Thursday, August 28, 2014

INFRASTRUCTURAL BOTTLENECK AND RAILWAYS



INFRASTRUCTURAL BOTTLENECK AND RAILWAYS

Prof. Hitesh Shukla & Uday Shankar Jha

With the increasing traffic in freight segment in Kandla-Mundra port side increasingly it was becoming difficult to receive and dispatch railway rakes to and from this area to hinterland spread across north and central India and traders had to bear heavy penalty of international ship liners along with port charges.  Hence the “Chamber of Commerce and Industry Gandhidham” moved a proposal for doubling the railway line of 190 kilometers between Samkhiali and Viramgam in Kandla-Ahmedabad section of Indian Railway costing around ` 500 crore.  This last leg of journey was proving to be critical stumbling block as being single line section trains were getting detained after reaching up to Ahmedabad.  Since 30 to 40 rakes are loaded and unloaded in this area and almost 25 per cent rakes are coming to Ahmedabad side it was felt that doubling this section under Public Private Partnership (PPP) would make it profitable model in two senses.  Since more than 8 trains would be running in this section per day it was expected that apportioned carrying (i.e. Shared earning per km allotted by Indian Railway) would be approximately ` 6 lakh per train out of average of ` 40 lakh freight charge.  Hence the Rate of Return (ROR) would be very high and within short time entire investment would be returned and huge profit would be generated subsequently.  Moreover, the greater profit would be in terms of saving made out of non-incurrence of different penalties at the port and international ship lines.  Thus it would be highly viable and remunerative Public Private Partnership (PPP) Project.

UNDERSTANDING INDIAN RAILWAYS
Transportation is a basic need in any developed society.  Among various modes of transportation like roadways, railways, airways and waterways Indian Railways play a significant role in India.  From a modest beginning of 34km from Mumbai to Thane in 1853, the Indian Railways (IR) have grown into a vast network of 7,133 stations spread over a route, length of 64,600 kms with a fleet of 9,213 locomotives, 59,713 passenger coaches and 2,29,381 wagons as  on March, 2011.  It is the largest employer of the world with 13.6 lakh employees and more than one crore people getting indirect employment. Over the year, the IR has proved to be life line of the nation influencing social, economic, political and cultural life of the people.  Before independence IR played an important role in unifying India by providing transportation facility in different parts of the country when other modes were not properly developed.  This unifying role ultimately helped in Indian national movement also.  Even in post independent India it also helped in increasing mobility of the common man, bringing together people from all castes, communities, region and religion.  Due to railway there was growth of trade, industry and commerce.  It helped in equalizing price line and reduced the impact of famine and drought.  It led to fast rural development, increased urbanization and employment generation leading to substantial contribution to national exchequers.  Its influence can be noticed in the spread of education and growth of literature, poetry, music, film and overall life style of the country. (India 2013, pp. 926, Bahri Brothers, 2011 & 2012)
IR has always played a leading role in the economic and industrial development by transporting passengers and goods over its vast network.  During 2011-12 it carried 8,224 million passengers which was 7.49 per cent higher than previous year (Year Book: 2011-12; pp.48).  In 2012-13 this was 8,421 million marking growth of 5.32% whereas in 1950-51 it carried 1,284 million passengers only.  Thus there was seven time growth during last 60 years.  The average lead of passenger, which indicates the average distance travelled by them, in non-suburban section in 2011-12, was 234.6 km which was higher by 0.1 percent than previous year. This reached to 241.48 km in 2012-13.  In 1950-51 it was only 68.8 km.  Total passenger kilometer covered by all passengers in 2011-12 was 1,046,522 million km. which was 7 per cent higher than previous year.  This reached to 10, 98,103 in 2012-13 registering a growth of 4.93%.  In 1950-51 it was only 66,517 million km.  Overall average speed of Mail Express train was 50.1 km/hr. and passenger train was 36.2 km/hr. in 2011-12.
Table I. Number of Passengers Originating
Year
No. of Passenger
(in Million)
Avg. Lead of Passenger
(Non-Suburban-KM)
Total Passenger KM
(in Million)
1950-51
1,284
68.8
66,517
2010-11
8,224
234.6
1,046,522
2011-12
8,421
241.48
1,098,103
Year Book 2012 pp. 48, 49

IR has run 8,224 passengers trains daily during 2011-12 out of which suburban electrical multiple (EMU) trains were 4,337, ordinary passenger trains were 2,547 whereas there were 3,847 mail express trains.

