Indian Railways Launch ‘Rail Parcel’ Logistics Platform For Improving Freight Transportation

The Ministry of Railways has introduced several measures to improve freight transportation, strengthen regional connectivity, and provide efficient first- and last-mile delivery solutions. These efforts include launching a pilot app-based logistics platform called “Rail Parcel,” expanding the Joint Parcel Product–Rapid Cargo Service (JPP-RCS), and investing heavily in freight terminal infrastructure.

Railways Introduce New Measures to Improve Freight Transport and Launch ‘Rail Parcel’ Logistics Platform

In order to improve freight handling at railway terminals, Indian Railways has adopted a two-part strategy. This involves encouraging the development of modern freight terminals under the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy while also upgrading infrastructure at railway-owned goods sheds.

So far, 128 GCTs have already been commissioned across the railway network, and in-principle approval has been granted for 288 more terminals. Additionally, the government has allocated ₹14,500 crore between the financial years 2023-24 and 2025-26 to upgrade facilities and customer amenities at goods and parcel terminals nationwide.

Meanwhile, the Joint Parcel Product initiative was originally introduced in 2022 as a pilot project in partnership with India Post. The service was designed to support business-to-customer and business-to-business logistics, particularly for e-commerce companies and MSMEs, with shipments ranging from 35 kg to 100 kg.

Under this arrangement, India Post handled the first- and last-mile delivery services, while Indian Railways managed the mid-distance transportation through its rail network.

After gaining experience from the pilot program, the initiative was expanded and renamed Joint Parcel Product – Rapid Cargo Service (JPP-RCS). The service now allows empanelled parcel aggregators to make online bookings through the Virtual Aggregation Platform developed by Indian Railways.

Scheduled Cargo Services Under JPP-RCS Generate Around ₹56 Crore in Revenue This Financial Year

Currently, seven pairs of scheduled cargo services are running between selected locations based on market demand and operational feasibility. The program has generated approximately ₹56 crore in revenue during the current financial year up to February 2026.

In addition, CONCOR, a public sector enterprise under the Ministry of Railways, has begun offering door-to-door parcel services using JPP-RCS along the Delhi–Kolkata and Mumbai–Kolkata routes. A similar pilot logistics service is also being tested at the Sonik Goods Shed.

Furthermore, South Central Railway launched a one-year pilot project on February 25 for an integrated logistics application called “Rail Parcel.” The app functions as a digital marketplace that connects railway services with logistics partners.

Through this platform, selected logistics providers offer services such as parcel pickup, last-mile delivery, packaging, and other value-added services, while Indian Railways handles the main transportation segment.

The pilot program is currently operating at 17 railway stations located in seven cities: Hyderabad, Visakhapatnam, Vijayawada, Guntur, Rajahmundry, Bengaluru, and Chennai. At present, three private logistics companies have been onboarded through an Expression of Interest process.

Finally, Business Development Units across all railway divisions have been instructed to work with stakeholders to evaluate freight demand and identify logistics providers capable of delivering first- and last-mile services.

Image Source