India's railway freight activity soars in Q4 2023

Moreover, the Freight Activity Optimism for Q1 2024 saw a notable increase, reaching 67 compared to 59 in Q4 2023, indicating a bullish outlook for the coming quarters. The IRFA index was particularly strong in the Northern railway zone, outperforming other mid-sized freight transporters.

Sector-wise, the metals & mining and electric & electronics sectors boasted the highest IRFA indices, reflecting robust freight activity in Q4 2023 and high optimism for Q1 2024. Notably, the Central and Eastern railway zones are anticipated to experience accelerated freight activity in Q1 2024 compared to other zones, as per Dun & Bradstreet.

Improvements in machinery availability and turnaround time for cargo handling and wagons were observed in Q4 2023, indicating enhanced efficiency in the freight logistics chain. However, freight users also reported an increase in freight costs in Q4 2023, with expectations of further rises in Q1 2024.

Arun Singh, global chief economist, Dun & Bradstreet, said: "Our survey uncovered two compelling insights. Firstly, railway freight transporters are encountering minimal network congestion, with only an average of 13 per cent respondents identifying it as a challenge for two consecutive quarters. This aligns with the government's ongoing initiatives to alleviate congestion in railway routes and promote the shift of freight transportation from roads to railways. In February 2024, the government approved six multi-tracking projects spanning six states, anticipated to enhance wagon turnaround time, decrease logistics costs, and yield other indirect benefits such as reduced CO2 emissions.

“Secondly, our survey underscores a growing consciousness among businesses, particularly large and mid-sized enterprises, regarding sustainability in freight transportation. Notably, over one-third of these businesses are opting for railways to promote environmental sustainability."

Fibre2Fashion News Desk (DP)