New Delhi: In a move aimed at strengthening freight logistics and regional connectivity, Indian Railways has rolled out multiple initiatives to improve freight efficiency and provide seamless first-mile and last-mile logistics solutions.
At the center of this effort is the Joint Parcel Product, a collaborative logistics model designed to enhance parcel transportation by integrating rail-based mid-mile movement with logistics partners handling pickup and delivery.
The Joint Parcel Product initiative has been developed to support business-to-customer (B2C) and business-to-business (B2B) logistics demand, particularly from the fast-growing e-commerce and MSME sectors.
The initiative focuses on affordable transportation for parcels weighing between 35 kg and 100 kg, aligning with prevailing market trends.
To further modernize parcel logistics, South Central Railway has launched a pilot app-based logistics platform called “Rail Parcel”, designed as a digital marketplace connecting railway transportation services with logistics service providers offering door-to-door parcel services.
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Two-Pronged Strategy to Improve Rail Freight Infrastructure
Indian Railways has adopted a two-pronged approach to improve freight handling efficiency across its network.
The strategy focuses on encouraging the development of modern rail freight terminals under the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy and upgrading infrastructure at railway-owned goods sheds.
As of March 5, 2026, a total of 128 GCTs have been commissioned, while In-Principle Approvals have been issued for 288 GCTs across the Indian Railways network.
These developments aim to streamline cargo movement and strengthen the logistics backbone of the country.
In addition to terminal development, the government has allocated ₹14,500 crore over three financial years – 2023-24, 2024-25, and 2025-26 – for improving customer amenities and infrastructure at goods and parcel terminals nationwide.
These investments are intended to enhance the efficiency of parcel operations and facilitate smoother freight movement.
Joint Parcel Product – Rapid Cargo Service Driving Parcel Logistics
The Joint Parcel Product initiative was initially introduced in 2022 as a pilot collaboration between Indian Railways and India Post.
The program combined the strengths of both organizations: India Post handled first-mile pickup and last-mile delivery, while Indian Railways provided mid-mile transportation through its rail network.
Based on the success of the pilot project, the initiative was later expanded to include other parcel aggregators and renamed Joint Parcel Product – Rapid Cargo Service (JPP-RCS).
Under the Joint Parcel Product – Rapid Cargo Service, parcel aggregators book cargo online through the Virtual Aggregation Platform (VAP) developed by Indian Railways.
The booking system allows aggregated parcel consignments to be transported via scheduled rail services.
Currently, seven pairs of scheduled services are operational between specific locations across the network. These services have been planned based on market demand and operational feasibility.
The Joint Parcel Product – Rapid Cargo Service has generated approximately ₹56 crore in revenue during the current fiscal year up to February 2026, highlighting the growing adoption of rail-based parcel logistics.
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CONCOR Expands Door-to-Door Parcel Services
Supporting the Joint Parcel Product ecosystem, Container Corporation of India (CONCOR)—a public sector undertaking under the Ministry of Railways—is offering door-to-door parcel logistics services using the JPP-RCS model.
CONCOR currently provides services on the Delhi–Kolkata and Mumbai–Kolkata corridors, enabling integrated logistics solutions that combine rail transport with first- and last-mile delivery services. The company is also operating a pilot door-to-door logistics project at the Sonik Goods Shed.
These services aim to strengthen the logistics chain by providing seamless connectivity between rail transportation and end-customer delivery points.
Rail Parcel App Pilot to Integrate Logistics Services
In another major step to modernize freight logistics, South Central Railway launched a pilot project on February 25, 2026, to develop a comprehensive app-based platform for railway parcel logistics.
The platform, called “Rail Parcel,” functions as a digital logistics marketplace, allowing selected logistics service providers to offer services to customers using the Indian Railways network.
Through the app, logistics partners can provide services such as:
- First-mile parcel pickup
- Last-mile delivery
- Value-added services including packaging
Indian Railways continues to provide mid-mile transportation through rail services, forming a complete logistics chain supported by the Joint Parcel Product ecosystem.
Pilot Implementation Across Seven Major Cities
The Rail Parcel app pilot project is being implemented across 17 railway stations in seven cities, including:
- Hyderabad
- Visakhapatnam
- Vijayawada
- Guntur
- Rajahmundry
- Bengaluru
- Chennai
Currently, three private logistics partners have been onboarded through an Expression of Interest (EOI) process to participate in the platform.
Business Development Units across all railway divisions have also been instructed to engage with stakeholders to evaluate traffic potential and readiness of logistics service providers for first-mile and last-mile services.
Pan-India Rollout to Depend on Pilot Results
The nationwide rollout of the Rail Parcel app platform will be evaluated based on the experience and operational insights gained from the pilot project.
These initiatives, including the Joint Parcel Product and digital logistics platforms, are expected to strengthen rail-based parcel transportation and improve connectivity between businesses, logistics partners, and consumers.
The details of these initiatives, including the Joint Parcel Product – Rapid Cargo Service and the Rail Parcel app pilot project, were provided by Union Minister for Railways, Information & Broadcasting and Electronics & Information Technology, Ashwini Vaishnaw, in a written reply to questions in the Lok Sabha.
