The Ministry of Railways has initiated a comprehensive plan aimed at improving freight efficiency, enhancing regional connectivity, and fortifying first-and-last-mile logistics solutions. A significant part of this strategy includes the rollout of the ‘Rail Parcel’ app, introduced on a pilot basis to streamline logistics operations.

Additionally, there is an expansion of the Joint Parcel Product – Rapid Cargo Service (JPP-RCS), complemented by substantial investments in terminal infrastructure nationwide.

Infrastructure Development Under Gati Shakti Policy

To enhance the handling of rail freight at terminals, Indian Railways is implementing a dual strategy. This involves promoting the establishment of modern rail freight terminals under the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy and upgrading existing infrastructure at railway-owned goods sheds.

As of March 5, a total of 128 GCTs have been commissioned, and approvals for 288 additional GCTs have been granted across the railway network.

Investment in Customer Amenities

In an effort to enhance customer amenities at goods and parcel terminals throughout the country, the government has allocated Rs. 14,500 crore for the financial years 2023-24, 2024-25, and 2025-26. This investment aims to improve the overall service quality and facilities available at these terminals.

Collaborative Efforts with CONCOR

CONCOR, a public sector undertaking under the Ministry of Railways, is also facilitating Door-to-Door parcel services utilizing the JPP-RCS, particularly in the Delhi-Kolkata and Mumbai-Kolkata routes. Additionally, a pilot project is underway at the Sonik Goods shed aimed at Door-to-Door logistics solutions.

Joint Parcel Product Initiative with India Post

The Joint Parcel Product (JPP) initiative, a collaboration with India Post, was first introduced in 2022 to cater to both business-to-customer (B2C) and business-to-business (B2B) markets. This initiative focuses on the e-Commerce and MSME sectors, offering competitive pricing for parcel weights between 35 kilograms and 100 kilograms. Under this arrangement, India Post manages First & Last Mile services, while Indian Railways handles the Middle Mile transportation.

Expansion and Revenue Generation from JPP-RCS

Following the experiences acquired during the pilot phase, the JPP scheme is now accessible to other parcel aggregators and has been rebranded as the Joint Parcel Product – Rapid Cargo Service (JPP-RCS). The online booking for JPP-RCS is facilitated by empanelled parcel aggregators through the “Virtual Aggregation Platform” developed by Indian Railways. Currently, seven pairs of scheduled services operate between designated locations, tailored to market demand and operational viability. The total revenue generated from JPP-RCS until February 2026 stands at approximately Rs 56 crore.

Development of Integrated Parcel Logistics App

A pilot project for a comprehensive “App-Based Platform” for railway parcel logistics was officially launched by the South Central Railway on February 25, scheduled to last for one year. This initiative provides Door-to-Door parcel service in collaboration with logistics service providers. The “Rail Parcel” integrated app serves as a digital marketplace, allowing selected logistics partners to offer a diverse range of services, including first-mile pickup, last-mile delivery, and additional value-added offerings like packaging. Railways will facilitate mid-mile transportation through their rail services.

Project Implementation Across Major Cities

The project is being implemented in seventeen stations across seven cities: Hyderabad, Vishakhapatnam, Vijayawada, Guntur, Rajahmundry, Bengaluru, and Chennai. Currently, three private logistics partners have joined the initiative following an Expression of Interest process. Business Development units in all Railway Divisions have been instructed to engage with various stakeholders to evaluate traffic and determine the readiness of logistics service providers for effective first and last-mile service.

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