Southern Railway-Business Development Units Set Up In Railways
Business Development Units Set Up In Railways
The Business Development Unit of Palakkad Division of Southern Railway tasted its first sweet of success when a demand to transport packaged palm oil from Mangaluru to Lucknow was materialised last week. Within a week of forming the new Business Development Unit, the division was able to capture a demand for 42 wagons of packaged palm oil from Panamburu goods shed to Mohanlalganj near Lucknow, 2500 km away. Loaded with 2640 tonnes of packed palm-oil in covered wagons, fetched an earning of Rs.38, 55,536 for railways.
The Business Development Unit (BDU) commenced functioning at Divisional Level as per Railway Board guidelines and is expected to facilitate new proposals for loading so as to increase volume and earnings in the freight segment.
Divisional Railway Manager (DRM) of Palakkad Division Shri Pratap Singh Shami established the Business Development Unit and it shall work under the supervision of Additional DRM Dr. C. T. Sakkeer Hussain with Senior Divisional Operations Manager, Shri P. L. Ashok Kumar, as Convenor. The BDU committee also consists of Senior Divisional Mechanical Engineer Shri K. V. Sundaresan and Senior Divisional Finance Manager Shri A. P. Sivachander and Shri Jerin. G. Anand, Senior Divisional Commercial Manager.
With the aim of capturing new streams of traffic, railway officials held regular interactions with industries in Baikampady industrial area adjacent to Panamburu goods shed and New Mangalore port. The proposal for loading packaged palm oil ‘Raag Gold’ of Adani Wilmar, refined at Baikampady industrial area was the first proposal formulated by the committee and sent to the zonal level. Railways is gearing up to handle more transport from Panamburu area to various destinations in the country.
Here’s a comprehensive overview of the Business Development Units (BDUs) established by Southern Railway to accelerate freight traffic growth across its network—highlighting structure, operations, impact, and recent updates:
Contents
1. 🚀 Formation & Purpose
In July 2020, following directives from the Railway Board, Southern Railway (SR) set up Business Development Units at both zonal headquarters (Chennai) and across all its six divisions—including Chennai, Palakkad, Salem, Trichy, Madurai, and Thiruvananthapuram—to drive freight business expansion and engagement with industry stakeholders
Each zonal BDU comprises senior officials:
- Chief Freight Transportation Manager (Convener)
- Chief Commercial Manager (Freight Marketing)
- Financial Advisor & Chief Accounts Officer—Traffic
- Chief Rolling Stock Engineer
Divisional BDUs are similarly structured, with representation across operations, commercial, finance, and mechanical departments
🎯 Mandate Includes:
- Attracting non-bulk and small-consignment freight traffic from industry and trade.
- Facilitating swift approvals and customer support for freight proposals.
- Acting as a single point of contact for prospective customers and industries
2. 🚛 Early Successes & Cargo Streams Captured
- Palakkad Division’s BDU successfully secured a cargo booking of 42 wagon-loads of refined palm oil (RAAG Gold brand) from Mangaluru to Lucknow, generating over ₹3.8 crore in revenue, within its first week of operation
- The Thiruvananthapuram Division also initiated its own BDU to support non-bulk commodity logistics, including industrial and agricultural consignments
3. 📈 Freight Growth Impact
As of FY 2021–22:
- SR loaded 30.56 million tonnes (14% growth), earning ₹2,744 crore from originating freight (~27% rise) compared to the previous year
- Incremental growth included 2.19 million tonnes of new commodity traffic—such as automobiles, edible oil, construction machinery, fertilizer, steel coils, pulses, crushers, and more—brought in through BDU efforts, earning ₹190 crore
- Average speed of goods trains improved from 28 km/h (2019–20) to 49.4 km/h by March 2022, enhancing wagon turnaround and reliability
4. 🧩 Technology & Customer Tools
- The Chennai Division launched a mobile app called “Freight Seva”—a one-stop portal offering information on:
- Incentive schemes
- Wagon types and goods permitted
- Goods shed facilities
- Tariff schedules and parcel rates
- Booking guidelines and documentation
This digital initiative helps bridge communication gaps and simplifies freight onboarding for businesses.
5. 👥 Interaction & Industry Engagement
BDUs in each division maintain regular interaction with trade bodies, FPOs, industries, and logistics partners, facilitating customized freight plans and easing red tape around approvals and infrastructure access
The overall objective aligns with Indian Railways’ broader target: doubling freight volumes by 2025, with a sharp emphasis on non-bulk parcel, export-oriented, and industrial traffic.
📋 Summary Table
| Component | Details |
|---|---|
| Zone-wide BDU Launch | July 2025, Zonal HQ (Chennai) + 6 Divisional BDUs |
| Structure | CFTM convenor; commercial, finance & mechanical team members |
| Initial Success | Palakkad: 42 wagon-load palm oil export traffic booked from Mangaluru to Lucknow |
| Freight Growth 21–22 | 30.56 MT loaded, ₹2,744 Cr revenue, 14–27% YoY growth |
| New Traffic Streams | Auto rakes, edible oil, machinery, chemical, exports, container, industrial goods |
| Speed & Efficiency | Avg. freight speed improved to ~49.4 kmph, better wagon turnaround |
| Digital Tool | “Freight Seva” app for customers in Chennai Division |
✅ Bottom Line
Southern Railway’s Business Development Units are playing a strategic role in expanding rail freight beyond traditional bulk flows. Through focused customer engagement, flexible tariff models, and tech-enabled support, SR’s BDUs have made freight booking more accessible and profitable—supporting national freight targets and fostering new cargo streams.
Would you like help with:
- Contact details for divisional BDUs in Chennai, Salem, Palakkad, etc.;
- Information on routing/export commodity corridors facilitated;
- Or guidance on engaging BDUs with a freight proposal?
Let me know—happy to assist further!