Indain Railway Five Year Plan Essay Example

several actions were implemented with the goal of sustaining growth momentum. To carry on this effort in the upcoming phase, our strategic plan for the Indian Railways concentrates on three key potential fields: Infrastructure, Freight Business Segment, and...

Indian Railways has developed a Five Year Strategic Plan for its Information Technology. The vision is to enhance and upgrade infrastructure, and utilize IT in daily operations to meet customer expectations and improve overall efficiency. The objectives include increasing transportation capacity for passengers and freight, improving the performance of rolling stock, and deploying IT for cost-effective solutions. Key areas of focus in the plan are infrastructure improvement and implementation of newer technologies, increasing market share in both bulk and non-bulk freight traffic, and reducing transit time for improved reliability and availability.

The Indian Railways is the second-largest network in the world managed under one entity and has a separate Ministry along with its own annual budget. Its main activities include transporting freight and passengers. The aim of deploying Information Technology is to improve customer service, signaling, tracking, and safety levels. This is part of the Five Year Strategic Plan3 Infrastructure introduced by Indian Railways. The network carried about 15.

In 2005-06 (2004-05), a total of 7 million passengers and 1.8 million tonnes of freight were transported daily on a network spanning 63,332 (63,465) km. The primary gauge used for freight movement is Broad Gauge (BG).

The conversion of Meter Gauge (MG) to Broad Gauge (BG) is becoming increasingly important despite its previous significance. A SWOT analysis for the Indian Railways infrastructure has revealed several strengths, including an extensive network, easy access to finance, high carrying capacity, optical

fiber right of way, significant investments, and the ability to track trains. Weaknesses include high human resources, wear and tear, outdated tracks, low maintenance investment in recent years, redundant technology, slow freight train speed, reduced flexibility against climatic changes and natural disasters, and poor condition of railway stations. Opportunities for improvement include high-speed corridors, freight corridors, optical fiber networks, tourism, increasing manufacturing SEZs, metro networks and broad gauge conversion. However the Lower safety levels and excessive use of a few networks may pose threats. The Indian Railways' Five Year Strategic Plan incorporates enhancing capacity with minimal capital expenditure and increasing productivity through increased wagon loading capacity and significantly reducing wagon turnaround time. This involves extending all siding to 650m to match the train length with 58 wagons to ensure simultaneous loading/unloading of all wagons.Loading and unloading were previously restricted to daytime hours, lasting a maximum of ten hours.

The Indian railways have made significant improvements in their loading and unloading speed, reducing the average time taken for loading from 30 hours to 16 hours and for unloading from 34 hours to 18 hours, with 24-hour operation. To meet the demand for high speed rail, metro rail, and freight corridors, new tracks can be laid down in Orissa, Chhatisgarh, and the northeast regions. To increase efficiency and reduce wear and tear of existing tracks, tracks should be upgraded and multiple tracks added in busy lines with high train frequency. Therefore, it is crucial to lay down more tracks to decrease load on existing lines and meet demand efficiently while maintaining optimal load.

Indian Railways has outlined several strategies in its Five-Year Strategic Plan. These include identifying

routes to convert from meter and narrow gauge to broad gauge, as well as laying additional tracks in high traffic areas to improve transportation and frequently upgrading existing tracks. Electrification of routes will also be prioritized wherever it is feasible. Furthermore, the railway system aims to identify low traffic routes for freight transport while implementing technology and modernization practices for tracks and railway crossings to improve safety standards. This includes deploying interlocking and signaling systems, upgrading track and rolling stock standards, implementing maintenance modernization practices, replacing aged assets, providing Anti-Collision Devices, and upgrading training aids such as simulators on high traffic routes.

Efforts are being made to facilitate booking processes and upgrade amenities, capacity, and facilities on trains. Additionally, there is a focus on improving the reliability of rolling stock and identifying corridors to meet the needs of growing SEZ's. Steps are also being taken to decrease daily operations and increase returns from passenger trains.

