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Transport Infrastructure Opportunities in India

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Transport Infrastructure Opportunities in India Sec tor briefing T ransport infras tructure opportunities in India Why India? India’s transport sector is required to cater to the needs of 1.2 billion people. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services. The Indian government continues to attach high priority to improving the country’s transport infrastructure. Railways Indian Railways (IR) is the biggest state-owned public utility and is currently the fourth largest in the world after US; China and Russia. As a part of it vision for the future, IR is attempting a shift from its traditional approach of bottleneck removal to creation of infrastructure ahead of requirement. Initiatives The Indian government like construction of new lines, gauge conversion, doubling of lines, and enhancing continues to attach high the rolling stock manufacturing capacity for priority to improving country’s locomotives and coaches are high on its transport infrastructure agenda. Opportunities for UK railway companies in India are growing - key areas are detailed below. UK Trade & Investment Sector briefing: transport sector opportunities in India Dedicated Freight Corridors network of freight terminals to provide efficient and cost effective logistics services are now The dedicated freight corridor (DFC) project is available. Freight terminals can be Greenfield the biggest infrastructure project of the Indian facilities developed by private parties on railways. private land or brownfield facilities, that is, existing private sidings. The project envisages construction of dedicated freight lines along the eastern and western Rolling stock sides of India, covering 3358 km through 7 Indian States The coach manufacturing capacity at the Integral Coach Factory, Perambur, and Rail Western DFC project is being supported by Coach Factory, Kapurthala would be Japanese ODA assistance and the Eastern augmented to 1500 per annum each. Dedicated Freight Corridor through Asian Development Bank (ADB) assistance. New manufacturing units for coaches, electric multiple unit [EMU] / [MEMU] / [DEMU] Redevelopment of stations coaches) and high horse power locomotives (4500 – 6000 HP) for heavy haul freight and IR has identified 50 stations to develop into high speed passenger services are also being world class stations with international level planned. facilities. In India, many of the railway stations located Use of alternative fuels, such as 10 percent in major metropolitan cities individually handle blending of bio-diesel, compressed natural gas, more passengers than the combined numbers fuel cells and hydrogen fuel, would be handled by all airports of the country. The explored. stations are not adequately equipped to handle large numbers. Major metro rail projects Things like easy access or comfortable Most major cities are planning to upgrade and experience prior to boarding or after extend existing Metros or develop these if they disembarkation from trains and good quality do not exist. A total investment of nearly £12 waiting space are largely absent. Most of is envisaged in these metro projects. the stations have not been built with any architectural or aesthetic consideration. The following major metro projects are being developed: The master plan has been prepared for the Delhi Metro Phase III development of New Delhi railway station Mumbai Urban Transport Plan – new though it still needs approval from various and enhanced lines local authorities. Feasibility studies have been Bangalore Metro commissioned for Mumbai and are being Hyderabad Metro considered for a number of others. Chennai Metro Kolkata Metro – new line and extension of existing line Port rail connectivity projects High speed rail corridors Rail Vikas Nigam Limited has been mandated to undertake capacity augmentation works and Six corridors have been identified for technical rail-port connectivity projects. studies on setting up of High Speed Rail Corridors. These are: Rail-port connectivity projects cover doubling of existing single line port linkages, gauge Delhi – Chandigarh – Amritsar conversion, provision of new rail lines to ports Pune – Mumbai – Ahmedabad and also railway electrification. Hyderabad – Dornakal – Vijayawada – Chennai Container freight operations and terminals Howrah – Haldia Chennai – Bangalore – Coimbatore – Opportunities for private players in container Ernakulam freight operations and development of a UK Trade & Investment Sector briefing: transport sector opportunities in India Delhi – Agra – Lucknow – Varanasi – Further opportunities are likely from a number Patna of smaller ports in Gujarat, Kerala, Orissa, Karnataka and Pondicherry that are being