CHENNAI, September 14, 2026 — Could it be that the fiercest battle for India’s container industry will be fought not on the sea but rather on the railway tracks?
This is what the Chennai Port Authority (ChPA) seems to think, as it has come up with a unique scheme called the Chennai Port Container Rail Promotion Scheme (CPCRPS), which offers various kinds of incentives to Container Train Operators (CTOs) and shipping lines which are prepared to open new container services to and from Chennai Port by rail, especially on new unexploited hinterland routes. The announcement came in mid-September 2026 as Chennai was gearing up for new challenges in its pursuit of hinterland connectivity.
The main incentive is certainly eye-catching: the eligible traffic on new corridors can avail of as much as an 80% concession on Port Railway Charges. Furthermore, the shipping line using railways for container traffic is entitled to a further concession of up to 10% on Vessel Related Charges (VRC).
Chennai has plans to utilise rail connectivity as a competitive advantage. The port currently runs a rail network estimated to be around 31 kilometres in length with nine rake sidings that allow it to handle large volumes of EXIM cargo transported by train.
Chennai Port perfectly timed the resumption of container train services to Chennai from ICD Sanathnagar in Hyderabad in August 2026, in collaboration with OOCL. The inaugural train carried 46 TEUs in a rake of 40 waggons. According to India’s Ministry of Ports, Shipping, and Inland Waterways, the rail operation linking Chennai with Hyderabad could save as much as 7 days in transit time depending on the type of cargo and routing utilised.
ChPA is now expanding its interest out of Hyderabad to hinterland markets such as Pollachi and Mysore with an aim to switch shipments from roads to railways. The bigger catch is not just cheaper rail fares. By drawing valuable cargo from far-off manufacturing zones, Chennai can expand its container market area, lessen its dependence on road transport over long distances, and assert itself more as an East Coast port.
For exporters and importers, the message is becoming increasingly clear: the race to the port seems to be shifting from highways to railways.
