NITI Aayog Study on Rail Freight

29 May 2025 CW Team

NITI Aayog, a government think tank, has invited Expressions of Interest (EoI) for a study aimed at enhancing rail container freight transportation in India. The initiative seeks to identify and address regulatory constraints, ultimately increasing the proportion of goods moved by rail.

It is projected that by 2026, the national freight ecosystem will handle a total commodity volume of 6,366 million metric tonnes (MT), with container traffic accounting for 411 million MT. Currently, thirty per cent of non-bulk freight is transported by rail or rail-intermodal, while sixty-six per cent relies on road transport. The study will analyse global container pricing models and Indian Railways' freight pricing techniques to understand factors influencing modal share.

Furthermore, the research will delve into private container operations, pinpointing key challenges such as extended wagon turnaround times and last-mile connectivity issues. It will also provide policy recommendations for cargo consolidation, particularly for parcel and Less-than-Container Load (LCL) consignments, and suggest methods to attract more customers to rail for non-bulk movements. The study intends to propose suitable parameters for rationalising freight charges to improve competitiveness for domestic industries.

The scope also includes examining issues faced by Inland Container Depots (ICDs) and Container Freight Stations (CFSs), assessing terminal handling facilities, and evaluating the demand and supply of containers to mitigate potential shortages.

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