Railway Ministry Plans Expansion of Gati Shakti Cargo Terminals

The Ministry of Railways is gearing up to extend its network of Gati Shakti Cargo Terminals (GCTs), with plans to offer an additional 200 terminals to corporate entities and freight operators. Encouraged by the positive response received thus far, the ministry aims to bolster rail-based supply chains through this initiative.

According to a media reports, the establishment of these 200 terminals may necessitate private investments ranging from Rs 12,000 to Rs 14,000 crore.

In the Union Budget of 2022-23, Finance Minister Nirmala Sitharaman outlined the government’s intention to establish 100 GCTs within three years. The response to the initial 100 terminals has been robust, indicating substantial interest from the private sector, including freight operators and manufacturers, in investing in railway infrastructure. 

Gati Shakti Cargo Terminals to boost Railways’ revenue and generate employment

An official quoted by Business Standard expressed plans to proceed with the construction of 200 additional terminals once the first batch is successfully bid out.

Currently, 77 GCTs are operational, representing an investment of Rs 5,400 crore from various operators, averaging Rs 69 crore per terminal. Notable participants in this endeavor include state-owned companies and private entities such as the Adani Group, the JSW Group, Nayara Energy, Container Corporation of India, and Indian Oil.

First GCT commissioned in Asansol Division under IRCTC’s Gati Shakti Multi-Modal Cargo Terminal Policy

With the expansion of GCTs, the government aims to diversify its freight portfolio, particularly in the miscellaneous goods segment. Railway estimates suggest that each new GCT has the potential to increase rail freight volumes by a million tonnes annually, resulting in an additional revenue of Rs 100 crore for the railways.

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