With the implementation of two dedicated freight corridors, the cost of carrying freight is likely to be reduced, the railways ministry told parliament on Wednesday.
In a written reply in Lok Sobha, Railway Minister Piyush Goyal said the ministry is implementing two Dedicated Freight Corridors (DFC) namely, Eastern Dedicated Freight Corridor from Ludhiana to Dankuni (1,856 Km) and Western Dedicated Freight Corridor from Dadri to Jawaharlal Nehru Port Trust (1,504 km).
At present, the overall physical and financial progress of these two projects is 70 per cent and 68 per cent, respectively.
A Concession Agreement was signed between the Ministry of Railways and Dedicated Freight Corridor Corporation of India Limited (DFCCIL) on February 28, 2014 stipulating the modalities to run Indian Railways' freight trains on DFC network.
Dedicated Freight Corridors have been designed to run freight trains with an axle load of 25 tonnes up to maximum speed of 100 km/hour, he said.
"DFCCIL is expected to have better operational and man-power efficiency as compared to existing set up of Indian Railways, due to modern technology, faster speed and latest communication system, leading to reduced cost of carrying freight. Moreover, enhanced capacity with higher speed on DFCCIL is expected to offer assured transit time to customers and consequently substantial reduction in total logistic cost," the minister said.
DFCCIL is in the process of finalising its Business Development Plan which includes development of Multi Modal Logistic Parks and market driven freight incentive measures to attract additional freight on DFC network.