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Indian Railways recorded a 9% year-on-year increase in freight loading during July 2026, transporting 141.3 million tonnes (MT) of cargo compared with 129.7 MT in the corresponding month last year. The growth was supported by higher movement of coal, iron ore, fertilisers and food grains, reinforcing rail's role in India's industrial and energy supply chains.
The increase in cargo volumes translated into an 8% rise in freight revenue, generating an additional ₹1,137 crore over July 2025. East Central Railway and Eastern Railway recorded the highest freight revenue growth among railway zones at 33% each, followed by West Central Railway at 23% and South Eastern Railway at 10.33%.
Among major commodities, iron ore loading grew 22.2% year on year, while coal and food grain shipments each increased 11.5%. Fertiliser traffic rose 12%, and the "balance other goods" category expanded 12.1%, reflecting sustained demand from infrastructure, manufacturing and agriculture. Indian Railways also increased domestic coal supplies to thermal power plants by 20% compared with the same month last year to support electricity generation.
Passenger traffic also continued to grow during the month. Indian Railways carried 63.35 crore passengers in July 2026, up from 62.19 crore a year earlier, with growth reported across both suburban and non-suburban services.
The July performance highlights continued demand for rail-based freight transport as Indian Railways expands its role in supporting industrial production, agricultural supply chains and energy security while improving freight movement across the national network.
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Rail freight activity at the International Container Transshipment Terminal (ICTT) at Vallarpadam is showing signs of recovery, with the commencement of outward cargo loading adding a new dimension to operations that have remained underutilised for years. Bharat Petroleum Corporation Limited (BPCL) has loaded four full rakes of bitumen consignments, creating an opportunity to improve cargo utilisation on the rail corridor. Previously, operations were largely limited to inward container movement, with containers returning empty. Container Corporation of India (CONCOR) has resumed freight services, with at least two rakes a month operating since May. Officials have also reported the receipt of car units by rail for export, while discussions are continuing on establishing regular cargo movements through Cochin. The developments mark an early step towards improving rail freight activity at Vallarpadam, although sustained growth will depend on securing regular cargo commitments and making rail transport commercially competitive. Outward loading opens up return-cargo opportunities The movement of bitumen in four full rakes is significant because it expands the range of cargo that can be carried through the rail link. Outward loading could help operators utilise capacity more effectively and improve the economics of freight services. However, the extent of potential savings or the impact on overall rail volumes has not been quantified. Regular movements will be necessary to establish whether the initial activity can translate into a sustained increase in rail's share of cargo transport. Rail infrastructure awaits fuller utilisation The 8.86-kilometre railway connection links Edappally with Vallarpadam's container terminal, including a 4.62-kilometre bridge across Kochi's backwaters. Rail Vikas Nigam Limited (RVNL) implemented the project, with central funding provided through the Ministry of Shipping. A trial locomotive movement took place in March 2010, ahead of the terminal's inauguration in February 2011. Designed specifically for goods traffic, the line provides a direct connection between the terminal and the wider railway network. Despite this dedicated infrastructure, the corridor has struggled to attract consistent freight volumes. Earlier assessments in 2025 highlighted its underutilisation, with road transport continuing to appeal to shippers because of its flexibility, speed and last-mile delivery capabilities. Domestic freight could widen the cargo base Freight operators are also looking to attract cargo from Kerala's manufacturing clusters, including plywood and furniture businesses around Perumbavoor. Domestic rail services are being offered to several inland markets as operators seek to expand the corridor's commercial reach. For manufacturers, the choice between road and rail depends on the total logistics cost, including factory collection, terminal handling, onward delivery and transit time. Reliable schedules and predictable departures will be important in encouraging businesses to commit cargo to rail. Industry representatives have