Archive · 22 Sep 2025
Road Transport Cheaper Than Rail for Heavy Logistics
The government looked at how much it costs to move things by road and by train.
They found that for heavy stuff, using special trucks is actually cheaper than trains, especially when you consider getting things right to where they need to go.
Trains are usually cheaper for long distances, but not always.
The point where it becomes cheaper to use trains instead of trucks is around 600 km.
But trucks often win because they deliver right to your door, are easier to manage, and work better for certain goods.
The cost of moving goods in India takes up about 8% of the country's money.
Heavy-duty road transport costs Rs 1.51 per tonne-km.
Rail logistics costs Rs 1.96 per tonne-km without first/last mile.
Road transport is more economical for short distances due to first/last mile costs.
Multimodal transport becomes more economical beyond the 600 km mark.
Road transport dominates on many routes due to door-to-door service and ease of use.
- Who
- Department For Promotion of Industry and Internal Trade (DPIIT)
- What
- Assessment of logistics costs in India.
- When
- 2023-24
- Where
- India
- Why
- To compare the cost-effectiveness of road and rail transport.
- Logistics Cost in India
- 7.97% of GDP (2023-24)
- Road Transport Cost (Heavy Duty)
- Rs 1.51 per tonne-km
- Rail Logistics Cost
- Rs 1.96 per tonne-km (without first/last mile)
- Break-even Point (Road vs. Multimodal)
- Around 600 km