Indian Railways Expands Freight Logistics with New Cargo Terminals and Rail Parcel App

Indian Railways has implemented a multi-pronged strategy to strengthen freight logistics, enhance efficiency, and improve regional connectivity. 

The initiative focuses on expanding infrastructure, improving freight terminals, and introducing digital logistics platforms to provide seamless first- and last-mile connectivity.

The efforts aim to support growing freight demand, facilitate e-commerce logistics, and improve transportation efficiency across the country.

Expansion of Gati Shakti Cargo Terminals

To improve rail freight handling capacity, Indian Railways has adopted a two-pronged approach. This includes encouraging the development of modern freight terminals under the Gati Shakti Multi-Modal Cargo Terminal Policy and upgrading infrastructure at railway-owned goods sheds.

As of March 5, 2026, a total of 128 cargo terminals have been commissioned under the policy, while in-principle approvals have been granted for 288 terminals across the railway network.

Additionally, the government has allocated ₹14,500 crore over the financial years 2023-24, 2024-25, and 2025-26 to enhance customer amenities and infrastructure at goods and parcel terminals across the country.

Joint Parcel Product Expands Logistics Services

To strengthen parcel logistics, Indian Railways introduced the Joint Parcel Product initiative in partnership with India Post in 2022 on select routes. 

The service targeted both business-to-consumer and business-to-business markets, particularly focusing on e-commerce and MSME shipments weighing between 35 kg and 100 kg.

Based on the pilot’s success, the initiative was expanded and renamed Joint Parcel Product – Rapid Cargo Service (JPP-RCS). Under this model, parcel aggregators book cargo online through the Virtual Aggregation Platform developed by Indian Railways.

Currently, 7 pairs of scheduled parcel services are operational across specific routes, generating ~₹56 crore in revenue during the current financial year up to February 2026.

Rail Parcel App Pilot Launched

To further modernise parcel logistics, the South Central Railway launched a pilot project for a digital logistics platform called Rail Parcel on February 25, 2026.

The app-based platform functions as a digital marketplace where logistics service providers offer first-mile pickup, last-mile delivery, and value-added services such as packaging, while railways handle the mid-mile transportation.

The pilot project currently operates across 17 railway stations in seven cities including Hyderabad, Visakhapatnam, Vijayawada, Guntur, Rajahmundry, Bengaluru, and Chennai. Three private logistics partners have been onboarded through an expression of interest process.

Also Read: Indian Railways Discontinues UTS App from March 1, Services Shift to RailOne!

Conclusion

Indian Railways’ freight logistics strategy combines infrastructure expansion, digital innovation, and partnerships with logistics providers to improve cargo movement. With new cargo terminals, parcel services, and digital platforms such as the Rail Parcel app, the railway network is positioning itself as a key player in India’s evolving logistics ecosystem. 

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