Speech of Shri Lalu Prasad Introducing the ... - Indian Railways

Speech of Shri Lalu Prasad Introducing the ... - Indian Railways Speech of Shri Lalu Prasad Introducing the ... - Indian Railways

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Record Breaking Output in Freight Business 21. In the current year, we are fast moving towards establishing a new record of loading 668 million tonnes, with a historic growth of 11%. This is the second consecutive year when we have increased our market share with a growth rate higher than the growth rate of the economy. This record breaking performance has been possible through reduction in wagon turn round time and through additional loading of 4 to 8 tonnes per wagon. This has enabled an increase of 100 mt in our loading capacity and generation of over Rs.5,000 cr in freight revenues. This is the foundation of our financial turn around. 22. With the increase of just 1 tonne in the loading capacity of a wagon, our annual loading capacity goes up by about 1 crore tonnes. In the last two years, we have increased the loading capacity of key wagons by 4 tonnes per wagon and enhanced the Railways’ annual loading capacity by 4 crore tonnes. Further, by starting 23 tonne axle load BOXN freight trains on identified routes, we have made our presence amongst the few countries which run heavy axle load trains. I would like to congratulate the entire railway family and particularly, the civil and mechanical engineers for their historic achievement. Sir, due to these historic policy decisions, the unit cost of our freight traffic in the current year is lower than in 2001 not only on constant but also on current prices. Despite heavy increase in diesel prices and additional burden of thousands of crores of rupees on account of salaries and pension, Railways have reduced their unit cost which is a historic achievement. In a competitive environment, one can be successful only by sharing the benefits of reduction in per unit cost with customers. This is what we have done. 23. Sir, I am happy to inform the House that it has been decided to run 25 tonne axle load trains on two routes, for the first time in the Indian sub-continent, in the coming year as a pilot project. These primarily non-passenger routes are Dallirajhara to Bhilai and Daitari to Banspani. Next year, after taking stock, 23 and 22.3 tonne axle load trains will be introduced on important traffic routes, in a phased manner. Simultaneously, over the next five years, the feeder routes to the new freight corridor will be strengthened to make them fit for 25 tonne axle loads. 24. Sir, the changes made last year in the system of train examination have yielded positive results. Taking this further, on certain identified routes the validity of brake power certificate for closed circuit rakes has been increased from 6000 to 7500 km. With a view to increase the average lead of railway freight, Preferential Traffic Schedule has been modified and it has been decided that freight booked for distances beyond 800 kms. will be given priority within the class. 25. The development of terminals and execution of traffic facility works on the highest priority has been taken up in order to reduce the wagon turn round time. Efforts have been made to introduce round the clock working in major sidings and goods terminals and enable them to handle full rakes. Apart from this, the system for wagon maintenance and freight train examination and also crew links and locomotives of trains are being rationalized. In fact, the team-work, coordination and synergy of the various departments in the Railways has enabled this historic achievement. 26. To maintain double digit growth in the coming year, these measures would be further intensified. To ensure continued improvements in the wagon turn round time adequate fund allocation would be made to terminal improvement and traffic facility works. Information technology as a management tool would be extensively used in freight transportation, to enable a keen watch to be kept on the rakes, effective pipeline management and terminal management. 6

27. In order to meet the rising demand of traffic, an increase of about 25% will be made in the wagon manufacture next year. In addition to this, thousands of new wagons will be got manufactured and made available for traffic through wagon investment scheme and new container train operators. It is expected that the largest number of wagons will be manufactured in the year 2006-07 and a new milestone will be established. Considering the pace of growth of our freight traffic, expansion of the production capacity of wagons in the near future is essential. Similarly, it is proposed to increase the production of electric locomotives by 17% and diesel locomotives by 5%. Production of high power locomotives is also being increased to ensure optimum utilisation of line capacity. Reduction of Losses in Passenger Business 28. Sir, we have succeeded in increasing profits in the freight segment by adopting the “increase volumes- reduce unit costs” strategy. It has been decided to adopt the same strategy in the passenger business too, and work towards cutting losses. It has been decided to cut down losses in the coaching services by about Rs. 1000 cr in the coming year and by 50% in the next three years by increasing the number of coaches and occupancy of trains, reducing travel time and reducing losses in the catering and parcel segments. 7

Record Breaking Output in Freight Business<br />

21. In <strong>the</strong> current year, we are fast moving towards establishing a new record <strong>of</strong><br />

loading 668 million tonnes, with a historic growth <strong>of</strong> 11%. This is <strong>the</strong> second<br />

consecutive year when we have increased our market share with a growth rate higher<br />

than <strong>the</strong> growth rate <strong>of</strong> <strong>the</strong> economy. This record breaking performance has been<br />

possible through reduction in wagon turn round time and through additional loading <strong>of</strong><br />

