Indian Railways Plans for DFC, Multomodal & International Rail Cargo Transportation

Transcription

1 Indian Railways Plans for DFC, Multomodal & International Rail Cargo Transportation Sanjiv Garg Additional Member Railway Board, India September 28, 2018

2 DEDICATED FREIGHT CORRIDORS

3 Golden Quadrilateral & Its Diagonals High Density Corridor (Golden Quadrilateral + Diagonals) DELHI 16% of route KOLKATTA Km carries more than MUMBAI 52% of passenger & 58 % of freight CHENNAI

4 CONCEPT PLAN OF DEDICATED FREIGHT CORRIDOR NETWORK LUDHIANA DELHI KOLKATA MUMBAI VASCO VIJAYAWADA CHENNAI Sanctioned projects Unsanctioned projects

5 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

6 Introduction Feb 2006 Nov 2007 Feb 2008 Sept 2009 Mar 2010 Oct 2011 Mar 2013 Dec 2014 June 2015 March 2016 Oct 2016 CCEA approved feasibility reports of DFC. CCEA gave in principle approval with authorization to incur expenditure on preliminary and preparatory works. CCEA approved undertaking work & extension of EDFC from Sonnagar to Dankuni. Directed MoR to finalise financing and implementation mechanisms Cabinet approved JICA loan for WDFC along with STEP loan conditionalities JICA Loan Agreement for JPY 90 billion (Rs crores) signed for WDFC-I. Loan Agreement with World Bank for USD 975 Million (Rs crores) signed for EDFC -1 (Khurja-Bhaupur). JICA Loan Agreement for WDFC Phase-II: 1st Tranche amounting JPY 136 billion (Rs crores) signed. Loan Agreement with World Bank loan of USD 1100 million signed (EDFC-2). Cost estimate of Rs. 81,459 Crores approved by CCEA. First Goods train run between Sasaram-Durgawati. Loan 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

7 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 % Bihar % Punjab % Haryana % Rajasthan % Gujarat % Maharashtra % Total * 100% * This excludes 538 km of Sonnagar-Dankuni section. 7

8 Funding Plan 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 (All figs. in INR Crores) 30,358 51,101 81,459

9 Multi-lateral (JICA/World Bank) Funding details World Bank loan for EDFC Section KM Loan Amount (in Million US$) Loan Agreement Date EDFC-1 Khurja-Bhaupur 343 Khurja-Dadri Oct-11 EDFC-2 Bhaupur-MGS Dec-14 EDFC-3 Ludhiana-Khurja Oct-16 Total ,360 JICA loan for WDFC Phase Section KM Loan amount (Billion Yen) I Rewari-Vadodara II Vadodara-JNPT Rewari-Dadri LOAN tranche Tranche Loan (Billion Yen) Date of Agreement Mar Mar Mar-13 TOTA L 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

10 Basic Design Features Indian Railway DFC Routes Moving Dimensions Height m 7.1 m 5.1m Western Corridor Eastern Corridor Width 3200 mm 3660 mm Container Stack Western Corridor Eastern Corridor Train Length 700 m 700/ 1500 m Axle Load 22.9 t / 25 t 32.5t/25 t Maximum Speed 75 Kmph Kmph

11 Basic Design Features (Contd.) Heavier Axle Loads Axle Load (+30%) 22.9 t / 25 t Indian Railway DFC Routes 25 t (Track Structure) Bridges & formation designed for 32.5 t Maximum Speed (+33%) Average speed (+145%) Gradient (easier) Predominantly 75 Kmph 100 Kmph 26.5 kmph 65 kmph Upto 1 in in 200 Traction Electrical (25 kv) Electrical (2 x 25 KV System) Signalling Absolute /Automatic with 1 Km spacing Heavier, longer & faster freight trains will enhance freight throughput additional 120 train paths each way. Automatic with 2 Km spacing in Automatic territory 11

12 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

13 OPERATING ASPECTS OF DFCC 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

14 Source: Study by PWC. Projected Traffic on DFC Corridors Freight Traffic (MTPA) C+2 Years C+5 Years C+10 Years C+30 Years -Traffic due to IR Additional Traffic (Non- IR) Total Traffic Eastern DFC Western DFC This will help increase rail share gradually from 30%-35% to more than 50%.

