Indian Railways set for big change! Cost of carrying freight to come down with Dedicated Freight Corridors

By: |
March 12, 2020 12:21 PM

The Railway Ministry is implementing two Dedicated Freight Corridor (DFC) projects - 1,856 Km long Eastern Dedicated Freight Corridor (EDFC) from Ludhiana to Dankuni and 1,504 km long Western Dedicated Freight Corridor (WDFC) from Dadri to Jawaharlal Nehru Port Trust.

dfcBoth the DFCs are targeted to be completed in phases by December 2021.

Dedicated Freight Corridors Project boon for Indian Railways! The cost of carrying freight is likely to come down with the implementation of two Dedicated Freight Corridors! Recently, Railway Minister Piyush Goyal in a written reply told the parliament that the Railway Ministry is implementing two Dedicated Freight Corridor (DFC) projects – 1,856 Km long Eastern Dedicated Freight Corridor (EDFC) from Ludhiana to Dankuni and 1,504 km long Western Dedicated Freight Corridor (WDFC) from Dadri to Jawaharlal Nehru Port Trust. Both the DFCs are targeted to be completed in phases by December 2021. Goyal said the overall physical, as well as the financial progress of these two corridor projects at present, is 70 per cent and 68 per cent, respectively, according to a PTI report.

On February 28, 2014, a concession agreement was signed between the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) and Railway Ministry, stipulating the modalities to operate the freight trains of Indian Railways on DFC network. According to the Railway Minister, the DFCs have been designed to run freight trains up to a maximum speed of 100 Km per hour with an axle load of 25 tonnes.

According to Goyal, compared to the existing set up of Indian Railways, the DFCCIL is expected to have better operational as well as man-power efficiency, due to faster speed, modern technology, and the latest communication system, resulting in reduced cost of carrying freight. The minister further stated that the enhanced capacity with higher speed on Dedicated Freight Corridor is likely to offer assured transit time to customers as well as a substantial reduction in total logistics cost.

Currently, the corporation is in the process of finalizing its business development plan, which includes the establishment of multi modal logistic parks as well as market-driven freight incentive measures to attract additional freight on Dedicated Freight Corridor network, the report said.

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