Table II. Types of Passengers Trains
Year
Number of of Passengers Trains
Suburban
Ordinary Passenger
Mail Express
Total
1950-51
412
795
77
1,284
2000-01
2,861
1,460
512
4,833
2010-11
4,061
2,444
1,146
7,651
2011-12
4,377
2,457
1,300
8,224
Year Book 2012 pp. 48,

 As far as earning per passenger km. is concerned, it is on an average 26.99 paisa only.  It is lowest in suburban section at 13.37 paisa whereas in second class ordinary it was 13.87 paisa.  In second class it was 26.53 paisa whereas in upper class 108.83 paisa.  Due to this contribution of several classes in total revenue is disproportionately low.  The contribution of suburban service is merely 6.82 percentages whereas the second class ordinary contribute for 13.84 percent.  Maximum contribution of 51.54 per cent is made by second class mail/express whereas the upper class contributes for 27.80 percent. These days’ most important long distance trains are running with 24 coaches and if it is running among the developed states then almost 40% coaches are Air Conditioned (AC) coaches. Other less important trains are having 18 to 19 coaches where one or two second coaches are second AC coach (where there are four berths in a cabin – two lower and two upper) and two to three coaches are third Ac coach - (where there are six berths in a cabin – two lower, two middle and two upper), 10 to12 sleeper class coach (these are non AC coach with six berths in a cabin) and two to four general class coach (these are non AC coach with sitting facility where no reservation is required and people can travel by purchasing simple unreserved ticket at the last moment. Only very prestigious trains are having one or two First AC coach where there are cabins of four berths or coupe of two berths with the facility of internal locking for privacy and safety
Table III. Passengers Earning Analysis
Year
Average Earning Per Passenger Per KM (In Paisa)
Suburban
Second Ordinary
Second Sleeper
Upper class
Total
2010-11
12.78
15.94
25.75
106.51
26.27
2011-12
13.37
13.89
26.53
108.53
26.27
Year Book 2012 pp. 52,

During 2011-12 IR’s revenue contribution of freight traffic was 969.05 million tones which were 7.67 per cent higher than previous year.  This reached to 1008 million tonnes in 2012-13.  During 1950-51 this was only 73.2 million tonnes only.  In terms of net tones km during 2011-12 this was 667,607 million whereas as in 1950-51 it was only 37,565 million only.  In 2012-13 this reached to 691,658 million.  During this period average lead of traffic was 689 km (in 2011-12) and 513 km (in 2010-11) respectively.

Table IV. Freight Performance
Year
Freight Loading
Net Tonnes KM
Average lead of Freight
1950-51
73.20
37,565
513
2000-01
473.50
312,371
660
2010-11
969.05
667,607
689
2011-12
1008.01
691,658

Year Book 2012 pp. 61, 62

Out of 967.05 million tonnes of 2011-12, the major commodity of loading was coal with 45,581 tonnes at 47.04 per cent.  Cement with 107.66 million tonnes (11.11%) was at second position and Iron ore (104.70 MT or 10.80%) at third position.  Fertilizers (52.69 MT with 5.44%), food grains (46.40 MT with 4.79%) POL (39.77 MT with 4.10%) Iron & Steel (35.15 MT with 3.63%) were other major commodities. 



Table V: Major Commodities Transported by Indian Railways: Quantities & Percentage
Year
Coal
 Cement
Iron Ore
Fertilizers
Food grain
 POL
Quantity
%
Quantity
%
Quantity
%
Quantity
%
Quantity
%
Quantity
%
2008-09
369.63
44.35
86.24
10.35
130.58
15.67
41.35
4.96
35.51
4.26
38.08
4.57
2010-11
420.37
45.61
99.08
10.75
118.46
12.85
48.22
5.23
43.45
4.71
39.29
4.26
2011-12
455.81
47.04
107.66
11.11
104.70
10.80
52.69
5.4
46.40
4.79
39.77
4.10
Year Book 2012 pp. 60, 61

The total earning out of freight traffic was ` 67,743.62 crores out of which coal contributed ` 28,176.96 (41.60%), Cement contributed ` 6,409.83 (9.46%) and Iron Ore contributed ` 7,411.13 crores (10.94%), Fertilizers (5.52%), food grain (7.25%), POL (5.35%), Iron & Steel (5.80%) were other contributors.  In developed countries the contribution of container services is as high as fifty per cent whereas in India the container transportation by rail was only 3.92 percent with 38.02 MT traffic.  One can also check the other efficiency indices of freight operation of IR.  In 2011-12 its net tonnes kilometers per wagon per day in BG was 9,261 against 9,247 against previous year.  Similarly wagon kilometers per wagon per day were 265 against 262 in 2010-11.

For a common man the passenger service is the most visible activity which is being used by rich and poor people alike.  In most metropolitan cities every day thousands of people are using the suburban service to commute to office and back.  In fact city like Mumbai, suburban service acts as life line and if due to any reason suburban services get disrupted the city life gets paralyzed.  The IR is most easily accessible public service of India. One can avail whole spectrum of services being provided at the railway station by purchasing a ticket of ` 5 or more.  Depending upon the number of passengers and nature of traffic different facilities are provided at any railway station.  Even at the smallest stations where only one or two passenger trains stop a number of facilities like booking arrangement, drinking water, waiting hall, platform shelter with shady trees, rail level passenger platform, lighting, time table display and clock are provided.  Whereas, bigger and busy stations are provided with several additional facilities like seating arrangements, platform cover, urinals, latrines, high level platform, fans, foot over bridges, water cooler, public address system with computerized announcement, electronic train indicator board with signage, parking cum circulating area with lights are provided for greater passenger satisfaction.  Some bigger stations are also provided with general waiting room, sleeper class waiting room, AC waiting room, ladies waiting room, retiring rooms (an independent room at the railway station where a passenger can stay for a day or two on a given charge) and dormitories (a shared retiring room may be four to six bed at much lower charge), catering stalls, vegetarian refreshment room, non-vegetarian refreshment room, food plaza etc. For long distance passengers computerized reservation system through which they get their reserved ticket for various classes like 1st AC, 2nd AC, 3rd AC and Sleeper Classes is the biggest and most important facility. Providing this service through Indian Railways Catering & Tourism Corporation (IRCTC) website which facilitates ticket even at one’s home makes it more attractive.  For short distance services Unreserved Ticketing System (UTS) provides computerized ticket.

