Indian Experience: Multimodal Infrastructure Institutions for LCL/LWL and Parcel Traffic

1. INDIAN EXPERIENCE1.Multimodal Infrastructure Institutions2. LCL/LWL Traffic 3. Parcel Traffic By: Pravin Parmar Sr. Professor (T.M.) National Academy of Indian Railways

2. Transport Scenario of Parcel Traffic in India : Road & Rail: An independent view. Indian Foundation of Transport Research and Training (IFTRT) report of 2012 : • India's logistic cost as a percentage of GDP is as high as 13.5% . In developed countries, it is 7.5%. Even in BRIC countries it is 9.5%. • India's current GDP is 1886 billion dollars i.e. Rs.113 lac crores (1 dollar = Rs 60). This means, India's logistic costs @ 13.5% of GDP stands at Rs. 15 lac crores. • Out of this logistic cost, Warehousing and inventory costs are at 10 lac crores & the transportation (Road & Rail) costs are at 5 lac crores. • Amongst this 5 lacCrore, Road transport takes in 4 lac crores. (of which Parcel is 1.4 lac crores + freight 2.6 lac crores) & the balance is with Rail transport- Rs.1 laccrore (in which 99% from freight). Thus, IR, currently, has a dismal share (1828 crore) in a 1.4 laccrore Parcel traffic market !!

3. Earning Contribution 2014-15 (BE) Other Coaching 3 % Sundry 3 % Misc. 0.1% Pass. Earning 28 % Goods Earning 66%

4. THE FREIGHT BASKET - %AGE SHARE(2013-14)

5. Share Of Different Modes In India(In %age )

6. Intermodal share of freight traffic 6

7. Key Statistics of I R (2013-14) • 65,808 route kilometers • 59,600 Passenger Coaches • 10,499 locomotives • 2.45 lakh wagons • 7112 block stations • 13.34 lakh work force

8. Multimodal Infrastructure Institutions • Logistic service providing companies • Container Corporation of India Ltd • Private Container operation companies • RO RO operations by Railways • Central Rail side warehouse Company Ltd • Transport Logistic corporation of India (TRANSLOC)

10. LCL / LWL Traffic • Earlier IR used to carry LWL cargo – Smalls Traffic • Since early 80s IR closed this traffic and gone for block rake transportation. • Today IR caters only bulk cargo through block rakes. • For LWL/LCL cargo IR offers Parcel transportation services • For LWL traffic Railway offered a freight forwarder scheme. • Also started CONCOR in late 80s to cater demand for piecemeal traffic.

11. Parcels Transportation • IR runs 3362 Mail/Exp and 4298 Passenger trains daily. • These trains carry parcels in SLRs and VPs attached to these trains • IR also runs full parcel trains • IR share in Parcel traffic in India is merely 1 % • It contributes merely 1.1 % in IR’s total revenue

13. Parcels Transportation • Parcel business of Rs.1828 crores is achieved through : • SLRs of all passenger carrying trains : Luggage, Perishables, fruits and vegetables and Parcels booked in • VPs (indent & lease) : Fruits & Vegetables, Hard parcels • Parcel Trains (indent & lease) : General goods , Milk Tankers, Fruits (Bananas, Mango ), Automobiles.

14. Rail Transportation- Parcel Business In 2013-14, IR loaded 907 parcel trains, amounting to 2.5 parcel trains a day !! Total revenue from parcel trains is only 227 crores with average revenue of 25 lacs per train. We should have been running 100 parcel trains a day to cater to nation’s requirement of parcel transportation.

15. Issues in Parcel Transportation on IR • Parcels are dealt with at Passenger Terminals only hence hinders passenger movement. – Separate parcel terminals are now planned • Line Capacity issue – Parcel train vs Freight train • Carrying capacity of Parcel trains • Parcel handling at terminals particularly of white goods. • Transit time guaranty to customers • Requirement of specialized rolling stock for different cargo

16. Issues in Parcel Transportation on IR • First mile and last mile connectivity • Lack of total logistic solution to customer

17. PARCEL BUSINESS FUTURE • New Parcel policy issued by IR in 2014; • Parcel Management System

19. Sliding Wall Parcel Van:

21. Thank You