Amazon India and Indian Railways Boost E-Commerce Logistics

30 Aug 2024 CW Team

Under the agreement, Amazon India and Indian Railways will collaborate to develop a hub-and-spoke model for a specific origin-destination pair. This pilot project will help identify the necessary requirements for scaling the model across the railway network. The plan includes addressing first and last-mile delivery needs, optimizing transit times, exploring cost-effective options, and implementing policy enablers to boost parcel volumes on railways.

Amazon India will also provide recommendations to ensure a reliable distribution network for parcel logistics through railways, aiming to maintain consistent operational timelines for the e-commerce sector.

Abhinav Singh, Vice President of Operations at Amazon India, commented, "Since 2019, we have collaborated to create an innovative logistics model that combines Amazon's e-commerce expertise with Indian Railways' vast and reliable network. Going forward, we remain committed to driving more innovations alongside the Indian Railways to better serve our customers."

Ravinder Goyal, Member (Operations and Business Development) at Indian Railways, highlighted the importance of the collaboration, stating, "This partnership will help railways understand the needs of e-commerce businesses and plan transport services accordingly. The MoU is an important step towards enhancing the movement of e-commerce cargo through Indian Railways."

Over the past five years, Amazon India has significantly expanded its operations with Indian Railways, growing from using just one train in 2019 to over 120 trains in 2024, covering 130 intercity routes across 91 cities. In 2023, Amazon became the first e-commerce logistics company to use Dedicated Freight Corridors, which are designed to improve freight train speeds, decongest the rail network, and reduce logistics costs.

Amazon Transportation Services Private Limited (Amazon India) and the Ministry of Indian Railways signed a Memorandum of Understanding (MoU) to strengthen their existing partnership and enhance the transportation of Amazon packages through the Indian Railways network. Under the agreement, Amazon India and Indian Railways will collaborate to develop a hub-and-spoke model for a specific origin-destination pair. This pilot project will help identify the necessary requirements for scaling the model across the railway network. The plan includes addressing first and last-mile delivery needs, optimizing transit times, exploring cost-effective options, and implementing policy enablers to boost parcel volumes on railways. Amazon India will also provide recommendations to ensure a reliable distribution network for parcel logistics through railways, aiming to maintain consistent operational timelines for the e-commerce sector. Abhinav Singh, Vice President of Operations at Amazon India, commented, Since 2019, we have collaborated to create an innovative logistics model that combines Amazon's e-commerce expertise with Indian Railways' vast and reliable network. Going forward, we remain committed to driving more innovations alongside the Indian Railways to better serve our customers. Ravinder Goyal, Member (Operations and Business Development) at Indian Railways, highlighted the importance of the collaboration, stating, This partnership will help railways understand the needs of e-commerce businesses and plan transport services accordingly. The MoU is an important step towards enhancing the movement of e-commerce cargo through Indian Railways. Over the past five years, Amazon India has significantly expanded its operations with Indian Railways, growing from using just one train in 2019 to over 120 trains in 2024, covering 130 intercity routes across 91 cities. In 2023, Amazon became the first e-commerce logistics company to use Dedicated Freight Corridors, which are designed to improve freight train speeds, decongest the rail network, and reduce logistics costs.

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