In the rapid changing world where there is substantial improvement of life style common expectation from different service providers have also increased.  Accordingly IR has also included some of the latest items like Automatic Vending Machine, Coin Operated Ticket Vending Machine, provision of cyber cafes, ATM, AC Lounge (for additional comfort with less crowding), Food Plaza, Water Vending Machine, Washable apron with jet cleaning, mobile charging points, Close circuit Television (CCTV) monitoring for security purpose and announcement.  Furthermore, few metropolitan and other cities stations were selected as World Class Station like Delhi, Ahmedabad, Mumbai Chatrapati Shivaji Terminus, etc. where additional facilities were promised to be provided on international line.  On the other hand several other smaller popular destinations were selected to be developed as Adarsh Station to reflect local ethnic art and architecture with better availabilities of all passenger amenity items.

For getting an authorized entry in to railway station premises one need to have a ticket or  pass.  Anybody can pay a railway ticket either on UTS counters where earlier printed card tickets were sold.  But now, most of counters have started selling computerized unreserved ticket a very low price mostly for general class.  On the other hand reservation ticket counters are selling reserved accommodation for various classes viz. First Air Condition (AC), Second AC, Third AC, Chair Car, Executive Class for various trains like Rajdhani Express, Shatabadi Express, Duronto Express, Garib Rath, Sampark Kranti, other Super-Fast trains, Mail/Express trains, General trains, Holiday Express trains etc.  One can also book personalized train as per their own programme as desired by the party.  Such trains are known as Full Tariff Rate Trains (FTR) popularly known as Yatra Special or Tour Special Train.  These days even IRCTC (Indian Railway Catering and Tourism Corporation) are also running such customized tourist trains to various famous tourist destinations.

Although IR is running more than 7,000 such trains, these trains are not fully able to cater the excessive demand, particularly during peak season as one always get wait listed ticket within two to three minutes of opening of reservation 60 days in advance at 8 O’clock (the opening time of reservation).  The unmet demands vary from four to ten times depending upon the section and season.  Maximum demand exist for golden quadrilaterals and diagonals i.e. four metropolitans (Delhi, Mumbai, Kolkata and Chennai) and few other industrial business cities like Ahemdabad, Chandigarh, Dhanbad, Lucknow, Kalka, Mysore, Ajmer, Amritsar, Dehradun, Ranchi, Pune, Secundrabad, Jaipur, Agra, Ludhiana, Puri etc.  In absence of required capacity of such section along with acute shortage of AC and Non-AC coaches and locomotive additional trains are not possible to run.  Further the present price structure of passenger train does not support for heavy additional expenditure for the procurement of new coaches and locomotives along with additional sectional capacity by way of tripling or quadrupling of the track. As such running a passenger train is a massive loss making proposition, particularly all short distance passenger trains including 5-6 coach trains or  suburban multiple electrical moving units or Diesel electrical moving units (MEMU/ DEMU) trains on an average total collection comes out to be around 13 paisa out of 100 paisa expended.  The main reason of this loss making is absolutely low price being charged to the passenger.  First of all the base rate of ticket in general class is itself very low.  Added to this is the facility of monthly or quarterly season ticket facility where the IR charge for six return journey for a month multiple or uncounted number of travel.  Further, in many parts of country where the culture of compliance of law is poor the ticket sale in isolated or branch line goes further low making the entire train operation a big loss making enterprise.  In long distance segment also, all trains are not profit making.  As per one estimates, all fully AC trains like Rajdhani, Shatabadi, Sampark Kranti, Duronto etc. are profit making trains whereas in Non-AC segment, if any train is running with 22 to 24 coaches then it makes profit. If any train is running with 18 or less coaches then it is definitely a loss making enterprise even if there are few AC coaches in the trains.

