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A recent study by Australia’s University of New South Wales highlighted that Dedicated Freight Corridors are improving India’s GDP and adding to the Indian Railways’ revenue.

What are Dedicated Freight Corridors (DFCs)?

They are specific railway routes designed for freight transportation. These corridors aim to improve the transport capacity by promoting faster transit of freight trains.

The creation of DFCs was announced during the Railway Budget for FY 2005-06. In 2006, the Prime Minister laid the foundation stone of Eastern Dedicated Freight Corridor (EDFC) at Ludhiana, and Western Dedicated Freight Corridor (WDFC) at Mumbai.

The Ministry of Railways started the construction of two DFCs in 2006

• 1,337-km Eastern Dedicated Freight Corridor (EDFC) from Sonnagar in Bihar to Sahnewal in Punjab.
• T1,506-km Western Dedicated Freight Corridor (WDFC) from Jawaharlal Nehru Port Terminal in Mumbai to Dadri in Uttar Pradesh.

In 2006, Dedicated Freight Corridor Corporation of India Limited (DFCCIL) was established as a Special Purpose Vehicle (SPV) for the construction, operation, and maintenance of the corridors.

There are plans for four additional dedicated freight corridors

1. East Coast Corridor from  Kharagpur to Vijayawada (1115 km).
2. East-West Sub-Corridor-I from Palghar to Dankuni (2073 km).
3. East-West Sub-Corridor-II from Rajkharsawan to Andal (195 km).
4. North-South Sub-Corridor from Vijayawada to Itarsi (975 km).

Why were DFCs planned in India?

The Golden quadrilateral of Indian Railway connecting the major metropolitan areas of Delhi, Mumbai, Chennai and Hawrah was overburdened; handling more than 52% of passenger traffic and 58% of revenue-earning freight traffic, with only 16% of the railway network.

The Indian Railways aimed to increase its share of total freight traffic to 45% by 20-30. The creation of Dedicated Freight Corridors (DFCs) was important to achieve this target. 

What is the current status of the DFC project?

The Eastern Dedicated Freight Corridor (EDFC) is completed and operational, supporting feeder routes to coal mines and thermal power plants.

The Western Dedicated Freight Corridor (WDFC) is expected to be fully operational by December 2025. 

As of 31st March 2024, Rs 94,091 crore has been spent on the DFC project, excluding land acquisition costs.

On average, 325 freight trains operate daily on DFCs, which represents a 60% increase from the previous year.

According to the Dedicated Freight Corridor Corporation of India Limited (DFCCIL), currently more than 10% of freight running of Indian Railways is handled by DFC.

What are the key findings of the Australian University study on DFCs?

The research is based on data including freight costs, industry inputs, and population data, as well as data from the Ministry of Road Transport and Highways and the Railways.

DFCS have contributed to about 2.94% revenue growth for Indian Railways between FY 2018–19 to FY 2022–23.

Freight costs and travel times have decreased, which resulted in the reduction of up to 0.5% in commodity prices.

The western region of India has seen a significant reduction in freight cost, and states with lower per capita GDP have experienced significant benefits, this reflects a social-equalizing effect. 

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MODERNISATION OF INDIAN RAILWAYS

Source: 

Indian Express

Wikipedia