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April 29, 2024

Expanding Gati Shakti Initiative: 200 Additional Terminals to Boost Rail-Based Supply Chains

The Ministry of Railways is set to accelerate its Gati Shakti initiative by offering an additional 200 Gati Shakti Cargo Terminals (GCTs) to corporate houses and freight operators. This move comes in response to the overwhelming success of the existing terminals, signaling a strong demand for rail-based supply chain solutions in the private sector. According to a senior government official speaking to Business Standard, the investment required for these 200 terminals is estimated to range between Rs 12,000-14,000 crore.

The announcement follows Finance Minister Nirmala Sitharaman’s commitment in the 2022-23 Union Budget to establish 100 GCTs within three years. The progress made in the implementation of the first phase of terminals has evidently encouraged further expansion of the initiative.

“The response to the first 100 GCTs has been impressive, and shows that there is appetite in the private sector – both freight,” remarked the official.

The Gati Shakti initiative aims to enhance logistics efficiency and bolster India’s infrastructure by integrating various modes of transportation. By establishing GCTs, the government intends to facilitate seamless movement of goods across the country, particularly leveraging the vast network of railways.

These terminals play a crucial role in streamlining the supply chain process, offering benefits such as reduced transit times, lower costs, and enhanced reliability. They serve as hubs for loading, unloading, and storage of cargo, ensuring efficient connectivity between different transportation modes.

The decision to involve corporate houses and freight operators underscores the government’s commitment to fostering private sector participation in infrastructure development. By engaging private investment, the Ministry of Railways seeks to leverage expertise and resources to scale up infrastructure projects rapidly.

Private investment in GCTs not only contributes to the expansion of rail-based supply chains but also stimulates economic growth through job creation and increased trade opportunities. It enables businesses to capitalize on efficient logistics networks, thereby improving competitiveness in domestic and international markets.

Furthermore, the establishment of these terminals aligns with the government’s broader vision of promoting sustainable and environmentally friendly transportation solutions. Rail transport is inherently more energy-efficient and emits fewer greenhouse gases compared to road transport, making it a preferred choice for freight movement.

The expansion of Gati Shakti terminals is expected to have far-reaching benefits across various sectors of the economy. Industries ranging from manufacturing and agriculture to retail and e-commerce stand to gain from improved connectivity and logistical support.

Moreover, the initiative is likely to boost investor confidence in India’s infrastructure sector, attracting further investment and spurring economic development. The seamless integration of GCTs into the national transport network will enhance India’s competitiveness as a global trade hub.

In conclusion, the decision to add 200 more Gati Shakti Cargo Terminals reflects the government’s commitment to revolutionizing India’s logistics landscape. By leveraging private investment and expanding rail-based supply chains, the initiative aims to enhance efficiency, reduce costs, and drive economic growth. This forward-looking approach aligns with India’s vision of becoming a global leader in infrastructure and sustainable development.

Jhumpa Lahiri

Jhumpa Lahiri

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