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India’s Inland Waterways Cargo Hits Record 145.84 MMT

India’s inland waterways sector has achieved a landmark milestone with cargo transportation on National Waterways reaching an all-time high of 145.84 million metric tonnes in FY 2024-25 — a figure that places India’s waterways network among the most commercially active in Asia and reflects the cumulative impact of years of sustained investment in fleet expansion, waterway development, and terminal infrastructure under the National Waterways Act 2016. The record comfortably surpasses previous-year cargo volumes and establishes a strong base from which FY26 growth is already tracking even higher: cargo movement on national waterways had touched 198 MMT through the first eleven months of FY26, as of February 2026.

Passenger traffic on national waterways recorded an even more dramatic surge — rising to 7.6 crore journeys in FY24-25 from just 1.61 crore in the prior year, a nearly five-fold increase that reflects the rollout of new passenger vessel services and the growing adoption of water transport for short urban commutes in coastal and riverine cities including Kochi, Kolkata, Goa, and Varanasi. India currently operates 32 waterways covering 5,155 kilometres of its total 111 National Waterways spanning 20,187 kilometres, with the operational network expected to expand to 52 waterways over the next five years as new stretches are commissioned.

What Is Driving the Growth

The cargo growth on India’s national waterways is being driven by a combination of factors: the Jal Marg Vikas Project’s deepening of the Ganga Waterway (NW-1) to accommodate larger vessels; the commissioning of terminal infrastructure at Varanasi, Haldia, Patna, and Sahibganj; the expansion of the Brahmaputra Waterway (NW-2) serving Northeast India; and the integration of inland waterway routes with rail and road logistics through multimodal terminals. The Syama Prasad Mookerjee Port Kolkata’s first-ever midstream container transfer last week — directly loading export containers from an inland barge onto an ocean-going vessel at Diamond Harbour — represents precisely the kind of sea-river interoperability that makes waterway cargo commercially competitive.

The NW-57 delivery of 300 tonnes of cement to Hatsingimari in Assam via the River Kopili — reported in Monday’s newsletter — illustrates the inland waterways network’s expanding geographic reach into Northeast India’s previously underserved districts. With the Hormuz crisis making seaborne supply chains more expensive and less reliable, the domestic waterways network provides a cost-effective and disruption-resistant alternative for high-volume, low-value commodity movements between inland production centres and consumption markets — a role that the record FY25 cargo figures confirm is already being deployed at commercially meaningful scale.

SCR notifies Veldurthi goods shed as container terminal

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South Central Railway has notified the Veldurthi Goods Shed in the Hyderabad division as an exclusive container rail terminal, giving a new push to container freight movement and multimodal logistics in the region. The move is aimed at improving handling efficiency and creating a more customer-friendly logistics corridor for container traffic.

With the upgrade, Veldurthi is now positioned to support safer and more streamlined container operations, including double-stack movement under electrified lines. The facility recently handled its first container rake after being converted into an ECRT, marking an important milestone for South Central Railway’s freight network.

The terminal notification is expected to strengthen logistics connectivity for businesses using rail-based container transport and add capacity to the inland cargo chain. It also reflects Indian Railways’ broader push to expand dedicated freight infrastructure and improve operational efficiency across key cargo corridors.

Gateway Distriparks Launches Pipavav Import Rail Service

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Gateway Distriparks has introduced a weekly import block train service from Pipavav Port to North India ICDs, creating a faster and more reliable rail link for import cargo moving inland from the western coast. The new service is designed to improve transit efficiency, reduce dependence on road movement, and strengthen supply chain connectivity for customers using Pipavav as an entry point.

The service is being positioned as a dedicated rail option for importers seeking better planning, quicker evacuation from the port, and smoother movement into key consumption and industrial markets in North India. Gateway Distriparks already operates regular container train services connecting major ports such as Nhava Sheva, Mundra and Pipavav with ICDs and dry ports across the hinterland.

Industry updates indicate that similar Pipavav-linked rail services have been used to support northbound cargo flows, with weekday schedules aimed at improving turnaround and port evacuation efficiency. The latest move reflects the continued expansion of port-rail logistics solutions as Indian importers look for faster inland connectivity and lower congestion at coastal terminals.

