Trucks vs Trains for freight

Theloststory

Well-Known Member
Just wondering, why ar there so many long distance trucks carrying freight/cargo in India. Why doesn’t so much of it g by train? We have one of the best train networks in the world.

Does anyone have a personal experience?

I have sometimes send small stuff by train it’s fairly decent.
 

adsatinder

explorer
For one product, you can send via any medium.
For a business / industry they need site to site delivery Service Wth a Delivery home to home / factory to godown / Distributors to dealer godown, they all need a reliable service without much problem.
With different mediums of delivery it is now logistics service in working now.
Now transport service is also useless.
Complete delivery Service is called Logistics company.

These are costly but not much hassles are there.
 
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Trains are unreliable as transportation options. For mumbai to delhi, it may take up any time from 2-7 days by train. there is no guarantee by Railways on the time for delivery. Passenger trains have first right on the route, so goods trains take their own sweet time.

So Perishable items and even lot of consumer durable companies prefer road transport, which guarantees two day delivery.
 

adsatinder

explorer
Last Updated : Sep 12, 2019 09:34 PM IST | Source: Moneycontrol.com

Blackstone Group to invest Rs 1,500 cr to build warehouses in India: Report
So far this year, the sector has already seen an investment of $266 million.
Moneycontrol News@moneycontrolcom



Allcargo

Blackstone Group is looking to invest Rs 1,500 crore ($209 million) to build warehouses in India in partnership with the country's largest logistics provider in the private sector, Allcargo, reported Bloomberg.
As per sources in the report, talks are on with other investors as well. But as of now, the realty unit of the US-based asset management company might own a majority stake in the venture at 51 percent.
India has become an attractive location for warehousing business as e-commerce companies like Amazon and Walmart are spending billions to expand in the market. Ernst & Young LLP had predicted in its report that companies will invest $7.8 billion in warehouses in South Asian countries alone by the end of 2020. So far this year, the sector has already seen an investment of $266 million.
Easing this expansion in the storage spaces is the nationwide tax regime in the form of goods and service tax (GST). Retailers and especially e-retailers want to ensure fast delivery and want to invest in warehouses that directly impact their business.

EY also points out that apart from the emergence of an organized retail sector, warehousing in India is driven by increasing international trade with more private and foreign investments in infrastructure, growing manufacturing, and rising domestic consumption.
The company plans to have 5 million square feet of warehouses across India by 2021 as part of its logistics division plan, pointed out the report.


Blackstone Group to invest Rs 1,500 cr to build warehouses in India: Report
 

Theloststory

Well-Known Member
“It is a universally acknowledged fact that the cost of logistics is very high in India. Some estimates put it at about 13 per cent of GDP, which is higher than the US (9) and Germany (8). A study by Assocham-Resurgent India (2016) stated that the country can save $50 billion if logistics costs reduce from 14 per cent to 9 per cent of GDP. Reduced logistics costs would bring down prices of products.”


The fact is, it seems, trains are a better alternative, but 60% of goods are sent via road. Looks like a good time to start a logistics company, something which can also lobby to get rail freight into the picture.
 

adsatinder

explorer
Budget 2019: Rs 50-trn investments in Railways by 2030; PPP model allowed
Private investments are being pushed thanks to the Rs 50-trillion investment required between 2018 and 2030, which the government would find difficult to generate by itself
Shine Jacob & Jyoti Mukul | New Delhi Last Updated at July 6, 2019 02:20 IST


