Gati Shakti Multi-Modal Cargo Terminal- An Introduction to Indian Railways' New Initiative in Freight Operations

Abstract

Indian Railways play a pivotal role in transporting goods along the length and breadth of India. Obviously, Indian Railways occupies a lion's share in the supply chain network nationwide. Private parties are allowed to construct their own terminals for loading freight onto goods trains. But, as per railway policy, they are required to bear the entire expenses for construction at the take-off point even if the land on which it is constructed is owned by railways. The private parties are also required to undertake the maintenance of such terminals. It becomes a cumbersome exercise for private parties both in financial and technical terms to run a private freight terminal. Recently, the prime minister announced a policy to bring together all infrastructure projects in a single frame. The railways have introduced the Gati Shakti Multi-Modal Terminal, whereby all the expenditures are borne by the railways and private parties are free from the burden of bearing the expenditure. Since the concept was introduced recently and is gaining popularity, an attempt to measure the outcome is too early. Nevertheless, this article throws light on the major aspects of the Gati Shakti Multi-Modal Terminal policy implemented by Indian Railways.