Presentation on
Coal Market in India 2012
2th Annual Conference
10.07.2012
P N Shukla
Director
(Operations and Business Development)
DFCCIL, New Delhi
1
DFCC PROJECT
AN OVERVIEW
Scope of Presentation
 Transport Sector : Present Scenario
 Indian Railways :
Overview
Areas of Concern
Possible Solutions
 Dedicated Freight Corridor
Overview
Traffic Projections
Funding Arrangements
Opportunities
DMIC – An Added Feature
Impact on Urbanization
Social & Environmental Issues on DFC
Carbon Footprints of Dedicated Freight Corridor
Transport Sector – Present Scenario
• ONE OF THE LARGEST IN THE WORLD
• SERVES A LAND MASS OF 3.3 MILLION M2 AND
POPULATION OF OVER ONE BILLION
• ENORMOUS GROWTH OF TRANSPORT SECTOR IN
THE LAST 50 YEARS
– VOLUME OF RAILWAY FREIGHT INCREASED TEN FOLDS.
– LENGTH OF SURFACED ROADS INCREASED NINE FOLDS
– TONNAGE HANDLED BY INDIA’S MAJOR/MINOR PORTS
INCREASED SIXTEEN FOLDS
– AIR FREIGHT TONNAGE INCREASED 30 FOLDS
Source:- India Vision 2020
“Clogged Rail Lines Slow India’s Development”
New York Times
June 15, 2010
Distance
Singapore – Mumbai Port
Mumbai Port - Delhi
2400 Nautical Miles
870 Miles
Travel Time
(Freight)
4 – 5 days
More than
1 Weeks
Indian Railways – An Overview
Freight Traffic (Million Tons)
1200
1000
921.7
969.8
800
600
473.5
400
318.4
200
73.5
119.8
167.9
195.9
0
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 2011-12
Indian Railways – An Overview
FREIGHT TRAFFIC (MILLION TONNES) 1950-51 to 2000-01
500
473.5
400
300
200
AN INCREASE OF 400.3 MT
OVER 50 YEARS
100
73.2
0
1950-51
FREIGHT TRAFFIC (MILLION TONNES)
2000-01
FREIGHT TRAFFIC (MILLION TONNES) 2000-01 to 2011-12
1200
1000
969.8
800
600
400
473.5
200
0
2000-01
AN INCREASE OF 497 MT OVER
11 YEARS
2011-12
Indian Railways – An Overview
CONTAINER
(EXIM + DOM),
37.6, 4%
Other
Goods,
74.4, 8%
TOTAL LOADING OF FREIGHT IN 2011-12= 969.8 MT
Commodity wise Loading – 2011-12
POL, 41.1, 4%
Fertilizers,
48.3, 5%
Coal,
420.4, 46%
Food Grains,
45.6, 5%
Cement, 107.6,
11%
Iron Ore,
118.5, 13%
Pig Iron and
Finished Steel,
32.8, 4%
Raw material for
Steel Plants, 13.3,
1%
Railways Vision 2020
•
•
•
•
•
•
•
•
•
Enhance gross revenue from 1.2% to 3% of GDP by 2020
Annual growth of 10% for next ten years
Network expansion by 25,000 Kms. by 2020
Segregation of passenger and freight lines on highdensity network routes
Maximum speed of passenger trains to be raised from
110 / 130 Kmph at present to 160 / 200 Kmph on
segregated routes by 2020
Increase the speed of freight trains from 75 to 100 Kmph
Gauge conversion programme to be completed
Electrification of 33,000 Kms. of routes
Making railway operations free of accidents
Traffic Projections On DFC Route On Eastern Corridor
COMMODITY (MT)
(UP+DN)
2011-12
2016-17
2021-22
Container
1.40
2.18
3.28
COAL
55.02
76.80
97.61
Foodgrains
1.75
1.92
2.12
Fertilizers
2.88
3.41
4.01
Cement
4.93
7.28
10.54
Salt
0.52
0.57
0.62
I&S
6.72
9.08
12.78
POL
1.53
1.94
2.40
Misc.
5.84
7.10
8.65
Empties
0.00
0.00
0.00
RORO
0.00
8.40
11.22
TOTAL
80.59
118.68
153.23
Source: Business Plan of DFC
CAPACITY BUILDING IN THE RAILWAYS
ONLY TWO POSSIBILITIES _ _ _ _ _
UPGRADING THE EXISTING NETWORK.
CREATION OF A NEW DEDICATED FREIGHT
CORRIDOR.
