DedicatedFreightCorridors & HighSpeedRail Indias UltraLowCarbonMegaRailProjects

AnjaliGoyal ExecutiveDirectorFinance(Budget),MinistryofRailways,India

Approachadopted
1.RailTransportScenarioinIndia

2.DedicatedFreightCorridor&HighSpeedRailsettingthe context 3.Complexitiesingoinglowcarbonintransportsector 4.StructuringDFCandHSRaslowcarbonprojects 5.Launchingtheprojectsasabrand 6.Conclusionsuggestionsonthewayforward

FreightCargoScenarioinIndia: Boomintrafficversusseriouscapacityconstraints Railwayssettocarry1billiontonby2011,1.5billiontonby 2017 Railshare<38% Freightmovementgrowth(200206) Road48%+Rail35%+ RoadCommercialcarrierslowpayloads&fuelefficiency BulkofIRstrafficmovesontheoverstretchedGolden Quadrilateral Speedsof26km/hr,Limitedflexibility Capacityconstraintswillkillthesurge

RailTariff:UScents/tkm
(inpurchasingpowerparity)
Sweden Japan France Canada China India
0 1 2 3 4 5 6 7

2 3.7

Need to drive down Indias rail tariff

5.5 2 share benefit with users

Capture larger market share

7.9
8

2.6

CitedinNewTigersofAsia,MorganStanley,July04

DedicatedFreightCorridors
EasternCorridor 1805km Ludhiana Kolkata WesternCorridor 1515km from Mumbai(J.N.port)to Dadri LiberalMovingDimensions Higherpayload/axle Suitableforheavyhaultrains (65 fr.Cars) HigherHP& tractive effort locomotives Highercapacityfreightcars Speed:100 120 kmph+

DELHIMUMBAIINDUSTRIALCORRIDOR HighImpactDevelopment
Haryana

Dadri
Rajasthan Uttar Pradesh

20industrialclustersregions/areas DMICacontinuous1515kmlong150km (newlyplanned) widegiantIndustrialconglomeration

DelhiLudhianaindustrialcorridor,another two450kmlongHSRcorridors 200km (planned) 15citiesofpop.1million+to10million+,

Gujarat Madhya Pradesh Arabian Sea Maharashtra

19raillinksand26roadlinksforport connectivity 38,500kmexistingraillinesinregion Fourinternationalairports,9domestic 6000km+ofexistingfreeways/expressways

40custombondedwarehouses 15logisticsparks/hubs 159SEZs,endtoendOFCconnectivity 6majorports,15impex seaports,7new ports,

J.N.Port
End Terminals DFC Alignment Existing Passenger Rail Link (Delhi-Mumbai) G-Q (NH-8) N-S & E-W NH Corridor Investment Region Industrial Area

DFCsMegaLogisticsCities
Efficientsupplychainrelationships
Convergenceofindustrialactivities Tremendouspotentialforhighvalue, endtoendlogisticssolutionsprovider services
Tempcontrolledwarehousesandother logisticsinputs Tappingseamlessintermodalpotential

ThesehingeonthespecialfeaturesofDFCasanewrail transportserviceproduct

DFCv/sCompeting modesefficiency scorecard

IndiasPassengerTransportationLandscape

Rail
87%

NonRail

FastMobilitytransportmodes ontherise Cars/airlinesgrowingat1520% Nearly2millioncarsp.a SettogoupwhenNanocars hitthemarket

13%

IRcarries 7billion

Sowilltheemissions

IndiasFreewaysToday NanoCarsYetToHitTheRoads

MarketRequirements

Newgrowth centres:
Morespreadofeconomicactivity Dramaticincreaseinurbanpopulation

E&Y

Change in Population
>50% 2550% 025%

HighwayTrafficDelhiAmritsarCorridor SummaryVolumeCounts
Section NonAC Normal Normal ACSmall AC MiniBus MiniBus MiniBus Normal Small Bus Bus Cars BigCars Ordinary Deluxe AC BusAC Cars Ordinary Deluxe

DelhiSonipat SonipatPanipat PanipatAmbala AmbalaLudhiana

4015 10509 9996 894 2346 1435 7710 7651 5737 8305 4466 6593 9309 9013 6993 7975 5772 7767

