COAL
TRANSPORTATION
ON
INDIAN RAILWAYS
1
FREIGHT BUSINESS

TRANSPORTATION
IS
A
DERIVED
DEMAND & DEPENDS UPON THE
GROWTH OF ECONOMY.

RAILWAY FREIGHT BUSINESS LARGELY
DEPENDENT UPON THE PERFORMANCE
OF CORE SECTOR.
2
HISTORICAL GROWTH
YEAR
LOADING IN MT
1950-51
73.2
2001-02
492.5
%AGE GROWTH
GDP GROWTH (%)/
CORE SECTOR (%)
3.8
2.0 %
X TH PLAN
02-03
518.74
5.33
4.3
03-04
557.39
7.45
8.5
04-05
602.78
8.14
7.5
05-06
667.20
10.69
9.0
06-07
728.77
9.23
9.6
07-08
794.21
8.98
9.0/ 5.2
08-09
833.31
4.92
6.8/ 2.8
09-10
887.99
6.56
8.0/ 6.6
10-11
921.51
3.77
8.4/ 6.6
11-12
969.78
5.24
6.5/ 4.4
12-13
1009.83
4.27
5.0/2.6
XI TH PLAN
3
JOURNEY TO THE BILLION CLUB






Indian Railways crossed the 1000 MT mark in
originating freight loading in 2012-13.
China, USA & Russia are the only other countries
having Railways loading more than 1 Billion MT/year.
The freight loading in 1950-51 was 73 MT.
It crossed 500 MT in 2002-03.
Another 500 MT added in 10 years-Avg 50 MT added
per year in the last decade.
How fast will we be adding the next 500 MT ?
4
STRATEGIES ADOPTED TO ACHIEVE
HIGH GROWTH

Enhanced Axle Load operations from 20.32
to 22.9

25 T on mineral routes.

Extend to all routes.

Develop wagons for 25 T.

Targeted investments on low cost but high
return traffic facility works incl terminals.