GOLDEN QUADRILATERAL & ITS DIAGONALS ARE BUSIEST ROUTES OF IR
DELHI
KOLKATTA
•High Density Corridor
(Golden Quadrilateral +
MUMBAI
Diagonals) 16% of route
Km carries 52% of
CHENNAI
passenger & 58 % of
freight
CONCEPT PLAN OF
DEDICATED FREIGHT CORRIDOR NETWORK
LUDHIANA
LUDHIANA
DELHI
KOLKATA
MUMBAI
MUMBAI
VASCO
VIJAYAWADA
Sanctioned projects
Unsanctioned projects
CHENNAI
13
Ludhiana
Dankuni
No
1
2
3
4
6
7
8
9
10
11
12
13
14
Route
Bondamunda – Chakradharpur – Sini - Chandil – Muri - Barkakana
Tatanagar - Chandil
Gomoh - Patratu – Barkakana - Garwa Road - Sonnagar
Chandil – Bhojudih – Mohuda - Gomoh
Aligarh - Harduaganj
Kanpur - Paricha
Allahabad - Unchahar
Allahabad – Naini - Katni
Ludhiana - Amritsar
Ambala - Chandigarh
Rajpura – Dhuri – Bhatinda (Lehra Mohabbat)
Sirhind – Rupnagar - Nangal Dam
Dadri – Ghaziabad - Delhi – Panipat
TOTAL
Length
in km
292
36
414
180
18
198
86
276
127
46
173
104
122
2072
PROPOSED FREIGHT CORRIDOR (WESTERN)
LUDHIANA
LEGEND :MAIN ROUTE
FEEDER ROUTE
HISSAR
DELHI
Rewari
REWARI
JAIPUR
PHULERA
JODHPUR
LUNI
PALANPUR
GANDHI DHAM
Mundra
Po rt
OKHA
MARWAR JN.
MEHSANA
KANDLA
Po rt
AHMEDABAD
VIRAM-GAM
RAJKOT
VADODARA
Hazira
PIPAVAV
SURAT
VALSAD
VASAI ROAD
MUMBAI
DIVA
Thal
J N PORT
TUNDLA
AGRA
Route
1
2
3
4
5
6
7
8
9
10
11
Pipavav - Surendra Nagar - Viramgram - Mehsana
Kandlaport - Gandhidham - Palanpur
Mundra Port - Gandhidham
Okha - Rajkot - Surendra Nagar
Jodhpur - Luni - Marwar Jn
Mumbai Port - Wadala - Kurla - Diva - Vasai Road
Trombay - Kurla
Thal - Panvel - Diva
Hazira - Surat
Ludhiana - Hissar - Rewari
Tundla - Agra - Jaipur - Phulera
TOTAL
Length
(km)
395
330
65
370
80
77
7
88
40
355
275
2082
State-wise Kms. (approx.)
State
West-Bengal
Jharkhand
Bihar
Gujarat
Haryana
Maharashtra
Punjab
Rajasthan
U.P.
Kms.
221
319
93
588
274
166
102
553
1002
Total
3318
Length & Cost of Corridors
Basic
CORRIDOR
Route Length Const. Cost
(Km)
(Cr.)
Eastern CorridorDadri – Khurja - Sonnagar – Dankuni
(D/L) 1422 Kms
Khurja - Ludhiana
(S/L) 413 Kms
1835
23605
1483
22956
3318
46561*
Western Corridorfrom JNPT (Near Mumbai) to Dadri via Palanpur
– Ajmer – Phulera – Ringus – Rewari
Total
* Cost at 2009 prices
Completion Cost as Per Business Plan
• Eastern Corridor
• Western Corridor
Rs 39127 Crs
Rs 38503 Crs
TOTAL
Rs 77630 Crs
The additional costs are on account of
inflation and soft costs such as Insurance, Taxes,
Contingency and Interest during construction.
 The Project Completion is 31/3/2017.
FUNDING ARRANGEMENT
 Eastern Corridor :
Mughalsarai – Khurja 732 Kms (D/L)
Khurja – Ludhiana
413 Kms (S/L)
Sonnagar-Mughalsarai 122 Kms (D/L)
Sonnagar-Dankuni
534 Kms (D/L)
World Bank
World Bank
GOI
On PPP Mode
 Western Corridor :
Rewari – Vadodara
Dadri-Rewari &
Vadodara - JNPT
920 Kms (D/L)
605 Kms (D/L)
JICA (Ph.I)
JICA (Ph.II)
Importance of DFCC
• Dedicated Freight Corridor enlisted as one of the iconic/
Flagship project of India.
• The Progress of DFCC is being monitored by:
 Cabinet Committee on Infrastructure (CCI) chaired by PM,
High Power Committee under the Chairmanship of Principal
Secy. to PM, Standing High Power Committee of Railway
Board, Committee of Additional member & Advisor of
Railway Board
 Considering its importance of the Project MOR has been
asked to submit monthly progress report to Planning
Commission.
Traffic Growth with DFC on Busy Sectors
of EDFC & WDFC
(Number of Trains per day both ways)
2016-17
2021-22
2026-27
2031-32
Sonnagar - Mughalsarai
155
183
214
244
Mughalsarai – Allahabad - Khurja
124
149
180
226
2016-17
2021-22
2026-27
2031-32
Palanpur - Rewari
181
252
321
377
JNPT - Palanpur
125
172
263
307
Eastern Corridor
Western Corridor
Traffic nearly doubles after 15 years
DFCCIL & ITS MANDATE
BRIEF PROFILE OF THE COMPANY
• DFCCIL registered as Schedule ‘A’ Company
under the Companies Act 1956 on 30th Oct,
2006
•
•
•
•
•
100% Ownership of GOI-to begin with.