73 70 180 128 168 196 82

89 84 117 220 161 90 53

7 50 60 29 12 14 27

1250 1252 1187 688 1105 635 1880

240 265 298 296 668 218 472

58 87 285 74 21 34 293

LudhianaJalandhar 2961 JalandharAmritsar

1961

AmbalaChandigarh 2022

*DailyFiguresbasedonsurvey

CarUserPreferences
OtherModes unavailable 1%
Closertohome 9% Facilities provided 7% SaferMode 8% LesserTime 40%

Non Availabilityof traintickets 22% CheaperMode 13%

CarPassengerPreferences
97%preferred threehourorshorterjourneyonDelhiAmritsarCorridor HSTtobefrequent,ratherthanonetraininthemorningone intheevening. Willingtopaymorefortimesaving 93%preferredarestaurantwithpriceofamealintherange 100to200Rupees Currentcarpassengerswantedfacilities,like,prerecorded videoprogrammes,cableTVandshoponthetrain.

WhytheentryofIndiaand ChinainHSRisimportant for theworld

Highcarbonemissionsofdevelopedandfast developingcountriesamajorworry PercapitaemissionsinIndia&Chinalowbut totalemissionvolumeshigh Risingfast Bothcountrieswill(andshould)acceleratetheir GDPgrowth Botheconomiesautomobileindustrydriven Lowfuelefficiency

Carsper1000Persons
700 600 500 400 300 200 100 0 India China Brazil
PWCstudy

645 2007 2050 382 363 500 555

137 8 15 USA

Thenumberofcarsisincreasingalright. ButIthinkstoppingpeoplebuyingcarsis nottherightway. Helpingpeopletousetheircarsina differentmanneristhewaytogo.

NicholasSterninaninterviewDowntoEarth30,Nov.2007

Complexitiesingoinglowcarbonin TransportSector
PeoplesMobility amatterofpersonalchoice

EconomicFactors Income GovtPolicy User Charges Car Purchase Cost Fuelor EnergyCost Transport Infrastructure

Lifestyle Culture, Attitude& Perception Image

Taxation

Car Ownership

CO 2 Emissions

Travel Volume

FARE

Numberof Trips TripLength

Easeof Access

Congestion

SettlementForm, Size,Density& Configuration

Activity Pattern

Speed

AIR

HST

TRAIN

BUS

CAR

Source:ManagingTransportEnergy.

Complexitiesingoinglowcarbonin TransportSector
PeoplesMobility amatterofpersonalchoice FreightTransportationdecisions drivenbycost competitiveness,supplychaincommitments CDM rewards/offsetsmostlyforinvestors nothing muchforusers Apprehensionsofthestakeholdersinbusinessasusual carbonbasedtransportinfrastructure

Stakeholders
AutomobileindustryPassengercars, SUVs,

CommonApprehensions OnCarbonMitigation inTransport

StricteremissionnormsBetter technologiesnotyetdeveloped High costR&D ? Adverseimpactonsales/expansion Hightaxesandpenalties Highcostofcleanfueltechnologies LargescaleSolar,Windpower costly,notyetcommerciallyviable ToofragmentedCO2 savings proposals CO2 reductionstrategiesnotyetclear /backedbycleargovernmentpolicies

Commercialvehicles CommercialTruckoperators Locomotivemanufacturers Investors/banks/lending institutions Railshippers,Railpassengers, Carpassengers,Logisticsplayers Oilcompanies

Coalbasedthermalpowerproducers Airlines,aircraftmanufactures

Breakingthebarriers
NeedtolaunchCO2 mitigationstrategieswith
anewimage anewplatformforapopularmovement

Newbusinessopportunities takentoscale Rewardsoffsettoaddresstheseinfluencingelements Peoplesparticipationthroughbranding IRs proposedtwoUltralowcarbonmegarailprojects bestplatformtolaunchCO2 emissionreductionasa popularmovementandbrand

StructuringofIndias UltraLowCarbonMegaRailProjects
HSR&DFCnewtransportprojectswillcausecarbon emissionsOwningthefootprints Identifyandmeasureactionswhichcreateemissions Adoptcleanenergy/technologies/wastereductions Neutralize/Offsetemissionstomaximumextent Ownthecostsofemissionreductions Encourageuserstoavailthebenefitsofcleanpublic transport DocumentandCommunicate

