"Indian Railways Invests ₹14,000 Crore to Accelerate Cargo Movement with 200 New Gati Shakti Terminals"

Indian Railways is set to develop 200 new Gati Shakti multi-modal terminals as part of its strategy to improve freight earnings and reduce congestion on existing tracks for faster passenger train movement. The average cost for each terminal is expected to be around ₹70 crore, leading to a total investment of approximately ₹14,000 crore, according to railway officials familiar with the plan.

Railways' freight services generated over ₹2.56 lakh crore in earnings in FY24, accounting for 70 percent of total revenue. As part of the Gati Shakti Cargo Terminal Policy's first phase, around 100 multi-modal terminals are expected to be completed by 2024-25. Of these, 77 are already commissioned at an estimated cost of ₹5,400 crore.

These terminals are being constructed across various states including West Bengal, Jharkhand, Odisha, Telangana, Tamil Nadu, and Uttar Pradesh. Key operators involved in the terminals' development include Concor, Reliance, Adani, Western Coalfields, Wonder Cements, JSW, SECL, IOCL, and BPCL, among others. The routes and stations include strategic industry points such as Paradip, Jasoda, and Dahej.

Following the completion of the initial 100 terminals by the end of this fiscal year, Indian Railways plans to tender for an additional 200 terminals, each costing between ₹65-70 crore. An official noted that terminal costs could vary depending on location and construction requirements.

Gati Shakti Cargo Terminals can be developed by private entities and can be situated on non-railway land or partially/fully on railway land. For terminals on non-railway land, the operators will identify the location and obtain necessary approvals for construction. If the terminals are on railway land, the operator will be selected through an open tendering process.

The Indian Railways is aiming to increase its share in the country's freight traffic. At present, the Railways transport around 29 percent of the nation's total freight, up from 27 percent in 2020. The goal is to increase this share to 35 percent by 2030.

In FY24, the Railways moved about 1,600 million tonnes (mt) of cargo out of the total 5,500 mt carried across the country. Key freight categories included 787.6 mt of coal, 181 mt of iron ore, 154 mt of cement, and 114.4 mt from other categories, including white goods.

One official noted that the development of these multi-modal terminals would lead to faster goods movement, reducing congestion on tracks and allowing for more efficient passenger train operations. To further complement this plan, the Railways intends to add 5,000 km of new tracks every year for at least the next three to five years.

HBL