Presentation on

Coal Market in India 20122th Annual Conference 10.07.2012

P N ShuklaDirector (Operations and Business Development)DFCCIL, New Delhi

1

DFCC PROJECT AN OVERVIEW

Transport Sector : Present Scenario Indian Railways :

OverviewAreas of ConcernPossible Solutions

Dedicated Freight CorridorOverviewTraffic ProjectionsFunding ArrangementsOpportunitiesDMIC – An Added FeatureImpact on UrbanizationSocial & Environmental Issues on DFCCarbon Footprints of Dedicated Freight Corridor

Scope of Presentation

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 Travel Time (Freight)

Singapore – Mumbai Port 2400 Nautical Miles 4 – 5 days

Mumbai Port - Delhi 870 Miles More than 1 Weeks

1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2010-11 2011-120

200

400

600

800

1000

1200

73.5119.8

167.9 195.9

318.4

473.5

921.7969.8

Freight Traffic (Million Tons)

Indian Railways – An Overview

Indian Railways – An Overview

1950-51 2000-010

50100150200250300350400450500

73.2

473.5

FREIGHT TRAFFIC (MILLION TONNES) 1950-51 to 2000-01

FREIGHT TRAFFIC (MILLION TONNES)

2000-01 2011-120

200

400

600

800

1000

1200

473.5

969.8

FREIGHT TRAFFIC (MILLION TONNES) 2000-01 to 2011-12

AN INCREASE OF 497 MT OVER 11 YEARS

AN INCREASE OF 400.3 MT OVER 50 YEARS

Coal, 420.4, 46%

Raw material for Steel Plants, 13.3, 1%

Pig Iron and Finished Steel, 32.8, 4%

Iron Ore, 118.5, 13%

Cement; 107.6; 11%

Food Grains; 45.6; 5%

Fertilizers, 48.3, 5%

POL; 41.1; 4%

CONTAINER (EXIM +

DOM), 37.6, 4%

Other Goods; 74.4; 8%

TOTAL LOADING OF FREIGHT IN 2011-12= 969.8 MTCommodity wise Loading – 2011-12

Indian Railways – An Overview

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 high-

density 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

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

Traffic Projections On DFC Route On Eastern Corridor

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

• High Density Corridor (Golden Quadrilateral + Diagonals) 16% of route Km carries 52% of passenger & 58 % of freight

DELHI

MUMBAI

KOLKATTA

CHENNAI

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CONCEPT PLAN OF DEDICATED FREIGHT CORRIDOR NETWORK

MUMBAI

DELHI

CHENNAI

KOLKATA

LUDHIANA

VIJAYAWADA Sanctioned projects

Unsanctioned projectsVASCO

DELHI

LUDHIANA

MUMBAI

DELHI

Dankuni

Ludhiana

No Length in km

1 2922 363 4144 1806 187 1988 869 27610 12711 4612 17313 10414 122

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

TOTAL 2072

Ludhiana - AmritsarAmbala - Chandigarh Rajpura – Dhuri – Bhatinda (Lehra Mohabbat) Sirhind – Rupnagar - Nangal Dam Dadri – Ghaziabad - Delhi – Panipat

Feeder Routes – Eastern Corridor

PROPOSED FREIGHT CORRIDOR (WESTERN)

LEGEND :-MAIN ROUTEFEEDER ROUTE

LUDHIANA

HISSAR

REWARI

DELHI

TUNDLA

AGRA

LUNI

JODHPURPHULERA

JAIPUR

-GAM

DIVA

MEHSANA

PALANPUR

MARWAR JN.

