Challenges and strategies in bulk cargo transport
RAILWAYS & METRO RAIL

Challenges and strategies in bulk cargo transport

The Indian Railways, historically a cost-effective means of transporting bulk cargo, faces challenges that demand strategic policies and initiatives. The Government of India recognises the need for reduced logistics costs and eco-friendly transport options. To address these issues, two key policies have been formulated: the PM GatiShakti (PMGS) policy for a National Master Plan (NMP) and the National Logistics Policy (NLP).

The PMGS aims to create a seamless multi-modal transport network in India, utilising technology and IT tools for coordinated infrastructure planning. The NLP focuses on building a national logistics portal and integrating platforms of various ministries. While specific details on PMGS remain scarce, initiatives within the Indian Railways have been introduced. These include relaxed rules for bulk cargo movement, the introduction of mini rakes, private freight terminals (PFTs), and collaboration with freight operators to invest in specialised wagons.

Despite these efforts, the IR's share in bulk cargo transport has declined. Factors such as decentralised production and high costs associated with railway sidings have contributed to this decline. Smaller industries find it challenging to manage rail sidings, leading to increased logistics costs and a preference for alternative transport modes. To address this, common-user facilities need to be developed at cargo aggregation and dispersal points, requiring collaboration between the IR and state governments.

Additionally, environmental concerns pose constraints on IR's operations. Commodities like fly ash, with vast potential for transport, have been underutilised due to the lack of loading facilities at power plant sidings. The IR must proactively address this issue and liberalise wagon designs to accommodate new commodities efficiently.

Furthermore, recent regulations mandating environmental clearance for rail loading/unloading facilities have imposed additional costs, leading some users to opt for road transport. To level the playing field, regulations should be mode-agnostic and based on the quantity of cargo loaded and the potential for environmental impact.

In conclusion, enhancing the IR's role in bulk cargo transportation requires comprehensive policies, collaboration with state governments, proactive measures to tap into new commodity potentials, and mode-agnostic environmental regulations. By addressing these challenges, the Indian Railways can optimise its services, reduce logistics costs, and contribute significantly to sustainable and efficient transportation in the country.

The Indian Railways, historically a cost-effective means of transporting bulk cargo, faces challenges that demand strategic policies and initiatives. The Government of India recognises the need for reduced logistics costs and eco-friendly transport options. To address these issues, two key policies have been formulated: the PM GatiShakti (PMGS) policy for a National Master Plan (NMP) and the National Logistics Policy (NLP). The PMGS aims to create a seamless multi-modal transport network in India, utilising technology and IT tools for coordinated infrastructure planning. The NLP focuses on building a national logistics portal and integrating platforms of various ministries. While specific details on PMGS remain scarce, initiatives within the Indian Railways have been introduced. These include relaxed rules for bulk cargo movement, the introduction of mini rakes, private freight terminals (PFTs), and collaboration with freight operators to invest in specialised wagons. Despite these efforts, the IR's share in bulk cargo transport has declined. Factors such as decentralised production and high costs associated with railway sidings have contributed to this decline. Smaller industries find it challenging to manage rail sidings, leading to increased logistics costs and a preference for alternative transport modes. To address this, common-user facilities need to be developed at cargo aggregation and dispersal points, requiring collaboration between the IR and state governments. Additionally, environmental concerns pose constraints on IR's operations. Commodities like fly ash, with vast potential for transport, have been underutilised due to the lack of loading facilities at power plant sidings. The IR must proactively address this issue and liberalise wagon designs to accommodate new commodities efficiently. Furthermore, recent regulations mandating environmental clearance for rail loading/unloading facilities have imposed additional costs, leading some users to opt for road transport. To level the playing field, regulations should be mode-agnostic and based on the quantity of cargo loaded and the potential for environmental impact. In conclusion, enhancing the IR's role in bulk cargo transportation requires comprehensive policies, collaboration with state governments, proactive measures to tap into new commodity potentials, and mode-agnostic environmental regulations. By addressing these challenges, the Indian Railways can optimise its services, reduce logistics costs, and contribute significantly to sustainable and efficient transportation in the country.

Next Story
Infrastructure Urban

Coal Ministry Achieves Milestones under Special Campaign 5.0

The Ministry of Coal and its Public Sector Undertakings (PSUs) have achieved notable milestones under the Special Campaign 5.0, focusing on cleanliness, operational efficiency, and sustainability across the coal sector. During the implementation phase from 2–31 October 2025, over 1,205 sites were cleaned, covering 68,04,087 sq ft, nearing the target of 82,51,511 sq ft. Scrap disposal of 5,813 MT against a target of 8,678 MT generated Rs 228.7 million in revenue. In addition, 1,11,248 physical and 30,331 electronic files were reviewed, with 74,123 weeded out or closed. Key initiatives showc..

Next Story
Infrastructure Energy

Vesting Orders Issued for Three Coal Blocks under Commercial Auctions

The Ministry of Coal’s Nominated Authority has issued vesting orders for three coal blocks under commercial coal block auctions on 23 October 2025. The Coal Mine Development and Production Agreements (CMDPAs) for these mines were earlier signed on 21 August 2025. The three blocks include Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Of these, two are partially explored while one is fully explored, with a combined peak rated capacity of around 1 MTPA and geological reserves of approximately 1,484.41 million tonnes. These mines are expected to generate annual revenue of abou..

Next Story
Infrastructure Urban

TEC, IIT-Hyderabad Partner to Boost 6G and Telecom Standards

The Telecommunication Engineering Centre (TEC), technical arm of the Department of Telecommunications (DoT), has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Hyderabad (IIT Hyderabad) for joint research and technical collaboration in advanced telecom technologies and standardisation. The partnership focuses on developing India-specific standards and test frameworks for next-generation networks, including 6G, Artificial Intelligence (AI), and Non-Terrestrial Networks (NTNs). It also aims to enhance India’s participation in international standardisation f..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?