Doubling of any section is ideally to be done when there are more than thirty trains in one direction i.e. 60 trains per day in both ways. It is because it is expected that if there are different stations located at a distance of 10 kms each and if the slowest train in the section runs at a speed of 60 or 90 kmph it would take 20 minutes to clear a section (6 minutes for covering the distance, 7 minutes for starting and 7 minutes for slowing down and stopping the train). Thus it is possible to run approximately three trains in one hour or 72 trains in 24 hours.  But one has to give three hours maintenance time per day.  This makes sectional capacity around 60 to 63 trains.  Before going for doubling of the section one can improve sectional capacity by providing dead end in all loop lines of the station, providing standard III interlocking with panel in station masters chamber or Route Relay Interlocking to save timing, while entry and dispatch of a train at a station.  Thus one goes for doubling only when there is full sectional capacity utilization up to saturation level.  Since in the doubling work of BG line as in 2014 it costs   ` 7 to 8 crores per km depending upon topography, particularly the presence of bridges, it is very costly decision to convert a section.  As per prevalent practice of IR at a time a stretch of 60 to 70 km is approved for the doubling work and work is completed in a period of five or many years.  Electrification of a railway line is another infrastructural expenditure work with huge investment or sunk cost.  It is said that the breakeven point for electrification comes when there are more than 18 trains in one direction.  These days cost of electrification runs around ` 1.06 crores per km.  Thus sustainability of these investments comes only when there is dense passenger and freight traffic.  Similarly acquisition of different passenger coaches are also very costly affair as it costs heavily  for AC coaches, 3rd AC coach cost ` 1.74 crores, 2nd AC coach cost ` 1.81 crores, 1st coach cost ` 1.57 crores, sleeper coach cost ` 0.92 crores, General class coach cost ` 0.86 crores.  The cost of Passenger Engines – ABB Loco ` 14 crores is equally high whereas conventional or other such loco costs around ` 7.2 crores.  On the other three phases loco of freight traffic costs ` 14 crores.  One advantage of such loco is that these are regenerative i.e. whenever it moves on down gradient or whenever brake is applied the generation of electricity is done which is fed back to the grid.  On the other hand diesel driven locomotive cost approximately ` 14 crores.  However diesel locomotives are not as powerful as electrical locomotives and these faces critical situation in gradient sections even though these are 4500 horse power.        
All state capitals are now connected with national capital by Rajdhani trains, barring a few where it has not feasible due to short distance.  This train is fully air conditioned with three classes-First AC, Second AC and Third AC.  Such destinations have also been provided with Garib Rath service which is having 3rd AC accommodation with slightly lower fare to attract passengers who were travelling in non-AC sleeper class till now.  Most of these long distance trains have night component and have been time tabled in such a manner that it starts either late afternoon or evening time and reaches before office time.  On the other hand important close by cities have been connected by Shatabadi Express which is again fully air conditioned with two classes- Executive Chair Car (EC) and Chair Car (CC) only.  To cater the need of general class passenger most of such routes have been provided with Jan Shatabadi trains in opposite direction which like Shatabadi starts early in the morning and reaches by office time or by noon.  In return direction such train starts afternoon or evening and reaches to the destination late evening before mid-night.  Most of the Rajdhani routes have also been provided with the Sampark Kranti which is having both AC and Non-AC class.  In Rajdhani and Shatabadi Express one gets catering services. The charge of catering is included in fare itself.  AC sleeper coaches are provided with free bed-roll consisting two bed sheets, one pillow with cover, one blanket and one towel.  However, Garib Rath does not have a mandatory catering and bedding provision and it is available on advance request and separate payment.  Since most of the bigger town or metropolitan cities have huge traffic between themselves, to cater non-stop service Duronto trains have been provided with no-commercial stop in between.  For instance Mumbai-Delhi Duronto Express does not have any commercial stop in between.  However, it stops at two locations for the change of Loco Pilot and Guard.  Initially all Durontos were started with AC class only.  However, subsequently, less patronized Durontos were also provided with non-AC coaches as well.  In non-AC coaches although mandatory catering facility is also provided whereas bedding facility is not given which is otherwise given in all AC classes.  To cater the lower section of society in three metropolitan cities-Delhi, Mumbai and Kolkata a lower price Yuva train has also been provided which is having only Chair Car (CC).  On the other hand in a few Shatabadi routes in opposite direction Double Decker trains have been provided which has only AC coaches.  Here catering service is not mandatory.

All these trains have facility of reservation 60 days in advance.  For last minute travelers Tatkal booking is done two days in advance at a fixed premium price.  Dynamic premium pricing is under trial between Delhi and Mumbai and may be implemented in more train subsequently.  One can buy reservation ticket in more than 4500 locations all over India from anywhere to anywhere which remain open from 08.00 hours to 20 hours in most of places and up to 22.00 hours in selected places except Sunday when it remain open till 14 hours.  One can also buy reserved ticket through internet on IRCTC website or other travel portal where a service charges of ` 20 and ` 10 are levied on AC and sleeper class, respectively.  One can book tickets on internet from 00.30 hours to 23.30 hours on all days.  One can book after having a registration in IRCTC.  When one book a ticket a message is delivered on the registered phone number.  On the basis of this message with  one of ten identity card like Pan Card, Voter Identity Card, Aadhar Card, one even don’t need to print a ticket and message is sufficient to act as ticket.  One person can book maximum 8 tickets in a month through IRCTC portal.

One can have break journey after travelling more than 500 kms for two days excluding the day of arrival and departure.  If any person is planning for sighting trip or pilgrimage to many destinations then one can book circular journey ticket where maximum 8 breaks of journeys are admissible and the person gets the benefit of telescopic rates which are considerably lower than regular point to point fare.  It after booking of the ticket, due to any contingency if any person wants to cancel the ticket before 48 hours, one can cancel at a deduction of  ` 120 in AC first, ` 90 in 2nd AC and 3rd AC and ` 60 in sleeper class.  If the period falls between 48 hours and 6 hours than 25% deduction is made and up to 2 hours after the departure of train deduction is 50% of the fare paid.  Refund after the departure of train can only be made by current counter or up to 10 hours in morning in Reservation Office, if the departure of train was between 21.00 to 6 hours.  In all other cases when an individual is not able to do above formality timely then one can obtain Ticket Deposit Receipt (TDR) from the nearest station within 30 days from the schedule travel date. Such claims are duly verified and then only refunded.  If in case air conditioning fails in between then on the basis of certificate issued by Travelling Ticket Examiner at the destination at the end of journey up to 20 hours one can get refund of differences of AC class fare.  If the train is running late more than three hours one can get a refund of full fare without any deductions if one drops the idea of travelling. Similarly if the train is cancelled due to accidents, breaches or floods one get full refund by surrendering the ticket within three days.

