Describing India’s rail network as mammoth is an understatement. It boasts a staggering total track length of 114,907 kilometres, operates an extensive fleet of over 21,648 trains, and efficiently transports more than 22 million passengers and 3.32 million tonnes of freight daily.
Connectivity serves as a critical determinant of a nation’s economic competitiveness. It goes beyond simply moving goods from one location to another; it entails doing so seamlessly, efficiently, and cost-effectively. In this regard, India’s ports and railways constitute the backbone of the country’s connectivity infrastructure.
Situated strategically with an expansive coastline bordering the Indian Ocean, the Arabian Sea, and the Bay of Bengal, India’s coastal regions have the potential to serve as hubs for vibrant Indo-Pacific economies. Unfortunately, this potential remains largely untapped due to issues such as inadequate shipping connectivity, insufficient infrastructure, and regulatory challenges.
A recent news report highlighted India’s struggle to attract larger container ships, such as the Ever Alot, the world’s largest container ship. These vessels have been bypassing Indian ports in favour of neighbouring nations like Sri Lanka and Malaysia due to shallow harbours along India’s coasts.
Additionally, a 2022 report by the Reserve Bank of India underscored how poor shipping connectivity has hindered India’s integration into the global value chain, with India scoring significantly lower in the Global Value Chain (GVC) participation index compared to the Association of Southeast Asian Nations (ASEAN). This emphasizes the urgency of modernizing India’s ports to enhance trade and economic growth. Luc Arnouts, Vice President of International Relations and Networks at the Port of Antwerp-Bruges, stressed the importance of a robust infrastructure, especially seaports, as a cornerstone of a country’s economic well-being. He emphasized the need to support any plans aimed at modernizing and revitalizing India’s port system.
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India has initiated several measures to build a modern port infrastructure system, including:
- Sagarmala Project: This flagship project focuses on modernizing ports, enhancing connectivity with the hinterland, and developing new infrastructure, including road, rail, and waterway connections.
- Maritime India Vision 2030: This initiative aims to enhance the competitiveness of India’s maritime sector by increasing port capacity, improving connectivity, and introducing green technologies.
- Port Community System (PCS): An online platform connecting all stakeholders involved in port operations, PCS reduces transaction time and costs, now upgraded to NLP Marine for greater efficiency.
- Green Ports: The government promotes eco-friendly practices in ports, including the use of renewable energy sources, eco-friendly vehicles, and improved waste management systems.
- Sagarmala National Perspective Plan (NPP): This long-term plan focuses on developing coastal and inland waterways to enhance connectivity and efficiency in waterway transportation.
These initiatives, combined with broader government efforts like the National Infrastructure Pipeline and PM Gati Shakti NMP for Multi-Modal Connectivity, are integral to India’s comprehensive development strategy.
However, the question remains: Are there still critical components missing from this holistic approach?
Revitalizing India’s Railways
Dedicated Freight Corridors: India is developing dedicated freight corridors (DFCs) such as the Eastern Dedicated Freight Corridor and Western Dedicated Freight Corridor. These high-capacity rail lines will significantly improve the transportation of goods across the country.
Electrification and Speed Enhancement: Electrification of rail networks and speed enhancement projects have been initiated to reduce travel time and improve the efficiency of passenger and freight services.
Private Investment: Encouraging private sector participation through public-private partnerships (PPPs) has led to significant investments in rail infrastructure. This not only eases the burden on government finances but also brings in modern technology and management practices.
Challenges
Funding: Modernization efforts require substantial investment. Ensuring a steady flow of funds for infrastructure projects remains a challenge that needs to be addressed through innovative financing models and partnerships.
Last-Mile Connectivity: While major ports and railways have seen significant improvements, the focus should also be on enhancing last-mile connectivity to hinterlands and smaller towns, ensuring a more comprehensive network.
Sustainability: Sustainability is gaining importance in infrastructure development. Ports and railways need to adopt eco-friendly practices, reduce carbon emissions, and prioritize environmental concerns.
