Business Standard

<b>Letters:</b> Railways' freight burden

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Business Standard New Delhi
This refers to the report "Rlys needs more steam for cargo edge" (March 7). Unfortunately, the Indian Railways is steadily losing its competitive edge to the roads sector with every freight increase. This will continue for some time till the populist policies of successive railway ministers get gradually corrected - the most important being their refusal to increase passenger fares for the last decade. At last, Pawan Kumar Bansal has bitten the bullet and raised the fares by 30 per cent. However, keeping up with inflation, the increase should have been almost double. The introduction of over 3,000 new passenger trains over the last two decades has not only compounded losses of the passenger business, forcing freight to cross-subsidise, it has also crowded freight trains, leading to their average speeds dropping to an abysmal 20 kmph. The Railways has never been a serious contender for freight over small distances, say less than 500 km, long-haul being one of its USPs. In that area, it will always win hands-down, anytime, anywhere.
R C Acharya New Delhi
 
Former Member, Railway Board

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First Published: Mar 07 2013 | 9:03 PM IST

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