Introduction
First of all ,We will be understanding about freight corridor exactly is as it is rail route developed for freight includes goods and commodity transportation which is built with high class technology. It plays a very important role in the Indian economy.
Around 67 % of total contribution in railway revenue. So the government is also emphasising to up scale in railway infrastructure in terms of dedicated freight corridors (DFC). (bhadoria, 2018)
Basically, Dedicated Freight Corridor is high speed and high capacity railway corridor useful for freight movement. Besides a high class infrastructure, it also ensures that
- High Energy Efficiency
- Reduced unit logistic cost
- Faster transit
- Employment generation
- Environment-friendly operations (Bhadoria, 2018)
Now as per high utility there is the need for DFC in India which we can really see from graphical data : (Bhadoria, 2018)
Source: DFCCI
Since we can see that from earlier data that freight market share has dipped to less than 40 percent in 1950. Therefore we can say that is a high need for these corridors in Indian Railways.
If we see from a historical view, in the year 2005 India and Japan had collaborated for feasibility and allocating funds for dedicated rail freight corridors with RITES. And Rites approved and submitted the report to the cabinet committee on economic affairs (CCEA) for Eastern (Delhi – Howrah) and Western (Delhi-Mumbai) Corridors. (en.wikipedia.org, 2019).
Now We will be discussing Eastern DFC and Western DFC announced by Government.
Eastern Dedicated Freight Corridor
These Freight Corridor starts from Dankuni in West Bengal and passes through the states of Bihar, Jharkhand, Uttar Pradesh, Haryana and finally in Ludhiana, Punjab. It will be a total distance of 1839km and track between Ludhiana and Khurja covering a distance of 400 km having electrified lines. (en.wikipedia.org, 2019)
Western Dedicated Freight Corridor
“These Freight Corridor starts from Dadri in National Capital Region NCR to Jawaharlal Nehru Port in Mumbai”. It will run across in six states -UP, Delhi NCR, Haryana, Maharastra, Rajasthan, Gujarat. It will be of a total distance of 1500 km . (en.wikipedia.org, 2019)
Who is Constructing these Freight Corridors?
To Construct these Freight Corridors, DFCC was set up under Indian Railways the special freight corridors, Dedicated Freight Corridor Corporation of India Limited was set up under Indian Railways since 2006. (ray, 2018)
What is the cost involved?
“The cost for these Dedicated Freight Corridors along the Eastern and Western routes” crossing 3360 km route has estimated at 12$ billion. (ray, 2018)
The necessity of Freight Corridors
“Economics liberalization since 1991 had taken India to new growth prospects and led to grow at average of 8 to 10 % in next 3 years in transport requirement in India and project to cross 1100 million tonnes by the end of 11th Five-year plan”. With these” Railways has witnessed a dramatic turnaround in last 2.5 years and made possible for higher freight volume increased axle road, reduced unit cost of transportation and operation margins”. (ray, 2018)
Conclusion
Now I want to conclude with stating the above-mentioned route which discussed are highly saturated as line capacity utilization is getting higher as 150 percent and increased in transport demands and greenhouse gas emissions with road transport, Now the government has proposed this initiative. It will allow faster transportation and reduce costs also it will open new doors for investment.
Reference
If we see from a historical view, in the year 2005 India and Japan had collaborated for feasibility and allocating funds for dedicated rail freight corridors with RITES. And Rites approved and submitted the report to the cabinet committee on economic affairs (CCEA) for Eastern (Delhi – Howrah) and Western (Delhi-Mumbai) Corridors. (en.wikipedia.org, 2019).
Now We will be discussing Eastern DFC and Western DFC announced by Government.
Eastern Dedicated Freight Corridor
These Freight Corridor starts from Dankuni in West Bengal and passes through the states of Bihar, Jharkhand, Uttar Pradesh, Haryana and finally in Ludhiana, Punjab. It will be a total distance of 1839km and track between Ludhiana and Khurja covering a distance of 400 km having electrified lines. (en.wikipedia.org, 2019)
Western Dedicated Freight Corridor
“These Freight Corridor starts from Dadri in National Capital Region NCR to Jawaharlal Nehru Port in Mumbai”. It will run across in six states -UP, Delhi NCR, Haryana, Maharastra, Rajasthan, Gujarat. It will be of a total distance of 1500 km . (en.wikipedia.org, 2019)
Who is Constructing these Freight Corridors?
To Construct these Freight Corridors, DFCC was set up under Indian Railways the special freight corridors, Dedicated Freight Corridor Corporation of India Limited was set up under Indian Railways since 2006. (ray, 2018)
What is the cost involved?
“The cost for these Dedicated Freight Corridors along the Eastern and Western routes” crossing 3360 km route has estimated at 12$ billion. (ray, 2018)
The necessity of Freight Corridors
“Economics liberalization since 1991 had taken India to new growth prospects and led to grow at average of 8 to 10 % in next 3 years in transport requirement in India and project to cross 1100 million tonnes by the end of 11th Five-year plan”. With these” Railways has witnessed a dramatic turnaround in last 2.5 years and made possible for higher freight volume increased axle road, reduced unit cost of transportation and operation margins”. (ray, 2018)
Conclusion
Now I want to conclude with stating the above-mentioned route which discussed are highly saturated as line capacity utilization is getting higher as 150 percent and increased in transport demands and greenhouse gas emissions with road transport, Now the government has proposed this initiative. It will allow faster transportation and reduce costs also it will open new doors for investment.
Reference
- Bhadoria, s. (2018, Aug 17). 99 ACRES. Retrieved from www.99acres.com: https://www.99acres.com/articles/what-is-a-dedicated-freight-corridor.html
- En.wikipedia.org. (2019, October 12). Retrieved from https://en.wikipedia.org/wiki:https://en.wikipedia.org/wiki/Dedicated_Freight_Corridor_Corporation_of_India
- Ray, a. (2018, July 19). https://www.business-standard.com/article/economy-policy. Retrieved from www.business-standard.com: https://www.business-standard.com/article/economy-policy/these-two-freight-corridors-will-change-the-way-india-transports-goods-118071900242_1.html
Author Details
Ashish Gupta | PGDM (LM) | 2019-21
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Ashish has completed B.E. (Civil). He is currently pursuing PGDM in Law Management (2019-21) at AIIM. He has 3.5 years work experience in Non-Banking Financial Companies. He is interested in reading books related to infrastructure sectors.
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