India - Freight Corridors

Tonymercury · Posted: Sat Jun 28, 2008 6:31 am

Dedicated Freight Corridors are close to launch
26 Jun 2008 | Raghu Dayal

INDIA: Following the approval of a funding agreement with Japanese banks, the first contracts for construction of the country’s two high-capacity dedicated freight corridors are due to be awarded by October, reports Raghu Dayal

There is no doubt about the urgency of substantial capacity enhancement on the Indian Railways network, as the rapid growth in both freight and passenger traffic over recent years is forecast to continue. So the announcement on April 8 that tenders are being invited for construction work on one of the country's two Dedicated Freight Corridors is a welcome development.

In his budget speech on February 26, Railways Minister Lalu Prasad promised that work on the Eastern and Western DFCs would get underway during the 2008-09 financial year. The special purpose vehicle established to lead the projects - Dedicated Freight Corridor Corp of India Ltd - has now invited expressions of interest for the 300 km segment of the Eastern Railfan between Bhaupur (near Kanpur) and Mandrak (near Aligarh). A design-and-build contract valued at around Rs30bn is expected to be awarded in September or October. This section of line is needed to relieve a major bottleneck on the existing network, and will be funded directly by IR from its own resources.

Two years ago the government approved in principle the construction of the first two corridors totalling almost 2800 km. Dfccil was officially incorporated in October 2006, and the 2007-08 railway budget provided Rs13·3bn towards the estimated Rs282bn cost, but not much tangible work has materialised so far.

However, a lot has been happening behind the scenes. A preliminary engineering and traffic study by Rail India Technical & Economic Services has now been followed up by a more detailed feasibility study by the Japan International Co-operation Agency, determining the full technical specifications, agreeing the route alignments and cost projections, and looking at sources of funding.

Boosting rail's competitiveness
Although the volume of rail traffic is continuing to increase, driven by India's strong economic growth, IR's market share of both passenger and freight is actually falling. According to figures issued by the Ministry of Shipping, Road Transport & Highways, total freight movement in the country amounted to more than 1100 billion tonne-km in 2006-07 Of this, the roads handled around 60%, the railways 33%, coastal shipping 6·85% and inland waterways just 0·15%. Back in 1950-51, IR had no less than 89% of the freight market. Citing the overall socio-economic interest, including energy consumption and environmental conservation, the government recognises that rail capacity needs to be enhanced and more customer-focused services introduced to counter competition from other modes.

The 1483 km Western Railfan will link JN Port near Mumbai with Dadri in the Delhi area, and the Eastern corridor will run for 1279 km from Ludhiana to Sonnagar. These are intended to relieve two of IR's busiest main lines. The Golden Quadrilateral routes linking the four important metropolitan areas of Delhi, Mumbai, Chennai and Kolkata represent just 16% of IR's network but carry more than 50% of the total freight and passenger traffic. Much of the country's economic growth is also concentrated in this region.

Described as IR's 'most ambitious project ever', the dedicated freight corridors are expected to trigger a much-needed improvement of technical standards across the network and lead to more cost-effective operation. This will see axleloads raised from between 20 and 22 tonnes to 30 tonnes on the main routes, and at least 25 tonnes on feeder lines connecting with the new corridors. Taller and wider wagons will improve payloads. IR is looking for much higher productivity of its assets, leading in turn to a reduced unit cost of transport.

The DFCs are also expected to act as a catalyst for economic growth and encourage value-added services such as the creation of logistics parks and industrial hubs along their routes. These logistics parks will enable rail to compete more effectively with road for break-bulk domestic container business, provide storage and distribution for trainload commodities, and expand its carriage of automobile movements. There may also be scope to develop piggyback business.

Containers in the west
Traffic on the western corridor is forecast at 38 million tonnes in 2013, rising to 106 million in 2023 and 157 million by 2033 (Table II). Corresponding figures for the eastern corridor are 69 million tonnes in 2013, 145 million in 2023 and 155 million by 2033. To a considerable extent, traffic growth on the western corridor will be driven by rising international container traffic through the ports; this is expected to increase by an average 8·6% year on year to 43 million TEUs by 2031. If rail takes a 35% share, the western Railfan could be handling 10 million TEUs a year.

