There has been a growth in freight movement in India over the years, leading to an increase in cargo handling at various modes of transit. In an effort to optimise the movement of cargo, container logistics has seen an increased uptake. Containers are built in various standard dimensions. This ensures convenient, fast and efficient freight handling, and eliminates the need for unpacking at multiple points of transit. Containerisation aids in simplifying scheduling and controlling, improves cargo protection, and is cost- and time-efficient.
The use of containers for logistics has gained traction across various modes. Ports in the country are working towards increasing container handling capacity to meet rising domestic and international demands. Efforts are also under way to enhance container movement via railways. There have been notable efforts in road freight operations to reduce emissions, such as the adoption of trucks powered by electricity and alternative fuels. Further, the use of intermodal containers facilitates efficient movement across various modes, including roads, railways and seas. The use of technology is enabling the efficient tracking and management of these containers.
Roads
Roads play a key role in freight movement and account for the largest share in total freight movement. In this regard, container movement via roads through container trucks facilitates a connection to major logistics hubs, enables transportation between railways and ports, and ensures last-mile connectivity. While container trucks of various sizes and dimensions are available, the selection of the right type based on factors such as the nature of cargo and duration is essential. This would facilitate cost-efficient and flexible operations.
Notable efforts have been made to reduce emissions in road freight movement. In May 2024, a 150 km zero-emission transport corridor was inaugurated by PSA BDP India. It will feature the use of electric trucks for the movement of import and export containers via the container terminal at Jawaharlal Nehru Port in Mumbai. The electric trucks can reportedly carry fully loaded containers for up to 200 km. The adoption of liquefied natural gas (LNG) trucks is also gaining traction. Container Corporation of India Limited (CONCOR) recently placed an order for 50 LNG trucks with Blue Energy Motors. The move is in line with efforts to reduce carbon emissions and meet net zero goals. With the earlier deployment of 125 trucks, the additional 50 trucks are set to be delivered by March 2025, taking the total to 175. The LNG-powered trucks from Blue Energy Motors are reportedly designed to have 40 per cent lower carbon emissions than diesel trucks.
Railways
Railways account for the second highest share of freight movement in the country after roads. Due to the benefits that container logistics provides, various efforts have been initiated to enhance container usage. During 2023-24, container loading on Indian Railways stood at 85.58 million tonnes (mt), of which more than 80 per cent were for export-import (EXIM) trade.
In a move to boost container traffic, in November 2024, the Ministry of Railways (MoR) issued policy guidelines for setting up exclusive container rail terminals on IR land. The guidelines have also specified access charges and storage charges at the terminals. The terminals will facilitate hub-and-spoke operations, enabling consolidation across multiple locations. Further, the MoR also plans to set up container rail terminals and has identified 23 locations for the same to boost EXIM cargo movement. The guidelines also included provisions for storage at container terminals.
Over the years, various developments have shaped freight movement via railways, including the development of dedicated freight corridors, the National Rail Plan and the Gati Shakti multimodal cargo terminals. Containers have also witnessed significant developments, including the adoption of double-stacked container trains, double-stack dwarf container services, and reefers or refrigerated containers.
In a recent development, CONCOR commenced double-stack container train services connecting Delhi-National Capital Region (NCR) and Varnama in December 2024. The first train with exports bound for Jawaharlal Nehru Port departed from Khatuwas and Dadri in NCR and arrived at the Gati Shakti Multimodal Cargo Terminal of CONCOR in Varnama on the western dedicated freight corridor. Further, the conversion of import containers into double-stack trains will be carried out at the terminal. The move is expected to facilitate faster cargo transit and lead to reduced emissions through the electrification of freight movement. It would also likely lead to some cargo being shifted from road to rail.
