The Indian Railways intends to get a boost for its logistic wing from the emerging eCommerce and eRetailers in india, by being their preferred mode for goods transfer in heavy volumes. For this very purpose, the railways is developing a special policy to lure the big players like Amazon and Flipkart.
A senior Railway board official said, “We are working on a special scheme to tie up with emerging ecommerce companies for transportation of their parcels,” he also added that “Initial deliberations have been held and suggestions will be sought from all major online retailers including Amazon and Flipkart before a detailed plan is firmed up.”
India’s eCommerce market will grow to $100 billion (about Rs 6 lakh crore) by 2020, according to TOI. The railways wants to be a part of this growth and benefit itself by collaborating with them.
Currently, the Railways earns around Rs 2,100 crore from its parcel business, which could go up to Rs 5,000 crore in three years if it manages to tap the emerging businesses.