Diversify freight basket, send more crew in DFCs: House panel to Rlys, Pg6

Key Highlights:

• The Standing Committee on Railways urged Indian Railways to diversify its freight basket beyond bulk commodities like coal.
• In 2024-25, Indian Railways freight loading was 1,617 million tonnes (MT), with coal comprising 833 MT or nearly 50%.
• The National Rail Plan estimates total freight demand for 2025 at 6,017 million tonnes, with railways currently moving about 27%.
• The committee highlighted challenges in attracting private investment for Dedicated Freight Corridors (DFCs) due to high capital costs and revenue uncertainties.
• Availability of crew was identified as a major challenge for running trains on DFCs, which have an average speed of 37 km/h.

Detailed Insights:

• The committee suggests exploring sectors like automobiles, FMCG, and e-commerce to reduce reliance on traditional commodities.
• A broader commodity basket is essential for ensuring sustainable growth and cushioning against fluctuations in demand.
• Indian Railways should identify commodities with low rail modal share but high growth potential and address operational bottlenecks.
• Three more DFCs are under consideration: East Coast DFC (1,149-km), East-West DFC (2,321-km), and North-South DFC (922-km).
• Private sector participation in DFC projects faces challenges due to high capital investment, delayed returns, and revenue uncertainties.
• The Sonnagar-Dankuni section of the Eastern DFC, initially planned under the PPP model, faced limited interest from the private sector.
• Increasing crew availability is crucial to address the challenges faced by DFCs in running trains efficiently.

Key Concepts Involved:

• Freight Basket: The range of commodities transported by a carrier, like railways.
• Dedicated Freight Corridors (DFCs): Railway lines exclusively for freight transport.
• Public-Private Partnership (PPP): Collaboration between government and private sector for projects.