15 Summary of Achievements as on 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 % Land acquisition 98.3% (overall under section 20F) WDFC 99.1% EDFC % 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. 15

16 Achievements First Double Stack Container Goods Train was run on Ateli Phulera section (190 km) on

17 CAPEX Trends/Projections for Capital expenditure Cumulative CAPEX upto ,139 crores Avg upto crs (upto June 18) Capex on Land CAPEX on Contract Projections

18 Section-wise progress - WDFC Section/ Packages (with Kms) 1. Rewari-Iqbalgarh CTP -1& 2 (639 Km) 2. Iqbalgarh- Vadodara CTP-3(R)- (308 Km) 3. Vadodara-Sachin CTP-13 (133 Km) Civil/ Elec./ S&T Civil Syste m Cost (Rs Crores) Land available / affected Patch CTP CTP % EMP STP Civil Civil CTP-12 Sachin- Vaitarna (186 Km) Civil Vaitarana-JNPT CTP-11 (102 Km) 6. Dadri-Rewari CTP-14 (127 Km) Civil 2949 Civil, Elect S&T /0.8 km 99% 2/2.0 km 99.7% 2/0.86 Km 94.8% 14/ Km 88.5% 9/12.5 Km 98.80% 4/3.347 Km Physical Progress (%) Financial Progress (%) 80.7% 72.3% 35.4% 28.9% 23.7% 19% 16.8% 15.6% 15.2% 10% 9% 5.1% 14.9% 13.1% 18

19 Section-wise progress - EDFC Section (with Kms) 1. Bhaupur-Khurja EDFC-1 (343 km) 2. Bhaupur- Mughalsarai EDFC-2 (402 km) 3. Durgawati- Sasaram (56 km) Civil/ Elect/ S&T Cost (Rs Crores) Land availability/ affected Patches Physical Progress (%) Financial Progress (%) Civil % 87.6% 79.2% Elect & S&T /0 km 46.4% 41.9% Civil 5087 Elect & S&T Civil, Elect and S&T 99.40% 42.7% 39.6% /2.95 km 20.4% 13.6% % Ready for commissioning. 4. Balance portion of Mughalsarai- Sonnagar (70 km) Civil 1450 Civil, Track & System % 22/14.75 km 49% 43.1% System work will be awarded by August,

20 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) 6. Pilkhani Ludhiana (179 km) Civil 511 Elect & S&T % 9/10.26 km Civil % 1/0.3 km Elect & S&T Khurja-Pilkhani (222 km) Civil 1873 Elect & S&T % 2/5.5 km 24.2% 20.9% Contract will be awarded by October, % 21.7% Contract will be awarded by November, % 5% Contract will be awarded by December,

21 Commissioning Targets-WDFC SN Sections Targets 1. Rewari-Marwar (432 Km) December Marwar-Palanpur (207 Km) September Palanpur-Makarpura (308 Km) March Makarpura- Vaitarna (313 Km) March Vaitarna JNPT (117 Km) March Rewari Dadri (127 Km) March -20 Commissioning Targets-EDFC SN Section Target 1. Khurja-Bhaupur (343 km) November Bhaupur-Mughalsarai (402 km) August Sonnagar Mughalsarai (126 km) October Khurja-Dadri (46 km) December Pilkhani Sahnewal (179 km) March Khurja Pilkhani (222 km) March

22 State-wise affected Land Patches Name of State Uttar Pradesh Length of DFC (in KM) Total Area (in Ha) length (in KM) Affected Area (in Ha) No of Patches Maharashtra Bihar Rajasthan Gujarat Punjab Haryana Total Affected patches include land legally acquired but possession not taken. 22

23 BENEFITS OF IMPROVED DESIGN IN TRANSPORT LOGISTICS 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 CO 2 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

24 BENEFITS OF IMPROVED DESIGN IN TRANSPORT 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.

25 DFC A GAME CHANGER IN TRANSPORT LOGISTICS FASTER, HIGHER AND LONGER-SIGNIFICANT INCREASE IN AVERAGE SPEEDS OF FREIGHT TRAINS (FROM 26 KMPH ON IR TO 70 KMPH) VOLUMETRIC CAPACITY PER WAGON (WAGONS WITH HIGH PAY LOAD/TARE WEIGHT RATIO. THROUGH PUT PER TRAIN (INCREASE LENGTH OF TRAIN FROM 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

26 REDUCED UNIT COST OF 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 SERVICES INDUSTRY/SHIPPERS:- FASTER MOVEMENT OF GOODS GUARANTEED TRANSIT TIME ENABLING RUNNING OF FREIGHT TRAINS TO TIME TABLE VALUE ADDED SERVICES- SUPPLY CHAIN MANAGEMENT

27 DFC A GAME CHANGER IN TRANSPORT LOGISTICS(Contd) Economic Growth Not only Regional but National ECO FRIENDLY ENERGY EFFICIENT TRANSPORT SYSTEM GREEN DFC - TO SAVE 457 MILLION-TONNE CO 2 OVER 30 YEARS 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

28 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 total investment of around USD 16 Billion Likely completion of 2 DFCs: December Eastern DFC (Ludhiana-Dankuni, 1839 kms): mainly for bulk traffic, passing thru Haryana, UP, Bihar & W.B. Western DFC (Dadri-JNPT, 1483 kms): for container traffic, passing thru Delhi, Haryana, Rajasthan, Gujarat, Maharashtra Western DFC: 130 trains per day per direction which translates to evacuation of 65 million TEUs 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

