In a strategic reassessment of its transportation infrastructure plans, the Indian government is contemplating abandoning the proposal to develop three dedicated freight corridors (DFCs) at an estimated cost of Rs 2 trillion.
This decision reflects concerns over the underutilisation of existing corridors and a shift towards more focused commodity-specific rail networks. The proposed East Coast, East-West, and North-South freight corridors, which collectively span over 4,300 kilometres, are under scrutiny due to the challenges encountered in maximising the capacity and utilisation of recently commissioned east and west freight corridors. Despite the submission of detailed project reports (DPRs) for the proposed corridors, discussions indicate a potential departure from pursuing these projects. Instead, the government is exploring the establishment of commodity-based rail corridors, aligning with the vision outlined in the Prime Minister Gati Shakti initiative to enhance multi-modal connectivity and optimise logistics. Finance Minister Nirmala Sitharaman had previously unveiled plans for exclusive corridors dedicated to specific commodities such as energy, minerals, and cement, as well as corridors for port connectivity and high-traffic routes.
While the proposed corridors aimed to streamline freight transportation, concerns have arisen over their viability and alignment with evolving logistical demands. Issues with network planning and low utilisation rates have underscored the need for a more targeted approach to infrastructure development. For instance, the Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) currently operate below their capacity, with utilisation rates well below projections. Despite having the capacity to accommodate a higher volume of trains, factors such as low demand and operational challenges have led to suboptimal utilisation levels. As the government re-evaluates its freight corridor strategy, stakeholders emphasise the importance of prioritising efficiency, cost-effectiveness, and alignment with market demands. By leveraging commodity-specific corridors and optimising existing infrastructure, India aims to enhance its logistical capabilities, reduce transit times, and bolster the competitiveness of its freight transportation sector.
