INDIAN RAILWAYS

SWOT ANALYSIS
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INTRODUCTION
• It is the state owned railway company of India, overseen by the Ministry of Railways.

• The first time a rail locomotive was used in India on 21st Dec. 1851 over Ganga Canal near Town
Rurki.

• First train in India ran between Bori Bunder, Bombay to Thane on Saturday 16th April 1853, with
14 carriages / coaches and 400 guests and journey of 33.81 kms taking 1:15 hrs. It was the first
commercial passenger service.

• By 1947, there were 42 rail system or railway companies.

• The Great Indian Peninsula Railway was the first railway company of India.

• The first train was hauled by three engines – Sindh, Sahib and Sultan, the Steam Locomotives.

• The Great Indian Peninsula Railway took a set of 8 locomotives from Vulcan Foundry, England in the
beginning of operation in India.

• In December 1851, first steam engine Thomason was operated in Roorkee, second was named after
Bombay Governor as Lord Falkland, and third was used as trial run of the passenger train in Nov.
1852.

• On August 15, 1854, the first passenger train in eastern section ran between Howrah to Hooghly (24
miles).

• On March 3, 1859, North India got its first passenger train ran between Allahabad and Kanpur (180
Kms).

• In 1895, India started manufacturing its own locomotives.

• In September 1921, Acworth Committee headed by William Acworth decided to separate railway
finances from general finances. In 1904, the idea to electrify the rail network was proposed.

• In 1925, India’s first ever railway budget was presented.

• The first electric train on Feb 3, 1925 ran on Mumbai Victoria Terminus (VT) – Kurla branch line, a
distance of 16 kms.

• In 1951, these 42 companies were nationalised as one unit.

• On April 14, 1951, Southern Railway was formed.

• On April 14, 1952, Northern Railway was formed.

• In 1970, the last steam Locomotive was rolled out of Chittaranjan Locomotive works. By 1985, steam
Locomotives were phased out.

• The third class in the Indian Railway was abolished in 1974.

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• Railway Fund to assist victims of railway accidents was set up in 1974.

• In 1977, India got its first Railway Museum spreading over 10 acres in New Delhi.

• On March 31, 1978, Railways were split into 9 zones.

• On October 24, 1984, Kolkata became the first Indian city where first metro rail ran 25 kms from
Calcutta to Dumdum.

• In 1985, steam locomotives were replaced by diesel and electric locomotives.

• In 1987, computerization of reservation was first carried out in Bombay.

• In 1989, Indian train numbers were standardised to 4 digits.

• On 24 march 1994, first live telecast of railway budget took place.

• In 1995, entire railway reservation was computerised through the railways internet.

• In 1998 Konkan railway was opened for public.

• In 1999, Fairy Queen bagged the National Tourism Award for most innovative and unique Tourism
Venture.

• In 2000, Mamta Banerjee became the first woman Railway Minister of India.

• On December 24, 2002, Delhi Metro Rail Corporation (DMRC) began its operation in Delhi.

• Six times Rail Budgets were presented by the Railway Minister Lalu Prasad Yadav from 2004 to 2009.

• On Monday, February 1, 2010 Wi-Fi facility was first launched at Mysore Railway station.

• On October 20, 2011, Bengaluru got Namma Metro.

• On June 8, 2014, Mumbai got Mumbai Metro and Mumbai Monorail.

• The largest platform in India is Kharagpur (W.B.), i.e. 2733 feet long.

• The longest railway tunnel is Konkan (Maharashtra), i.e. 65 km.

• The longest rail bridge is across Godavari river i.e. 10052 feet long.

• Chenab Railway Bridge Kalra (J&K) 359 metres/1177 feet will be world’s highest bridge by Dec.
2016. It will surpass current tallest over Beipanjiang river in China (i.e. 275 meters high).

• The largest marshalling yard is at Mughal Sarai.