HEAVIER, FASTER, LONGER—MANTRA FOR
XIITH PLAN
LOADING / IIP CORE SECTOR
12
10
%age growth in Loading
8
6
4
%age Growth in IIP (Core Sector)
2
0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
CONTRIBUTION OF FREIGHT BUSINESS TO IR EARNINGS
Sundries
3%
Passenger
27%
Goods
67%
Other
Coaching
3%
PERFORMANCE 2012-13
Commodity
Tonnes
Originating
(in MT)
NTKMs (in
millions)
Average Lead
(in km)
Earnings
( in cr.)
Coal
496.37
271154
546
36792.91
RMSP
15.58
9814
630
1387.25
Iron & Steel
35.28
33702
955
5181.63
Iron Ore
111.41
38149
342
7407.75
Cement
105.82
60036
567
8233.37
Foodgrains
48.28
62870
1302
6791.52
Fertilizers
45.92
40221
876
4732.16
POL
41.62
26770
643
4725.62
Containers
41.07
47969
1168
3827.48
other Goods
68.48
51135
747
5711.37
1009.83
641820
636
84791.06
4.13
0.32
-3.64
22.95
Total
% variation (y-o-y)
8
COMMODITY – LOADING SHARE
%age Share of Loading
Container
4%
Fertilizer
5%
Foodgrain
5%
POL
4%
Other
7%
Coal
49%
Cement
10%
Iron Ore
11%
Iron & Steel
3%
RMSP
2%
COMMODITY-EARNING SHARE
%age Share of Earning
Container
POL
2%
6%
Fertilizer
4%
Foodgrain
5%
Other
7%
Coal
43%
Cement
6%
Iron Ore
8%
Iron & Steel
10%
RMSP
9%
LOADING ON IR (STOCK-WISE)
CONT
10%
BTPN
5%
Other
7%
BOXN
41%
BOBR
10%
BOST
2%
BCN
23%
Steel Rake
2%
11
LOADING ON IR (STOCK-WISE)- 2012-13
RAKES/DAY
Stock
Coal
BOXN
245.2
52.9
1.9
2.3
0.6
74.8
BCN
RMSP
+ Iron
Ore
CEMT
FG
44.7
Fert
POL
Cont
2.1
BOBR
86.5
Others
Clinker
15
TOTAL
1.2
7.1
24.8
41.9
1.2
27.4
192.9
5.5
7.3
12.8
9.7
2.1
STEEL
RAKE
BOST
I&S
0.1
1.2
348.1
15.2
86.5
CONT
85
BTPN
85
40.3
OTHER
0.3
23.6
2.1
0.3
TOTAL
336.4
77.2
78.8
45
5.7
43.1
46
85
0.2
40.5
14.2
15.2
61.4
37.7
77
16.2
842.4
COMMODITY-WISE PROJECTIONS (XII PLAN)
2011-12
2012-13
2016 -17
(Projection)
CAGR
2012-13 TO 2016-17
(Reqd)
Total Coal
455.8
496.4
700
8.9
RMSP
14.5
15.6
17
2.2
Total Iron & Steel
34.9
35.3
59
13.7
Total Iron Ore
104.7
111.4
151
7.9
Cement
107.7
105.8
161
11.1
Foodgrains
46.4
48.3
60
5.6
Fertilizers
52.7
45.9
56
5.1
POL
39.8
41.6
44
1.4
38
41
80
18.2
Balance other
goods
74.3
68.4
85
5.6
Total
969.8
1009.8
1413
8.8
Commodity
Total Container
SHARE OF COMMODITIES BY FIRST YEAR OF
XII PLAN AND BY TERMINAL YEAR OF XII PLAN
Commodity
2012-13 (%)
2016-17 (%)
Total Coal
49.2
49.54
RMSP
1.5
1.20
Total Iron & Steel
3.5
4.18
Total Iron Ore
11
10.69
Cement
10.5
11.39
Foodgrains
4.8
4.25
Fertilizers
4.5
3.96
POL
4.1
3.11
4
5.66
6.8
6.02
Total Container
Balance other goods
COAL
PERFORMANCE
&
PROSPECTS
COAL & LIGNITE FIELDS
16
COAL TRAFFIC ( IN MT)
Year
Prod.
Imports Total
Avail.
Loading Rail Coby Rail efficient
(%)
2007-08 491.01
54.04
545.05
338.30
62
2008-09 525.2
60.89
586.09
369.41
63
2009-10 566.1
75.61
641.71
396.10
62
2010-11 570.4
70.41
640.81
420.21
66
2011-12 583.1
101.29
684.39
455.80
67
2012-13 595*
125*
720
496.37
69
17
COAL – LOADING (IN MT) (2007-08 TO 2012-13)
350
315.38
300.15
300
285.34
271.45
261.58
238.66
250
Steel Plants
200
Washeries
40.07
44.21
131.63
39.25
89.15
35.48
83.21
67.02
50
63.24
100
107.14
150
46.69
TPS
Others
48.06
1.3
1.62
1.51
1.37
1.56
0.92
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
18
COAL O-D FLOWS
North India
CCL / BCCL
Gujarat
NCL
ECL
CIC
Korba
IB
WCL
M
SCCL
NTPC
K
AP
Chennai
TLHR
EVACUATION PLAN FOR IMPORTED COAL
FOR TPS
RAJ/PUN/
HARYANA/
UP
NTPCRSTP/VSTP/
SSTP/TD/
UCR/DER/
KRBA/BIA
BADARPUR
WB/DVC/FKK/KLG
KRPH+KPKD
HLZ
GUJ
TLHR
MAHA
DHAMRA
RDM+
PRLI
MUMBAI
PRDP
SMDR
VZP
KPCL
KAKINADA
KRISHNA
CHENNAI
Identification of Growth Areas
Coal Company
2012-13
2016-17
Increase in
Production
ECL
34
41
7
BCCL
31
36
5
CCL
48
83
35
NCL
70
90
12
WCL
42
45
3
SECL
118
130
12
MCL
108
140
32
NEC
1
1
0
452
566
94
TOTAL CIL
Coal-Challenges in XII Plan

Fast development in the Power sector. Need to move more coal during the
XII Plan.

