India and the Republic of Korea Sign MoU for Cooperation in Railways
India and the Republic of Korea Sign MoU for Cooperation in Railways
India and the Republic of Korea/South Korea have signed an MoU or Memorandum of Understanding on 17th November, 2014 for facilitating technical cooperation in Railways between the two nations.
According to media reports and the national press release, ”The MoU will enable technical assistance and cooperation between the Railways of the two countries on areas such as High Speed Rail, Modernisation of Rolling Stock, Railway Operations, Modernisation of Signalling, Construction & Maintenance technologies and in development of Logistics Parks/Terminals.”
The MoU has been signed in Seoul between the Ministry of Railways, Government of India and the Ministry of Land Infrastructure and Transport (MOLIT) of the government of South Korea/ Republic of Korea. The MoU on Technical Cooperation in the rail sector was signed by Shri Arunendra Kumar, (Chairman, Railway Board) from the Indian government’s side and Mr. Yeo Hyung Koo, (Vice Minister, MOLIT) from the South Korean government’s side.
As part of this MoU, South Korea will cooperate with India and provide technical expertise regarding the modernisation of the Indian railways under the MoU signed in Seoul.
Arunendra Kumar, Chairman, Railway Board represented India at the signing of the MoU, while the Korean side was represented by Yeo Hyung Koo, Vice-Minister, MOLIT. The agreement has been signed within few days of the new Railways Minister Suresh Prabhakar Prabhu taking charge. Modernisation of the Indian Railways is a major priority for the new Railways minister. 100% FDI has been allowed in railway infrastructure by the Modi government which also looks to bolster the Make in India initiative; new projects identified for FDI include 11 freight lines. This includes 3 new freight lines namely:
• Dankuni- Gomoh;
• Whitefield – Kolar;
• North – South Dedicated Freight Corridor that will connect Delhi to Chennai.
The Indian Railways has been running around 11,000 trains on a daily basis. Of these, around 4,000 trains are used for transporting goods. The Indian Railways earned revenue from freight traffic that raised the percentage earnings by 8.5% year over year. Now the focus should be on improving revenue from non-freight services as well.
As consumers have a choice between low budget airlines and Indian railways, something special will have to be part of the rail services to add customers to it. This would include state of the art infrastructure as well as improved efficiency in service. As the government is already working towards improving the state of the Indian railways, assistance from developed nations such as South Korea is a welcome move.
With new advancements in technology, it is important for the Indian Rail sector to keep up with the changes. State of the art infrastructure will go a long way in improving the services and brightening the prospects of this important sector.
