Page 20 - ITLN May June 2023 Magazine

Special Report
Dedicated Freight
Corridors

Photo: Dedicated Freight Corridor Corporation

and priority to passenger trains, goods with a further 30 percent savings on cost. continue to flourish, MSMEs grow,
traffic moves very slowly and is often This reduction in both travel time and and production linked incentive (PLI)
held up. This results in long transit cost could be a high magnitude stimulus schemes favour the economy, cargo
time and consequent high transit costs towards growth and productivity." growth will remain robust, thereby
making the freight business suffer in ensuring parity between demand and
two ways for Indian Railways. Demand for wagons capacity, says Bhatia of Maersk. "With
"It is obvious that Indian Railways DFCs are presently admitting 25T axle the DFC becoming a reality and trials
will act on both fronts and would surely load wagons, says Lohia. "Since, we finally evolving into operational runs, we
implement dedicated freight corridors have thrown more than 50 percent of are about to embark on a generational
by adding 3rd & 4th lines, and doubling our capacity open to the private sector shift in which cargo flows between
and tripping the tracks within the companies, we are in a position to reach the North Indian hinterlands and the
existing network." out to most of them and are able to fill gateway ports on the west coast. More
our bucket for the next two years. We dedicated capacity, timeliness of freight
Cost reduction anticipate that this trend will continue movement and speed to market will
"For further cost reduction, more and demands will sustain for a few more help exporters plan shipments better
feedering options into nodal points, years to come. and reduce logistics costs."
relooking at tariff costs of 20ft "DFCs will majorly attract container The NRP aims to increase the share
containers and passing on double stack cargo, and therefore container carrying of freight traffic from the current 27
benefits of lower deck containers are wagons will be in demand. Other percent to 45 percent by 2030, adds
low-hanging fruits for the trade and will general and special-purpose wagons Lohia. "The plan also incorporates
hopefully be implemented soon," says will also likely come up." construction of DFCs as an important
Bhatia of Maersk. policy measure to arrest the trend of
The government, according to Future plans falling market share of Railways in
documents available in public domain, The government has approved the the country. The NRP also signifies
plans to commission DFCs of 2,800 kms preparation of detailed project reports for an increase in railway freight share
by 2022, 3,900 kms between 2023-31, three new DFCs connecting mineral-rich to be able to develop a capacity
1,200 kms in the next 10 years and the regions and ports of east India including that will cater to the demand in the
last, about 750 kms, by 2051, says Lohia East-Coast Corridor from Kharagpur upcoming years. To encourage private
of Jupiter Wagons. to Vijayawada, East-West Corridor from investment, numerous other schemes
"A binary logistic model has been Palghar to Dankuni and North-South such as general purpose wagons,
used to assess the benefits. When Corridor connecting Itarsi to Vijayawada, special purpose/high capacity wagons,
average speed increases to 50 kmph, the says the annual report of DFC. automobile carrier wagons, etc. have
rail freight share can go up to 45 percent As India’s merchandise exports been introduced in the NRP." 
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