Home > Back to Publisher > Report Information

Strategic Analysis of the Growth Opportunities in the Indian Rail Industry

Frost & Sullivan
September 14, 2009
130 Pages - SKU: MC2481463

Abstract Table of Contents Related Reports

Countries covered: India

This Frost & Sullivan research service titled Strategic Analysis of the Growth Opportunities in the Indian Rail Industry provides current market size, forecasts, as well as the key market drivers and restraints. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: passenger rail services and coaches, freight rail services and wagons, rail infrastructure, locomotives and wheels, as well as signaling systems and technology.

Market Overview

Indian Rail Industry Chugs Along with Increased Private Participation and Renewed Focus on Freight and Infrastructure Development

The Indian Railways, which runs more than 18,400 trains, covering 6,856 stations daily, is all set to benefit from higher private participation. The magnitude of the Indian Railways’ infrastructure upgrade and modernization program has made private participation an integral component of all developments for key initiatives. The ongoing and proposed Metro Rail projects in several Indian cities, including Delhi and Mumbai, have encouraged large-scale private participation in the areas of providing engines and coaches as well as infrastructure development for both domestic and multinational companies. These projects can expand the reach of railways as a preferred mode of passenger transportation. Apart from persuading private participants, the Indian Railways is also looking to bolster its revenues through the use of technology and investment in port connectivity and rail infrastructure.

Meanwhile, the opening up of the container rail segment for private participation has given a huge boost to the cargo segment. Private investments have gone a long way in reducing the infrastructural limitations of the Indian Railways and creating opportunities in the extremely profitable freight transportation services. "Already, the 15 approved operators have gained high volumes of freight from various industries, including transportation of cars by rail, which was not done earlier by the government-owned Container Corporation of India Ltd. (CONCOR)," says the analyst of this research. "Once the ongoing project of Dedicated Freight Corridors becomes a reality, several more participants are expected to join the competition of container rail operations and fulfill the vast demand for rail freight services."

Acknowledging the business opportunity presented by the steadily growing freight segment, the Indian Railways plans to invest in connectivity for all major ports. This will allow cargo from/to the hinterlands to be transported directly from/to the port to avoid the bottlenecks of road transportation and existing rail routes. India has the second largest railway network in the world, covering over 63,600 km and carrying about 30 percent of the nation’s cargo. "However, within the rail network, some key routes such as Delhi-Mumbai and Delhi-Kolkata have a utilization of more than 140 percent," notes the analyst. "To add to the congestion, there are no dedicated routes for cargo traffic and hence, the cargo traffic not only subsidizes the passenger traffic, but is also accorded lower priority."

After being written off as a financially unviable organization by industry experts, Indian Railways has made a dramatic turnaround in the last few years. There has been a paradigm shift from the tariff regime (using freight services to subsidize passenger services) to a focus on freight as a primary growth driver. Meanwhile, Indian Railways’ customer-friendly approach to passenger services has ensured that both passenger as well as freight revenues will escalate, throwing open numerous opportunities for companies in diverse segments of railways. India’s emergence as a manufacturing hub for various sectors has buoyed the economy and attracted investments in infrastructure as well as hiked demand and consumption. "A sharp rise is expected in the traffic flow between manufacturing centers, ports, and inland container depots (ICDs) over the next four to five years," observes the analyst. "Owing to the cost benefits of rail transportation, the Indian Railways is likely to gain significant revenues from these trends."

