Gati Shakti Cargo Terminals and India’s Logistics Transformation

• 15 Jan 2026

For Prelims: Gati Shakti Cargo Terminals, PM Gati Shakti National Master Plan, World Bank Logistics Performance Index, Dedicated Freight Corridors 

For Mains: Role of logistics infrastructure in India’s economic growth, PM GatiShakti National Master Plan and integrated infrastructure planning

Source: PIB 

Why in News?  

Gati Shakti Cargo Terminals (GCTs) have emerged as a central driver behind India’s logistics costs falling to 7.97% of GDP, highlighting the impact of PM Gati Shakti National Master Plan in creating an integrated, efficient, and multimodal logistics ecosystem.

Summary 

• Gati Shakti Cargo Terminals, backed by PM GatiShakti and logistics reforms, have helped reduce India’s logistics costs to 7.97% of GDP by improving multimodal connectivity, rail-based freight, and supply-chain efficiency. 
• Despite progress, road dominance, last-mile gaps, capacity constraints, and sustainability challenges remain, requiring continued infrastructure investment, digital adoption, and green logistics measures.

What are the Gati Shakti Cargo Terminals (GCTs)? 

• About: GCTs are modern multi-modal railway cargo hubs developed under the GCT Policy, 2021 of the Ministry of Railways, designed to integrate rail with road, ports, and airports.  
• Need for GCTS: Earlier, freight movement in India was scattered across different transport modes without seamless linkages, resulting in inefficient handling and longer turnaround times, high logistics costs, congestion, and higher emissions 
  • GCTs address this gap by acting as strategic nodes in the logistics chain, connecting multiple modes of transport and significantly reducing cargo handling time, costs, and environmental impact. 
• Operational Features:  The Engine-on-Load (EOL) system enables trains to depart immediately after loading or unloading.  
  • GCTs integrated with mechanised loading systems, silos, and modern cargo-handling infrastructure significantly reduce detention time and ensure optimal utilisation of railway assets. 
• Sustainability and Cost Efficiency: Rail transport is cleaner and more cost-efficient than road transport, with costs less than half and nearly 90% lower carbon emissions.  
  • Since 2014, shifting freight to rail has moved 2,672 million tonnes of cargo and saved 143.3 million tonnes of CO₂, supporting India’s decarbonisation goals. 
• Key GCTs Driving Logistics Growth: The Manesar (Haryana) GCT, India’s largest automobile terminal, can handle 4.5 lakh vehicles annually and is linked through the Haryana Orbital Rail Corridor.  
  • In the Northeast, the Moinarband and Cinnamara terminals in Assam strengthen regional trade by handling petroleum, food grains, fertilisers, and containers, with more terminals under construction.  
  • The New Sanjali GCT in Gujarat, built on private land along the Western Dedicated Freight Corridor, represents a major step toward high-speed, green logistics. 
• Progress Under GCTs:  Indian Railways has approved 306 GCTs, with a combined capacity of 192 million tonnes per annum; 118 are already commissioned. 
  • Freight revenues from GCTs grew fourfold between 2022–23 and 2024–25, reaching Rs 12,608 crore. 

Gati Shakti Multi-Modal Cargo Terminal (GCT) Policy, 2021 

• The GCT Policy aims to accelerate modern cargo terminal development, encourage private participation, and strengthen India’s freight ecosystem, while aligning infrastructure growth with industry demand to position India as a global logistics hub. 
• It provides cost exemptions, freight rebates, railway-supported infrastructure, and commercial use of surplus land under Rail Land Development Authority (RLDA), helping create a seamless multimodal logistics network.

Logistics Landscape in India 

• India ranks as the 4th largest economy globally, reinforcing the scale and complexity of its logistics needs. 
• Logistics contributes 13–14% of GDP and supports livelihoods for over 22 million people, making it a core economic pillar. 
  • It acts as the backbone of Make in India, enabling manufacturing expansion and global value-chain integration. 
• India improved to 38th rank in the World Bank Logistics Performance Index (2023), with a target of top 25 by 2030. 
• Inland waterways cargo reached 145.5 million tonnes (2024–25), reflecting growing multimodal transport use. 
  • The number of operational national waterways increased from 24 to 29, expanding low-cost, green logistics options. 
• The Logistics sector employs over 22 million people and is creating millions of new jobs. 

What are India’s Key Initiatives Related to Logistics? 

