High fuel costs shift freight transport from road to rail in Indore division

Indore: The recent hike in fuel prices, triggered by conflict in West Asia, has shifted freight transportation from road to railway network in Indore division significantly, with transporters claiming that rail option was proving relatively cheaper and reliable.

Indore truck operators and transport association president Amarjeet Singh Bagga said that the recent hike in diesel price by approximately Rs 8 per litre along with rising costs of diesel exhaust fluid (DEF/Urea), tyres, oil, grease, and driver salaries, has reduced road transport business by 20% to 25% over the last two months in the division.

“Clients have refused to pay higher freight rates demanded by truckers to cover these operational costs, leading to a shortage of available goods. Consequently, around 25% of commercial trucks are currently parked and most of their transport business has now shifted to the railways,” Bagga told TOI.

The shift seems to have significantly benefitted the railways with Western Railway’s Ratlam division recording a 16.56% year-on-year increase in progressive freight loading for the current fiscal period. Till May, originating freight loading reached 3.51 million tonnes (MT), up from 3.01 MT during the same period in the previous financial year.

Divisional railway manager Ashwini Kumar told TOI that the rising fuel prices and the subsequent reduction in active cargo trucks redirected freight logistics toward the rail network.

Kumar said that except for one train, the entire Ratlam railway division was electrified. “Operating goods trains via electric locomotives keeps the railway’s cost of transportation comparatively low, further attracting commercial freight,” he said.

He added that the shift expanded the loading base for Ratlam division, particularly for core commodities like petroleum, oil, and lubricant (POL), cement, clinker, and food grains, which together constitute nearly 85% of its overall loading. During the 2025–26 financial year, these four commodities accounted for 16.89 MT of freight out of an aggregate originating total of 19.79 MT.

Despite high demand pressures on fuel tank wagon rakes, the division successfully loaded 131 rakes, registering a year-on-year loading surge of nearly 240%.

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Infra upgrade at Ratlam division goods sheds

Indore: To modernize freight handling and boost cargo capacity, Ratlam division is executing comprehensive infrastructure upgrades across multiple goods sheds.

“Infrastructure developments are being implemented at key terminals like Laxmibai Nagar, Vikramnagar, Shujalpur, Chanderia, Neemch, Sehore, Mangliya Gaon, Meghnagar, Dewas, Sanawad, Binjana, and Dahod. The upgrades focus on installing all-weather approach roads, PCC flooring, coverage sheds, high-mast lighting, and reinforced drainage systems besides expanding platform handling areas and installing CCTV monitoring frameworks,” Ratlam division PRO Mukesh Kumar said.