Efforts to improve train travel include procuring better wagons to increase freight train speeds, developing domestic technologies for engines, coaches, and wagons, and working towards high speed travel. Additionally, coaches will be equipped with modern and eco-friendly toilets while stations and coaches will receive proper mechanized cleaning.

The proposal includes achieving commercial utilization of the Railways Right of Way by completing a nationwide, broadband telecom and multimedia network through the laying of optical fiber cables under RailTel. Additionally, land utilization will be improved through PPP for current and future income prospects. The overall modernization and upgrading of profit-making zones such as South east central, North central, Central, South eastern, South Central, West Central, South Western, Western, Northern and East Central will take

place. Meanwhile, loss-making zones like metro Kolkata, North Eastern, Northeast Frontier, Eastern, Southern and North Western will undergo overhauling and restructuring.

The transportation of freight and passengers is a key activity of Indian Railways (IR), which carried approximately 15.7 (14.7) million passengers and 1. Additionally, IR's Five Year Strategic Plan includes the development and operation of a dedicated heavy-duty rail freight corridor, the development of terminals and warehousing facilities, the privatization of branch lines, and the establishment of rolling stock manufacturing facilities.

In 2005-06 (2004-05), 8 (1.) MT of freight were transported daily on a network spanning 63,332 (63,465) km. The main gauge for the movement of freight is Broad Gauge (BG), while Meter Gauge (MG), which used to be more significant, is now being increasingly converted to BG. In the same year, Indian Railways (IR) carried 667 MT of freight traffic that earned revenue, which was an increase of 110 MT compared to 2003-04. The revenue earned from additional freight during this period amounted to Rs 9172 crore.

An appropriate framework for market segmentation is necessary to examine the tremendous potential of IR in the freight business, as nearly two third of IR revenues come from freight traffic. This traffic can be broadly divided into two groups: 'bulk,' which encompasses seven commodities, and 'other goods,' which typically includes 42 commodities. Several measures have been taken to improve IR's share in freight traffic, including a rationalization of freight tariff structure, incentives for premier customers generating freight earnings of more than Rs 25 crore per annum for traffic originating from the sidings, policy to attract short lead traffic through higher freight concessions, computerization of freight movement

through Freight Operations Information System (FOIS), and provision of warehousing facilities through CWC and private freight terminals.An MOU has been signed in India to establish integrated freight terminals at 22 locations with the aim of improving port connectivity and inter-modal transport. Additionally, privatization of container movement on IR Freight Operations Information Systems (FOIS) has been implemented. As a gift for their freight customers, the Indian Railways launched a computerized FOIS, which covers most of the railway network, enabling customers to access real-time information about their consignments, promoting just in time inventory management.

FOIS is a freight movement management and control system that can help managers optimize asset utilization. It includes the Rake Management System (RMS) for operations and the Terminal Management System (TMS) for commercial transactions. The Indian Railways' Five Year Strategic Plan incorporates Porter's Model of the Indian Freight Industry, which suggests that the threat of substitutes is low to medium because the industry has already covered almost all modes of transport. The only potential substitute could be pipelines for oil transportation, while road transportation could replace rail transportation to some extent. The bargaining power of suppliers is low, while that of buyers is low to medium. Industry rivalry is influenced by fuel prices.

Fluctuations in coal and electricity costs make them volatile. The threat of substitutes is moderate to high as cost-cutting is essential to attract suppliers. Entry barriers are high as achieving the scale of transportation of Indian Railways requires significant investment and competition is stiff. Fixed prices exist for transportation, and buyers cannot bargain. The freight industry provides almost all modes of transport, except for pipelines that can be used for liquid or

gas items such as oil or natural gas, but not for conventional means like trucks or railways that transport items like coal, cement, or industrial products. Therefore, pipelines remain the only substitute mode of transportation, resulting in low threat from new substitutes.

