Dedicated Freight Corridors (DFCs) have emerged as a very important development in India’s transportation infrastructure, impacting the economy. A study by the University of New South Wales has brought into light how DFCs have contributed to a 2.94% revenue growth for Indian Railways and reduced freight costs by up to 0.5%. This development puts stress on the strategic importance of DFCs in enhancing logistics efficiency and stimulating economic growth.
What are Dedicated Freight Corridors?
Dedicated Freight Corridors are specialised railway lines designed exclusively for freight transport. These corridors facilitate faster, heavier, and more efficient movement of goods. The DFCs allow for the operation of double-stack container trains and heavy-haul trains, thereby increasing transport capacity and improving supply chain efficiency. This helps industries and logistics hubs thrive, particularly in economic zones along the corridors.
Construction and Development
The Government of India initiated the construction of two major DFCs in 2006 – the Eastern Dedicated Freight Corridor (EDFC) and the Western Dedicated Freight Corridor (WDFC). The EDFC spans 1,337 km from Sonnagar in Bihar to Sahnewal in Punjab, while the WDFC stretches 1,506 km from Mumbai to Dadri in Uttar Pradesh. As of now, the EDFC is fully operational, and the WDFC is 93% complete, with full completion expected by December 2025.
Need for Dedicated Freight Corridors
The necessity for DFCs arose from the overutilisation of the existing railway network, particularly the Golden Quadrilateral, which links major metropolitan areas. This network, while constituting only 16% of the rail route, carried over 52% of passenger traffic and 58% of freight traffic. Furthermore. Railways faced a declining share in total freight traffic, prompting the need for dedicated routes to achieve a targeted freight share of 45% by 2030.
Current Operations and Economic Impact
Currently, DFCs are operational with an average of 325 freight trains running daily, marking a 60% increase from the previous year. The DFCs have collectively transported over 232 billion Gross Tonne Kilometres (GTKMs) since inception. This efficient network has resulted in a notable shift, with over 10% of Indian Railways’ freight now being handled by DFCs, thus enhancing the overall logistics landscape.
Future Prospects
Plans for additional corridors are underway, including the East Coast Corridor from Kharagpur to Vijayawada and various sub-corridors aimed at improving connectivity across the country. A comprehensive study assessing the broader economic impact of DFCs is also in progress, with findings expected to reveal benefits across various sectors, particularly in regions with lower per-capita GDP.
Questions for UPSC:
- Discuss the significance of Dedicated Freight Corridors in enhancing India’s logistics infrastructure.
- What are the economic implications of the DFCs for regional development in India?
- Analyse the challenges faced by Indian Railways in managing freight traffic before the introduction of DFCs.
- Evaluate the role of DFCs in achieving the National Rail Plan’s freight traffic targets by 2030.
- How do DFCs contribute to reducing the carbon footprint of freight transportation in India?
