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SAGARMALA

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172<br />

Comparison of carrying a container from a factory to<br />

port at a distance of 1,100 km by road and rail<br />

INR/TEU 000’s<br />

First mile<br />

Price 1 Cost 1<br />

Rail transport<br />

Potential savings with increased rail<br />

share<br />

Road<br />

DFC 2 8–10 17 25–27<br />

30–39<br />

Current<br />

rail<br />

8–10 23 31–33<br />

7–9 16<br />

7–9 12<br />

23–25<br />

19–21<br />

27–35<br />

Potential volumes of<br />

North hinterland, FY25<br />

Cost of transporting with<br />

Rail@38% share<br />

Cost of transporting with<br />

Rail@80% share<br />

Price of transporting with<br />

Rail@38% share<br />

Price of transporting with<br />

Rail@80% share<br />

7.7 mn TEUs<br />

INR 20–24k<br />

cr<br />

INR 17–18k<br />

cr<br />

INR 24–28k<br />

cr<br />

INR 21–23k<br />

cr<br />

1 Does not include ICD/CFS and port handling charges<br />

2 To achieve IRR of 16%, prices can be reduced to 25% assuming cost of building western DFC is INR 48,000 cr at current cost of construction, 25%<br />

lesser operating cost due to double stacking, no cross subsidisation and capex amortisation over 30 years<br />

SOURCE: Interviews with DFCCIL; transporters

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