The best way to handle container traffic is a source of disagreement between Rites and JICA. At an average of 90 TEUs per train, annual traffic of 10 million TEUs would require 300 trains each way per day. The consultants agree that the answer is to adopt double-stack. Rites favours conventional flat wagons and diesel locos, whereas JICA cites experience in China and elsewhere of using well-wagons to accommodate double-stack on electrified lines. This would require a catenary height of 6870 mm above rail, compared to 4800 mm for single-stack and 7470 mm for double-stack on flat wagons.

Flat wagons could double the capacity per train, whereas well wagons would limit the increase to around 50%. Nevertheless, JICA estimates the electric option would generate a better internal rate of return, at 20·4% compared to 13·5% using diesel haulage. Transport costs per TEU would be around Rs1·5 per TEU-km for either option, against Rs1·8 for single-stacked boxes. The JICA report cites economic, environmental and energy issues in support of electrifying both the eastern and western corridors, pointing out that environmental clearance will be one of the essential requirements in any project appraisal by international lending agencies such as the World Bank, Asian Development Bank and Japan Bank for International Co-operation.

Signifying its tacit acceptance of an electric option, IR has asked the Research, Development & Standards Organisation to carry out trials with double-stack container trains under the wires. Trials are currently underway on the Jakhapura - Daitari section of the East Coast Railway, where trains carrying two containers on flat wagons are being tested on this heavy haul mineral line.

Specifications agreed
Technical specifications for the new lines have largely been firmed up. Both routes are being designed for a maximum speed of 100 km/h and a 30 tonne axleload. They will be laid with UIC 60 kg/m rail and 90 kg/m UTS head-hardened rail on the curves. Minimum main line radius will be 700 m. The rails will be carried on precast concrete sleepers, laid at 1660 per km on the main line and 1540 per km on loop lines and sidings. Turnouts will have cast manganese crossings and concrete bearers. Main line and junction turnouts will have a 1 in 12 angle to permit diverging speeds of 60 km/h, but the loop turnouts will be 1 in 8·5 with a diverging speed of 45 km/h. Railfan tracks would be laid at 5·5 m spacing, and at least 6 m from the nearest conventional track.

Whereas Rites favours building the lines for 1500 m long trains, JICA believes that 750 m loops at intervals of 30 to 40 km would provide sufficient capacity for the foreseeable future. Shorter loops would also reduce the land take, and increase line capacity, it says. Going against current trends towards full grade separation, JICA rejects Rites' call for the construction of road overbridges throughout, arguing that level crossings with automatic detection systems, would suffice in urban areas where bridge construction could be difficult and would cause hardship for non-motorised road traffic. With 745 road crossings planned for the western corridor and 580 for the eastern, this is a potentially significant issue.

JICA recommends that freight trains should run to a firm timetable to ensure a high quality of service, particularly for intermodal business. Removing the requirement for an assistant driver in favour of single-manning of locomotives will cut costs, as will the elimination of brake vans through the use of end-of-train detectors. JICA also favours an advanced train control system including CTC and balises for train detection. A fleet of six-axle electric locos rated at 9000 hp is envisaged for the container trains and eight-axle locos of 12000 hp for the bulk freight trains.

Looking at operational and managerial aspects of the project, JICA recommends that the DFCs should have a lean management organisation segregated from IR's existing structure; this would contribute to reduced operations and maintenance costs. Proposed staffing levels are in fact higher than those applying in Japan, but still less than half the number of people that IR currently employs for the same tasks (Table IV).

The Japanese study team also looked at the socio-economic impact in each of the 37 districts along the two routes, calculating that 112 households and 237 squatters would have to be resettled for every 100 route-km. This raises questions about compensation, resettlement costs and job opportunities.

The issue of squatter encroachments is particularly severe on the western corridor between Vadodara and the Mumbai area, with 1200 houses to be cleared in the 80 km between Dadri and Rewari alone. The 92 km route through the Mumbai suburbs from Vasai Road to J N Port has a further 560 dwellings. Nearer to Vadodara, up to 660 ha of farmland must be acquired to create the corridor through the fertile coastal belt. Squatters are also a big issue in the area around Delhi's main container terminal at Tughlakabad. This is less of a problem on the eastern corridor except where bypass lines are planned around Tundla and Aligarh.

Costs and financing
Compensation for land acquisition is one of several elements that are driving up the cost of the project. In its preliminary study, Rites estimated the cost of building the western corridor at Rs166bn and the eastern at Rs116bn. However, JICA now puts the total for both routes at Rs559bn. This includes Rs269bn for construction, Rs100bn for electric locomotives and Rs61bn for land acquisition, as well as financing and management costs, inflation and contingencies.

