Gati Shakti Cargo Terminals power India’s logistics growth as costs fall to 7.97% of GDP

India’s logistics sector is seeing continuous growth, with logistics costs now being only 7.97 per cent of GDP. This is a significant milestone in terms of global standards and, to a certain extent, it is due to efficient planning and infrastructural developments working in a coordinated manner.

One of the major factors contributing to this development is the introduction of the Gati Shakti Cargo Terminals (GCTs) project under Indian Railways, which is in line with the PM Gati Shakti National Master Plan, to be expanded over time.

The plan brings railways, highways, ports, and airports into one integrated framework. Its goal is to improve connectivity, support Ease of Doing Business and Make in India, and promote balanced regional growth.

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What are Gati Shakti Cargo Terminals and how do they work?

The Gati Shakti Cargo Terminals represent the state-of-the-art railway cargo terminals that were created based on the GCT Policy, 2021, initiated by the Ministry of Railways. A railway cargo terminal is a designated area for the loading, unloading, and transfer of goods between trains and other modes of transport.

Freight movement in India, prior to GCTs, was distributed on roads, railways, and ports. This caused delays, higher costs, and congestion. GCTs act as integrated hubs that connect these modes, making cargo movement faster and smoother.

These terminals use engine-on-load (EOL) operations. Under this system, the locomotive stays at the terminal during loading or unloading within permitted free time. Once the process is complete, the train can leave immediately, reducing delays and improving the use of railway infrastructure.

How many Gati Shakti Cargo Terminals are approved and operational?

To date, Indian Railways has given the green light for 306 Gati Shakti Cargo Terminals throughout the nation. From these, 118 terminals have been powered on already, showing good and steady progress.

The 118 terminals, which are already operational, have a total calculated capacity of 192 million tonnes per annum. The increased loading capacity is assisting in the growth of rail freight movement and thus, the reduction in logistics costs.

A Master Circular on GCTs issued in 2022 provides guidelines on agreements, operations, and changes aimed at improving efficiency.

How do GCTs support lower costs and cleaner transport?

Rail transport is more cost-effective and eco-friendly than road transport. Its cost is less than half of road transport, and its carbon emissions are around 90 per cent lower.

From 2014 onwards, 2,672 million tonnes of freight have been transferred from road to rail as an extra and this change has meant 143.3 million tonnes of CO₂ emissions saved, which in turn has helped to alleviate traffic problems as well as to achieve India's carbon neutrality target.

How much private investment has the GCT policy attracted?

Private participation is a key feature of the GCT initiative. Since the launch of the policy, about ₹8,600 crore of private investment has been mobilised.

Under the policy, agencies that receive approval must complete construction within 24 months, ensuring timely delivery and faster operational readiness of terminals.

Gati Shakti Cargo Terminals boost Indian Railways’ freight earnings

The income from freight through Gati Shakti Cargo Terminals has increased more than four times from 2022-23 to 2024-25 and has finally reached Rs 12,608 crore.

This trend denotes the increasing importance of GCTs in the logistics system of India. With faster, more reliable and better-connected services, the terminals are not only helping the railways to increase their share in freight movements out of the total but also playing a supportive role in the conduct of long-lasting logistics reforms.

Gati Shakti Cargo Terminals are being recognised as key points in the creation of a single logistics vision for India, where infrastructure, private investment and sustainability are integrated.