Page 18 - IMDR JOURNAL 22-23

IMDR’s Journal of Management Development and Research 2022-23

increased from 8% to 15%, and, most importantly, the percentage of freight transported by rail be
increased to 50% to achieve the ideal modal mix.

Railways undercut themselves in the freight market by cross-subsidizing passenger travel, but
outdated practices like exchange yards for large industrial projects and expensive construction and
operation costs for private sidings drive up overall costs for rail freight customers. The railroads have
lost the majority of the high-value, low-density goods. The enormous potential for containerizing
domestic cargo offers the industry chances for exponential growth, but it also presents a challenge for
the railroads to set up the necessary line-haul capacity, terminal facilities, suitable tariff structure,
and supportive environment for intermodal development.

The basis of the railways' freight strategy is the development of high-volume, high-speed freight
corridors, calibrating the services to generate a sufficient number of wagons or containers
transporting general goods in fragmented train loads, in collaboration with other operators. The rail
freight service would need to provide brief, swift, dependable, and adaptable trains that operate in
hub-and-spoke networks to live up to customer expectations. A standardized pallet, similar to
airline ULDs, will make it easier to transport ordinary goods by road or rail in pieces.

Some of the recommendations made by the National Transport Policy Development Committee are
indeed relevant for the development of an institutional framework conducive to the optimal growth
of the transport sector, such as (a) a unitary transport ministry for the coordinated development of
the rail, road, shipping, and aviation sectors; and (b) an effective regulatory mechanism to safeguard
stakeholders' interests, including investors, operators, and consumers. Because road transport is a
'concurrent' subject in the Constitution, and there is no provision for 'intermodal/multimodal
transport' in the list, appropriate legislation to cover all aspects of logistics, as well as taxation parity
between various modes, may be required.

Gati Shakti Express Cargo Service:

India Post and the Indian Railways have teamed together to offer a door-to-door collection and
delivery service for parcels weighing more than 35 kg. The new "Rail Post Gati Shakti Express
Cargo Service" seeks to streamline the logistical process for people planning to transfer houses in
India. Presently, the service is provided in four sectors: Delhi to Kolkata, Bangalore to Guwahati,
Surat to Muzaffarpur, and Hyderabad to Hazrat Nizamuddin. But, the first stage will eventually
cover 15 distinct industries.

The Indian Railways and Department of Posts have improved their tools, machinery, handling
equipment, and storage area to ensure efficient delivery. Also, they have created specialized
packaging boxes like foldable, envelope-style, mesh, and bubble guard boxes out of aluminum and
other lightweight materials. Moreover, conveyor systems and specialized rakes have been installed at
Parcel Aggregation Centers for effective stacking.

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