The Salem division of Southern Railway has invited expressions of interest (EoI) for developing cargo-related facilities on railway land at Nallampalayam and Vijayamangalam in Tamil Nadu, aiming to enhance freight-handling capacity and generate additional revenue.
The initiative comes under Schedule III of the Railways’ Goods Cargo Terminal (GCT) policy, which promotes freight infrastructure development through the utilisation of railway land and private-sector participation.
The EoI notice was published on October 17, with bids scheduled to close and open on October 31. The proposal involves preparing a comprehensive project report under a public-private partnership (PPP) framework.
According to the tender details, the proposed facility at Nallampalayam is planned across 1,20,000 square metres of railway land, with Coimbatore North railway station identified as the nearest goods shed.
The proposed facilities are expected to improve access to rail-based freight transportation for businesses in the surrounding industrial regions, potentially reducing dependence on road transport for moving bulk goods over long distances.
J Sathish, a former member of the Divisional Railway Users’ Consultative Committee, said the facilities could support the movement of industrial raw materials and finished products, strengthening connectivity between production centres and markets. However, the types of cargo to be handled have not yet been specified.
Under the GCT framework, private participation could facilitate the development of cargo-handling infrastructure, storage facilities and associated logistics services, depending on the final project terms.
The comprehensive project report will help determine the implementation model, including whether the facilities will be developed through a PPP arrangement or directly by the Railways.
For Southern Railway, the initiative presents an opportunity to expand freight-related activities, improve regional logistics infrastructure and generate revenue through the commercial utilisation of railway land.