To challenge road transport’s dominance in short-haul freight, Indian Railways is developing a policy to reduce freight rates for cargo transported over 250-300 km. Targeting key sectors like coal, cement, and steel initially, the move is designed to enhance rail’s competitiveness and improve last-mile connectivity.

Currently, despite its extensive 68,000 km network, Railways handles only 29% of India’s freight, with road transport accounting for 65%, as per Ministry of Railways data. This policy shift aims to reshape India’s logistics sector and reclaim market share from road logistics.