Page 20 - IMDR JOURNAL 22-23

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

Fig no 1: Importance of freight traffic
Way ahead for Indian Rail Cargo:

India, one of South Asia's economies that is growing the fastest, is expanding its logistics
infrastructure. The ambitious rail freight project that the Indian government has started is assisting
the nation in shifting a significant amount of freight from highways to railways. Additionally, the
government's Rail Logistics project is encouraging additional private sector investments in the rail
freight industry.

Over 22 million people work in the transportation and logistics sector in India, which accounts for
around 5% of the country's net GDP. In India, roads currently account for a bigger portion of inland
freight transit, although the government has taken several significant initiatives to reverse the
situation. The World Bank has granted India a 245 million USD credit to modernize its rail freight
infrastructure. Due to the decongestion caused by freight trains traveling on dedicated routes, the
new scheme will also benefit India's passenger trains.

India's railway system is the fourth-largest in the world. Nonetheless, trucking accounts for a
staggering 71% of inland commercial transportation in the nation. Road freight takes up a lot of time
and contributes to the nation's roughly 95% net carbon emission from the freight transport industry in
addition to being time-consuming. Only a fifth of the CO2 emissions from trucks are caused by
trains. India will be able to meet its commitment to achieve carbon neutrality within the next ten
years thanks to the reorganization of the rail freight sector. By switching to rail freight, 7.5 million
tons of carbon dioxide and other greenhouse gases will be reduced.

The Indian government is making numerous significant moves to raise the proportion of rail freight.
To begin with, they have lengthened freight trains, increased axle loads, and accelerated locomotive
speed. The current rail freight network is being improved as a result of this. The biggest step towards
improving the efficiency of this industry is the significant investment made in the construction of the
dedicated freight corridor. Other significant elements supporting the Indian rail freight industry are
expenditures for enhanced train-port-road connectivity and modal integration across, rail, road, and
sea freight.
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