SGCCI Pushes for Niyol Freight Hub to Ease Surat’s Logistics Burden

SURAT: The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has urged Western Railway to fast-track the development of Niyol Railway Station into a full-fledged Goods Handling Hub and Freight Terminal, arguing that the project could dramatically reduce logistics costs and ease cargo congestion for Surat’s vast industrial ecosystem.

In a detailed representation to the Divisional Railway Manager (Mumbai Central), SGCCI President Ashok Jirawala said thousands of tonnes of cargo move in and out of Surat every day, but inadequate freight infrastructure at Niyol and heavy congestion at Udhna Junction continue to burden trade and industry.

“Niyol has the potential to become a strategic freight gateway for South Gujarat. A dedicated terminal here can reduce transportation costs, improve wagon turnaround time and strengthen the region’s competitiveness,” Jirawala said.

The Chamber highlighted Niyol’s strategic location on the Udhna-Jalgaon rail line, its proximity to the Mumbai-Vadodara-Ahmedabad-Delhi trunk route, and its connectivity with the Dedicated Freight Corridor (DFCCL), making it well-suited for handling large-scale cargo without routing traffic through congested urban yards.

According to SGCCI, the proposed hub would directly benefit Surat’s textile, synthetic fabric, chemical, polymer, engineering, steel, sugar and agricultural sectors, which rely heavily on efficient rail transport for nationwide distribution.

Jirawala said traders currently bear additional expenses because of inadequate loading, unloading and stacking facilities.

“Businesses are forced to rent private warehouses at ₹25 to ₹30 per square foot, while repeated handling increases labour costs and the risk of damage. In many cases, expensive road transport becomes the only option,” he said.

The Chamber has sought dedicated goods loop lines, long-haul rack handling facilities, covered sheds, paved loading platforms, high-mast lighting and mechanised material-handling infrastructure at Niyol.

It also plans to pursue a logistics park in the area.

Notably, Western Railway had accepted the freight terminal proposal in principle during 2023-24. SGCCI has now urged railway authorities to expedite implementation, conduct a joint feasibility study with industry bodies and begin work at the earliest.