Ppt Railways

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Public Private Partnership

(PPP) in Railways

By

Chairman

Railway BoardGovernment of India

Conference of Chief Secretaries on PPP in Infrastructure

20th May, 2006



Background

• High Growth Rate of Economy will generate Huge

Transportation Demand

• Pressure on existing Rail Network calls for Expansion of

Capacities

• Reducing cost of operation will require keeping pace with

Technology

• Capacity generation and Modernization will requireMobilization of Huge Funds

• More than Rs. 47,000 Crores required to complete almost

240 sanctioned Projects



Public Partnership in

Rail Infrastructure Projects

Background• State Government offered Financial Participation

– Navi Mumbai connectivity through CIDCO in 1986

– Creation of Konkan Railway Corporation in 1990 withState initiatives

– Sub-urban Projects in Mumbai, Chennai and Kolkata





Participation of States through SPV

for financing Projects

• Karnataka

– K-RIDE – HMRDC

• Maharashtra

– MRVC

• Gujarat

– Kutch Railway Company





Cost sharing in Rail Infrastructure

Projects – Jharkhand -6 projects

– Karnataka -3 Projects

– Maharashtra- 3 Projects – Tamil Nadu- 3 Projects

– West Bengal-1Project

– Andhra Pradesh- 1 Project

– Haryana- 1 Project



Rail Projects through PPP

• Surendranagar-Pipavav Gauge Conversion (PRCL) – Pipavav Rail Corporation Limited

– Connectivity to Pipavav Port

• Gandhidham-Palanpur Gauge Conversion (KRC) – Kutch Railway Company

– Improving Connectivity to Mundra & Kandla Port



Recent Initiatives

• Private parties to run container trains

• Wagon Investment Scheme

• Development of Rail-side Warehouses & Logistic

Parks• Strengthening Rail –Port Connectivities

• Development of Dedicated Freight Corridors



Private Operators for

Container Operation

• Sector Opened in 2006• Licenses offered for various corridors (Exim &

Domestic) to 14 players

• Rs 540 Crore generated as fees

• Generation of Terminal & Wagon Capacity

• ROR of approximately 20% for investors



Wagon Investment Scheme

• Launched in 2005-06• Wagon procurement

• Guaranteed supply of rakes for loading

• 10% rebate on freight charges

• Rs 250 crore generated from 25 Rakes



Development of Rail

Side Warehousing

• Door-to-Door service• Land at nominal fees by Railways

• 5% minimum revenue to be shared with Railways

• Lease period 30 years

• MoU with CWC has been signed to set up rail side

warehouse at 22 locations. Agreement finalised for 10locations



Development of

Logistics Parks

• Objective: – Complete logistics solution

– Reduction in Door Bridging Cost

• Development of multi-user/ multi-commodity rail

handling and warehousing facilities

• State Government are invited to participate in theventure



Port Connectivity Works

• Rail Connectivity provided to Mundra andPipavav Port

• Connectivity Strengthened for Mundra ,

Kandla and Mangalore Port• Strengthening / New Port Connectivity throughSPV route being explored for Paradip,

Krishnapatnam, Dahej and Hazira Ports byRVNL



Dedicated Freight Corridors

• Capacity Augmentation considering growth inContainer ,Coal, Iron &Steel

• 2700 km Corridor on Eastern & Western Routes will

cost Rs. 22,000 Crore

• Incremental Traffic of 97 million tonne and 4 million

TEU projected by 2021-22 on both corridors



Traffic Projections

41

(55Trains)

46

(70Trains)

5

(15Trains**)

Container on

Western Route(Lakh TEUs)

163317Western

81

(57Trains)

137

(89Trains)

56

(32Trains*)

Eastern

Incremental

(Million Tonnes)

2021-22

(MillionTonnes)

2004-05

(MillionTonnes)

Route

*Trains indicated each way.

**Trains on Western Corridor is inclusive of Bulk and Container



Feeder Route

Main Route

Dedicated Freight Corridor Ludhiana-Son Nagar

Asansol

Bondamunda

Tata NagarDurgapur

Mughal SaraiAllahabad

Kanpur

Tundla

Khurja

Hapur

Meerut

Saharanpur

Ambla

Ludhiana

Son Nagar

Gomoh

Unchahar

Katni

Nagal Dam

Chandigarh

Panipat

Harduaganj

Paricha

Amritsar

Bhatinda

with Extensions to Durgapur/Bokaro/Tatanagar

Legend:



P R O P O S E D F R E I G H T C O R R ID O R ( W E S T E R N )

L E G E N D :-M A IN R O U T EF E E D E R R O U T E

L U D H IA N A

H IS S A R

R E W A R I

D E L H I

T U N D L A

A G R A

L U N I

J O D H P U R P H U L E R A

J A I P U R

- G A M

D I V A

M E H S A N A

P A L A N P U R

M A R W A R JN .

S U R A T

V A D O D A R A

V A S A I R O A D

P IP A V A V

H a z ira

R A J K O T

V IR A M -P o r t

O K H A

P o r tM u n d ra

G A N D H I D H A M

A H M E D A B A D

V A L S A D

M U M B A IT h a l

P o r tM u m b a i

K A N D L A



APPROXIMATE STATE-WISE LENGTH OF TRACK AND COST OF

DEDICATED FREIGHT CORRIDOR ON BOTH WESTERN &

EASTERN ROUTES

-180*Jharkhand

-229 *West Bengal

4289557Rajasthan

4025527Gujarat

1465192Maharashtra

34645Delhi

602109Punjab

1473213Haryana

81591031Uttar Pradesh78291+139*Bihar

Cost

(in Rs. Crores)

Kms.STATE

* Kilometerage in States on account of extension of Eastern Corridor to Kolkata. No cost

estimate has been made for the extension between Sonnagar-Kolkata.



Challenges Ahead

• Massive Capacity Augmentation ahead of Demand

• Resource Mobilisation

• Induction of appropriate technologies in Rolling Stock

• Reducing Unit Cost of Operation



Opportunities under PPP for

State Governments

• Rail Connectivity to SEZ• Logistics Hubs

• Financing of remote area projects

• Warehousing/ICD’s

• ROB/RUB’s

• Rail Connectivity to Minor Ports



Thank You

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