Railways forms business units to double freight traffic

In a new initiative, the Ministry of Railways has decided to form Business Development Units (BDUs) at the zonal level to attract road traffic and double its freight volume by 2024.

In a note to General Managers of all Zonal Railways, the Railway Board said there was an urgent need to work towards doubling freight volume being carried by the Railways in four years. “This would be possible only if railway’s share is strengthened in the traditional commodities being carried and a strong foray is made into miscellaneous non-bulk goods. This is a segment in which railways have limited knowledge and experience. However, this traffic is very large in volume and is mostly moving by road.”

All General Managers were told to set up zonal and divisional multi-disciplinary BDUs comprising senior officers from Operating, Commercial, Finance and Mechanical departments. These groups would have frequent interactions with trade and industry representatives to scout for, and attract traffic.

Frequent advertisements would be released in the national and regional media to publicise the fact that such BDUs were available and that the railway administration was keen to attract new streams of traffic.

At the Railway Board also, a BDU coordinated with top officials was formed to facilitate and clear proposals received from the zones in one week. Last month, the railways offered a 10% discount on round-trip bookings in freight trains to woo consignors and compete with the road transport sector.