Indian Railways Reforms Boost Bulk Cement Rail Movement

12 Feb 2026 CW Team

CONCOR is facilitating the installation of silos at terminals to enable bulk handling and storage and to support plant to market flows using tank containers. The rail authority has revised charging on a gross tonne kilometre (GTKM) basis from Rs 0.90 to Rs 0.85 per tonne per kilometre and introduced discounts for empty return movement to the originating terminal on the same basis. The combined effect has been described as making rail movement of bulk cement in tank containers significantly more competitive compared to road.

The ministry believes the scheme will reduce overall freight cost for bulk cement movement and lower fuel consumption, resulting in reduced emissions. The reforms are intended to support faster turnaround times and to reduce handling losses compared with bagged cement. The measures are expected to encourage wider adoption of tank containers and to improve efficiency between plants and markets.

Previously, haulage for tank containers had been charged on a per twenty foot equivalent unit (TEU) basis according to distance slabs with a graded discount for empty return haulage that reduced from 50 per cent in the first year to 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 thereafter. That basis of charging was found unattractive for cement producers and acted as a deterrent to modal shift from road to rail. The revised rates aim to increase loading and create a win-win situation for the railways and customers.

Indian Railways has reported a positive response to reforms intended to shift bulk cement movement from road to rail, with many cement companies approaching the Container Corporation of India (CONCOR) for tank container services. The Ministry of Railways has promoted measures designed to make rail a more competitive option for bulk cement logistics. Trade sources have indicated improved commercial interest since the measures were introduced. CONCOR is facilitating the installation of silos at terminals to enable bulk handling and storage and to support plant to market flows using tank containers. The rail authority has revised charging on a gross tonne kilometre (GTKM) basis from Rs 0.90 to Rs 0.85 per tonne per kilometre and introduced discounts for empty return movement to the originating terminal on the same basis. The combined effect has been described as making rail movement of bulk cement in tank containers significantly more competitive compared to road. The ministry believes the scheme will reduce overall freight cost for bulk cement movement and lower fuel consumption, resulting in reduced emissions. The reforms are intended to support faster turnaround times and to reduce handling losses compared with bagged cement. The measures are expected to encourage wider adoption of tank containers and to improve efficiency between plants and markets. Previously, haulage for tank containers had been charged on a per twenty foot equivalent unit (TEU) basis according to distance slabs with a graded discount for empty return haulage that reduced from 50 per cent in the first year to 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 thereafter. That basis of charging was found unattractive for cement producers and acted as a deterrent to modal shift from road to rail. The revised rates aim to increase loading and create a win-win situation for the railways and customers.

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