Railways Unveils New Flat Rate for Bulk Cement Transport
RAILWAYS & METRO RAIL

Railways Unveils New Flat Rate for Bulk Cement Transport

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.

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.

Next Story
Infrastructure Urban

Manoj Ceramic Reports Strong H1 Growth With Higher Margins

Manoj Ceramic Limited, a leading name in the ceramic and tiles sector, has announced its financial results for the half year ended H1 FY26, reporting strong performance driven by export growth, an expanded retail footprint, new product launches and enhanced digital customer engagement. The company’s performance was supported by steady traction across retail showrooms, institutional orders, an improved product mix, better supply chain turnaround and early contributions from global expansion initiatives. Financial Performance Total Revenue for H1 FY26 rose to Rs 816.2 million, up from Rs 66..

Next Story
Infrastructure Energy

TPREL Commissions NHPC’s 300 MW Solar Project in Rajasthan

Tata Power Renewable Energy Limited (TPREL), a key player in India’s renewable energy sector and a subsidiary of Tata Power, has successfully commissioned NHPC Limited’s flagship 450 MWp (DC) / 300 MW (AC) DCR-compliant solar power project in Karnisar Bhatiyan, Bikaner, Rajasthan, as the EPC contractor. Executed over two and a half years, the project underscores TPREL’s strong project management expertise and technical capability. Beyond the 300 MW NHPC project, TPREL is also contributing to Rajasthan’s evolving clean-energy landscape by supplying DCR-compliant cells and modules for S..

Next Story
Infrastructure Transport

Ameenji Rubber Strengthens Market Position With New Rail Orders

Ameenji Rubber Limited continues to reinforce its leadership in the rubber manufacturing sector through strong technical capability, product diversification and early adoption of new railway standards. The company’s growth is supported by robust infrastructure demand, regulatory approvals enabling access to high-value government projects, modernised production capacity and expanding exports. Product Leadership and Technical Strength Ameenji offers a wide and specialised product portfolio across infrastructure, railways and industrial applications. Its range includes elastomeric bridge bear..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement