DEDICATED FREIGHT

CORRIDOR
Shashank Namdeo
2015CET2152
 DEDICATED FREIGHT CORRIDOR
 Under the 11th Five Year Plan of India (2007–12),
Ministry of Railways is constructing a Dedicated Freight
Corridor (DFC).
 A project of Railways having high-tech construction
techniques, fully electrified rail line, modern signal
system and zero unmanned crossing.
 A connectivity between hinterland-port and industries-
mines.
 The entire project is being undertaken on engineering
procurement contract basis with funding from Japan
International Cooperation Agency (JICA) and World
Bank(IBRD).

2
 Necessity
 Over the last 2 to 3 years, the railway freight traffic has
grown by 8 to 11%.
 Existing routes are highly saturated, line capacity
utilization varying between 115% to 150%.
 New passenger trains can be run on existing routes
without delay.
 Freight traffic have high return as compare to
passenger which increase our GDP to 7.5% to 9%.
 Freight movement is not reliable and not efficient
 Not so good hinterland connectivity from major sea
ports like JNPT which causes slow import-export.

3 Source- DFCCIL
 Necessity
 As per a 30 year greenhouse gas (GHS) emission
forecast, if there were no dedicated freight corridors,
the GHG emissions would be 582 million ton CO2,
while the emissions with the two DFCs in service would
be less than one-fourth at 124.5 million ton CO2.
 Demand of goods is increasing but our transportation
system are currently not equipped to respond to this
demand.

4 Source- Press Information bureau, Govt of India -

 Necessity

5 Source-Morgan Stanley Research, 2015

 Necessity

6 Source-Morgan Stanley Research, 2015

PROJECT TIMELINE
 Timeline

April 2005 May 2005 Jan 2006 October Nov 2007 Feb 2008
• PM • Committee • Cabinet 2006 • CCEA gave • CCEA
Manmohan on approved • On the approval for approved
Singh and Infrastructur the report of recommend preliminary EDFC &
Mr. Lalu e (COI) the Task ation of the work WDFC
Prasad constituted Force of the Task Force including • Authorized
Yadav a Task COI of COI, a land expenditure
announced Force • RITES SPV acquisition up to
a DFC • To suggest submitted • “DFCCIL” Rs.28181
project a new the crore
was
organization Feasibility incorporate
al structure Study
Report of
corridors to
Railways

8
 Timeline

March Oct 2011 Jan 2013 March June Dec 2014

2009 • Loan • First civil 2013 2013 • Loan
• Cabinet agreement contract of • Japan • First Civil agreement
approved with World EDFC International contract for with World
JICA loan Bank for awarded Cooperation WDFC Bank
for WDFC Rs.5850 worth Agency loan awarded signed for
for Rs.5100 crore for Rs.3267.54 agreement
EDFC-I crore EDFC-II
crore for for WDFC-II
WDFC-I of Rs.7750 • June
crore signs 2015
• World Bank
sanctioned
for EDFC-III

9
 Dedicated Freight Corridor
Corporation Of India Limited
 Dedicated Freight Corridor Corporation of
India Limited (DFCCIL)
 DFCC has been registered as a company under the
Companies Act 1956 on 30 October 2006.
 It is a corporation run by the Ministry of Railways
(India) and 100% equity from Ministry of Railways.
 The credit rating of DFCCIL is “AAA”, the highest
Corporate rating by CRISIL.
 The entire cost is financed by Debt and Equity. The
Debt-Equity in 3:1 ratio and debt will be taken from
Japan and World Bank.
 The function of DFCCIL are –
a) To undertake planning & development of DFC
b) Mobilization of financial resources and construction of
DFC
c) Maintenance and operation of DFC
Source- DFCCIL
11
 Dedicated Freight Corridor Corporation of
India Limited (DFCCIL)
 DFCCIL has adopted the FIDIC Yellow Book
(Federation Internationale des Ingenieurs - Conseils
(FIDIC) 1999),, for all its contracts, instead of IR’s
General Conditions of Contract.

 The Financial Internal Rate Of Return to DFCCIL is

17% at constant price(not considering inflation of 6%
p.a.) and if construction cost increases by 30%, still the
FIRR is 14% estimated by sensitivity test.

