Indian Railways Launches New Policy to Speed Up Bulk Cement Transportation
Indian Railways recently announced a new policy aimed at substantially increasing the volume of bulk cement transportation. The core initiatives of the policy include the creation of dedicated handling infrastructure and the simplification of the freight structure with a view to increasing the share of rail in cement transport. A key feature of the new policy on
uniform freight rates and dedicated containers
is the introduction of uniform freight rates. For cement transported in dedicated tank containers designed by the Container Corporation of India, the freight rate is uniformly Rs 0.90 per tonne km. This single rate replaces the original multi-level freight structure and solves the problem of uneconomical short-distance railway transportation reflected by the industry for a long time. Railway Minister Ashwini Vishnau called the reform "subversive" and said cement was the first commodity to benefit from targeted logistics policies under the rail intermodal expansion plan.
Building a national terminal network
To support a faster and more cost-effective logistics system, Indian Railways will develop a terminal network for bulk cement handling across the country through a public-private partnership. The commodity shed, loop line and other facilities handling less than 12 wagons in the past year can be redeveloped into "Gaiti Shakti Freight Terminal" if the bidder proposes an upgrading plan focusing on cement. These terminals will be located in consultation with cement producers and equipped with key facilities such as hoppers, silos and packaging plants to ensure seamless connection with the railway network for efficient processing, storage and distribution.
Policy effectiveness and industry response
experts generally welcome this shift. Aparna Dutt Sharma, Secretary-General of the Cement Manufacturers Association, pointed out that the new rate structure finally made short-distance rail transport feasible and helped to obtain cement more efficiently for large infrastructure projects. Special trucks are used to transport bulk cement from the plant to the terminal hub, which is economical and environmentally friendly. The benefits of the policy include a significant reduction in transport costs, a significant reduction in carbon footprint compared to road transport, the ability to transport large quantities and reduce packaging requirements and spill losses, and improved turnaround efficiency through mechanized handling.
This reform is in line with the growth prospects of India's cement industry. India produced 450 million tonnes of cement in fiscal year 2024-25 and is expected to reach 600 million tonnes by 2030. At present, bulk cement accounts for about 17% of total consumption, which is expected to rise to 30% by the end of 2030. At the same time, the railway minister stressed that these reforms will help reduce the cost of cement and benefit the middle class and poor families when they build their homes. The new policy aims to support national infrastructure and affordable housing goals by improving logistics efficiency.
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