Risks, determinants, and perspective for creating a railway biodiesel supply chain: case study of India

Abstract

Globally, the demand for energy is increasing, and the transportation sector is a major consumer of energy. There has been a momentum and a mandate to promote the use of biofuels. Although biofuel usage has been analysed extensively from the technological viewpoint, very few researchers have studied biofuel implementation and the supply chain. Biodiesel is being considered as an alternative fuel for railway transportation, which poses some challenges given the structural constraints of the industry. As has been argued, for the successful implementation and adoption of biodiesel in the railway sector, a tailor-made country-specific supply chain should be designed. The paper discusses how geographically diverse demand and common technological usage points complicate the decision to make or buy in the context of railway transportation. Furthermore, the biodiesel and diesel supply chains are compared, risks of a biodiesel supply chain are identified, and implementable strategies are suggested. Indian Railways is a bulk consumer of fuel, and as a public sector focal firm, it should take the lead in sustainable transportation solutions in view of energy security requirements. This study is unique because it deals with a biodiesel supply chain in a public sector transport organization in an emerging economy.