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Railway Revenue Optimization Strategies & Statistics Handbook

Explore innovative earning enhancing schemes by Sanjay Upreti, PAM, to leverage rolling stock assets. Analyze freight and passenger statistics, business share changes, introduction of new schemes, station rates, volume discounts, and sundry schemes.

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Railway Revenue Optimization Strategies & Statistics Handbook

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  1. Earning Enhancing Schemes Sanjay Upreti PAM

  2. Rolling Stock Assets

  3. Some Statistics • 89 % of freight is from 8 commodities. • 60% of originating passengers are suburban in metros but contribute only 10 % of passenger earnings and 20% of PKMs. • 13% are commuters in other cities and; • 27% are long distance travelers. • Upper class passengers consist of only 1% but contribute 20% of “P”earnings. • 95% reservation is through 700 terminals of PRS. • 99% of goods and 94 % of passenger revenue is on BG which accounts for 71% of total network.

  4. The HDN or golden quadrilateral comprises 16% of the network carries 65% of freight and 55 % of passenger traffic.

  5. 1991-92 to 2000-01Loss of Business Share • Cement from 57% to 43.10 % • Food grains from 16.4 to 13.57 • POL from 52.9 to 37.49 • Iron & Steel from 71.9 to 34.44 Increase of Business Share • Coal from 63.9 to 72.93 • Iron ore from 66.1 to 72.93 • Fertilizers from 66.6 to 74.17

  6. Introduction • Differentiate between • Alternate sources of Finance • Earning Enhancing Schemes • Three Categories • Freight Traffic • Passenger Traffic • Sundries

  7. Passenger Traffic Schemes • Long Trains. • Increased to 24 but ultimate goal is 26. • Loop can accommodate 26 • Platform. • Strength of screw Coupling. • Composition of trains. • Dynamic Pricing. • Holiday Specials. • Additional Coaches to clear WL. • Leasing of SLR • Parcel Trains

  8. Freight traffic Schemes • Station to station rates. • Volume Discount Scheme. • Roll on Roll off • Con Raj • Concept of Mini Rakes. • Freight Forwarder Scheme. • Marketing for non- bulk, non-bloc rake.

  9. Station To Station Rates • Under section 32 of IR Act 1989 special STS rates can be quoted by Railways. • Up to 10% by GM with Finance concurrence, beyond that by RB. • No reduction for goods of class 100 or below. • Distance should be > 100km • Not for Coal, Lignite etc. • Not less than 78.5 % of fully distributed cost and not less than rate for class 100. • Security deposit for committed loading.

  10. Volume Discount Rates • Started from 1998 • Concept of Benchmark • Discount if loading is more than 5% over Bench mark. • Two Groups • Cannot be given for loading that gets any other concession. • Cluster booking.

  11. Volume Discount Scheme

  12. Mini Rakes • Train Load rates are less than wagon load. • Jumbo rakes. • 40 BCN/BCX • 58 BOXN • 48 BTPN • 30 BOX • Mini rake consists of 20 wagons of BCX • Upto distance of 300 KMs

  13. Sundries Schemes • Leasing of space for advertisement. • IRCTC. • RAIL TEL. • Land Use. 17,000 hectares. LDA is proposed to be setup.

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