People often go by buses due to lack of suitable train connection be it timing or the class/ reservation availability. Buses and airplanes cannot match the comforts trains can provide when it comes to long journeys say over 5-6 hours.
Bus operators are thriving just because
(1) they are in general better managed from financial as well as operational point of views. They practice tight fiscal management, quickly adopt new technical developments in auto sector like using newer models.
(2) They...
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are very responsive to market demand, introduce new services where demand exists and rationalize the poorly patronized services whereas IRlys often run new trains on fictitious grounds or on gut feelings without proper market survey and continue to run scores of trains for years with very low occupancy and unable to fulfil demands on other routes.
(3) They earned huge profits whereas Indian railways were saddled with losses due to inherent inefficiencies and imprudent fiscal policies.
(4) Buoyed by the hugh profits earned, they invested heavily for growth of their business where as for perennially loss making investment for capacity/ fleet augmentation took back seat.
(5) As a result their fleet grew many fold and so was road network whereas Indian Rly rolling stock has not even doubled in 65 years and expansion of rly network was at extremely low pace. They grabbed the additional traffic demand created by rapidly growing India Economy and population.
Final result Indian railways which were having a share of 89% and about 60% in freight and passenger segment at the time of independence have lost almost two third of its share and the trend is continuing.
It is time for IR to rationalize its operations, outsource non-core jobs not requiring much technical & financial skills like- station cleaning, running schools, colleges, hospitals and plethora of other non-railway activities for which there are already central Govt. & State Govt. agencies in place.
All the decisions for expansions/ modifications/ new services etc. need to be taken on sound management principle after adequate market research, data analysis, techno-economic analysis rather than on gut feelings or any vested interests. Then only IRlys can regain itslost share over a period of time. Else one day IRly will be more like static/degenerating Pakistan Rlys rather than becoming like fast developing Chinese Railways.