Railways reduces bulk cement freight charges

Unveiling the rationalisation of rates for bulk cement in containers and the policy for bulk cement terminals, Railway Minister Ashwini Vaishnaw on Tuesday said these reforms will bring down the cost of cement for the middle class and poor families as they build their dream homes.

The policy is part of the Railways Reforms for Cement Transportation.

The new rate structure has been simplified and rationalised by introducing charges based on the actual tonnage, calculated as the Gross Tonne Kilometre (GTKM) of the train.

To enhance Ease of Doing Business, the previous distance and weight slabs have been removed. Under the revised system, freight is charged at a flat rate of Rs 0.90 per tonne per kilometre for the actual distance covered.

Describing this moment as a game changer, Vaishnaw said as per the new policy, distance and weight slabs have been removed, adding that the new rate has been rationalised to Rs 0.90 per tonne per kilometre at flat Gross Tonne KM.

“Previously, freight rates were in slabs. One rate applied to a plant terminal at 200 km, and another rate for a plant terminal at 210 km. Now, the rate is completely flat: 90 paise/GTKM, whether the terminal is installed at 10 km, 50 km, 225 km, or 228 km,” he said.

The Railway Minister said tank containers will be an end-to-end, pollution-free logistics solution for bulk cement transportation.

India is now the world’s second-largest freight carrier, having surpassed the US, he said.

“The rail network expansion has increased from 4 km per day (during 2004–14) to 12–14 km per day, making it over three times faster. The broad-gauge rail network is now almost 100 per cent electrified. More than 1,300 Amrit Stations are currently being developed across the country,” the Union Minister added.

The policy promotes the use of tank containers to support efficient multimodal, end-to-end logistics for bulk cement. The Tank Container is an effective end-to-end logistics solution for bulk cement transportation and is a proud “Make in India” product. It is designed with standard dimensions of 20 ft × 8 ft × 8.5 ft, offering a payload capacity of 26 tonnes and a gross weight of 31 tonnes.

Each container allows efficient operations with a loading and unloading time of just 25–30 minutes. Its design makes it ideal for seamless multimodal transportation—moving easily from train to trailer and back to train—enabling smooth delivery from the point of production to the point of consumption.

The transportation of bulk cement from manufacturing plants to terminals near consumption centers using specialised wagons is both cost-effective and environmentally friendly. To further support this shift toward efficient logistics, Indian Railways will facilitate the development of bulk cement terminals across the country under the “Bulk Cement Terminal” policy, enabling smoother handling, storage, and distribution of cement.

The bulk cement terminals will be constructed, operated, and maintained with direct connectivity to the railway network to ensure seamless logistics. These terminals will be equipped with essential facilities such as hoppers, silos, bagging plants, and other related infrastructure to support efficient handling, storage, and distribution of bulk cement.

The policy offers several key benefits, including a substantial reduction in cement transportation costs and a significantly smaller carbon footprint compared to road transport, thereby supporting environmental sustainability and reducing road congestion.

It enables the movement of large volumes of cement in a single consignment and minimises packaging requirements while reducing material losses from spillage. Additionally, the policy ensures faster turnaround times through mechanised loading and unloading, enhancing overall efficiency in cement logistics.