JICA has recommended implementing the project in three phases, and financing it from a number of sources: internal generation by IR (at 6·5% interest), a low-interest loan from JBIC (0·4%), other international financial institutions (6%) and commercial borrowing (12%). For the proposed funding split, the debt service coverage ratio would be around 1·9, enabling Dfccil to earn a return on equity of around 11%.

In its review of likely funding sources, JICA compared the DFCs with recent railway construction projects in China. CR built up a Railway Development Fund by levying a toll of 0·028 yuan/tonne-km on all traffic, and also issued government bonds, although the lion's share of domestic debt has been raised through the National Development Bank. Local and municipal railways in China have been able to attract private and local government equity. Funding of 26·2bn yuan for the railway to Tibet included a 75% contribution from central government and 25% from the Railway Development Fund. Conversely, the Beijing - Shanghai high speed line will only have a 4bn yuan equity contribution from the government. Similar sums are to be raised by issuing stock in overseas markets and the sale of foreign bonds. The National Development Bank is contributing 15bn yuan, another 12bn will come from as donor loans, and 3·5bn yuan as international loan from commercial banks.

IR currently favours funding the DFCs from its own equity, supplemented by borrowings as necessary. It has already committed its one-third equity contribution to enable work to start on the eastern corridor. There is a strong likelihood of World Bank providing funds for the this route, as well. By contrast, JBIC has shown particular interest in the Western corridor, and will probably provide funding for the initial section of this line between Rewari and Vadodara.

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Tonymercury · Posted: Mon Jun 30, 2008 6:05 am

http://finance.groups.yahoo.com/group/irfca-news/message/27883

The new series has been tested and cleared by the research wing of
the Railways.

Kolkata, June 26

Stone India Ltd's in-house R&D setup has designed and developed a
pantograph to be used in locomotives deployed for experimental run of double stack container trains being
planned for the proposed dedicated freight corridor, according to
company sources.

The experimental run is to take place shortly in certain sections
under the East Coast Railway.

The new series of pantograph, called Omniversal Intelipanto TM, has
been tested and cleared by the Research Design & Standards
Organisation (RDSO) of the Indian Railways, say the sources, adding
that the experts from Japan, the funding country for the proposed
freight corridor, too, have approved the equipment.

Big challenge
The major constraint in running high speed locomotives with double
stack container trains is the increase in catenary height from six metres to 7.5 metres. To balance such a high reach
pantograph in double stack containers moving at a high speed in
adverse wind condition has been a big challenge for all global
suppliers.

The Kolkata-based Stone India Ltd, which has been catering to the
requirement of the Indian Railways for more than 76 years and has
introduced many critical systems for the Railways in partnerships
with foreign companies, hopes to export the new series of
indigenously-developed pantographs to countries planning to use
electric traction for running double stack container trains, add the
sources.

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Tonymercury · Posted: Sat Jul 05, 2008 5:58 am

India's Research Designs & Standards Organisation confirmed on June 18 that it is to test electrically-hauled double-stack trains on the 25 km Tomca - Jakhapura section of East Coast Railway in Orissa, as part of development work for the Dedicated Freight Corridors. The line will be temporarily electrified with the contact wires 7·5 m above rail level.

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Tonymercury · Posted: Tue Jul 15, 2008 6:27 am

http://www.siasat.com/english/index.php?option=content&task=view&id=281427&Itemid=79&cattitle=Hyderabad

Hyderabad, July 12: Work relating to the much awaited Dedicated
Freight Corridor (Railfan) proposed by the railways will start in the
current year, Member Engineering of the Railway Board, Satish K Vij
said on Friday.

Speaking at a media conference at Rail Nilayam in Secunderabad on
Friday, he said "A core team has already been formed with its
headquarters in New Delhi and is doing its home work in association
with the consulting firms."

Major bridges will be required in the Surat-Mumbai sector and the aim
would be to build bridges which have sound design and low cost
maintenance, he added.

Replying to a question on the major challenges faced by them with
regard to the Railfan, he said finance was a major challenge besides
shortage in terms of capacity building and skilled labour in India.

The Dedicated Freight Corridor project costs over Rs 30,000 crore. It
envisages construction of 5,600 km of railway line which also
includes 3,000 km of double lines of railway tracks.