Improving Regional Connectivity through Railway and Ports Corridor
India has unveiled an extensive railway and ports corridor project that stretches from the Middle East to South Asia, marking a strategic endeavour poised to redefine regional connectivity and economic partnerships. During discussions about this ambitious undertaking at the recent G20 summit in Delhi, Indian officials emphasized its importance, particularly in the development of domestic railway connections, thereby enhancing regional transportation infrastructure.
The Significance of Regional Connectivity
Economic Growth: Enhanced regional connectivity leads to increased economic activity by reducing transportation costs, improving logistics, and boosting trade. This, in turn, stimulates economic growth in the connected regions.
Trade Expansion: Efficient transportation networks enable countries to trade goods and services more effectively, opening up new markets and opportunities for businesses.
People-to-People Contacts: Improved connectivity fosters cultural exchange and tourism, encouraging people-to- people interactions and understanding between nations.
Examples of Railway and Ports Corridors
- China’s Belt and Road Initiative: Perhaps the most prominent example, this initiative envisions a network of railways, highways, and ports connecting China to Europe, Asia, and Africa. It seeks to promote economic cooperation and development by enhancing connectivity across regions.
- North-South Transport Corridor (INSTC): Connecting India, Iran, and Russia, the INSTC is a multimodal network that aims to reduce transportation costs and time for cargo movement between South Asia and Northern Europe. It demonstrates the potential for regional cooperation and trade facilitation.
- Trans-Siberian Railway: The Trans-Siberian Railway in Russia is an iconic example of a long-distance rail corridor that spans approximately 9,289 kilometres, connecting Moscow to Vladivostok. It plays a vital role in the transportation of goods and people across Russia’s vast territory.
- Panama Canal Expansion: While not a railway or rail corridor, the expansion of the Panama Canal has had a significant impact on regional connectivity. It allows larger vessels to pass through, facilitating trade between the East Coast of the United States and Asia, benefiting multiple countries in the process.
Benefits of Railway and Ports Corridors
- Reduced Transportation Costs: Efficient corridors lower transportation costs, making goods and services more affordable and accessible for consumers.
- Enhanced Trade Opportunities: These corridors open up new trade routes and markets, providing businesses with opportunities for growth and expansion.
- Regional Economic Development: Improved connectivity stimulates economic development by encouraging investment in infrastructure and industries along the corridor.
- Cultural Exchange: Greater connectivity encourages cultural exchange and people-to-people interactions, fostering a sense of cooperation and mutual understanding.
Improving regional connectivity through railway and port corridors is a vital step toward economic growth, trade expansion, and enhanced cooperation between nations. The examples from around the world demonstrate the potential for such initiatives to reshape regional dynamics positively. As countries continue to invest in these corridors, we can anticipate greater regional integration and development, ultimately benefiting both the participating nations and the global economy.
Final thoughts…
The Indian Government is actively pursuing several initiatives aimed at modernizing its ageing railway infrastructure and elevating the overall quality of rail services. The Railway Ministry has unveiled ambitious plans to invest `5.4 trillion (equivalent to `57 trillion or US$720 billion in 2023) by 2030 for the comprehensive upgrade of the railway network. These upgrades encompass a range of measures, including the complete electrification of railways, enhancements to existing lines to improve their capacity and speed, expansion of new rail routes, modernization of railway stations, the introduction and eventual expansion of a substantial high-speed rail network connecting major cities across India, and the development of dedicated freight corridors to optimize cargo transportation costs within the country.
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Modernizing ports and rail networks is pivotal for India’s economic growth and competitiveness on the global stage. The progress made in expanding infrastructure, adopting technology, and encouraging private investments is promising. However, addressing challenges and ensuring sustainability will be key to realizing the full potential of these modernization efforts. As India continues its journey towards enhanced connectivity, the benefits will ripple across industries, spurring economic growth and improving the quality of life for its citizens.
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