Railways Must Tap Lightweight Freight for Growth: FICCI-PwC
RAILWAYS & METRO RAIL

Railways Must Tap Lightweight Freight for Growth: FICCI-PwC

Consumer durables, FMCG products, electronics, e-commerce goods, automobiles, paper products, and pharmaceuticals continue to be transported primarily by road, and Indian Railways (IR) must recalibrate its operations and pricing strategies to actively target these fast-growing freight categories, according to a report by FICCI and PwC.
The report, "Unlocking Growth: Railway Freight Portfolio Diversification in India", points out that coal, cement, and iron and steel account for nearly 70 per cent of the total freight volume moved by rail, indicating a heavy reliance on a limited set of commodities.
To expand its freight portfolio, IR must either grow its share within these traditional categories or diversify into new, especially lightweight, segments. The report emphasised that this shift is essential if IR is to meet its ambitious targets of handling 3,000 million tonnes (MT) of freight annually by 2027 and achieving a 45 per cent rail modal share by 2030.
Lightweight and non-traditional freight such as two- and four-wheeler automobiles, packaged consumer goods, paper, and pharmaceuticals are expected to grow at nearly twice the rate of bulk commodities and are seen as the future of logistics. Yet, these continue to rely on road transport due to perceived limitations in rail services.
To make rail a viable option for such goods, the report recommends improvements in operational efficiency, reliability, availability of suitable wagons, competitive pricing, customer-centric services, and a tech-enabled ecosystem.
It acknowledged that substantial investment has been made over the past decade to expand rail infrastructure and capacity. However, to fully capitalise on this, the report calls for targeted efforts to facilitate the movement of lightweight goods and broaden IR’s freight mix beyond bulk commodities. 

Consumer durables, FMCG products, electronics, e-commerce goods, automobiles, paper products, and pharmaceuticals continue to be transported primarily by road, and Indian Railways (IR) must recalibrate its operations and pricing strategies to actively target these fast-growing freight categories, according to a report by FICCI and PwC.The report, Unlocking Growth: Railway Freight Portfolio Diversification in India, points out that coal, cement, and iron and steel account for nearly 70 per cent of the total freight volume moved by rail, indicating a heavy reliance on a limited set of commodities.To expand its freight portfolio, IR must either grow its share within these traditional categories or diversify into new, especially lightweight, segments. The report emphasised that this shift is essential if IR is to meet its ambitious targets of handling 3,000 million tonnes (MT) of freight annually by 2027 and achieving a 45 per cent rail modal share by 2030.Lightweight and non-traditional freight such as two- and four-wheeler automobiles, packaged consumer goods, paper, and pharmaceuticals are expected to grow at nearly twice the rate of bulk commodities and are seen as the future of logistics. Yet, these continue to rely on road transport due to perceived limitations in rail services.To make rail a viable option for such goods, the report recommends improvements in operational efficiency, reliability, availability of suitable wagons, competitive pricing, customer-centric services, and a tech-enabled ecosystem.It acknowledged that substantial investment has been made over the past decade to expand rail infrastructure and capacity. However, to fully capitalise on this, the report calls for targeted efforts to facilitate the movement of lightweight goods and broaden IR’s freight mix beyond bulk commodities. 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code