Revitalizing India's Rail Freight

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Empowering India’s Logistics Network // UI UX Design

Revitalizing India's
Rail Freight
Due to India’s growing economy , developing a robust & efficient logistics sector
is the need of the hour to facilitate seamless connectivity and cost-effective
goods transportation .

Maulika Agarwal Pranjal Kaushik

About
RAILWAY logistics
Indian Railway Logistics is vital to India’s transportation, efficiently moving goods across
67,000+ km. Connecting industrial hubs, ports, and rural areas, it supports economic growth
by handling diverse cargo like coal, iron ore, and agriculture. Modern freight corridors,
terminals, and digital advancements enhance speed, capacity, and reliability, making it the
backbone of India’s supply chain.

the key indian railway


problems in logistics sector
Capacity Constraints Aging Infrastructure Slow Modernization
Overcrowded rail lines and Outdated tracks, terminals, and Limited implementation of
inadequate infrastructure lead to rolling stock require digital systems and automation
delays and inefficiencies. modernization. affects operational efficiency

Freight Competition High Dependence on Environmental


Increasing competition from road Bulk Cargo Concerns
transport due to flexibility and
Reliance on coal and other bulk Challenges in adopting greener
last-mile connectivity.
commodities limits diversification technologies to reduce carbon
of freight revenue. emissions.

Need for research


India's logistics sector is crucial for economic contributing only 27% to total freight traffic.
competitiveness, but its high cost—13–14% So , the need for this research is to identify
of GDP—hinders global trade opportunities. the challenges hindering rail freight's
Rail freight, being more economical and growth.
environmentally sustainable, is underutilized

introduction
Rail freight is 30–40% cheaper than road To address these issues, the Government of India By analyzing inefficiencies, global
transport for bulk goods and produces 70% introduced initiatives like the National Logistics practices, and government
fewer carbon emissions. However, its Policy (NLP), PM Gati Shakti Programme, and ULIP. policies, this study will provide
potential is limited by inefficiencies, outdated These aim to streamline operations, integrate actionable recommendations to
infrastructure, and disorganized policies, multimodal networks, and reduce logistics costs by unlock rail freight’s potential and
particularly in scheduling systems, terminal 3–4% of GDP. The Dedicated Freight Corridors align it with India’s economic and
facilities, and multimodal connectivity.

(DFCs) are also quite critical to this transformation. sustainability goals.

objectives

To learn about the


To understand what
To understand the schemes like NLP, PM
challenges and gaps To get insights and
structure of current Gati Shakti & ULIP and
are currently recommendations
railway freight what are their roles
stopping the growth for improving the rail
network, operations in overcoming
of Indian railway freight sector.
and policies in India freight problems in
freight system
Railways.

literature review
Integrative Review Critical Analysis Thematic Bridging Issue Identification

Infrastructure Development & DFCs Operational Inefficiencies

Eastern DFC completed ( 0 2 23); streamlined coal and steel Low wagon utilization (<70%) due to outdated scheduling and
transit.

loading systems.

Western DFC (93% complete) connects Dadri to JNPT; critical Limited focus on containerization for high-value goods.

for exports.

Solution: Adopt technologies like blockchain for transparency and


Issues: Poor multimodal integration and inefficient loading/ optimization.
unloading facilities.
Sharma & Gupta 2023 Mishra et al. (2020), Patil & Singh, 2021

Policy Constraints Sustainability & Environmental Impact

Complex regulations, tariff imbalances, and bureaucratic Rail emits 70% less carbon than road; potential to reduce emissions
delays hinder growth.

by 20M tonnes annually.

Freight costs subsidized for passenger transport; discourages Global examples:

private investment.

Germany: Green Freight Programme (renewable energy).

U.S. success shows private involvement can modernize China: Electrified rail networks for sustainability.
infrastructure.
Mehta, 2022 Jain & Srivastava, 2020

Digital Integration & ULIP Global Best Practices

ULIP integrates freight systems across ministries for real-time China: High-speed freight corridors with real-time tracking.

tracking and route optimization.

Germany: Focus on sustainability and multimodal integration.

Challenges: Cybersecurity risks and data standardization.


(Gupta & Mehta, 2023) U.S.: Private sector investments improve efficiency and reliability.
(Smith & Carter, 2022)

GAPS IN FREIGHT SYSTEM


Policy Interventions
Terminal Infrastructure: Lack of integrated multimodal hubs.

Expanding DFC connectivity to Tier II & Tier III cities to enhance


Private Participation: High barriers and regulatory constraints.

inclusivity.

Competitiveness: Rail freight less reliable than road transport. Introducing dynamic pricing models to cater to diverse cargo types.

Patel (2023)
Strengthening Public-Private Partnerships (PPP) to attract investment
and improve service quality.

