Date: 2026-03-12Category: Press ReleaseState: Union GovernmentCountry: India
With First-Mile Pick up, Last-Mile Delivery & In between Packaging, Indian Railways Strengthens its Parcel Freight Logistics through Mid-Mile Transportation
**Executive Summary**
This document outlines Indian Railways' strategy to strengthen parcel freight logistics through mid-mile transportation, focusing on first-mile pickup, last-mile delivery, and packaging. Key initiatives include the pilot launch of the 'Rail Parcel' app-based logistics platform by South Central Railway and the operationalization of the Joint Parcel Product – Rapid Cargo Service (JPP-RCS). These efforts aim to improve efficiency and customer amenities, with a significant financial allocation of ₹14,500 crore for infrastructure upgrades over three years, spanning FY 2023-24 to 2025-26.
**Key Points / Main Content**
* **Strengthening Freight Logistics:** Indian Railways is implementing a multi-pronged strategy to enhance freight efficiency, regional connectivity, and first/last-mile solutions.
* **Two-Pronged Approach to Freight Handling:**
* Encouraging the development of modern rail freight terminals under the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy.
* Augmenting and upgrading infrastructure at railway-owned goods sheds.
* **GCT Progress:** As of 05.03.2026, 128 GCTs have been commissioned, and in-principle approvals have been issued for 288 GCTs.
* **Infrastructure and Customer Amenities Allocation:** ₹14,500 crore has been allocated for improving customer amenities and infrastructure at goods and parcel terminals across the country for FY 2023-24, 2024-25, and 2025-26.
* **'Rail Parcel' App-Based Logistics Platform:**
* Launched on a pilot basis by South Central Railway.
* Operational across 17 stations in 7 cities: Hyderabad, Vishakhapatnam, Vijayawada, Guntur, Rajahmundry, Bengaluru, and Chennai.
* Aims to provide door-to-door parcel services in association with logistics service providers.
* The app serves as a digital marketplace for logistics partners offering first-mile pickup, last-mile delivery, and packaging services, with Railways providing mid-mile transport.
* Decision on pan-India rollout will be based on pilot project experience.
* **Joint Parcel Product – Rapid Cargo Service (JPP-RCS):**
* An evolution of the Joint Parcel Product (JPP) initiative launched with India Post in 2022.
* Targets B2C and B2B markets, including e-Commerce and MSME sectors, for parcels between 35 Kgs to 100 Kgs.
* Indian Railways provides mid-mile services, while India Post initially provided first and last-mile services.
* Currently operational with 07 pairs of scheduled (time-tabled) services.
* Total revenue generated up to February 2026 is approximately ₹56 crore.
* Online booking is done by empanelled parcel aggregators through IR's "Virtual Aggregation Platform" (VAP).
* **CONCOR's Role:**
* CONCOR, a PSU under the Ministry of Railways, provides door-to-door parcel services utilizing JPP-RCS on Delhi-Kolkata and Mumbai-Kolkata corridors.
* Also involved in a pilot project for door-to-door logistics at Sonik Goods shed.
* **Business Development Unit Engagement:** Business Development units at all Railway Divisions are tasked with engaging stakeholders to assess traffic and the availability/readiness of first and last-mile logistics service providers.
**Impact Analysis**
**Customers (B2C and B2B, including e-Commerce and MSME)**
* **Impact:** Enhanced efficiency, improved customer amenities, and more robust first and last-mile solutions for parcel freight logistics. Access to integrated door-to-door services and a digital marketplace for logistics.
* **Action Required:** Utilize the 'Rail Parcel' app and JPP-RCS services for their parcel shipping needs.
**Logistics Service Providers**
* **Impact:** Opportunity to participate in an integrated logistics platform ('Rail Parcel' app) and offer their services for first-mile pickup, last-mile delivery, and value-added services.
* **Action Required:** Engage with Indian Railways through Expression of Interest processes and onboard as partners on the 'Rail Parcel' platform.
**Indian Railways**
* **Impact:** Strengthened freight logistics, enhanced regional connectivity, and improved operational efficiency. Generation of new revenue streams through initiatives like JPP-RCS and increased parcel volumes.
* **Action Required:** Continue to develop and implement policies related to GCTs and infrastructure upgrades, manage and scale the 'Rail Parcel' pilot, and oversee the operationalization of JPP-RCS and CONCOR services.
**CONCOR**
* **Impact:** Expanded service offerings and strengthened position in providing door-to-door parcel services, particularly on key corridors.
* **Action Required:** Continue to provide and potentially expand door-to-door parcel services utilizing JPP-RCS and pilot projects.
Key Entities Referenced
Indian Railways: The primary entity responsible for parcel freight logistics and the implementation of the discussed initiatives.
Gati Shakti Multi-Modal Cargo Terminal (GCT) policy: A policy related to the development of modern rail freight terminals, crucial for improving rail freight handling.
