DP World Enhances India’s Logistics with New Rail Routes

DP World has launched two rail freight services connecting Gujarat to Kolkata, aiming to streamline cargo movement and boost India’s supply chain efficiency.

On 6 August 2025, DP World, a private rail freight operator, introduced two domestic freight routes linking Bhimasar and Hazira in Gujarat to Kolkata in West Bengal. The services, operating twice monthly, have transit times of eight and seven days, respectively, with each carrying 90 TEUs of goods like edible oils, chemicals, steel, and grains. This initiative strengthens connectivity between India’s western industrial hubs and eastern trade centres, supporting faster and more reliable supply chains.

The Bhimasar-Kolkata route targets industrial goods and food grains, while the Hazira-Kolkata service focuses on chemicals and retail cargo. DP World’s $207 million investment in rail freight solutions includes over 100 container rakes and 16,000 containers, enhancing its multimodal logistics network. The company’s Mundra terminal and the upcoming 2.19 million TEU terminal at Tuna Tekra further integrate Gujarat’s industries with global trade, complementing domestic connectivity.

India’s logistics sector faces challenges like high costs, accounting for 14% of GDP compared to 8–10% in developed nations. DP World’s rail services aim to reduce transit times and costs, supporting India’s goal of cutting logistics expenses to 9% of GDP by 2030. The routes align with growing trade demands, with Gujarat’s ports handling 35% of India’s cargo. However, infrastructure bottlenecks, such as congested rail networks, could limit scalability.

The initiative supports regional integration, enabling small businesses to access broader markets. It also aligns with India’s sustainability goals by reducing road transport emissions, though rail electrification remains incomplete. DP World’s expansion reflects confidence in India’s economic growth, projected at 6.8% for FY26, driven by manufacturing and trade.

In conclusion, DP World’s new rail freight routes mark a significant step in enhancing India’s logistics infrastructure. Continued investment and infrastructure upgrades are essential to sustain efficiency gains and support economic growth.

Source: Outlook Business