Railways to introduce freight-cum-passenger trains to boost cargo ops

Prime Minister's Office keen on the project, discussed during the latest sectoral review, officials said

The Ministry of Railways is set to launch freight-cum-passenger trains to enhance its revenue from time-sensitive parcel and small cargo shipments, according to sources familiar with the development.

 

“The train will be a double-decker model within the existing framework of dimensions—freight will be transported on the ground floor, while passengers will be seated on the upper deck. The design has been approved, though some finer details are still being worked out,” a senior government official told Business Standard.

 

The project was discussed with Prime Minister Narendra Modi and the Prime Minister’s Office (PMO) during a sectoral review of the railways in late 2024, with the PMO encouraging further exploration of this concept, an official added.

 

“The idea is to capture small cargo such as parcels and e-commerce shipments currently reliant on road transport. This aligns with the ministry’s strategy to diversify its cargo portfolio and remain competitive as a transporter,” the official said.

 

Queries sent to the Ministry of Railways remained unanswered at the time of publishing.

 

Freight revenue diversification 

The ministry aims to achieve a target of 3,000 million tonnes of cargo by 2030. Currently, coal and iron ore collectively account for 60 per cent of Indian Railways’ freight revenue. While the overall freight volume has been growing, experts have previously highlighted the need for faster growth in miscellaneous goods if the railways intends to meet its targets.

 

In 2023-24, the ministry set a revised target of Rs 13,227 crore from miscellaneous goods. Though this represented an improvement over 2022-23 earnings, it was 6.8 per cent lower than the estimates set during the February 2023 budget.

 

Prototype and rollout 

The Rail Coach Factory in Kapurthala has been developing the prototype for the freight-cum-passenger train. Each coach is expected to cost approximately Rs 4 crore.

 

“So far, the coach factory has built 10 of these coaches. A complete rake is being assembled and will be deployed on select routes based on movement patterns and cargo needs. Lessons from this initial phase will guide future scaling efforts,” the official said.

 

This marks Indian Railways’ first venture into the concept of cargo liners. The ministry is also exploring collaborations with India Post to capture a larger share of the courier business.

 

Operational challenges 

A former senior railway official noted that logistical challenges, particularly regarding timely unloading of parcels, could pose hurdles to scaling up the project. “Since parcels are limited to specific coaches and need faster handling, delays in unloading cargo could affect passenger train punctuality,” the official said.

 

In 2023-24, rail freight grew by 5 per cent to 1,591 million tonnes. Experts estimate that Indian Railways must achieve a compounded annual growth rate (Cagr) of 10 per cent through 2030 to meet its freight target and reduce its reliance on raw materials for transportation.