UltraLowCarbonRailProjects CO ReductionStrategies 2
Primaryneutralityobjective Powerrequirementnon fossilfuel Traction/Operation RollingStock

PowerQualityManagement HighVoltageTransmissionLines DynamicLoadManagement UnityPowerFactor HarmonicsManagement IntelligentTrainScheduling IntelligentTrainOperation EfficientTractionPowerConversion IntelligentAuxiliaryPowerConversion HotelLoadManagement

Electricity Grid

Traction Substation

Overhead Alignment

Rolling Stock

Track

UltraLowCarbonRailProjects CO ReductionStrategies 2
Primaryneutralityobjective Consequential
Powerrequirementnon ModeShift fossilfuel Traction/Operation Intercityridership RollingStock Cars/Buses/AirtoHSR FEMUforlightcargo LEEDratedenergyefficient terminalbuildings&Logistic TruckstoDFCfreighttrains Parks Shiftbychoiceandpiggy WarehousesPVpanelsroof, outerwalls backrides Landusenofarmersland

DFC
TransformingIndiasFreightCargoMovement ProductDesign Sourcing30%ofenergy requirementfromcleanpower Onlyfuelefficient3phase locomotiveswithregenerative brakingkineticenergysupplyto grid10% FEMUservicesfortimesensitive lightcargos. Hybridcarsandefficienttrucks

IntermodalShift
Railbridgingthroughroad railersandpiggyback services Valueaddedservices throughmegalogiparks Timetabledopenaccess movement EarnDiamondMiles

CO savings 2

HSR:ChangingMarketTectonics ProductDesign
Substantiallycarbonneutral tractionpowersourcenonfossil fuelsbased Swap/barterstrategy HighSpeedRegenerative locomotiveskineticenergy recovery HSRonPPPmodepartners eligibilitybasedonowningnew smallhydelpowerplants
Hybridcarsforhireatterminals

InterModalShift
FareStructure lessthancar usagecosts,lowpricedairtickets 1000passengerspertrip Drasticcutintraveltime (comparedwithroadtravel) Improveonboardambienceand qualityofservicesonHSRatpar withaircraftandluxurycars Safe&fasttransit
Carbonmilesfornonuseofpersonal carsparkyourcaratHSRterminal, travelbyHSR

CO savings 2

14
Gtofcarbonper year

ThePacalaandSocolow WedgeTheoryandIndias megaRailprojects

s s s a Us al u
W n o

e dg e

sin u

ti W za ili on ge b ti a ed a St biliz W e tion ta S edg iza il W ta b tion S a biliz edge ta S W ation iliz S ta b ge nW ed a ti o Stabiliz edge tabilizationW S

e dg e

StabilizationTrajectory

2004

2054

Wedge#1&2
DoubleFuelEfficiency & CutDistancestohalf

45.30

45.00

40.00

Milliontons C O2s av edduetoDF C (bas e c as e) Milliontons C O2s av edduetoDF C (likely s c enario)

30.01 28.07 26.27 24.60 23.04 34.35 32.10

39.41 36.78 36.24

35.00

30.00

25.00
19.49

Throughvehicledisplacementalone,thetwoDFCsexpectedtosave
20.00
13.96 11.82 16.49 347500milliontonnesofCO2by2027(cumulative)

15.00

Emissionssavedthroughlocomotiveswithregenerativebrakingan 10.01
10.00 8.01

additional3milliontonnes
5.00

Throughswap/barterstrategyanadditional9milliontonnes
0.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

ReductioninCO EmissionduetoHSTonCarbon 2 NeutralElectricity*

1.600 1.400 CO 2 (m illionton) 1.200 1.000 0.800 0.600 0.507 0.400 0.200 0.000

1.490

12

20 24

20 25

20 26

Year ReductionofCO in15Years=14.679MillionTon 2

20 27

13

14

15

16

17

18

19

20

21

22

20

20

20

20

20

20

20

20

20

20

20

20

23

Wedges#3,4&5
Wedge Cuttingcarbon emissionfrom buildings Implementation Freight&HSRTerminalsandLogicities willcutcarbonemissionsby25%LEED ratedbuildings

