News / New coast-to-coast services boost growing interest in rail freight in India

© Alexey Novikov

Container transport by rail in India is growing at a rapid pace, helped by infrastructure development and industry participation to tap into that growth.

The opening of dedicated freight corridors (DFCs), designed to seamlessly connect hinterlands and gateway ports, has become oane big draw for the sector.

Speed and on-time operations have been historical concerns, and a risk for shippers wishing to switch from truck to rail solutions.

Now, container carrier heavyweights, increasingly pursuing end-to-end or integrated logistics solutions, have taken a lead with block train services out of the major container gateways, particularly Nhava Sheva and Mundra.

CMA CGM and Maersk reportedly operate a string of block train connections to/from major inland container depots (ICDs), aligned with their vessel calls. The French liner recently claimed it had developed a network of 15 weekly block trains, offering some 1,600 teu.  The most recent is said to be between Mundra and the Thar Jodhpur ICD for cargo from CMA’s Indamex (US east coast) and Epic (North Europe) services.

“Our new dedicated service will reduce the ICD export pendency to the minimum and will connect ICD Thar and Mundra directly in 24 to 30 hours, with priority handling at the port,” said CMA CGM, and claimed: “This service will be a new benchmark in the industry with its connectivity and faster service”.

The liners are not alone in looking to invest in India’s revamped containerised rail market. Global terminal and logistics giant DP World has just announced the launch of a rail offering “to boost cargo flow between the east and west coasts of India” with a link from Gujarat State, a vastly industralised region on the west coast, to Kolkata on the east.

The operation involves four train trips a month out of two cargo locations in Gujarat, effectively a weekly schedule, with “competitive” transit times.

Adhendru Jain, VP (rail and inland terminals) at DP World Subcontinent, said: “We are enabling the smoother movement of goods like grains, industrial, chemicals, steel and retail, supporting more agile supply chains and regional integration.”

The move is linked to a $200m investment plan in its rail capabilities in India, which at present include some 100 rail freight cars.

India’s eastern region has had historical supply chain problems, and sources believe this new east-west connectivity could prove a boon for industry stakeholders trying to tighten logistics costs.

The Dubai-based group also has terminal operations across several Indian ports and has invested heavily in warehousing infrastructure to offer linking logistics solutions.

Along DFC-linked routes, using double-stack trains – typically capable of carrying 180 teu – is also gaining pace, while block trains arguably have the distinct advantage of priority terminal handling, while mixed or common trains work on a first-in, first-out policy.