Indian Railways have a Five Year Strategic Plan that includes analyzing the bargaining power of suppliers and buyers, as well as barriers to entry in the industry. The majority of suppliers and buyers are government agencies, resulting in low bargaining power for suppliers. However, in cases where the government is not involved, supplier bargaining power is low to medium. In the freight industry, where government involvement is predominant and rates are fixed, the bargaining power of buyers is low - even when buying in bulk. Barriers to entry in the industry are significant due to the high capital investment required for infrastructure and network building necessary to compete with existing competitors.

The industry experiences intense rivalry among firms that have unique competitive advantages. For instance, railways offer low rates and a deep network, while trucks provide door-to-door services and airways offer time effectiveness.

The companies are utilizing their competitive advantages to capture new markets, expanding their services while simultaneously cutting costs and improving infrastructure. The Freight Business has undergone a SWOT analysis that identifies strengths such as the use of the Freight Operations Information System, increased growth of freight traffic, and the provision of warehousing facilities. Other strengths include a focus on improving port connectivity and inter-modal transport, privatization of container movement, and a large infrastructure with predominantly fixed costs that remain independent of operations. Some weaknesses of the industry include overcharging the freight

segment without considering competition, increasing freight costs, freight policy regulations, availability of wagons that meet requirements, and overloading wagons beyond permitted axle loads, which damages rolling stock as well as tracks.

The high density east and west corridor is already saturated in terms of line capacity, which poses a challenge to the capacity and efficiency constraint. The cost of rolling stock is INR 13 crore per rake and the cost of inland container depot is INR 100 crore, making it a high capital incentive. There are also high start up challenges such as wagons, wheels, trained manpower, and rake. In addition, there is a long gestation period and high concentration of tariff at selected ports, with 78% of total container tariff at western coastal port and 70% of total container tariff at western coast handled by a single port, JNPT. Moreover, limited routes lead to congestion because 60% of the traffic of west coast moves to northern hinterland.

To take advantage of opportunities, passenger facilities, comprising coaches, track lines, railway stations, as well as designs of wagons for freight movement need improvement. Furthermore, visibility of cargo information dissemination can enhance customer responsiveness while reducing operating expenses and improving asset utilization.

Despite these opportunities, there are also threats such as improvement in road transportation system reducing railway transport share, increasing fuel costs, changing government policy and uncertainty of operational issues. The potential for running double stack trains provides an opportunity for lower handling charges and better utilization of rolling stock and track capacity. However, the dedicated freight corridor raises questions regarding when it will be implemented.The Service Guarantee outlines the steps to enhance the freight business

performance over five years. These measures include reducing turnaround time, increasing the usage of high power engines, providing better quality and dependable rolling stock for new wagons, and reducing loading and unloading time. Additionally, the plan aims to bolster transportation capacity by utilizing high-speed trains. The Indian Railways' Five Year Strategic Plan also includes an Information Technology Vision, with a goal to integrate technology in day-to-day operations for efficient and cost-effective solutions to meet customers' and internal expectations. The roadmap for this vision involves two primary components.

To effectively collect and disseminate information, rail operators need to automate their existing processes across all functional areas of business. The PRS and FOIS systems currently address automation requirements for their respective areas, while the MIS project and other departmental systems focus on process automation. The next stage is aimed at achieving synergy, where these separate systems can exchange information automatically by the end of a five-year period. Achieving these goals is essential as IT plays a crucial role in harnessing information for rail operators.

To harness the potential of information technology (IT), it is important to understand the needs of both internal and external stakeholders. The table below summarizes these needs and goals:

Functional Area Stakeholder Information Need/Goals Achievable through IT

External Stakeholders
Passenger Individual Passengers - Access to information on train services, fares, terms and conditions, and timetable - Availability of accommodation, ticketing, and reservations - Fare refunds - Information on train positions and timings
Travel and Tourism Agencies - Access to tourist trains - Ability to make bulk bookings
Freight Services Large consigners and consignees - Ability to make bulk bookings and arrange running schedules

