Carbon-constrained logistics efficiency of India's dedicated railway freight corridors: quasi-experimental evidence from Super-SBM DEA, time-varying DID under PM Gati Shakti
Ruchir Shah, Suraj Shah, Priyanka PathakPurpose
The aim of the study is to assess the causal effect of Dedicated Freight Corridors (DFCs) on carbon-constrained logistics efficiency of node cities of PM Gati Shakti National Master Plan (NMNM) for Multi-modal Connectivity.
Design/methodology/approach
A balanced panel dataset containing data on 100 cities covering Tier-1 and Tier-2 of India in the period 2014–2025 is used to create a city efficiency score for green logistics using Super-SBM Data Envelopment Analysis (DEA) model, which contains transport CO2 emissions as an undesirable output as measured by the IPCC energy-balance approach.
Findings
DFC operationalization significantly enhances the performance of carbon-constrained logistics by boosting its efficiency by 5.2% on average (p < 0.01), with three drivers: modal shift (TMS: diesel road freight to electrified rail), freight consolidation and agglomeration (FCA: at MMLP nodes as highlighted in Section 2) and time-space compression (TSC: lowering inland transport costs). The efficiency benefit is particularly significant in Tier-2 cities (which typically have lower levels of development in their logistics sectors) compared to Tier-1 cities (6.8% vs 4.1%).
Research limitations/implications
This study advances understanding of sustainable freight infrastructure by integrating Super-SBM DEA and time-varying DID to evaluate the carbon-constrained efficiency effects of DFCs in India. While the analysis covers 100 cities over 2014–2025, future research may extend the assessment to enterprise-level logistics performance, longer post-operational periods and emerging DFC extensions under PM Gati Shakti. The study also opens opportunities for examining additional transmission mechanisms, including technological upgrading, multimodal integration and logistics network spillovers, thereby contributing to the broader literature on green transport infrastructure and sustainable regional development.
Practical implications
The findings indicate that DFC operationalization significantly improves carbon-constrained logistics efficiency, with stronger gains observed in inland and Tier-2 cities. The results support prioritizing multimodal logistics investments, first- and last-mile connectivity and logistics park development around freight corridor nodes. Policymakers may use the evidence to guide infrastructure allocation, logistics zoning and integrated transport planning under PM Gati Shakti. The study also highlights the importance of complementary investments in logistics technology, freight consolidation facilities and private-sector participation to maximize efficiency gains while reducing transport-related carbon emissions.
Social implications
By promoting a modal shift from road-based freight to more efficient rail-based logistics, DFC development contributes to lower transport emissions and supports national sustainability objectives. Improved logistics efficiency can enhance regional connectivity, reduce congestion on highways and strengthen economic opportunities in inland cities. The findings suggest that integrated freight infrastructure can support more balanced regional development by improving market access and reducing logistical disadvantages faced by peripheral locations. Consequently, the DFC program has the potential to generate broader environmental and socio-economic benefits while supporting India's transition toward a more sustainable and resilient freight transport system.
Originality/value
To the best of the authors’ knowledge, this study is the first to present quasi-experimental, city-level evidence and confirms that the staggered implementation of DFC nodes under an integrated multi-modal policy framework significantly enhances the effectiveness and efficiency of green logistics in and around major cities in a large developing economy, thereby providing empirical support for infrastructure prioritization and green logistics zone policy design.