The recent surge in fuel prices, driven by the ongoing conflict in West Asia, has significantly altered freight transportation patterns in the Indore division. Transporters are increasingly opting for railway networks, citing relatively lower costs and greater reliability compared to road transport.
Impact on Road Transport
Amarjeet Singh Bagga, president of the Indore Truck Operators and Transport Association, reported that the recent diesel price hike of approximately Rs 8 per litre, combined with rising costs of diesel exhaust fluid (DEF/Urea), tyres, oil, grease, and driver salaries, has led to a 20% to 25% decline in road transport business over the past two months in the division. He stated, "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."
Railway Benefits
This shift has significantly benefited the railways. Western Railway’s Ratlam division recorded 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 noted that rising fuel prices and the subsequent reduction in active cargo trucks redirected freight logistics toward the rail network.
Electrification Advantage
Kumar highlighted that except for one train, the entire Ratlam railway division is electrified. "Operating goods trains via electric locomotives keeps the railway’s cost of transportation comparatively low, further attracting commercial freight," he said.
Commodity Loading Growth
The shift has 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%.
Infrastructure Upgrades
To modernize freight handling and boost cargo capacity, Ratlam division is executing comprehensive infrastructure upgrades across multiple goods sheds. Mukesh Kumar, Public Relations Officer of Ratlam division, stated, "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."
