Japanese loan boosts development of India’s rail freight network

By on Jul 29, 2010

The Japan International Cooperation Agency (JICA) has signed a loan with the Indian government to help develop the country's freight rail network, adding to what will be the largest amount of ODA loan ever allocated by Japan to a single project

This is the second phase of the Japanese-Indian collaborative Dedicated Freight Corridor (DFC) project

The loan, worth US$185 million, will help build 552 km of track for rail freight traffic inthe country's ‘western corridor' between Delhi and Mumbai

As part of this initiative, a dedicated freight railway line will be constructed, complete with fully automated signals and communication systems The loan will also fund high-speed trains designed for freight transportation, as well as an initial review of the basic infrastructure design and tender preparation process

India's rail freight volumes have increased at the rate of 15% per year since 1991 Developing and upgrading the railway system is therefore high on the agenda if the infrastructure is to keep up with further growth