The Hindu Business Line : Railways must succeed on own merit

A recent study by TransCare suggests that the only way Europe's railways sector can hope to boost its share in the freight transport market is by embracing competition and improving services. The alternative strategy of calling for an increase in road tolls, which the railways has advocated, is a negative approach, the study observes.

The effect of any dramatic increase in road tolls can be disastrous for the EU economy as this would result in rise in operational costs for the road transport sector with corresponding inflationary pressures for wider industry and, ultimately, consumer prices.

Furthermore, any increase in road tolls will erode the competitiveness of the EU business and, worse, the railways will use the increase in the price of road transportation as an excuse to jack up rates. If the road transport companies absorb the impact of rise in road tolls, there will be erosion of their profitability, leading to insolvencies in an industry responsible for employment of a large number of people.

Rail has no choice; instead of blaming road, it should try to succeed on its own merit, the study concludes. Let us hope that a study like this will also encourage the Indian Railways to take a hard look at itself.

Our Bureau