4 to 8 tonnes per wagon. This has enabled an increase <strong>of</strong> 100 mt in our loading<br />

capacity and generation <strong>of</strong> over Rs.5,000 cr in freight revenues. This is <strong>the</strong> foundation<br />

<strong>of</strong> our financial turn around.<br />

22. With <strong>the</strong> increase <strong>of</strong> just 1 tonne in <strong>the</strong> loading capacity <strong>of</strong> a wagon, our annual<br />

loading capacity goes up by about 1 crore tonnes. In <strong>the</strong> last two years, we have<br />

increased <strong>the</strong> loading capacity <strong>of</strong> key wagons by 4 tonnes per wagon and enhanced<br />

<strong>the</strong> <strong>Railways</strong>’ annual loading capacity by 4 crore tonnes. Fur<strong>the</strong>r, by starting 23 tonne<br />

axle load BOXN freight trains on identified routes, we have made our presence<br />

amongst <strong>the</strong> few countries which run heavy axle load trains. I would like to<br />

congratulate <strong>the</strong> entire railway family and particularly, <strong>the</strong> civil and mechanical<br />

engineers for <strong>the</strong>ir historic achievement. Sir, due to <strong>the</strong>se historic policy decisions, <strong>the</strong><br />

unit cost <strong>of</strong> our freight traffic in <strong>the</strong> current year is lower than in 2001 not only on<br />

constant but also on current prices. Despite heavy increase in diesel prices and<br />

additional burden <strong>of</strong> thousands <strong>of</strong> crores <strong>of</strong> rupees on account <strong>of</strong> salaries and pension,<br />

<strong>Railways</strong> have reduced <strong>the</strong>ir unit cost which is a historic achievement. In a competitive<br />

environment, one can be successful only by sharing <strong>the</strong> benefits <strong>of</strong> reduction in per<br />

unit cost with customers. This is what we have done.<br />

23. Sir, I am happy to inform <strong>the</strong> House that it has been decided to run 25 tonne<br />

axle load trains on two routes, for <strong>the</strong> first time in <strong>the</strong> <strong>Indian</strong> sub-continent, in <strong>the</strong><br />

coming year as a pilot project. These primarily non-passenger routes are Dallirajhara<br />

to Bhilai and Daitari to Banspani. Next year, after taking stock, 23 and 22.3 tonne axle<br />

load trains will be introduced on important traffic routes, in a phased manner.<br />

Simultaneously, over <strong>the</strong> next five years, <strong>the</strong> feeder routes to <strong>the</strong> new freight corridor<br />

will be streng<strong>the</strong>ned to make <strong>the</strong>m fit for 25 tonne axle loads.<br />

24. Sir, <strong>the</strong> changes made last year in <strong>the</strong> system <strong>of</strong> train examination have yielded<br />

positive results. Taking this fur<strong>the</strong>r, on certain identified routes <strong>the</strong> validity <strong>of</strong> brake<br />

power certificate for closed circuit rakes has been increased from 6000 to 7500 km.<br />

With a view to increase <strong>the</strong> average lead <strong>of</strong> railway freight, Preferential Traffic<br />

Schedule has been modified and it has been decided that freight booked for distances<br />

beyond 800 kms. will be given priority within <strong>the</strong> class.<br />

25. The development <strong>of</strong> terminals and execution <strong>of</strong> traffic facility works on <strong>the</strong><br />

highest priority has been taken up in order to reduce <strong>the</strong> wagon turn round time. Efforts<br />

have been made to introduce round <strong>the</strong> clock working in major sidings and goods<br />

terminals and enable <strong>the</strong>m to handle full rakes. Apart from this, <strong>the</strong> system for wagon<br />

maintenance and freight train examination and also crew links and locomotives <strong>of</strong> trains<br />

are being rationalized. In fact, <strong>the</strong> team-work, coordination and synergy <strong>of</strong> <strong>the</strong> various<br />

departments in <strong>the</strong> <strong>Railways</strong> has enabled this historic achievement.<br />

26. To maintain double digit growth in <strong>the</strong> coming year, <strong>the</strong>se measures would be<br />

fur<strong>the</strong>r intensified. To ensure continued improvements in <strong>the</strong> wagon turn round time<br />

adequate fund allocation would be made to terminal improvement and traffic facility<br />

works. Information technology as a management tool would be extensively used in<br />

freight transportation, to enable a keen watch to be kept on <strong>the</strong> rakes, effective pipeline<br />

management and terminal management.<br />

6

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