also pointed to dependable international vessel connectivity as a factor influencing port selection, particularly for exporters seeking an efficient end-to-end logistics solution. MGR IFR service adds to Cochin's connectivity Cochin's maritime connectivity received another boost in September, when DP World's terminal began receiving the MGR IFR service. The fortnightly rotation links Cochin and Nhava Sheva with Fujairah in the UAE, Sohar in Oman and Aden in Yemen. The service operates with MV Marsa Virgo and MV Marsa Zenith, each with a capacity exceeding 500 TEUs. The inaugural call by MV Marsa Virgo involved handling more than 1,000 TEUs. The service adds to the range of shipping connections available through Cochin. Combined with improved inland rail utilisation, dependable maritime services could strengthen the terminal's proposition for exporters and importers. Regular cargo flows will be key The commencement of outward loading is an encouraging operational development for Vallarpadam's rail corridor. It demonstrates the potential to move cargo beyond inward container traffic and opens up opportunities to make better use of return capacity. The next challenge is to turn initial movements into repeat business. Competitive total logistics costs, reliable schedules, straightforward handling arrangements and balanced cargo flows will be critical to improving utilisation of the existing infrastructure. For Vallarpadam, the long-term opportunity lies not simply in having a dedicated rail connection, but in building a dependable freight service that businesses can incorporate into their regular supply chains. Follow CARGOCONNECT for more such updates
Container Corporation of India (CONCOR) Chairman and Managing Director (CMD) Ajit Kumar Panda visited the Container Freight Station, Dronagiri Rail Terminal (CFS-DRT) in the Mumbai Cluster, as part of the company’s focus on strengthening terminal operations and enhancing rail-linked logistics services. The Dronagiri facility is an important cargo-handling node supporting EXIM and domestic containerised cargo flows in the Mumbai region. CONCOR’s Dronagiri Node, commissioned in March 2003, spans around 59 acres and has an annual handling capacity of approximately 200,000 TEUs. Its catchment extends across Mumbai, Pune, Aurangabad, Vapi, Gujarat and Madhya Pradesh. During the visit, Panda reviewed the terminal’s operations and interacted with the Mumbai Cluster team, with the engagement highlighting the importance of efficient terminal management, customer-focused services and stronger integration of rail-based freight movement within the wider logistics network. The Dronagiri facility also supports warehousing and a broad range of EXIM cargo. Its infrastructure includes dedicated EXIM, domestic and bonded warehousing capacity. CONCOR has also developed capabilities at Dronagiri for handling out-of-gauge (ODC) export and import flat-rack containers, supported by first- and last-mile transportation services connecting the CFS with Jawaharlal Nehru Port terminals. Panda’s visit comes amid CONCOR’s continued emphasis on operational excellence, multimodal connectivity and strengthening logistics infrastructure across key trade gateways. The company has been working to improve rail connectivity, terminal efficiency and customer-centric logistics solutions, supporting more seamless cargo movement across India’s supply chain. The visit underscores the strategic importance of the Mumbai Cluster and Dronagiri Rail Terminal in facilitating efficient containerised trade and reinforcing CONCOR’s role in India’s rail-based logistics ecosystem. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
Indore: Indian Railways is preparing to operate the country’s first hydrogen-powered train at speeds of up to 110 kmph, following successful trials at speeds of 120 kmph, Railway Board Chairman and CEO Satish Kumar said on Sunday. Prime Minister Narendra Modi had flagged off India’s first hydrogen-powered train on July 17, marking a significant step in the Railways’ efforts to introduce cleaner propulsion technologies. The train operates on the 89-km Jind–Sonipat route in Haryana. Unlike conventional electric trains that rely on overhead power lines, the hydrogen fuel-cell trainset generates electricity onboard through an electrochemical reaction between hydrogen and oxygen. The process produces water vapour and heat as by-products, eliminating combustion, smoke and tailpipe carbon emissions. The hydrogen train is part of Indian Railways’ broader efforts to explore alternative propulsion technologies and reduce emissions from rail operations. Its deployment could also offer a pathway for cleaner rail connectivity on routes where conventional electrification may be less practical. Follow CARGOCONNECT for more such updates