Additional capacity =82325 MW of coal based power generation.

9320 MW =pithead based and 10660 MW =shore based.

Balance 62345 MW will require transportation of coal through Indian Railways.

Power sector analysis gives total coal movement=740 MT by 2016-17.

Production analysis gives total coal movement =700 MT by 2016-17.

Increased movement from Captive mines and Port.

Policies to promote connectivity.

Development of infrastructure in the form of track capacities on major
coal bearing routes.

Development of last mile connectivity to coal blocks and newly developed
mines.
RESOURCES FOR FREIGHT TRANSPORT
•
Wagons- IR owned general purpose and Special
wagons, Private Customer/Container/SFTO, Jointly
Owned.
•
Locomotives – Diesel and Electric
•
Network Capacity.
•
Terminals- Public Goodsheds, Sidings and Private
Freight Terminals
•
Manpower - esp Running staff
•
Maintenance Capacity- Regular and Periodic Overhaul
23
ROLLING STOCK - IR
Year
Wagon
Wagon
Holding Acquisition
Diesel
Elect.
Total
Loco
Loco
Loco
Holding Holding holding
2008-09
207,587
15,261
4964
3586
8550
2009-10
206,707
15,597
5022
3825
8847
2010-11
219,231
16,638
5137
4033
9170
2011-12
230,229
18,357
5197
4309
9506
2012-13
240,642
15,626
5391
4597
9988
24
WAGON INDUCTIONS
Type of
Wagon for
commodity
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
(targeted)
BOXN+
BOBRN
5781
5535
5619
11683
7000
10,600
TOTAL
11514
13434
16638
18357
15626
15666
LOCO INDUCTION
Type
HORSE POWER/
TRACTIVE EFFORT
2011-12
2012-13
2013-14
(Target)
DIESEL
WDG4
4500/52T
149
WDG3A
209
190
4
30
WDG5
5500/54
WDM3
3100/30.5T
35
58
50
WDP4
4500/41T
32
22
70
216
293
340
TOTAL
ELECTRIC
WAG9
6000/46----52T
45
53
95
WAG7
5000/44
185
173
80+38 ex.
BHEL
WAP4/5/7
6000/
83
79
100
313
305
275+38
ex. BHEL
TOTAL
•High Density Corridor (Golden
Quadrilateral + Diagonals) 16%
of route Km carries 52% of
Delhi
passenger & 58 % of freight
Kolkata
Mumbai
Chennai
DEDICATED FREIGHTCORRIDOR NETWORK
LUDHIANA
DELHI
KOLKATA
MUMBAI
VASCO
VIJAYAWADA
Sanctioned projects
Unsanctioned projects
CHENNAI
28
Coal Routes
Requirement 2016-17
DFC- for Imported
DFC and doubling of
B route via Lucknow +
Shivpur Tori for
Captive 32 MT/53 MT
CCL, ECL, BCCL
MUMBAI
HWH
Rewari
Doubling
3rd line between Champa - Jharsuguda
Alwar
Mathura
Strengthening
HWH
KORBA
MUM
+25
MCL IB
MCL TLHR
No work planned between Durg-Nagpur
3rd line between Durg
to Bhattapara
New line required
between KorbaAnnupur +
Connectivity to
Raigarh-Mand
MAS
3rd line
MOU-GOL
DOUBLING WORKS IN PROGRESS –
ENHANCEMENT OF CAPACITY
S.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Name of Project
Kalyan-Kasara
Wardha-Nagpur
Bhopal-Bina
Bina-Kota
Habibganj-Bhudni-Itarsi
Bhadrak-Nergundi
Champa-Jharsuguda 3rd line
Talcher-Sambalpur
Bilaspur-Urkura
Khodri-Annupur with flyover at Bilaspur
Champa - Byepass line
Salka Road-Khongsara - Annuppur Doubling (90 km)
Durg-Rajnandgaon 3rd line
Kalumna-Nagpur
PROCESS OF LOADING
Pithead
Crushing
CIL
Transporting to siding
Loading
Supplying Rake
IR
Dispatches
CIL LOADING-REDUCING BANDWIDTH
MONTH
2008
2009
2010
2011
2012
JAN
163
FEB
170
MARCH
174
178
176
180
196
223
APRIL
158
153
155
176
180
200
MAY
150
147
154
160
182
184
JUNE
145
153
152
158
176
186
JULY
138
143
155
164
175
188
AUG
135
146
157
138
156
180
SEPT
143
141
150
131
157
OCT
152
150
163
154
184
NOV
163
163
168
177
187
DEC
162
168
169
184
201
LOADING
IN THE
168
169
172YEAR184
172
173R
168
194
2013
210
208
PATH AHEAD

