<p data-path-to-node="5">Indian Railways could unlock <b data-path-to-node="5" data-index-in-node="48">100 million metric tonnes (MMT)</b> of additional annual freight volume and secure <b data-path-to-node="5" data-index-in-node="127">₹8,700 crore ($1.04 billion)</b> in fresh freight revenue by making rail transport accessible to Micro, Small, and Medium Enterprises (MSMEs). According to a joint knowledge paper released by <b data-path-to-node="5" data-index-in-node="315">FICCI</b> and <b data-path-to-node="5" data-index-in-node="325">KPMG in India</b> titled <i data-path-to-node="5" data-index-in-node="346">"Unlocking Rail Freight Growth: Making Rail Accessible for India's MSMEs"</i>, addressing structural access barriers could double the railways' current non-bulk freight loading figures.</p><p data-path-to-node="6">Despite rail offering a direct cost advantage costing <b data-path-to-node="6" data-index-in-node="54">₹1.96 per tonne-km</b> compared to <b data-path-to-node="6" data-index-in-node="85">₹3.78 per tonne-km</b> for road transport MSMEs continue to rely heavily on highways due to first- and last-mile friction, terminal handling delays, and rigid wagon procurement terms.</p><h3 data-path-to-node="8"><b data-path-to-node="8" data-index-in-node="0">Hidden Logistics Costs Offset Rail's Pricing Edge for Small Shippers</b></h3><p data-path-to-node="9">The FICCI-KPMG study outlines key structural constraints limiting MSME rail adoption across India's manufacturing belts:</p><ul data-path-to-node="10"><li><p data-path-to-node="10,0,0"><b data-path-to-node="10,0,0" data-index-in-node="0">Disproportionate Logistics Burden:</b> MSMEs generate over 31% of India's GDP, 35% of manufacturing output, and nearly 50% of national exports. However, small businesses bear logistics costs as high as <b data-path-to-node="10,0,0" data-index-in-node="198">16.9% of output value</b>, compared to just <b data-path-to-node="10,0,0" data-index-in-node="238">7.6%</b> for large corporations.</p></li><li><p data-path-to-node="10,1,0"><b data-path-to-node="10,1,0" data-index-in-node="0">The Total Logistics Cost Gap:</b> The report introduces the <b data-path-to-node="10,1,0" data-index-in-node="56">Total Logistics Cost and Impact (TLCI) Framework</b>, showing that while rail freight tariffs are significantly lower on paper, hidden expenses including cargo aggregation fees, terminal handling charges, inventory carrying costs, and unpredictable transit times negate the tariff benefit for small parcel sizes.</p></li><li><p data-path-to-node="10,2,0"><b data-path-to-node="10,2,0" data-index-in-node="0">Two-Tier Terminal Infrastructure:</b> Private sidings and Gati Shakti Cargo Terminals handle nearly 72% of outward rail freight but primarily serve large industrial conglomerates. In contrast, common-user railway goods sheds used by MSMEs frequently lack mechanization, modern warehousing, and digital tracking systems.</p></li><li><p data-path-to-node="10,3,0"><b data-path-to-node="10,3,0" data-index-in-node="0">Proposed Strategic Frameworks:</b> To bridge the access gap, the report advocates adopting two operational models: the <b data-path-to-node="10,3,0" data-index-in-node="115">Market Aligned Terminal Accessibility (MATA)</b> model to modernize common-user goods sheds, and the <b data-path-to-node="10,3,0" data-index-in-node="212">Wagon Access and Availability (WAA)</b> model to encourage smaller wagon sizes, flexible booking terms, and private wagon leasing tailored for fragmented shipments.</p></li></ul>