Indian Railways Emerges as World’s 2nd-Largest Freight Carrier, Bulk Cargo Drives Growth

Indian Railways has strengthened its position as the world's second-largest cargo carrier due to an expansive rail network, dedicated freight corridors, policy support and growing emphasis on cost-efficient and sustainable logistics. A key factor behind the railways' freight performance is its extensive network spanning more than 68,000 km across the country.

The commissioning of the Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) has significantly enhanced freight-carrying capacity by enabling heavy haul and double stack container train operations while freeing up capacity on conventional routes. In addition, Indian Railways serves as the backbone for transportation of bulk commodities that underpin the country's economy with coal accounts for nearly half of total freight movement, while iron ore, cement, foodgrains and fertilisers make up a substantial share of cargo traffic.

As per Railways Ministry data, several major commodity groups recorded healthy year-on-year growth during July 2026. “Iron ore loading increased by 22.2 per cent, coal by 11.5 per cent, food grains by 11.5 per cent, fertilizers by 12 per cent and balance other goods by 12.1 per cent, reflecting strong demand from infrastructure, manufacturing and agricultural sectors. With the increase in coal demand at thermal power plants, Indian Railways stepped up domestic coal supply to power plants by 20 per cent in July compared to the corresponding month last year,” according to the ministry. Moreover, around 1.7 billion tonnes of freight handled during FY 2025-26. Freight movement by rail is estimated to cost about 45 per cent less than road transport on a per tonne-kilometre basis. A single freight train can replace more than 300 trucks, contributing to lower logistics costs and reducing pressure on highway infrastructure.

The government's focus on multimodal connectivity and logistics reforms has also boosted rail freight. Also, initiatives such as PM Gati Shakti and the National Logistics Policy are aimed at shifting more cargo movement from roads to railways, improving efficiency across supply chains. By August 7, 142 Gati Shakti Cargo Terminals (GCTs) have been commissioned with an estimated freight handling capacity of 224 million tonnes per annum (MTPA).

The policy has mobilized private investment of approximately Rs 10,000 crore through these GCTs. Freight handled at these GCTs during 2025-26 is 146 MT, according to the government. However, Container Corporation of India (CONCOR) and other logistics players have been key contributors to this transition. Additionally, sustainability and technology adoption have further strengthened the sector's competitiveness. With the broad-gauge network now fully electrified, Indian Railways has reduced dependence on fossil fuels. The use of double-stack container services and long-haul freight trains carrying up to 360 TEUs has improved operational efficiency, reduced transit times by up to 50 per cent and lowered carbon emissions by nearly 70 per cent compared with road transport.

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