Source- Project Management National Conference, India, sept’15

12
 Objective

13 Source : DFCCIL
 Expected Project Completion
Section Expected Completion
EDFC
1. Bhaupur-Khurja 342km March 2018
2. Bhaupur-Mugalsarai 402Km December 2018
3.Mugalsarai-Sonnagar 123Km December 2017
4.Dadri-Khurja-Ludhiana 450 Km December 2019
WDFC
1. Dadri-Rewari 127 Km Sept 2019
2. Rewari-Iqbalgarh 625Km June 2018
3. Iqbalgarh-Vadodra 325 Km March 2019
4. Vadodra-JNPT 425Km October 2019

14 Source : DFCCIL
 Status Till June 2016
 Total length of corridor - 3360 Km
 Total estimated cost - Rs. 81,459 Crores
 Total Expenditure
including land till date - Rs. 22,315 Crores
 Overall Financial progress - 27.4%
 Overall Physical progress - 29%
 86% of the 10548 hectares land required has been
acquired.
 Environmental clearances obtained for the projects
passing through nine States and 61 districts.

15 Source : DFCCIL
 Status of Award Of Contract

16 Source : DFCCIL
 Comparison With Present Condition
Parameters Indian Railways Network Dedicated Freight
Corridor Network

Freight Train Speed Average 25 Kmph Average Max speed

75Kmph 100 Kmph

Some Vital Stats 700 m 58 5000 1500m 120 13000

length wagon tonnes length wagon tonnes

Locomotive Power 4000-5000 HP 12000 HP

Laying of Tracks Manual Mechanised

100-150 m/day 1.5 Km/day

Time Tabled Freight Trains Will initiate on pilot basis All trains will run as per
time rable

Source- http://www.railnews.co.in/dfc-can-be-a-game-changer-for-indias-
17 economy/
 Comparison With Present Condition

18 Source : DFCCIL
 Comparison With Present Condition
 The time require to stop the freight train is 6-7 mins but
after implication of better technology in DFC, train can
stop within 1.5mins.
 Carbon emission-

Source- IIM Ahmedabad case study on low

19 carbon transport
 Route of Corridor
 Approved corridors
1. Eastern corridor(EDFC)
2. Western corridor(WDFC)

 Proposed corridors
1. East-West corridor
2. North-South corridor
3. East Coast corridor
4. South-West corridor

20
 Proposed Corridors
1. East-West corridor
 From Kolkata to Mumbai of length 2000Kms
2. North-South Corridor
 From Delhi to Chennai of length 2173 Kms.
3. East Coast Corridor
 From Kharagpur to Vijaywada of length 1100 Kms
4. South-West Corridor
 From Chennai to Goa of length 890 Kms having
branche at Mangalore

 These freight corridors plan through PPP model as

much as possible as said in Railway Budget 2016-17.

21
EASTERN DEDICATED
FRIEGHT CORRIDOR
 Eastern Dedicated Freight Corridor

23
 Eastern Dedicated Freight Corridor
Eastern DFC
Section Distance Status
Ludhiana - Khurja 404

Dadri-Khurja 46 GMR Group

Khurja - Bhaupur (near TATA Projects India-Aldesa

343
Kanpur) Spain

Bhaupur (near Kanpur) -

393 GMR Group
Mughalsarai
C&C Construction Gurgaon
Mughalsarai - Sonnagar 118
and BSCPL
Sonnagar - Dankuni 538 PPP Model
Total 1839

24 Source : DFCCIL
 Eastern Dedicated Freight Corridor
 EDFC mainly benefits-
1. Coal for power plants in the northern region
from coalfields in Bihar, Jharkhand and Bengal
2. Finished steel and iron from Jharkhand and
Chhattisgarh
3. Food grains and Cement.
4. Connecting Logistic parks at Kanpur and
Ludhiana which is going to be developed
through PPP mode.

25 Source- Press Information bureau, Govt of India

 Eastern Dedicated Freight Corridor

26 Source : DFCCIL
 PPP model of Sonnagar-Dankuni
Stretch
 This rail route proposed later by former Honorable Railway
Minister Mamta Banerji in 2009.
 Stuck for over two years due to lack of investor interest,
the Rs.16,000 Crore Son Nagar-Dankuni section of the
eastern freight corridor is to be built on public-private
partnership (PPP).
 This 550 Km stretch based on “Design-build-finance-
operate-transfer” model.
 Construction has been started from 2014(Phase-I) and
2015(Phase-II).
 The concession period shall not be shorter than 20 years or
longer than 30 years.

27
 PPP model of Sonnagar-Dankuni
Stretch
 The revenue of concessionaire will be in the form of
50% of traffic revenue earned by using that line only.
 In case 80% of total traffic during concession peiod is
not reached on target date(20-30years), for every 4%
shortfall, the concession period shall be extended by 1
year and reverse principle shall apply if actual traffic
exceeds the threshold traffic.

