Rail Transport Market in India 2014

latest market research report titled Rail Transport Market in India 2014 states that with the government opening up the rail freight transport sector to private companies in 2006, the market has developed considerably and offers tremendous potential for players. Freight traffic has increased considerably in the past few years and is projected to grow even further. Although the sector had faced challenges from road freight in the recent past, with several infrastructural development projects being on the verge of completion, the sector is expected to get a major boost. With developments in the sector, efficiency will increase and more companies will be willing to transport products through rail freight. Dedicated freight corridors will vastly aid in this. Further, the country's growing international trade has increased the need for transportation services, especially from the ports. This will further assist growth in the market.
To encourage rail freight and to develop the sector, several marketing schemes have been formulated by Indian Railways. Also, the aim is to modernize the entire railway network. This will provide operational benefits to players active in the sector. At present, there are 16 companies that have the license to operate in the sector with the Government of India undertaking, Container Corporation of India Ltd. (CONCOR) dominating the market. The private players are yet to establish themselves with most of them having a very small fleet size compared to CONCOR. However, with the implementation of various wagon investment schemes and wagon leasing schemes, the private players will benefit and the market will exhibit steady growth.