The Ministry of Railways is gearing up to launch innovative freight-cum-passenger trains, aiming to capture a significant share of the time-sensitive parcel and small cargo shipment market. This unique double-decker train design will feature freight on the ground level and passenger seating on the upper deck, according to senior government sources cited by Business Standard.
The project, presented to Prime Minister Narendra Modi during a late-2024 sectoral review, received support from the Prime Minister’s Office (PMO) to move forward. Aligned with Indian Railways’ strategy to diversify its freight portfolio, the trains aim to compete directly with road transport for parcels and e-commerce shipments.
Currently, coal and iron ore constitute 60% of Indian Railways’ freight revenue. With plans to transport 3,000 million tonnes of cargo by 2030, the ministry is focusing on boosting miscellaneous goods transport, including parcels. In 2023-24, the ministry revised its revenue target for miscellaneous goods to ₹13,227 crore, though it still fell short by 6.8% from initial budget estimates.
The Rail Coach Factory in Kapurthala is developing the prototypes, with 10 coaches already built at an estimated cost of ₹4 crore each. A complete rake is being assembled to operate on select routes, targeting areas with high cargo demand. Potential collaborations with India Post are under consideration to enhance courier market penetration.
While the initiative marks Indian Railways’ first entry into cargo liners, logistical challenges remain. Experts highlight concerns about timely parcel unloading potentially delaying passenger train schedules.
As rail freight grew by 5% to 1,591 million tonnes in 2023-24, achieving a 10% CAGR through 2030 will be essential to meet freight targets and reduce reliance on raw materials for revenue. This innovative freight-cum-passenger model could pave the way for Indian Railways’ growth in untapped markets.
