The Union Minister for Railways, Information & Broadcasting and Electronics & Information Technology, Shri Ashwini Vaishnaw, has unveiled a major rationalisation of bulk cement freight rates, along with a new policy for bulk cement terminals. Announced at Rail Bhawan in New Delhi, the measures form a key part of Indian Railways’ reforms aimed at transforming cement transportation across the country.

Calling the reforms a “game changer”, the Minister said the initiative will help lower the cost of cement for middle- and lower-income families building their homes. Under the revised structure, distance and weight slabs have been removed. Freight will now be charged at a simplified and rationalised flat rate of Rs 0.90 per tonne per kilometre, calculated on the train’s Gross Tonne Kilometre (GTKM).

Shri Vaishnaw highlighted that tank containers will offer an end-to-end, pollution-free logistics solution for bulk cement, enabling cleaner and more efficient movement of materials. He noted that India has now become the world’s second-largest freight carrier, surpassing the United States. Rail network expansion has accelerated from 4 km per day (2004–14) to 12–14 km per day, and the broad-gauge network is now almost fully electrified. More than 1,300 Amrit Stations are also under development.

Simplified Freight Structure

The new rate system eliminates earlier distance and weight slabs to improve ease of doing business. Charges are now based solely on actual tonnage and distance covered, using the GTKM formula. This streamlined approach is expected to bring significant efficiency and clarity to cement logistics.

Tank Containers: A ‘Make in India’ Solution

The policy promotes the use of standardised 20 ft × 8 ft × 8.5 ft tank containers, each offering a 26-tonne payload and 31-tonne gross weight. With loading and unloading times of just 25–30 minutes, they are designed for seamless multimodal movement between rail and road, ensuring smooth, efficient delivery from production sites to consumption centres.

Transporting bulk cement using specialised wagons to terminals near key markets is both cost-effective and environmentally friendly. To support this shift, Indian Railways will develop bulk cement terminals across the country under the new policy.

Bulk Cement Terminals

The terminals will be constructed, operated and maintained with direct railway connectivity, and equipped with hoppers, silos, bagging plants and supporting infrastructure. This will enhance storage, handling and distribution efficiencies, reducing bottlenecks in the supply chain.

Key Benefits

The reforms will deliver multiple advantages:

Lower transport costs, reducing the final price of cement

Significant carbon footprint reduction, supporting environmental sustainability

Reduced road congestion due to modal shift to rail

Lower packaging needs and reduced spillage losses

Faster turnaround times through mechanised loading and unloading

Higher efficiency in bulk movement, enabling larger volumes per trip

With these reforms, Indian Railways aims to modernise cement logistics, improve cost competitiveness and strengthen India’s multimodal transport ecosystem. The policy underscores the Government of India’s commitment to efficiency, sustainability and industry-friendly governance in the infrastructure sector.