Issue 7 - December 2006

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New freight corridor in India

The Indian Prime Minister, Dr Manmohan Singh, said that the freight corridors could significantly boost the country's economic development and could make Indian goods more competitive in global markets by reducing transportation cost, the Hindu Business Line announced.

The dedicated western freight corridor, for double stock container trains, with a track length of 1,469 km and seven feeders, linking Jawaharlal Nehru port to Dadri near Delhi, is expected to be completed in five years at a cost of Rs 11,446 crore (US$2.52 billion). The 1,232 km eastern freight corridor and 17 feeder routes for coal and steel transportation will be interconnected with the western corridor. The total length of the dedicated freight corridor is 11,500 km and is expected to involve an investment of Rs 1,00,000 crore (US$22 billion).

Indian Railways reported an increase of 15.85% in its freight revenue during the first half of the current year, from US$354 million to US$431 million, compared to the same period in 2005.

(Source: The Hindu Business Line)

Bulgaria to split national rail

Railway Gazette International quoted the Bulgarian transport minister Peter Mutafchiev as announcing that financially independent passenger, freight and traction divisions of BZD will be created as subsidiaries of a holding company. Investors are invited to participate in the management of electricity and telecommunications departments of the Bulgarian State Railway Infrastructure Co, which will incorporate also traffic division, as part of the restructuring that will take effect from January 2007.

(Source: Railway Gazette International)

Trans-Asian Railway agreement

On 10 November 2006, eighteen countries signed at Busan, Republic of Korea, the Intergovernmental Agreement on the Trans-Asian Railway Network. "The Trans-Asian Railway Network Agreement (TAR) constitutes another step towards the identification of a trans-continental, integrated, international, intermodal network to facilitate international trade and tourism," said Kim Hak-Su, executive secretary of the United Nations Economic and Social commission for Asia and the Pacific (UNESCAP).

The Trans-Asian Railway is a network of 81,000 km of lines serving 28 UNESCAP countries from the Pacific to Europe. The agreement is expected to accelerate the establishment of an international transport system that will link or provide access to capital cities; main industrial and agricultural centres; major air, sea and river ports; and major container terminals and depots.

According to the UNESCAP, the TAR will be deposited with the UN Secretary-General in New York and remain open for signature for two years.

(Source: United Nations Economic and Social Commission for Asia and the Pacific)

Massive investments for Trans-Siberian

Russian Railways (RZD) will invest 7.1 billion euros in the 9,288 km long Trans-Siberian Railway as part of Russia’s federal programme up to 2010, International Railway Journal reports.

The Trans-Siberian Railway is the most important railway landbridge between the Far East and Europe. RZD carries more than 70% of all freight in Russia, excluding oil and gas moved by pipeline and is planning to launch in 2007 a new Europe–Asia Pacific container service, that will include port handling, insurance and related services.

The Swedish company Ikea is reported to be interested in using the railway to move its products from China to Russia and Europe.

(Source: International Railway Journal)

North American railroads plan bigger spending in 2007

Railway Age’s annual survey shows that most North American railroads plan to increase spending for capital improvements in 2007. Canadian National plans to spend $C1.6 billion compared with this year’s $C1.5 billion. Canadian Pacific Railway spending will be in the range of $C885-895 million, a 10% rise. Union Pacific will increase spending by 15%, to US$3.2 billion. CSX’s capital budget in 2007 will remain around this year’s level of US$1.3-1.4 billion. Norfolk Southern plans a 10% increase from US$1.2 billion this year.

(Source: Railway Age)

Derailments in Japan and Indonesia

A two-car train derailed and landed on its side on 19 November 2006 in the western Okayama prefecture in Japan, injuring 24 passengers as well as the driver, according to Japan Times.

West Japan Railway Company suspected a huge rock might have been loosened by a landslide and rolled over the tracks, bending them. JR West employees said they found fallen rocks around the rails.

A day later on the island of Sumatra two coaches of an Indonesian train derailed and one plunged into a river, killing at least eight people and injuring nearly 40, hospital officials and the Antara news agency said, quoted by Reuters.

(Sources: Japan Times, Reuters)

Dutch train crashes

Two trains passing a red signal caused head-on collisions and disrupted rail traffic in The Netherlands. On 21 November 2006, a freight train was reported running into a passenger express near Arnhem, injuring 11 people. A day earlier, a container train collided with an empty passenger train in Rotterdam, damaging the track and the power lines.

(Source: Dutch News)

If you have any feedback, please contact Gabriel Craciun, ITF Senior Researcher (railinfo@itf.org.uk)

Related documents:
Railway News Issue 7 - December 2006 (29kb PDF)

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