DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
Integrated Multi Modal Logistic Hub
at Greater Noida near Dadri
1
PROJECT BACKGROUND
1.1
The Government of India is developing the Delhi-Mumbai Industrial Corridor (DMIC) as a global
manufacturing and investment corridor along the planned Dedicated Freight Corridor (DFC). For
this purpose, a Special Purpose Vehicle (SPV) named the Delhi-Mumbai Industrial Corridor
Development Corporation (DMICDC) has been incorporated for the development of various
programme components of the DMIC project.
1.2
The development of the Delhi Mumbai Industrial Corridor (DMIC) is strongly linked to the
Dedicated Freight Corridor (DFC) that has been conceived as a high capacity, high speed, freight
only rail line by the Ministry of Railways under the Eleventh Five Year Plan of India (2007–2012).
The DFC corridor covers about 2762 route km along two routes - the Eastern Dedicated Freight
Corridor (EDFC) from Ludhiana to Dankuni and the Western Dedicated Freight Corridor (WDFC)
from Jawaharlal Nehru Port, in Navi Mumbai to Dadri in the State of Uttar Pradesh (
Figure
1: Dedicated Freight Corridor Alignment Figure 1). This proposed DFC alignment is envisaged to
be supplemented by significant infrastructure facilities proposed as part of DMIC which together
will enhance the economic environment of the DMIC region and will support DFC in achieving its
targeted potential of enhancing the rail based freight transport in the country.
Figure 1: Dedicated Freight Corridor Alignment
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
1.3
Within the DMIC corridor seven investment regions (nodes) have been identified in the state of
Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra along the
Dedicated Freight Corridor (DFC) (Figure 2). The investment regions (IRs) under DMIC are
proposed to be self-sustained industrial townships with world-class infrastructure, road and rail
connectivity for freight movement to and from ports and logistics hubs, served by domestic/
international air connectivity, reliable power and other quality social infrastructure, and provide a
globally competitive environment conducive for setting up businesses.
Figure 2: DMICDC Investment Region Nodes
1.4
Of the various Investment Regions (IRs) identified under DMIC project one of the key investment
regions is that of the Dadri-Noida-Ghaziabad Investment Region (DNGIR) in Uttar Pradesh (UP)
sub-region of DMIC owing to its proximity to the National Capital of Delhi. This investment
region has been conceived as a model industrial corridor of international standards, with
emphasis on expanding the manufacturing and services base and of developing as a ‘Global
Manufacturing and Trading Hub’. The region is expected to provide a globally competitive
environment conducive for setting up businesses with as self-sustaining industrial townships
and world-class infrastructure, connected by road and rail to ports and logistics hubs, equipped
with reliable power supply and social infrastructure.
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
1.5
A Multimodal Logistics Hub (MMLH) has been proposed at Dadri within the DNGIR in
congruence with DMIC’s objective of creating strong economic base with a globally competitive
environment and state-of-the-art infrastructure facilities. This MMLH has been selected as one
of the Early Bird Project (EBP) in the preparation of Development Plan for Dadri-NoidaGhaziabad Investment Region (DNGIR). A Techno - Economic Feasibility for the project has been
undertaken.
1.6
The proposed MMLH site is located in is located in the Dadri block of Gautambuddh Nagar
district of Uttar Pradesh. This site is strategically located between NH-91 and the Delhi-Howrah
line in close proximity to the point of congruence of the Western and Eastern DFC and also the
proposed freight corridor of Eastern Peripheral Expressway (EPE) (
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
1.8
Figure 3). EPE is a proposed expressway which will bypass the national capital; Delhi on the
eastern side and would provide signal-free connectivity between Ghaziabad and Faridabad, and
Gautam Budh Nagar (Greater Noida) and Palwal
1.9
The MMLH facility will support DFC towards achieving its targeted potential by providing an
integrated logistic facility for efficient storage/transitioning of goods to/from the UP sub-region
of NCR. It also targets to Improve efficiency of operations of existing industries in the region and
the attractiveness of the region as an investment destination for various categories of industries
and also warehousing and logistics operators.
Dadri Noida Ghaziabad Investment RegIon
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
Figure 3: MMLH Site Location
1.10
The proposed site for the MMLH comprises of 438.9 Ha (1,084.5 acres). The land for this facility
is in process of acquisition. The proposed MMLH facility is planned for the estimated traffic for
next 30 years (till FY 2043). Out of the total area of 438.9 Ha the area required to handle the
estimated traffic is calculated as 293.8 Ha (725.9 acres). An additional 17.2 Ha (39.8 acres) is
required for the Railway Siding including a Rail over Bridge (ROB) and an area of 145.1 ha
(358.56 acres) is earmarked for future expansion. The State has assured to provide land
required for the project and have requested DMICDC to move ahead with the project. For the
project, the concept master plan and the financial assessment is based on the proposed facility
for 293.8 Ha.