FIRST MILE CONNECTIVITY CRUCIAL:
ALL WEATHER ROADS, TRUCKS,ETC.

REDUCED
BAND
WIDTH:LOADING
UNIFORMLY
THROUGHOUT THE YEAR WITH BAND OF MAX 10
RAKES BETWEEN MINIMA AND MAXIMA.

AT PORTS SUPPLIES TO BE CONTINUOUS – NO
SPURTS.

REDUNDANCY IN HANDLING INFRASTRUCTURE INCL
STORAGE SPACE.
DPS & LONG HAUL

New wireless technology under procurement:
- Distributed power , suited for Long Hauls
- Shorter braking distance; more speed
- Saves crew & paths
STRATEGY FOR XIITH PLAN OPERATIONS
NEW COAL SIDINGS TO ACCOMMODATE LONG HAUL:PLAN
WIRELESS
STATUS OF MAJOR COAL CONNECTIVITY
PROJECTS




Tori-Shivpur line- Stage-II forest clearance received
from MOEF-TDC - June’16- Project included in Budget
2001-02 -Potential for 60 MT incremental traffic
Shivpur-Kathautia line- Land acquisition applications
filed for processing Stage I forest clearance
Jharsuguda-Barpalli-Sardega line- Application for
Stage-I forest clearance filed with State Government –
TDC - Dec’14- Potential for 60 MT incremental traffic
Coal connectivity projects in Mand area in SECR-Two
JV Companies Chhattisgarh East Railway Ltd. and
Chhattisgarh East-West Railway Ltd. registered – Land
acquisition being processed- Potential for 60 MT
incremental traffic
36
COAL CONNECTIVITY RLY PROJECTS
Name of projects
Piparwar Railway Siding of CCl
Ashoka siding of CCL
Tori-Shivpuri New BG Line
Shivpur-Kathauria New BG line
length (in km)
Cost (in cr.)
30
127.34
12.5
129
43
1094
47.7
1250
Shivpur-Chatti Bariatu and Hazaribagh-Banadag siding
23
Koderma-hazaribagh-Barkakana-Ranchi New BG line
189
Koderma-Tilaiya New line
64
Angul-Talcher bulb line
Rail corridor connecting Angul-Talcher line
New line Bhadrachalam-Sattupalli
5200
56.27
337
Rail connectivity in Mand area in SECR
Provision of 2nd siding at Himgir station, Kanika
Additional lnk from Vasundhara area with SECR
24
Renovation of Chainpur-Sarubera siding
Improvement of Dudhi chua siding of NCL
37
PORT :
LIST OF PORT CONNECTIVITY PROJECTS IN PROGRESS
S.No Railway Connected to
Name of Project
.
Port
1
CR Mumbai
Dedicated freight line
between Wadala and Kurla
2
CR
Mumbai & JNPT Panvel-Pen doubling
TDC (tentative)
104
2016-17
190.99
2013-14
1000
NF
3
ECOR Paradip
4
ECOR Vishakhapatnam Kottavalasa-Simhachalam
100.76
Completed and commissioned.
North 4th line doubling
ECOR Vishakhapatnam Vizianagram-Kottavalasa 3rd
248.16
Completed and commissioned.
line
ECOR Vishakhapatnam, Rajatgarh-Barang doubling
275.2
2014-15
Dhamra,
Paradeep
ECOR Vishakhapatnam, Khurda Road-Barang 3rd line
221
2014-15
Dhamra,
Paradeep
SER Haldia
Doubling of 1) Panskura1) Rs 86.91 Rajgoda-Tumluk – completed
Haldia section
2) Rs 171.02 and commissioned. TamlukBasulya (52%) work completed.
5
6
7
8
Haridaspur-Paradip new line.
Cost (Rs. Cr.)
38
PORT
CONNECTIVITY PROJECTS - IN PROGRESS
