India’s dedicated freight corridors

To improve manufacturing capabilities and enhance global competitiveness, any developing economy must prioritise improving its logistics infrastructure. Having a well-connected set-up facilitates a seamless supply chain ecosystem. Dedicated Freight Corridors (DFCs) in India are doing exactly this. With the government aiming to reduce logistics cost to 8 per cent of the GDP (from the current 13–15 per cent),¹ these rail networks are strategically established to make movement of goods faster, cost-effective and efficient. In a recent development, the Indian Railways is also looking to establish 100 more GatiShakti cargo terminals², which will strengthen DFCs further.

So how are DFCs being planned? Let’s take a look.

A) The Eastern Dedicated Freight Corridor (EDFC)—a stretch of 1,337 kilometres—spans across the Punjab, Haryana, Uttar Pradesh, Jharkhand and Bihar.³

B) Similarly, the Western Dedicated Freight Corridor (WDFC), which stretches over 1,506 kilometres, connects Maharashtra, Gujarat, Rajasthan, Haryana and Uttar Pradesh and is currently 88 per cent operational.⁴

C) Additionally, there are three upcoming corridors—the East Coast, East-West and North-South—that are currently in progress.

D) These infrastructural upgradations are expected to significantly reduce congestion on roads, which accounts for 60 per cent of the country’s freight.⁵ For instance, estimates suggest that each kilometre-long freight train on the EDFC will replace about 72 trucks.⁶

E) Critical sectors, such as power and heavy manufacturing, are expected to benefit from these.

While the momentum is strong, these networks need to be utilised more as there are currently about 300–320 trains running daily against the DFCs’ optimum capacity of 480 trains.⁷ Going ahead, as the Dedicated Freight Corridor Corporation of India Limited’s truck-on-train service—popularly known as RORO—gains popularity among stakeholders from various industries, DFCs will experience increased capacity utilisation, resulting in overall reduction in expenses and improved time efficiencies.

^[1] National logistics policy in India, Invest India, 20 September 2022, accessed on 24 May 2024
^[2] Indian Railways nears completion of 100 Gati Shakti Cargo Terminals, Cargo Insights, 24 April 2024, accessed on 24 May 2024
^[3,4] India’s dedicated freight corridor program: Progress and prospects, India Briefing, 8 April 2024, accessed on 24 May 2024
^[5] Fast tracking freight in India: A roadmap for clean and cost-effective goods transport, Niti Aayog, June 2021, accessed on 24 May 2024
^[6] Explained: How dedicated freight corridor project is a game changer for 21st century India?, India Infrahub, 17 October 2023, accessed on 24 May 2024
^[7] Indian Railway’s DFC: 18-year mission on track, India Shipping News, 15 April 2024, accessed on 24 May 2024