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Indian Railways Plans for DFC,
Multomodal & International Rail
Cargo Transportation
Sanjiv Garg
Additional Member
Railway Board, India
September 28, 2018
DEDICATED
FREIGHT
CORRIDORS
Golden Quadrilateral & Its Diagonals
High Density
Corridor
(Golden
Quadrilateral
+ Diagonals)
16% of route
Km carries
more than
52% of
passenger &
58 % of
freight
DELHI
MUMBAI
KOLKATTA
CHENNAI
www.dfccil.gov.in
MUMBAI
DELHI
CHENNAI
KOLKATA
LUDHIANA
VIJAYAWADASanctioned projects
Unsanctioned projectsVASCO
DELHI
LUDHIANA
MUMBAI
DELHI
CONCEPT PLAN OF DEDICATED FREIGHT CORRIDOR NETWORK
www.dfccil.gov.in
Western Corridor (1504 km)
Rewari-Vadodara (947 km)
Vadodara-JNPT ( 430 km)
Rewari-Dadri (127 km)
Eastern Corridor (1856
km)
Khurja -Bhaupur (343 km)
Bhaupur-Mughalsarai (402 km)
Khurja-Ludhiana (400 km)
Khurja-Dadri (47 km)
Mughalsarai-Sonnagar (126 km)
Sonnagar-Dankuni (538 km)
5
Feb 2006 CCEA approved feasibility reports of DFC.
Nov 2007 CCEA gave ‘in principle’ approval with authorization to incur expenditure on preliminary
and preparatory works.
Feb 2008CCEA approved undertaking work & extension of EDFC from Sonnagar to Dankuni.
Directed MoR to finalise financing and implementation mechanisms
Sept 2009Cabinet approved JICA loan for WDFC along with STEP loan conditionalities
Mar 2010JICA Loan Agreement for JPY 90 billion (Rs. 5100 crores) signed for WDFC-I.
Oct 2011 Loan Agreement with World Bank for USD 975 Million (Rs. 5850 crores) signed for EDFC
-1 (Khurja-Bhaupur).
Mar 2013 JICA Loan Agreement for WDFC Phase-II: 1st Tranche amounting JPY 136 billion (Rs.
7750 crores) signed.
Dec 2014Loan Agreement with World Bank loan of USD 1100 million signed (EDFC-2).
June 2015 Cost estimate of Rs. 81,459 Crores approved by CCEA.
March 2016 First Goods train run between Sasaram-Durgawati.
Oct 2016Loan Agreement with World Bank loan of USD 650 million signed (EDFC-3).
Jan 2017 All Civil, Electrical and S&T contracts of WDFC finalized.
Feb 2018 All Civil contracts of Eastern Corridor finalized. 6
Introduction
Basic features of the project
Name of State Length in
EDFC
(in KM)
Length in
WDFC (in
KM)
Total
length (in
KM)
% of total
length
Uttar Pradesh 1058 19 1077 38%
Bihar 100 - 100 3.5%
Punjab 88 - 88 3.1%
Haryana 72 176 248 8.8%
Rajasthan - 567 567 20.1%
Gujarat - 565 565 20%
Maharashtra - 177 177 6.3%
Total 1318 1504 2822* 100%
7
* This excludes 538 km of Sonnagar-Dankuni section.
Particulars Eastern
Corridor
Wester
n
Corrid
or
Total
Equity from MoR 11,334 7,996 19,330
Loan from JICA - 38,722 38,722
Loan from World Bank 15,340 - 15,340
Total Funding
(without Land)
26,674 46,718 73,392
MoR (Land) 3,684 4,383 8,067
Total Funding with
Land
30,358 51,101 81,459
Funding Plan
(All figs. in INR Crores)
Section KM Loan Amount
(in Million US$)
Loan Agreement
Date
EDFC-1Khurja-BhaupurKhurja-Dadri
34346
800 27-Oct-11
EDFC-2 Bhaupur-MGS 402 910 11-Dec-14
EDFC-3 Ludhiana-Khurja 401 650 21-Oct-16
Total 1192 2,360
Multi-lateral (JICA/World Bank) Funding details
Phase Section KM Loan amount
(Billion Yen)
LOAN
tranche
Tranche Loan
(Billion Yen)
Date of
Agreement
I Rewari-Vadodara 947 2731 90.2 31-Mar-10
2 103.6 31-Mar-16
IIVadodara-JNPT
Rewari-Dadri
430
127296 1 136.1 28-Mar-13
TOTA
L1504 569 329.9
World Bank loan for
EDFC
JICA loan for WDFC
Though the project was approved in 2008, real project implementation
started with the approval of first loan for construction works in WDFC &
EDFC in March, 2010 & October, 2011 respectively. 9
Basic Design Features
Height
Width
4.265 m 7.1 m
3200 mm 3660 mm
700 m 700/ 1500 m
5.1m
Western Corridor Eastern Corridor
Moving Dimensions
Container Stack
Train Length
Axle Load
Indian Railway DFC Routes
Western Corridor Eastern Corridor
32.5t/25 t22.9 t / 25 t
75 Kmph 100 Kmph
Maximum Speed
www.dfccil.gov.in
11
Heavier Axle Loads
Axle Load (+30%)
22.9 t / 25 t
25 t
Predominantly 75 Kmph 100 Kmph
Indian Railway DFC Routes
Maximum Speed(+33%)
Gradient (easier)
Upto 1 in 100 1 in 200
Basic Design Features (Contd.)
