Railway ministry is doing something that will benefit e-commerce companies as well. Find out

If you have been longing for a warehouse near a railway station, the railway ministry has heard your wishes.

The ministry is going to lease out abandoned buildings near railway stations to online marketplaces. A scheme for the same is being worked out and the ministry is in talks with e-commerce companies for the same.

This will prove to be a win-win situation for both the sides as the ministry will earn revenue and e-commerce companies will be able to cut their delivery time.

"We want to be end-to-end logistics providers. Presently, we see a huge gap in the market where ecommerce companies are unable to get spaces in the city because the cost is too high,” the official, who did not wish to be named, told ET. "We are offering them our abandoned building and other spaces to set up warehouses and pickup points, that too at a cost-effective price.”

Reportedly, EY and BCG have been roped in to work on the proposed scheme.

“Railways offers a cost-effective solution to ecommerce by allowing them to set up pickup points at stations. With this, railways would also become a part of the growing logistics supply chain of white goods, hence getting additional revenues,” Jaijit Bhattacharya, partner, KPMG told ET.

Presently, railways ministry has leased out space to India Post only.

The ministry will also be offering space near rail side in smaller cities so that etailers, along with other new-age courier companies, can set up their hubs.

"The companies could have more efficient supply chain once their warehouses and pickup points are in the middle of the cities. They could also set up hubs in small cities through our rail-side warehouses,” the official told ET.