Swot Analysis Of Railway Industry

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CHAPTER 6 6. Opportunities, Challenges and Constraints India’s rapidly growing economy will offer promising possibilities for growth in future. However, such growth will not be automatic and will be attained only if Railways approach the task with a carefully crafted and meticulously executed plan. Railways can outperform other competing modes by offering mass-scale services very reliably and efficiently and providing differentiated services at value-based rates. Efficiency of railway operations is predicated upon capacity, more tonnage/passengers per train and speed. Identification and satisfaction of customers' specific needs would be necessary for premium services. To achieve the Vision for ambitious growth, Indian Railways has to offer…show more content…
Pre-feasibility studies for other dedicated freight corridors for North-South (Delhi to Chennai), East-West (Howrah to Mumbai), Southern (Chennai to Goa) and East-Coast (Kharagpur to Vijayawada) have also been carried out. The DFCs are be-ing planned with high axle-load and modern technology. These would provide the opportunity to achieve substantial segregation of freight and passenger traffic on the trunk routes and improve the speed and reliability of both services. The key challenge is to find and devote adequate financial and human resources to execute these projects in time. (E) Execution of project Railway projects suffer from chronic shortage of funds, as available funds are spread thinly over a large shelf of projects. Time and cost-over runs adversely affect the viability of projects. Efficient execution of projects within time and budget is, therefore, an urgent necessity. There are managerial and organizational issues that need to be addressed to fast-track project execution and meet the challenges of massive capacity creation within a short period of 10 years. A list of the ongoing Railway projects is shown at Annexure-I. As can be seen, the shelf of ongoing projects is huge and Railways would require resources of the order of more than 1, 43,000 crore to merely complete the projects on hand. (For…show more content…
While passenger services consume nearly 60% of the network capacity, their share in the traffic earnings amounts to only 33%. Competition from different modes, low-cost air carriers in particular in respect of long distance and luxury buses in short to medium distance segments, is beginning to threaten Railway's hold on the upper-class passen-ger segment. As a result, Railways are under pressure not to increase premium class fares. On the other hand, second- class fares, especially suburban fares, have been spared any hike for several years as these are considered critical for the underprivi-leged sections of society. The net result is that passenger business of railways has been a losing proposition. The following table illustrates the

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