Krishnapatnam Railway Co. Ltd (KRCL) a subsidiary
of Krishnapatnam Port has received an investment of Rs 125 crore from Sagarmala
Development Company Ltd for the development of the Rail Corridor connecting Obulavaripalle
and Krishnapatnam Port. The new corridor will provide direct railway link from
Krishnapatnam port situated in the east coast to Chennai Mumbai railway line.
Krishnapatnam Railway Co. is a SPV (Special
Purpose Vehicle) Joint Venture (JV) by Rail Vikas Nigam Ltd for connecting the
114 km Obulavaripalle (Kadapa district) and Krishnapatnam (Nellore) in Andhra
Pradesh. The total project cost is estimated at Rs1,850 crore.
The initiative will connect Krishnapatnam
Port on the east coast with the network of Indian Railways at Venkatachalam at
one point, and Obulavaripalle on the other. A 21 km section of the project line
from Krishnapatnam to Venkatachalam was fully operation since July 2009 in
single line, and was converted to double line from March 2014.
Commented Mr Anil Yendluri, Managing Director, Krishnapatnam Railway Co.,
"This is an extremely exciting project for KRCL. The new rail corridor
connecting Kadapa city with Krishnapatnam Port will help optimize costs,
accelerate growth while enhancing the Port’s EXIM competitiveness. This would
result in huge savings both in freight costs and time to help develop Kadapa
into a discrete trading cluster through multimodal logistics solutions."
India’s hinterland connectivity is mainly
based on surface transport, i.e. road and rail. The 114 km long rail corridor
is expected to revolutionize the ex-im trade dynamics for the hinterland
district of Kadapa. It is well poised to reduce transit time drastically by
offering a direct entry into the port.
The shareholding pattern in KRCL is RVNL 30
per cent, Krishnapatnam Port Co. Ltd 30 per cent, NMDC Ltd 15 per cent,
government of AP 13 per cent and BIL 12 per cent.
Under phase II from Obulavaripalle to
Venkatachalam (94 km), rail construction work is in full swing. Track linking
of the entire length has already been completed. Overhead equipment and signal
and telecommunications works are in advanced stage of completion.
Sagarmala is an ambitious initiative by the
government of India aimed at bringing about real change in India’s logistics
sector performance by unlocking the full potential of the coastline and
of Sagarmala is to reduce logistics cost for both domestic and ex-im cargo with
optimised infrastructure investment. Sagarmala aspires to reduce logistics
costs for ex-im and domestic cargo, leading to overall cost savings of Rs
35,000 to Rs 40,000 crore per annum
With infusion of new technology and capacity
building, the total capacity available at ports can match demands but will not
be able to handle additional traffic if the movement to and from the port is
restricted. It is, therefore, important that connectivity of major ports with
the hinterland is augmented not only to ensure smooth flow of traffic at the
present level but also to meet the requirements of projected increase in
traffic, said a release.
In India, smooth connectivity to ports is
even more important as the cargo generating centres are mainly in the
hinterland instead of in the coastal region. The long lead distance increases
the logistics cost and time variability within which the cargo can be
Under Sagarmala Program, the endeavor is to
provide enhanced connectivity between the ports and the domestic production or
consumption centres. Under the initiative more than 210 connectivity projects
have been identified for development.