Bridges & formation designed for 32.5 t
Average speed (+145%)
26.5 kmph 65 kmph
(Track Structure)
Traction Electrical (25 kV) Electrical (2 x 25 KV System)
Signalling Absolute /Automatic
with 1 Km spacing
Automatic with 2 Km spacing in
Automatic territory
Heavier, longer & faster freight trains will enhance freight
throughput – additional 120 train paths each way.
BROAD FEATURES OF CONCESSION AGREEMENT
• THE RELATIONSHIP BETWEEN INDIAN RAILWAYS AND DFCCIL GOVERNED BY
A CONCESSION AGREEMENT
• CONCESSION IS FOR A PERIOD OF THIRTY YEARS FROM THE DATE OF
START OF OPERATION.
• INDIAN RAILWAYS IS THE SOLE OWNER AND FOR THE PRESENT ONLY
CUSTOMER OF DFCCIL.
• DFCCIL’S - INFRASTRUCTURE PROVIDER WITH RESPONSIBILITY OF
CONSTRUCTION, OPERATION AND MAINTENANCE.
• IN FIRST PHASE, TWO CORRIDORS ARE BEING CONSTRUCTED–
• EASTERN CORRIDOR FROM LUDHIANA TO DANKUNI AND
• WESTERN CORRIDOR FROM DADRI TO JAWAHARLAL NEHRU PORT .
• PROVISION FOR NON-DISCRIMINATORY ACCESS TO INDIAN RAILWAYS AND
OTHER QUALIFIED OPERATORS.
12
DFCCIL TO MANAGE TRAIN OPERATION AND INFRASTRUCTURE MAINTENANCE ON DFC.
DFCCIL TO HAVE OWN STATIONS AND CONTROL CENTERS.
ROLLING STOCK OWNERSHIP & ITS MAINTENANCE BY IR.
FEEDER ROUTES /SIDINGS TO BE UPGRADED BY IR .
COMPLETE GRADE SEPERATION - ALL LCS TO BE REPLACED BY ROBS / RUBS.
MARKETING AND DEVELOPMENT OF TERMINALS BY IR AND DFCCIL
www.dfccil.gov.in
OPERATING ASPECTS OF DFCC
Projected Traffic on DFC Corridors
Freight Traffic (MTPA)C+2
YearsC+5 Years C+10 Years
C+30
Years
-Traffic due to IR 235 264 300 523
-Additional Traffic (Non-
IR)150 280 489 1242
Total Traffic 385 544 789 1765
- Eastern DFC 163 277 427 956
- Western DFC 222 267 362 809This will help increase rail share gradually from 30%-35% to more than 50%.
Source: Study by
PWC.
Summary of Achievements as on 30.07.2018
15
Award of contracts (on design build lump sum basis)
• Overall 97.2% Tenders awarded (worth ₹ 51,906 crs)• WDFC - All Civil, Electrical and S&T contracts finalised.• EDFC – All Civil contracts finalized. Contracts worth ₹ 1524 crores under
finalization.
Overall progress
• Overall Financial progress (including land) – 48.1%
• Overall Physical progress - 50.7%
Land acquisition – 98.3% (overall under section 20F)• WDFC – 99.1%• EDFC - 97.3%
• Use of Advance Technology in construction & maintenance• Track laying of 1445 km completed by Mechanised track Construction (NTC
Machine)• OHE mast foundation using mechanized auguring mechanism & wiring using
mechanized wiring train being done for the first time in India.
Achievements
16
• First Double Stack Container Goods Train was run on Ateli
Phulera section (190 km) on 15.08.2018.
Trends/Projections for Capital expenditure
Cumulative CAPEX upto 30.06.2018 - ₹ 39,139 crores.
17
1237.6 925
4345 4427
5000 0 0 0
521.1
1961
41635488
6579
15000
21803
15711
13037
Avg upto
2013-14
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
0
5000
10000
15000
20000
25000
CA
PEX
Capex on Land CAPEX on Contract Projections
2150 crs
(upto
June’18)
Section/ Packages
(with Kms)
Civil/
Elec./
S&T
Cost (Rs
Crores)
Land
available /
affected
Patch
Physical Progress
(%)
Financial
Progress (%)
1. Rewari-Iqbalgarh
CTP -1& 2 (639 Km)Civil
CTP1- 2801
CTP2- 3898 99.70%
1/0.8 km
80.7% 72.3%
Syste
m
EMP-4- 3097
STP-5- 178035.4% 28.9%
2. Iqbalgarh-
Vadodara CTP-3(R)-
(308 Km)
Civil 4744.0099%
2/2.0 km23.7% 19%
3. Vadodara-Sachin
CTP-13 (133 Km)Civil 2157.60
99.7%
2/0.86 Km16.8% 15.6%
4. CTP-12 Sachin-
Vaitarna (186 Km) Civil 2170.65
94.8%
14/13.875
Km
15.2% 10%
5. Vaitarana-JNPT
CTP-11 (102 Km)Civil 2949
88.5%
9/12.5 Km9% 5.1%
6. Dadri-Rewari
CTP-14 (127 Km)
Civil,
Elect
S&T3799
98.80%
4/3.347 Km14.9% 13.1%
Section-wise progress - WDFC
18
Section (with
Kms)
Civil/
Elect/
S&T
Cost
(Rs
Crores)
Land
availability/
affected
Patches
Physical
Progress
(%)
Financial
Progress
(%)
1. Bhaupur-Khurja
EDFC-1 (343 km) Civil 3267 99.30%
0/0 km
87.6% 79.2%
Elect & S&T 1497 46.4% 41.9%
2. Bhaupur-
Mughalsarai
EDFC-2 (402 km)
Civil 508799.40%
2/2.95 km
42.7% 39.6%
Elect &
S&T1600 20.4% 13.6%
3. Durgawati-
Sasaram (56 km)Civil, Elect
and S&T750 100% Ready for commissioning.
