Rail freight charges for bulk cement reduced; customised containers and bulk cement terminals part of new policy

The Union Minister for Railways, Information & Broadcasting and Electronics & Information Technology, Mr Ashwini Vaishnaw, has unveiled the rationalisation of rates for bulk cement in containers and policy for bulk cement terminals. The policy is part of Railways Reforms for Cement Transportation.

Unveiling the policy in Rail Bhawan in New Delhi, the Union Minister described this moment as a game changer. He said these reforms will bring down the cost of cement for the middle and poor families as they build their dream home. As per the new policy, distance and weight slabs have been removed. The new rate has been rationalised to `0.90 per tonne per kilometre at flat Gross Tonne KM, the Union Minister said.

He pointed out that tank containers will be an end-to-end pollution-free logistics solution for bulk cement transportation. He also highlighted that India is now the world’s second-largest freight carrier, having surpassed the USA. 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% electrified. More than 1,300 Amrit Stations are currently being developed across the country, Mr Vaishnaw added.

Rationalisation of freight for bulk cement in tank containers

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 `0.90 per tonne per kilometre for the actual distance covered.
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.

 

Policy for bulk cement terminals

 

The transportation of bulk cement from manufacturing plants to terminals near consumption centres using specialised wagons is both cost-effective and environmentally friendly. To further support this shift toward efficient logistics, the 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, highlighted an official release.

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