Coming as yet another evidence signalling that the Indian economy is overcoming recessionary pressures, the Indian Railways has increased its cargo loading target to 900 million tonnes (mt) from the earlier estimated 882 mt for 2009-10. It is to be noted that in the Rail Budget presented in July 2009, the railway minister Mamata Banerjee wanted a mid-course correction of the prevailing freight target set by her predecessor Lalu Prasad Yadav (in February 2009’s interim Budget) stating that the freight target set is not sustainable.

An increase in industrial production resulting in a double digit growth in transportation of bulk commodities such coal and cement has helped the railways to set the aforementioned target. Upbeat, a railway official, who did not wish to be named, said that if industrial production continues to grow, it is very much a possibility that the railways may cross the set cargo loading target of 900 mt.

A positive signal

In this context Dere Babaji, managing partner of Fast Track Logistics, a mid-sized logistics firm in Navi Mumbai, says, “A hike in freight target will help the railways to generate more revenues. It also signals that in the coming months freight business of the Indian Railways is expected to increase manifold.”

In order to achieve the target, the Railway Ministry plans to improve the condition of its wagons and locomotives and electrify rail-links. In this context, V Gosain, managing director of Intra Logistics, a mid-sized logistics firm in New Delhi, says, “This move by the Indian Railways to meet its target will also help us in delivering prompt and effective services to our customers.”

It should be noted that the Indian Railways’ freight business has increased by almost 9% during the April-December 2009 period, when the country’s largest bulk transporter of freight earned Rs 42,489 crore, as compared to Rs 39,088 crore during the corresponding period in 2008.

Arup Choudhury