Indian Railways plans 23 new container terminals to enhance cargo movement

The container terminals will be spread across various states, including five in Maharashtra, four in Tamil Nadu, three in Rajasthan, and two each in Delhi and Haryana

India is preparing to establish dedicated container rail terminals at 23 locations across the country to enhance the movement of export-import (exim) cargo via its railway network, according to a report by The Economic Times.

 

Quoting sources familiar with the initiative, the report noted that the Indian Railways has proposed more favourable financial terms to private concessionaires interested in developing these container terminals. However, handling bulk cargo such as coal and iron ore will not be permitted at these facilities.

 

The container terminals will come up in different states, including five in Maharashtra, four in Tamil Nadu, three in Rajasthan, and two each in Delhi and Haryana. Additional terminals are expected to be set up in states like Jharkhand, Madhya Pradesh, and West Bengal. Chhattisgarh, Odisha, Andhra Pradesh, and Uttar Pradesh are also set to host such exclusive facilities, the report said.

 

In 2023-24, container loading on the Indian Railways reached 85.58 million tonnes (mt), compared to 79.22 mt in the previous year. Over 80 per cent of these containers were used for exim trade. The budget for the financial year 2025 projected that container loading is expected to increase to 91 mt, generating an estimated revenue of Rs 9,164.47 crore.

 

The initiative aims to attract private sector investment for developing the terminals, with private players allowed to recoup their investment through concessional loading charges. Eligible freight train operators will also benefit from a hub-and-spoke model at these terminals.

 

The report quoted Manish Puri, president of the Association of Container Train Operators, as saying that the hub-and-spoke approach enables operators to consolidate containers from different locations and transport them on long-distance routes while benefiting from concessional rates. This model avoids higher charges that would otherwise apply to short-distance bookings at hub points.

 

The revised guidelines also allow for container storage at terminals, enabling operators to manage larger volumes more efficiently. Puri added that the Indian Railways' earlier practice of imposing higher terminal access charges for exceeding certain container loading levels has been replaced with a flat fee under the new policy. This move is expected to promote greater containerisation of cargo.

 

Meanwhile, Indian Railways achieved a notable milestone in freight loading, with 126.97 million tonnes (mt) loaded in August 2024 alone, bringing the cumulative total for the financial year 2025 up to August to 653.22 mt, according to a press release from the Railway Board.

 

The ministry highlighted that this represents a significant increase compared to the 634.68 mt recorded during the same period in the previous financial year. For 2023-24, Indian Railways had loaded a total of 1,591 mt of freight, generating revenue amounting to Rs 1,68,276 crore.