29 Projected Traffic 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 CORRIDOR In Million Tonnes In Billion NTKM EDFC WDFC

30 Commodity wise Non-IR traffic in FY 20 Commodity WDFC Originating Traffic (MTPA) EDFC Originating Traffic (MTPA) Total Traffic (MTPA) Cement Cement Grade Limestone Chemicals Clinker Coal Domestic Containers Edible Oil Exim Containers F&V Fertiliser 0-0 Finished Steel Iron & Steel Grade Limestone Pig and sponge Iron 4 4 POL Rice Salt 2-2 Wheat Non conventional cargo Other Commodities 5 4 9

31 Non-conventional cargo estimated on rail Non-conventional cargo Marble Ceramics Retail Two wheelers Three wheelers Passenger cars Tractors Household Appliances Hi-Tech Commodities Construction Equipment Expected Volumes (FY20) 3.2 MTPA 1.9 MTPA 1.4 MTPA 1.4 Mn Units Mn Units Mn Units Mn Units 0.4 Mn CBM 1.1 Mn Units Mn Units

32 DFC in Railway Budget Corridor Kms Projected Traffic in (MT) Completion Cost (Billion USD) East West Corridor (Kolkata Mumbai) North-South Corridor (Delhi-Chennai) East Coast Corridor (Kharagpur-Vijayawada) 2328 Kms Kms Kms Total

33 MAJOR CHALLENGES 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

34 Container Logistics & Planning for Container Traffic & Facilitating e- Commerce 34

35 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 performance index shows that India jumped to 35 th rank in 2016 from 54 th rank in Indian logistics industry is valued at USD 160 billion and is likely to touch USD 215 billion by Global logistics industry employs 40 million professionals and Indian logistics industry employs about 22 million. It has grown at CAGR of 7.8% during the last 5 years and is expected to grow at a CAGR rate of 10.5 %. 35

36 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 of the logistics and SCM industry is very crucial as it contributes to 13% of the country s GDP. For harmonisation of warehousing which plays a major role in the growth of the logistics industry, Government of India has brought GST into picture for an optimal and efficient supply chain planning. Overall Port Container Throughput of 13.7 million TEUs in but just about 2% of global volumes. As per Industry estimates, by India would handle around 379 Mn Tn of containerized cargo (approx 20 million TEUs) per annum. 36

37 Global Logistics Market (contd.) Container handling capacity at Ports is planned to be increased to 47 million TEUs by 2020 (present 10.35). India handled around million TEUs in at Major Ports. CONCOR, a major player in providing multimodal logistics solutions, handled around 3.53 million TEUs in through its vast network of 72 owned Terminals and 7 strategic Tie ups spread across the Country. 37

38 Overview Indian logistics industry is valued at USD 160 billion and is likely to touch USD 215 billion by Global ranking of the world bank s 2016 logistics performance index shows that India jumped to 35 th rank in 2016 from 54 th rank in Indian logistics industry employs about 22 million people. It has grown at CAGR of 7.8% during the last 5 years and is expected to grow at a CAGR rate of 10.5 %. 38

39 Overview (contd.) The sector alone provides jobs to more than 40 million professionals across the globe and expected to create millions 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 of the logistics and SCM industry is very crucial as it contributes to 13% of the country s GDP. For harmonisation of warehousing which plays a major role in the growth of the logistics industry, Government of India has brought GST into picture for an optimal and efficient supply chain planning. 39

40 Overview (contd.) INDIA GDP Around US$ 2 trillion, set to grow at 7-8% per annum Overall Port Container Throughput of 10 million plus TEUsBut just 1.6% of global volumes With increase in merchandise trade, container traffic is poised to increase with passage of time. 40

41 Overview (contd.) Container handling capacity at Ports is planned to be increased to 47 million TEUs by 2020 (present 10.35).India handled around million TEUs in 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 through its vast network of 72 owned Terminals and 7 strategic Tie ups spread across the Country. 41

42 Challenges for Logistics High Logistics cost Under developed material handling infrastructure Fragmented warehousing Lack of seamless movement of goods across modes 42

43 Trade India s export basket, continues to rely on exports of primary goods and low-value, low-tech manufacturing goods. Agricultural products such as cotton, rice, tea, meat and spices continue to dominate the exports. A shift to exports of medium and hightech manufacturing products such as engineering goods is visible; however, their share in the total export goods lags behind China and other emerging economies. 43

44 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

45 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%) Trade (contd.) 45

46 Trade (contd.) Over three-fifths (61.3%) of Indian exports in 2017 were delivered 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