1. Executive Summary
2. Indian Rail Industry: 2.1 Evolution of the Indian Railways (IR); 2.2 Overview of Indian Railways; 2.3 Structure and Constituents of Indian Railways; 2.4 Overview of Indian Railways’ Zones and Network; 2.5 Zonal Distribution of Route Kilometers of Indian Railways; 2.6 Industry Segments within Indian Railways; 2.7 Current Market Size and Forecasts for Indian Railways; 2.8 Market Drivers and Restraints for Indian Railways; 2.9 Market Size and Forecasts by Segment for Indian Railways
3. Passenger Rail Services and Rolling Stock: 3.1 Overview of Passenger Rail Services in India; 3.2 IR’s Passenger Market Overview; 3.3 IR’s Passenger Traffic Growth in Suburban and Long-haul Segments; 3.4 Current Market Size and Forecasts for IR’s Passenger Rail Services; 3.5 Forecasts for IR’s Passenger Traffic Growth; 3.6 Suburban Rail Services; 3.7 Capacity Expansion and New Investments in Passenger Rail Services; 3.8 Rolling Stock Industry Structure - Coaches; 3.9 Capacity and Supply of Coach Manufacturing Facilities; 3.10 Future Demand for Coaches; 3.11 Market Drivers and Restraints for Railway Coach Manufacturing; 3.12 Market Size and Forecast for Railway Coaches; 3.13 Market Share Breakup of Rail Coach Manufacturers; 3.14 Capacity Expansion and New Investments in Coach Manufacturing; 3.15 Market Trends; 3.16 Outlook for the Railway Coach Industry in India
4. Freight Rail Services and Rolling Stock: 4.1 IR’s Freight Market Overview; 4.2 IR’s Current Market Size of Freight; 4.3 IR’s Freight Market Size by Commodity - Historic Growth; 4.4 Commodity-wise Share of IR’s Freight Market; 4.5 Market Breakup and Forecasts by Railway Freight Commodity; 4.6 Zonal Market Share (by Volume) for Top Five Commodities along with Containerized Cargo; 4.7 Zonal Market Share in Containerized Cargo; 4.8 Containerized Cargo Segmentation - Domestic versus EXIM; 4.9 Container Transportation by Rail in India; 4.10 Private Container Rail Operations in India; 4.11 Double Stack Container Trains; 4.12 Dedicated Freight Corridor (DFC); 4.13 Rolling Stock Industry Structure - Wagons; 4.14 Production and Demand for Wagons; 4.15 Market Drivers and Restraints for Wagon Manufacturing in India; 4.16 Market Size and Forecast for Wagons Manufacturing; 4.17 Capacity Expansion and New Investments in Wagon Manufacturing; 4.18 Outlook for Wagon Industry in India
5. Rail Infrastructure, Locomotives and Wheels: 5.1 Market Overview - Rail Infrastructure, Locomotives, and Wheels; 5.2 Rail Infrastructure Industry Segments; 5.3 Rolling Stock Industry Structure - Locomotives and Wheels; 5.4 Locomotive and Wheel Manufacturing in India; 5.5 Market Size, Share and Forecasts for Locomotives; 5.6 Market Size, Share and Forecasts for Rail Wheels; 5.7 Capacity Expansion and New Investments in Locomotive and Wheel Manufacturing; 5.8 Outlook for the Locomotive and Rail Wheel Industry in India; 5.9 Overview of the Railway Tracks and Related Infrastructure Segment in India; 5.10 Capacity Expansion and New Investments in the Railway Tracks and Related Infrastructure Space; 5.11 Outlook for Railway Tracks and Related Infrastructure in India; 5.12 Information Technology in IR; 5.13 Overview of Railway Signaling Systems and Communication Technology in India; 5.14 Telecommunication Initiatives Undertaken by IR; 5.15 Capacity Expansion and New Investments in Signaling Systems and Communication Technology; 5.16 Outlook for Railway Signaling Systems and Communications Technology in India
6. Conclusions - Future Growth Opportunities: 6.1 Growth Opportunity Index for Indian Rail Industry; 6.2 Growth Opportunities in Public Private Participation (PPP) Projects; 6.3 Existing Foreign Participation in Major Ongoing Projects of IR
7. Database of Key Industry Participants: 7.1 Rolling Stock Manufacturers in India; 7.2 Railway Container Operators; 7.3 Systems and Technology (Infrastructure) Providers
8. Annexure

More India Logistics & Shipping Reports

Transportation & Logistics Sector in India: Strategic Review (Budget 2012-13) by IS Advisors
India’s transportation sector is large and diverse; it caters to the needs of 1.2 billion people. The Indian transportation & logistics sector is increasingly attractive ...

Road & Rail in India by MarketLine
Introduction Road & Rail in India industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2007-11, and forecast to 2016). ...

Indian Logistics and Warehousing Industry Deal Directory - Edition Q4'2011 by AM Mindpower Solutions
The Logistics & Warehousing database provides access to all the Mergers and Acquisitions (M&A), Private Equity and Venture Capital Deals since 2004. The ...

Material Handling Equipment in India to 2016: Market Databook by World Market Intelligence
Synopsis WMI’s, 'Material Handling Equipment in India to 2016: Market Databook' contains detailed historic and forecast market value data, segmented at a category level. Summary This report is ...

3rd Party Logistics Market in India by RNCOS
In this era of globalization, India is witnessing an increasing demand for the third party logistics (3PL) business, with companies now concentrating on managing their ...

See all reports like this >>

More India Reports

D&B Country RiskLine Report: India by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

D&B Country Report: India by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Country Report India January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

India: Country Profile by MarketLine
INTRODUCTION This report provides a detailed analysis on India, providing an overview of its political, economic and business environment, represented both textually and in graph and ...

2007 India Industry & Market Outlook report by Barnes Reports
The 2007 India Industry & Market Outlook report is the leading annual publication that describes over 100 major industries in India and 500+ minor industries ...

See all reports like this >>

Strategic Analysis of the Growth Opportunities in the Indian Rail Industry

Share this report

Other tasks

Research Assistance

Related Markets

Logistics & Shipping Reports

Free Alert Me service