SURAT

VADODARA

VASAI ROAD

PIPAVAV

Hazira

RAJKOT

VIRAM-Port

OKHA

PortMundra

GANDHI DHAM

AHMEDABAD

VALSAD

MUMBAIThal

PortMumbai

KANDLA

Rewari

J N PORT

Feeder Routes of Western Corridor

Route Length (km)

1 Pipavav - Surendra Nagar - Viramgram - Mehsana 3952 Kandlaport - Gandhidham - Palanpur 3303 Mundra Port - Gandhidham 654 Okha - Rajkot - Surendra Nagar 3705 Jodhpur - Luni - Marwar Jn 806 Mumbai Port - Wadala - Kurla - Diva - Vasai Road 777 Trombay - Kurla 78 Thal - Panvel - Diva 889 Hazira - Surat 40

10 Ludhiana - Hissar - Rewari 35511 Tundla - Agra - Jaipur - Phulera 275

TOTAL 2082

State-wise Kms. (approx.)State Kms.

West-Bengal 221Jharkhand 319

Bihar 93Gujarat 588Haryana 274

Maharashtra 166Punjab 102

Rajasthan 553U.P. 1002

Total 3318

CORRIDORRoute Length

(Km)

Basic Const. Cost

(Cr.)

Eastern Corridor- Dadri – Khurja - Sonnagar – Dankuni (D/L) 1422 KmsKhurja - Ludhiana (S/L) 413 Kms

1835 23605

Western Corridor- from JNPT (Near Mumbai) to Dadri via Palanpur – Ajmer – Phulera – Ringus – Rewari

1483 22956

Total * Cost at 2009 prices

3318 46561*

Length & Cost of Corridors

Completion Cost as Per Business Plan

• Eastern Corridor Rs 39127 Crs• Western Corridor Rs 38503 Crs

TOTAL Rs 77630 CrsThe 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) World Bank Khurja – Ludhiana 413 Kms (S/L) World BankSonnagar-Mughalsarai 122 Kms (D/L)GOISonnagar-Dankuni 534 Kms (D/L) On PPP Mode

Western Corridor : Rewari – Vadodara 920 Kms (D/L) JICA (Ph.I)Dadri-Rewari & 605 Kms (D/L) JICA (Ph.II)Vadodara - JNPT

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)

Eastern Corridor 2016-17 2021-22 2026-27 2031-32

Sonnagar - Mughalsarai 155 183 214 244

Mughalsarai – Allahabad - Khurja 124 149 180 226

Western Corridor 2016-17 2021-22 2026-27 2031-32

Palanpur - Rewari 181 252 321 377

JNPT - Palanpur 125 172 263 307

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.

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Basic Design Features

Height

Width

4.265 m 7.1 m

3200 mm 3660 mm

700 m 700/ 1500 m

4,000 Ton 15,000 Ton

5.1m

Western Corridor Eastern Corridor

Moving Dimensions

Container Stack

Train Length

Train Load

Indian Railway DFC Routes

Western Corridor Eastern Corridor

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• Heavier Axle Loads

Axle Load

Track Loading density

22.9 t / 25 t 32.5t/25 t

8.67 t/m 12 t/m

75 Kmph 100 Kmph

Basic Design Features (Contd)

Indian Railway DFC Routes

Maximum Speed

Grade Upto 1 in 100 1 in 200

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

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Timelines for DFC Construction Eastern Corridor

Commissioning of Eastern Corridor 31 December 2016

Western Corridor

Phase – I Commissioning of Rewari – Vadodara 31st December 2016Phase – II Full Commissioning of J.N. Port - Dadri 31st March 2017

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

- 2.5 x - 6 x

Eastern Corridor(1975 Billion Tonne-Km)

Western Corridor(3241 Billion Tonne-Km)

Cumulative GHG emissions over 30 years

116

47.5

466

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 • Focus is on ensuring high impact

developments within 150km distance on either side of alignment of DFC

• Area under Project Influence is 14% and population is 17% of the Country

• Total Population in the Project Influence Area : 178Mn

• Total Workers in the Project Influence Area: 70.56Mn

As per Census-2001

DFC AlignmentEnd Terminal

Haryana Dadri

J.N.Port

Rajasthan

Maharashtra

GujaratMadhya Pradesh

Haryana

Uttar Pradesh