1.11
The proposed site is not directly connected to the Western DFC line and hence a spur line will
have to be planned that connects the site to the proposed Western DFC yard. The total length
of the spur as taken from the DFC main line to the MMLH site is 4.306 km which comprises of a
Rail-over-bridge going above the Delhi-Howrah line.
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
2
2.1
PROJECT OBJECTIVES
The development of MMLH at Dadri has been planned to serve the freight movement to and
from the industries in the UP sub-region of NCR alongside the industrial region in DNGIR. The
objectives of developing this facility are:
i.
ii.
iii.
3
3.1
To improve efficiency of operations of existing industries in the region as well as to improve
the attractiveness of the region as an investment destination for various categories of
industries and also warehousing and logistics operators;
To tap the potential traffic along both the Western and the Eastern Dedicated Freight
corridors that are bound to revolutionise rail-based freight movement with hi-end
operational features of faster dedicated and high-capacity freight trains. The MMLH targets
to serve as a world-class nodal facility that provides for efficient storage/transitioning of
goods to/from DFC, thereby catering to the escalated freight traffic envisaged to be
generated by DFC;
To offer a one-stop destination to freight companies and customers. The facility will go
beyond just standard container handling activities and will provide various value added
services.
PROJECT COMPONENTS
The project encompasses development of an inland logistics facility that caters to the logistics
streams to/from the Western DFC and the surrounding road network. The facility has potential
to cater to Eastern DFC as well for container traffic. As the current forecasts for container traffic
on the Eastern DFC are low it has not been considered in the analysis. The key components of
the project include the following:
a) Trunk level infrastructure external to the site, which includes Railways siding that, shall
connect the project site to the western DFC yard including a Rail over Bridge (ROB) on this
external rail link, external connectivity roads, and a Power sub-station within the facility.
b) Railway tracks within the site to serve as the loading/unloading terminal stations;
c) Container stacking area equipped with tractor trailers/gantries/forklifts etc;
d) Container freight stations hosting stuffing/de-stuffing/packaging and inspection facilities
e) Container and Equipment maintenance areas;
f) Bonded and General warehouses;
g) Dedicated space for value added service provision that could encompass
packaging/labelling/assembling of semi-finished goods/products within the facility prior to
transportation
3.2
The MMLH will provide facilities for large, medium and small enterprises which will be
benefitted from the proximity to the logistics hub. The hub would also house a truck terminal
with support infrastructure for trucking industry like dedicated parking bays, lodging facilities,
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
rest rooms, workshops etc. The site will have provision for commercial office/retail space to
cater to businesses like those of freight forwarders, operators, third-party logistics (3PL)
companies, fourth-party logistics (4PL) companies, etc. Other supplementary facilities at the site
comprise of staff housing facilities, administration building, utility areas and greens.
3.3
For this project, the concept master plan is based on the proposed facility for 293.8 Ha. The
master planning and for the remaining area will be done in future based on the envisaged
requirement and the prevailing market dynamics. It is seen that in such strategic projects
provision of land for future expansion is critical to render the facility expandable for future
demand. Such practice has been observed in case of development of airports as well as railway
stations.
3.4
The area and land use under various activities is summarised in Table 1 & Figure 4
Table 1: Land Use Summary for MMLH 1
Land use
Transportation
Logistics
Roads
EXIM Zone
Domestic Zone
Container Yard
Industrial Facilities – Domestic zone
Support Facilities – Domestic Zone
Maintenance Facilities
Utilities
Greens
Total
Area reserved for Future Expansion
Area (Ha)
48.8
33.0
24.8
114.0
18.9
18.9
11.9
7.1
16.4
293.8
145.1
Percentage Share
16.6
11.2
8.4
38.8
6.4
6.4
4.0
2.4
5.6
100.0
100.0
1
The table presents land use break up for the site of 293.8 Ha. In addition to 293.8 Ha additional land of 17.2Ha has been identified for the
Railway Spur from Western DFC.
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
Figure 4: Concept Master Plan for MMLH
Dadri Noida Ghaziabad Investment RegIon
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
TRAFFIC ESTIMATED TO BE HANDLED AT MMLH
4
The traffic demand estimates for the project are based on the commodities and freight charact eristics of the industrial catchment immediately outside the facility. The demand has been
estimated separately under four categories :
4.1
a)
b)
c)
d)
DFC Rail Based Container Traffic from Project Catchment (other than DNGIR);
Additional Shift of Container traffic from Road to Rail due to DFC;
Additional Road Based Demand due to Eastern Peripheral Expressway;
Freight Traffic due to Industries in DNGIR.