'Rail Parcel' App-Based Logistics Platform: A digital marketplace and app for railway parcel logistics, including first-mile pickup, last-mile delivery, and mid-mile transportation.
Joint Parcel Product – Rapid Cargo Service (JPP-RCS): A scheme for scheduled parcel services, an evolution of the Joint Parcel Product initiative, focusing on B2C and B2B markets.
CONCOR: A Public Sector Undertaking under the Ministry of Railways providing door-to-door parcel services.
Ministry of Railways
With First-Mile Pick up, Last-Mile Delivery & In
between Packaging, Indian Railways Strengthens
its Parcel Freight Logistics through Mid-Mile
Transportation
‘Rail Parcel’ App-Based Logistics Platform Launched on Pilot
Basis by South Central Railway Across 17 stations in 7 Cities
Including Hyderabad, Vishakhapatnam, Vijayawada, Guntur,
Rajahmundry, Bengaluru and Chennai
Joint Parcel Product – Rapid Cargo Service (JPP-RCS)
Operational with 07 Pairs of Scheduled Services, Generating
Approximately ₹56 Crore revenue in Current Fiscal up to
February
₹14,500 Crore Allocated during in Last 3 Years for Improving
Customer Amenities and Infrastructure at Goods and Parcel
Terminals Across the Country
CONCOR Providing Door-to-Door Parcel Services on Delhi–
Kolkata and Mumbai–Kolkata corridors, Strengthening First-
and Last-mile Logistics Solutions
Posted On: 12 MAR 2026 4:12PM by PIB Delhi
For strengthening freight logistics and regional connectivity, Indian Railways has implemented a multi-
pronged strategy to enhance freight efficiency, ensure seamless regional connectivity, and provide robust
first-and-last-mile solutions.
To improve the efficiency of rail freight handling at the terminals, Indian Railway has adopted a two-
pronged approach: encouraging development of modern rail freight terminals under Gati Shakti Multi-
Modal Cargo Terminal (GCT) policy and augmenting/upgrading the infrastructure at railway owned
goods sheds. Upto 05.03.2026, 128 GCTs have been commissioned and In Principle Approvals for 288
GCTs have been issued across Indian Railways. In addition, for improvement of customer amenities at
goods and parcel terminals all across the country, an amount of Rs. 14,500 crore has been allocated for
the financial year 2023-24, 2024-25 and 2025-26.CONCOR, a PSU under Ministry of Railways is also providing Door-to-Door parcel services by utilizing
the JPP-RCS over Delhi-Kolkata and Mumbai-Kolkata sectors. CONCOR is also providing Door-to-
Door logistics under a pilot project at Sonik Goods shed.
The Joint Parcel Product (JPP) initiative with India Post was introduced on pilot basis in 2022 over
certain routes to target business-to-customer (B2C) and business-to-business (B2B) market with focus on
e-Commerce and MSME market with an affordable price as per the market trends of weight category
between 35 Kgs to 100 Kgs. Under the scheme India Post provided First & Last Mile services, and
Indian Railways provided the Middle Mile services.
Based on the experience gained from the pilot, the JPP scheme was made available for other parcel
aggregators also and was renamed as Joint Parcel Product – Rapid Cargo Service (JPP-RCS). Under the
scheme, online booking of JPP-RCS (in units of VPs) is done by empanelled parcel aggregators through
the “Virtual aggregation Platform” (VAP) developed by IR. Currently 07 pairs of scheduled (time tabled)
services are operating between specific locations which have been planned on the basis of market demand
and operational feasibility. Total revenue generated from the JPP-RCS during the current year (upto
February 2026) is Rs 56 crore approximately.
A pilot project for the development of a comprehensive “App-Based Platform” for railway parcel logistics
was launched by South Central Railway on 25.02.2026 for a period of one year. Under this pilot project,
door-to-door parcel service is being provided in association with logistics service providers. The
integrated parcel logistics app, “Rail Parcel”, has been developed as a digital marketplace wherein
selected logistics service providers are on-boarded as partners. These logistics partners offer a range of
services including first-mile pickup, last-mile delivery, value-added services such as packaging, etc., with
Railways providing the mid-mile transportation through rail services.
The project is being implemented at seventeen stations across seven cities viz. Hyderabad,
Vishakhapatnam, Vijayawada, Guntur, Rajahmundry, Bengaluru and Chennai. At present, three private
logistics partners have been on boarded through an Expression of Interest process.
Business Development units functional at all Railway Divisions have been advised to engage with various
stakeholders to assess the traffic as well as availability and readiness of logistics service provider for the
first and last mile service.
Decision on the roll out of the App on Pan-India basis shall be based on the experience gained from the
project.
This information was provided by the Union Minister for Railways, Information & Broadcasting and
Electronics & Information Technology, Shri Ashwini Vaishnaw, in a reply to questions in Lok Sabha.
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Dharmendra Tewari/ Ritu Raj/ Manik Sharma
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