New Delhi: Indian Railways has further strengthened its position as the world’s second-largest freight carrier, supported by its vast rail network, dedicated freight corridors, growing electrification, policy reforms and rising demand for cost-effective and environmentally sustainable transportation.
The national transporter operates one of the world’s largest rail networks, spanning more than 68,000 km across the country. Its extensive reach enables it to move large volumes of essential commodities over long distances while providing an alternative to road-based freight transportation.
A major boost to freight capacity has come from the commissioning of the Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC). These corridors have enabled the operation of heavy-haul and double-stack container trains while also freeing up capacity on conventional railway routes, allowing passenger and freight services to operate more efficiently.
Bulk commodities remain at the heart of Indian Railways’ freight business. Coal alone accounts for nearly half of the total freight movement, while iron ore, cement, foodgrains and fertilisers constitute a significant portion of the remaining cargo.
According to Railways Ministry data, several major commodity segments registered strong year-on-year growth in July 2026. Iron ore loading rose 22.2 per cent, while coal and foodgrains increased by 11.5 per cent each. Fertiliser loading grew 12 per cent and other goods recorded 12.1 per cent growth.
The increase in coal movement was particularly significant as demand from thermal power plants rose. The ministry said Indian Railways increased domestic coal supplies to power plants by 20 per cent in July compared with the same month last year.
The scale of operations is reflected in the overall freight volume handled by the national transporter. Indian Railways moved around 1.7 billion tonnes of freight during 2025-26.
Cost efficiency is another major advantage of rail freight. Transportation by rail is estimated to cost around 45 per cent less than road transport on a per tonne-kilometre basis. A single freight train can also replace more than 300 trucks, helping reduce logistics expenses, traffic congestion and pressure on the country’s highway network.
Government initiatives aimed at improving India’s logistics infrastructure have further strengthened the role of railways in freight transportation. Programmes such as PM Gati Shakti and the National Logistics Policy seek to promote multimodal connectivity and encourage a greater shift of cargo from roads to rail, thereby improving supply-chain efficiency.
Cargo terminals are also expanding under the Gati Shakti initiative. As of August 7, a total of 142 Gati Shakti Cargo Terminals (GCTs) had been commissioned, with an estimated combined freight-handling capacity of 224 million tonnes per annum (MTPA).
The terminals have attracted approximately Rs 10,000 crore in private investment. Freight handled through these GCTs during 2025-26 stood at 146 million tonnes, according to government data.
The transition towards rail-based logistics has also been supported by the Container Corporation of India (CONCOR) and other private logistics operators, particularly in the movement of containerised cargo.
Technology and sustainability are emerging as additional strengths for Indian Railways. With its broad-gauge network now fully electrified, the national transporter has significantly reduced its dependence on fossil fuels while improving operational efficiency.
Double-stack container trains and long-haul freight services capable of carrying up to 360 TEUs have further increased carrying capacity. These operations have helped reduce transit times by as much as 50 per cent and can lower carbon emissions by nearly 70 per cent compared with road transportation.
The combination of scale, lower transportation costs, electrification, dedicated freight infrastructure and government-backed logistics reforms is positioning Indian Railways as a key pillar of India’s evolving freight and supply-chain ecosystem.
With inputs from IANS