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SAGARMALA

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171<br />

Enabler for increased rail share: Rationalisation of rail freight charges<br />

Break even number of km for cost of carrying containers by rail and road in India<br />

Per tonne per km<br />

Road<br />

Rail<br />

Rail (At variable cost)<br />

Current<br />

scenario<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

600–700<br />

1,000–1,300<br />

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800<br />

Even with recovery of<br />

just the variable cost,<br />

rail becomes viable<br />

only at 600–700 km<br />

distance down from<br />

1,000–1,300 km<br />

Future<br />

scenario<br />

4<br />

3<br />

2<br />

1<br />

0<br />

400–500<br />

Road<br />

DFC<br />

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800<br />

Cut off distance for rail<br />

can be lowered by 60%<br />

to 400–500 km with the<br />

introduction of DFC<br />

making rail attractive<br />

for Northern hinterland<br />

SOURCE: CONCOR; transporter interviews

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