4. Balance portion
of Mughalsarai-
Sonnagar (70 km)
Civil 145095.5%
22/14.75 km
49% 43.1%
System work will be awarded
by August, 2018.Civil, Track
& System355
19
Section-wise progress - EDFC
Section (with
Kms)
Civil/
Elect/
S&T
Cost
(Rs
Crores)
Land
availability/
affected
Patches
Physical
Progress
(%)
Financial
Progress
(%)
5. Khurja-Dadri
EDFC-1 (46 km) Civil 511
87.20%
9/10.26 km24.2% 20.9%
Contract will be awarded by
October, 2018.Elect & S&T 188
6. Pilkhani –
Ludhiana (179 km)
Civil 1769 100%
1/0.3 km
25.2% 21.7%
Elect & S&T 462Contract will be awarded by
November, 2018.
7. Khurja-Pilkhani
(222 km) Civil 1873
90.7%
2/5.5 km
8.6% 5%
Elect & S&T 524
Contract will be awarded by
December, 2018.
20
Section-wise progress - EDFC
SN Sections Targets
1. Rewari-Marwar (432 Km) December 18
2. Marwar-Palanpur (207 Km) September- 19
3. Palanpur-Makarpura (308 Km) March -20
4. Makarpura-Vaitarna (313 Km) March - 20
5 Vaitarna – JNPT (117 Km) March -20
6. Rewari – Dadri (127 Km) March -20
21
Commissioning Targets-WDFC
Commissioning Targets-EDFC
SN Section Target
1. Khurja-Bhaupur (343 km) November- 2018
2. Bhaupur-Mughalsarai (402 km) August-2019
3. Sonnagar – Mughalsarai (126 km) October- 2019
4. Khurja-Dadri (46 km) December-2019
5 Pilkhani – Sahnewal (179 km) March -20
6. Khurja – Pilkhani (222 km) March -20
State-wise affected Land Patches
Name of
State
Length
of DFC
(in KM)
Total
Area
(in Ha)
Affected No of
Patcheslength
(in KM)
Area
(in Ha)
Uttar
Pradesh1077 4200 41.51 125 56
Maharashtra 177 444 30 50 22
Bihar 100 571 2 4 3
Rajasthan 567 1956 2.58 5 3
Gujarat 565 2453 0.58 7.8 2
Punjab 88 260 0 0 0
Haryana 248 1044 0 0 0
Total 2822 10928 76.67 191.8 86
22
Affected patches include land legally acquired but possession not taken.
23
Faster, higher and longer due to higher speed, train load &throughput. Quantum jump in transportation capacity: both corridors capable of
running 120 trains each way.
Providing connectivity to major ports of Gujarat & JNPT in
Maharashtra
Scheduled time tabled trains- supply chain management
Induction of modern technology in construction, maintenance &
train operation.
Improved Safety features by providing TPWS
DFC to save 457 Million Tonne of CO2 emission over 30
years period (as per study conducted by Ernst & Young
through World Bank).
◦ Part of India’s commitment in COP 21 to reduce emission
intensity by 32.6% in 2030
BENEFITS OF IMPROVED DESIGN INTRANSPORT LOGISTICS
Decongestion of major highways One freight train of DFC will accommodate 1300 standard Truck load of
freight
Released capacity on IR available for Augmentation and speeding up passenger services
Strengthening “Make in India” Initiatives By improving logistics.
By creating an ancillary Rail equipment industry for DFC/Railway
Development of industrial hubs DMICDC on Western Corridor
Plan for development of Industrial Corridor from Amritsar-Dankuni along
the Eastern Corridor
Employment generation Direct/Indirect – 42,000 jobs being generated during construction.
Skill Up-gradation - Training for Enhancing employability of PAPs under
CSR initiatives.
BENEFITS OF IMPROVED DESIGN IN TRANSPORT LOGISTICS
FASTER, HIGHER AND LONGER-SIGNIFICANT INCREASE IN
◦ AVERAGE SPEEDS OF FREIGHT TRAINS (FROM 26 KMPH ON IRTO 70 KMPH)
◦ VOLUMETRIC CAPACITY PER WAGON (WAGONS WITH HIGHPAY LOAD/TARE WEIGHT RATIO.
◦ THROUGH PUT PER TRAIN (INCREASE LENGTH OF TRAINFROM 750 M TO 1500 M).
◦ DOUBLE STACK CONTAINER ON WESTERN CORRIDOR.
QUANTUM JUMP IN TRANSPORTATION CAPACITY
CONNECTIVITY TO MAJOR PORTS OF GUJARAT &
MAHARASHTRA
SCHEDULE TIME TABLED TRAINS- SUPPLY CHAIN MANAGEMENT
INDUCTION OF MODERN TECHNOLOGY IN MAINTENANCE ,
TRAIN OPERATION.
