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Public Private Partnership (PPP) in Railways: by Chairman Railway Board Government of India

The document discusses opportunities for public-private partnerships (PPPs) in developing India's railway infrastructure to meet growing demand. It outlines that PPPs can help mobilize the large funds needed, as traditional government funding will not be enough. Examples of past state government participation in railway projects through PPPs are provided. The document also details various current and planned PPP railway initiatives regarding container transport, wagon investment, railside warehousing, logistics parks, port connectivity, and the major Dedicated Freight Corridor projects. States are encouraged to partner through PPPs to develop remote area connections, logistics hubs, and other opportunities that can boost railway infrastructure development and capacity.

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183 views20 pages

Public Private Partnership (PPP) in Railways: by Chairman Railway Board Government of India

The document discusses opportunities for public-private partnerships (PPPs) in developing India's railway infrastructure to meet growing demand. It outlines that PPPs can help mobilize the large funds needed, as traditional government funding will not be enough. Examples of past state government participation in railway projects through PPPs are provided. The document also details various current and planned PPP railway initiatives regarding container transport, wagon investment, railside warehousing, logistics parks, port connectivity, and the major Dedicated Freight Corridor projects. States are encouraged to partner through PPPs to develop remote area connections, logistics hubs, and other opportunities that can boost railway infrastructure development and capacity.

Uploaded by

nehal10
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Public Private Partnership (PPP) in Railways

By Chairman Railway Board Government of India

Conference of Chief Secretaries on PPP in Infrastructure 20th May, 2006

Background
High Growth Rate of Economy will generate Huge Transportation Demand Pressure on existing Rail Network calls for Expansion of Capacities Reducing cost of operation will require keeping pace with Technology Capacity generation and Modernization will require Mobilization of Huge Funds More than Rs. 47,000 Crores required to complete almost 240 sanctioned Projects

Public Partnership in Rail Infrastructure Projects


Background State Government offered Financial Participation
Navi Mumbai connectivity through CIDCO in 1986 Creation of Konkan Railway Corporation in 1990 with State initiatives Sub-urban Projects in Mumbai, Chennai and Kolkata

Public Partnership in Rail Infrastructure Projects


Participation of States through SPV for financing Projects Karnataka K-RIDE HMRDC Maharashtra MRVC Gujarat Kutch Railway Company

Public Partnership in Rail Infrastructure Projects


Cost sharing in Rail Infrastructure Projects
Jharkhand -6 projects Karnataka -3 Projects Maharashtra- 3 Projects Tamil Nadu- 3 Projects West Bengal-1Project Andhra Pradesh- 1 Project Haryana- 1 Project

Rail Projects through PPP

Surendranagar-Pipavav Gauge Conversion (PRCL) Pipavav Rail Corporation Limited Connectivity to Pipavav Port Gandhidham-Palanpur Gauge Conversion (KRC) Kutch Railway Company Improving Connectivity to Mundra & Kandla Port

Recent Initiatives
Private parties to run container trains Wagon Investment Scheme Development of Rail-side Warehouses & Logistic Parks Strengthening Rail Port Connectivities Development of Dedicated Freight Corridors

Private Operators for Container Operation


Sector Opened in 2006 Licenses offered for various corridors (Exim & Domestic) to 14 players Rs 540 Crore generated as fees Generation of Terminal & Wagon Capacity ROR of approximately 20% for investors

Wagon Investment Scheme


Launched in 2005-06 Wagon procurement Guaranteed supply of rakes for loading 10% rebate on freight charges Rs 250 crore generated from 25 Rakes

Development of Rail Side Warehousing


Door-to-Door service Land at nominal fees by Railways 5% minimum revenue to be shared with Railways Lease period 30 years MoU with CWC has been signed to set up rail side warehouse at 22 locations. Agreement finalised for 10 locations

Development of Logistics Parks


Objective: Complete logistics solution Reduction in Door Bridging Cost Development of multi-user/ multi-commodity rail handling and warehousing facilities State Government are invited to participate in the venture

Port Connectivity Works


Rail Connectivity provided to Mundra and Pipavav Port Connectivity Strengthened for Mundra , Kandla and Mangalore Port Strengthening / New Port Connectivity through SPV route being explored for Paradip, Krishnapatnam, Dahej and Hazira Ports by RVNL

Dedicated Freight Corridors


Capacity Augmentation considering growth in Container ,Coal, Iron &Steel 2700 km Corridor on Eastern & Western Routes will cost Rs. 22,000 Crore Incremental Traffic of 97 million tonne and 4 million TEU projected by 2021-22 on both corridors

Traffic Projections
Route 2004-05 (Million Tonnes) 56 (32Trains*) 17 5 (15Trains**) 2021-22 (Million Tonnes) 137 (89Trains) 33 46 (70Trains) Incremental (Million Tonnes) 81 (57Trains) 16 41 (55Trains)

Eastern Western Container on Western Route (Lakh TEUs)

*Trains indicated each way. **Trains on Western Corridor is inclusive of Bulk and Container

Amritsar

Nagal Dam Chandigarh

Dedicated Freight Corridor Ludhiana-Son Nagar with Extensions to Durgapur/Bokaro/Tatanagar


Legend: Main Route Feeder Route

Ludhiana
Bhatinda

Ambla Saharanpur
Panipat

Meerut Hapur
Harduaganj

Khurja

Tundla Kanpur
Unchahar Paricha Allahabad

Mughal Sarai Son Nagar


Gomoh Asansol

Katni Bondamunda

Durgapur Tata Nagar

P R O P O S E D F R E I G H T C O R R ID O R (W E S T E R N )

L U D H IA N A
L E G E N D :M A IN R O U T E FEE D E R RO U TE

H IS S A R

D ELH I R EW A RI

J A IPU R J O D H PU R LUNI PH U L ERA

T U N D LA AGRA

M A R W A R JN .

G ANDHI DHAM M u n d ra P o rt K A N D LA P o rt R A JK O T H a z ira P IP A V A V

P A L A N PU R M EH SA N A A H M ED A BA D V IR A M -G A M V ADODARA SURAT V A LSA D

OKHA

V A SA I R O A D M UM BAI

D IV A T hal M u m b a i P o rt

APPROXIMATE STATE-WISE LENGTH OF TRACK AND COST OF DEDICATED FREIGHT CORRIDOR ON BOTH WESTERN & EASTERN ROUTES STATE Bihar Uttar Pradesh Haryana Punjab Delhi Maharashtra Gujarat Rajasthan West Bengal Jharkhand 91+139* 1031 213 109 45 192 527 557 229 * 180* Kms. Cost (in Rs. Crores) 782 8159 1473 602 346 1465 4025 4289 Kolkata. No cost

* Kilometerage in States on account of extension of Eastern Corridor to estimate has been made for the extension between Sonnagar-Kolkata.

Challenges Ahead
Massive Capacity Augmentation ahead of Demand Resource Mobilisation Induction of appropriate technologies in Rolling Stock Reducing Unit Cost of Operation

Opportunities under PPP for State Governments


Rail Connectivity to SEZ Logistics Hubs Financing of remote area projects Warehousing/ICDs ROB/RUBs Rail Connectivity to Minor Ports

Thank You

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