Home-grown logistics firm DTDC Express is waiting for the Indian Railways to address logistic infrastructure gaps in its network so that the company can expand its cargo movement through rail to around 60 percent of its total handling from the current 20 percent, Subhasish Chakraborty, Founder and Chairman & Managing Director, DTDC Group companies, said.
“At the moment, 18-20 percent of our volumes are transported through railways, but going forward, as the Indian Railways improves its infrastructure and network, we will look to transport 60 percent of our volumes through rail,” Chakraborty said. DTDC handles over 12 million shipments per month through its over 580 operating facilities, with 2.21 million sq ft of space under its management.
For transporting cargo across distances of over 1,000 km, the railways are more efficient and sustainable than roads, he said. However, roads will continue to be pivotal for cargo movement in India, especially in the medium to short-haul distances, he said.
While DTDC is very bullish on the use of railroads to transport cargo across India, upgradation of infrastructure by the Indian Railways is imperative for the country’s logistics sector for the switch, Chakraborty said.
“There won’t be an instant switch to railways from the road for cargo movement because road infrastructure is better in the country,” he said.
The Indian Railways will have to ensure speed, cost, and security of cargo before logistics companies start adopting railways in a significant way. The breakdown time of rail coaches will also have to be reduced, Chakraborty added.
