Indian Railways has approved a major licensing reform for private Container Train Operators (CTOs), replacing the existing route-based licensing structure with a single all-India licence. The move will allow eligible operators to run container trains across the Indian Railways network without being restricted by specific licence categories.

Previously, CTOs required permissions based on different route categories, with fees varying according to the level of network access. Under the proposed system, a single national licence will provide access to routes across the country, offering greater operational flexibility to private container train operators.

The reform has been approved through amendments to the Model Concession Agreement, which governs the terms under which CTOs are authorised to operate. However, the changes will take legal effect only after the required Gazette notification is issued.

The proposed registration fee for the all-India licence is INR 250 million (approximately EUR 2.5 million), and it will be non-refundable. Existing Category I operators can continue operating under their current licences until their concessions expire and subsequently transition to the national licence without paying an additional fee. Operators in Categories II, III and IV can retain their existing permissions but will be required to pay INR 150 million if they renew, extend or transition early to the new national licensing system.

Another significant change is the removal of the extension fee. CTOs will be eligible to extend their operating permissions for an additional 20 years, subject to satisfactory performance, without making a separate extension payment.

The reform is expected to improve network flexibility, enabling operators to plan container train services across ports, inland terminals and industrial centres without being constrained by licence categories. This could help operators manage the movement of import, export and domestic cargo more efficiently, improve wagon utilisation and make better use of available rail capacity.

For shippers, the revised framework could expand access to rail-based container services, particularly on routes beyond established port corridors. However, the overall impact will depend on how effectively operators use the broader network access to introduce new routes, expand terminal connectivity and increase train frequency.