Indian Railways Witnesses Freight and Passenger Growth in June

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Indian Railways reported solid operational gains in June, posting simultaneous growth in freight loading and passenger traffic across key segments. The national transporter loaded 142.21 million tonnes of freight during the month, up 4% from 136.71 million tonnes in June last year, while passenger numbers rose to 638.1 million from 623.7 million a year earlier, marking 2.3% growth in overall ridership.

According to the railway ministry, higher freight loading, increased passenger traffic and continued augmentation of passenger services highlight Indian Railways’ sustained efforts to support economic growth, strengthen logistics and expand convenient travel options nationwide. Freight earnings also improved, with the railways generating additional revenue of about ₹430 crore in June, a 3% increase over June 2025.

Several major commodity groups contributed to the freight performance, signalling robust demand from core sectors of the economy. Fertilizer loading grew 19.1%, balance other goods 17.3%, iron ore 9.4%, domestic coal 4.9%, total coal 3.6% and clinker 7.2% during the month, underscoring the role of the rail network in supporting industrial activity and infrastructure development.

The June results build on steady momentum in the first quarter of FY27 (April–June), when Indian Railways loaded 419.08 million tonnes of freight, up from 413.05 million tonnes in the same period of FY26. Across the quarter, iron ore loading increased by 7.44%, clinker by 6.54% and balance other goods by 12.16% compared with the previous year, pointing to broad‑based growth in commodity flows.

To meet higher electricity demand during the extended summer season, Indian Railways ramped up domestic coal transportation to thermal power stations. Coal supplies to power plants in June were 7% higher than a year ago, helping support uninterrupted power generation and grid stability across the country.

Passenger traffic also showed positive trends, particularly in the non‑suburban segment that covers short‑ and long‑distance journeys. Non‑suburban passenger numbers rose 3.9% in June, from 289 million to 300.4 million, while the suburban segment, which includes daily commuter services, registered 0.9% growth, increasing from 334.6 million to 337.7 million passengers.

Alongside higher volumes, Indian Railways is advancing a broad modernisation drive in passenger services, including the expansion of premium and semi‑high‑speed train offerings. The number of Vande Bharat services has risen to 164, including the newly introduced Vande Bharat Sleeper service between Howrah and Kamakhya, while Amrit Bharat train services now stand at 72, with four new services launched in June to bolster affordable and modern long‑distance connectivity.

The ministry said that the continued growth in freight loading and passenger traffic reflects Indian Railways’ commitment to efficient logistics, reliable passenger services and modern rail infrastructure. It added that the railway system remains focused on supporting India’s economic expansion through capacity augmentation, improved operational efficiency and customer‑centric initiatives, while maintaining safe, dependable and passenger‑friendly transport services across the country.

India’s First Hydrogen-Powered Train Completes Successful Trial

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India’s first hydrogen‑powered train has successfully completed a trial run on the Jind–Sonipat route in Haryana, marking a milestone in the railways’ shift toward low‑emission traction. The indigenous trainset, developed and tested by Indian Railways’ manufacturing and technical units, ran through a series of performance checks including speed trials, braking and stability tests, and hydrogen fuel‑system validation.

Trial performance and technical notes

The train attained its target speeds during the trial and completed prescribed oscillation and safety assessments required before certification for regular operations. Hydrogen fuel cells onboard convert hydrogen to electricity, emitting only water vapour at the point of use, which helps reduce greenhouse gas and particulate emissions on non‑electrified routes. The trial also evaluated onboard storage, refuelling readiness, and integration with existing railway signalling and safety systems.

Manufacturing and collaboration

The trainset was developed in India with contributions from domestic workshops and technology partners, demonstrating strengthened local capabilities in alternative‑fuel rolling stock. The project followed regulatory and safety clearances for prototype trials and is part of broader efforts to diversify motive power where electrification is not yet feasible or as a complementary low‑carbon option.

Operational implications

If cleared for regular service after remaining tests and approvals, hydrogen trainsets could offer a viable zero‑emission alternative for regional and branch lines, reducing dependence on diesel on non‑electrified corridors. Operators would however need to establish hydrogen production and refuelling infrastructure, staff training, and maintenance regimes to ensure safe, cost‑effective operations at scale.

Policy and sustainability context

The trial aligns with national targets to reduce transport emissions and demonstrates a practical step toward decarbonising rail transport while leveraging indigenous manufacturing. Adoption at scale will depend on lifecycle cost comparisons with electrification and diesel, availability of green hydrogen, and supportive policy for infrastructure roll‑out.

