Nestlé Lanka has partnered with Cargoserv Shipping Ltd and Prima Group Sri Lanka to launch the country’s first rail freight logistics initiative, marking a groundbreaking step in sustainable logistics. This first-of-its-kind collaboration introduces a multi-modal transport solution leveraging Sri Lanka’s railway network. The initiative is aimed at improving cost efficiency and reducing environmental impact in Nestlé Lanka’s supply chain, by shifting the distribution of products from road to rail.
The new green supply chain project is already underway, with Nestlé Lanka becoming the first client to use the rail network for its deliveries. The company has begun dispatching container shipments by train to key regions, including distribution hubs in the North and East of Sri Lanka . Developed in collaboration with Prima (a leading food producer) and Cargoserv (a logistics arm of the Ceyline Group), the rail service can carry up to 24 freight containers per trip, offering reliable schedules that are unaffected by road traffic delays. This not only accelerates deliveries but also eases highway congestion by replacing long-haul truck routes.
Nestlé Lanka cites significant sustainability benefits from the move. By embracing rail freight for outbound logistics, the company projects a 15% reduction in carbon emissions from its logistics operations . Rail transport inherently produces far fewer emissions per tonne-kilometre than road trucking, and also yields cost savings for bulk transport . Partners note that the switch to rail will help cut fuel consumption and road wear; Prima Group, which piloted the system, has already eliminated millions of kilometres of truck travel annually by using rail for freight . “This partnership aligns with our sustainability goals by reducing emissions while optimising our distribution network,” said Kanchana Fernando, Director of Supply Chain at Nestlé Lanka . He added that exploring alternative transport methods benefits both the business and the environment – a sentiment echoed by all partners in this corporate collaboration.
This landmark rail logistics initiative exemplifies how inter-company collaboration can drive innovation in sustainable logistics. By integrating rail into its distribution strategy, Nestlé Lanka and its partners are setting a new industry benchmark for efficiency and environmental responsibility in Sri Lanka’s supply chain sector . The project underscores the growing corporate commitment to building a green supply chain that achieves business goals while advancing national sustainability targets.