Traffic likely to be generated in equivalent Twenty-foot equivalent units (TEUs) from the above
potential streams is summarized in the Table 2. The proposed MMLH is expected to handle 0.32
million TEUs in 2016-17 which will be in the opening year of the facility and shall increase in
subsequent years as per the details given below.
4.2
Table 2: Summary of Traffic Estimate for MMLH Dadri
S. No
Traffic Streams
2016-17
DFC Rail Based Container
1
Traffic from Project Catchment
Additional Shift of Container
2
traffic due to DFC
3
Additional Demand due to EPE
4
Traffic due to DNGIR
4a Rail based Traffic
4b Road based Traffic
Sub-Total
Total
Million TEUs per year
2021-22
2026-27
2031-32
0.14
0.23
0.44
0.47
0.01
0.02
0.04
0.05
0.03
0.04
0.05
0.06
0.097
0.042
0.14
0.32
0.160
0.070
0.23
0.52
0.233
0.102
0.34
0.87
0.330
0.140
0.47
1.05
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
5
5.1
6
6.1
MAJOR COMMODITIES
The facility has been developed to primarily cater to containerized traffic on the DFC that
comprises of automotive, manufacturing, textiles, retail products, consumer goods, agricultural
products and commodities. In addition to these the facility would cater to the road based traffic
coming from the Eastern Peripheral Expressway comprising of commodities like heavy
machinery / auto parts, industrial material, plastics and polymers, textile fabric, food grains /
rice etc.
FACILITY PLANNING FOR MMLH
Area and Infrastructure assessment for the various facilities on the MMLH has been carried out
considering a set of parameters. These were based upon real time scenarios by visiting various
similar facilities, performing literature review and undertaking stakeholder consultations.
Table 3: Area and Infrastructure Assessment for MMLH at Dadri for Key facilities
Summary
2016-17
2021-22
2026-27
2031-32
Total Traffic ( TEUs/Day)
Total number of trains (single
stack)2
Total number of tracks
Total Container Yard Area (Acres)
Total Empty Yard Area (Acres)
Total CFS Area (Acres)
Total Warehouse Area (Acres)
Total Truck Parking Area (Acres)
Total AGS/Access Lanes
Total No. of RTG's
887
1415
2378
2877
5
4
8.65
2.75
9.11
11.76
4.99
6
4
8
5
13.92
4.42
14.59
18.87
7.96
6
6
13
8
23.81
7.56
24.72
32.13
13.52
12
8
16
9
28.73
9.12
29.87
38.79
16.31
14
8
2
Single stack train capacity is 90 TEUs against 180 TEUs for double stack. Depending on the DFC scheme if the facility receives
double stack trains, the number of trains can reduce. Technically the facility has been designed for both types of trains.
Dadri Noida Ghaziabad Investment RegIon
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
7
PROJECT COSTS
7.1
Overall cost for the project has been assessed to be around 3540.8 Crore INR, of which an
estimated 783.5 Crore INR is to be borne by the JVC under the implementation structure
described in the subsequent section. This cost would include land costs and other external
infrastructures like railway line from DFC yard, ROB, power and road infrastructure. Remaining
2757.3 Crore INR will be funded by private sector.
Table 4: Project Costs
Particulars
Land costs
Railway
Infrastructure
Water Supply
Sewerage systems
Power
Roads and Parking
Green belt
Building costs
Equipment Costs
2013-14 to
2016-17
Phase 1
644.8
2017-18 to
2019-20
Phase 2
5.8
2022-23 to
2024-25
Phase 3
5.3
2027-28 to
2029-30
Phase 4
6.4
Total
662.3
187.5
6.7
3.8
41.1
236.8
10.7
459.9
146.3
1,737.5
42.4
3.2
2.7
5.5
45.7
2.7
487.4
131.8
727.3
113.0
0.6
0.6
2.8
60.7
0.0
264.5
134.1
581.7
64.7
1.1
1.8
2.9
74.2
0.0
218.5
124.7
494.4
407.7
11.7
8.9
52.3
417.4
13.3
1,430.3
536.9
3,540.9
8
PROJECT IMPLEMENTATION STRUCTURE
8.1
The project is proposed for execution in two stages:
i.
ii.
Stage 1: The Government of Uttar Pradesh and the DMIC Trust will form a ‘Joint Venture
Company’ (JVC formed as an SPV for the project), to provide land and the initial trunk
infrastructure.
