Q. . In the context of India, the proportion of rail freight is lower and is estimated to constitute approximately 27% of the overall freight transport. Which of the following factors contribute to this statistic?
1.High logistics costs
2.Lack of infrastructure
3.Lack of integration
4.Centralization of production
5.Competition from other modes of transportation
Select the correct answer using the code given below:
Answer: C
Notes:
Explanation – The Railways is one of the cheaper modes of transportation for moving bulk cargo. However, it only has a ~30% share. This is because of: High logistics costs, Lack of Infrastructure, Lack of integration, Competition from other modes of transportation, operational inefficiency, limited reach, etc.
Moreover, in addition to the above Decentralization of production is also one of the reasons behind low share. This is because in recent years, there has been a shift towards decentralized production, with smaller industries being set up in rural areas. This has made it more difficult for the Railways to reach all of these industries.
Source: ForumIAS