Satish Vij said that a Special Purpose Vehicle has been created and
has been formalised also.

"We are tying up with Japan and the World Bank to fulfil the
financial commitments towards the project. The Japanese are
interested in the Western Corridor (Delhi to Mumbai) while the World
Bank is interested in the Eastern Corridor (Delhi to Kolkata)," he
said.

SEMINAR: Earlier speaking at a seminar on "Recent Advances and Future
Trends in Design and Construction of Bridges" organised by the
National Bridge R & D Centre (NBRDC) of the Indian Institute of
Bridge Engineers (IIBE), Hyderabad, Satish Vij said that a decision
has been taken to see to it that all the rail bridges in the country
are capable of handling an axle load of 25 tonnes.

He also released a souvenir of technical papers on the art and
science of bridges on the occasion. He said that while there was a
need to build 1200 Road Over Bridges (ROBs) in the country, the
railways was building only 30 ROBs because of the various problems
encountered by local municipal bodies.

Speaking on the occasion, General Manager of the South Central
Railway, H K Padhee said that bridges should be aesthetically
designed besides being technically sound. The bridge across Hoogly
took almost 25 years to get completed and asked the engineers to see
to it that such delays do not happen now.

Managing Director of Hyderabad Metro Rail limited NVS Reddy announced
a token amount of Rs 5 Lakh to IIBE on behalf of the State Government
and appealed to the people at IIBE to help the Metro Rail in its
future endeavours.

"A bridge across river Chenab in Akhnoor, J&K was a tough
challenge but was built in a record time of just 22 months," Director
General of the Border Roads Organisation AK Nanda said.

He said that the BRO had built 46 bridges in the last year alone and
work on another 158 bridges is on.

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Tonymercury · Posted: Fri Jul 25, 2008 6:26 am

BHUBANESWAR, July 23: Railway electrification of Jakhapura-Daitari
section of East Coast Railway has brought recognition for India as
the first country in the world to have electrification of railway
track at 7.45 metre height for running of Double Stack Container
(DSC) goods trains.

Such type of DSC movement by rail is presently in vogue mainly in
China and USA. While the contact wire height for electrification for
DSC in China is 6.6 metre, the same is 7.1 metre in USA, railway
sources said.

It may be recalled that the electrification of Jakhapura-Daitari
section was sanctioned during January last year. In July, the
railway ministry decided to electrify the line for movement of DSC
by rail on electric traction and Jakhapura-Daitari section was
nominated for the trial run.

It is for the first time in the world that Overhead Equipment (OHE)
has been erected at a height of 7.45 metres in India for running of
DSC goods train under electric traction, railway sources claimed.
International corporation agencies like JICA, Japan is a consultant
for the work and will evaluate the test reports and give
recommendations for running of DSC under electric traction.

Sources said that the trial was conducted by electric locomotive
fitted with special type of pantograph which can work in the normal
electrified territory and also in DSC.

The trial was conducted between Jakhapura and Tomka from 6 July to 9
July this year in the presence of JICA experts who were satisfied
with the trail run and prima-facie have accepted the system for
adoption in India for running DSC on electric traction. The section
was inspected by member (electrical), railway board Mr Sukhbir
Singh, who expressed satisfaction over the successful trial.

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Tonymercury · Posted: Sat Jul 26, 2008 6:13 am

India's Speedy New Scheme
India is building an ambitious industrial corridor from New Delhi to Mumbai, which includes high-speed freight lines. Neil Pulling looks at the project, due to be complete in 2012.

Following a radical shift in 1991 from a centrally controlled economy that included restrictions on overseas investment and licensing of operations by foreign companies, India's economic advance looks set to continue.

Moving from reliance upon agricultural and still faced with the challenge of reducing poverty, India has become renowned for its educated and youthful workforce, movement towards broader-based affluence and multi-national corporate expansion (the country's population of 1.45 billion is predicted to China by 2025). Its demographic structure is such that a future workforce for an economy that has recorded 8% pa growth in recent years seems assured.

"A major barrier to growth has been India's infrastructure: in the wrong place for new developments, worn out, or simply insufficient."
A major barrier to growth, however, has been India's infrastructure: in the wrong place for new developments, worn out, or simply insufficient. The government is seeking to address these issues through the country's largest-ever project, the Delhi-Mumbai Industrial Corridor (DMIC), promoted to triple industrial output, quadruple exports from the regions within five years, and create three million new jobs.

