- Why in news
- On 7 August 2026, the Railways Minister told Rajya Sabha that 142 Gati Shakti Cargo Terminals are commissioned and freight loading rose to 1,670 MT in 2025-26.
- What it is
- The Gati Shakti Multi-Modal Cargo Terminal (GCT) policy of Indian Railways encourages private investment in modern rail cargo terminals. Sites are chosen by industry demand, cargo potential, rail infrastructure and logistics potential of the area. It aims to raise the rail share in freight and improve first-and-last-mile handling.
- Terminals commissioned
- 142 GCTs are commissioned with an estimated capacity of 224 million tonnes per annum.
- Private investment
- The policy has mobilised about ₹10,000 crore of private investment.
- Site selection
- GCT locations depend on industry demand, cargo potential, railway infrastructure availability and logistics potential.
- Dedicated Freight Corridors
- Eastern DFC (Ludhiana to Sonnagar, 1337 km) and Western DFC (Dadri to JNPT, 1506 km) are both commissioned.
- New DFC
- A Dankuni–Surat DFC was announced in Union Budget 2026; DPR work has begun.
Don’t confuse with GCT policy vs wagon investment schemes: GCT policy invites private investment in terminals; wagon schemes invite private investment in rakes such as special-purpose, general-purpose and automobile wagons.
Don’t confuse with GCT vs railway goods sheds: GCTs are privately developed modern terminals; goods sheds are railway-owned and are being upgraded separately.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Private terminals add handling capacity and improve first-and-last-mile links, helping Railways raise its freight share and cut logistics costs.
- Freight loading rose from 1,098 MT in 2014-15 to 1,670 MT in 2025-26, making Indian Railways the second largest freight carrier in the world.
Problems
- GCTs handled only 146 MT against 224 MTPA estimated capacity, indicating underutilisation.
- Road still dominates freight; first-and-last-mile links and terminal efficiency need further work.
Way forward
- Link GCTs better with DFCs, ports and industrial clusters to raise utilisation.
- Continue wagon and parcel schemes and publish terminal-wise performance to guide further investment.
Put in your answer
DFC performance: About 443 trains run daily on DFCs, freeing paths on the conventional network.
- 2022Mains GS2 · Q6Need for government-private sector coordination to achieve Gati Shakti connectivity
- 2022Mains GS3 · Q1Why PPP is required in infrastructure and its role in railway station redevelopment
- 2014Mains GS2 · Q8Whether Rail Tariff Authority benefits consumers, Railways or private container operators
- 2025Prelims Q62Which connections the International North-South Transport Corridor will provide
- 2025Prelims Q82Statements on National Rail Plan and Kavach train protection system
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting policy with figures, but this release is a progress update; no provision-level debate for a Mains question.
Worth revising until Prelims 2028: most news questions come within two years of the event.