SCR freight study examines ports and industrial clusters for rail growth

Summary

South Central Railway and IIM Bangalore have brought freight customers together to review opportunities for expanding rail cargo business. An ongoing market study covers major commodities, ports and emerging industrial clusters, supporting a combined freight-loading target of 264 million tonnes for SCR and South Coast Railway by 2030.

Industry feedback to shape freight strategy

The SCR freight study moved into a stakeholder consultation stage on October 8, when IIM Bangalore organised a Rail Business Conclave in Hyderabad to discuss opportunities for increasing rail’s share of cargo transportation.

South Central Railway General Manager Sanjay Kumar Srivastava attended as chief guest. Freight customers and industry representatives discussed operational difficulties, service expectations and potential sources of additional traffic.

SCR engaged IIM Bangalore in February 2026 to examine the freight market. The latest discussions are intended to turn the research and customer feedback into practical recommendations for improving railway services and attracting business.

Srivastava said SCR would examine concerns involving operating constraints, reliability, transit times, expansion plans and logistics requirements. He asked the institute to develop recommendations that would enable corrective measures.

Ports and manufacturing feature in market assessment

The study covers cement, coal, steel, agricultural products, automobiles, port traffic and containers. Researchers have undertaken more than six months of fieldwork across major freight-generating and handling locations served by the six divisions of the erstwhile SCR zone.

An interim report was discussed with customers and industry participants. Beyond established commodity flows, the assessment considers emerging cargo opportunities associated with new ports along the Andhra Pradesh coast, the Jalna dry port and multimodal logistics parks.

Upcoming steel plants and the electric vehicle cluster at Bidkin, near Chhatrapati Sambhajinagar in Maharashtra, also feature in the work.

The research examines potential freight terminals, GatiShakti Cargo Terminals, improved railway connectivity and customer-friendly freight schemes. Together, these areas connect the market assessment with decisions about where additional services and infrastructure may be needed.

Regional target linked to national ambition

Indian Railways has set a freight-loading target of 3,000 million tonnes by 2030. SCR and neighbouring South Coast Railway are together targeting 264 million tonnes as their contribution.

Srivastava described the regional goal as challenging but achievable with support from customers, industry partners and railway employees.

The conclave included representatives from cement companies, Singareni Collieries, thermal power stations, ports, chambers of commerce, warehousing businesses and cargo and container service providers.

Separate discussions addressed commodity-specific requirements, including cement, coal and fly ash, alongside port and container logistics. Bringing these customers into the study allows operating requirements to be considered alongside estimates of potential cargo demand.

Partnership began with February agreement

The October meeting follows an earlier memorandum of understanding between SCR and IIM Bangalore’s Supply Chain Management Centre.

The agreement was formalised at the Rail Parcel Conclave held at Rail Nilayam in Secunderabad in February. Professor Rajeev R. Tripathi, the centre’s chairperson, also delivered a presentation on the role of railways in modern supply chains.

The collaboration was established to undertake a comprehensive research study of SCR’s freight services and generate analytical insights supporting its operations.

The Supply Chain Management Centre works across transportation, warehousing, supply chain design and coordination. These research areas are relevant to assessing how railway services connect with customers’ wider logistics arrangements, including handling, storage and distribution.

Customers highlight connecting infrastructure

Earlier consultations also brought industrial users into the research. On August 20, an IIM Bangalore team met the Andhra Pradesh Chambers of Commerce and Industry Federation to discuss freight patterns and barriers to greater rail use.

The chamber proposed freight aggregation centres at industrial clusters, stronger first-mile and last-mile connections, mini inland container depots and rail-linked terminals.

It also sought closer integration between railways, ports, roads, warehouses and multimodal logistics parks. These suggestions underline the importance of examining the complete cargo journey when assessing rail competitiveness.

Digital services provide parallel background

SCR’s research initiative accompanies an earlier effort to simplify parcel logistics. On February 25, it launched a one-year pilot of the Rail Parcel digital marketplace across 17 stations in seven cities.

The platform connects railway transportation with logistics partners offering pickup, delivery and packaging. Its pilot locations include Hyderabad, Visakhapatnam, Vijayawada, Guntur, Rajahmundry, Bengaluru and Chennai.

This provides a separate example of SCR addressing connections between rail transport and customer premises. The October consultation now focuses attention on translating freight-market research into service improvements and commercial priorities.

FAQs

1. What is the purpose of the SCR freight study?

To identify cargo opportunities, understand customer requirements and recommend measures to expand rail freight business.

2. When did the partnership begin?

SCR engaged IIM Bangalore in February 2026, with an MoU formalised during the Rail Parcel Conclave.

3. Which sectors does the study cover?

Cement, coal, steel, agriculture, automobiles, ports and containers, alongside emerging industrial and logistics developments.

4. What is the regional freight-loading target?

SCR and South Coast Railway together are targeting 264 million tonnes by 2030.

5. What happened at the October 8 conclave?

Freight customers and industry representatives discussed operating challenges, logistics requirements and opportunities to increase rail cargo transportation.