Indian Railways To Launch Double-Decker Trains With Passengers On Top And Freight Below As PM Modi Approves Innovative Idea

The Ministry of Railways is preparing to launch innovative freight-cum-passenger trains aimed at capturing a share of the time-sensitive parcel and small cargo shipment market, according to sources of Business Standard.

A senior government official disclosed, “The train will be a double-decker model within the existing framework of dimensions—freight will be transported on the ground floor, while passengers will be seated on the upper deck. The design has been approved, though some finer details are still being worked out.”

This concept was presented to Prime Minister Narendra Modi during a sectoral review of the railways in late 2024, where the Prime Minister’s Office (PMO) expressed support for further exploration of the project.

The initiative aligns with Indian Railways’ broader strategy to diversify its freight revenue base and compete with road transport. “The idea is to capture small cargo such as parcels and e-commerce shipments currently reliant on road transport,” the official explained.

Coal and iron ore currently account for 60 per cent of the railways’ freight revenue. To meet its ambitious target of transporting 3,000 million tonnes of cargo by 2030, the ministry aims to accelerate growth in miscellaneous goods, including parcel shipments.

In 2023-24, the ministry revised its target for miscellaneous goods revenue to Rs 13,227 crore, reflecting a 6.8 per cent shortfall from earlier budget estimates.

The Rail Coach Factory in Kapurthala is spearheading the development of the prototype for these trains, with each coach costing approximately Rs 4 crore.

“So far, the coach factory has built 10 of these coaches. A complete rake is being assembled and will be deployed on select routes based on movement patterns and cargo needs. Lessons from this initial phase will guide future scaling efforts,” the official added.

This marks Indian Railways’ first foray into cargo liners, with potential collaborations with India Post under consideration to capture a larger share of the courier market.

Experts have raised concerns about logistical hurdles, particularly regarding the timely unloading of parcels. A former senior railway official commented, “Since parcels are limited to specific coaches and need faster handling, delays in unloading cargo could affect passenger train punctuality.”

In 2023-24, rail freight grew by 5 per cent to 1,591 million tonnes. Experts estimate that Indian Railways must achieve a compounded annual growth rate (CAGR) of 10 per cent through 2030 to meet its freight targets and reduce dependency on raw materials for transportation.