Stage 2: Engagement of Private developers by the ‘JVC’ to execute the project on PPP basis
Dadri Noida Ghaziabad Investment RegIon
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
Figure 5: Project Implementation structure
Dadri Noida Ghaziabad Investment RegIon
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
8.2
Stage 1:
8.2.1
Government of Uttar Pradesh and DMIC Trust will form a ‘JVC’ (SPV formed for the project), to
provide for land and the initial trunk infrastructure.
8.2.2
It is envisaged that the shareholding of both the equity holders of the JVC would be 50% each.
The JVC will set up initial trunk infrastructure on the site so as to make the site attractive for
private player participation, as the private participant will then need to incur only the capital
cost required for the proposed project facilities. This in-turn will improve the financial viability of
the project for the private participant, and enhances the marketability of the project as
government body is better suited to coordinate with other departments.
8.2.3
Key action task required at this stage is the setting up of trunk level infrastructure. It is proposed
that the Trunk Level Infrastructure be executed as a ‘Design-Build’ (DB) contract.
8.2.4
The role of JVC is critical for the successful execution of the project as it helps to bring in coordination with various government agencies.
8.3
Stage 2:
8.3.1
The JVC will invite a master developer which may be a single entity or a consortium
of
companies on a PPP mode through a transparent bidding process. A Transaction Advisor shall be
appointed by the JVC to execute this process. The PPP concessionaire/master developer will be
responsible to build internal infrastructure, logistics facility, and commercial area.
8.3.2
The master developer will either execute the project itself, or will further invite multiple
concessionaires to execute the project. In case the JVC is unable to find single developer due to
prevailing market conditions, the JVC can invite multiple private concessionaires to execute the
project components with relevant, complementary and comprehensive capabilities.
8.3.3
The stage is proposed to be executed as a ‘Design, Build, Finance, Operate, and Transfer
(DBFOT)’ contract. The private concessionaires will be responsible for designing, building, and
financing the project, operating the project for a specified duration, and transferring the project
back to ‘JVC’ after the specified period of concession, i.e. 30 years in this case. The PPP
concessionaires will develop the mandatory requirements of the project based on defined
technical specifications.
8.3.4
It is proposed that the PPP concessionaries be selected on a hybrid model, wherein the PPP
Concessionaire has to bid for the percentage revenue share, and will have to pay a preascertained guaranteed lease rental or revenue share, whichever is higher. In addition, the PPP
Concessionaire shall give three times the minimum gauranteed annual rental as an upfront
premium. The PPP Concessionaire who bids for the maximum revenue share will be selected.
Dadri Noida Ghaziabad Investment RegIon
Techno-Economic Feasibility Study
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
The method enhances the marketability of the project for private participation, and provide
avenues to capture any unprecedented upside. However, reasonable checks will be
implemented to ensure that there is no under reporting of revenues.
9
ECONOMIC BENEFITS
9.1
The project is likely to generate series of unquantified economic benefits as direct benefits and
through a multiplier effect.
These benefits are summarized as under:
a) Such a large scale worker-oriented facility will generate significant employment for various
operations. This in turn will have a multiplier effect on the economy, and will also generate
significant cash flows for the government in terms of direct and indirect taxes.
b) The facility shall provide adequate facility for consolidation of goods, and end finishing of
goods within the MMLH campus,small and medium enterprises, offices and staff housing,
trucker amenities within the campus thereby reducing the road traffic through integration
of services and hence contributing to the traffic and pollution reduction.
c) By supplementing the industries in the region through the provision of a logistics facility
nearby, the facility will positively impact the growth of these industries that shall have a
multiplier effect on the economy of the region. In addition, it will also have a positive impact
on the industrial output.
d) By supplementing the DFC corridor with adequate nodal infrastructure, the MMLH shall
contribute to one of DFC’s objective of acheiving a shift in some of the road based freight
towards rail thereby improving the share of rail based freight and the overall logistics
improvement targeted by the DFC.
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Techno-Economic Feasibility Study
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DELHI-MUMBAI INDUSTRIAL CORRIDOR
DEVELOPMENT CORPORATION LIMITED
In association with
10
STATUS OF PROJECT
10.1
The Techno Economic Feasibility Study for the project has been carried out by M/s Halcrow
Consortium (comprising of Halcrow Group Ltd., Halcrow Consulting India Pvt. Ltd., Synovate
India Pvt. Ltd. and Knight Frank India Pvt. Ltd.).
10.2
The State has assured to provide land required for the project and have requested DMICDC to
move ahead with the project.
10.3
The project and its components will need approvals from Dedicated Freight Corridor
Corporation of India Ltd., Indian Railways, Environmental agencies and Greater Noida Industrial
Development Authority.
10.4
The draft of the Shareholders Agreement (SHA) has been sent to State Government.
Dadri Noida Ghaziabad Investment RegIon
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