LOW OPERATING COST
25
DFC – A GAME CHANGER IN TRANSPORT LOGISTICS
DFC – A GAME CHANGER IN TRANSPORT LOGISTICS
RAILWAY SYSTEM:-
INCREASE IN RAILWAY SHARE IN TRANSPORT SECTOR (30% TO
45%)
INCREASED EARNINGS FOR RAILWAYS
IMPROVED ASSETS PRODUCTIVITY
RELEASED CAPACITY ON IR FOR AUGMENTATION
AND SPEEDING UP PASSENGER SERVICESINDUSTRY/SHIPPERS:-
FASTER MOVEMENT OF GOODS
GUARANTEED TRANSIT TIME ENABLING RUNNING OF
FREIGHT TRAINS TO TIME TABLE
VALUE ADDED SERVICES- SUPPLY CHAIN MANAGEMENT
REDUCED UNIT COST OF TRANSPORT LOGISTICS
Economic Growth – Not only Regional but National
• ECO FRIENDLY ENERGY EFFICIENT TRANSPORT SYSTEMGREEN DFC - TO SAVE 457 MILLION-TONNE CO2 OVER 30YEARS PERIOD.
• CATALYST FOR GROWTH IN INDUSTRY AND ECONOMY BACKBONE OF DFC USED FOR DEVELOPMENT OF
DELHI MUMBAI INDUSTRIAL CORRIDOR
AMRITSAR-KOLKATA INDUTRIAL CORRIDOR
DEVELOPMENT OF LOGISTICS PARKS-3PL SERVICES
Employment generation
• DIVERSION OF ROAD TRAFFIC TO RAIL HELP IN REDUCING CONGESTION ON ROAD
REDUCTION IN ACCIDENT & FATALITY
SAVING IN PRECISOUS IMPORTED FOSSIL FUEL
DFC – A GAME CHANGER IN TRANSPORT LOGISTICS(Contd)
Impact of DFC on Rail freight transport
1 container train= 280 trucks
1 bulk cargo train= 500 trucks
Total 6 DFCs have been planned. 2 DFCs being constructed at a totalinvestment of around USD 16 Billion
Likely completion of 2 DFCs: December 2018.
Eastern DFC (Ludhiana-Dankuni, 1839 kms): mainly for bulk traffic, passingthru Haryana, UP, Bihar & W.B.
Western DFC (Dadri-JNPT, 1483 kms): for container traffic, passing thruDelhi, Haryana, Rajasthan, Gujarat, Maharashtra
Western DFC: 130 trains per day per direction which translates toevacuation of 65 millionTEUs per annum
Axle load on IR: 20.3 tons
Axle load on DFC: 25 tons (32 tons eventually)
Container trains on IR: 90 TEUs
Container trains on DFC: 400 TEUs
• EASTERN DFC- FROM LUDHIANA TO DANKUNI VIA KHURJA, KANPUR,
ALLAHABAD, MUGHALSARAI
• WESTERN DFC-FROM DADRI TO JNPT VIA REWARI, AJMER, VADODARA
• COMPRISE 22% OF TOTAL IR TRAFFIC & 38% OF TRAFFIC ON GOLDEN
QUADRILATERAL.
• PROJECTED TRAFFIC IN 2036-2037
Projected Traffic
CORRIDOR In Million Tonnes In Billion NTKM
EDFC 251.0 290
WDFC 284.3 303
CommodityWDFC Originating
Traffic (MTPA)
EDFC Originating
Traffic (MTPA)
Total Traffic
(MTPA)
Cement 12 16 28
Cement Grade
Limestone5 2 7
Chemicals 0.65 0.03 0.68
Clinker 7 8 15
Coal 0 0.4 0.4
Domestic Containers 7 8 15
Edible Oil 0.8 0.4 1.2
Exim Containers 28 1 29
F&V 1.1 0.4 1.5
Fertiliser 0 - 0
Finished Steel 2 5 7
Iron & Steel Grade
Limestone0 1 1
Pig and sponge Iron 4 4
POL 6 3 9
Rice 4 7 11
Salt 2 - 2
Wheat 1 3 4
Non conventional cargo 5 1 6
Other Commodities 5 4 9
Total Traffic 86 64 150
Commodity wise Non-IR traffic in FY 20
Non-conventional cargo Expected Volumes (FY20)
Marble 3.2 MTPA
Ceramics 1.9 MTPA
Retail 1.4 MTPA
Two wheelers 1.4 Mn Units
Three wheelers 0.022 Mn Units
Passenger cars 0.157 Mn Units
Tractors 0.043 Mn Units
Household Appliances 0.4 Mn CBM
Hi-Tech Commodities 1.1 Mn Units
Construction Equipment 0.347 Mn Units
Non-conventional cargo estimated on rail
DFC in Railway Budget 2016-2017
Corridor Kms Projected
Traffic in
2041-42 (MT)
Completion
Cost
(Billion USD)
East – West Corridor
(Kolkata–Mumbai)
2328 Kms 1410 22.1
North-South Corridor
(Delhi-Chennai)
2327 Kms 962 22.9
East Coast Corridor
(Kharagpur-Vijayawada)
1114 Kms 1192 10.25
Total 5769 3564 55.25
REMOVAL OF LC GATES
TIMELY COMPLETION OF WORK BY THE CONTRACTORS
UPGRADATION OF FEEDER ROUTES
TIME TABLING OF TRAIN ON IR NETWORK AND SEAMLESS TRANSFER OF TRAFFIC
SAFETY OF TRAINS OF PARALLEL SYSTEM
REVIEW AND REWORKING OF PRICING STRETEGIES
DEVELOPMENT OF FREIGHT TERMINALS
www.dfccil.gov.in
MAJOR CHALLENGES
Container Logistics &
Planning for Container Traffic & Facilitating e-
Commerce
34
Global Logistics Market Globally approx. 75% of break bulk cargo being shipped
is containerized, whereas in India it is around 50%.
Global ranking of the world bank’s 2016 logistics performanceindex shows that India jumped to 35th rank in 2016 from 54th
rank in 2014.
Indian logistics industry is valued at USD 160 billion and islikely to touch USD 215 billion by 2020.
Global logistics industry employs 40 million professionals andIndian logistics industry employs about 22 million.
It has grown at CAGR of 7.8% during the last 5 years and isexpected to grow at a CAGR rate of 10.5 %.
35
Global Logistics Market (contd.)
India is one of the fastest growing economies in the world.And, to support the pace of the economy, the growth ofthe logistics and SCM industry is very crucial as itcontributes to 13% of the country’s GDP.
For harmonisation of warehousing which plays a major rolein the growth of the logistics industry, Government of Indiahas brought GST into picture for an optimal and efficientsupply chain planning.
Overall Port Container Throughput of 13.7 million TEUs in2016-17 but just about 2% of global volumes.
As per Industry estimates, by 2021-22 India would handlearound 379 Mn Tn of containerized cargo (approx 20million TEUs) per annum.
36
Container handling capacity at Ports is planned to be
increased to 47 million TEUs by 2020 (present 10.35). India
handled around 14.68 million TEUs in 2017-18 at Major
Ports.
CONCOR, a major player in providing multimodal logistics
solutions, handled around 3.53 million TEUs in 2017-18
through its vast network of 72 owned Terminals and 7
strategic Tie ups spread across the Country.
37
Global Logistics Market (contd.)
Overview
Indian logistics industry is valued at USD 160 billion and islikely to touch USD 215 billion by 2020.
Global ranking of the world bank’s 2016 logistics performanceindex shows that India jumped to 35th rank in 2016 from 54th
rank in 2014.
Indian logistics industry employs about 22 million people.
It has grown at CAGR of 7.8% during the last 5 years and isexpected to grow at a CAGR rate of 10.5 %.
38
Overview (contd.)
The sector alone provides jobs to more than 40 millionprofessionals across the globe and expected to createmillions more in the coming years.
India is one of the fastest growing economies in the world.And, to support the pace of the economy, the growth ofthe logistics and SCM industry is very crucial as itcontributes to 13% of the country’s GDP.
For harmonisation of warehousing which plays a major rolein the growth of the logistics industry, Government of Indiahas brought GST into picture for an optimal and efficientsupply chain planning.
39
INDIA GDP – Around US$ 2 trillion, set to grow at 7-8%per annum
Overall Port Container Throughput of 10 million plusTEUsBut just 1.6% of global volumes
With increase in merchandise trade, container traffic ispoised to increase with passage of time.
40
Overview (contd.)
Container handling capacity at Ports is planned to be
increased to 47 million TEUs by 2020 (present 10.35).India
handled around 14.68 million TEUs in 2017-18 at Major
Ports.
Globally approx. 75% of break bulk cargo being
shipped is containerized, whereas in India it is around
50%.
CONCOR, a major player in providing multimodal logistics
solutions, handled around 3.53 million TEUs in 2017-18
through its vast network of 72 owned Terminals and 7
strategic Tie ups spread across the Country.
41
Overview (contd.)
Challenges for Logistics
High Logistics cost
Under developed material handlinginfrastructure
Fragmented warehousing
Lack of seamless movement of goodsacross modes
42
Trade
India’s export basket, continues to rely on exports of primarygoods and low-value, low-tech manufacturing goods.
Agricultural products such as cotton, rice, tea, meat and spicescontinue to dominate the exports.
A shift to exports of medium and hightech manufacturingproducts such as engineering goods is visible; however, theirshare in the total export goods lags behind China and otheremerging economies.
43
Trade (contd.)
India’s top 10 exports accounted for 59.4% of the overall value
of its global shipments.
1. Gems, precious metals: US$42.6 billion (14.4% of total exports)
2. Mineral fuels including oil: $35.9 billion (12.1%)
3. Machinery including computers: $16.7 billion (5.6%)
4. Vehicles: $16.2 billion (5.5%)
5. Organic chemicals: $13.6 billion (4.6%)
6. Pharmaceuticals: $12.9 billion (4.4%)
7. Iron, steel: $11.7 billion (4%)
8. Clothing, accessories (not knit or crochet): $9 billion (3%)
9. Electrical machinery, equipment: $8.8 billion (3%)
10. Knit or crochet clothing, accessories: $8.3 billion (2.8%)
44
India’s top 10 imports accounted for almost four-fifths (78.2%)
of the overall value of its product purchases from other
countries.
1. Mineral fuels including oil: US$123 billion (27.7% of total imports)
2. Gems, precious metals: $74.4 billion (16.7%)
3. Electrical machinery, equipment: $46.9 billion (10.6%)
4. Machinery including computers: $36 billion (8.1%)
5. Organic chemicals: $18 billion (4%)
6. Plastics, plastic articles: $13 billion (2.9%)
7. Animal/vegetable fats, oils, waxes: $11.9 billion (2.7%)
8. Iron, steel: $10 billion (2.2%)
9. Optical, technical, medical apparatus: $8.4 billion (1.9%)
10. Ores, slag, ash: $5.9 billion (1.3%)
45
Trade (contd.)
Over three-fifths (61.3%) of Indian exports in 2017 weredelivered to the above 15 trade partners.
1. United States: US$46.1 billion (15.6% of total Indian exports)
2. United Arab Emirates: $30 billion (10.1%)
3. Hong Kong: $15 billion (5.1%)
4. China: $12.5 billion (4.2%)
5. Singapore: $11.6 billion (3.9%)
6. United Kingdom: $9 billion (3%)
7. Germany: $8.2 billion (2.8%)
8. Vietnam: $8.1 billion (2.7%)
9. Bangladesh: $7.2 billion (2.4%)
10. Belgium: $6.2 billion (2.1%)
11. Italy: $5.7 billion (1.9%)
12. Malaysia: $5.5 billion (1.9%)
13. Nepal: $5.5 billion (1.9%)
14. Netherlands: $5.4 billion (1.8%)
15. Saudi Arabia: $5.2 billion (1.8%)
46
Trade (contd.)
Positive demand in Europe, North America, South Americaneconomies, as well as rising imports from China tethered thecontainer traffic growth at Indian ports.
Trade with western countries continues to dominate as India’sexport market with a share of 72% of the country’s totalexports.
Imports from western countries are gradually declining anddecreased from 59% in 2011 to 51% in 2016.
Import from eastern countries reached 49% in 2016 from 41%in 2011.
47
Trade (contd.)
The market share of major ports declined from 92% in 2005to 63% in 2016 while market share of non-major portscollectively surged to a whopping 37% in 2016 from 3% in2005.
On the west coast, JNPT that had a share of 66% traffic backin 2010 slipped to 48% by 2016. On the other hand, Mundraexpanded its share from 18% to 35% during the same period.
On the east coast, Krishnapatnam and Katupalli that startedoperations from 2013, currently hold a market share of 5%and 8% respectively while Chennai’s share plummeted from52% to 41%
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Trade (contd.)
Modal Split & Assessment (contd.)
Rail -The backbone
◦ Containerization had significant impacts on rail transportation and
spurred the development of intermodal rail services that are
specific to rail.
◦ Indian Railways carry 36% of freight traffic in India in train km
terms, as compared to 23% in China, 48% in USA and only 10% in
Europe.
◦ More than 60,000 kms of tracks
◦ Carries more than One Billion MT cargo every year
◦ 60% of rail freight traffic is carried on 16% of rail route kms.
◦ Railways handled more than 1.16 Billion tons of freight in 2017-18
and is poised to grow further.
◦ Delhi-Mumbai route is working on more than 100% line capacity
utilization.
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Road/Truck :-
◦ Trucks are highly flexible vehicles able to carry almost every types
of cargo over short to medium distances.
◦ Package trucks are commonly used in urban freight distribution
since they carry a variety of cargo (in boxes or pallets)
◦ Less than truckload (LTL) carriers usually consolidate and
deconsolidate loads coming from different customers, which is
common in the parcel carrying business.
◦ Truckload (TL) transportation carries large volumes that have been
broken down into the largest possible truck load unit; several
truckloads are required to fulfill an order.
◦ Trucks using chassis are able to carry domestic and ISO containers
(20 and 40 feet).
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Modal Split & Assessment (contd.)
India has second largest road network in the World with 41
lakh kms roads criss-crossing the subcontinent.
Roads carry around 57% of freight traffic.
National Highways: 1.7% of total road network
State Highways: 3.6% of total road network
Major district roads: 6.5% of total road network
Other district & rural roads: 88% of total road network
Majority of freight traffic is carried on 12% of road network.
Share of road in freight traffic has grown from 14% to 57%
from 1951 to 2013.
Modal Split & Assessment (contd.)
Maritime.
◦ Through the application of the principle of economies of scale
maritime shipping has developed specialized ships to carry break
bulk, dry bulk, liquids, vehicles (RoRo) and even liquid natural gas.
◦ Container shipping has also become a dominant maritime modal
option supporting commercial transactions with multiple origins,
destinations and cargo owners.
◦ The standard ISO containers of 20 and 40 feet are the main unit
sizes, which has been adapted to carry refrigerated goods (reefers)
and even liquids (tank containers).
◦ The dry maritime container is the most dominant container cargo
unit.
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Modal Split & Assessment (contd.)
Air ◦ Air packages are generally carried in unit load devices,
on dedicated freight planes (freighters).
◦ Heavy loads, such as vehicles, require specialized cargo
planes and are commonly used by the military and for
emergency deliveries.
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Modal Split & Assessment (contd.)
Inland / Coastal
◦ India has an extensive network of inland waterways in the form of
rivers, canals, backwaters and creeks.
◦ Of the total navigable length of 14,500 km, 5200 km of the river and
4000 km of canals can be used by mechanized crafts.
