India’s Dedicated Freight Corridor (DFC) programme, an ambitious project aimed at transforming the nation’s freight transport system, is witnessing significant growth. With 2,089 km of the planned 2,843 km of new freight railway now operational, the DFC is already reshaping the logistics landscape. However, as traffic on these corridors increases, a myriad of institutional and technical challenges must be addressed to fully realise the project’s potential.
The Eastern DFC is nearing completion, with only a 363 km extension from Sonnagar to Andal still under construction by Indian Railways (IR). Meanwhile, the Western DFC, funded by the Japan International Cooperation Agency (JICA), is making rapid progress on its 109 km section connecting Vaitarna in Maharashtra to Jawaharlal Nehru Port in Mumbai, set for completion in December. Since the initiation of DFC operations on 12th December 2020, a total of 62,277 trains have traversed these corridors, moving over 71 billion gross tonne-km of freight. Currently, an average of 240 trains operate daily on the DFC, with projections indicating this number will double by year-end. The anticipated expansion is set to bolster the Indian Railways’ freight traffic target from 1.5 billion to 3 billion tonnes annually by 2030, contributing to a significant reduction in CO2 emissions over the next three decades.
To date, Rs 835 billion of the total Rs 1.03 trillion project expenditure has been allocated to the DFCs, excluding land costs. This investment has already proven its worth, as transit times from New Delhi to Mumbai have been slashed to 24-36 hours, compared to three times longer previously. Similarly, coal transport on the Eastern DFC now takes just two days instead of five. Despite these successes, unresolved disputes between IR and the Dedicated Freight Corridor Corporation of India (DFCCI) threaten to undermine the project’s full potential. DFCCI, established by IR to oversee the DFCs’ development and funding, is responsible for construction, maintenance, and operation but currently has only partial operational control. Issues persist regarding the track access charges IR is supposed to pay DFCCI. This agreement, part of a larger concession contract, includes fixed capital costs and variable expenses. However, IR has resisted paying these charges, arguing it is the sole user of the DFC infrastructure, leaving DFCCI financially strained.
To address this, the Minister of Railways has proposed that his ministry assume control of DFCCI, a complex move requiring approval from multiple ministries. The current arrangement has led to DFCCI’s dependence on IR for funding, routed through the Ministry of Railways, and operational challenges such as crew shortages. Further complicating matters are discrepancies in double-stack container train operations. While allowed on the Western DFC, the Eastern DFC only permits single-stack trains due to different overhead line heights. This inconsistency hampers interoperability and traffic exchange between the two corridors. A uniform policy on train dimensions and new wagon designs is critical for future development.