The $90 bn project which will start this year will see trial runs of the electric traction between Mumbai and Punea as part of its first phase, and Japanese and German companies are helping out on the project.

STOKING THE ECONOMIC POWERHOUSE

On the south-west coast, Mumbai (formerly Bombay) is India's largest city with a population of around 20 million, handling around 50% of the country's sea cargo. Capital Delhi is 1,400 km (870 miles) to the north east, with approximately 18 million in the metropolitan area. They constitute one side of the so-called Golden Quadrilateral, defined by Delhi, Mumbai, Kolkata (Calcutta) and Chennai (Madras). Rail routes between these cities currently handle over three-quarters of state operator Indian Railways' traffic.

About 1,500 km long and up to 300 km wide, the DMIC will spread from the Delhi National Capital Territory through the states of Uttar Pradesh, Haryana, Rajasthan, Gujarat to Maharashtra, of which Mumbai is capital. There will be special economic zones, new airports, industrial parks, power supplies and roads, plus ports on the Arabian Sea coast. With up to 120 component DMIC projects, a crucial element for incoming and outgoing goods is an entirely new railway, the Dedicated Freight Corridor (Railfan).

Projected for construction from 2008, the Railfan will be 1,483 km (920 miles) long. Maintaining the Indian track gauge of 1,676 mm to allow through running and ease of transfers, the Railfan will however differ significantly in other respects from the rest of national network. Above all, it will be freight-only and designed for faster running. By avoiding traffic conflicts, the current 60-hour Delhi-Mumbai journey is envisaged to fall to 36, and a spin-off is increased capacity for passenger services elsewhere on the network. With older lines used as feeders to the Railfan, a programme to increase the clearances needed by new freight stock will be implemented, for example cutting back station canopies, easing curves and rebuilding bridges.

"Projected for construction from 2008, the Railfan will be 1,483 km (920 miles) long."
The most substantial of several proposed freight-only routes, the Railfan provides the opportunity to increase clearances beyond the limitations of the present network. In spite of a generous 1,676 mm track gauge, the dynamic (or kinematic) envelope on Indian Railways has restricted volumes being moved, increasing the cost base for shipments, not least because of the number of workings required for a given tonnage.

To be diesel-worked and handle double-stack container trains and road trailers, the Railfan will have higher axle loading of at least 30t, representing a 50% increase over present lines. To provide operational flexibility and maintain timings, 1,500m passing loops will be able accommodate trains up to 16,000t.

Transporting goods by rail remains a huge undertaking, vital to the national economy and a profitable activity that, with 70% of overall revenues, helps underpin Indian Railways' passenger operations. The segregation of freight and passenger flows should help improve the ability of Indian Railways to compete with road competition in both markets.

However, its share of the national freight market is in a long decline, falling by about a third over the last decade, a trend the Railfan is intended to help turn around, offering inter-modal services that represent a better and cheaper alternative to road. In spite of a substantial highway building programme, road journey times are long and unpredictable. India's prosperity has encouraged around 16% more cars being registered each year, a conflict of interests for government as it attempts to balance this expression of wealth, the country's expanding automotive sector and increasing already problematic congestion and pollution levels.

"Transporting goods by rail remains a huge undertaking, vital to the national economy."
FUNDING, POLITICS AND OPPORTUNITIES

The DMIC was formally announced in December 2006 by Indian Prime Minister Manmohan Singh on a visit to Japan, with the Tokyo-Osaka industrial corridor being cited as a parallel to the impending developments. An Indo-Japanese task force to further the project has been constituted under a memorandum of understanding between the governments.

The Indian Minister of Commerce and Industry cited the Delhi Metro as an indicator of the success of the countries working together on infrastructure projects. Funding will involve both governments, companies in the Japanese private sector and Indian companies raising funds on Japanese markets.

With protectionism consigned to history, India has become an attractive investment proposition and trading partner for Japan. A stable regional democracy with a huge consumer market, India has natural resources such as iron and copper ores, bauxite and coal that Japan does not possess. Seeking Indian involvement in his 'Cool Earth 50' environmental initiative, Japanese Prime Minister Shinzo Abe said that a dedicated DMIC fund would be created, with low-cost loans being made available for the Railfan.