• National Logistics Policy (NLP) (2022): NLP launched to lower logistics costs as a percentage of GDP, improve efficiency, and create a seamless, integrated logistics ecosystem, supported by digital platforms to enhance ease of doing business. 
• PM GatiShakti National Master Plan (2021): Introduced in October 2021 to integrate all modes of transport into a unified network, bringing together 57 ministries and 36 States/UTs with 1,700 data layers for coordinated infrastructure planning. 
• Dedicated Freight Corridors (DFCs): The Ministry of Railways is currently developing two Dedicated Freight Corridors (DFCs), namely, the Eastern Dedicated Freight Corridor(EDFC) from Ludhiana to Sonnagar (1337 Km) and the Western Dedicated Freight Corridor (WDFC) from Jawaharlal Nehru Port Terminal (JNPT) to Dadri (1506 Km). 
  • These are developed to enable high-capacity, energy-efficient freight movement, reduce congestion on passenger routes, and lower logistics costs. 
• Multi-Modal Logistics Parks (MMLPs): Under Bharatmala Pariyojana, MMLPs are large integrated hubs that combine road, rail, air, and warehousing facilities to cut freight costs, reduce congestion, and improve supply-chain efficiency. 
• Logistics Data Bank (LDB): LDB is a digital platform that tracks EXIM cargo in real time, enhancing transparency, predictability, and efficiency across the supply chain. 
  • It has tracked over 75 million EXIM containers (as of October 2024). 
• Unified Logistics Interface Platform (ULIP): A single digital interface integrating data from multiple ministries, enabling shipment tracking, ETAs, and better inventory management. 
• e-Way Bill System: A mandatory paperless system for goods above Rs 50,000, streamlining inter-state movement and improving compliance. 
• Gati Shakti Vishwavidyalaya (GSV): India’s first university dedicated to transport and logistics education, aimed at creating a skilled workforce. 
• LEADS (Logistics Ease Across Different States): An annual index assessing logistics performance of States/UTs to guide policy reforms and investments. 

What are the Key Challenges in India’s Logistics Sector?  

• High logistics costs: India's logistics cost is estimated at 7.97% of GDP in 2023-24 higher than developed economies, making Indian exports less competitive. 
  • Higher freight cost impacts sectors like textiles and auto components, reducing price competitiveness abroad. 
• Road Dominance & Congestion: India relies heavily on road transport (60–65% of freight), which is inefficient compared to rail.  
  • Highways often face congestion, poor maintenance, and frequent toll delays, leading to slower turnaround times. 
• Rail Capacity Constraints: Although cheaper, rail freight suffers from capacity shortages and prioritizing passenger traffic.  
  • The lack of "last-mile" connectivity to railway sidings often forces businesses back onto roads. 
• Port Inefficiencies: While turnaround times have improved, Indian ports still lag behind global competitors in draft depth (ability to handle mega-ships) and evacuation speed, leading to high detention and demurrage charges. 
• Compliance Burden: Despite the success of GST (Goods and Services Tax), interstate movements can still be slowed by varying state-level documentation requirements and "checkpost" mentalities in enforcement. 
• Fragmentation: The sector is highly fragmented, with millions of small fleet operators owning fewer than five trucks.  
  • This makes it difficult to standardize pricing, quality, or compliance across the industry. 
• Technology & Digitalization Gaps: While platforms like ULIP and LDB exist, adoption is uneven among small players. 
  • Small transporters still rely on manual documentation despite e-way bills. 
• Environmental sustainability challenges: Road-heavy freight causes high emissions. Road transport presently accounts for 12% of India's energy-related CO2 emissions and is a key contributor to urban air pollution.

What Measures can Strengthen  India’s Logistics Sector?

• Accelerate Infrastructure Development: Fast-track DFCs and multimodal projects; adopt PM GatiShakti–style monitoring for all major logistics assets.  
  • Example: Mumbai Trans Harbour Link (2024) improved access to JNPT and cut transit time. 
• Improve Last-mile Connectivity: Prioritise links to ports, industrial hubs, and economic corridors to reduce delays and costs. 
• Streamline Regulations: Implement single-window clearances nationwide; expand faceless customs assessment and build on e-SANCHIT to digitise all approvals. 
• Promote Technology Adoption: Incentivise AI, IoT, blockchain via tax benefits; expand ULIP coverage; support logistics startups with data access and pilots. 
• Enhance skills: Align training with industry needs; expand specialised institutes; partner with e-commerce firms for last-mile training; launch a national logistics certification. 
• Upgrade Warehousing Chains: Create a national warehousing grid; incentivise Grade-A warehouses and cold storage; mandate quality standards. 
• Promote green logistics: Introduce logistics-specific carbon credits; tax breaks for green tech; develop green freight corridors; roll out a green logistics certification.
  

Conclusion

Gati Shakti Cargo Terminals are reducing logistics costs, strengthening multimodal connectivity, and promoting green freight movement. Along with PM GatiShakti and digital reforms, they are laying the foundation for a globally competitive logistics ecosystem in India.

Drishti Mains Question:

“Gati Shakti Cargo Terminals represent a paradigm shift in India’s freight logistics.” Examine their role in reducing logistics costs and promoting sustainability.

Frequently Asked Questions (FAQs) 

Q. What are Gati Shakti Cargo Terminals (GCTs)? 
Modern multi-modal railway cargo hubs under the GCT Policy, 2021 that integrate rail with road, ports, and airports for faster freight movement.

Q. Why are GCTs important for India’s logistics sector? 
They reduce turnaround time, logistics costs, congestion, and emissions by replacing fragmented freight handling with integrated hubs.

Q. How do GCTs support sustainability? 
By shifting freight to rail, which is cheaper and emits nearly 90% less CO₂ than road transport, aiding India’s decarbonisation goals.

Q. What role does PM GatiShakti play in logistics reforms? 
It enables coordinated, multimodal infrastructure planning across ministries and states using a single digital platform.

Q. What are the key challenges still facing India’s logistics sector? 
Road dominance, last-mile gaps, rail capacity constraints, fragmented operators, uneven digital adoption, and environmental concerns.

UPSC Civil Services Examination Previous Year Question (PYQ) 

Q. The Gati-Shakti Yojana needs meticulous coordination between the government and the private sector to achieve the goal of connectivity. Discuss. (2022)