Railways Panel Calls for Zone-Specific Strategy to Lift Freight Traffic

The Parliamentary Standing Committee on Railways has urged the Railway Ministry to adopt a more targeted approach to freight growth, asking for separate strategies for individual railway zones, particularly those that have weaker industrial activity and limited mineral traffic.

The recommendation comes as Indian Railways looks to strengthen its freight business through infrastructure expansion, better connectivity and greater participation from private players. The committee has also called for a more systematic review of freight pricing so that railway rates remain aligned with changing market conditions and logistics costs.

Focus on Zone-Level Freight Potential

In its ninth report, recently placed before Parliament, the committee reiterated its earlier recommendation that railway zones should develop strategies suited to their individual freight potential.

The panel noted that freight opportunities differ considerably from one region to another. While some zones benefit from strong mineral and industrial traffic, others have fewer large freight-generating industries. A uniform approach, therefore, may not be sufficient to unlock demand across the network.

The committee wants the Railway Ministry to identify opportunities within individual zones and formulate measures capable of attracting additional commodities and customers to rail transport.

Infrastructure Expansion Gains Support

The committee welcomed ongoing efforts to increase railway capacity through multi-tracking projects, Dedicated Freight Corridors and upgrades at railway yards.

Dedicated Freight Corridors have become an important part of India's freight strategy because they allow goods trains to operate on dedicated routes and help reduce dependence on heavily used conventional railway lines.

However, the panel stressed that the benefits of these major corridors will depend partly on how effectively they are connected to industrial centres and other freight-generating locations.

Indian Railways is consequently strengthening feeder routes linking industrial hubs with the Dedicated Freight Corridor network. Such connections are expected to make it easier for businesses located away from the main freight corridors to access rail-based logistics.

Freight Train Operations Show Growth

Data presented by the Railway Ministry showed a significant increase in the average number of freight trains operated each day.

The figure rose from 4,968 trains per day in 2021-22 to 6,789 in 2024-25. The increase reflects the expansion of freight operations as well as efforts to improve railway infrastructure and operational efficiency.

Freight train speeds, however, remain an important area of attention. During 2024-25, the average freight train speed on Dedicated Freight Corridors was reported at around 37 kmph, compared with 23.8 kmph across the conventional railway network.

The difference highlights the potential of dedicated infrastructure to improve cargo movement, while also underlining the need to strengthen connections between DFCs and the wider railway network.

Committee Seeks Regular Freight Rate Reviews

Pricing has emerged as another major issue in the committee's assessment of railway freight performance.

The panel has recommended a structured annual review of freight rates rather than relying on occasional changes. Such reviews, it said, should consider factors including demand for individual commodities, competition from other modes of transport, logistics expenses and railway operating costs.

The recommendation is significant because freight revenue plays a major role in Indian Railways' finances. Earlier committee assessments had noted that freight contributes roughly 65% of railway earnings and helps support passenger services.

The committee has also highlighted differences in freight revenue performance among zones, strengthening its argument for targeted measures rather than a single nationwide strategy.

Diversifying Beyond Coal

Coal continues to form a major part of Indian Railways' freight business, with the committee noting its substantial contribution to freight earnings.

While the Railways has prioritised the availability of rakes and wagons for coal transportation, the panel has also called for greater efforts to expand rail's share in other freight categories.

Automobiles, fast-moving consumer goods and e-commerce shipments were among the areas identified as having potential for greater rail movement. Expanding these segments could help reduce dependence on a relatively narrow commodity base and create additional sources of freight revenue.

The committee has also sought clarification on whether the National Coal Logistics Plan and Policy can contribute to modernising coal transportation through an integrated, multimodal logistics network.

Private Investment and Cargo Terminals

The panel has taken note of measures designed to bring private investment into freight infrastructure. It has specifically supported the Private Wagon Investment Scheme, which allows private participation in wagon capacity.

Modernising railway yards has also been identified as an important requirement. Some yards continue to lack adequate facilities for loading, unloading and storage, potentially limiting the efficiency of freight handling.

The committee has backed the expansion of Gati Shakti Cargo Terminals with private participation, with the objective of improving links between freight-producing regions, industrial centres and the railway network.

It has additionally asked the Railway Ministry for an update on the Public Private Partnership policy for railway connectivity and capacity expansion, introduced in 2012 and currently undergoing revision.

Crew Shortages Remain a Constraint

Operational manpower is another challenge that could affect freight growth.

The committee has asked the Railways to address shortages of train operating staff, particularly because adequate crew availability is essential for maintaining uninterrupted freight operations and improving train throughput.

The ministry reported that 28,769 Assistant Loco Pilot vacancies and 6,560 Goods Train Manager vacancies had been notified during 2024 and 2025. Recruitment against a substantial portion of the advertised Assistant Loco Pilot positions has already progressed, with the ministry expecting the process to ease staffing constraints.

The latest recommendations build on the committee's earlier examination of freight earnings, pricing, wagon availability, terminals, coal transportation, infrastructure capacity and Dedicated Freight Corridor connectivity.

The broader message is that expanding India's rail freight business will require more than new tracks and corridors. Zone-specific planning, competitive pricing, efficient terminals, stronger feeder links, diversified cargo and adequate operating staff will all be important if Indian Railways is to capture a larger share of the country's growing logistics demand.