As the world's second biggest railway network and with the Railfan being one of several projects indicating long-term commitment to renewal and expansion, India is a prime export target. Inherent in making use of the greater capacity potential of the new lines, a new generation of freight rolling stock will be required, similarly with motive power. Possibly in concert with domestic suppliers, for Japanese manufacturing giants such as Hitachi, Kinki Sharyo and Kawasaki Heavy Industries, the Indian market represents a huge target.

"As the world's second biggest railway network and with the Railfan being one of several projects indicating long-term commitment to renewal and expansion, India is a prime export target."
France SNCF signed an agreement in May 2008 to cooperate on rail modernisation and China has demonstrated interest in a long-term plan for high-speed passenger lines. India is therefore clearly a magnet for those with products and services to sell or capital to invest. As home or headquarters for companies such as multi-industry Siemens, Bombardier Transportation and Vossloh, also with national operator Deutsche Bahn expanding activities overseas, the interest of Germany in the freight corridor project is no surprise.

The German Ministry of Transport and Urban Affairs has already discussed the role their country's rail industry may play in the Railfan's development and operation. Their ministerial visit was also to promote the opportunities open to Indian investors in Germany, especially the states of the former East Germany. Since the watershed 1991 economic reforms, over 2,500 joint ventures have been established between the two countries.

Across the DMIC projects, special purpose vehicles (SPVs), a widely used financial structure for public-private ventures, are to be established to handle funding and construction, also to represent the interests of stakeholders, not least the investors contributing up to two thirds of the Railfan capital. Like the Railfan itself, this project management structure will represent a significant change for Indian Railways. In May 2008 an Indian Government minister announced that in spite of recent materials cost increases, the DMIC project remained on course for a 2012 inauguration.

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Tonymercury · Posted: Mon Aug 18, 2008 6:16 am

http://www.thehindubusinessline.com/2008/08/16/stories/2008081651480100.htm
On the track
Railways seeks long term, soft loan
Japan wants the western corridor on electric traction
Railways wanted the corridor on diesel traction

New Delhi, Aug 15 The Indian Railways seems to have agreed to Japanese condition of building the Western freight corridor with electric traction. Earlier, it had decided to build the corridor on diesel traction and the Eastern corridor on electric traction.

The Ministry wants to access long-term soft loan from the Japan Bank for International Cooperation (JBIC) for the project. JBIC extends loans for 30-40 years at 0.2 per cent interest. But the borrower has to spend at least 30 per cent of the loan on Japanese firms.

Container movement

Western corridor, which will primarily serve the export-import container traffic between the Northern hinterland and the Western ports, was envisaged to be on diesel traction to enable double-stack container movement.

World-over, international standard sized double-stack containers are moved only on diesel traction as of now. China moves a mix of higher and lower height containers under electric wire at places.

However, citing environmental requirements of JBIC, Japan International Cooperation Agency (JICA), which is conducting the feasibility study, said funding could be extended only if the Western corridor was electrified.

Thus in July, the Railways conducted the world’s first trial for moving international standard sized double-stack containers in Daitari-Tomka section (Orissa) by placing the overhead electrical contact wire at a higher (than usual) height of 7.45 metres. “Trials have been successful,” said sources.

Even if the Ministry agrees to electrify the Western corridor (Dadri-Jawaharlal Nehru Port), it may not get Japanese loan for the entire stretch. JBIC says it would “first consider” the loan only for the Rewari-Vadodara section of the corridor. The Vadodara-Mumbai section comprises several bridges and accounts for 20-25 per cent of the total cost. The Railway Ministry currently pegs the construction of the entire Western corridor at Rs 23,680 crore.

Funding pattern comprises internal accruals (Rs 6,200 crore), budgetary support (Rs 1,250 crore) and debt (Rs 16,230 crore).

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Tonymercury · Posted: Mon Sep 08, 2008 5:46 am

http://www.domain-b.com/economy/infrastructure/railways/20080905_freight_corridor_route.html

05 September 2008

Mumbai: Work on the first phase of the Western Dedicated Freight Corridor will soon begin with the Railways finalising the alignment of the 917-km-long route with about 20 changes.

The first phase of the project is estimated to cost about Rs25,000 crore, of which 85 per cent of funding costs will come from Japan Bank for International Cooperation.

The western corridor would cover a total distance of 1,426 km from Rewari to JN Port Trust, out of which work will begin between Rewari and Vadodara in the first phase, sources said.

