NE INFRASTRUCTURE BUREAU
CHENNAI, FEB 19
Southern Railway has scripted a decisive leap in freight logistics by operationalising multiple Gati Shakti Cargo Terminals (GCTs), generating over ₹100 crore in revenue and handling millions of tonnes of industrial cargo, as the national transporter accelerates its transition into a modern, multimodal logistics powerhouse.
Southern Railway's Gati Shakti Cargo Terminals are open for business — and now, Cargo Related Facilities (CRFs) are making them even more powerful.
Developers, the opportunity to build India's freight future is right here. 📦
Contact the Commercial Branch at your Division or… pic.twitter.com/VjECR4nf2D
— Southern Railway (@GMSRailway) February 19, 2026
- Private-backed GCT ecosystem unlocks massive cement, petroleum cargo volumes across Tamil Nadu freight corridors
- Modern Cargo Related Facilities usher in warehousing, cold chains, and multimodal logistics integration on Railway land
- Manali, Ariyalur, Karur and Ponneri emerge as strategic cargo hubs powering rail’s modal shift from road transport
- Southern Railway positions itself as a logistics backbone for industry with scalable infrastructure under Gati Shakti policy
The GCT ecosystem, backed by private participation and supported by Cargo Related Facilities (CRFs), is enabling seamless cargo aggregation, faster turnaround, and industry-centric freight movement across strategic industrial clusters in Tamil Nadu.
Freight volumes and revenues surge across key industrial nodes
The Chennai Petroleum Corporation Ltd GCT at Manali, operational since July 2023, has handled 138 outward rakes amounting to 0.559 million tonnes, generating ₹54.70 crore in freight earnings, underscoring the terminal’s importance in petroleum logistics.
In Salem Division, UltraTech Cement Ltd’s GCT near Karur has emerged as a major cement logistics hub, facilitating inward movement of 442 rakes carrying 1.679 million tonnes, reflecting strong industrial demand and rail’s growing logistics share.
The RAMCO Cements terminals in Tiruchchirappalli Division have delivered robust performance. The Ariyalur terminal handled 277 outward rakes carrying 0.797 million tonnes, earning ₹52.95 crore, along with 328 inward rakes totaling 1.251 million tonnes. Meanwhile, the Ichchangadu terminal processed 149 outward rakes carrying 0.288 million tonnes, earning ₹29.58 crore, in addition to managing 252 inward rakes totaling 0.965 million tonnes.
Further strengthening cement logistics, the Tulukkappatti GCT in Madurai Division handled 247 inward rakes carrying 0.508 million tonnes, ensuring steady supply to construction markets.
Adding a multimodal dimension, the SICAL Multimodal GCT at Ponneri, operationalised in November 2025, has begun cargo handling operations and is poised to significantly enhance integrated rail-based logistics in the Chennai region.
Cargo Related Facilities catalyse logistics transformation
Cargo Related Facilities (CRFs) are emerging as a critical pillar complementing GCTs by creating modern logistics ecosystems on Railway land. These facilities include advanced warehousing, cold chains, vertical silos, micro-warehouses for e-commerce, pollution-controlled cargo yards, and integrated cargo complexes.
CRFs are developed through competitive bidding, with private developers responsible for financing, construction, and operations, while meeting Guaranteed Railway Freight commitments.
This integrated approach is enabling industries to benefit from end-to-end logistics solutions combining storage, aggregation, and efficient rail connectivity.
Public-private model accelerates infrastructure expansion
The Gati Shakti Cargo Terminal policy allows development of cargo terminals on both private and Railway land, encouraging private investment in rail-linked logistics infrastructure.
On private land, developers build terminals and internal rail connectivity, while Railways provide mainline integration and operational support. On Railway land, developers are selected through transparent bidding and invest in sidings, storage, and handling infrastructure.
This model ensures faster infrastructure creation while optimally utilising Railway land assets.
Strategic shift positions Southern Railway as logistics backbone
The rapid expansion of GCTs and CRFs is reinforcing Southern Railway’s position as a critical logistics enabler for industries such as cement, petroleum, e-commerce, and bulk commodities.
By improving cargo handling efficiency, reducing logistics costs, and encouraging modal shift from road to rail, Southern Railway is aligning with the national Gati Shakti vision of building integrated, sustainable, and efficient logistics infrastructure.
With terminals now operational across Chennai, Salem, Tiruchchirappalli, and Madurai divisions, Southern Railway is steadily transforming into a high-capacity freight engine powering industrial growth in southern India.
