The rapid rise in international trade and domestic cargo has placed a great strain on the Delhi-Mumbai and Delhi-Kolkata rail track. Government has, therefore, decided to build dedicated freight corridors in the Western and Eastern high-density routes. The investment is expected to be about Rs. 22,000 crore (US $ 5 bn). Requisite surveys and project reports are in progress and work is expected to commence within a year.

With increasing containerization of cargo, the demand for its movement by rail has grown rapidly. So far, container movement by rail was the monopoly of a public sector entity, CONCOR. The container movement has been thrown open to competition and private sector entities have been made eligible for running container trains. 14 applicants have submitted the application seeking permission for container train operation, which have been approved.

Tariff rationalization and effective cost allocation mechanism are also on the anvil. This includes a methodology for indexing the fare structure to line haul costs. Efforts aimed at introducing commercial accounting and information technology systems are also underway.

Technological upgradation and modernisation for higher operating efficiency

Transformation from bulk transporter to multi-modal transporter

PPP envisaged in new routes, railway stations, logistics parks, cargo aggregation and warehouses etc.