The deviations have been made to avoid areas of heavy settlement and railway junctions between Rewari and Vadodara, they pointed out.

Changes in the route have been made at many places, including Bangugram, Makrena, Mahesana, Palanpur, Marwar and Phurela to avoid heavy displacements, the ministry said.

The Railways will run new generation double stack container trains with a pantograph height of 7.5 metres, which will enable double stack containers on flat wagons on the electrified route, sources said.

The Japan Bank for International Cooperation is currently conducting an environment and social impact study of the first phase project.

The report is likely to be submitted by November and after that a loan agreement will be signed with JBIC, sources said.

The two dedicated freight corridors – western and Eastern - would link the ports of western India and the ports and mines of eastern India to Delhi and Punjab.

The projects will necessitate availability of human resources in large number and increase opportunities for trade and business. It would also call for imparting knowledge-based training and development of educational and training institutions of medical, technical and general education.

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Tonymercury · Posted: Fri Oct 03, 2008 6:07 am

Photograph of catenary test in preparation for new freight lines with double stacking-

http://www.irfca.org/gallery/openline/IRJ.jpg.html

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Tonymercury · Posted: Wed Oct 22, 2008 5:15 am

Japan to Offer $4.4 Billion Loan for India Railway, Nikkei Says
By Hiroshi Suzuki

Oct. 18 (Bloomberg) -- Japan will provide a 450 billion yen ($4.4 billion) loan to fund construction of a freight rail link between New Delhi and Mumbai in India, the Nikkei newspaper reported.

Prime Minister Taro Aso and Indian Prime Minister Manmohan Singh will agree on the loan in a meeting on Oct. 22, Nikkei reported, without saying where it obtained the information.

Japan will disburse the financing, its largest yen loan for a single project, in increments to fund construction through 2015 when the railway is to open, the report said. The project's total cost is estimated at 518 billion yen, it said.

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Tonymercury · Posted: Tue Nov 04, 2008 4:46 am

www.thehindubusinessline.com/2008/10/29/stories/2008102950170700.htm

For the Rewari-Vadodara section of the western freight corridor.

New Delhi, Oct. 28 Japanese firms in the electric locomotive
manufacturing are likely to benefit from the recent $4.6 billion
tied-loan sanctioned by Japanese Government for the dedicated
freight corridor project.

The key Japanese players in the electric loco segment are Toshiba,
Kawasaki and Hitachi.

Since the loan is under the Japan's Special Terms for Economic
Partnership (STEP) scheme, 30 per cent of the amount ($1.38 billion)
will have to be used for Japanese goods and services.

Earlier, the Prime Minister, Dr Manmohan Singh, signed an agreement
with his Japanese counterpart, Mr Taro Aso, for a 450-billion yen
($4.6 billion) loan to build the western freight corridor.

Japan has extended the loan for the Rewari-Vadodara section of the
western freight corridor. This is the single largest overseas
project financed by Japan.

Funds

The loan was extended after the Indian Railways decided to build the
western freight corridor on electric traction. Initially, Railways
had planned to build the western corridor on diesel traction as
railways wanted to move double stack containers on the corridor.

While the exact details of where the 30 per cent of loan proceeds
will be used are yet to be firmed up, a significant portion of the
proceeds will accrue towards electric locomotive procurement.

Currently, the Indian Railways and Japanese Bank for International
Cooperation are finalising the details. When contacted, Mr V.K.
Kaul, Managing Director, Dedicated Freight Corridor Corporation of
India Ltd, told Business Line, "We are at advanced stage of
finalisation. A significant component of the loan would be used for
procuring electric locos from Japanese companies."

Declining to comment on any further specifics such as the number of
locomotives to be procured, Mr Kaul said that the locomotive
supplier will be selected through a competitive bid process among
the Japanese manufacturers.

This procurement will be independent of the electric locomotive
factory being set up by the Indian Railways at Madhepura (Bihar),
where the private sector will have 74 per cent ownership, while
Railways will have 26 per cent ownership.

RFQ
The companies that have technically qualified for the financial
bidding stage for the Madhepura project are Alstom, Bombardier and
Siemens. The project is in the form of a long-term procurement-cum-
maintenance contract of 12,000 horsepower electric locomotives.

Incidentally, a Japanese consortium comprising Mitsubishi, Kawasaki
and Toshiba had also put in its request for qualification
application for this project, but did not qualify.

Tony Bailey
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