Waterways
Cargo handled at ports is categorised into seven primary categories, including containers. According to the Ministry of Ports, Shipping and Waterways, major ports saw container handling of over 1 million twenty-foot equivalent units (TEUs), or over 17.4 mt of cargo, accounting for around 24.15 per cent of the total cargo handled during December 2024 (advanced estimate). Meanwhile, non-major ports handled 901,511 TEUs of containers during December 2024 (advanced estimate). This accounted for a share of 21.38 per cent of the total cargo handled, standing at over 13.2 mt. Further, as per the Logistics Data Bank’s (LDB) Analytics Report, the pan-Indian container count for imports stood at around 461,000 and around 463,000 for exports during December 2024.
Capacity expansions and the increase in container handling capacity have been a key focus among players. The Jawaharlal Nehru Port Authority is India’s largest port, and crossed a capacity of over 10 million TEUs in January 2025. It aims to reach a throughput of 10 million TEUs by 2027. The increase in capacity was driven by the commissioning of the second phase of the Bharat Mumbai Container Terminal, which added 2.4 million TEUs. Vizhinjam port is India’s first deep-water container transshipment port. With the primary aim of catering to container transshipment, it also handles multipurpose and break bulk cargo. It currently handles only transshipment operations. Plans are under way to commence roadway cargo traffic from the port, with trial runs having commenced using 40-foot equivalent container trailers carrying dummy cargo on an interim route. The port plans to enhance its container handling capabilities by integrating air transport. Further, the Tuticorin international container terminal was inaugurated at V. O. Chidambaranar Port in Thoothukudi, Tamil Nadu, in September 2024.
To increase container capacities, the Shipping Corporation of India announced plans to charter container ships, with an immediate capacity expansion of 9,000 TEUs, and plans to purchase five additional container ships. Further, the Central Board of Indirect Taxes and Customs announced the simultaneous screening of two 20-foot containers to speed up customs clearances at ports.
CFSs and ICDs
Container freight stations (CFSs) and inland container depots (ICDs), also called dry ports, play a key role in the logistics chain. They facilitate the management, handling and movement of containers. They are equipped to carry out customs-related formalities for the export and import of goods. CFSs are generally located near ports, and aid in decongesting them by moving these functions away from the port area. ICDs are located away from seaports and act as nodes for container transportation. They are generally connected to the respective gateway port through rail. These facilities offer a range of services, including storage, maintenance, customs clearance and other logistics services.
In August 2024, OM Logistics acquired ICD Bawal for around Rs 1.1 billion. The multimodal logistics hub is built on an area of over 20 acres, and features automated rail lines and bonded warehouse space, among others. It also offers connectivity to major ports, airports, highways and railway lines. Further, Bihar’s first dry port and ICD was inaugurated in October 2024 at Bihta. The facility offers multimodal connectivity, and provides modern warehousing and customs clearance services.
Logistics Data Bank
The LDB, an initiative of NICDC Logistics Data Services Limited (NLDSL), facilitates comprehensive tracking of containers and acts as a single-window container logistics visualisation system. Real-time tracking of EXIM containers between ports and the hinterland is carried out using radio frequency identification technology. It is currently operational at all port terminals across 18 ports, comprising CFSs, ICDs, toll plazas, industrial zones, etc. The LDB has achieved a notable milestone by tracking more than 75 million EXIM containers as of October 2024. The LDB has also contributed towards improving India’s ranking in the World Bank’s Logistics Performance Index, which rose from 44 in 2018 to 38 in 2023. Overall, the LDB has aided in improving supply chain efficiency and supporting the growth of the logistics sector in the country.
Conclusion
With the rise in cargo handling requirements, containerisation has helped streamline processes and increased the efficiency of logistics. Stakeholders have undertaken various initiatives to enhance container movement via freight modes, including road, rail and waterways. Further, the adoption of intermodal containers has simplified processes, leading to time and cost efficiencies. The integration of technology has also enhanced the tracking and monitoring of these containers. While container manufacturing in India is limited, promoting and incentivising domestic manufacturing will prove beneficial. Looking ahead, the increased container handling capacities, further integration of technology and promotion of domestic container manufacturing are likely to positively impact the sector.