Strategies for Improving Indian Railways’ Market Share of Port Based Coal Traffic: A Diagnostic Study

Abstract

India is a vast country. After its independence in 1947, it steadily lost its position in international trade. With the beginning of economic liberalization in 1991, it has taken new initiatives in integrating itself with the world economy. Import restrictions have been removed for many commodities. One of the major impacts of liberalization has been on infrastructure: railways, roadways, ports and airports. Significant changes have also taken place in the composition of imported and exported commodities. Due to these changes, new challenges are being faced on the infrastructure front. One of the challenges is to rectify the mismatch of available infrastructure at ports where a modal change of commodities that are either imported or exported takes place. This paper examines such issues with a specific focus on improving infrastructure required for integration of railways and ports. This is achieved by focusing on coal which is a commodity that (i) brings significant revenues to Indian Railways, and (ii) is witnessing increasing imports. In this diagnostic study, we discuss the problems faced by Indian Railways and identify ways to increase its market share of coal movement between ports and the hinterland.