- Access to train and cargo handling informationThe Indian Railways has a comprehensive monitoring system that encompasses various stakeholders including small consigners and consignees, procurers of rolling stock, freight consolidators, ports, postal services, and internal subsidiaries such as CONCOR, KRCL, and IRCTC. This system monitors booking availability, rates, specifications, costs, design variations, manufacture, delivery, movement planning, train operations, and logistics unit tracking. Additionally, the system provides information on policies, rate structures, financial data, routine work management through bench-marking and best practice information. Within the Indian Railways organization, employees function as managers for daily operations positions and provide planning information while internal customers rely on resource availability and internal suppliers to ensure the timely delivery of services. The Performance Review notes that the Indian Railways has successfully harnessed Information Technology to enhance the passenger interface.The Indian Railways are currently utilizing a variety of major IT applications which include the following:
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- Unify the text: The following list presents major IT applications currently in use by the Indian Railways:
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At present, the Passenger Reservation System (PRS) manages approximately 1 million daily transactions, generating a daily revenue of around 20 crore Rupees. Additionally, there are Freight Operations Information Systems (FOIS), Finance/Stores Computerization, and Unreserved Ticketing Systems (UTS).

Currently, Control Charting and Crew Management Systems are being used, but they have a major weakness - they are not integrated. As a result, the vast amount of information available separately on these systems cannot be used collectively to make effective decisions. Indian Railways: Five Year Strategic Plan13Gap Analysis states that the fragmentation of the data network is the single biggest bottleneck for effective deployment and

utilization of IT in the Railways. A data network with sufficient bandwidth and reach is necessary to provide seamless movement of information between locations without worrying about network details. Therefore, the most important IT resource needed is an integrated communication network. The lack of emphasis on adequate human resources has been the biggest obstacle in the Railways’ IT strategy so far.

Despite the presence of a large pool of talented personnel, there has been insufficient effort to acquaint them with IT concepts. Due to inadequate training, current computing resources are being underutilized. The need is for individuals with a comprehensive understanding of available technologies and their capabilities and limitations, rather than just programmers and hardware experts. Such individuals can then conceptualize the use of these technologies in their respective work areas. One important resource required by railways is an integrated resource network that connects all related systems and enables information sharing. All system resources should be shared and visible on-line to authorized users.

The establishment of a culture of cooperation and collaboration is crucial across the organization to enable idea sharing, collaboration, and unified efforts towards a common purpose. It is essential to maintain transparency for the sake of data reliability. Additionally, an integrated groupware application should run the current Railnet email system with pre-defined business rules, allowing for electronic document movement to enhance personal productivity. Furthermore, the GIS system could be leveraged for visualizing the outcomes of various components in the Railway Information framework.

There are two ways in which it will work: Resource Location and Analysis and Visualizing. Resources must be mapped on the GIS system for later retrieval, for example, track details, OHE, fixed

structures, level crossings, etc. Mapping will enable these resources to be easily retrieved during an emergency. The results of analysis on geographic parameters will be more comprehensible when shown on the GIS. Since most of the analysis done on the data will be related to the country's geography, mapping the results will be extremely helpful in decision-making, as outlined in the Indian Railways' Five-Year Strategic Plan14.

Efficiency can be improved in Railways maintenance organizations by implementing self-diagnostic equipment in all fixed assets or rolling stock. This concept of "condition based maintenance" should replace the current practice of scheduled maintenance. To achieve overall systemic efficiencies, it is important to avoid the "Garbage In, Garbage Out" phenomenon by eliminating the need to reenter data at various stages or locations. Quick computerization can be achieved by focusing on data capture and cleaning.

The implementation of a global data archive is necessary for error-free data in future transactions, and creating strongly typed back-end databases is the simplest way to achieve this. Computerizing other forms of ticketing, such as unreserved and monthly tickets, is essential for providing passengers with “anywhere anytime” services. PDA’s are an effective information resource for data collection from remote areas or while on the move. An internal tracking system to analyze passenger movement details generated by the PRS and ticketing systems can optimize services.

It is recommended to extend FOIS to all loading points and establish communication with customers' information systems, weigh bridges, etc. Gradual expansion of the payment gateway should be considered for more customers. Additionally, implementing an information system for dedicated freight corridors, material management systems, and e-procurement systems across all railways is necessary. The proposed IT

infrastructure includes integrated management of data networks for efficient data administration and a security system to prevent computer fraud.