One can carry one’s own luggage along with oneself as per limit given for different classes.  For 1st AC it is 70 kg, 2nd AC 50 kg, 3rd AC 40 kg, sleeper class 40 kg  and general class 35 kg.  Over and above this limit one is supposed to book the luggage in advance to be carried in the brake-van.  Luggage is supposed to be carried by passengers themselves and in case of any lost, theft, robbery one can lodge FIR (First Information Report)  with GRP (Government Railway Police of concerned state) or RPF (Railway Protection Force).  However getting any claim in such cases is very cumbersome. 

Many long distance passenger trains are having Pantry Car along with the train.  Passenger can avail catering facility by placing order well in advance.  In such trains where there is no pantry car, some of the trains have been granted the facility of ‘Road side Vending’ where some catering contractors may supply the food at major stations.  However, many a time people may not find the quality of food very satisfactory. In many trains, particularly in Eastern India one can see a large number of unauthorized vendors who serve food as per local taste at a lower price.  However, there may be possibility of food poising or theft of luggage if proper care is not taken while interacting with them.

IR has two fare structures for 6 categories of trains in seven kinds of class.  Two fare structures are Peak Season (1st April to 31 July and 1st September to 31st January) and Lean Season (1st Feb. to 31st March and 1st Aug. to 31st Aug.).  6 categories are – Rajdhani, Duronto, Shatabadi, Jan Shatabadi, Garib Rath, Mail/Express trains.  Seven classes are 1st AC, 2nd AC 3rd AC, Executive Chair Car (EC), CC, First class, Sleeper, General.  Fare in each class varies for different categories of trains as in case of 1,000 kms. one can see the fare in Rajdhani 1st AC is ` 2830, 2nd AC `1650, 3rd AC ` 1140, in Duronto 1st AC ` 2730, 2nd AC `1520, 3rd AC ` 990, Economy fare `290, Duronto Mixed Train 1st AC ` 2710, 2nd AC ` 1640, 3rd AC `1110, Sleeper class ` 420, in Shatabadi Executive class ` 2050, CC ` 910, in Jan Shatabadi CC ` 840, 2nd class ` 252, in Garib Rath 3rd AC ` 620, CC ` 530, in Mail/Express 1st AC ` 2479, 2nd AC ` 1441, FC ` 1156, 3rd AC ` 989, CC ` 784, SL ` 375 and 2nd class ` 217.  Thus there is lot of choice or variation between different trains and classes and one can choose any particular train as per priority choice or compulsion.  Besides these every passenger has to pay reservation fee ` 60 in first AC, ` 50 in 2nd AC, ` 40 in 3rd AC, CC and FC, ` 20 in sleeper class, `8 for second class. If any train is running at the speed of 55 kmph or higher it is defined as super-fast train and for this ` 75 in 1st AC, `45 in 2nd AC and 3rd AC, ` 30 in SL class and ` 15 in general classes are charged.

Every train has two coaches of brake van, one in front and one in rear.  One brake van has two compartments of luggage or parcel.  These places can be used for carrying parcel booked by the common public along with the luggage while traveling from one place to other.  As these were very convenient and relatively cheaper than the trucks this place used to be very favorable, among the business man to book their parcels from one station to another.  Initially when road transport was not developed, parcel van used to be very popular among traders to send their merchandise to different parts of country.  Gradually with the growth of road transportation in India people got an opportunity to other option of transportation as getting any place in brake van had become very difficult with the growth of trade and industry.

In freight traffic up to 1980s the IR also used to accept the demand of one or a few wagons to different destinations to be sent by the freight trains.  This facilitated transportation facility for small or medium industrialists or traders to avail IR’s facility.  However, during the decades of 1980 with I.K. Gujral as Chairman Railway Board the rake traffic was preferred over wagon load to improve the efficiency of the rolling stock of IR.  This led to tremendous improvement in the turn round of the IR and wagon productivity improved many folds. However, this restricted the service of freight traffic to only very big industrial production houses or very large industries or big trader. All medium or small industries were marginalized as they never got allotment of wagon to load in the IR, and in practice they were not encouraged to deal with IR.  Only one option was left to them to go through the route of taking lease of parcel van, which was gradually given in larger number.  But various rules related to parcel leasing made the process very complicated which could have been sustained only by the logistic companies to avail the service.  In the whole process the small and medium industry or trading house has been totally alienated from IR.
These days IR is acting as an active bulk carrier of the country.  In 2012-13, it transported 1008 million tonnes coal, cement, iron ore, fertilizers, food grains, POL and containers.  During 2011-12 it carried 455.81 million tonnes (MT) of coal, 107.66 MT of cement, 104.70 MT of iron ore, 52.70 MT of fertilizers.  46.40 MT of food grains, 39.77 MT of POL and 38.02 MT of container and various other commodities.

