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

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Report No .8 of 2010-11 (<strong>Railways</strong>)<br />

other macro level analysis. Micro analysis to evaluate the position obta<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong> field locations was conducted on a judgmental selection of a representative<br />

sample of the various activity centres as <strong>in</strong>dicated below: A representative<br />

sample of 173 major term<strong>in</strong>al/sid<strong>in</strong>g owners was surveyed <strong>in</strong> the zones.<br />

Sl No Activity centre Sample selected<br />

1 Division 39 Divisions<br />

2 Term<strong>in</strong>als (Sid<strong>in</strong>gs /Goods<br />

Sheds)<br />

110 term<strong>in</strong>als (load<strong>in</strong>g /unload<strong>in</strong>g term<strong>in</strong>als)<br />

h<strong>and</strong>l<strong>in</strong>g more than 30 rakes per month<br />

3 Inter-change po<strong>in</strong>ts 53 po<strong>in</strong>ts<br />

4 Carriage <strong>and</strong> Wagon depot 47 depots<br />

Detail of Sample size is given <strong>in</strong> Annexure II.<br />

1.8 Acknowledgement<br />

The audit objectives, scope of study <strong>and</strong> methodology were discussed with<br />

Member (Traffic) at Railway Board as well as with General Managers<br />

/concerned departmental heads <strong>in</strong> the zones by the Pr<strong>in</strong>cipal Directors of Audit<br />

dur<strong>in</strong>g entry conferences. The <strong>in</strong>puts provided on various aspects <strong>in</strong>clud<strong>in</strong>g the<br />

suggestions on sample selection <strong>and</strong> the cooperation extended by railways is<br />

acknowledged with thanks. The audit f<strong>in</strong>d<strong>in</strong>gs <strong>and</strong> recommendations were<br />

discussed with Member Traffic, Member Mechanical <strong>and</strong> Member<br />

Eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong> an exit conference held <strong>in</strong> February 2010. Similar exit<br />

conferences were also held by the Pr<strong>in</strong>cipal Directors of Audit <strong>in</strong> the zones,<br />

with concerned zonal authorities.<br />

1.9 Audit f<strong>in</strong>d<strong>in</strong>gs<br />

The results of the Performance Audit of <strong>Freight</strong> <strong>services</strong> <strong>in</strong> IR are given <strong>in</strong> the<br />

follow<strong>in</strong>g three sections.<br />

• Augmentation of assets <strong>and</strong> <strong>in</strong>frastructure<br />

• Utilisation <strong>and</strong> ma<strong>in</strong>tenance of available assets<br />

• Improvement of freight market share<br />

1.9.1 Augmentation of assets <strong>and</strong> <strong>in</strong>frastructure<br />

Over the years, the<br />

railways’ share of the total<br />

transport sector has come<br />

down from 53 per cent <strong>in</strong><br />

the IV Five-year plan<br />

(1972-1977) to 37 per cent<br />

<strong>in</strong> the IX Five-year plan<br />

(1997-2002) due to<br />

<strong>in</strong>adequate <strong>in</strong>vestment <strong>in</strong><br />

<strong>in</strong>frastructure <strong>and</strong><br />

competitive weakness visà-vis<br />

other modes of<br />

Per cent<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

Rail <strong>Freight</strong><br />

Road <strong>Freight</strong><br />

Growth <strong>in</strong> <strong>Freight</strong> Traffic-Rail vs Road<br />

(As per study of Asian Development Bank)<br />

67.1<br />

34.5<br />

61.5<br />

38.5<br />

62.3<br />

37.7<br />

70.5<br />

54.6 48.6 51.3 52<br />

45.4 51.4 48.7 48<br />

29.5<br />

transport. A study by Asian Development Bank also <strong>in</strong>dicated a decl<strong>in</strong><strong>in</strong>g<br />

market share of IR as shown <strong>in</strong> the chart alongside.<br />

Year<br />

6

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