Freight rail in India declines in second quarter

Freight rail in India declines in second quarter Rail freight volumes in India are painting a pretty familiar picture of late.
   In the last quarter, domestic volume dropped 12 percent versus the same period in 2007, while import-export volumes fell more than 4 percent, according to India’s Daily News & Analysis. Slowing demand, caused mostly by global economic gloom, is to blame for the domestic downturn, say officials of Concor, the state-run freight rail company with a huge market share in the country. Meanwhile, the export side has been hit by bans on export of commodities like rice and maize as the national government seeks to stem high inflation.
   The impact of falling volumes might be more keenly felt in the next quarter, since the last quarter was unaffected by the most recent market turmoil. The bright side is that India’s rail capacity was struggling to keep pace with its demand from both the passenger and cargo sides.