When one analyzes tones originating, Net Tones Kms and Earning percentage in 2011-12 coal has 41.60%. Iron Ore makes contribution of 10.94 cement 9.46%, food grains 7.25%, Container 6.78%, fertilizers 5.57%, POL 5.35%, Limestone 1.76%, Sugar 1.10%, Salt 1.03%, fodder 0.15%, Cake 0.89%, Gypsum 0.57%, fruits and fresh 0.47%, Jute manufactured 0.31% and edible oils 0.25% among others. In term of Net Tones Kms. in 2011-12 IR earned 667,607 million, which was 6.7% higher than previous year.  In 1950-51 it uses to be 37,565 million.  Average lead of freight traffic in 2011-12 was 689 kms which was 1.5 per cent higher than previous year.  In 1950-51 it uses to be 513 kms only.  In terms of freight train kms in 2011-12 it was 391 million which 6 per cent higher than previous year was.  In terms of Net tonnes kilometers per wagon per day in BG in 2011-12 were 9,261 which was 0.15% higher than previous year.  The wagon kilometer wagon per day was 265 in 2011-12 which was about 1.15% higher than previous year. Despite all these relative improvements over the year IR has either stagnated or reduced substantially in absolute tern.

As explained above the freight traffic has got restricted, by and large, for the bulk traffic.  Due to this reason the share of IR has reduced from 80% of freight traffic in 1951 to less than 20% in 2014.  Now almost entire small traffic has been shifted to the road sector as IR has not been able to cater to the demand of small traffic.  An attempt was made to capture this to serve through Parcel Van (VPU).  However, this remains very miniscule as availability of VPU has been very limited and the rule pertaining to parcel traffic apparently felt to be very restrictive.  As per preferential traffic schedule, there are four priorities-Priority A for military traffic, Priority B for emergency relief material, Priority C for coal, edible salt, fertilizer, POL and raw material for steel plants and Priority D for all traffic not included in Priority “A to C”.  The IR practices differential pricing for different commodities.  For this there are 12 different classes.  The lowest one is LR1 to LR4, and then there are 100 to 200 different classes.  Milk Product, Paint and Organic manures is at the lowest one in LR1, then firework at LR2, Charcoal and Paper base as LR3 and Fruits and vegetables, coffee, tea, motor vehicle etc. at LR4.  Leather, rubber and plastic products are in 100 class, salt is in 110 class, oil cakes and seeds in 120 class, food grain and chemical manure are in 130 class, edible oil and caustic soda are in 140 class, cement clay, coal and coke, bricks and gypsum are in 150 class, Minerals and Ores are in 160 class, Iron and Steel, alloys and metal are in 180 class and acid, alcohol and POL are in 200 class.  Here it is pointed out that the base rate of transporting any product is at class 100, so any product of LR 1 to LR 4 and class 100 are being carried at a lower rate than the expenditure incurred to carry them.  In a way all these products are transported at highly subsidized rates.  The commodities which are essentially required for consumption by the entire society including poorer section such as food grain, edible oil, fodder, firewood, charcoal, bamboos, fruits, vegetables, cotton bones, sugarcanes, etc. are carried at concessional rates even below costs.

If one takes the rate of one tone of a product in a class in busy season at a public goods shed to other public goods shed at a distance of 1000 km then rate varies for different classes.  The lowest rate is for LR4 and highest for class 200 as can be seen here – LR4 is ` 575.73, LR3 is ` 671.74, LR2 is ` 767.76, LR1 is ` 853.60, Class 100 is `959.61, Class 110 is `1,005.33, Class 120 is ` 1,151.71, Class 130 is ` 1,247.47, Class 140 is ` 1,343.46, Class 150 is `1,439.47, Class 160 is ` 1,535.34, Class 180 is ` 1,727.25 and Class 200  is ` 1,929.20.  These variations are done in the name of social responsibility of IR, affordability of a price what a commodity can bear and by and large priority fixed by the central government.  Prices are not strictly market driven or as per the load what a commercial product can bear.  Thus this kind of price leads to a special kind of tilt in the product market.  However, in 2014 the IR has decided to form an Independent Railway Rate Tribunal which would attempt to determine independently rate of different classes to bring parity in public and private players.

Rake allotment in IR is being done in first come first serve basis for each priority item separately.  However, each zonal railways have been given liberty to decide one day or two days in a week when can allot rakes strictly on the basis of oldest date of registration where priority would be kept aside for the day.  It means in a week five or six days, if there is any indent for priority A or B or even C with fresh registration date then it will get preference over on item registered under priority D even with older registration date.  However, only on nominated date item with lower priority in item D will get rake allotted as per oldest date of registration.  Further in rake load one gate rate as per description given above and in wagon load the rate applicable would be for the next class.  Cement in rake would be changed in 150 classes but in wagon would be charged in 160 classes.