The Indian Railways' Five Year Strategic Plan includes IT strategies such as centralizing and integrating all information systems and implementing a unified GIS for seamless geographical information availability. Additionally, education and training will be provided to managers and employees, who will act as catalysts for IT use in the workplace.

The Indian Railways' Five Year Strategic Plan16 prioritizes safety, recognizing it as one of the biggest challenges faced by the organization. To address this, the plan proposes empowering managers and employees at all levels to make effective use of IT in their work, while also strengthening CRIS and other IT service providers with more manpower, facilities, and improved internal processes. Accidents resulting from derailments (about 75% of all accidents) are the most common, with freight trains accounting for 66% and passenger trains accounting for 34%. Other causes include unmanned level crossings (12%), collisions (7%), manned level-crossings (4%), and fire (2%).

The main cause of deaths in railway accidents is collisions, accounting for 38% of deaths, followed by accidents on unmanned level crossings at 37%, derailments at 14%, accidents on manned level-crossings at 9%, and fire at 2%. According to the Ministry of Railways, a table below shows the causes of accidents from 2001-2006. Gap analysis has revealed key factors contributing to accidents include failure during interlocking, negligence of road users at level crossings, lack of on-board fire detection and fighting equipment, lack of predictive maintenance, and infringement to track. Steps to increase safety levels include the progressive introduction of GPS-based Anti-Collision Devices in coaches and retrofitting

old coaches with crashworthy features. Additionally, policy changes regarding rail-road level crossings such as minimum distances between gates and a ban on new crossings are being considered.The train system is prepared to combat fire and sabotage by detecting early stages of fire and using advanced smoke detection technology. Automatic fire extinguishers are placed in areas of the train known to be at risk, and there is increased surveillance of both passenger areas and tracks. In terms of asset maintenance, improvements should focus on modernizing, mechanizing, and upgrading practices related to predictive maintenance, specifically in the areas of signaling and rail-wheel interaction.

Indian Railways has outlined its Five Year Strategic Plan, which includes a SWOT analysis identifying strengths such as affordability and vast networks, as well as weaknesses such as excess tracks and low IT skills among employees. There are opportunities for growth, including high demand for transportation and ample land available, but the rail industry faces threats from alternative modes of transportation. To address these challenges, Indian Railways plans to integrate various information systems and implement better technology across departments. Additionally, the value chain analysis prioritizes investments in track routes, rolling stock procurement, and maintenance services to increase safety levels and streamline operations. Ultimately, Indian Railways aims to improve infrastructure and deploy IT solutions to meet customer expectations.The aim is to increase transportation capacity for both passengers and freight, with improved services. Better technologies and maintenance practices will be employed to improve the performance of rolling stock for increased productivity. IT will be deployed for daily operations to boost efficiency and provide cost-effective solutions meeting customer and company requirements. Affordability, a huge network, and information systems

like PRS and FOIS are strengths, but there exist weaknesses like excess/low usage of tracks, lack of IT skills among employees, etc. Low capacity to demand ratio, old-fashioned wagons, forecasting, high demand, abundant land in prime locations, integration of information systems being used currently and deployment of better technology are opportunities and threats are from other modes of transportation such as low-cost airlines or slow freight transport. The gap analysis shows utilization or non-utilization of track networks, untapped demand for domestic container movement, and scope for automation of scheduling and usage in day-to-day jobs. The strategic planning objective is capacity enhancement with new track lines, gauge conversion, and electrification.

The following actions can be taken to improve efficiency and reliability of wagon rolling stock, including rescheduling and rerouting of freight routes, reducing turnaround time, complete automation and integration of Information Systems for achieving synergy, improving personnel IT skills, investing in older technology-based wagons and hygiene, addressing deteriorating tracks in high traffic routes and HR for improving efficiency, addressing low-powered engines, and improving connectivity in neglected areas.