It was in the red for years and the task of turning it to profitability seemed impossible. But it happened. Indian Railways: the icon of profitability!
Cheers to Indian Railways, for its profits have
simply been mind-blowing and have only got bigger during the past two years! The reasons for the same are intensive asset utilisation (track, wagons, coaches, locos), increase in axle load, improvement in turn-round of wagons and also lowering of unit costs through higher volumes. The railways also used differentiated strategy for social and commercial segments of operation and a dynamic and market-driven tariff for freight and premium passenger segments. The railways also made the reduction of tariffs in real terms. The railways is also utilising its real estate to earn revenues. To begin with, it is roping-in real estate developers and utilising PPPs as part of its makeover plans. While the former are a part of the modernisation plan of 225 railway stations across the country, the PPPs focus will fund a major portion of the dedicated rail freight corridor and high speed passenger corridors. PPP options are also being explored to by holding auction for the private sector to build malls, cineplexes and shopping arcades. Finally, the PPPs will also help develop energy-efficient trains with the state-of-the-art facility & controlling.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Cheers to Indian Railways, for its profits have
simply been mind-blowing and have only got bigger during the past two years! The reasons for the same are intensive asset utilisation (track, wagons, coaches, locos), increase in axle load, improvement in turn-round of wagons and also lowering of unit costs through higher volumes. The railways also used differentiated strategy for social and commercial segments of operation and a dynamic and market-driven tariff for freight and premium passenger segments. The railways also made the reduction of tariffs in real terms. The railways is also utilising its real estate to earn revenues. To begin with, it is roping-in real estate developers and utilising PPPs as part of its makeover plans. While the former are a part of the modernisation plan of 225 railway stations across the country, the PPPs focus will fund a major portion of the dedicated rail freight corridor and high speed passenger corridors. PPP options are also being explored to by holding auction for the private sector to build malls, cineplexes and shopping arcades. Finally, the PPPs will also help develop energy-efficient trains with the state-of-the-art facility & controlling.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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