Page 72 - Nuvama | IC Report 2023

• MANUFACTURING • NEW ENERGY • URBANISATION • CONSUMPTION PREMIUMISATION • EQUITY SAVINGS CULT

as railways’ capex over FY15–22 went largely towards network expansion; its signature project is the
Dedicated Freight Corridor (DFC).
The DFC extends from Gujarat on the western coast, and has railway lines connecting Mumbai to
India’s railway Delhi with stations close to coastal area. Part of the DFC has already become operational, but the
network capacity entire corridor is likely to be operational 2024 onwards. These freight trains can run at 2x the speed
has expanded of current goods trains and haul greater volumes. Furthermore, to ensure better access to freight, the
little since stations are located near ports, which should facilitate easier access to EXIM (export-import) trade.
independence, but
that’s now changing
Moving Indian Railways DFC routes
dimensions
Western corridor Eastern corridor
Height
7.1m
4.256m 5.1m
Western DFCC will
Width 3200mm 3660mm increase carrying
capacity by
~1.5-2.0x

Western corridor Eastern corridor
Exhibit 3:
DFC: Promises Container
hauling greater stack
volumes at
higher speeds

Train 700m 700/1500m
length

Train Increased load
load carrying capacity
per train by 3-4x
5,000 ton 13,000 ton
Axle 25 t
load 22.9/25t Bridges & formation
designed for 32.5 t
Average speed of
75 Kmph freight trains will go
Minimum up from 25kmph
speed 100 Kmph to 70 kmph

Source: Government documents, Nuvama research

As regards rolling stock, the pace of procurement slowed in recent years. Against an average of 15,750
wagons procured over FY10–13, the IR’s wagon purchases slowed to ~10,500 annually, on average, over
FY14–22 even though the Indian industry has capacity to manufacture 25,000–30,000 wagons a year.

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