Krishnapatnam Railway Company Ltd (KRCL), has received an investment of Rs. 125 crore from Sagarmala Development Company Ltd for the development of the rail corridor connecting Obulavaripalli and Krishnapatnam Port.
Krishnapatnam Railway Company Ltd is a SPV (Special Purpose Vehicle) Joint Venture (JV) by Rail Vikas Nigam Limited for connecting 114 kms Obulavaripalli (Kadapa district) and Krishnapatnam (Nellore) in Andhra Pradesh. The total project cost is estimated at Rs.1850 cr.
The initiative will connect Krishnapatnam Port on the east coast with the network of Indian Railways at Venkatachalam at one point and Obulavaripalli on the other. A 21 KM Section of the project line from Krishnapatnam to Venkatachalam is fully operation since July, 2009 in single line and was converted to double line since March 2014.
Commenting on the Occasion Mr. Anil Yendluri, Managing Director, Krishnapatnam Railway Company Limited, said, “This is an extremely exciting project for KRCL.
The new rail corridor connecting Kadapa city with Krishnapatnam Port will help optimise costs, accelerate growth whilst enhancing the city’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 multi-modal 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 revolutionise the EXIM trade dynamics for the hinterland disctrict of Kadapa. It is well poised to reduce transit time drastically by offering a direct entry into the port.
The shareholding pattern is KRCL is RVNL 30.00%, Krishnapatnam Port Co. Ltd, 30.00%, NMDC Ltd 15.00%, Govt. of A.P. 13.00% and BIL 12%.
Under phase II from Obulavaripalle to Venkatachalam (94 Km.) the progress of rail construction work is in in full swing. Track linking of the entire length has already been completed. Over Head Equipment’s and Signal & Telecommunications works are in the advanced stage of completion.
Sagarmala is an ambitious initiative by Government aimed at bringing about a stepping change in India’s logistics sector performance, by unlocking the full potential of India’s coastline and waterways. The vision of Sagarmala is to reduce logistics cost for both domestic and EXIM cargo with optimized infrastructure investment.
Sagarmala aspires to reduce logistics costs for EXIM and domestic cargo leading to overall cost savings of INR 35,000 to 40,000 cr. 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.
In India, smooth connectivity to ports is even more important as the cargo generating centers 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 delivered.
Under Sagarmala Programme, 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.
Source: Press ReleasePrevious Next
Huge Opportunities For Investment in Maritime Sector: Nitin Gadkari
India Shipping and Offshore Summit