Illustrative example

A hypothetical regional deployment could replace several daily diesel multiple unit services on a 150‑km corridor with hydrogen trainsets, cutting local emissions and improving air quality while requiring a single refuelling depot at a terminus.

Madhya Pradesh Approves ₹600 Crore Logistics Park In Indore

The Madhya Pradesh government has approved a new logistics park in Indore district with an expected investment of over ₹600 crore, an official said on Wednesday, marking a major boost to the state’s logistics infrastructure and supply chain network. The Madhya Pradesh Industrial Development Corporation (MPIDC) has allotted approximately 23 hectares of land to a private company for setting up the logistics park in Machal village.

Officials said the project will strengthen logistics infrastructure for goods transportation and supply chain management across the state, with the proposed park having direct connectivity to the Indore–Ahmedabad National Highway. The facility will also be linked to the Pithampur industrial area, accelerating the speed of goods transportation and supply to key manufacturing hubs in the region.

The new logistics park is expected to play a significant role in enhancing freight movement and regional connectivity, particularly for industries in Indore and its surrounding industrial zones. While a separate Multi-Modal Logistics Park (MMLP) near Pithampur is being developed on a 255-acre site, this new private logistics park will complement existing infrastructure and expand the state’s capacity to handle growing cargo volumes.

Welspun One Targets 10 Mn Sq Ft Leasing in Next 3 Years

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Warehousing and industrial real estate platform Welspun One has announced plans to lease over 10 million sq ft of warehousing and industrial space in the next three years—nearly doubling its current operational footprint—as it bets on India’s domestic supply chain boom.

The company leased 2.5 million sq ft in FY26 and is now expanding across key logistics hubs while developing a 4.5 million sq ft Free Trade and Warehousing Zone (FTWZ) at Nhava Sheva (JNPA). Key projects under construction include the country’s largest FTWZ development at Nhava Sheva with over 4.5 million sq ft of space, a multi-format asset exceeding half a million sq ft in Thane for premium retail, commercial and distribution use, a 1.2 million sq ft logistics park in Chakan, Pune, and a 1.2 million sq ft logistics and industrial park in Hoskote, Bengaluru.

The planned leasing volume includes a 5.9 lakh sq ft single-box facility for Amazon India, a 20-metre-high warehouse for AAJ Supply Chain, and a controlled-environment facility of over 2 lakh sq ft built to the precise specifications of a leading medical equipment manufacturer. The medical equipment facility signals how the warehousing sector is moving well beyond commodity storage into specialised, climate-controlled environments.

The platform is supported by ongoing construction and capital deployment, with total delivery of an additional 3.5 million sq ft in the next four quarters across its assets. Welspun One is also expanding into adjacent segments like in-city distribution and retail, leveraging its growing portfolio to serve e-commerce, pharmaceuticals, retail and industrial customers.

Welspun One’s expansion strategy aligns with rising demand for grade-A warehousing across India’s major logistics corridors, driven by the growth of e-commerce, manufacturing and the need for modern supply chain infrastructure. The company’s aggressive leasing and development plans are expected to significantly strengthen its position in India’s logistics real estate market by 2029.

Jalna Dry Port Receives First Trial Container Rake

The first trial container rake successfully arrived at the Multi-Modal Logistics Park (MMLP). also known as the Dry Port project, in Jalna, Maharashtra, on May 26, 2026, marking a historic milestone for the industrial and logistics sectors in Marathwada.

Inauguration

District Collector Ashima Mittal, who welcomed the inaugural trial container rake, stated that the development marks the formal commencement of rail-linked freight services in Jalna and the entire Marathwada region.

“The first inbound container rake, carrying sponge iron for a private company, arrived at the railway siding within the MMLP Jalna premises. The successful trial has opened new avenues for industries, facilitating integrated multi-modal freight transport that seamlessly coordinates rail, road, and port connectivity,” she said.

Stakeholder Collaboration

Jalna district administration has lauded the coordinated efforts undertaken by Indian Railways, Customs, various state government agencies, and other relevant stakeholders for the successful implementation of the project.

