Indian logistics firm AVG Logistics has entered an INR 105 crore lease agreement with Indian Railways for a goods train running from Chennai to Guwahati.
AVG Logistics has sealed an INR 105 crore lease agreement with Indian Railways for a goods train connecting Chennai to Guwahati. In this six-year deal, Indian Railways will handle the train’s management and operation, while AVG Logistics takes charge of loading it with goods. Operating four times a month, the train is set to complete 313 trips during the lease period.
AVG Logistics plans to transport a diverse range of goods, including tyres, textiles, readymade garments, FMCG products, and agarbattis. The Chennai-Guwahati route will see the train carrying items like tea, bamboo products, plastic goods, mosquito repellents, FMCG items, and hair oil from Guwahati.
This agreement aligns with the Parcel Cargo Express Train scheme introduced in 2020, offering logistics companies an alternative to booking entire goods cabins. Unlike traditional agreements, this scheme provides high priority in traffic, operates like an express passenger train, and includes designated stops for loading and unloading.
AVG Logistics emphasised the train’s efficiency, covering the 2,500-kilometer distance between Chennai and Guwahati in just 72 hours. Each train, initially with a carrying capacity of 364 tonnes per trip, is expected to increase to 484 tonnes within six months.
