AVG Logistics Ltd has secured a Rs 150 crore contract from the Indian Railways. The contract is for leasing the Parcel Cargo Express Train (PCET). This special train, linking Bengaluru to Ludhiana in Punjab, is scheduled to complete one round trip weekly over the next six years. Sanjay Gupta, Managing Director and CEO of AVG Logistics Ltd, expressed enthusiasm about the Rs 150 crore contract, reported PTI. Gupta, in a company stock exchange filing said, “Earning revenue of Rs 150 crore through this contract will not only boost our revenue but also fuel our motivation to undertake many more such ambitious projects and elevate our financial performance.”
What is the Parcel Cargo Express Train?
The Parcel Cargo Express Train has evolved into an effective business tool, seamlessly integrated without imposing any additional burden on railway resources. These leased PCETs generate significant revenue for Indian Railways during their contractual periods. The transportation cost per unit through PCET is reportedly lower than that of road transportation, bringing cost benefits to both transporters and end consumers.
A solitary PCET has the capacity to transport goods equivalent to 52 trucks, contributing to reduced carbon emissions and aligning with the goal of a greener India. Additionally, this initiative aids in saving foreign exchange by minimizing fuel purchases.
The cargo express train is expected to cover the distance in 72 hours. Ludhiana is highlighted as a valuable addition to the company’s railway network, providing access to the textile market and cycle manufacturing. For those unaware, AVG Logistics Ltd specializes in road and rail transportation, reefers, cold chain, and the warehousing segment, boasting over 50 fully automated branches across the country.