◦ India has recognized 106 waterways of which 6 are declared as national
waterways.
◦ Economic viability of a waterway to carry traffic as an alternative to rail
and road depends on its length which should be a minimum 500 km and
250 km for both cases respectively.
◦ Domestic waterways are cost effective as well as environmentally
friendly means of transporting freight, For eg:- cost of moving coal via
coastal shipping is one-sixth of the cost of moving it by railways.
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Modal Split & Assessment (contd.)
The External Environment
Movement of bulk commodities is one of the major responsibilities of India's
transportation system.
Thermal coal alone accounts for around 61 percent of the freight volume on the
Indian Railways and 24 percent of the seaport freight mix.
Water currently contributes less than 10 percent to India's modal mix.
China uses its inland waterways to transport raw material and finished goods
between Eastern and Western provinces; water contributes 24 percent to China's
freight modal mix.
Australia carries 17 percent of goods through coastal shipping. In Germany, 11
percent of goods are moved through inland waterways and coastal shipping.
India is one of the fastest growing major economies in the world with an expected
GDP growth rate of 7.5% in 2015-16
India's long coastline of 7,517 km and a navigable inland waterways of 14,426 km
offers immense potential for development
4th most attractive FDI destination in the World as per UNCTAD
Over the last decade, seaborne trade has grown at twice the global
growth rate of 3.3%
Maritime Container trade has grown at 6.5%, which is higher than the
world average of 5.4% over the past 10 years (FY 2005 - 2015)
Cargo traffic at Indian ports has doubled to 1 billion tonnes per annum
over the last decade (FY 2005 - 2015) and is expected to reach 1.7
billion tonnes per annum by 2022
US$ 2.6 Bn INVESTED IN Ports and Shipping sector between 2011 and
2014.
150 + projects identified in Indian maritime sector offering
numerous investment opportunities
The External Environment (contd.)
India with long coastline, spanning 7516.6 kilometers, forming
one of the biggest peninsulas in the world. It is serviced by 13
major ports (12 government and 1 corporate) and 187 notified
minor and intermediate ports.
These ports account for nearly
90% (by volume) of India’s
international trade. Yet, coastal
shipping accounts for only 6-7
per cent of the country’s total
domestic freight (on a tonne-km
basis).
Drivers for container trade growth
The future of container growth in India is bullish in the wakeof various policy initiatives such as Make in India, Goods andServices Tax (GST), Digital India, new Foreign Trade Policy andport linked infrastructure projects.
New Foreign Trade Policy (FTP):- Under the new ForeignTrade Policy (2015 – 2020), India aims to increase its share inthe global trade to 3.5% by 2020.
◦ Incentives to agricultural exports and extension of the same underMerchandise Exports from India Scheme to units in SEZ are part of thenew FTP.
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Infrastructure projects linked to port:- Multiple infrastructureprojects, eyeing to improve India’s logistics efficiency andhinterland connectivity, will boost the containers business inIndia.
◦ Multi-modal terminal under Jal MargVikas project:-
170 crore multi-modal terminal at Varanasi, under the Jal Marg Vikasproject that will open before December 2018 will be a major logisticshub connecting North India to North East India.
The government will also develop 35 multi-modal logistics parks forfreight aggregation and distribution, multi-modal transportation andwarehousing.
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◦ Port based multi-product SEZ at JNPT:- First of its kind, a port-based SEZ at JNPT will be developed with Free
Trade Warehousing Zone, Engineering Goods sector, Electronics &Hardware sector and Pharma sector.
◦ Dedicated Freight Corridor (DFC):- DFC will provide logistics support for the Make in India initiative. Two
of the three DFCs are scheduled to be operational in the next twoyears. DFC will reduce the inland transit time significantly.
◦ Sagarmala programme:- The Indian government is implementing the Sagarmala programme in
phases, spanning over 20 years from 2015-35.
Four hundred and fifteen projects have been identified for portmodernisation, new port development, port connectivityenhancement and port linked industrialisation
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Proposed transhipment hubs in the south:-
◦ The government has approved ₹ 27,000 crore port project at Enayam.
◦ The port is expected to become a gateway port for India by shiftingcontainers that are currently transhipped at Colombo or South EastAsian ports such as Singapore or Port Kelang.
◦ This will act as transhipment hub for cargo from Bangladesh andMyanmar, which are currently being transhipped at Colombo or otherSouth East Asian hubs.
◦ The ₹7,525 Vizhinam port, currently being developed by Adani thatenjoys a natural draft of more than 20 metres is another port that willcompete as a transhipment hub.
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New Initiatives-DPD
The government's new initiative Direct Port Delivery (DPD )to reduce dwell time and transaction cost for the shipperscould make some substantial savings of time and money forimporters.
With DPD, importers can bypass clearances with shippinglines, custom house agents, Customs, consignees and CFSoperators through a streamlined procedure, allowing importcontainers to be delivered to the end user directly at the portwith an average dwell time of only 1.5 days from 9-10 daystaken earlier.