Organizationally, Ministry of Railways is one of the important wing of the government of India which is represented by one Minister of Railway and two or three Ministers of State (Railways).  Housed in Rail Bhavan at Raisina Road in New Delhi it works with Railway Board from the bureaucratic administration side which is headed by Chairman, Railway Board with Member Traffic, Member Mechanical, Member Electrical, Member Staff, Member Engineering and Finance Commissioner.  Downward railway is divided in to 16 zonal railways which are further sub-divided into 61 divisions.  These are Western Railway headquartered at Churchgate with six divisions i.e. Mumbai Central, Vadodara, Ahmedabad, Ratlam, Rajkot and Bhavnagar. Central Railway headquartered at Chhatrapati Shivaji Terminus with five divisions i.e. Mumbai, Pune, Solapur, Nagpur and Bhusaval.  Northern Railway headquartered at New Delhi with five divisions at Delhi, Ambala, Moradabad, Firozpur and Lucknow.  Eastern Railway headquartered at Kolkatta with four divisions i.e. Howrah, Sealdah, Asansol and Malda. South Eastern Railway headquartered at Fairley Palace in Kolkatta with four divisions at Kharagpur, Adra, Chakradharpur and Ranchi.  East Central Railway headquartered at Hajipur with five divisions at Danapur, Dhanbad, Sonepur, Samastipur and Mughalsaria.  North- Central Railway headquartered at Allahabad with three divisions at Allahabad, Jhansi and Agra.  West Central Railway headquartered at Jabalpur with three divisions i.e. Jabalpur, Bhopal and Kota.  North Western Railway headquartered at Jaipur with four divisions at Jaipur, Ajmer, Jodhpur and Bikaner, South East Central Railway headquartered at Bilaspur with three divisions i.e. Bilaspur, Raipur and Nagpur,.  South Central Railway headquartered at Secundrabad with six divisions i.e. Secundrabad, Hyderabad, Vijaywada, Guntakal, Guntur and Nanded.  North Eastern Railway headquartered at Gorakhpur with three divisions at Lucknow, Varanasi and Izatnagar.  North East Frontier Railway headquartered at Maligaon with five divisions at Lumbding, Tinsukia, Rangiya, Alipurduar and Kathihar, East coast Railway headquartered at Bhubhaneshwar with three divisions at Khurda Road, Waltair and Sambalpur.  Sourth Western Railway headquartered at Hubli with three divisions at Bangalore, Mysore and Hubli.  Southern Railway headquartered at Chenai with six divisions at Chennai, Palghat, Madurai, Trichi, Trivendrum and Salem.  Besides these Metro Railway Kolkatta has also been given the status of the 17th Zonal Railway.

Five Production Units are also considered to be more important than others along with one training Center.  National Academy of Indian Railway is at Vadodara. Production units are Chitranjan Locomotive Works, Integral Coach Factory, Perambur, Chennai Diesel Locomotive Works, Varanasi, Rail Wheel Plant Bangalore and Railway Coach Factory, Patiala.  Thus, there is a whole administrative network in the IR to cater the transportation activities.  However, the basic functional unit of IR remains the Divisional Organization. 
Table VI: Commercial Performance of Rajkot Division
Year
No of Passenger
(Lakh)
Passenger Earning
(Crore)
Goods Earning
(Crore)
Other Coaching Earning
(Crore)
Total Earning
(Crore)
2010-11
149
124.96
1066.13
11.02
1210.16
2011-12
160
143.03
1394.94
11.51
1558.33
2012-13
164
153.86
1818.11
13.83
1985.80
2013-14
163
179.83
1911.49
15.89
2107.22

As stated above, Rajkot is one of the divisional units on the broad gauge and one of most important city of Saurashtra.  Rajkot station has 596 staff who work round the clock for providing passenger, freight and parcel services.  During 2011-12 approximate, 43, 82, 948 passengers daily have used Rajkot railway station giving an earnings of ` 65.38 crores.  In 2012-13 there were 44,75,596 passengers giving an earnings of `69.47 crores.  During this period entire Rajkot Division earned ` 1,210.16 crores in 2010-11, `1,558.33 crores in 2011-12 and ` 1,985.80 crores in 2012-13.  As far as freight earning is concerned it was ` 1,066.13 crores in 2010-11, ` 1,394.94 crores in 2011-12, and ` 1,818.11 crores in 2012-13.  Passenger earning was almost 10% of the freight earning at ` 124.96 crores in 2010-11, ` 143.03 crores in 2011-12 and `153.87 crores in 2012-13. Parcel earning during this period was miniscule 0.6 to 0.7 per cent at ` 8.05crores in 2010-11, ` 8.89 crores in 2011-12 and ` 10.16 crores in 2012-13.  Similarly Other Coaching Earning (OCH) was less than 1% at 0.7 to 0.8 per cent which was ` 11.02 crores in 2010-11, ` 11.51 crores in 2011-12 and ` 13.84 crores in 2012-13.  During this period number of passenger increased gradually from 1.49 crores in 2010-11, 1.60 crores in 2011-12 and 1.65 crores in 2012-13.  To cater all these services the entire division has 5,613 staff including 32 officers.  Rajkot station, alone made parcel earning of ` 6.12 crores in 2011-12, ` 6.35 crores in 2012-13.  Whereas, freight earning was comparatively low in 2012-13 it earned only ` 0.83 crores whereas in 2011-12 it was ` 16.3 crores.