• Seven classes are at present: (1) AC-1T, (2) AC-2T, (3) AC-3T, (4) Sleeper, (5) AC chair car, (6) First
class and (7) Second class.
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SWOT ANALYSIS
Indian Railways
Strengths Weaknesses
• Indian railways is the lifeline of the nation. • Indian Railways Passenger sector is
• Indian railways has largest land property in the country. loss making, i.e. among the lowest of
• It is the largest employer in India followed by Defence. passenger fare in the world.
• 13.36 Lakh gazetted and non-gazetted workers are currently employed. • Accidents and delays cause a dent to
• Its production units produce complete range of products in its area of operation, i.e., the image.
DG sets, loco components and sub-assemblies. • Facilities not comparable to
• Indian railroad network (66,030 kms) is the largest in Asia and 4th largest in the world international standards.
followed by China(3rd), Russia (2nd), USA (1st) and Canada (5th). • Unorganised railway stations, i.e.
• It is the world’s second largest under one management. dirty and poor in infrastructure.
• It has taken steps to conduct all examinations online as a measure against malpractices. • Infrastructure Bottlenecks leading to
• It permits Railway Recruitment Board (RRB) candidates to keep the question booklets. low average speeds.
• It permitted RRB candidates to upload answer keys and cut-off marks in 2014-15. • Freight train speeds lowest in the
• In 2014-15, it conducted examinations for 48, 822 vacancies in 284 categories. world, i.e. 25km/hr.
• It has its own Indian Railways Institute of Civil Engineering Forum to study its various • Poor track record of project
projects and its execution. completion.
• Total locomotives are 10822 (Steam 43 + Diesel 5714 + Elec. 5065) in which broad • Lacklustre growth in revenues – both
gauge 10391 + Metre gauge 233 in the year 2014-15. passenger and freight.
• Total passenger coaches are 67308 (EMU 8475 + Conventional 51833 + Others 7000) • Poor operating ratio (i.e. % age of
with a capacity of 1920768 accomodation in 2014-15. revenues account for expenses) which
• Total freight cars/ wagons are 2,54,006 (Broad gauge 250,711 + Metre gauge 3,139 + is expected to be 92% for 2016–17
Others) which was 90% in 2015–16.
• Total tracks are 108706 kms (BG-86,526 kms + MG-18,529 kms + NG-3651 kms) • Unhygienic condition of pantry car.
• Total Routes are 66,030 kms (BG 58825 km + MG 4908 km + NG 2297 km) 2014-15. • Poor quality of food supplied to
• Total double/multiple tracks are 20,633 kms i.e., 31.25% of total Route kms (2014- passengers.
2015) • Dirty toilets
• Total Route electrified are 22,224 kms out of total 66,030 kms (i.e., 33.66% of total), • Toilet facilities are absent in EMU
2014-15. trains.
• Now it carries over 1.30 crores passengers & 13 lakh tones of freight every day. • Stations are not clean.
• It runs about 20,038 trains daily (passenger -12,617 freight-7421) • Toilets at stations are in very bad
• It has most powerful locomotive, i.e. Electric Locomotive WAG-9/ WAP-7 (Modified conditions.
version) capable of hauling 24 coaches at a speed of 140 to 160 km/hour. • Maintenance and overhead expenses
• It has solar power run trains. are very high.
• It has almost 7500 railway stations. • Lack of flexibility in routes and
• It manufactures locomotives and engines indigenously. turnings.
• Its Electric Locomotives are manufactured at Chittaranjan Locomotive Works (W. • Lack of door to door services.
Bengal) • Inefficiency and high costs are due to
• Its Diesel Locomotives are manufactured in Varanasi. lack of competition.
• Soon India is going to get the first Bullet train from Japan to run between Mumbai and • Unsuitable for short distance and
Ahmedabad. small roads.
• Indian railways networks are divided into 16 zones. • More time & Labour required in
• Fairy Queen – the oldest working steam locomotives engine in the world and it is booking & delivery of goods.
the oldest steam engine in operation hauling luxurious train from Delhi to Alwar for • Not rural area oriented.
tourists. It secured a place in the Guiness Book of World record and got Heritage • Under-utilisation of its capacity.
Awardat Int’l Tourist Bureau, Berlin in March, 2000. • Over centralised administration
• Electric Multiple Units (EMU) coaches are used in large cities –mainly Mumbai, • It is a hostage of vote bank politics to
Chennai, Delhi, Kolkata, Pune, Hyderabad, Bangalore, etc. offer populist measures.
• In 2016, the fastest train in India is the Bhopal Shatabdi that runs with a top seed of • Free travels for politicians,
150 km/h. government employees and ministers
• ‘Gatimaan Express’ first proposed in July 2014, India’s first semi-high speed bullet is negative for its economy.
train had a successful trial run from Delhi to Agra in 90 minutes. Its maximum speed • Reserved seats for politicians and
will be 200 km/h. It will run at a speed of 160 km/h. higher dignitaries reflects bad
• Darjeeling Himalayan Railways attained the World Heritage status from UNESCO. impressions.
• Indian Railways revenue estimates of 2016-17 is Rs.1,84,820 crore.