S.No. Railway Connected to Name of Project
Port
Cost TDC (tentative)
(Rs. Cr.)
930
Venkatachalam-Krishnapatnam –
completed and commissioned.
Balance is in progress. (25%) -NF.
527
NF
9
SCR
Krishnapatnam Obulavarpalle- Krishnapattanam new line
10
SR
Ennore
The new Chord line. (Puttur – Attipattu)
11
SWR
Marmogao
Hubli-Ankola
337.82 NF
12
SWR
Marmogao,
Mangalore
Kottur-Harihar via Harpanhalli
354.06 Completed. Residual works in
progress. (96%).
13
SWR
Marmogao
Doubling of Hospet –Vasco section
2127
2016-17
14
WR
Kandla
Gandhidham-Adipur doubling
28.56
Completed and Commissioned.
15
WR
Kandla
Viramgam-Surendranagar doubling
271.88 2013-14
16
WR
Kandla
Bhildi-Viramgam gauge conversion
589.43 NF (55%)
39
RAIL CONNECTIVITY & CAPACITY
AUGMENTATION- PARTICIPATIVE MODELS

Ministry of Railways notified a PPP policy
in Dec’12 for attracting private investment
for
accelerated
growth
of
rail
infrastructure.

State
Governments,
Local
bodies,
Beneficiary industries, Ports, Large import
and export companies, Infrastructure and
Logistics
providers,
Foreign
Direct
Investors can participate

Advantageous for State Governments,
industry and investors
Ministry of Railways to grant direct
permission or go in for competitive bidding
for award of concession.

PARTICIPATIVE MODELS-OBJECTIVES

Supplementing Government investment in rail
infrastructure projects by private capital flows.

Involving the States in creation/development of
rail infrastructure for the common public good.

Timely creation of rail transport capacity to
avoid supply-demand mismatch.

Ensuring availability of transport capacity
consistent with the expected GDP growth.
NON-GOVERNMENT RAILWAY MODEL

Applicable to first and last mile connectivity projects at
either end of the rail transportation chain providing
connectivity to ports, large mines, logistics parks or other
similar industries/ cluster of industries.

Funds to be fully mobilised by the project developer
without any participation by the Railways.

Land for the line to be acquired by the Project Developer
to provide connectivity with the main line railway system.

Railway land for providing connectivity may also be made
available on lease/license as per extant policy.

IR will pay user fee for the usage of infrastructure.

User fee will be calculated on the basis of apportioned
share of 95% freight.
JOINT VENTURE MODEL

Applicable for bankable New line and Gauge Conversion projects having
clearly identifiable stake holders.

Financial participation will be through equity participation in the JV. The JV
will be a joint venture with Railways as a partner with IR or its PSU holding a
minimum of 26% equity shares. Other partners will be selected from the
stakeholders such as users of the line like ports, mines etc.

