Japanese prime minister Jonichiro Koizumi visited India
last year, he pledged Japanese financial assitance for
the dedicated freight corrridor project. The Japanese
study will take one and a half year before they decide
whether to invest, but the Indian Railways is not waiting
for that such is the level of confidence, reports
Indian Railways will register a company called Dedicated
Freight Corporation with an equity capital of Rs4,000
crore to implement the project, estimated to cost from
Rs22,000 to Rs33,000 crore.
the first phase, the most congested East-West corridors,
that is Ludhiana-Howrah, Ludhiana-Mumbai lines will
be connected, over five years. Later, the other main
metros will be connected. The entire exercise will bring
down the unit cost of transport by carrying larger volumes
at faster speeds.
variable cost of moving one tonne of cargo over a kilometre
could be cut to a third to 15 paise, with the freight
corridor. Container trains could move between Delhi
and Mumbai in 18 hours from the 47 hours they currently
take. The average speed of passenger trains on the existing
routes could also double, from 55 kilometres an hour
Railways is approaching the freight corridor project
from a position of strength and wants to retain much
of the profits. The company implementing the project
is departmentally owned. It will own the railroad, charge
for access and haulage.
companies could be engaged to build the road on deferred
payment basis and they will be roped in to operate trains
by renting out time on the railroad.