This is likely to offer opportunities in the longer developed through private participation. term. Airports Ports The need for upgrading the airports India has a coast line of over 7000 Km with a infrastructure in India has resulted from an maritime tradition dating back several increasingly urban population and a significant centuries. It has twelve major ports under the increase in industrial, trade and commercial jurisdiction of the central government and one activity. hundred and eighty seven non-major ports which are controlled by the respective state India’s airports handled nearly 110 million governments. passengers during 2008-09, of which the four Metro gateway airports (Delhi, Mumbai, India, under its ten-year plan is known as Kolkata and Chennai) account for 50%of Maritime Agenda 2010-2020 plans to invest revenue and 70% of the passengers. about £42 billion in developing ports. Two new ports will be built, one on each coast, while An investment of nearly £ 20 billion is four of the existing major ports will be envisaged for the development of airport substantially upgraded. Government of India’s infrastructure till 2020. policy on privatisation of ports allows 100% FDI in the sector. The Airport Authority of India (AAI) operates most aspects of the airport (including air traffic Projects at some major ports at different control) and procures most of their equipment stages of implementation mentioned below directly (via global/local tenders). It has been will offer various opportunities. undertaking airport development both on its own and through private sector participation. Mumbai port AAI has taken the private sector participation - Creation of exclusive berth for export of route for modernisation of Delhi and Mumbai cars airports and building of green field - Mega container Terminal at JNPT for a international Airports at Bangalore and capacity of 4.4 million TEU Hyderabad airports. Chennai port The next significant opportunity will come from the modernisation of Kolkata and Chennai - Rollon/Roll off terminal at Chennai Port airports. for export of cars and Multi level car parking at Chennai Port to be built on Kolkata airport modernisation programme PPP basis. - The Chennai port plans to construct a The Committee on Infrastructure has given Mega container terminal with a capacity formal approval for the first phase of Rs. Rs50 of 4 million TEU’s on a BOT basis. billion (£625m) modernisation programme of the Kolkata International Airport. Kolkata port /West Bengal Plans include construction of a new terminal and - Dedicated container terminal at Kolkata balance for a new runway and communication port. Bids are likely to be invited and navigation System, extension of second shortly. runway, addition of three new aerobridges and - Part Privatisation of operations both at 20 additional parking bays for large aircrafts. Kolkata and Paradip ports The revamped airport in expected to handle - Deep sea port at Saugar Island at a cost about 20 million passengers every year. of £950 million off the West Bengal coast. Chennai airport modernisation programme UK Trade & Investment Sector briefing: transport sector opportunities in India A major modernisation plan for Chennai airport Tel: (0091 11) 2419 2514 will soon be underway with the Prime Minister’s Email: [email protected] Committee on Infrastructure clearing this project. Isha Agarwal Trade & Investment Adviser Base on the state government’s British High Commission, New Delhi recommendations, the Committee decided that Tel: (0091 11) 2419 2378 the Airport Authority of India (AAI) would use Email: [email protected] its internal resources to carry out the modernisation work. Derek Griffiths Head, Rail Sector The first phase of the project is estimated to UK Trade & Investment cost Rs23 billion (£290m) London Tel:00 44 (0) 20 7215 4773 In addition, opportunities will come in the Fax: 00 44 (0) 20 7215 4064 medium to long term from development of 35 Email: [email protected] non-metro airports planned by AAI. Ports sector Opportunities are likely for developers and operators, consultants and advisers specialised Jayalakshmi Jayaraman IT systems providers, safety and security Senior Trade & Investment Adviser equipment provider, Air Traffic control system British Deputy High Commission, Chennai providers, training and various areas of Tel: +91 44 4219 2151 airports supply chain. Email: [email protected] If you have any questions about opportunities in India, get in touch with the contacts listed at Sujith Thomas the end of this report. Trade & Investment Adviser British Deputy High Commission, Chennai Business opportunities aimed at UK companies Tel: +91 44 4219 2151 are added daily to the UKTI website. These Email: [email protected] leads are sourced by our staff overseas in
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