By Jawad Ahmed ISLAMABAD, Jan 27 (INP-WealthPK): When we talk about railway, the first thing that comes to our mind is train and passengers. However, many people are unaware that the primary profit for railway is in carrying cargo and freight rather than passengers. Rail freight service is critical to a country's economic progress because it provides a smooth and efficient flow of goods both locally and across borders. At the beginning of the 20th century, rail was the primary mode of surface freight transportation. By 1950, rail was transporting up to 90 percent of all freight in Africa, Latin America, and South Asia. With the passage of time, rapid transformation of the automobile industry happened, and the means of transportation shifted from railways to highways. Asia is still one of the few regions in the world where railway transportation plays a significant role in freight operations and has a lot of room for expansion. According to a research study published by Global Industry Analysts Inc, the global rail freight transportation market is estimated to reach $205 billion by 2026. Increased rail freight between Europe and China is benefiting the global rail freight transport industry. Rail freight connects 59 Chinese cities with almost 49 European cities. The adoption of new technology, infrastructural developments, and liberalisation contributed to the growth of the rail freight market. Pakistan Railways (PR) is a key public-sector transportation that contributes to the country's economic development and national integration. For the 7,791km route length, Pakistan Railways has 466 locomotives (461 diesel engines and five steam engines). According to the Pakistan Economic Survey, the total cargo and container traffic at Karachi Port Trust (KPT) increased by 21 percent in FY21. Export cargo and container volume increased by 3 percent, while imports increased by 31 percent. Similarly, Port Qasim handled a total cargo volume of 43.006 million tons during three quarters of FY21. On the other hand, Gwadar is in the process of becoming a gateway port for Pakistan as well as the entire region. Approximately, 60 percent of all international cargo handled by Pakistani ports is either going to or coming from Punjab province, which is over 1,200 kilometers from the Arabian Sea coast. However, the current infrastructure of Pakistan Railways is insufficient to meet the increased demand for transportation. According to PR's yearbook, rail transport currently accounts for barely 4 percent of total freight traffic. Single tracks, even on major railway lines, lack of availability of railroad freight cars, and limited port access service capacity are contributing to rail transportation's low proportion of the market. Connectivity of railway lines to ports, particularly Gwadar port, might be a game changer for the PR's freight operations and its profitability. If the hinterland rail was effectively connected, Gwadar Port could handle a sustainable level of containers. Improving ties with China, in particular, will undoubtedly enhance the volume of cargo handled by Pakistan’s ports. Rising freight volumes, infrastructural development, and the adoption of advanced technology will all help in bringing the PR out of the rut. In reality, without the railway, Pakistan's modern economy would struggle. Therefore, relevant authorities might encourage public-private partnerships, notably in the advancement of current and new infrastructure, to improve PR's performance. Finally, and most importantly, the PR needs to pay attention to its freight operations by considering the importance of railway in trade and globalisation.