As the global push for decarbonisation intensifies, Green Freight Corridors (GFCs) become increasingly significant for sustainable logistics in surface transportation, writes Ashish Bhatia.

These dedicated freight routes, equipped with charging stations, refueling points for green fuels, and multimodal connectivity, are designed to reduce the carbon footprint of commercial vehicle operations. In India, government-backed initiatives such as the Gati Shakti Master Plan, the National Logistics Policy (NLP), and pilot projects on green corridors like the Delhi- Mumbai Expressway are accelerating the transition to cleaner freight transport. Moderator V. G. Ramakrishnan, Managing Partner, Avanteum Advisors LLP, steered the discussion to look at crucial aspects of surface transportation as he addressed the past initiatives, the as-is developments and the future roadmap. The panel consisted of Sandeep Mathur, Group Head – OEM Business, Apollo Tyres Ltd.; Vinod Aggarwal, Vice Chairman (Non-Executive), EMl and MD & CEO, VE Commercial Vehicles Ltd; Madhavi Deshmukh, National Sales Head – MHCV, Ashok Leyland Ltd.; Anand S, Vice President and Business Head- Commercial vehicles, Passenger Business and Dr. Venkat Srinivas, Business Head – Trucks and Buses & Construction Equipment, Mahindra Group.

For stakeholders in the commercial vehicle industry, Green Freight Corridors (GFCs) offer new opportunities for growth and innovation. By incorporating trucks powered by electric, hydrogen, LNG, and biofuel trucks, along with AI-driven route optimisation and smart infrastructure, GFCs can lead to lower emissions, improved efficiency, and reduced logistics costs. However, scaling these corridors will require significant investments in infrastructure, consistent policy frameworks, and collaboration between public and private sectors, as the panel acknowledged.

The Growing Demand for Sustainable Logistics

The demand for sustainable logistics is being driven by rising regulatory pressures, corporate sustainability commitments, and consumer awareness. In India, e-commerce giants, FMCG companies, and manufacturing sectors are increasingly prioritising low-emission supply chains. Companies are seeking greener logistics solutions to meet their Environmental, Social, and Governance (ESG) goals and comply with evolving emission standards.

According to industry estimates, India’s road freight accounts for nearly 71 per cent of total freight movement, contributing significantly to carbon emissions. As companies adopt net-zero strategies, the transition towards low-emission freight transport is gaining momentum. This has led to growing investments in electric trucks, hydrogen-powered HCVs, LNG and biofuel-based commercial vehicles, marking the first steps towards decarbonising the freight industry. However, achieving large-scale sustainability requires more than individual vehicle adoption. Green Freight Corridors, equipped with clean energy infrastructure and digital route optimisation technologies, offer a scalable solution. These corridors ensure that low-emission vehicles have access to reliable refueling and charging stations, reducing range anxiety and promoting fleet electrification.

The Transformation

Technology is playing a pivotal role in shaping the future of GFCs. The adoption of electric trucks, hydrogen-powered vehicles, and LNG trucks is central to the GFC model. These clean energy vehicles offer reduced emissions and improved fuel efficiency, making them ideal for long-haul freight movement. The panelists pointed at no one approach but a need to stay invested in all platforms. Fleet electrification, supported by charging infrastructure along key freight routes, is a critical enabler for GFCs. To eliminate range anxiety for electric trucks, governments and private players are investing in battery-swapping stations and high-speed chargers on highways. India is witnessing pilot projects such as the Delhi-Mumbai Expressway’s EV charging network, designed to support long-haul electric freight.

For Heavy Commercial Vehicles (HCVs), hydrogen fuel cells and biofuels present viable alternatives. Hydrogen-powered trucks, known for their longer range and quick refueling times, are gaining popularity in global freight corridors. India’s National Green Hydrogen Mission is actively promoting the development of hydrogen infrastructure, including pilot projects aimed at testing the feasibility of hydrogen-powered HCVs for freight transport. However, it was acknowledged that the current role of hydrogen is still limited.

Infrastructure Challenges in Green Freight Corridors

While GFCs hold immense potential, their large-scale implementation is hindered by infrastructure and investment challenges. The deployment of EV chargers, LNG refueling points, and hydrogen hubs along freight routes requires substantial capital expenditure. One of the primary challenges is the high initial infrastructure cost. Setting up green refueling and charging stations along freight corridors involves significant investment. Hydrogen refueling hubs, in particular, demand complex infrastructure, including electrolysis plants, storage tanks, and dispensing units. The high cost of green infrastructure discourages private sector participation, slowing down corridor expansion.

Another major challenge is the lack of consistent policy frameworks. In India, inconsistent policies between central and state governments hinder GFC development. Variations in EV incentives, road taxes, and charging tariffs create disparities, making it difficult for fleet operators to scale clean logistics operations across states. A uniform policy framework is essential to promote corridor standardisation and encourage industry-wide adoption. The limited availability of green fuel vehicles further hampers the adoption of GFCs. Despite growing interest, the availability of EVs, hydrogen trucks, and biofuel-powered HCVs remains restricted. The commercial vehicle industry is still in the early stages of green fleet adoption. OEMs face supply chain challenges, production constraints, and limited demand, slowing the transition to low-emission fleets.

Public-Private Collaboration

The successful deployment of GFCs depends heavily on Public-Private Partnerships (PPPs). Collaboration between government agencies, OEMs, logistics companies, and fuel providers is essential for creating a sustainable and cost-effective GFC ecosystem. PPP-led infrastructure development can accelerate the rollout of EV charging stations, LNG refueling hubs, and hydrogen infrastructure. Under the National Logistics Policy (NLP), the government is promoting PPPs to build multi-modal logistics parks that integrate road, rail, and waterways for sustainable freight transport.

To encourage adoption, governments are offering tax breaks, subsidies, and carbon credits to fleet operators using low-emission vehicles. India’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme offers financial incentives for EV adoption, boosting the viability of GFCs. Future GFCs will also feature smart infrastructure development, including AI-driven logistics hubs, Vehicle-to-Grid (V2G) technology, and hyper-efficient freight planning systems. V2G technology enables EVs to supply electricity back to the grid during idle hours, creating a sustainable energy ecosystem.

Policy Frameworks Driving GFC Adoption

Government policies are playing a crucial role in accelerating the development of green freight corridors (GFC). The implementation of Bharat Stage VI (BS-VI) emission norms, the establishment of net-zero targets, and the introduction of carbon taxation policies are driving the industry towards cleaner freight practices. India’s advancements in this area have been recognized as significant compared to global transitions. Panelists have expressed confidence in the industry’s ability to evolve more quickly moving forward.

The Gati Shakti Master Plan promotes multi-modal connectivity and the establishment of green freight corridors, while the National Logistics Policy (NLP) aims to reduce logistics costs and encourage sustainable transportation. The strict BS-VI emission standards are promoting the electrification of fleets and the adoption of hydrogen trucks. Additionally, carbon taxation policies are incentivizing logistics companies to transition to low-emission vehicles.

The Road Ahead for Green Freight Corridors

While challenges such as high infrastructure costs, policy inconsistencies, and green fuel vehicle availability remain, public-private partnerships, government incentives, and multi-modal integration will be key enablers. By fostering industry collaboration and scaling GFC infrastructure, India can establish a sustainable freight ecosystem, paving the way for cleaner and more efficient logistics operations.