Monday, 21 May 2012

Is the Railways' freight target achievable?

Indian Railways freight traffic target for 2012-13, 1,025 million tonnes (MT) has been announced in the budget has been set up to train. What has not been announced in the Budget that the internal target has been fixed at 1.040 mt-. It is on target achievable? A million dollar question.

The target for 2011-12 993 mt (1,000 mt-in internal target) was fixed at first, 970 mt from the later of March 31, pruned, and even more of the actual throughput was marginally from 969.78 mt. The episode will be repeated this year? Some say as much as is now firmly on the right during the course of treatment will depend on how the economy is difficult.

Slack Art GROWTH

If the economy can grow, traffic will have a hunger for the railway. If not, many other sectors such as railways, will be a hit. However, initial indications are ominous.

Perhaps for the first time, fiscal year due to poor demand from the stabling wagons (sloth) starts. May or early June is usually the slack season stabling room from the third week of the onset of monsoon. This time, well before the start of April.

It may be a reason for the increase in the contribution of industry to the slackening demand in the car can be. In March, industrial output declined by 3.5 percent compared with 9.4 percent growth the year before.

The sector was not a good long run, it's highest production (-4.4 percent), mining (-1.3 percent), electricity (-2.7 percent), and perhaps the most dismal picture presented by the capital goods sector, which was reduced by over 21 percent.

This was the second time in the last fiscal. When the contract was the first of October was 4.9 percent and industrial production in the negative zone.

Power DOUBTED

But after that, another challenge. If it is really targeted volume of rail traffic is no shortage of management is geared even if it is not clear.

Some people doubt about the ability of the rail. Reason: the ability to resource crunch fueled by the restrictions.

The average daily loading of 48,000 wagons achieved presupposes a targeted volume. The search revealed that an average of 46.000 wagons for more than three consecutive days in a difficult load for the railway - from - the state may be up. Pose a major challenge will be to limit the power line. This is not surprising.

Coal from the largest rail freight traffic for the item, accounting for more than a total of 47 percent, and the ability to span the main coal - such as East Coast regional load of Railways, on the progress of the program be continued, South East Central, South and Middle East Central, has been delayed - is a distillation of a number of projects in the most socially relevant, but not the revenue, generating a gain on the limited resources of the inevitable crash.

System Improvements

Railway Board, therefore, the local railways to improve the system, that is, terminal operations, supervision, equipment and rationalizing empty and the engine is not possible to optimize the benefits derived from the flow of the circuit has to be said. One wonders if palliatives can expect to yield the desired results.

Adequate investment, such as locomotives equipment reliability, and security of the Signaling System and the songs lack the will to take risks.

Unfortunately, the eventualities to be a clear need to put a road map for raising resources for investment. The rent increase has been only a pretext to break the political benefits of rail freight growth on the back to read more often outside the budget, forced.

As an option - exercised arbitrarily, and has already drawn too far - so, by any measure, part of a sensible long-term strategy can not be.

Resources squandered

Meanwhile, such as budgetary support and resources to bring to the market for loans is the other way, do not appear to be promising. Private and public projects is not taken to attract private investment is proving to be a challenge.

Infrastructure bottlenecks, and with little regard to the viability of the new passenger trains, which run on the half-witted. Squandering limited resources away from low priority to socially relevant projects, it appears, from a series of cabinet rail has proven to be the most favored option years.



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