The new services, which will run between Bandra Terminus and Gorakhpur, as well as from Udhna to Chhapra, are set to provide greater travel options at special fares. !!

The introduction of railways in India in 1853 was envisioned to boost trade and haul freight in a reliable and efficient way. Since then, the Indian rail network has grown to become the fourth largest in the world. With India on its way to becoming the world’s third-largest economy by 2027, the railways continue to play a pivotal role in facilitating the movement of goods across the country. Indian Railways achieved its best-ever freight loading of 1512 MT during FY 2022-23. With an increase in manufacturing and trade levels, India is witnessing a modal shift to rail and can benefit in many ways by accelerating the transition to containerised cargo – a move that will make trade more reliable, efficient, seamless, and sustainable.

Advantages of containerised cargo in rail

The share of rail in the movement of freight in India stands at 27-28%. Coal and other bulk commodities like steel, iron ore and cement account for more than half of this. In comparison, India’s container traffic is around 4% of the total rail freight volume, with the export-import (EXIM) sector accounting for most of this share. The share of containers moved domestically by rail is a mere 1% as compared to countries with comparable rail infrastructure, such as the US, where the share of domestic containers is around 10%.

As India moves towards multimodal logistics and looks to increase the share of rail in freight movement to 45%, it is important to unlock the potential of containerised cargo to boost efficiency and reliability on domestic routes. From a sustainability standpoint, the railways produce only 36 gm of CO2 per ton kilometre, compared to 96 gm of CO2 per ton kilometre produced by long-haul trucks, and 946 gm of CO2 per ton kilometre produced by international aviation. The use of railways for long-distance containerised freight movement is thus not only a secure, low-carbon option but can also reduce traffic and congestion.

There are three big reasons why containerised rail cargo is imperative to unlocking the full potential of India’s robust rail network.

The first piece in multimodal logistics: Containerising rail cargo leads to standardisation of the goods being transported. This means that freight can be easily exchanged by multimodal networks with the same set of handling equipment. This holds true even for special temperature-controllable containers, or reefers, which can be passed on easily from rail to trucks and vice versa.
Flexibility and security: By leveraging containers in rail transportation, customers and traders are assured of flexibility and security. Containers can accommodate various types of cargo including automobiles, electronics, foodgrains, pharmaceutical products, textiles, and more. Refrigerated containers (reefers) can transport temperature-sensitive items such as pharmaceutical drugs and perishable food items. Containers provide an added measure of security by protecting the cargo from the external environment. Furthermore, they can be locked and sealed, which means that they are safe and tamper-proof.
Speed and economies of scale: Rail is a reliable and secure mode of transport. It avoids road congestion and ensures reliable delivery timelines, thereby leading to better inventory management. Moreover, the standardisation of cargo through containers enables swifter handling between different modes of transport. It enables movement of 90 containers in one train which decreases the need to manage 90 trucks, thus enabling economies of scale and reducing loss from thefts or breakages.