STRENGTHS WEAKNESSES
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SWOT ANALYSIS
Indian Railways
Opportunities Threats
• Indian Railways can capture large chunk of container traffic by introducing • Open railway tracks can cause any
block container trains at passenger speeds. disaster for trains, travellers, goods, etc.
• Its 70% revenue comes from freight sector and has scope to add more companies. • Chain-pulling to stop train anywhere is a
• Its Operating Ratio (OR) has been decreasing drastically in last 10 years has serious threat by terrorists.
further scope. • Unchecked boarding at majority of
• Monetisation from non-tariff measure-advertising, leasing of land adjacent to stations can cause major mishappenings.
rail network, date analytics with the available data. • Very high competition from road and low
• Asset monetisation cost airlines in passengers and freight.
• Creation of dedicated freight corridors and increased focus on containerisation. • Over dependence on low yield bulk
• Improving traveller amenities and customer experiences. cargo (currently 10 commodities account
• Website of Indian Railway catering and Tourism Corporation can be exploited for 80% of the freight).
for economic activities. • Increase in allowable gross weight of
• Green track for Road Railer Service can increase penetration into non-freight road vehicle.
segment of companies/regions. • Possible introduction of double road
• Technological upgradation (i.e. Wi-Fi, Mobile applications, e-commerce trailers.
platform, etc.) can improve customer interface and monitoring of project • Finding the money over Rs.1.21 lakh
implementation. crore that is targeted to be invested in
• 2016 budget puts spotlight on over-stressed suburban (EMU) train services in 2016-17.
metros like Mumbai, Kolkatta & Delhi. • High democratic /political presence
• Railways Minister has proposed to revive the Ring Rail network in Delhi and against higher tariffs.
two new corridors in Mumbai. • Indian Railways has faced twin
• Rail Budget 2016 has proposed to develop 3 freight corridors, draft a freight headwinds from the tepid economy and
train timetable, increase the speed to 50 kms/hr and build rail side logistics the impact of 7th pay commission award.
parks & ware houses. • The operating ratio improved from 98%
• Rail Budget 2016-Vision 2020 for on demand reservation, technology for in 2001 to 76% in 2008. But now it has
safety, Punctuality -95%, Freight trains time-table, increased average speed, again reached to 92% for 2017.
etc. • Tatkal ticket booking is not working
• By 2020 there will be zero direct discharge of human waste. either on window or on e-ticketing for
• By 2020 unmanned crossing will be eliminated. direct general public.
• Budget 2016 has proposed new structure for railways by - Cooperation, • There are 10000 unmanned railways
Collaboration, Creativity and Communication. crossing all over the country.
• The IR minister Prabhu’s 3 pronged strategies to overhaul the operating • Corruption at every level is a threat for
efficiency are Reorganise, restructure and rejuvenate. its development, services, security and
• 1.21 lakh crore Rupees proposed investment for 2016-17 should facilitate safety.
modernization of the Railways. • Passengers especially older people,
• Railway Budget 2016 has proposed to start- Antyodaya Express – a long women and children are not safe.
distance, unreserved, superfast-train. • There is security threat in IT system of
• Indian Railways has proposed to launch 3 select train services – Humsafar, railways.
Tejas and UDAY. • Mumbai suburban Railway is most
• Indian Railways has proposed e-ticketing to be opened to foreign cards for severe overcrowding accident prone in
tourists, NRIS. the world.
• It has proposed 44 new partnership works valued at about `92,714 crore to be
implemented.

OPPORTUNITIES THREATS