It took staggering statistics of disasters and deaths for the rail ministry to finally take cognisance of the need for modernisation leading to transport safety, seamless logistics and smooth transactions. Monika Pal Bharti tells us what has bogged us down and why now is the critical time to pick up the implementation momentum.
Indian Railways has come a long way since 1853 when it first began its operations. It currently stands as the world’s third largest railways network with 7,083 railway stations, 131,205 railway bridges, 9,000 locomotives, 51,030 passenger coaches, 219,931 freight cars and 63,974 route kilometres. Each day, it operates 19,000 trains carrying 2.65 million tonnes of freight traffic and 23 million passengers, but has managed to add a relatively meagre 9,500 km track length during 50 years since Independence.
As a result, new passenger trains, additional coaches on existing trains and increase in frequency continue to burden the same 100-or-more-year-old infrastructure each year. The systemic vulnerability is evidenced by frequent incidents of wagon detachments, track breakÂages, signal malfunctioning or lack of functioning, leadÂing to 3-4 hours’ downtime everyday. Over the years, with the pressures of exponentially increased population and urbanisation, exacerbated by the poor financial health of Indian Railways, rail infrastructure has suffered. Severe underinvestment in upgradation, maintenance and lack of modernisation has sounded alarms over safety standards and concerns over the substantial loss in revenues.
With insufficient funds and after 1,600 deaths and 8,700 injuries to railway staff, 1,019 deaths and 2,118 injuries in train accidents during the period 2007-11, the Railway Ministry finally took note and set up two committees—the High Level Safety Review Committee headed by Anil Kakodkar, Chairman, HLSRC, and the Expert Group for Modernisation of Indian Railways under the chairmanship of Sam Pitroda—to recommend safety and modernisation methods. Both the Committees submitted their reports in February 2012.
Reversing near-bankruptcy
To improve operating efficiency and thus increase revenue generations, both the Committees have focused on upgradation of existing infrastructure, creation of new modernised infrastructure presuming that with this the operational efficiency will improve resulting in increased passenger and freight traffic and thus increased revenues and improved financial strength.
The Kakodkar Committee has recommended that the routine practice of introduction of new trains withÂout commensurate inputs in the already overloaded infrastructure should be stopped, as safety margins have been bursting at the seams over the years without proper maintenance. The nearly bankrupt financial status of Railways has not helped either: Wage bills, pension load and fuel costs have left precious little for investment in a proper maintenance system, relying more on ad hoc measures.
The Pitroda Committee has recommended that in order to improve efficiency with the same infrastructure and to positively influence the operating ratio, which hogs more than 93 per cent of revenues generated, modernisation of 19,000 km of existing track routes (40 per cent of total network, carrying 80 per cent traffic) is essential. Upgradation will improve freight carrying capacity and higher speed movement and therefore, operational efficiency. It has also recommended elimiÂnation of all level crossings, mandating fencing as an immediate requirement. Nearly 25 per cent of the bridges are more than 100 years old and are in dire need of strengthening. Such reinforcement will result in higher load sustainability at higher speeds and prevent mishaps. This also needs to be supplemented with 100 per cent automatic track maintenance.
The world is surging ahead with usage of information and communications technology (ICT) in various fields, but in India, railways continues to run on outdated, manually operated systems causing mishaps and ineffiÂcient operations. Wagon availability, allocation for evaÂcuÂation of freight, quality of passenger services and information will improve substantially if ICT is introÂduced in the operations by setting up Real time infoÂrmation systems, RFID tracking systems and other systems. This has also been suggested by the ModerÂnisation Committee.
The report notes that a majority of rail accidents happen due to human error in signalling, so manual signalling needs to be eliminated in favour of automatic block signalling with Train Management System. Onboard train protection system along with GSM based mobile train control communication systems require to be established.
The Committee also mentions that the revenue potential can be enhanced substantially along with improved safety, efficiency and passenger control if the rolling stock is modernised especially with investments in new generation locomotives, traction development for improved fuel efficiency, high speed potential LHB coaches, high speed intercity travel trains, heavy haul freight bogies etc.
Focusing on logistics, the modernisation expert group mentions that as customer satisfaction and addiÂtional traffic can be generated with setting up of new logistics parks and modern terminals which would ensure additional revenue generation and induce shift from road based freight movement to low cost and more environment friendly railways. For this purpose, 100 major stations require upgradation immediately and in all 770 stations require redevelopment during the next 10 years. At least 34 new multimodal logistics parks should be developed to provide integrated transport facility and existing top 50 terminals require moderÂnisation. This should happen in the next five years to have any measurable impact.
Kill freight uncertainty: One of the main causes for shift of freight (the bread and butter of Railways) to road transport has been the delay and uncertainty in delivery of goods at destination. Delays have cost cusÂtomers dearly—enough to force them to shift to the more predictable road transport, even while rail transport is cheaper. To induce shift in freight transport back to rail, the Committee has recommended that the North-South East-West, East Coast and Southern Dedicated Freight Corridors should be functional in the next 10 years. This will ensure increased speed capacity from the existing 25kmph to at least 60 kmph.
The Pitroda Committee suggests that Railways needs to prioritise ongoing projects on the basis of need and investments already made before new projects are announced. The new projects should also be launched after proper demand assessments and feasibility studies.
Railways have in-house capabilities to develop systems and technology for better operations and infraÂstructure, but existing facilities like the Research Designs and Standards Organisation (RDSO) require strengÂthening. Research centres with specific agenda for building indigenous capabilities and capacities require to be established – this has been recommended by the Safety Committee.
The Safety Committee has recommended setting up a statutory Railways Safety Authority and measures to strengthen the existing Railway Safety Commission. As RDSO is constrained for several reasons, the Committee has recommended setting up a Railway Research Development Council directly under the government. The Committee also recommended advÂanced signalling systems based on continuous track circuiting and cab signalling on the entire trunk routes of 19,000 km.
The Pitroda report has recommended investment of total Rs 822,671 crore over next five years to impÂlement its suggestions on modernisation. Primary being budgetary support to the tune of Rs 250,000 crore, Rs 201,805 from internal generation, capital to be raised from borrowings, Rs 16,842 to come from creation of a Road Safety Fund and 24,000 to be saved as dividend rebate and Rs 229,024 crore to be mobilised into the system by greater involvement from private sector participation. Even then a gap of Rs 16,469 crore remains to be funded.
Safety Committee’s suggestion to be implemented would require investment totalling to Rs 1 lakh crore over five years. It has also recommended a funding mechanism for this purpose, generating Rs 20,000 crore annually over the same period.
The Rail Budget 2012-13 with all good intent included and considered most of the recommendations but the ability to mobilise funds for execution remains to be seen especially after the partial roll back in passenger tariff which came after a gap of 12 years and change in portfolio Minister.
Indian Railways have a much higher freight cost to GDP ratio and higher environmental cost per route kilometre of freight and passenger traffic than in other countries, but can be an agent of inclusive growth and has the capacity to generate and contribute additional 1.5 to 2 per cent to the GDP.
It needs to be seen whether the Railways can pull this off and not be bogged down by implementation blues again. One of the recommendations made by Kakodkar Committee for the Railways is to extricate itself from the clutches of the Implementation Bug and follow the recommendations with the same intent with which they have been made. This is where lies the solution to the problems of Railways and means to prevent it from becoming another Air India story.
The author is Senior Vice President—Transportation, Advisory & Engineering Division, Feedback Infrastructure Services Pvt Ltd, consultants to the infrastructure sector.
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