The commissioning of the Western Dedicated Freight Corridor (WDFC) up to the Gujarat ports of Mundra and Pipavav in FY22F should lead to time-guaranteed delivery of consignments by the railways, leading to 9pp market share shift from road to rail over FY22-26F.
The fact that WDFC freight rates will be lower than existing rail rates by 16-20% by FY26F will boost Indian logistics’ competitiveness, both from a cost and timeliness perspective.