Indian Railways has reported a positive response to reforms aimed at shifting bulk cement movement from road to rail. The measures focus on promoting movement of bulk cement in tank containers and on encouraging set up of silos at container terminals by CONCOR to improve handling and storage. Many cement companies have approached CONCOR to use tank containers for plant to market logistics, reflecting growing interest in rail based solutions.

Railways reduced charging on GTKM basis from 90 paisa to 85 paisa per tonne per kilometre to make schemes more attractive and to boost loading. This change, together with discounts on empty return movement to the originating terminal on GTKM basis, has made movement of bulk cement in tank containers significantly more competitive compared to road. Officials said the innovative charging structure aims to create win win outcomes for Railways and customers.

The reforms are expected to reduce overall freight cost for bulk cement movement, lower fuel consumption and curtail emissions from road transport. Faster turnaround and reduced handling losses compared to bagged cement are likely to improve efficiency and supply chain reliability. Adoption of tank containers and terminal silos is anticipated to support plant to market efficiency and reduce product handling at source and destination.

Earlier, haulage for bulk cement in tank containers was charged on a per TEU basis under a distance slab system with a graded discount on the empty return leg. The discount schedule offered 50 per cent in the first year, 40 per cent in the second year, 30 per cent in the third year, 20 per cent in the fourth year and 10 per cent in the fifth year with no discount from the sixth year onwards. That method was found to be unattractive for cement producers and acted as a deterrent to modal shift from road to rail. The rate reforms and facility enhancements are intended to increase loading and promote rail based bulk cement logistics while balancing commercial interests of Railways and customers.