Chapter 1 Freight services in Indian Railways - Comptroller and ...

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Report No .8 of 2010-11 (Railways) costing Rs.1,41,015 crore (including the Dedicated Freight Corridor) as at the end of March 2009. The initiatives for harnessing private investment for infrastructure augmentation through Public Private Partnership arrangements have not materialized as envisaged. Setting up of locomotive manufacturing facilities, and initiatives to recapture the road traffic such as development of multi modal parks and Roll –On-Roll-Off facility to provide door to door multi modal service were all in preliminary stages. Major freight terminals that handle more than 30 rakes every month, including those identified for modernization were also deficient in basic facilities leading to heavy terminal detentions of rolling stock, which needs to be urgently addressed. Majority of the respondents to the survey of terminal/siding owners also echoed similar sentiments. Customer perception also indicated that the mechanism of supplying rakes as per the demands of customers required improvement. This coupled with enroute detentions to rakes on account of stabling and inefficient interchange commitments between zones were bottlenecks in efficient delivery of freight services. A test check in loco sheds disclosed that several locomotives were increasingly failing within a short span of six months of their periodic overhaul indicating poor workmanship in the sheds. The quality of maintenance of locomotives, therefore, warranted improvement. The various freight schemes introduced to capture piece meal traffic were only operating sporadically in some zones. Performance of the individual incentive schemes in terms of incremental freight loading achieved was not evaluated. Considering that the average annual growth of 8.1 per cent in freight loading more or less corresponded to the average annual growth of 8-9 per cent in Gross Domestic Product during the last five years, the incentive schemes at best contributed to retention of the market share. The marketing strategy needs to be restructured for improving the market share of Indian Railways. 1.1 Highlights • Capacity and manufacturing constraints in the two locomotive manufacturing units at Varanasi and Chittaranjan hampered locomotive augmentation vis-à-vis the growth in traffic. Only 11 per cent of the envisaged external procurement was provided in the Rolling Stock programmes, leading to shortage of locomotives. Procurement was not sychronised with requirements in the zones affecting the availability of locomotives in zones. (Para 1.9.1.1) • Remedial measures were not in place even though the public and private wagon manufacturers continuously supplied only 33 to 51 per cent of the contracted quantity, adversely affecting availability of wagons in the zones. Funds ranging from Rs.387 crore to Rs.1,864 crore, comprising 12 to 31 per cent of the funds allocated for augmentation of rolling stock, remained unutilised during 2006-2009. (Para 1.9.1.1) 2
Chapter 1 Freight Services in Indian Railways • The augmentation of specialised wagons envisaged in the Integrated Railway Modernisation Plan was being augmented at a very low scale even though four of the five year period of the plan had lapsed. (Para 1.9.1.1) • Major freight terminals handling more than 30 rakes every month also suffered from inadequate infrastructure and were not receiving adequate importance. The envisaged modernisation of freight terminals with enhanced facilities were not fully implemented in most of the terminals resulting in heavy terminal detentions to rolling stock. (Para 1.9.1.2) • Progress of capacity augmentation and throughput enhancement works was characterised by procedural delays and the pace of progress of these works rendered them unlikely to be completed within the envisaged period. Port connectivity works and upgradation of permanent way were similarly behind schedule. Dedicated Freight Corridor was at a primitive stage and even land acquisitions were not completed since setting up of the special purpose vehicle in 2006. (Para 1.9.1.3) • Customer perception indicated that the mechanism of supply of rakes to customers was inefficient. Further frequent stabling of rakes and inefficient interchange commitments between zones impeded efficient delivery of freight services. (Para 1.9.2.1) • Quality of periodic maintenance in locomotive sheds was poor as a substantial 25 per cent of locomotives failed on account of poor workmanship. The time involved in train examination in wagon maintenance depots continued to be beyond the envisaged norm due to operational and manpower constraints apart from deficient infrastructure. (Para 1.9.2.2) • The freight incentive schemes introduced to improve the market share of piece-meal traffic were not successful in improving the market share as envisaged. The commodity wise loading under the incentive schemes contributed to only 10 per cent of the traffic for all commodities except cement. Scheme wise data was not maintained and the performance of the individual schemes was not evaluated. (Para 1.9.3.1) • The envisaged Public Private Partnership projects for setting up of locomotive manufacturing facilities were at a nascent stage. Development of multi modal parks and Roll on Roll off schemes for capturing road traffic have not yet materialised though four years have lapsed since it was envisaged. (Para 1.9.3.2) 3
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