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Cheaper road transport puts rail freight off track


The railways is expected to take a significant hit on its freight earnings this year as road transport emerged as a cheaper option for many businesses due to drop in diesel prices. The railways kept its freight charges unchanged.

The railways may report freight volumes of about 1098 million tonnes – same as last year — registering a flat growth, according to officials. The railways had reported freight volumes of 1052 million tonnes in 2013-14, reports The Economic Times.

Faced with the prospect of a flat growth, the Railway Board has been slashing plan expenses for the last three months.

The Railway Board usually fixes a target 10% higher than the previous year for its divisions, but most of the 68 divisions across 16 zones have not been able to meet it.


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