Dedicated Freight Corridors (DFCs)

Syllabus: GS3/Economy 

In News :

• A study by the University of New South Wales highlights that Dedicated Freight Corridors have positively influenced India’s GDP.

About the Study

• The research utilized diverse data, including freight costs, industry inputs, and population statistics, and concluded that the DFCs significantly benefited western regions and lower per-capita GDP states through reduced freight costs.
• DFCS has boosted Indian Railways’ revenue by 2.94% between FY 2018–19 and FY 2022–23. The improved efficiency in freight transport has led to reduced freight costs and shorter travel times, contributing to a 0.5% reduction in commodity prices.

What are Dedicated Freight Corridors (DFCs)?

• They  are dedicated routes for freight transport that allow for faster and higher-capacity transport, improving supply chains and boosting export-import activities.
• The DFC initiative was announced in the Railway Budget for FY 2005-06.
  • The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) was established as a Special Purpose Vehicle in 2006 for the corridors’ construction and operation.

Latest Developments 

• Two DFCs were initiated by the Ministry of Railways in 2006:
  • Eastern Dedicated Freight Corridor (EDFC): 1,337 km from Sonnagar, Bihar to Sahnewal, Punjab (completed).
  • Western Dedicated Freight Corridor (WDFC): 1,506 km from Jawaharlal Nehru Port, Mumbai to Dadri, Uttar Pradesh (93% commissioned, expected completion by December 2025).
• In addition to the Eastern and Western Dedicated Freight Corridors (DFCs), India has proposed four more DFCs:
  • East-West DFC: Kolkata to Mumbai
  • North-South DFC: Delhi to Chennai
  • East Coast DFC: Kharagpur to Vijayawada
  • Southern DFC: Chennai to Goa

Need for Dedicated Freight Corridors (DFCs)

• Alleviate congestion: The Golden Quadrilateral of Indian Railways connects major metros—Delhi, Mumbai, Chennai, and Howrah—and is overburdened.
  • Dedicated Freight Corridors (DFCs) will reduce congestion, improve efficiency, and support India’s growing transport demands.
• Boosting Freight Efficiency and Reducing Travel Time: DFCs provide dedicated tracks for freight, allowing faster and uninterrupted movement of goods.
• Economic Impact: Aim to reduce logistics costs, benefiting industries and increasing revenue for Indian Railways. FY 2018-19 and FY 2022-23, DFCs contributed to a 2.94% revenue growth for Indian Railways.
• Reduced Freight Costs and Commodity Prices: DFCs improve efficiency, lower transportation costs, and can reduce commodity prices.

Source: IE