700foldExpansion LogicitiesConfluenceofWarehouses, ofphotovoltaic TradeandCommercialcomplexes, solarenergy malls,Hotels encouragedtodraw powerfromsolarsourcesespecially fromlargesolarfarmsinRajasthan, Gujrat,Maharashtra. Haltingofcurrent Railuseslesslandthanroad deforestation

Stakeholders
AutomobileindustryPassengercars, SUVs,

CommonApprehensions OnCarbonMitigation inTransport

StricteremissionnormsBetter technologiesnotyetdeveloped High costR&D ? Adverseimpactonsales/expansion Hightaxesandpenalties Highcostofcleanfueltechnologies LargescaleSolar,Windpower costly,notyetcommerciallyviable ToofragmentedCO2 savings proposals CO2 reductionstrategiesnotyetclear /backedbycleargovernmentpolicies

Commercialvehicles CommercialTruckoperators Locomotivemanufacturers Investors/banks/lending institutions Railshippers,Railpassengers, Carpassengers,Logisticsplayers Oilcompanies

Coalbasedthermalpowerproducers Airlines,aircraftmanufactures

Regenerative braking/kinetic energyharnessing electriclocos Roadrailers,Piggy backriders throughinter modalmovement

Researchon biofuels,cellulosic ethanol,

Complementaryroleof airlinespartnering HSR Possibilityoflower fares/lowertariff highthroughputHST/ heavyhaulfaster freighttrains

Megalogistic parksintermodal hubstruckers parks,Hybridcars Largescalesolar powerinlogi cities&HSR terminals

HybridDiesellocos, regenerative batteries,biodiesel

NewBusinessOpportunitiesin CarbonMitigation

AreasofConvergence inspeciallycraftedlowcarbonprojects Dedicated Freight Corridor

LogisticsParks

HighSpeedTrains

ChangingPerceptions
ClimateChangeinitselfbadnews Despair,Gloom,Catastrophe IRsproposedtwoUltralowcarbonmegarail projectsbestplatformtolaunchco2emission reductionasapopularmovementandbrand

Lowcarbonbrandpersonality

IndiasHSR ALowCarbonHighlyMarketableBrand
PositionIndianHSRwithanultralowcarbonbrandpersonality anendearingsymbolnolifestylelossinpublictransport HSRridershipIndiasgiantpopulationHSRmarketsize: openswith7millionpassengers/corridor HugeMarketpotentialhuge:IndianadmarkettocrossUSD6 billionin2011 0.40million+(truegreen)30secondsadspotsperyear (estimated) VastOutofHome(OOH),premiumadspaceinHSRterminals
NettruegreenadrevenuescansupportHSRsdebtservicing Vastpotentialforrealestatedevelopment

AnotherUltraLowCarbonBrandPersonality DFC&MegaLogisticCities Heavyhaulfreightcorridorwithabrandpersonality Partlyuserfundedrailproject Baptismforhighcarbonsinnerindustriesfreight carbonmilespossibilitiesofconvertibilityintocarbon credits? Carboncreditsforcleanenergywarehousestobe sharedwithwarehouseusersasbenefits

AcceptabilityofMitigationStrategies

GDPgrowthretardationdevelopingcountries Erosioninqualityoflifestyles Punitivetaxesregressive, Misgivingsontradingincarboncredits CDMrewards/offsetsmostlyforinvestorsnothingmuchforusers Availability/Costsofrenewableenergy Quantumreductionnotpossiblelackofscaleoftechnological breakthrough Biofuelimpactonagrilandandfoodprices, PeoplesparticipationimportantforsuccessRewardsoffsetwillhaveto addresstheseinfluencingelements Pointsforponderingshouldthisdictateapproachforfuturepolicy

WayForward

CarbonMitigationRatingforTransportSectorProjects

SettingPrequalificationBenchmarksforlowcarbon projectsFacilitateConvergence ConcessionalFunding Mechanismforsharingbenefitsinvestorsandusers maybeeventhebrandbuilders&advertiserstoo Diamondgramsrewardschemeforrailusers Paymentcardschemestobenefittoo.

THANKYOU