Private management of railway services

Four years ago, in the wake of continuous losses, a significant number of mail and local trains in the north-east region of the country were handed over to a private company for management. The results are mixed, but encouraging enough to term the initiative a qualified success.

Putting the railway services under private management has certainly helped BR stem the losses that it was suffering in the region, and it is gratifying to see that this aspect of the undertaking has turned out as hoped for.

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However, the downside is that service on the privately managed lines has not improved to the extent that was anticipated. In fact, according to reports, the service on these lines might have deteriorated since the handover to private management.

There is little advantage to the public if profits are reaped at the expense of good service. The private management company suggests that the poor service can be attributed to the fact that BR has not fulfilled its obligations with respect to providing logistical and technical support. BR denies this.

Either way, it is clear that both parties need to work in closer coordination so that the public can reap maximum benefit from the arrangement. Private management that does not provide better service to the consumer cannot be termed an unqualified success.

Nevertheless, the fact that the lines are now running profitably is encouraging. The next step is for BR and the private company to sort out their differences to ensure that the quality of service is also enhanced. Only then we would be able to term the private management initiative an unqualified success. We hope that this is the direction in which BR is heading.