2. WHAT IS A FREIGHT
CORRIDOR?
A dedicated freight corridor is a
specialized railway line or highway
designed and built specifically for the
transportation of freight or cargo. It is
separate from the existing passenger rail
or road network, allowing for efficient and
uninterrupted movement of goods.
Dedicated freight corridors are typically
constructed to overcome the limitations
and challenges of mixed-traffic routes,
where passenger and freight trains or
vehicles share the same tracks or roads.
3. Dedicated freight corridors offer numerous
advantages including
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Faster transit times
Reduced transportation costs,
Improved safety,
Increased capacity for handling growing
freight volumes.
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They can contribute to economic development by
promoting trade, attracting investments, and
facilitating the smooth movement of goods across
regions or countries.
4. CURRENT STATUS
Capacity
The current capacity of
Indian freight corridors is
1.25 billion tonnes per
annum (bpa). This is
expected to increase to
2.5 bpa by 2023-24.
Eastern Dedicated
Freight Corridor :
This corridor is 1,896 km
long and connects
Ludhiana in Punjab to
Kolkata in West Bengal.
It is currently operational
and has a capacity of 500
million tonnes per annum
(mtpa).
Western
Dedicated Freight
Corridor
This corridor is 1,504 km
long and connects Dadri
in Uttar Pradesh to
Jawaharlal Nehru Port
Trust (JNPT) in
Maharashtra. It is
currently under
construction and is
expected to be
operational by 2023-24.
The WDFC will have a
capacity of 750 mtpa.
Additional
corridor
In addition to the two
existing corridors, a third
corridor, the North-South
Corridor. This corridor
will be 1,500 km long and
will connect Delhi to
Chennai. The North-
South Corridor is
expected to be
operational by 2027-28.
5. TECHNOLOGY
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Dedicated Freight Corridor (DFC)
Signaling System
Double Stacked Container Trains
High-Speed Track Construction
Technologies:
Advanced Freight Terminal Operations:
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6. Capital
The estimated cost of the entire
DFC project was around 73,392 crs.
Indian rupees this cost includes
both the eastern dedicated freight
corridor (EDFC) and western
dedicated freight corridor (WDFC)
and covers various components
such as civil works, signaling,
electrification, land acquisition,
rolling stock, and other associated
infrastructure.
The cost for the project will be
funded by a combination of debt
from bilateral/multilateral agencies,
equity from ministry of railways and
public private partnership. The
capital structure of DFCCIL will
entail a debt equity ratio of 3:1.
9. CHALLENGES IN THE
RAILWAYS SECTOR
Land
Acquisition
Environmental
Clearances
Financial
Constraints
Operational
Challenges
10. ADDRESSING GAPS IN THE
RAILWAY FREIGHT CORRIDOR
SECTOR IN INDIA
Upgrading
Existing
Tracks
Building Dedicated
Freight Corridors
Investing in
Automation
Improving
Management
11. NATIONAL LOGISTICS POLICY (NLP) FOR
RAILWAY FREIGHT CORRIDORS IN INDIA
- The National Logistics Policy, launched in 2017
by the Ministry of Commerce and Industry, aims to
enhance the efficiency of the railway freight
corridor sector in India.
- Key goals of the NLP include increasing
capacity, reducing transit time, improving safety,
and enhancing connectivity for freight
transportation.
- The NLP outlines measures such as building
dedicated freight corridors, upgrading tracks,
investing in automation, improving management
practices, and providing training for railway staff.
12. PARALLELS BETWEEN INDIA AND USA
- Both India and the USA have extensive railway
networks to meet the growing demand for freight
transportation. India is the world's third-largest
country by population, while the USA is the third-
largest by land area.
- To address the increasing freight transportation
demands, both countries are investing in
dedicated freight corridors, separate tracks
exclusively for freight transport, to improve
efficiency and capacity.
- The construction and operation of dedicated
freight corridors are met with several challenges,
such as acquiring land, obtaining environmental
clearances, and securing sufficient funding for
the projects.
13. USA:
- The North American Rail Network (NAR) is a
proposed extensive freight corridor network that
aims to connect major cities in the USA and
Canada.
- The NAR is in the planning stages, and it is
projected to span 10,000 kilometers.
- The estimated cost for the NAR project is an
impressive $250 billion, reflecting the scale and
significance of the network.
- The expected completion date for the NAR is
2035, pending successful planning and
execution.
1. Western Dedicated Freight Corridor (WDFC)
- The WDFC is a major freight corridor spanning 1,504
kilometers, connecting Dadri in Uttar Pradesh to JNPT
(Jawaharlal Nehru Port Trust) in Maharashtra.
- The project's cost is estimated at ₹86,805 crore
(approximately US$11.8 billion).
- It is expected to be completed by 2023, significantly
boosting freight transportation capacity in the western
region of India.
2. Eastern Dedicated Freight Corridor (EDFC)
- The EDFC is another crucial freight corridor covering
1,856 kilometers, linking Ludhiana in Punjab to Dankuni
in West Bengal.
- The project's estimated cost is ₹108,000 crore
(around US$14.5 billion).
- The EDFC's expected completion date is in 2024,
enhancing freight connectivity in the eastern part of
India.
14. PREDICTED GROWTH OF INDIA AFTER
COMPLETION OF DEDICATED FREIGHT CORRIDORS
- The completion of dedicated freight corridors in
India is expected to have a significant impact on the
country's freight transportation sector.
- It is projected that the share of railways in overall
freight traffic will increase from 27% to 40% by 2030,
demonstrating the effectiveness of the corridors in
shifting freight traffic from other modes of
transportation.
- The World Bank has estimated that the dedicated
freight corridor project will generate approximately
₹1.5 trillion (US$19 billion) in economic benefits over
the next 30 years.
- During the construction phase, the project is
anticipated to create 2 million jobs, and during its
operation, it will generate an additional 1 million jobs.