Indian Railways Set to Surpass 1.6 Billion Tonnes in Freight Loading by 2024-25: Vaishnaw

New Delhi, April 2 (NationPress) Indian Railways is on track to achieve a remarkable 1.6 billion tonnes in freight loading for the fiscal year 2024-25, positioning itself as the third largest freight handling railway system globally, as reported in Parliament on Wednesday.

Thanks to a series of initiatives aimed at boosting freight revenue, the amount of freight transported by Indian Railways has surged by 29 percent, rising from 1,233 million tonnes in 2020-21 to 1,591 million tonnes in 2023-24, as stated by Railway Minister Ashwini Vaishnaw in a written response to a question in the Lok Sabha.

In the fiscal year 2023-24, Indian Railways reported earnings of Rs 2,56,093 crore, with revenue expenditure amounting to Rs 2,52,834 crore. The net revenue saw an increase to Rs 3,260 crore. The minister noted that major expenses are directed towards staff salaries, pensions, and energy costs.

Key strategies to enhance freight loading include promoting private sector participation in the development of modern rail freight terminals under the ‘Gati Shakti Multi-Modal Cargo Terminal (GCT)’ policy, as well as upgrading infrastructure at railway-owned goods sheds.

Numerous initiatives have been rolled out to encourage private investment in wagons, including specialized wagons tailored for specific commodities like cement, oil, steel, fly ash, and automobiles.

Moreover, the Railways is facilitating cargo aggregation to broaden the range of commodities transported, utilizing schemes like the “Cargo Aggregator Transportation Product” and “Joint Parcel Product-Rapid Cargo Services”.

Additionally, a variety of tariff-related strategies have been implemented to improve the competitiveness of rail transport against road transport. This includes concessions for short lead traffic up to 90 km, a Liberalised Automatic Freight Rebate scheme, discounts for loading bagged consignments, and other incentives for specific commodities.

Expenditure management measures in the Railways focus on aspects such as manpower management and electrification of railway tracks. The electrification initiative alone has resulted in savings exceeding Rs 4,700 crore in diesel traction for the fiscal year 2023-24, according to the minister.

Operational efficiencies within the Railways have significantly improved, with the speed potential of 110 kmph now applicable across 80,000 km of track, compared to approximately 31,000 km in 2014. Furthermore, enhancements have been made to about 23,000 km of track from 2014-15 to 2024-25 (up to February 2025), allowing for a speed potential of 130 kmph.