AVG Logistics Limited has clinched a six-year Parcel Cargo Express Train (PCET) lease contract valued at nearly ₹198 crore from Indian Railways.
This move is set to reshape freight movement across one of the country’s critical corridors connecting Delhi and Ludhiana with Guwahati and Agartala bridging the North East with the National Capital Region.Under the agreement, AVG will operate four round trips every month, totalling 313 trips over the contract duration. Each journey will span approximately 2,768 kilometres, taking around 90 hours, initially transporting 364 tonnes of cargo per trip. This capacity is expected to increase to 484 tonnes within six months. The project signals a significant leap in promoting dependable, tech-enabled and environmentally conscious cargo movement over long distances. This logistics initiative could emerge as a critical enabler for economic inclusivity and regional equity, especially in the North East. Historically underserved in terms of freight connectivity, the region now gains a reliable rail corridor that supports consistent cargo movement while relieving pressure on carbon-intensive road transport. The introduction of PCET services along this route represents a more energy-efficient alternative to trucking, in line with India’s net-zero ambitions and commitment to decarbonising freight networks.
The contract also underscores Indian Railways’ strategy to strengthen private sector participation in operational freight logistics while driving modal shift from road to rail. With dedicated infrastructure and fixed time slots, the PCET service reduces delays, enhances predictability, and contributes towards building a resilient supply chain backbone for the country. AVG Logistics, established in 2010, has grown into a major player in multimodal transport with a fleet exceeding 3,000 vehicles and over 705,000 square feet of warehousing space, including cold-chain capacity. The firm operates through 50-plus automated branches across the country, offering integrated 3PL, warehousing and distribution services to top-tier FMCG, telecom, and manufacturing brands. The rail contract not only consolidates its capabilities in multimodal logistics but also positions it strategically in the fast-growing regional cargo segment.
From a market perspective, AVG’s stock performance reflects increasing investor confidence, having surged 20 percent from its 52-week low. With India’s logistics sector expected to grow at a double-digit rate amid policy focus on infrastructure and digital freight corridors, this deal places the company at the forefront of modern, sustainable logistics delivery. More than just a commercial deal, this contract represents a broader commitment to low-emission freight transport and more inclusive logistics development. While many challenges persist in transforming last-mile access and addressing urban freight congestion, such strategic partnerships offer a promising blueprint for a future where economic progress, environmental sustainability and regional connectivity move together on parallel tracks.
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