Government To Build 200 Gati Shakti Cargo Terminals, Eyes Freight Surge On Dedicated Corridors

India’s rail logistics landscape is poised for transformation as the government plans to establish 200 Gati Shakti Cargo Terminals (GCTs).

According to the Financial Express report, the project will be implemented under the public-private partnership model over the coming years, aiming to leverage the expanding Dedicated Freight Corridors (DFCs).

Currently, the nationwide rail network has 77 operational GCTs, each costing an average of Rs 70 crore.

The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) itself runs four terminals, with six additional facilities expected to become operational in FY26 along the freight corridors.

“There are a total 115 stations on DFCs and 50-55 of them are suitable for Gati Shakti terminals. By December 25, the entire western DFC will be commissioned. Several Gati Shakti terminals are coming on this line. We are floating the tenders and there’s a lot of participation from players,” Praveen Kumar, Managing Director of DFCCIL was quoted as saying.

He highlighted the significant potential for DFCs to strengthen the financial health of Indian Railways, potentially reducing reliance on fare hikes for passengers.

While high-speed freight corridors are capital-intensive, Kumar noted that improved operational efficiencies could substantially boost railway revenues.

Presently, freight traffic constitutes 67 per cent of Indian Railways’ overall volume, with passenger services contributing the remaining 33 per cent.

Kumar expressed confidence that the commissioning of DFCs would elevate freight’s share further.

“The DFC corridors cost a staggering Rs 1,24,000 crore, but when the efficiencies are improved, a lot of cross subsidy for the passenger services may be possible,” he added at a PHDCCI event.

Although road transport currently holds a 46 per cent share in India’s logistics sector compared to railways’ 26 per cent, efforts under the PM Gati Shakti initiative, launched in October 2021, aim to shift the balance towards rail for a more sustainable transportation model.

With eastern and western DFCs designed to handle 480 freight trains daily, Kumar projected that traffic might exceed expectations once the final western section, connecting Vaitarna to JNPT, becomes operational.

Also Read: Controversy In Pakistan Over Bilawal Bhutto's Extradition Remark