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Business and Trade news

Railway slashes freight charges for bulk cement

  • BY India News Newsdesk
  • November 18, 2025
  • 0 COMMENTS

New Delhi, Nov 18 (IANS) Railway Minister Ashwini Vaishnaw on Tuesday announced a reduction in the freight charges for the transportation of bulk cement in tank containers, as part of the new reforms to bring down the cost of the building material for affordable housing.

Unveiling the policy at Rail Bhawan here, the minister described it as “a game changer to bring down the cost of cement for the middle and poor families as they build their dream home.”

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.

The tank containers will be an end-to-end pollution-free logistics solution for bulk cement transportation, the minister explained.

The policy promotes the use of tank containers to support efficient multimodal, end-to-end logistics for bulk cement. The Tank Container is a “Made 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, according to an official statement.

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 towards 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.

Vaishnaw also highlighted that India is now the world’s second-largest railway freight carrier, having surpassed the USA. 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 minister added.

–IANS

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