In a significant development, Indian Railways has announced plans to establish more than 200 new Gati Shakti cargo terminals across the country. This announcement comes after the successful operationalization of 100 Gati Shakti cargo terminals, which was originally targeted for completion by 2027 but was achieved two years ahead of schedule.
The Gati Shakti cargo terminals, also known as GCTs, are designed to handle non-passenger commercial parcels and improve the efficiency of freight movement by rail. The Indian government's focus on strengthening various infrastructure sectors, including rail transportation, under the Gati Shakti Master Plan has led to this development.
The new plan involves an estimated investment of approximately ₹14000 crores in the railways. The primary objective of this expansion is to further integrate and streamline freight movement, making it more efficient and cost-effective. The government aims to increase the share of railways in the total freight movement across the country, which currently stands at around 30%.
The operationalization of the initial 100 Gati Shakti cargo terminals has already shown promising results. For instance, the total freight loading by Indian Railways in the April-July 2023 period was 5077 million tons, compared to 501 million tons in the same period the previous year, marking a growth of 1.23%. Similarly, the earnings from these terminals during the same period were 5545 crores, a growth of 3.2% compared to the previous year's 5373 crores.
The data from the Indian Railways' Air and Pay Data reveals that out of the total cargo movement of 5500 million tons across the country, 1600 million tons were moved by the railways. This accounts for 30% of the total cargo movement, indicating a significant performance improvement.
The government's decision to establish 200 new cargo terminals, expanding the Gati Shakti cargo terminals network, is expected to further enhance this performance. The Indian Railways has tendered for 200 more GCTs, with an estimated cost of 12000 to 14000 crores. The cost of building a terminal is generally around 65 to 70 crores.
The expansion of the Gati Shakti cargo terminals is expected to benefit the Indian Railways in several ways. It will facilitate containerization, making the transportation of heavy goods easier. This will also encourage more goods owners to prefer railways for transportation, thereby increasing the railways' revenue. Furthermore, it will enable the railways to provide better plant services for larger quantities of goods, enhancing its overall competitiveness in the logistics sector.
In conclusion, the Indian Railways' plan to establish 200 more Gati Shakti cargo terminals is a significant step towards enhancing the efficiency of freight movement in the country. With an estimated investment of ₹14000 crores, this move is expected to bring numerous benefits to the Indian Railways, including increased revenue and improved competitiveness in the logistics sector.
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