28
 PPP model of Sonnagar-Dankuni
Stretch

29
WESTERN DEDICATED
FREIGHT CORRIDOR
 Western Dedicated Freight Corridor

31
 Western Dedicated Freight Corridor
 From Dadri, Uttar Pradesh to Jawaharlal Nehru Port,
Mumbai.
 Total length 1,468 kms.
 The DFC Project is an important part of “Delhi-
Mumbai Industrial Corridor (DMIC) initiative”, to
create industrial parks and logistics bases with well-
developed infrastructures in the area 150 kms to either
side of the Western Corridor.
 Japan showed interest in WDFC and provide loan in
2006 to India.
 At terminal Dadri, this line further extended to connect
EDFC
 Total land for acquire 6000 Ha and 94.5% land has
been acquired upto June’16.

32 Source : DFCCIL
 Western Dedicated Freight Corridor
 WDFC will mainly benefit export-import of
1. Container traffic
2. Petroleum, oils and lubricants
3. Import fertilizers, food grains, cement, salt, and iron
and steel.

 The expected traffic over WDFC in 2021-22 is

expected to be 152.24 million tones.

33 Source- Press Information bureau, Govt of India

 Western Dedicated Freight Corridor
October 27, 2009 : Phase 1 (I)
Loan Agreement Date: March 31, 2010 : Phase 1 (II)`
July 26, 2010 : Phase 2 (I)

2.6 billion yen : Phase 1 (I)

Loan Amount: 90.3 billion yen : Phase 1 (II)
1.6 billion yen : Phase 2 (I)

0.01%* : Phase 1 (I)

Interest(%): 0.20%** : Phase 1 (II)
0.01%* : Phase 2 (I)

Repayment/Deferment Period (Years): 40/10**

Ministry of Railway/
Executing Agency: Dedicated Freight Corridor Corporation of India
Limited (DFCCIL)

Haryana, Rajasthan and Gujarat (Phase 1) /

State: Uttar Pradesh, Haryana, Gujarat and Maharashtra
(Phase 2)

34
 Western Dedicated Freight Corridor
Western DFC
Section Distance Status
Dadri - Rewari 141 L&T-Sojitz Consortium[3]

Rewari - Iqbalgarh (near

626 L&T-Sojit z Consortium.
Palanpur)

Iqbalgarh (near Palanpur) - L&T,Sojit & Gayatri Projects

304
Vadodara Consortium

Mitsui-IRCON-TATA
Vadodara - Sachin(near Surat) 163
Consortium [4]

Sachin-(near Surat) - Jawaharlal Mitsui-IRCON-Tata

265
Nehru Port Consortium[5]

Total 1499

35 Source : DFCCIL
 Progress of WDFC

36 Source : DFCCIL
BOTTLENECK IN PROJECT
 Bottlenecks in Project
 DFCCIL formed 10 years back but still 84% contracts
have awarded till May’16.
 9 states, 61 districts, more than 2100 villages, more
than 3 lakh people affected by this project
 Out of more than 7000 arbitration cases and 1500 court
cases pertaining to land acquisition, only 50% of both
have solved yet.
 The Indian Govt. wanted to run double-stacked
containers in WDFC by diesel locomotives but Japan
International Cooperation Agency (JICA), the lender of
WDFC, suggested electric locomotives.
 The JICA norms say that there must be involvement of
Japanese partner as a lead contractor in every contract.
This causes several conflicts and result delay.

Source- http://www.thehindu-businessline.com/news/with-civil-contracts-awarded-freight-
38 corridor-project-firmly-on-track/article
 Bottlenecks in Project
 Even after completion of DFC, the challenges land
acquisition for Logistic Parks near corridor and their
completion.
 The WDFC is crossing Sanjay Gandhi National Park(1.1
Km), wildlife clearance is required(under wildlife
protection act 1972), The clearance made it mandatory for
the DFC to build four animal passes to facilitate the safe
passage of wildlife on either side of the rail line. This
causes further delay
 In JNPT-Dahanu corridor, DFCCIL is cutting mangrove
forest and seek Environment clearance(under
Environmental Protection Act 1986). Now, DFCCIL need
to plant 10 tree per one removal every year. Because of this,
the project is further time and cost overrun.

Source- http://www.dnaindia.com/india/report-railway-dedicated-freight-
39 corridor-now-on-track-2067083
THANK YOU !!