Mumbai, 1st, August 2024 - Dun & Bradstreet, a global leader in business decisioning data and analytics, and Jupiter Wagons, released the Indian Railway Freight Activity (IRFA) Index. This index is an initiative launched amid the government's efforts to enhance railway freight modal share. The report provides a comprehensive assessment of the dynamics of Indian Railway freight activity through the lens of the railway freight users.
At a quarterly frequency, the IRFA index comprises of two sub-indices - the Freight Activity Experience sub-index for the current quarter and the Freight Activity Optimism sub-index for the upcoming quarter, derived from a survey of railway freight users transporting freight through the five major railway zones i.e. Eastern, Western, Northern, Southern and Central. The index value ranges from 0-100, where 50 is the neutral level of railway freight activity on a year-on-year basis.
Key Findings:
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Optimism for railway freight activity fell to 62 in Q2 2024 from 67 in Q1 2024.
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The moderation came on the back of fall in optimism level for both domestic and EXIM railway freight activity in Q2 2024. Businesses also anticipate high railway freight cost in Q2 compared to Q1 2024.
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Optimism of large firms saw a decline for railway freight activity, while that for medium and small firms increased in Q2 2024 from the previous quarter.
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For large firms, optimism level fell the most for domestic freight activity, followed by EXIM, in Q2 from Q1 2024.
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Optimism for labor demand and supply saw the most significant drop in Q2 2024 compared to the previous quarter, followed by a decrease in optimism for rakes and machinery for cargo handling.
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For large businesses, optimism for demand and supply of wagons, containers, labor, rakes, and machinery saw the largest decline in Q2 2024 compared to their optimism level in Q1 2024.
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On the other hand, optimism of demand for containers improved in Q2 2024 followed by wagons led by medium and small firms from the previous quarter.
Arun Singh, Global Chief Economist, Dun & Bradstreet, “Optimism for railway freight activity fell in Q2 2024 from the previous quarter. The survey reading highlights firms' concerns regarding external demand along with global and domestic supply chain challenges as firms indicated lower domestic and EXIM freight activity in Q2 2024 compared to Q1 2024. Geopolitical tensions caused supply chain disruptions across major trade routes till Q2 2024, forcing businesses to adopt longer alternative routes. India’s merchandise export demand also remained weak during March and April lending uncertainty to the optimism level of business for Q2 2024. Besides domestic supply chain pressures are also witnessing an uptick as indicated by the Reserve Bank Index of Supply Chain.
About Jupiter Wagons:
Jupiter Wagons Limited is a leading Indian manufacturer of railway freight wagons, committed to delivering productive and reliable transportation solutions for a nation on the move. We boast a rich heritage of over four decades, pioneering advancements in wagon design and construction, while consistently exceeding industry standards for quality and safety. Pioneering excellence in railway freight car engineering. We have been shaping the future of cargo transportation with cutting-edge technology, robust designs, and unwavering customer focus. Our variety of wagons caters to every commodity need, ensuring seamless and efficient movement across the country’s railway network.
Jupiter Wagons Limited, once known solely for its robust rail wagons, is now boldly rewriting its narrative. Recognizing the shifting winds of the transportation landscape, the company has embarked on a strategic diversification journey, venturing into promising new realms. Beyond steel behemoths, the horizon now encompasses electric commercial vehicles, poised to capitalize on the burgeoning green mobility wave. But innovation doesn't stop there. Jupiter has set its sights on the proliferate business of railway brake systems, brake discs for high-speed LHB coaches and track solutions, leveraging its existing expertise to forge a stronger grip on the industry. This multi-pronged unlocks new avenues for growth and a healthier bottom line. Jupiter Wagons is no longer just an engineering entity of the rail sector; it's a dynamic conglomerate, chugging confidently towards building a product portfolio assortment for the future of mobility solutions.
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