Logistics costs plunge as 142 Gati Shakti Cargo Terminals fuel industrial growth and rail freight movement

Logistics costs plunge as 142 Gati Shakti Cargo Terminals fuel industrial growth and rail freight movement​

Boosting Industry through Gati Shakti Cargo Terminals​

The 'Gati Shakti Multi-Modal Cargo Terminal (GCT)' policy has been launched to stimulate private investment in critical logistics infrastructure. This initiative aims to encourage the establishment of specialized cargo terminals, with locations determined by industry demand, potential cargo traffic, and existing railway infrastructure capabilities. The terminals are designed to fundamentally alter supply chain dynamics across India.

Currently, 142 GCTs have been commissioned across the country. Furthermore, In-Principle Approvals (IPAs) have been granted for the development of 310 additional GCTs, signaling massive planned expansion of rail freight infrastructure. These terminals are crucial for enhancing the movement and handling of bulk commodities.

Investment and Operational Impact of GCTs​

The commissioned GCTs possess an estimated combined freight handling capacity of 224 million tonnes per annum (MTPA). A key success metric is the mobilization of approximately ₹10,000 crore in private investment through this policy framework. During the fiscal year 2025-26, these facilities managed a significant volume of 146 MT freight.

The GCTs cater to an extensive range of goods, including cement, steel, foodgrains, fertilizers, coal, fly ash, and agricultural produce. These terminals provide improved rail connectivity for local industries and agricultural products, effectively bridging production centers with consumption hubs. The enhanced logistics are vital for the stability and competitiveness of sectors like mining, manufacturing, and power generation.

Transforming Supply Chains and Economic Development​

The policy has created a ripple effect across several key economic pillars by delivering modern cargo handling infrastructure. These terminals facilitate essential value-added logistics through the provision of dedicated warehousing, cold storage facilities, and advanced rail-linked cargo services.

By improving wagon turnaround times and enhancing first-mile and last-mile logistics efficiency, GCTs are significantly reducing transportation costs. This modal shift from road transport to rail freight improves overall system efficiency. Local economies benefit immensely as these terminals foster employment and promote regional economic development for both farmers and local businesses.

Geographic Spread of Commissioned Terminals​

The deployment of these multi-modal cargo facilities spans several states, tailored to the specific industrial needs of each region.

In Andhra Pradesh, five GCTs have been commissioned. These include facilities in Nakanadooddi, Tummalacheruvu, Krishnapatnam, Jaggayyapet, and Sanjamala. Additionally, 14 locations across the state hold In-Principle Approvals (IPAs). A GCT at Tummalacheruvu is already operating, handling 1.214 MT of traffic during 2025-26.

Rajasthan has seen ten GCTs commissioned in various districts such as Pali and Jaipur. The initiative continues to grow, with IPAs granted for an additional 15 locations within the state.

Odisha currently has twelve operational GCTs distributed across Jagatsinghapur, Jajpur, Cuttack, and Sambalpur. The Odisha region also benefits from In-Principle Approvals (IPAs) given for 36 areas.

In Bihar, five GCTs have been commissioned in regions including Begusarai and Darbhanga. Madhya Pradesh has established five operational GCTs and holds approvals for 19 future developments. Karnataka currently maintains four commissioned GCTs with 18 additional IPAs granted across the state.