Transforming India’s logistics through dedicated freight corridors: Progress and the way forward

Dedicated freight corridors (DFCs) are starting to change how goods move across India. And we can see the shift quite clearly now. Today, daily freight trains on DFCs have increased from 241 in FY24 to over 350 now.¹ That tells you adoption is picking up and the system is beginning to deliver.

Take something as basic as moving coal. Not too long ago, transporting coal over a 100km stretch on the traditional train network would take around 7 hours and 40 minutes.² Today, on the DFC, the same movement takes just four hours. That’s almost a 50 per cent reduction, which is a huge shift.³

With freight shifting to the eastern corridor, coal now moves faster from eastern mines to northern power plants, improving speed and reliability. And this is just the beginning – now there are proposals for three new freight corridors, with an estimated INR4.5 lakh crore investment.⁴

While this has a massive impact on how India thinks about logistics, what more can we do to further strengthen these networks?

Upgrade first and last-mile rail links

Cargo still begins and ends its journey on the broader Indian Railway network. Upgrading feeder routes and sidings to DFC standards can ensure the entire journey runs efficiently
Close the speed gap

Freight trains on DFCs are running at 60–70 km/h compared to 25 km/h on the traditional network.⁵ Until this gap narrows, mixed journeys can potentially dilute overall transit efficiency
Strengthen supportive logistics ecosystem

Multimodal logistics parks – with rail-road-port connectivity, warehousing and cargo handling – are critical to fully utilise DFCs’ capacity. With 35 parks approved and key locations under development, fast-tracking these will be essential.⁶ Recent GST cuts on freight and multimodal transport – down to 5 per cent – along with extended rail freight incentives, now make rail‑anchored logistics parks structurally more competitive.⁷

India can focus on more such logistics developments to enhance domestic competitiveness. China’s experience shows how sustained investment in freight‑only corridors, combined with network‑level integration and AI‑driven operations, can substantially lower logistics costs. As India progresses with the DFCs, the next step can be to evolve them into a nationally integrated, technology‑enabled freight grid – mirroring China’s shift from building corridors to operating intelligent logistics systems.

^[1] Railways boosts infrastructure with freight corridors and modernisation, Construction World, 21 March 2025, accessed on 24 April 2026

^[2] Freight trains surge on DFCs, but connecting links with Indian Railways need an upgrade, The Economic Times, 25 November 2024, accessed on 24 April 2026

^[3] Freight trains surge on DFCs, but connecting links with Indian Railways need an upgrade, The Economic Times, 25 November 2024, accessed on 24 April 2026

^[4] Western dedicated freight corridor- JNPT corridor enters final stage, full operations expected by March 2026, Cargo Connect, 12 January 2026, accessed on 24 April 2026

^[5] Freight trains surge on DFCs, but connecting links with Indian Railways need an upgrade, Economic Times, 25 November 2024, accessed on 24 April 2026

^[6] Multi modal logistics parks, PIB, 2 April 2025, accessed on 24 April 2026

^[7] Freight tax cut to drive logistics, The Economic Times, 4 September 2025, accessed on 24 April 2026