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Railways Taking a Step to Enhance Logistics Network
(Jan 18, 2008)
The two major considerations that companies would be taking on before the upcoming rail budget would be the freight rates and the amount of money that would be spent to create the freight corridors connecting New Delhi to Mumbai and Kolkata. Since the past few years, railways have lost a fair amount of market share to road transporters. Amongst this, another reason due to which railways could not invest much on enhancing its infrastructure lies in the fact that a heavy amount was spent on salaries as well as pensions every year.

Now the railway finances have become better to a great extent and market share is enhanced due to the stable freight rates. The building up of these freight corridors would simplify the task of moving goods in a great way and bring back the freight that are running on roads. Thinking of logistics solutions on a broader canvas, our rapidly developing country needs a highly planned as structured logistics plan that includes roads, rails, ports and air. With the dire need to enhance our entire logistics network, the railway budget would take a step forward.