AVG Logistics to operate Chennai-Guwahati parcel express train

NEW DELHI : AVG Logistics Ltd has taken on lease a goods train running from Chennai to Guwahati for Rs 105 crore. The train will be used by AVG Logistics to transport its goods and will ply four times in a month, completing 313 trips during the lease period of six years.

Although the train will be managed and operated by the Indian Railways, the responsibility for filling the train with goods lies with AVG Logistics, and the train will cover the 2,500 kilometer distance between the two cities in just 72 hours.

AVG will transport goods such as tyres, textiles, readymade garments, FMCG products and agarbattis. From Guwahati, the train is expected to transport goods like tea, bamboo products, plastic goods, mosquito repellents, FMCG items and hair oil.

The deal is not the first of its kind. Indian Railways has inked similar deals with DTDC Express, DRTC Logistics, DOT Express, Patel Roadways, V-Trans and FastDespatch Logistics. The scheme, called Parcel Cargo Express Train, was introduced in 2020, and promoted as an alternative to booking an entire goods cabin.

Sanjay Gupta, Managing Director & CEO, AVG Logistics says: “We are excited about our new collaboration with Indian Railways. This collaboration highlights our strong commitment to improving cargo transportation services, bringing us nearer to our sustainability goals and increasing the proportion of green (eco-friendly) logistics in our revenue stream. Generating ₹105 crore revenue from this contract enhances our financial standing and helps us fuel our ambition to undertake more ambitious projects, thereby elevating our overall financial performance. Through this contract, while departure of the train from Chennai to Guwahati, the company will serve the industries in the field of tyres, hosiery, garments, FMCG, incenses etc, and during the departure of the train from Guwahati to Chennai, the company will serve the industries in the field of tea, bamboo, plastic granules, mosquito repellent, FMCG, Hair oil etc.

Companies, such as cement makers and miners, sign long-term agreements with Indian Railways to operate dedicated “Cement Express” trains between their manufacturing plants and major markets and distribution centers.

However, the PCET scheme is different in two respects — it is given high priority in traffic and moves like an express passenger train. The train also has designated stops, from where goods can be loaded and unloaded by the logistics company.

This allows logistics companies adhere to strict timelines for the delivery of their goods.

For example, the Chennai-Guwahati train will cover the 2,500 kilometer distance between the two cities in just 72 hours.

AVG Logistics said each train will have a carrying capacity of 364 tonnes per trip, which will be enhanced to 484 tonnes in six months.

Founded in 2010, AVG Logistics offers technology-enabled, customized solutions for large corporations as well as small and medium enterprises.