the freight traffic of 969.78 MT actually carried during the corresponding period last year, registering a growth of 4.12 per cent.

The recent growth in freight loading due to more intensive asset utilisation and adoption of market responsive strategies has brought into focus its long term sustainability. With rapid economic growth and increasing industrialisation, freight traffic is expected to grow rapidly over the medium to long term. It is expected to touch 1,405 million metric tonnes (MMT) by FY17.

The government is investing heavily in building rail infrastructure in the country. It plans to invest US$ 153 billion during the 12th Five Year Plan.

Source: http://www.indianrail.gov.in/

Updated: August, 2013

Railways
Railways is aiming at $500 billion investment in next 10-12 years to increase capacity in anticipation of faster economic growth.