Logistics Reform: Gati Shakti Cargo Terminals (GCTs) Explained for UPSC
Q. Consider the following statements regarding Gati Shakti Multi-Modal Cargo Terminals (GCTs):
1. They are developed under a policy introduced by the Ministry of Ports, Shipping and Waterways.
2. The 'Engine-on-Load' (EOL) system is used to minimize detentions and ensure optimal infrastructure use.
3. Terminals developed on private land are not eligible for incentives under the GCT Policy.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Context
India’s logistics sector has achieved a significant milestone, with logistics costs being reduced to 7.97% of GDP. This shift towards global benchmarks is driven by the PM Gati Shakti National Master Plan, which integrates railways, highways, ports, and airports. A central pillar of this vision is the development of Gati Shakti Multi-Modal Cargo Terminals (GCTs) to ensure seamless freight movement and industry competitiveness.
What are Gati Shakti Multi-Modal Cargo Terminals (GCTs)?
GCTs are modern facilities developed under the GCT Policy, 2021 of the Ministry of Railways. They serve as hubs where goods are transferred between trains and other modes of transport (road, ports, etc.), eliminating delays and reducing costs associated with scattered freight movement.
Key Features:
- Regulatory Framework: Established under the GCT Policy (15 December 2021).
- Engine-on-Load (EOL): Locomotives stay at the terminal during loading/unloading to ensure immediate departure.
- Modern Handling: Equipped with silos and mechanized systems to minimize handling time.
- Sustainability: Rail transport produces 90% lower carbon emissions compared to road transport.
The Gati Shakti Cargo Terminal Policy, 2021
The policy aims to accelerate terminal development by streamlining approval processes and encouraging private participation.
Key Incentives:
- Cost Exemptions: Waiver of departmental charges, land license fees, and commercial staff costs.
- Infrastructure Support: Railways construct common-user facilities at serving stations.
- Freight Rebates: Terminals generating 1 million tonnes or more of outward traffic get a 10% freight rebate.
- Asset Maintenance: Railways maintain tracks, signalling, and Overhead Equipment (OHE), excluding certain yard lines.
Progress and Measurable Outcomes
Since the inception of the GCT Policy, the initiative has translated into visible results:
- Terminals: Indian Railways has approved 306 GCTs, of which 118 are already commissioned.
- Capacity: The commissioned terminals have a combined handling capacity of 192 million tonnes per annum.
- Private Investment: Approximately ₹8,600 crore of private investment has been mobilized.
- Revenue: Freight revenues grew fourfold between 2022–23 and 2024–25, reaching ₹12,608 crore.
- Environmental Impact: Since 2014, shifting 2,672 million tonnes of freight to rail has saved 143.3 million tonnes of CO₂ emissions.
Key Examples of GCTs
- Manesar (Haryana): The country’s largest automobile GCT, capable of handling 4.5 lakh automobiles annually.
- New Sanjali (Gujarat): The first facility built on private land under the Gati Shakti Policy along the Western Dedicated Freight Corridor (WDFC).
- Northeast (Assam): Terminals like Moinarband and Cinnamara are vital for handling coal, fertilizers, and food grains.
Significance
- Logistics Efficiency: Connects rail, road, and ports to reduce bottlenecks and turnaround time.
- Make in India: Supports domestic manufacturing by lowering the cost of doing business.
- Regional Growth: Identification of terminal locations across diverse states ensures balanced development.
- Green Logistics: Directly supports India's decarbonization goals by shifting freight to energy-efficient rail.
🎯 Analysis & Insights
Prelims mastery
Correct Answer: (b) 2 only.
Reasoning: Statement 1 is incorrect as the GCT Policy was introduced by the Ministry of Railways. Statement 2 is correct (EOL is a key feature). Statement 3 is incorrect; the policy encourages private participation, and terminals like New Sanjali in Gujarat have been built on private land under this policy.
Mains perspective
"Modernizing cargo terminals is not just about infrastructure, but about integrating India's fragmented logistics chain." Discuss how Gati Shakti Cargo Terminals (GCTs) contribute to achieving single-digit logistics costs for India. (150 words)