Utilization rate of Cargo Wagons in Passenger Train


Movement of Bulk Commodities by Indian Railways (Million Tonnes)

Source: Indian Railway Yearbook Source: Indian Railway Yearbook

rESEARCH
METHODOLOGY
Our research paper adopts the structure of an integrative review, leveraging
a wealth of available data to provide a comprehensive synthesis.
Consequently, this study follows a qualitative approach, with a strong
reliance on secondary data to ensure depth and reliability.

Research Design
The study focuses primarily on understanding the literature and doing a
thorough review of existing data, reports and case studies.

Secondary data Information sources

collection Reports from the ministry of Railway.

World Banks & NITI aayog.

Information sources Policy guidelines for National Logistics Policy (NLP) &
PM Gati Shakti Programme.

We have taken insights from existing interviews that


have been already done, which also had round table Academic journals, books & articles related to India’s
discussions involving logistics experts and major Rail Freight sector.

stakeholders of industry.
Globally available case studies from USA, Germany &
China.

Analytical
Approach Policy Alignment
The alignment of current rail freight policies helped
us in exploring national goals, while keeping our
Comparative Analysis focus on sustainability, cost reduction and how it can
be digitally integrated.
By comparing the Indian freight system with existing
globally available practices we have been able to
analyze the situation that will require improvement.
And by this process we are able to understand where
the Indian freight system currently stands in global
rankings.

"While rail freight has the potential to significantly reduce logistics costs, the unreliable
scheduling and delays in goods delivery discourage private investment. Freight needs to be
more predictable to meet the demands of businesses."

Interview of Mr. Abhishek Sharma, Senior VP of Supply Chain Operations at DHL India, and
Ms. Geeta Reddy, President of the Federation of Indian Chambers of Commerce & Industry
(FICCI) Logistics Wing, conducted in February 2023.

Mr. abhishek sharma


Senior VP, DHL India

"Switching freight from road to rail reduces carbon emissions by up to 70 %. However, India needs
to focus on electrification and the use of energy-efficient locomotives to enhance the
environmental benefits of rail transport."

Mr. Sunil Khurana, Sustainability Expert at Green Freight Network, and Dr. Priya
Interview of
Singh, Manager at Eco-Transport India, conducted in July 2023.

Dr. Priya Singh


Manager at Eco-Transport India

rEcommendations
Development of a Rail Freight-Specific ULIP App:
To improve the efficiency, framework. This will enhance the integration of
transparency, and management multimodal logistics and tackle key inefficiencies
of rail freight, we recommend in the rail sector.
creating a dedicated rail freight-
specific interface under the ULIP

K ey Features of the Proposed Rail Freight-Specific ULIP

Real-Time Rail Freight Tracking Freight Terminal Management


Live updates on train movement, cargo status, Slot booking for loading/unloading facilities to streamline
and estimated arrival times.

terminal operations.

AI-driven route optimization to minimize Real-time monitoring of terminal capacity, equipment


congestion and delays. availability, and multimodal connectivity.

Wagon Utilization Tracker Performance Analytics and Reporting


Tools to monitor wagon utilization rates to Interactive dashboards with insights on transit delays,
reduce idle time and optimize asset use.

cost savings, and congestion hotspots.

Performance metrics to identify Reports for stakeholders to enhance decision-making


underperforming routes and assets. and logistics planning.

U ser-Friendly Interface Rail-specific ulip


Designed for freight operators, logistics service By implementing a rail-specific ULIP This technological intervention
providers, and government stakeholders.

app, stakeholders can achieve real- aligns with India’s National Logistics
time visibility, reduce inefficiencies, Policy goals and PM Gati Shakti
Easy access to digital documents, clearances, and improve coordination across initiatives, making rail freight more
and freight-related updates. the rail freight ecosystem. competitive and sustainable.

STATIONS
FREIGHT BOOKING

Conclusion
India’s rail freight system has the potential to A key recommendation is the development of a
become the backbone of the nation’s rail freight-specific Unified Logistics Interface
logistics sector with targeted interventions Platform (ULIP) app, enabling multimodal
and strategic planning. This transformation integration, real-time freight tracking, and
can strengthen domestic trade, enhance optimized terminal operations. By leveraging such
global competitiveness, and boost economic technology, stakeholders can achieve greater
resilience and sustainability.
transparency, coordination, and cost efficiency.

A collaborative approach involving policymakers, industry stakeholders, and logistics providers is


critical. Initiatives like Dedicated Freight Corridors (DFCs) and global best practices can help align rail
freight with India’s economic and environmental goals.

future scope
Sustainability Innovations U ser-Centric Research
Researching renewable energy adoption in rail Conducting behavioral studies to understand the
freight, such as electrification of freight adoption rate and usability of proposed digital tools, such
corridors and integration of solar-powered as the ULIP app, among various user groups.
systems.

Evaluating the potential of green logistics


practices, including carbon credits and
incentives for sustainable freight solutions.

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