Florida(United State of America)- based Dun & Bradstreet (D&B), in collaboration with Jupiter Wagons Ltd., unveiled the Indian Railway Freight Activity (IRFA) Index during the 15th International Railway Equipment Exhibition (IREE 2023) in Pragati Maidan, New Delhi, Delhi from 12th to 14th October 2023.
- It is a quarterly report providing a comprehensive and data-driven assessment of the dynamics of Indian Railway freight activity.
- The IRFA Index has become a first-of-its-kind tool for monitoring and understanding the intricacies of Indian railway freight activity.
Note: D&B is a leading global provider of business decisioning data and analytics for almost 200 years.
Railway Freight Activity Optimism Index (RFAOI):
i.It is a unique index aiming to capture the optimism level of the users of the railways (industry players and logistics service providers) on expected rail freight activity.
ii.Dun & Bradstreet and Jupiter Wagons are introducing the first of its kind in India, a quarterly RFAOI, the Indian Railway Freight Activity (IRFA) Index.
IRFA Index and its Evaluation:
i.This pioneering index is designed to boost the railway freight modal share and to support various stakeholders within the railway freight supply chain.
ii.It is based on survey responses to capture the optimism level of businesses across India towards using railways to transport their freight.
iii.The IRFA Index amalgamates data from the Ministry of Railways (Government of India) and insights obtained through user surveys.
Two Sub-Indices:
The quarterly report comprises 2 vital sub-indices:
Activity Sub-Index: Based on official data from the Ministry of Railways, this sub-index reflects the quantitative aspect of railway freight activity.
Experience Sub-Index: Derived from a survey of railway freight users, this sub-index captures qualitative feedback and measures user optimism level for the upcoming quarter.
Index Value and Interpretation:
i.The index value ranges from 0 to 100.
ii.A value of 50 signifies a neutral level of railway freight activity on a year-on-year (YoY) basis.
Benefits of the IRFA Index:
i.It enables policymakers to closely monitor railway freight activity.
ii.It ensures industries stay well-informed, aiding in addressing supply chain challenges.
Key Findings:
i.The IRFA index for Q3 2023 is at 48, indicating a sub-neutral level of rail freight activity, compared to the same quarter in 2022.
ii.Optimism Index at 60, compared with the Experience Index at 56, which indicates the railway freight activity for the current quarter (Q3 2023), suggesting increased optimism for the forthcoming quarter (Q4 2023).
iii.Users foresee higher demand for containers (Optimism Index at 68) and cargo handling machinery (Optimism Index at 61).
iv.Only 16% of respondents transport over 50% of their freight via railways; 53% opt for roadways and transport more than 50%.
v.Users of Central and Northern Railways express the highest optimism for Q4 2024 compared to the other 3 regions.
vi.The capital goods sector emerges as the most optimistic for increased rail freight activity, which is the highest amongst the 14 sectors, indicating traction in investment activity.
vii.75% of respondents rate railway freight operations as efficient.
viii.Cost-effectiveness ranks higher than speed and reliability, emerging as the primary demand driver for railway freight.
ix.Connectivity is not a constraint, but network congestion and damage/loss of goods pose challenges in railway freight transportation.
Note:
- Enhanced optimism for Q4 2023 compared to the previous year signals increased rail freight activity and improved user experiences.
- Nearly 50% of respondents consider railways crucial in their transport strategy.
- Only 16% transport a majority of their freight through railways, suggesting unmet demand and potential for growth.
Recent related News:
The Department of Public Enterprise (DPE) under the Ministry of Finance has been granted Navaratna status to 2 Central Public Sector Enterprises (CPSEs) namely Ircon International Limited (IRCON) and RITES Limited (RITES) under the Ministry of Railways.
About Jupiter Wagons Ltd:
Managing Director (MD)- Mr. Vivek Lohia
Headquarters– Kolkata, West Bengal
Incorporated in– 2006
About Dun & Bradstreet (D&B) India:
Managing Director (MD) and Chief Executive Officer (CEO)- Avinash Gupta
Headquarters– Mumbai, Maharashtra
Started operations in– 1995
