Rail transport is a lifeline for country’s transportation system because rail network is used by the majority of people as well as by the companies for transferring goods from one place to another as it is quite cheap as well as safe when compared to other means of transport. In order to get a clear idea about the rail transportation system, one should look at various important features or characteristics of rail transport –
Characteristics of Rail Transport
Government Sponsored
The first and foremost feature of railways is that it is sponsored by the government implying that all the expenses relating to purchasing of land, making rail tracks on that land, purchase of locomotives, employing staff and so on is done by the money of the government. In simple words, it is the government which is the largest shareholder in railways and there is little or no participation from private companies.
Monopoly
Another feature of railways is that government has the monopoly in running of railways and no private company can enter into railway sector without the permission of the government. In simple words in case of railways government is the price maker as there is no competition in this sector and hence government enjoys monopoly power in case of railways.
Comfortable and Safe Journey
Another feature of rail transport is that it is comfortable as well as safe journey as compared to road transport because in case of road transport you cannot move freely which is not the case in railway transport besides the incidents of railways having accidents is lesser as compared to road transport where the incidents of accidents are higher.
High Investments is required
Railways require huge investments because railways require complete infrastructure like railway tracks on difficult terrain, locomotive coaches and other setups which involves a lot of investments. In simple words unlike when one compares rail transport with all other transports than one can safely say that rail transportation requires the highest investment.
Less Flexibility
Railways run on designated routes besides they have fixed time of arrival as well as departure which makes them less flexible as compared to road transport where both routes of travel, as well as the timing of travel, can be altered easily by the person who is traveling by road transport.
As one can see from the above characteristics of rail transport that this mode of transportation is unique as well as holds strategic importance from the government point of view and that is the reason why governments across the world seldom allow private players to operate or enter into rail transportation system of the nation.