Advertising industry can significantly add to Railways' revenues: Suresh Prabhu

Indian Railways, one of the world's largest railway networks comprising around 115,000 km of track over a route of 65,436 km and 7,172 stations, moves an estimated 8.3 billion passengers every year, or 23 million passengers a day. The rail network is also a lifeline for the movement of cargo across the country. The expansive infrastructure that supports the railway operations that includes the trains and railway stations, also serve as an extensive canvas for brand advertising.

Union Railway Minister Suresh Prabhu has taken a visionary approach to modernise the railway infrastructure and services and to accelerate the railways' revenue growth. He sees a potentially key role for the advertising industry in growing the railway revenues as well as certain classes of railway infrastructure.

In the run-up to the Outdoor Advertising Convention (OAC) that will be held in Mumbai during July 24-25, the Railway Minister shares his perspectives on the role of advertising industry in the Railway sphere in an interview to Outdoor Asia's Managing Editor Rajiv Raghunath. Edited excerpts of the interview:  

  

You have envisioned the modernisation of Indian Railways and rapid expansion of the rail infrastructure across the country. Accelerated revenue growth is one of your stated goals. Do you think that increased non-traffic revenues through avenues like advertising revenues can make a difference to Railways' revenue growth?

Non-traffic avenues like commercial publicity have the potential to significantly add to railways' revenues. It is an evolving area in Indian Railways (IR) and advertisement can play a big role in taking the message across to the customers in a growing economy like ours.

Down the decades, various railway properties have provided media for advertising, such as, trains and railway stations. Do you see a scope for more innovative advertising opportunities in the Railways sphere, on the lines of what is seen in the developed countries?

Yes. With increasing reach of visual media, some areas where Indian Railways is looking to explore are through internet/websites, video walls, onboard entertainment on trains, branding of trains and stations, etc
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You had set up a taskforce to submit a detailed report on how to utilise the idle space in coaches, wagons, trains, railway stations, consumable items, utensils, beddings, which could be used for advertising, publicity and to generate additional revenues. Are there any further developments on this count?

The Task Force submitted its report in May. The report has been approved in principle by the Board.

Advertising firms are engaged in various public private partnership projects (PPPs), such as, development civic amenities, transport infrastructure and the like, in lieu of ad rights. Do you see a greater role for advertising firms in similar PPPs in the Railways?

We are open to look at all models including PPPs and commercial publicity rights to bring revenue for developing infrastructure for Indian Railways.

Advertising firms investing in the infrastructure sector are increasingly looking at long-term projects that go beyond 10 years, even up to 20 years. Is there scope for engaging advertising firms in Railway projects that offer long-term contracts?

The Task Force has recommended that the requirement of the industry with regard to the options available for commercial publicity on IR can be ascertained through a Media Evaluation Agency which will also recommend the period of contract based on the investment - returns cycle for different media platforms.

Time to time, various advertising firms take up train branding, especially of prestigious trains like Rajdhani Express and Shatabdi Express, and also take up the maintenance of the trains and deliver consumer services to the travellers. Do you see such projects increasing in scale? Can this model be applied across various categories of trains, and in different cities and towns?

The Task Force has recommended that RITES may be engaged to take up the branding exercise on behalf of IR. RITES will take need-based support from media agencies for developing a branding concept which meets the requirement of the industry as well as IR.

Looking ahead, do you see any new ways to engage the advertising industry in the overall development of Railway infrastructure and services?

In addition to helping the Railways generate additional revenue for IR, the advertising industry can help in dispensing information to the general public as well as educate the public in using the assets and premises of the Railways in such a way that it ensures cleanliness, creates a sense of ownership and brings pride in being a user of Indian Railways.