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Container Movement by Rail
TIMETABLED TRAINS
Dadri – Kathuwas & TKD-Kathuwas Daily Timetabled Trains started
from 27.10.2016 to Mundra via Khatuwas called Link Express
Time Tabled Cargo Express in Domestic Circuit started between:-
TKD - TNPM, TKD – WFD, TKD – CMCN
DOUBLE STACK TRAINS
Rationalisation of rail freight with increased Double stack Container
Train running, thus reducing the Logistics cost and passing the benefit
to Customers
As against 332 Double Stack Rakes run in 2015-16, 938 Rakes were
run in 2016-17
More than 150 Double Stack Trains being run per month
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Movement of International
Cargo by Railways on Indian
Frontiers
India – Pakistan Rail Traffic
Regulated by a Bilateral agreement signed
in 1976, extended in 1999, and then
reviewed in 2001. Now being extended
every 3 years.
Agreement on “Rules of Interchange
between India and Pakistan” applicable
primarily to freight traffic.
India-Pak Passenger Traffic
Samjhauta Express running bi-weekly between Attari and Lahore via Wagah since 1976.
IR running a link service between Delhi and Attarias a feeder service.
Thar Express running weekly between Munabao(Rajasthan, India) to Zero Point station near Khokhrapar (Pakistan) every Saturday.
IR running a weekly link service between Jodhpur and Munabao for international travellers.
Rake sharing for six months by each country for both trains (Samjhauta and Thar Express).
Special trains for pilgrims
India-Pak Parcel Traffic
Agreement provides for movement of parcel traffic between Amritsar and Lahore.
10 freight (BCN) wagons loaded with parcel traffic attached to each trip of SamjhautaExpress at Amritsar and taken upto Lahore, and vice versa in reverse direction.
From Pakistan: dry fruits, surgical instruments, finished leather, etc.
From India: machinery parts, tyres, tubes, books, dyes, cardamom, chemicals, fabric, etc.
India-Pak Freight Traffic
Freight trains run between Amritsar and Lahore via Attari.
Loading/unloading of consignments done at Amritsar and Attari.
From Pakistan: Cement, rock salt, chemicals and drugs, tools, cotton, carbon, etc.
From India: De-oiled cake, red chillies, chemicals, seeds, rubber, tamarind, spices, yarn, etc.
India-Bangladesh Rail Traffic Inter-Governmental Railway Meeting (IGRM) held
annually.
Indian Railway Conference Association (IRCA) holds periodic meeting with Bangladesh Railways to settle interchange issues.
India has a Railway Advisor in the High Commission of India in Dhaka to coordinate with Bangladesh Government on a regular basis.
India has committed a soft loan of USD 2 billion for rail sector for Bangladesh (20 year loan period at 1% interest).
India-Bangla Rail Connectivity
Indian Railhead Bangladesh
Railhead
Gauge
Gede Darsana BG
Petrapol Benapol BG
Singhabad Rohanpur BG
Radhikapur Birol BG
Mahisasan Shahbazpur DG-Const
Haldibari Chilahati BG-Const
Agartala Akhaura DG- new
Belonia Feni DG-survey
India-Bangla Passenger Traffic
Maitree Express between Kolkata-Dhaka runs four days per week.
Only air-conditioned coaches provided.
Enters Bangladesh via Gede.
Bandhan Express between Kolkata-Khulna runs weekly, entering Bangladesh via Petrapole-Benapole.
Both services very popular, and largely patronisedby senior citizens and Bangla patients seeking medical treatment in India.
Customs/immigration done end-to-end respectively at Kolkata and Dhaka/Khulna.
India-Bangla Freight Traffic
During 2017-18, an average cargo of 143655 tonnes per month made over to Bangladesh, with a high CAGR.
Average of 92-95 freight rakes used for this export traffic from India.
Export traffic from India: stone/ballast, de-oiled cake, fly ash, foodgrains, etc.
No freight traffic from Bangladesh to India, except occasional consignments for Nepal coming by sea to Bangla ports and onward by rail route to Nepal via India.
India-Bangla Container Traffic
An agreement between CONCOR and Container Company of Bangladesh Ltd. (CCBL) for cooperation signed in April 2017 (in presence of both PMs) and all modalities including fixation of tariff completed (from Darsana to Banga bandhu West and from Darsana to Kamlapur ICP, Dhaka).
Containerisation will boost export traffic from Bangladesh by rail (especially RMG), and from India primarily white goods and CKDs of automobiles.
India-Nepal Rail Connectivity
Existing rail connectivity between Raxaul-
Birganj section after operationalisation of
ICD at Birganj.
Rail operations between Raxaul-Birganj
governed by Rail Services Agreement
signed between India and Nepal.
India-Nepal Rail Connectivity
Projects Jogbani-Biratnagar – Length is 18.6 km, target
date of completion is December 2018, of which Bathnaha-Nepal Customs Yard (6 km) will be operational in October 2018 (for freight services).
Jayanagar-Bijalpura – Length is 68.7 km, target date of completion is December 2019, of which Jayanagar-Kurtha (34 km) will be operational from October 2018 (initially for passenger services).
Both projects have been dependent on timely handing over of land by Government of Nepal, and issues in this regard have been cropping up time to time.
Surveys for New India-Nepal Rail
ProjectsFrom
(India)
To
(Nepal)
Distance
(km)
Nepalganj Road
(Uttar Pradesh)
Nepalganj 12
Nautanwa
(Uttar Pradesh)
Bhairahawa 15
New Jalpaiguri
(West Bengal)
Kakarbhita via
Panittanki
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Kushinagar
(Uttar Pradesh)
Kapilvastu Survey in
progress
