Railways starts door-to-door cargo service, aims shift of cargo movement

Indian Railways proposes to transform itself into a comprehensive logistics player with the launch of a door-to-door freight and parcel service, providing its customers with the flexibility to move consignments from warehouses to the final point of delivery.

So far, the railways has been seen as a transporter of goods, which also largely transport bulk commodities such as coal, iron ore, steel, limestone, and cement, with little or negligible presence in door-to-door services that customers are demanding.

As part of its logistics service playbook, the railways launched three initiatives for door-to-door logistics on Tuesday. The first initiative involves converting the goods shed at Sonik in Unnao, part of the Lucknow division, into an integrated logistics hub. Managed by railway entity Concor, this hub will serve the logistics needs of the Kanpur and Lucknow regions. It will act as a distribution centre for cargo, including fertilisers, food grains, cement, and tractors, while also providing inventory management and crucial first- and last-mile connectivity.

The second initiative is the launch of an assured transit container train service between Delhi and Kolkata, aiming to attract time-sensitive cargo from road to rail. This service provides door-to-door and container services, with loading and unloading facilities at both ends.

The third initiative is the launch of a door-to-door parcel service utilising the railways' parcel vans between Mumbai and Kolkata. This would cater to the movement of all kinds of goods, including small parcel movements by households. The consignment in this service may also include lube oil, consumer durables and FMCG. The service will also provide a cargo storage facility in both Mumbai and Kolkata.

Cheaper, faster than road

According to railway estimates, its door-to-door service would be almost 7.5% cheaper than similar goods movement using roadways, while also bringing down the time of final delivery by almost 30%.

“The services launched by railways is the result of several experiments done by it to understand the exact needs of the customers. The initiative of the railways will help in an assured and cost-effective way of moving consignments and contribute to the national aspiration of reducing the country's overall logistics while promoting green transport,” railway minister Ashwini Vaishnaw said while launching the services.

He said that learning from these three services would help expand the country's door-to-door operations, covering other economic hubs.

The minister said that the Railways has been constructing 3,000-4,000 km of new lines every year, and this would ensure that both passenger and goods services of the national transporter move unhindered.

The parcel service of the railways is also aimed at capturing business from e-commerce players that still largely rely on the road network to move goods from warehouses to customers.