Project will be assigned to the JV by Ministry of Railways on nomination
basis.

Land acquisition will be done either by Indian Railways at the JV's cost or
by the JV itself as mutually decided.

Project construction will be done by the JV.

Revenue stream of the JV shall be established
apportionment from freight operation for the project line.

IR will pay to the JV apportioned revenue net of O&M cost as applicable.

Concession period will be normally 30 years including the Construction
period.
through
revenue
BOT MODEL WITH COMPETITIVE BIDING








Applicable to the sanctioned Railway projects where it is not
possible to identify a stakeholder or strategic investor who can
take a lead in making investment in the project line.
The projects under this model will generally be long rail
corridors carrying traffic generated from various streams.
Selection of investors will be done through competitive bidding
process.
Premium or grant ( through viability gap) will be the bidding
parameter.
Land acquisition for the project will be done by the Railways at
their cost. Land will be owned by the Railways.
The concessionaire will design, build, finance, maintain and
transfer the railway line at the end of concession period.
User fee to be paid by IR to concessionaire @ 50% of the
apportioned Freight.
Concession period will be fixed at 25 years, including the
construction period.
CAPACITY AUGMENTATION-FUNDING BY
CUSTOMER

Doubling/Third line/Fourth line, etc works to be undertaken through
this model where some customers are beneficiaries of the capacity
addition and may be interested in funding the full/ part of the
project for expeditious completion/commissioning.

The project will be sanctioned as a railway project on the basis of
an MOU/Agreement entered into between Railways and the
Customer.

The project will be constructed, maintained and operated by
Railways.

The ownership of the line and its operation and maintenance will
always remain with Railways.

Railways will pay upto 7% of the amount invested through freight
rebate on freight volumes every year till the funds provided by the
project beneficiary is recovered with interest at a rate equal to the
prevailing rate of dividend payable by Railways to General
Exchequer at the time of signing of the agreement.
CAPACITY AUGMENTATION-ANNUITY MODEL








This model is applicable to sanctioned doubling, third
line and fourth line projects where it may not be possible
to find funding from any specific user.
Project will be appraised, approved and awarded
following the procedure laid down by Government for
PPP projects.
Land acquisition and shifting of structures to the extent
required would be done by IR.
The concession would be for financing and construction.
Supervision and certification of construction would be
carried out by IR under guidelines
Train operations and maintenance will be by IR.
The concessionaire would be paid through annuity for
limited predetermined period.
Annuity will be determined through competitive bidding.
Annuity payments will be budgeted and paid on a
committed basis.
CHALLENGES for the Railways during the XII Plan Period

40% increase in freight traffic from the terminal year of the XI
Plan to the terminal year of the XII Plan.

Traffic to double if we consider passenger traffic.

To be carried on existing infrastructure without DFC.

Incremental of 80 MTPA as against best ever of 65 MTPA.

Throughput enhancement works other than DFC have to be
prioritized for completion on an urgent basis.

EAST-WEST AND NORTH-SOUTH DFC TO START.

Proliferation of 25 t/30t axle load running for iron ore.

Raising the current axle load regime from 22.82 tonnes to 25
tonnes.

INDUCTING 25T WAGON FOR COAL +14-17% EXTRA
MANTRA--FOR XIITH PLAN
HEAVIER
PROLIFERATE 22.9 T
AXLE LOAD RUNNING
ON ALL ROUTES
FASTER
NEW WAGONS TO RUN
AT 100KMPH LOADED
AND 100KMPH EMPTY
LONGER
DISTRIBUTED POWER
SYSTEM AND LONG
HAULS ARE SOLUTIONS
TO
GENERATE
ADDITIONAL
THROUGHPUT
AND
OVERCOME CAPACITY
CONSTRAINTS
UPGRADE IRON ORE
ROUTES AND DFC
FEEDER ROUTES TO
25T AXLE LOAD
GET 25T AXLE LOAD
WAGONS ON PRIORITY
48
Thank You