Opportunities for Public-Private Partnerships in Railways 20 th 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 require Mobilization 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 with State 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 Public Partnership in Rail Infrastructure Projects

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 Public Partnership in Rail Infrastructure Projects

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  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 10 locations

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 the venture

Port Connectivity Works  Rail Connectivity provided to Mundra and Pipavav Port  Connectivity Strengthened for Mundra, Kandla and Mangalore Port  Strengthening / New Port Connectivity through SPV route being explored for Paradip, Krishnapatnam, Dahej and Hazira Ports by RVNL

Dedicated Freight Corridors  Capacity Augmentation considering growth in Container,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 on both corridors

Traffic Projections Route (Million Tonnes) (Million Tonnes) Incremental (Million Tonnes) Eastern56 (32Trains*) 137 (89Trains) 81 (57Trains) Western Container on Western Route (Lakh TEUs) 5 (15Trains**) 46 (70Trains) 41 (55Trains) *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 Nagar Durgapur Mughal Sarai Allahabad 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:

STATEKms.Cost (in Rs. Crores) Bihar91+139*782 Uttar Pradesh Haryana Punjab Delhi45346 Maharashtra Gujarat Rajasthan West Bengal 229 * - Jharkhand 180 * - APPROXIMATE STATE-WISE LENGTH OF TRACK AND COST OF DEDICATED FREIGHT CORRIDOR ON BOTH WESTERN & EASTERN ROUTES * 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