In a significant development for India’s logistics sector, AVG Logistics has secured a ₹198 crore, six-year contract from Indian Railways. This deal enables AVG Logistics to operate dedicated Parcel Cargo Express Trains (PCETs) under the Ministry of Railways’ ambitious PCET leasing scheme. With this move, the company aims to strengthen its multimodal capabilities and reduce its carbon footprint through green logistics initiatives.
Expanding Presence on High-Demand Routes
Under this new agreement, AVG Logistics will run a dedicated PCET between Agartala, Guwahati, Ludhiana. The train will operate once a week, with 313 round trips scheduled over a span of six years. Impressively, each trip aims to complete the journey in approximately 72 hours, ensuring faster cargo delivery across major industrial corridors. This route connects the manufacturing and consumption hubs in South and North India, offering a competitive edge to AVG Logistics in terms of speed and reliability.
The company will initially carry 364 tonnes per trip, which will increase to 484 tonnes after six months of operations. Through this corridor, AVG Logistics aims to improve connectivity in the eastern and northeastern regions of the country.
Leveraging the Parcel Cargo Express Train Scheme
Launched in 2020, the PCET scheme allows logistics companies to lease entire trains from Indian Railways for exclusive use. These parcel trains receive higher operational priority than regular freight trains, ensuring strict delivery timelines are met. Moreover, these trains stop only at designated stations, which reduces delays and allows efficient cargo loading and unloading.
By participating in this scheme, this logistics company gains access to high-priority cargo movement on fixed schedules, which enhances service quality. The company also enjoys operational autonomy, making it easier to serve its clients across diverse sectors, including e-commerce, retail, and automotive.
Driving Efficiency and Green Logistics
AVG Logistics is using these parcel trains to support its broader goal of integrating environmentally friendly logistics solutions. By shifting a significant share of cargo movement from road to rail, the company reduces emissions while also lowering operational costs. This aligns with both corporate sustainability targets and national objectives to decarbonize the logistics sector.
Incorporating rail transport into its service offerings allows AVG Logistics to create end-to-end cargo solutions that are both reliable and environmentally responsible. The company believes this strategic move will help them meet rising demand for timely and sustainable transportation.
Strengthening Multimodal Capabilities
AVG Logistics has consistently invested in expanding its multimodal infrastructure, and these two PCET contracts further strengthen that direction. By combining road, rail, and warehousing services, the company ensures better cargo visibility, improved turnaround times, and higher customer satisfaction.
With its growing presence in the Indian Railways network, AVG Logistics is poised to serve more customers efficiently across long-distance routes. Furthermore, it aims to reduce dependence on road freight, which often faces congestion and longer transit times.
Looking Ahead
These strategic contracts with Indian Railways mark a transformative step for AVG Logistics. The company is now better positioned to tap into India’s growing demand for faster, more reliable logistics solutions. By embracing the PCET scheme, AVG Logistics demonstrates how public-private partnerships can enhance service delivery in the supply chain industry.
As the company prepares to begin operations on both routes, it expects significant revenue growth and operational scale. Through these developments, AVG Logistics reinforces its status as a forward-looking player in India’s evolving logistics landscape.