Authorized Capital
4000 Crores.
Paid Up Capital
1165 Crores.
Debt : Equity
2: 1
100% Equity of Ministry of Railways.
Mandate for DFC as per Cabinet Decision
• DFC project to be implemented through SPV.
• SPV entrusted with planning, construction, maintenance and
operation of DFC infrastructure.
• SPV to be independent in decision making and should be able to
function with market focus and business orientation during
Construction maintenance & operation.
• SPV to have status of railway administration under Indian
Railways Act, 1989.
• The relationship with Railways and DFCC to be governed by
Concession Agreement.
• All contracts would be based on Design & Build lump sum with
time bound completion.
MILESTONE ACHIEVED
• April 2005
MR announced in the Parliament the need and planning for
the project.
• August 2005 PM announced development of DFC in his I-Day Speech.
• August 2006 CCEA approved formation of a SPV (DFCCIL) for execution of
the project.
• October 2006 DFCCIL incorporated as a Company.
• February 2007 CCEA approved the PETS reports by RITES at a cost of 28000
crores.
• February 2008 MR’s commitment in Parliament to start work on Both
Corridors during 2008-09.
• March 2010
JICA Loan Agreement signed for Western Corridor.
• March 2011
World Bank loan for Phase-I Eastern Corridor finalized
• May 2011
WB sanctioned loan for Khurja – Kanpur
• March 2012
Kanpur-Khurja bids opened. Contract likely to be awarded
by Sept 12.
27
Basic Design Features
Indian Railway
DFC Routes
Moving Dimensions
Height
5.1m
7.1 m
4.265 m
Western Corridor
Eastern Corridor
Width
3200 mm
3660 mm
Container Stack
Train Length
Western Corridor
700 m
Eastern Corridor
700/ 1500 m
Train Load
4,000 Ton
15,000 Ton
28
Basic Design Features (Contd)
• Heavier Axle Loads
Axle Load
Indian Railway
DFC Routes
32.5t/25 t
22.9 t / 25 t
Track Loading
density
8.67 t/m
Maximum
Speed
Grade
75 Kmph
Upto 1 in 100
12 t/m
100 Kmph
1 in 200
29
Operating Aspects of DFCC
• DFCC to manage train operation on DFC.
• DFCC to have stations and control centres.
• There will be Junction points at every 100-150 kms for
interchange of traffic between DFC and IR.
• The rolling stock to be provided by IR.
• Maintenance facilities for rolling stock to be provided
by IR.
• 896 Level Crossings on Eastern and Western Corridors
to be replaced with ROBs/ROB’s
30
Timelines for DFC Construction
 Eastern Corridor
Commissioning of Eastern Corridor
31 December 2016
 Western Corridor
Phase – I
Commissioning of Rewari – Vadodara
Phase – II
Full Commissioning of J.N. Port - Dadri
31st December 2016
31st March 2017
31
Future of Coal Transportation by DFC








Induction of 25T axle load wagon.
Change in CC of trains from 4000 T to 6500 T.
Introduction of bottom discharge wagons.
Time guarantee for train movement.
Reduction in transit time to half.
Economy & Reliability in coal movement.
Unit cost of transport in DFC to come down by 40 %.
Power & Coal companies may have freedom of
special wagons.
 Transit Guraantee Agreement with Power & Coal
companies for coal movement.
Carbon Footprints of Dedicated Freight Corridor
Cumulative GHG emissions over 30 years
Eastern Corridor
Western Corridor
(1975 Billion Tonne-Km)
(3241 Billion Tonne-Km)
466
116
- 2.5 x
-6x
47.5
77
Source: Report on ‘Green House Gas Emission Reduction Analysis for DFC’ by Ernst & Young
FUTURE 4 CORRIDORS
• MR announced study of other four corridors in
her Budget Speech in February 2010.
East – West Corridor (Kolkata–Mumbai)
2000 Kms.
North-South Corridor (Delhi-Chennai)
2173 Kms.
East Coast Corridor (Kharagpur-Vijayawada) 1100 Kms.
Southern Corridor (Chennai-Goa)
890 Kms.
DFCCIL has assigned this study to RITES which will take
about 2 years.
DELHI – MUMBAI INDUSTRIAL CORRIDOR (DMIC) –
AN ADDED ADVANTAGE FOR DFC
Haryana
Haryana
Rajasthan
Dadri
Uttar
Pradesh
• Area under Project Influence is 14% and
population is 17% of the Country
Gujarat
Madhya
Pradesh
Maharashtra
J.N.Port
DFC Alignment
End Terminal
• Focus is on ensuring high impact
developments within 150km distance on
either side of alignment of DFC
• Total Population in the Project Influence
Area : 178Mn
• Total Workers in the Project Influence
Area: 70.56Mn
As per Census-2001