Chennai Port strengthens rail connectivity with ICD Sanathnagar to drive EXIM growth and logistics efficiency

Chennai Port Authority (ChPA) has strengthened its rail-based EXIM connectivity with the commencement of container rail movement between ICD Sanathnagar, Hyderabad (CSTN) and Chennai Port (CITPL), creating a commercially attractive gateway option for Hyderabad and the adjoining hinterland, according to a release.

The inaugural movement, operated by CONCOR in association with OOCL, comprised a 40-wagon container rake with 14 FEUs and 18 TEUs, aggregating 46 TEUs. The service marks an important step in Chennai Port’s strategy to deepen hinterland connectivity and facilitate seamless movement of EXIM cargo.

A faster gateway for Far East trade

The Hyderabad-Chennai rail connectivity creates an opportunity for Far East-bound cargo to use Chennai as a commercially viable gateway. With first- and last-mile logistics costs broadly comparable to competing West Coast gateways, the Chennai route has the potential to reduce overall transit time by up to seven days, depending on cargo and service routing.

This combination of competitive inland logistics and faster market access gives exporters and importers greater routing flexibility and strengthens Chennai’s position as a gateway for South and Central Indian trade.

Chennai’s connectivity with major hubs including Port Klang, Singapore, China and Southeast Asia also provides routing options for west-bound cargo through established transhipment hubs.

To accelerate rail-based cargo growth, ChPA has constituted a dedicated Rail Connectivity Cell to work with CONCOR, other Container Train Operators (CTOs), shipping lines, logistics providers and trade to develop new rail-linked opportunities.

Focused engagement is underway with Hyderabad, Pollachi, Mysore and other key hinterland markets to increase the share of EXIM cargo moving by rail. Greater rail utilisation will support cargo aggregation, better gateway access, reduced road congestion and a more sustainable logistics ecosystem.

Mr Sachin S. Kurve, IAS, Chairperson, Chennai Port Authority, flagged off the unloading operations at Chennai Port on August 11, 2026, along with Ms Gayatri, IRTS, Area Head South, CONCOR. The Chairperson highlighted the importance of stronger hinterland connectivity in enhancing port competitiveness and facilitating trade.

ChPA has also constituted a Port Trade Facilitation Cell as a single coordination platform with Customs, terminals, shipping lines, vessel agents, CFSs, rail operators and other stakeholders, focusing on:

* Digitisation of EXIM processes

* Transhipment promotion

* Shipping line and rail connectivity facilitation

In addition, ChPA is examining commercial support mechanisms for rail-linked cargo to improve cargo aggregation and gateway competitiveness.

As Chennai Port advances its strategy to scale up container and overall cargo volumes, the objective is to ensure that the benefits extend across the logistics ecosystem—exporters, importers, shipping lines, CTOs, terminals, logistics providers and the port.

These initiatives, together with the Outer Anchorage Promotional Concession Scheme and NCCS 2026-27, reflect ChPA’s focus on connectivity, commercial responsiveness, cargo growth and Ease of Doing Business, the release added.

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