Logistics Sector Check - DFC To Increase Modal Share Of Railways In Freight: Motilal Oswal

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.The share of freight movement has started to shift from roads to railways, with the phase-wise commissioning of dedicated freight corridors. The National Rail Plan expects the share of freight traffic by rail to go up to 40% by 2031 from ~18% in 2020.A sharp rise in fuel costs (diesel price in Mumbai has increased to Rs 95 from Rs 75 over the last four years) together with an increase in insurance charges is set to reduce the competitiveness of the roads. Additionally, the implementation of BS-VI and an increase in price of steel and other commodities has driven up the cost of trucks. Average cost of a commercial vehicle (medium and heavy commercial vehicle) has registered a compound annual growth rate of 6% to Rs 2.3 million as of Dec 2022 from Rs 1.7 million in FY18. Hence, higher cost of operations of freight movement via road makes rail a more efficient mode of transportation. Due to the aforementioned reasons, volumes of some of the key commodities have started to shift to railways. On a monthly basis, average domestic container volumes carried by Indian railways have increased to 1.5 million tonnes in FY22 from ~1 million tonnes FY20..Click on the attachment to read the full report:.Rise In Coking Coal Prices, China’s Modest GDP Growth Outlook To Dampen Metal Rally: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Logistics Sector Check - DFC To Increase Modal Share Of Railways In Freight: Motilal Oswal

The share of freight movement has started to shift from roads to railways, with phase-wise commissioning of DFCs.

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Logistics Sector Check - DFC To Increase Modal Share Of Railways In Freight: Motilal Oswal

The share of freight movement has started to shift from roads to railways, with phase-wise commissioning of DFCs.

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