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These corridors will help boost India’s industrial productivity by transporting raw materials to industrial hubs and manufactured goods to ports in a faster more efficient manner and at reduced costs. This will require the construction of warehouses with world – Private freight terminals PFT: This is expected to enable the rapid development of a net work of freight terminals and integrate rail transport with the supply chain to provide efficient logistics to end – users. The government’s dedicated freight corridor.

DFC programmed is proposed to be completed in stages with the western Delhi – Mumbai and eastern corridors Ludhiana- Delhi – Kolkata being the first  two to be developed. - I of the dedicated freight corridor. Improvement of the eastern corridor will also contribute to the development of the proposed trans- Asian Railway involving infrastructure investments in India, Bangladesh and countries further east.

Class facilities for the storage and dissemination of goods in transit. Diamond Rail corridor project a dedicated freight corridor is being commissioned in order to connect the western and eastern rail routes. In addition an investment of Rs 58.5 billion is being made n cooperation with the government of Japan to commence engineering services for phase. Indian has one of the largest rail networks in the world and is the cheapest means of transport.

 Many initiatives are being planned to increase its utility and geographic reach. One is the construction of a dedicated freight corridor with an investment of over Rs 4 billion slated for 2008- 09 and Rs 3o billion for 2009 – 10. The dedicated freight lines will help the railways increase their capacity by building high – capacity higher speed dedicated freight corridors along the golden quadrilateral.

As per the present policy the government is focusing on accelerating the development of the network for freight terminals with private investments in order to integrate rail projects with the supply chain. The government has already permitted 15 private train container operators to run container trains. It has also rolled out the following two schemes to encourage investments in rolling stock and terminals. Special freight train operator SFTO:

Through this share of railways is expected to increase in non – conventional traffic such as bulk alumina fly ash and bulk fertilizers. The recent increase in containerized cargo has led to a demand for its movement through railway containers. The government due to a lack of funds for infrastructure has opened up the sector for private investments in 2006 thus paving the way for PPPs.

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