Font size: 18px14px
Print
Dedicated Freight Corridors (DFCs)
Context:
Dedicated Freight Corridors (DFCs) are boosting India’s GDP and contributing significantly to Indian Railways’ revenue, according to a study by the University of New South Wales, Australia.
More on News
- The study found that reduced freight costs and travel times on DFCs have lowered commodity prices by up to 0.5% and contributed 2.94% to Railways’ revenue growth from FY 2018–19 to FY 2022–23.
- Published in the journal Elsevier, the study analysed data from the Western Dedicated Freight Corridor (WDFC) using a Computable General Equilibrium model.
What are DFCs?
- DFCs are designated routes for freight transport, facilitating faster and higher-capacity trains, including double-stack and heavy-haul trains.
- This enhances supply chains for industries located along these economic corridors and supports export-import growth.
- Initiated by the Ministry of Railways in 2006, two major DFCs were constructed: the Eastern Dedicated Freight Corridor (EDFC) from Sonnagar (Bihar) to Sahnewal (Punjab), spanning 1,337 km, and the WDFC from Jawaharlal Nehru Port in Mumbai to Dadri (Uttar Pradesh), covering 1,506 km.
- The EDFC is fully operational with links to coal mines and thermal power plants, while the WDFC, at 93% completion, serves various cement plants and ports in Gujarat.
- It is expected to be completed by December 2025. As of March 31, 2024, Rs 94,091 crore has been spent on the DFC project, excluding land acquisition costs.
Why DFCs?
- The DFCs address two key needs: easing congestion on the overutilised “golden quadrilateral” linking Delhi, Mumbai, Chennai, and Howrah, which covers only 16% of rail routes but handles over half of the Railways’ freight traffic, and reversing the decline in Railways’ share of total freight traffic, which the National Rail Plan aims to raise to 45% by 2030.
- In 2006, Prime Minister Dr. Manmohan Singh inaugurated the DFC project; DFCCIL was established as a Special Purpose Vehicle to construct and maintain these corridors.
Current Status
- Currently, 325 DFC trains run daily, a 60% increase over the previous year, with freight trains moving faster, carrying heavier loads, and operating more safely.
- DFCs have transported over 232 billion Gross Tonne Kilometres (GTKMs) and 122 billion Net Ton Kilometres (NTKMs).
- Over 10% of Indian Railways’ freight now runs on DFC lines, and DFCCIL is conducting a broader study on the DFCs’ impact on the Indian economy.
- Four additional corridors are also proposed: the East Coast Corridor (Kharagpur-Vijayawada), two East-West Sub-corridors (Palghar-Dankuni and Rajkharsawan-Andal), and the North-South Corridor (Vijayawada-Itarsi).
National Rail Plan (NRP)
Envisioned for 2030, it aims to create a comprehensive and future-ready railway system. The plan is a strategic initiative by Indian Railways to enhance operational capacity, improve infrastructure, and increase the modal share of railways in freight transport to 45% by 2050.
Key Objectives:
- Capacity Creation: The primary goal is to develop railway capacity ahead of projected demand, ensuring that the system can accommodate growth up to 2050.
- Modal Share Increase: The NRP aims to boost the railways’ share in freight transport significantly, targeting a 45% share by 2050.
- Infrastructure Development: Identification of critical and supercritical projects for completion by 2024, including:
- 58 Supercritical Projects totaling 3,750 km at an estimated cost of ₹39,663 crore.
- 68 Critical Projects spanning 6,913 km with a projected cost of ₹75,736 crore.
- High-Speed and Dedicated Freight Corridors: The plan includes the establishment of new dedicated freight corridors and high-speed rail lines to enhance efficiency and reduce travel times.
- Improvement in Freight Train Speed: Aiming to increase the average speed of freight trains from approximately 24 km/h to 50 km/h.
- Enhanced Passenger Experience: Plans include operationalising new train services like Vande Bharat trains and improving amenities at railway stations.
Comprehensive Framework:
- Investment in Technology: Upgrading signalling systems and electrifying the entire network.
- Doubling and Multi-tracking Lines: Targeting high-density routes for enhanced capacity and reduced congestion.
Importance of Railways in Logistics:
- Freight Capacity: Indian Railways has a significant capacity for freight transport, handling approximately 1,418 million tonnes of goods annually. This is essential for industries such as agriculture, mining, and manufacturing, which rely heavily on efficient transportation of their products.
- Cost-Effectiveness: Rail transport is generally more economical for bulk goods compared to road transport. It significantly reduces logistics costs, which currently account for about 8.9% of India’s GDP.
- Environmental Benefits: Railways are considered a greener mode of transportation due to their lower carbon emissions per tonne-kilometre compared to road transport.
Current Challenges:
Despite its advantages, the share of railways in freight transport has declined from 86.2% in 1950-51 to about 33% in 2015, primarily due to several challenges:
- Capacity Constraints: Many railway lines are over-utilised, with two-thirds operating at over 100% capacity. This leads to delays and reduced reliability for freight services.
- Track Sharing: The same tracks are often used for both passenger and freight trains, with passenger services prioritised, which can slow down freight operations.
- Inadequate Infrastructure: There is a need for dedicated freight corridors and improved terminal capacities to enhance the efficiency of rail logistics.
Initiatives for Improvement:
- Dedicated Freight Corridors (DFCs): These corridors are being developed specifically for freight trains, allowing for faster and more reliable transport by separating freight from passenger services.
- National Rail Plan (NRP): Launched with a vision for 2030, the NRP aims to increase the modal share of railways in freight transport to 45% by 2050 through strategic investments and capacity enhancements.
- Public-Private Partnerships (PPP): Encouraging private investments in railway infrastructure and services is expected to boost operational efficiency and service quality.
