For years, India’s logistics story was defined by fragmentation. Freight moved slowly, costs were high, and railways, despite being cleaner and cheaper, were unable to capture their full potential because cargo handling remained scattered and poorly integrated with roads, ports, and industrial zones. While reviewing infrastructure and logistics reforms under the PM Gati Shakti framework, Prime Minister Narendra Modi has emphasised that infrastructure must work as a system, not as isolated assets, with speed, coordination, and outcomes guiding public investment.
Until the last decade, cargo terminals on the rail network largely functioned as basic loading and unloading points. Multimodal integration was limited, private participation was minimal, and delays were common due to outdated handling systems and procedural bottlenecks. As a result, industries increasingly relied on road transport, even though it was costlier and more polluting. The absence of modern logistics hubs also meant that India remained dependent on inefficient supply chains, undermining competitiveness and inflating logistics costs as a share of GDP.
That approach has shifted decisively with the introduction of the Gati Shakti Multi-Modal Cargo Terminal Policy in December 2021. Anchored in the PM Gati Shakti National Master Plan, the policy reimagines railway cargo terminals as integrated logistics hubs that connect rail seamlessly with roads, ports, and airports. Under this framework, Indian Railways has approved 306 Gati Shakti Cargo Terminals, with 118 already commissioned, signalling a move from incremental upgrades to systemic reform in freight infrastructure.
The scale of change is visible in outcomes. The commissioned terminals together offer an estimated handling capacity of 192 million tonnes per annum, directly contributing to lower logistics costs and faster cargo movement. Private investment of around ₹8,600 crore has flowed into terminal development, reflecting growing industry confidence in rail-led logistics. Freight revenues from these terminals have risen more than fourfold between 2022–23 and 2024–25, reaching ₹12,608 crore, underlining their commercial viability and operational impact.
A critical feature of the new terminals is their operational design. Gati Shakti Cargo Terminals function with engine-on-load operations, allowing locomotives to remain stationed during loading or unloading so trains can depart immediately on completion. Combined with mechanised systems such as silos and automated handling, this reduces detention time and improves asset utilisation. These efficiencies are central to Indian Railways’ broader objective of increasing its share in freight movement while offering faster and more reliable services to industry.
The environmental and economic implications are equally significant. Rail transport costs less than half of road transport and emits nearly 90 per cent less carbon. Since 2014, an additional 2,672 million tonnes of freight have shifted from road to rail, resulting in an estimated saving of 143.3 million tonnes of CO₂ emissions. This shift aligns logistics reform with India’s sustainability goals while easing congestion on highways and reducing fuel dependence.
The impact of Gati Shakti Cargo Terminals is also regionally diverse. The Manesar terminal in Haryana, developed at Maruti Suzuki’s manufacturing hub, has emerged as the country’s largest automobile cargo terminal, capable of handling 4.5 lakh vehicles annually. In the Northeast, terminals such as Moinarband and Cinnamara in Assam are strengthening supply chains for petroleum products, food grains, fertilisers, and general cargo, while new facilities under construction promise deeper multimodal connectivity in a region long constrained by high logistics costs. In Gujarat, the New Sanjali terminal on the Western Dedicated Freight Corridor marks a milestone as the first Gati Shakti terminal developed on private land along the corridor.
Looking ahead, the policy’s significance lies not only in numbers but also in direction. With time-bound construction mandates, simplified approvals, and integration with digital planning tools under PM Gati Shakti, cargo terminals are being positioned as strategic economic infrastructure. As more locations are identified based on industrial demand and regional growth, the network is expected to support the Make in India, Ease of Doing Business, and Atmanirbhar Bharat objectives. In doing so, Gati Shakti Cargo Terminals are transforming Indian Railways from a carrier of bulk goods into the backbone of a modern, competitive, and sustainable logistics ecosystem.
