India’s shift towards sustainable cargo transport infrastructure gained a major push this week as Container Corporation of India Ltd (CONCOR) and GAIL (India) Ltd entered into a strategic partnership aimed at rolling out LNG infrastructure across the country.
In a formal agreement signed in New Delhi, the two state-run enterprises committed to developing a cleaner, low-emission logistics ecosystem by enabling LNG-powered road freight solutions through CONCOR’s network of terminals. The move signals a decisive step forward in India’s ambition to decarbonise its freight corridors and reduce the sector’s reliance on diesel, a fossil fuel known for its heavy carbon footprint. Under the agreement, the two entities will collaborate to install LNG refuelling stations at key multimodal hubs operated by CONCOR. The aim is to offer an alternative fuel solution for the corporation’s growing fleet of heavy-duty road transport vehicles that operate in tandem with its rail cargo services.
The initiative’s first rollout will begin at the Khodiyar terminal in Ahmedabad. Officials confirmed that this pilot location will serve as a proof of concept, paving the way for the nationwide deployment of LNG infrastructure at several other high-volume logistics points. This collaboration emerges at a time when India’s freight industry is grappling with twin challenges — the need to boost efficiency in cargo movement and the urgent imperative to lower greenhouse gas emissions. With freight transport responsible for nearly 40% of the transport sector’s total emissions in India, the adoption of low-emission fuels such as LNG is now viewed as a critical measure for both industry competitiveness and climate action.
Executives from both organisations stressed that the agreement is not just about fuel supply logistics, but a broader shared commitment to India’s energy transition. The LNG-powered fleet being adopted by CONCOR already includes over 130 dedicated trailers, and company sources confirm that early trials have demonstrated meaningful reductions in CO₂ emissions. These efforts are reinforced by GAIL’s national infrastructure footprint and technical expertise in LNG storage, handling, and distribution. The pact also opens up a new frontier for public sector synergy in India’s clean mobility roadmap. By aligning the strengths of a transport logistics major with a natural gas giant, the collaboration illustrates how sectoral integration can address complex sustainability goals more effectively. While CONCOR brings its extensive pan-India logistics network and multimodal capabilities, GAIL complements the partnership with its upstream gas sourcing, infrastructure deployment, and downstream fuel supply chain.
At the heart of this initiative is the long-term vision of transitioning India’s logistics backbone towards greener alternatives. The initial phase of the partnership will focus on enabling last-mile connectivity through LNG-based trucking, with future phases potentially involving hybrid energy models and even hydrogen-based cargo transport, depending on feasibility and technology maturity. Beyond environmental benefits, this shift is also expected to create ripple effects across the logistics industry. With a reliable LNG supply network in place, more fleet operators may be encouraged to transition from diesel to cleaner fuels. As operational costs of LNG-powered trucks continue to decrease and emissions performance improves, a wider behavioural change in cargo movement may follow.
Industry observers have hailed the development as a crucial step in India’s broader energy and infrastructure policy. With initiatives such as the National Logistics Policy and the PM Gati Shakti plan seeking to modernise and green the supply chain ecosystem, partnerships like these provide practical, scalable models for implementation. In terms of policy alignment, this collaboration mirrors the objectives outlined under India’s climate commitments, including the Panchamrit goals and Nationally Determined Contributions (NDCs) under the Paris Agreement. It also underscores the strategic role of public sector undertakings in not just executing policy mandates, but in proactively shaping low-carbon growth narratives.
Environmental advocates have welcomed the focus on LNG, which although a fossil fuel, emits significantly less carbon dioxide than diesel. Additionally, LNG-powered vehicles are quieter, reducing noise pollution in and around logistics parks, urban freight corridors, and semi-urban areas. The move could also help reduce India’s crude oil import dependency, thereby boosting energy security. The decision to begin the infrastructure development at Khodiyar, a major node in the western freight circuit, demonstrates strategic intent. Located near key industrial clusters and close to ports, the terminal is ideally positioned to serve high cargo volumes and attract early adopters of green transport options.
While both organisations have indicated future scalability, they have also expressed openness to exploring related sectors such as renewable energy deployment, carbon offset mechanisms, and supply chain digitisation as part of their green logistics strategy. In a sector that has long depended on conventional fuels for economic viability, the CONCOR-GAIL partnership serves as a reminder that sustainability and efficiency can go hand-in-hand. The challenge now lies in executing this vision swiftly and equitably, ensuring that cleaner fuel choices are not just available, but also accessible and affordable across India’s diverse logistics landscape.
CONCOR and GAIL Partner for Green Freight
