Synergising Ports and Railways for a Viksit Bharat

By Arghya Patnaik

The recently released Q1 GDP data for this fiscal, pegging quarterly growth at 7.8%, sparked much jubilation. However, the same newspapers also carried sobering headlines announcing US tariffs of 50% on Indian goods — signalling tectonic shifts towards more protectionist global trade. In this scenario, only inherent competitiveness and diversification can ensure sustained export-led growth. Efficient logistics can catalyse such competitiveness, but India’s high logistics cost — 14% of GDP compared to the OECD average of 8%  — remains a major impediment. Revolutionising the logistics sector is, therefore, a sine qua non for a Viksit Bharat.

Central to turbocharging India’s logistics sector are its ports, which handle nearly 95% of our trade. Crucial to energising them, in turn, is the Indian Railways — the lifeblood of the nation’s economy. The Sagarmala Project envisions enhancing Indian ports’ overall cargo-handling capacity to 3,300 MT from the current 855 MT. Similarly, the National Rail Plan targets an increase in the railways’ modal freight share to 45% by 2030 from the current 28%. Seamlessly integrating these two vital economic engines and leveraging their complementarities is essential to achieving these targets and enhancing logistical efficiency for export competitiveness. This synergy would also help decarbonise logistics — since shipping and railways have emission intensities only one-thirtieth and one-fifth that of roadways, respectively.

The Sagarmala vision hinges on robust port connectivity. From the perspective of rail linkages, 114 port–rail connectivity projects worth ₹1,00,599 crore have been conceptualised, of which 49 have been completed. Recent announcements of rail link augmentations to Paradip and Mangalore ports highlight the growing emphasis on rail-based evacuation. Yet, beyond major ports, only 19.7% of non-major ports have railway connectivity. The slower expansion of the rail network compared to the rapid growth of roadways has caused a shift of port cargo from rail to road. This is compounded by chronic congestion on the rail network — especially along the Golden Quadrilateral (Delhi–Howrah–Chennai–Mumbai), where freight trains to and from ports compete with passenger trains for paths. Other challenges include saturated single-line sections and outdated signalling systems that reduce sectional capacity. As a result, the average freight train speed across the network is just 25 kmph.

While significant impetus has been imparted to rail connectivity projects recently, further recalibration is necessary. Expediting the proposed coastal Dedicated Freight Corridors (DFCs) would allow port-serving lines to connect seamlessly — preferably through rail-over-rail flyovers — eliminating conflicts with passenger trains and surface crossings at critical nodes. Universal connectivity for non-major ports can be achieved through PPP models in line construction, successfully demonstrated at Dhamra and Pipavav. Investor confidence in such ventures can be strengthened through risk-sharing mechanisms by the Railways or Shipping Ministry. Additionally, multi-tracking, electrification, and automatic signalling across port–rail linkages would enhance freight capacity. Emulating the Western DFC model—which cut transit times from JNPT on the west coast to Dadri in the north by over one-third — can help raise the Rail Coefficient (share of cargo moved by rail) of Indian ports from the current 27% to 40% by 2040.

While port–rail connectivity is a vital prerequisite, the Railways must also expand its capacity to handle surging cargo volumes. In this regard, recent steps such as a ₹90,000 crore wagon procurement order, liberalisation of private wagon leasing, and induction of distributed power locomotives exemplify the Indian Railways’ motto: “Hungry for Cargo.” However, meeting the cargo appetite of the world’s fastest-growing major economy demands longer and heavier train loads. Currently, Indian freight trains are smaller (58 wagons per train versus the international average of 100) and lighter (a load-empty ratio of 2.5 versus the global average of 4.7 for bulk commodities). These constraints can be mitigated by yard remodelling and the use of high-axle-load wagons (25 tonnes and above). Long-haul and “crack” trains — single-crew trains running over long distances — should be deployed between ports and industrial or mining hubs. Notably, one such crack special recently ran from Krishnapatnam Port to JSW Steel Works at Bellary (415 km) at an average speed of 41.87 kmph — the longest such operation so far.

Containerisation also merits special attention, symbolising high-value, standardised, and cost-efficient multimodal transport. For every container handled at Indian ports, Chinese ports handle five. Containers comprise just 4% of India’s total rail freight, limiting integration with shipping. To promote containerisation, several incentives have been introduced, including freight rebates for empty runs and subsidised container class rates. Exclusive Container Rail Terminals (ECRTs) are also being established to provide non-discriminatory access and concessional tariffs — the new ECRT at Unjha in Gujarat (India’s cumin capital) is a notable example. Serving Mundra Port, the Unjha terminal will invigorate agricultural exports. Going forward, double-stack container movement should be incentivised for Container Train Operators (CTOs), alongside volume-linked benefits and concessional rates for specific port – hinterland pairs. Containerisation of ports and rail freight is a direct enabler of EXIM-led growth and must be vigorously promoted.

Beyond infrastructure and railway policy reforms, the ports themselves must undergo transformation. Since 2014, the Sagarmala initiative has yielded significant gains — average turnaround time has dropped from 96 hours to 24 hours; average Output per Ship Berth Day (OSBD) has risen from 12,500 tonnes to 18,500 tonnes; and pre-berthing delays have fallen from 5.2 to 3.8 hours. Yet, to achieve global competitiveness, India must scale up massively — Shanghai Port alone handles more cargo than all Indian ports combined. For India’s ports to climb this mountain, large-scale efficiency improvements and enhanced rail connectivity are indispensable.

Unlocking such efficiencies requires mechanisation, automation, and systemic remodelling. Mechanised tipplers, hoppers, and silos can streamline rake handling; remodelling port railway yards with full-length lines or “merry-go-round” (bulb-based) designs can accelerate throughput; and electronic interlocking can improve safety and coordination. Establishing Multi-Modal Logistics Parks (MMLPs) or Railway Gati Shakti Terminals at major ports — under PPP models supported by tariff incentives—will integrate modes effectively. Similarly, non-major ports can be served by Private Freight Terminals dedicated to specific cargo streams, enhancing economies of scale. Digital integration is equally vital: linking the Railways’ FOIS portal with the Shipping Ministry’s PCS platform — enhanced by AI-based analytics — can enable better cargo planning and flow management across the multimodal chain. The potential for improvement is immense; the opportunities, infinite.

Nothing illustrates this potential better than a recent example of seamless intermodal integration: automobiles shipped from Incheon Port, South Korea, to Yantai Port, China, reached in just 14 hours. Integrated documentation and mechanised handling enabled transhipment to a Kashgar-bound freight train within three hours. Compatible rail systems at the China–Kyrgyzstan border then facilitated uninterrupted transit to Kyrgyzstan, slashing total delivery time from 25 days to just 12. This is the scale of efficiency India must aspire to in its journey toward becoming a USD 35-trillion economy by 2047. With its rich maritime endowment and vast, modernising railway network, India stands well poised to realise this vision.

The author is an IRTS Officer of the 2019 batch and is currently DCM, Sambalpur Division, East Coast Railway.