Railways Allocates Rs 14,500 Cr to Transform Freight & Parcel Terminals

In a written reply to a question in the Lok Sabha, Vaishnaw said the allocation covers FY2024, FY2025 and FY2026 and is aimed at strengthening freight logistics, improving rail freight efficiency and enhancing first- and last-mile connectivity.

As part of a broader strategy, the national transporter is encouraging the development of modern rail freight terminals under the Gati Shakti Multi-Modal Cargo Terminal policy while simultaneously upgrading railway-owned goods sheds, he said. As of March 5, a total of 128 cargo terminals have been commissioned, while in-principle approvals have been issued for 288 terminals across the railway network, he said.

Moreover, the minister highlighted that Container Corporation of India (CONCOR) -- a Navratna PSU -- has begun offering door-to-door parcel services using the Joint Parcel Product - Rapid Cargo Service (JPP-RCS) on the Delhi-Kolkata and Mumbai-Kolkata corridors.

The Joint Parcel Product (JPP) initiative was initially launched in 2022 in partnership with India Post to target business-to-consumer (B2C) and business-to-business (B2B) markets, particularly e-commerce and MSME segments. Under the model, India Post provides first- and last-mile connectivity, while Railways handles mid-mile transportation.

"Under the scheme, online booking of JPP-RCS (in units of VPs) is done by empanelled parcel aggregators through the 'Virtual Aggregation Platform' (VAP) developed by Indian Railways," the minister said.

Currently, seven pairs of scheduled services operate on selected routes, generating around Rs 56 crore in revenue during the current financial year up to February 2026.

Vaishnaw also said that Indian Railways has also launched a pilot "Rail Parcel" app-based logistics platform across 17 stations in seven cities, including Hyderabad, Visakhapatnam, Bengaluru, and Chennai, in partnership with private logistics providers.

- IANS