Cargo On Fast Track: Railways Aims to Have 200 Gati Shakti Terminals

The Gati Shakti scheme was introduced to connect infrastructure projects, lower logistics costs, enhance connectivity, and boost job creation. The project has significantly improved Indian Railways’ revenue. The Gati Shakti Cargo Terminal serves commercial needs like freight transport. 

Gati Shakti Scheme

The central government aimed to establish 100 Gati Shakti Terminals within a five-year timeframe as outlined in the Union Budget 2022-24, however, approximately 77 out of the initially proposed 100 terminals in the first phase have been completed and commissioned. Indian Railways is progressing ahead of schedule towards this objective. The existing Gati Shakti Cargo Terminals (GCT) have attracted investments totalling Rs.5374 Cr.

Expansion

Indian Railways has recently announced that it is expanding its Gati Shakti Cargo terminal network by planning to establish 200 additional terminals. This move aims to enhance freight earnings and ease track congestion. Each terminal is estimated to cost around Rs.70 Cr, totalling approximately Rs.14,000 Cr for all terminals.

In FY24, Railways earned over Rs 2.56 lakh crore, with 70% of earnings coming from freight services. The 77 already operational terminals are situated in states like West Bengal, Jharkhand, and Tamil Nadu, involving operators such as Reliance Industries and Container Corporation of India Limited(Concor).

Future Prospect

Through this project, Indian Railways aims to raise its share of the country’s freight traffic from 29% to 35% by 2030, primarily transporting coal, iron ore, and cement. The multi-modal terminals enable faster movement of goods and track de-congestion, aligning with the plan to add 5,000 km of new tracks annually for the coming years.

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Conclusion: While Gati Shakti is a good step, it needs to deal with problems related to how things are organized and the overall economy, which are affected by high government spending. So, having clear and steady rules in place is very important for this initiative to work well. With approximately 77 terminals already operational, Indian Railways has exhibited great progress, further emphasizing its commitment to improving the transportation infrastructure of the country which will further lead to overall economic growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.