Railways implementing a multi-pronged freight strategy

For strengthening freight logistics, regional connectivity and to increase its freight movement share, Indian Railways has implemented a multi-pronged strategy to enhance freight efficiency, ensure seamless regional connectivity and provide robust first-and-last-mile solutions. The key initiatives are as follows:

(i) Terminal Development: To improve the efficiency of rail freight handling at the terminals, Indian Railways has adopted a two-pronged approach: encouraging development of modern rail freight terminals under Gati Shakti Multi-Modal Cargo Terminal (GCT) policy and augmenting/upgrading the infrastructure at railway owned goods sheds.

For encouraging setting up of cargo terminals through private investment, ‘Gati Shakti Multi-Modal Cargo Terminal (GCT)’ policy has been launched. Location of the GCTs is decided on the basis of demand from industry, potential of cargo traffic, availability of railway infrastructure and overall logistics potential of the area. 

So far, 142 GCTs have been commissioned with an estimated freight handling capacity of 224 million tonnes per annum (MTPA). The policy has mobilised private investment of approximately Rs 10,000 crore through these GCTs. Freight handled at the GCTs during 2025-26 was 146 MT.

(ii) Wagon Investment Schemes: The Railways has implemented various schemes for the private sector to invest in wagons, including the commodity focused specialised wagons for cement, oil, steel, fly-ash etc. So far, around 275 rakes of special purpose wagons and 397 rakes of general-purpose wagons are operational, which are expected to improve the modal share in commodities like bulk cement, fly-ash, steel products, iron ores, coal etc.  Besides, there is a separate scheme for transportation of automobiles, under which around 54 rakes owned by industry are operational.

(iii) Joint Parcel Product-Rapid Cargo Service (JPP-RCS) scheme: This scheme offers tailor-made logistics to meet specific needs of the customer and provide door-to-door parcel services. Under the scheme, provision has been made for online booking of parcel space in these services through aggregators (in addition to India Post) on ‘Virtual Aggregation Platform (VAP)’.

(iv) CONCOR, a PSU under the Ministry of Railways, is also providing door-to-door parcel services by utilising the JPP-RCS on the Delhi-Kolkata and Mumbai-Kolkata sectors. Besides, CONCOR offers door-to-door logistics under a pilot project at Sonik Goods shed.

Budget allocation and network expansion

Capacity enhancement of the rail network has been taken up by the Railways in a big way during the last 12 years. 

As on 01.04.2026, across the network, 514 infrastructure projects (169 new lines, 29 gauge conversions and 316 doublings) of total length 40,000 km, costing approx. Rs 8.31 lakh crore, have been sanctioned.

Dedicated Freight Corridors

Two Dedicated Freight Corridors (DFC) viz. Eastern Dedicated Freight Corridor (EDFC) from Ludhiana to Sonnagar (1,337 km) and Western Dedicated Freight Corridor (WDFC) from Dadri to Jawaharlal Nehru Port (JNPA) (1,506 km), have been commissioned.

On an average about 443 trains are operated every day on the DFCs. The corridors have demonstrated robust operational performance: Freight volumes have steadily increased, with higher average speeds, faster turnarounds and enhanced reliability. The DFCs have contributed to creating additional paths on the conventional network by diverting freight traffic, enabling the Railways to run additional goods and coaching services on its network.

The DFCs have been facilitating the enhanced movement of double-stack container trains, higher axle load trains, faster access to the northern hinterland from western ports and development of new terminals/linkages with industries alongside.

A new DFC connecting Dankuni in the east to Surat in the west was announced in the Union Budget 2026. Preparation/updation of the Detailed Project Report (DPR) for this corridor has been taken up.

These initiatives have helped in increasing the freight loading and revenue during the last few years to 1,670 MT in 2025-26, thereby enabling Indian Railways to emerge as the second largest freight carrying network in the world, the Union Minister for Railways, Information & Broadcasting and Electronics & Information Technology, Mr Ashwini Vaishnaw, informed Parliament.

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