Project Structure

The MMLP at Jalna is hailed as the country’s first dry port, established through the National Highways Logistics Management Limited (NHLML) — a wholly-owned subsidiary of the National Highways Authority of India (NHAI) — in collaboration with Jawaharlal Nehru Port Authority.

The project has been developed under a special purpose vehicle (SPV) named “Maharashtra MMLP Private Limited” (MMPL). The first phase of the Dry Port project has been commissioned across an area of around 64.5 acres.

East India, Meet KSH Integrated Logistics: 60,000 Sq. Ft. of Grade-A Logistics Infrastructure Now Live in Kolkata

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Grade-A warehousing, value-added services, and last-mile EV delivery, built to power Eastern and North-Eastern India’s supply chains

KSH Integrated Logistics Pvt. Ltd. has announced the launch of its first warehouse in Eastern India, a 60,000 sq. ft. Grade-A, compliant, multi-client facility in Kolkata, built to serve businesses expanding across Eastern and North-Eastern India.

With this, KSH brings its integrated logistics capabilities into one of India’s most dynamic and fast-growing supply chain corridors and signals a clear intent to build where India is heading next.

As consumption patterns shift and regional trade volumes grow, Eastern India has emerged as a critical logistics node. The Kolkata facility has been designed to meet this demand head-on, offering businesses flexible, scalable warehousing without the burden of heavy capital investment in fixed assets. Built to serve sectors including FMCG, FMCD, and fintech, the facility combines modern infrastructure with the operational agility that businesses need to move faster and smarter in the region.

Speaking on the expansion, Vinay Patil, Chief Executive Officer, KSH Integrated Logistics Pvt. Ltd., said, “Kolkata is a gateway to an entire region that is evolving rapidly. Businesses today need logistics partners who combine scale with flexibility, and that is exactly what this facility is built to deliver. This is an important step in our vision of building a truly connected logistics network across India.”

Beyond storage, the facility offers a comprehensive suite of value-added services including pre-packing, kitting, MRP stickering, and customised supply chain solutions. Last-mile delivery will be supported through electric vehicles, reflecting KSH’s commitment to sustainable and future-ready logistics operations. The facility is fully compliant with fire safety standards, equipped with fire hydrants, sprinkler systems, and all requisite safety infrastructure. Underpinning it all is an advanced Warehouse Management System (WMS) and Transportation Management System (TMS), enabling real-time inventory visibility, streamlined fulfilment, and consistently reliable service for customers.

Expected to generate over 100 direct and indirect employment opportunities, KSH’s new warehouse will contribute meaningfully to the local economy while raising the standard of logistics infrastructure across the region.

This addition adds an important piece to KSH’s growing national network, one that now reaches from the west coast to the eastern frontier. With more in the pipeline, the company remains focused on building logistics infrastructure that keeps pace with India’s growth.

Western Markets Power India’s Warehousing Demand Rebound

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India’s warehousing sector is seeing a demand‑side recovery led by western markets such as Mumbai and Pune, even as developers and investors turn sharply cautious on committing new capital and supply. Recent data show leasing/absorption bouncing back from the steep correction in mid‑2025, with Q1 2026 pan‑India activity crossing 11 million–11.4 million sq ft, but this growth is heavily concentrated in a few western hubs.

Mumbai has emerged as the single largest warehousing market in the country, accounting for roughly 39–42 percent of quarterly absorption, driven primarily by strong traction in Bhiwandi and rising requirements from 3PL, engineering, manufacturing and consumer‑facing sectors. Pune’s share has also jumped markedly, with the city contributing close to 39 percent of national absorption in Q1 2026 after several large transactions closed, taking the combined Mumbai–Pune share in some recent quarters to more than 80 percent of total demand.

Despite this robust occupier activity, investment flows into new warehousing projects have slowed, as developers grapple with higher financing costs, expensive land in key micro‑markets and uncertainty linked to global geopolitical flashpoints that are affecting trade and supply chains. Many builders are delaying or downsizing new parks and adopting a build‑to‑suit or phased‑development approach, which could create a medium‑term mismatch between demand and supply and put upward pressure on rents in prime western locations.

Sector analysts note that policy support through the National Logistics Policy and continued infrastructure build‑out are keeping occupier sentiment positive, but warn that without a pick‑up in fresh capital deployment, recovery will remain uneven and skewed towards established western corridors rather than spreading evenly to emerging logistics hubs across the country