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railways



The Indian Railways will depend heavily on public-private partnership (PPP) projects for growth despite its past record of slow pace in attracting investors.
Union Finance Minister Nirmala Sitharaman pointed out sectors for PPP projects that were not open earlier. Private investments are being pushed thanks to the Rs 50-trillion investment required between 2018 and 2030, which the government would find difficult to generate by itself.
“Given that the capital expenditure outlays of the Railways are around Rs 1.5-1.6 trillion, completing all sanctioned projects would take decades. It is, therefore, proposed to use public-private partnerships to unleash faster development and completion of tracks, rolling-stock manufacturing and delivery of passenger freight services,” said Sitharaman during the Budget speech on Friday.
At present, engines and wagons that are part of railway rolling stock are the ones that are manufactured privately. Laying tracks and railway services have not been opened up yet though private port railways are operational in some stretches.
As much as Rs 28,100 crore is expected to come during the current year from PPP initiatives. This will include station redevelopment.
According to Rajaji Meshram, partner, EY India, however, a steep jump in private sector investment will be difficult in the current situation, where the Indian Railways in both the operator and regulator.
“With government investment in the range of Rs 1.5 trillion per annum in railways, the triple increase is targeted through private sector involvement. To make this happen, the establishment of an independent railway regulator is essential,” he said.
The Budget estimates government investment in railways to increase by a good 24 per cent to Rs 65,837 crore from Rs 53,060 crore in 2018-19. At the same time, borrowings through Indian Railway Finance Corporation are expected to go up to Rs 55,471 crore from Rs 52,297 crore in 2018-19.
In 2018-19, the capital expenditure was Rs 1.38 trillion, comprising Rs 53,060 crore from budgetary support, Rs 6,500 crore from internal resources and Rs 79,297.52 crore from extra-budgetary resources.
This meant that little over 38 per cent of the railway capital expenditure was met through government resources; this has increased to 41 per cent.
For the current year, the government is hoping to bring in efficiency in railway operations, reflected in improved operating ratio of 95 per cent over 97.3 per cent last year.
Sitharaman's maiden Budget gives a massive boost to rail infrastructure

The railways are banking on a 10 per cent increase in gross traffic receipts to Rs 2.17 trillion for 2019-20 over the Revised Estimates 2018-19. While the passenger earnings at Rs 56,000 crore are based on a 2.9 per cent growth in originating passengers, the goods earnings at Rs 1.43 trillion are keeping in view an incremental loading of 58 million tonne of revenue earning freight and an average freight lead of 564 kilometre.
Other coaching earnings and non-traffic earnings are expected to be Rs 6,000 crore and Rs 11,575 crore, respectively, keeping in view the focus of the Railways on increasing the share of non-fare revenue sources of income.
Sitharaman also gave the railway infrastructure an important link with urban transit systems by stating it the railways would encouraged to invest more in suburban railways through special purpose vehicle (SPV) structures such as Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut route.
“I propose to enhance the metro-railway initiatives by encouraging more PPP initiatives and ensuring completion of sanctioned works, while supporting Transit Oriented Development (TOD) to ensure commercial activity around transit hubs,” she said.
Besides, the dedicated freight corridor project would get emphasis in order to free up some of the existing railway network for passenger trains.



Budget 2019: Rs 50-trn investments in Railways by 2030; PPP model allowed
 

deepam

Super User
“It is a universally acknowledged fact that the cost of logistics is very high in India. Some estimates put it at about 13 per cent of GDP, which is higher than the US (9) and Germany (8). A study by Assocham-Resurgent India (2016) stated that the country can save $50 billion if logistics costs reduce from 14 per cent to 9 per cent of GDP. Reduced logistics costs would bring down prices of products.”

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The fact is, it seems, trains are a better alternative, but 60% of goods are sent via road. Looks like a good time to start a logistics company, something which can also lobby to get rail freight into the picture.
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The higher cost of logistics is, thanks to:
  1. Bad roads
  2. Overloaded vehicles / Slow speed.
  3. No emphasis on safety by logistics company and even the government.
  4. Of course not to forget the terror on roads by the enforcement agency.
  5. Just see the life of Truckers, how much hardship they face.
Konkan Railway in order to improve their goods revenue came up with his unique service Ro-Ro. This successfully working connecting Surathkal [near Mangalore], Verna [Goa] and Kolad [near Panvel].
Konkan Railway

There has to be a dedicated twin line between Delhi - Mumbai, Kolkata - Delhi, Chennai - Nagpur - Delhi and Chennai - Bangalore. Then on this let Ro-Ro service be rolled on!!
Every day if 4-5 trips start from each location; around 300-500 trucks will be off the road in each line. This will enable the movement of goods at faster.
 
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