47 Trade (contd.) Positive demand in Europe, North America, South American economies, as well as rising imports from China tethered the container traffic growth at Indian ports. Trade with western countries continues to dominate as India s export market with a share of 72% of the country s total exports. Imports from western countries are gradually declining and decreased from 59% in 2011 to 51% in Import from eastern countries reached 49% in 2016 from 41% in

48 Trade (contd.) The market share of major ports declined from 92% in 2005 to 63% in 2016 while market share of non-major ports collectively surged to a whopping 37% in 2016 from 3% in On the west coast, JNPT that had a share of 66% traffic back in 2010 slipped to 48% by On the other hand, Mundra expanded its share from 18% to 35% during the same period. On the east coast, Krishnapatnam and Katupalli that started operations from 2013, currently hold a market share of 5% and 8% respectively while Chennai s share plummeted from 52% to 41% 48

49 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 and is poised to grow further. Delhi-Mumbai route is working on more than 100% line capacity utilization. 49

50 Modal Split & Assessment (contd.) 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). 50

51 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.

52 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. 52

53 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. 53

54 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. 54

55 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 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

56 The External Environment (contd.) 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 ) Cargo traffic at Indian ports has doubled to 1 billion tonnes per annum over the last decade (FY ) 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 projects identified in Indian maritime sector offering numerous investment opportunities

57 India with long coastline, spanning 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).

58 Drivers for container trade growth The future of container growth in India is bullish in the wake of various policy initiatives such as Make in India, Goods and Services Tax (GST), Digital India, new Foreign Trade Policy and port linked infrastructure projects. New Foreign Trade Policy (FTP):- Under the new Foreign Trade Policy ( ), India aims to increase its share in the global trade to 3.5% by Incentives to agricultural exports and extension of the same under Merchandise Exports from India Scheme to units in SEZ are part of the new FTP. 58

59 Infrastructure projects linked to port:- Multiple infrastructure projects, eyeing to improve India s logistics efficiency and hinterland connectivity, will boost the containers business in India. Multi-modal terminal under Jal Marg Vikas project:- 170 crore multi-modal terminal at Varanasi, under the Jal Marg Vikas project that will open before December 2018 will be a major logistics hub connecting North India to North East India. The government will also develop 35 multi-modal logistics parks for freight aggregation and distribution, multi-modal transportation and warehousing. 59

60 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 two years. 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 Four hundred and fifteen projects have been identified for port modernisation, new port development, port connectivity enhancement and port linked industrialisation 60

61 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 shifting containers that are currently transhipped at Colombo or South East Asian ports such as Singapore or Port Kelang. This will act as transhipment hub for cargo from Bangladesh and Myanmar, which are currently being transhipped at Colombo or other South East Asian hubs. The 7,525 Vizhinam port, currently being developed by Adani that enjoys a natural draft of more than 20 metres is another port that will compete as a transhipment hub. 61

62 New Initiatives-DPD The government's new initiative Direct Port Delivery (DPD ) to reduce dwell time and transaction cost for the shippers could make some substantial savings of time and money for importers. With DPD, importers can bypass clearances with shipping lines, custom house agents, Customs, consignees and CFS operators through a streamlined procedure, allowing import containers to be delivered to the end user directly at the port with an average dwell time of only 1.5 days from 9-10 days taken earlier. 62

63 Container Movement by Rail TIMETABLED TRAINS Dadri Kathuwas & TKD-Kathuwas Daily Timetabled Trains started from 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 , 938 Rakes were run in More than 150 Double Stack Trains being run per month 63

64 Movement of International Cargo by Railways on Indian Frontiers

65 India Pakistan Rail Traffic Regulated by a Bilateral agreement signed in 1976, extended in 1999, and then reviewed in Now being extended every 3 years. Agreement on Rules of Interchange between India and Pakistan applicable primarily to freight traffic.

66 India-Pak Passenger Traffic Samjhauta Express running bi-weekly between Attari and Lahore via Wagah since IR running a link service between Delhi and Attari as 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

67 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 Samjhauta Express 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.

68 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.

69 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).

70 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

71 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 patronised by senior citizens and Bangla patients seeking medical treatment in India. Customs/immigration done end-to-end respectively at Kolkata and Dhaka/Khulna.

72 India-Bangla Freight Traffic During , an average cargo of tonnes per month made over to Bangladesh, with a high CAGR. Average of freight rakes used for this export traffic from India. Export traffic from India: stone/ballast, deoiled 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.

73 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.

74 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.

75 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.

76 Surveys for New India-Nepal Rail Projects From (India) Nepalganj Road (Uttar Pradesh) Nautanwa (Uttar Pradesh) New Jalpaiguri (West Bengal) Kushinagar (Uttar Pradesh) To (Nepal) Distance (km) Nepalganj 12 Bhairahawa 15 Kakarbhita via Panittanki Kapilvastu 46 Survey in progress

77 THANK YOU