Western Railway's Ahmedabad Division has awarded Emirates Logistics India Private Limited a 35-year contract to develop a cargo terminal at Khakharechi in Gujarat, marking the division's first project under Schedule-II of the Railway Board's Gati Shakti Cargo Terminal Policy 2026 . The project will use 80,413 square metres of railway land to expand freight loading and unloading facilities through private investment, according to Maritime Gateway's report on 6 November 2026.
The commercial structure reflects the Gati Shakti programme's objective of mobilising private capital for rail-linked logistics infrastructure. Indian Railways will receive annual land licence fees exceeding ₹15 lakh, alongside revenue-sharing income, without providing any capital investment for the development . This arrangement allows the railway to expand terminal capacity at locations with industrial demand while transferring the construction and operational risk to a private concessionaire. The 35-year tenure provides the developer with a long enough horizon to recover its investment and generate returns.
The Khakharechi terminal adds to Gujarat's expanding network of privately developed rail freight facilities. The Ahmedabad Division's eight operational Gati Shakti Cargo Terminals handled more than 2.3 million tonnes of freight between April and October 2026, generating revenue exceeding ₹330 crore . During those seven months, the terminals loaded over 1,700 rakes comprising more than 65,000 wagons, carrying cargo that included containers, salt, bentonite, cement, fertilisers, sugar and pulses . Divisional Railway Manager Ved Prakash said the Khakharechi facility would improve freight options for regional businesses and encourage rail transport through better cargo-handling infrastructure.
The national Gati Shakti terminal programme has scaled substantially since its introduction in December 2021. In a parliamentary response on 7 August 2026, the Ministry of Railways said 142 GCTs had been commissioned, representing an estimated annual handling capacity of 224 million tonnes . These facilities had mobilised approximately ₹10,000 crore in private investment and handled 146 million tonnes during 2025-26. The programme's objectives include accelerating terminal development, improving existing facilities and simplifying approvals for private participation.
Gujarat has been a particular focus of terminal expansion. On 15 September 2026, Railway Minister Ashwini Vaishnaw inaugurated the Shivlakha GCT in Kachchh and dedicated terminals at Bhimasar in Kachchh, Devaliya in Morbi and Chandisar in Banaskantha to the nation . He also laid the foundation stone for the Linch terminal in Mahesana, stating at that event that the number of commissioned GCTs nationwide had reached 150. The Khakharechi award extends this pattern into the Ahmedabad Division's jurisdiction.
The Gati Shakti programme also promotes operational efficiency through "engine-on-load" arrangements, under which a locomotive remains with the train during loading or unloading within the permitted free time, allowing departure once cargo operations finish . This approach reduces turnaround time and improves wagon utilisation, complementing the physical terminal infrastructure that the private developer will build. The Khakharechi contract does not specify a commissioning date or planned annual handling capacity, and the announcement concerns a development contract rather than an operational milestone.
For India's rail freight sector, the Khakharechi award illustrates the model that the Gati Shakti programme is designed to replicate: private capital building terminal capacity on railway land, with the railway capturing land value and revenue share without bearing construction costs. The model is particularly relevant for Gujarat, where industrial clusters producing salt, cement, fertilisers and chemicals need rail-linked loading facilities to move bulk cargo efficiently. If the Khakharechi terminal proceeds on schedule, it could provide a template for further Schedule-II projects in the division.
Looking ahead, the key milestones are the execution of the concession agreement, the commencement of construction, and the commissioning of the terminal. The absence of a disclosed timeline means that the project's contribution to freight capacity will not be measurable in the near term. For now, the award signals that private operators see commercial value in developing rail cargo terminals in Gujarat, and that the Gati Shakti framework is attracting investment beyond the major industrial corridors where most of the initial projects were concentrated.