C
Commercialpedia Indian Railways commercial circulars and policies

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· 2024-03-11
Study materialfreight

No official Railway Board PDF has been traced for this entry yet. The text below was read from the document held in the library.

Date2024-03-11
TypeCommercial Circular
Topicfreight

Summary

Aggregation of Piecemeal traffic and Door to Door Delivery

Text of the circular

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Mission 3000 MT:
Way Forward

➔Indian Railways (IR), the 4th railway largest railway network in the world 
after China, Russia, United States
➔In 2023-24, Indian Railway transported 1591 Million Tonnes (MT)
➔Indian railways aspire to achieve freight loading of 3000 MT by 2027
➔If we go by conventional approach Railways will be able to transport 
1728 MT only
➔This mandates multi-faceted approach for achieving this ambitious 
target.
Mission 3000 MT

➔Railway’s share in logistics market (from 1950-51 to 2023-24)
Logistics market and Railways
Logisticmarket grown-
From 86.5 MT to 4500 -5000 MT
55 times increase
Rail Cargo grown -
From 73.2 MT to 1591 MT
22 times increase

➔Railway’s share in logistics market (from 1950-51 to 2023-24)
Logistics market and Railways
86.5
73.2
5000
1591
6000
5000
4000
3000
2000
1000
0
Logistic Market Growth
Rail Cargo Growth
1950-51 -84.62%
2023-24 – 31.82%

➔This comparative low increase is reflected in IR’s consistently declining market
share from:
Logistics market and Railways
85% in 1951
60% in 1991
3 2 % in 2024

Freight Business in Indian Railways
• IR has achieved Freight loading of 1591 MT in FY 2023-24 i.e an incremental
loading of 79 MT over the previous FY 2022-23, which was 1512 MT.
Following graph depicts the growth of freight loading in the last 5 years -
Freight Loading in MT Loading
1223
1210
1233
1418
1512
1591
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24

Commodity/Year
2020-21
2021-22
2022-23
Growth from FY 
2021-22 to 2022-23
Coal
542
653
728
11.4%
Raw Material For Steel 
Plant
24
29
29
0%
Pig iron & Steel
59
68
66
-2.9%
Iron Ore
159
168
160
-4.7%
Cement & Clinker
121
138
144
4.3%
Foodgrains
63
73
71
-2.7%
Fertilizers
54
49
56
14.2%
POL
43
45
48
6.6%
Container
63
74
79
6.7%
Other Goods
103
118
129
9.3%
Total
1233.24
1418.27
1512.08
6.6%
Commodity wise Freight Loading (in MT)

Commodity wise share of Freight Loading in FY 2022-23 (%)
Coal
48%
RMSP
2%
4%
Iron Ore PI & Steel
11%
Cement & 
Clinker 
9%
POL
Fertilizers
4%
Foodgrains 
5%
3%
5%
Other Goods 
Container9%

Commodity wise share- Till 11.03.2024 for Year 2023-24
Current Year (Till 11-03-2024)
Last Financial Year (2022-23)

Logistics market and Railways
Achieving of 3000 MT freight loading by 2027 will be a mammoth task
In 2027 the logistics business is estimated to be of 7200 MT and 
achievement of 3000 MT will facilitate increase of railways modal share 
from current 32% to 41.6%

5443
5794
6151
6493
6837
7200
1418
1504
1537
1558
1640
1728
26%
26%
25%
24%
24%
24%
8000
7000
6000
5000
4000
3000
2000
1000
0
2021-22 
2022-23 
2023-24 
2024-25 
2025-26
Projected Logistics Market vs Rail share (2021-22 to 2026-27)
2026-27
Total Demand (In Million Tons) 
Carried by Rail 
Percentage
As per Mission 3000MT report, if the constraints are not addressed, IR with
the ‘Business as Usual (BAU)’ will be able to achieve 1728 MT by 2027

Constraints for achieving Mission 3000 MT
Achieving Mission-3000MT will require an ambitious growth of 16.5%. For which 
railway needs to effectively address and overcome major challenges on supply side 
and demand side.
Constraints
Supply Side 
Constraints
Demand side 
constraints

1
Commissioning of capacity enhancement works
2
Augmentation and Upgradation of infrastructure network
3
Augmentation and Upgradation of Rolling stock fleet
Strategies for overcoming Supply side constraints

1
Meeting demand of traffic by proactive interventions for attracting traffic
2
Dynamic pricing, assure transit time
3
Higher efficiencies
4
Diversification of commodity basket
5
Enhanced containerization
6
Enabling Piecemeal loading
7
Door to door services
Strategies for overcoming Demand side constraints

Action plan for Mission- 3000MT
Strong initiatives and robust inputs are warranted to address & 
overcome various constraints and challenges;
1
Addressing Infrastructural constraints
2
Addressing Rolling Stock constraints
3
Addressing Marketing, Pricing, Customer s

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