New Changes in Parcel Sector by Indian Railway

In the Railway Budget 2016 - 2017 Railway Minister Shri Suresh Prabhu announced that container sector would be opened to all traffic barring coal, specified mineral ores and part-loads during the non-peak season. All existing terminals/sheds would be granted access to container traffic, where considered feasible. overhaul of parcel business - liberalize the current parcel policies including opening the sector to container train operators. 

As per the promises in the Railway Budget Minister of Railways Shri Suresh Prabhakar Prabhu launched new facilities in the Parcel Sector. He announced the new changes in the Parcel Sector on 12th July, 2016.  Following are the new initiatives.

Liberalised Parcel policies by Railway
New Changes in Parcel Sector by Railway



  • Announcement of policy opening category I and II Goods sheds for Container Lift on/Lift off operations by private container operators.
  • Announcement of policy opening parcel sector to container operators

Let’s check the details.

Parcel Services to Private Sector - Railway


Railways has opened up its parcel services to private sector. Now, private operators can collect small and large parcels and send it through container trains. The container trains would be operated by private players.

“Parcel business is increasing as it is a fast moving sector. We want to increase our parcel share which is currently not much,” Railway Minister Suresh Prabhu said after announcing the liberalized parcel policy.

With this initiative, Railways expects an increase in revenue . “We also hope to free our platforms from loading and unloading of parcels in passenger trains,” an official said.

Announcing the liberalized parcel policy, Railway Minister Suresh Prabhu on Tuesday said: “Parcel business is increasing as it is a fast moving sector. We want to increase our parcel share which is currently not much.”

 He said Railways would be tying up with the Department of Posts which will soon be rolling out a new policy to expand its parcel service.

A new mechanism will come into effect after the new policy is implemented. According to it, Container Train Operators (CTO) will operate parcel special trains consisting of parcel vans. A parcel special train will have 20 parcel vans. The private container train operators will play the role of an aggregator. Railways will only provide the facility of moving them to the destination.

Container Train Operators to run Parcel Special Trains : Railway

Railways today opened its parcel business segment to container train operators to run "parcel special trains" in a bid to shore up its earnings.  Following are the details.

For opening of parcel sector for Container Train Operators(CTOs), following guidelines are being issued to open parcel segment for the Container Train Operators.

  • Container Train Operators (CTOs) shall be allowed to operate Parcel Special trains (non-leased) consisting of Parcel Vans on indent basis.
  • The minimum composition of Parcel Special train shall be 20 Parcel Vans and one Brake van. Accordingly, Container Train Operators (CTOs) shall place indent for minimum of a rake.
  • Container Train Operators (CTOs) shall aggregate the parcel cargo from various customers and offer the same in full rake load.  At destination, the parcel cargo shall be delivered to the CTO for further segregation and handing over to various customers.
  • Container Train Operators (CTOs) shall be permitted to load and unload the Parcel Special train from Container Rail Terminal (CRT), Inland Container Depot (ICD), Domestic Container Terminal (DCT), Multi-modal Logistic Park (MMLP) and all Railway’s terminals notified for handling of parcel trains. 
  • The existing tariff shall be made applicable.


"Basically, white goods can be transported in parcel. Pharmaceuticals, electronics and other similar items can also be transported in a big way in parcel,"  official said.


Targeted beneficiaries are private container train operators, logistic companies, all freight customers, third party freight cargo aggregators, small packet size parcel operators and end-users and manufacturers.

As per the promises in the Railway Budget Minister of Railways Shri Suresh Prabhakar Prabhu launched new facilities in the Parcel Sector. He announced the new changes in the Parcel Sector on 12th July, 2016. Following are the new initiatives. Announcement of policy opening category I and II Goods sheds for Container Lift on/Lift off operations by private container operators. Announcement of policy opening parcel sector to container operators. Following are the details.

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