In recent time a great effort has been made to uplift the passenger amenities available at the Rajkot railway station.  Its frontal façade has been renovated and added with extra features.  Entire circulating area has been properly developed with paver blocks with one Car Parking and one Motor Cycle parking.  There are one AC Waiting Room, AC Waiting Lounge, Sleeper Class Waiting Room, 223 Steel benches and 54 Water tap for the convenience of passenger in different parts of station along with 19 catering units and one Vegetarian Refreshment Room and one Food Plaza.  For swift disbursement of booking ticket there are seven booking counters and five reservation counters.  The entire platform and circulating area is properly lighted with 421 tube lights and fitted with 78 fans to keep passengers cool and windy.  To protect the passenger from sunlight and rain most part of the platform has been covered by a shed and   9 wash rooms have been provided at different locations.
Despite these all facilities, the question is why IR is not in a position to run superfast train from Rajkot?  Why there is only weekly or bi-weekly train when all bigger and main line stations have trains seven days a week?  Why trains between Ahmedabad and Rajkot run relatively slow?  Or why there is no double line between Viramgam and Rajkot?  Or why there is no electrification of track between Ahmedabad and Rajkot? Why there is no train like Shatabadi, Garib Rath or Samprak Kranti from Rajkot?  Probably one needs to have proper deliberation to understand the things.

Rajkot station is connected from different parts of the country as many long distance trains are either originating from the division or passing through Rajkot station.  As on February 2014 trains are running to Mumbai, Madgaon, Ernakulam, Chochin, Trivendrum, Rameshwaram, Trinelluvelli, Coimbatore, Pune, Secundrabad, Puri, Kolkata, Jabalpur, Guwahati, Banaras, Delhi, Jammu Tawi, Jaipur, Dehradun, Nathdwara, Surat, Ahmedabad, Bhavnagar, Somnath.  However, except for Mumbai, Surat, Ahmedabad and Jabalpur most of these trains are weekly, bi-weekly or tri-weekly.  Even for a location like Delhi there is no direct train daily and whatever trains are running, are relatively slower in speed and very few of them are super-fast.  There is no train like Shatabadi, Garib Rath or Sampark Kranti.  Since Viramgam to Rajkot or up to Okha there is single line, it takes abnormally long hour to reach from one end to another.  For instance a distance of 246 kms by railway line it takes approximately five hours whereas by road the distance is around 225 kms and if the vehicle is new it takes three & half hours.  Thus it faces a tough challenge even in passenger traffic with road.  Added to this is limited availability of seats with inconvenient timing.  It makes railway a less preferred mode of transportation, particularly for the upper section of society who can afford to have private vehicle or higher bus fares.



Bibliography
Bahri’s 2012 : Handbook for Railwaymen. Bahri Publications, New Delhi
Bahri’s 2011 : IR – Commercial Management & Rule, Bahri Publications, New Delhi.
Boone, Torya and Ganeshan Ram 2007, New Directions in Supply Chain Management, Jaico Mumbai .
Chopra, Sunil and Meindle 2007- Supply Chain Management, Prentice Hall, Delhi. 
Deman, Julie and Tuyishime, Jean-2009- Supply Chain Management in Emerging Markets: India. University of Ghent.
Douglas M.Lambert & Michael Knemeyer: 2006 we’re in This Together-Supply Chain Management Harvard Business School Press Boston.
Fernic John & Sparks Leigh (ed): 2004-Logistic and Retail Management-Kogan Page London.
Gattorna, John :2006-Living Supply Chain Prentice’ Hall, Harlow.
Ismail Reji :2008- Logistic Management, Excel Books, New Delhi.
 India 2013 – Publication division, New Delhi.
Jha. Uday Shankar, 2011a: Improving Freight Operations of Indian Railway, Lambert Publication, Saarbrucken, Germany.
Jha. Uday Shankar, 2011b: Modernization of Indian Railways.  Lambert Publication, Saarbrucken, Germany.
Josef Zellner : 2008 Logistic Service Provider  Janus Pannonius University, Budapest.
Jung, Hosang,  Chan.F. Frank, Jeong Bongju(ed.): 2008 Trends in Supply Chain Design and Management Springer, Cardiff, U.K.
Lee, Haul: 2006-  The Triple-  A Supply Chain.  Harvard Business School Press, Boston.
Levi, David Simchi, Kaminsky Philip, & Levi Edith Simchi:2005 – Supply Chain.  Tata McGraw Hill, New Delhi.
Likar Jeffrey K & Choi Thomas.Y.: 2006- Building Deep Supplier Relationship - Harvard Business School Press, Boston.
Narayanan V.G. & Raman Ananth – 2006.  Aligning Incentives in Supply Chain, Harvard Business School Press, Boston.
Pettersson Anelie 2008 – Measurement of Supply Chain, Lulea University of Technology, Stockholm.
Pricewaterhouse Cooper: 2010 - Transportation and logistics 2030, 3rd volume.
R.Vijayan Pillai: 2009 – Logistic Management in Automobile Transportation in South India,  Kannur University, TamilNadu.
Railway Board 2013 –Year Book 2013, Rail Bhavan, New Delhi.

No comments:

Post a Comment