Sojitz Corporation (Sojitz) and Larsen & Toubro Ltd. in India (L&T) received a contract from Dedicated Freight Corridor Corporation of India Limited, a Special Purpose Vehicle under Ministry of Railways in India, to construct civil and track works for a 626 km section out of Western Dedicated Freight Corridor ("Western DFC") connecting between Delhi and Mumbai. The contract amount is approximately 110 billion yen, which is ever the largest contract under Japanese ODA loan.
Western DFC project is to construct the dedicated freight corridor with total length of 1,500km between Delhi, the capital city, and Mumbai, a commercial hub. Our contract is the first largest-scale one of the Western DFC project. The section covered by the contract connects between Rewari, Haryana in northern India and Ikbalgarh, Gujarat in the west. The contract includes civil works, track works and construction of freight terminals and bridges.
The contract was awarded to the consortium, which Sojitz and L&T associate. Sojitz, as the consortium leader, will undertake overall project management. Sojitz will also procure head hardened rails is manufactured in Japan through Metal One Corporation, a Sojitz affiliate. L&T will undertake design work, construction and project management. The construction will commence in summer of 2013 and is scheduled to be completed in the summer of 2017. The Western DFC is an Indian national project and is recognized as a symbol of Indian - Japanese economic cooperation. This project is also “Backbone” of the Delhi - Mumbai Industrial Corridor (DMIC) project,* which is being implemented through cooperation by Japan and India.
Northern India centered on Delhi is India's leading commercial and industrial region. The Western region centered on Mumbai includes Jawaharlal Nehru Port Trust (JNPT), India's largest container port. The Western DFC will contribute to India's economic development by freight transportation which is expected to undergo rapid growth between the north and the west. In addition, more than 250 Japanese companies have sites in the vicinity of the planned route, and the corridor is expected to contribute to the local business of Japanese companies.
Sojitz and L&T will also bid for civil and track works for other sections and electrification works of the Western DFC. Sojitz and L&T are also considering cooperating on other projects in India such as high speed railway project and so forth. Sojitz's railway project business has positioned India along with North America, where it has extensive experiences, as its highest priority market. By leveraging this contract, Sojitz will further expand the business in India.
