Synergising Ports and Railways for a Viksit Bharat
By Arghya Patnaik
The recently released Q1 GDP data for this fiscal, which pegged quarterly growth at 7.8% caused much jubilation. However, the same newspapers also carried sobering headlines announcing US tariffs of 50% on Indian goods, indicating tectonic shifts towards walled economic systems. In this scenario, only inherent competitiveness and diversification can deliver sustained export-led growth for us. Efficient logistics can catalyse competitiveness, but, high logistics costs (14% of the GDP) compared to the OECD average (8%), are a big impediment. Thus, revolutionising the logistics sector is a sine qua non for Viksit Bharat.
Salient to turbocharging India’s logistics sector are our ports, which carry 95% of our trade. Further, pivotal to energising them, is the Indian Railways- the lifeblood of its economy. The Sagarmala project envisions an overall cargo handling capacity of 3300 MT by Indian ports (currently, 855 MT). Similarly, the National Rail Plan targets railways’ modal freight share at 45% by 2030 (currently, 28%). Marrying these crucial lynchpins of the economy and leveraging complementarities is key to achieving these targets and enhancing logistical efficiency for export competitiveness. It would also decarbonise logistics- shipping and railways have emission intensities which are 1/30th and 1/5th of that of roadways respectively.
The Sagarmala vision hinges on port connectivity. Seen from the prism of rail linkage, 114 port- rail connectivity projects worth Rs. 1,00,599 Cr. have been conceptualised, out of which, 49 projects have been completed. Recent announcements of augmentation of rail links to Paradip and Mangalore ports reflect the emphasis placed on rail-based evacuation. However, going beyond major ports, only 19.7% of non-major ports have railway connectivity. Sluggish growth in rail connectivity compared to the expansion in the
roadways network has fuelled migration of port cargo from railways to roadways. This is compounded by chronic congestion on the rail network, especially the Golden Quadrilateral (Delhi-Howrah-Chennai-Mumbai) where freight trains to and from ports vie for path with passenger trains. Other problems that plague port- rail connectivity include saturated single-line sections, obsolete signalling systems (which impair sectional capacity), etc. Consequently, freight trains average a pan-network speed of 25 kmph only.
While much-needed impetus has been imparted to rail connectivity projects recently, further recalibration is necessary. Expediting the proposed coastal Dedicated Freight Corridors (DFCs) would enable port-serving lines to be seamlessly connected to them (desirably through rail-over-rail flyovers), thereby eliminating both path conflicts with passenger services as well as surface crossings at critical nodes. Moreover, universal non-major port connectivity can be taken up by encouraging PPPs in building new lines, as demonstrated successfully at Dhamra and Pipavav. Investor interest in such projects can be spurred by Railways or Shipping ministry sharing the project financing risk. Furthermore, multi-tracking, electrification, and auto-signalling across port-rail linkages would boost freight traffic by enhancing freight train running capacity. We can emulate the Western DFC model, which has reduced freight transit times from JNPT on the west coast to Dadri in the north by over 1/3rd. This would enable all-round efficiency by raising the Rail- coefficient (percentage of cargo carried over Railways as a proportion of total cargo) of Indian ports from 27% currently to 40% by 2040.
While port-rail connectivity is an essential prerequisite, Railways’ capacity enhancements are imperative to handle surging cargo volumes. In this context, recent revolutionary steps like a Rs. 90,000 crores order for wagon procurement, liberalising private wagon leasing, inducting distributed power locomotives, etc, symbolise the Indian Railways’ motto of “Hungry for Cargo”. However, satiating the cargo hunger of world’s fastest-growing major economy necessitates longer and heavier train loads. Indian freight trains are smaller (58 wagons’ composition vs international average of 100) and lighter (load-empty ratio of 2.5 vs international average of 4.7 for bulk commodities) due to smaller loop lengths at yards and lower payload capacity wagons. It can be mitigated by suitable yard remodelling works and wagons with higher axle load capacity (25 tonnes and above) respectively. Long haul trains (trains joined end-to-end) and crack trains (with a single set of crew for long distances, on a single run) should be plied between ports and manufacturing/mining hubs. Recently, one such crack special was successfully run over the longest distance- Krishnapatnam port to JSW Steel works at Bellary (415 km) at 41.87 kmph average speed.
In this quest, containerisation deserves special attention as it symbolises high value, standardised and cost-effective multimodal transportation. For every container handled at Indian ports, Chinese ports handle five. Moreover, it is just 4% of overall rail freight in India, hampering integration with the shipping sector. Several incentives for containerisation such as freight rebates for empty runs, subsidised Container Class Rates, etc, have been introduced. Moreover, Exclusive Container Rail Terminals (ECRTs) are being set up, offering non-discriminatory access and concessional tariffs – the new ECRT at Gujarat’s Unjha (India’s cumin capital) being a shining illustration. Serving Mundra port, the Unjha ECRT would energise local agricultural exports. Going forward, we need to incentivise double-stack container movement for Container Train Operators (CTOs) and offer volume-linked incentives to container firms, concessional rates for specific port-hinterland Origin-Destination pairs, etc. Containerisation of ports and rail freight is a direct enabler of EXIM as a growth engine and it must be stimulated.
Beyond infrastructure augmentation and Railways’ policy changes, ports themselves should undergo metamorphosis. The Sagarmala initiative has led to considerable improvements since 2014- a reduction in average turnaround time from 96 hrs to 24 hrs, an increase in average Output Per Ship Berth-
Day (OSBD) from 12,500 tonnes to 18,500 tonnes, reduction in pre-berthing delays from 5.2 to 3.8 hrs, etc. However, global supremacy requires a mountain of cargo to be climbed- Shanghai port alone handles more cargo than all Indian ports combined. In this endeavour, ports’ efficiency improvement at scale, and boosting their rail coefficient are imperative.
Unlocking efficiencies necessitates mechanisation, automation, and remodelling. It can be achieved by rake handling through mechanised tipplers, hoppers and silos, yard remodelling of port railway yards with full length lines as well as merry-go round (bulb-based) designs, electronic interlocking and so on. Multi-modal logistics parks (MMLPs) or Railway Gati Shakti terminals can be conceived based on PPPs, driven by tariff incentives, at major ports. In the same vein, non-major ports can be catered to by Private Freight Terminals handling dedicated streams of cargo, thereby leveraging economies of scale. We must also embrace digitisation. Linking the Railways’ FOIS portal with the shipping ministry’s PCS platform with additional AI- based features can enable better cargo planning across the multimodal chain. The potential for improvement is immense- the opportunities are infinite.
Nothing demonstrates this potential more than a shining example of intermodal integration- Recently, a consignment of automobiles from Incheon Port, South Korea was shipped to Yantai Port, China in 14 hrs before integrated documentation coupled with mechanised handling helped tranship the consignment to a Kashgar-bound freight train in just 3 hours. Next, compatible railway systems at the China-Kyrgyzstan border facilitated its rail journey further till its destination, slashing the transit time from Korea to Kyrgyzstan from 25 days to 12 days. This is the scale of efficiency improvement which India must unleash, in its march towards becoming a USD 35 trillion economy by 2047. Our maritime endowments coupled with a vast and modern railway system are well poised to deliver on this voyage.
(Arghya Patnaik is an IRTS Officer of the 2019 Civil Services batch and is currently DCM, Sambalpur Division, East Coast Railway. He has served earlier as Area Railway Manager, Paradip, East Coast Railway).
