India has the fourth largest railway network in the world, earning huge revenues from both passenger and freight operations. Indian Railways is facing a reduction in earnings; hence the need for a turnaround.
Freight, infrastructure
India’s manufacturing sector is expected to boom and, consequently, demand for freight is set to increase. But freight movement is facing various bottlenecks and congestion and is plagued by operational inefficiencies. Also, the increase in competition from trucks calls for improvement of the following aspects:
The number of dedicated freight corridors for various sectors must be increased. For example, catering to the high demand for coal evacuation in regions such as Jharkhand and Orissa, a higher number of freight carriers should be provided. Double-decker freight trains will also improve efficiency and reduce the cost of transportation. This way, working expenses and operating ratios will also come down. New lines must be created and freight routes introduced to connect major production centres to distribution centres in the FMCG sector.
Introducing high-speed goods trains for longer distances, and lines connecting major cities would be vital. The Railways could also introduce smaller, efficient and less power-consuming freight carriers for smaller distances.
Managerial structure
Management is key to any kind of improvement. Indian Railways could train personnel for efficient handling of goods, as well as for various crisis management situations.
They could also conduct logistics skills development for warehouse managers, logistics managers and other personnel in the field. Furthermore, creating a dedicated committee for regular infrastructure maintenance is vital.
Technology-related features
The tech-based improvements following must be put in place on all trains:
~ Fire alarms in every freight carriers to reduce the risk
~ Sensor-based real time warning systems to prevent collisions
~ Implementing IT for efficient and faster loading/unloading of goods resulting in on-time deliveries
~ Implementing ERP (enterprise resource planning) for overall efficiency and increase in speed of transportation
~ Providing insurance facility for goods transported using railways
~ Using ERP systems to effectively predict delivery time and committing the same to the customers
~ Taking regular feedback and reviews from customers to improve relationship
~ Providing annual contracts for bulk freight services at discounted prices for loyal customers
Cleanliness, safety
There have been constant complaints about cleanliness and hygiene in the Indian Railways. Therefore, on demand cleaning services and facilities at all times, other than regular cleaning of berths, as well as surprise visits for kitchen inspection to maintain hygiene, must be introduced.
Fire extinguishers and first-aid kits should be readily available in every compartment, CCTV cameras installed in passageways, and security personnel must be stationed on each train to handle any issue when needed.
Facilities
The Railways can improve its image and popularity among travellers if it were to:
Offer Wi-Fi facility free of cost for first, second and third AC compartments
Launch an in-train app for meal booking/delivery, cleaning of coaches, calling for security back-up and providing feedback
Enable real-time location information for all trains
Provide free bus service from major bus stations to train stations for long-journey passengers
Provision of services
Long journeys require all kinds of services. Some recommendations would be providing filtered water systems, collaborating with a range of food vendors or local hotels to serve meals on long journey trains as per demand. This could be done by providing options to book meals at the time of booking the tickets for every long-distance train and also while travelling, via an in-train app.
The Railways could launch passenger loyalty cards with annual subscription that get the traveller discounts, and help them earn points for each booking made by the passenger, which can be redeemed in the future for the next booking.
Power of advertising
Good revenue can be earned by increasing the number of trains under the advertisement licence agreement, introducing advertisements in the in-train app and on the WiFi login page.
The Railways can collaborate with various companies for free sample distribution of new products, charge a fee per transaction from food vendors for serving meals on the trains.
It would be a smart move to increase the number of trains that focus on tourism and introduce value-additions in the special trains planned for travel within the various wildlife sanctuaries.
(The second runners up are PGP 2015-2017 students at IIM Indore)