Gati Shakti Cargo Terminals Reduce Logistics Costs

The Ministry of Railways has launched the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy to encourage private investment in cargo terminals. Locations for Gati Shakti Cargo Terminals are selected on the basis of industrial demand, cargo traffic potential, availability of railway infrastructure and overall logistics potential of the area. The policy documentation sets out commercial terms and operational modalities for private investors. So far, 142 GCTs have been commissioned and in-principle approvals have been granted for development at 310 additional locations.

The 142 commissioned GCTs have an estimated freight handling capacity of 224 million tonnes per annum (224 mn t per annum). Freight handled at these terminals during 2025-26 totalled 146 million tonnes (146 mn t). Concentration of handling capacity across commissioned terminals has created regional hubs that handle bulk consignments more efficiently. The terminals serve key sectors including cement, steel, power and agriculture and are designed to streamline movement of bulk commodities.

The policy has mobilised private investment of approximately Rs 100 billion (Rs 100 bn) through the terminals to date. Officials indicated that private sector participation and the modal shift enabled by multimodal terminals are central to reducing logistics costs for bulk industries. The packaged approach aims to attract long term private capital while leveraging existing railway assets and installed capacity.

Location decisions and the staged commissioning of terminals are intended to align capacity with regional demand and existing network strengths. The ministry signalled that continued approvals and commissioning will aim to consolidate freight corridors and improve supply chain efficiency across industrial and agricultural supply chains. The rollout to date is presented as part of a strategic push to modernise freight infrastructure and lower logistics overheads for industry.

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