India’s logistics sector continues to gain efficiency, with logistics costs declining to 7.97 per cent of GDP, marking a significant milestone by global benchmarks. A major contributor to this improvement is the rapid expansion of Gati Shakti Cargo Terminals (GCTs) under Indian Railways.
Introduced under the Gati Shakti Cargo Terminal Policy, 2021, the initiative aligns with the PM Gati Shakti National Master Plan, which integrates railways, highways, ports and airports into a unified infrastructure framework. The objective is to improve multimodal connectivity, enhance ease of doing business, support Make in India, and promote balanced regional development.
GCTs function as modern railway cargo hubs designed for seamless loading, unloading and transfer of goods between rail and other transport modes. Before their introduction, freight movement across roads, railways and ports often faced congestion, delays and higher costs. The terminals now act as integrated logistics nodes, enabling faster and more efficient cargo movement.
A key operational feature of GCTs is Engine-on-Load (EOL) operations, where locomotives remain attached during loading or unloading within permitted free time. This allows trains to depart immediately after operations, reducing turnaround time and improving railway asset utilisation.
According to Indian Railways, 306 Gati Shakti Cargo Terminals have been approved nationwide, of which 118 are already operational. These operational terminals together offer a combined capacity of 192 million tonnes per annum, significantly boosting rail freight handling and contributing to lower logistics costs.
A Master Circular on GCTs, issued in 2022, provides detailed guidelines on agreements, operations and procedural flexibility to enhance terminal efficiency.
The shift towards rail-based freight through GCTs is also delivering environmental benefits. Rail transport costs less than half of road transport and produces nearly 90 per cent lower carbon emissions. Since 2014, an additional 2,672 million tonnes of freight has shifted from road to rail, resulting in an estimated 143.3 million tonnes of CO₂ emissions saved, while also easing road congestion.
Private sector participation has emerged as a cornerstone of the GCT policy. Since its launch, the initiative has attracted approximately ₹8,600 crore in private investment. Approved developers are required to complete construction within 24 months, ensuring timely project execution.
Revenue from freight handled through GCTs has increased more than fourfold between 2022–23 and 2024–25, reaching ₹12,608 crore, underscoring the growing role of these terminals in India’s logistics ecosystem.
With improved connectivity, increased private investment and a strong sustainability focus, Gati Shakti Cargo Terminals are emerging as critical enablers of India’s long-term logistics reforms, supporting a unified and efficient national logistics vision.
