Indian Railways has launched a new policy to promote movement of bulk cement to increase its modal share of the commodity by developing bulk cement handling terminals and rationalizing freight rates.
Under the new policy, railways will charge a flat rate of Rs ₹0.90 per tonne per kilometer when the commodity is transported in special tank containers developed by Container Corporation of India Ltd (Concor).
In addition, the national transporter will build bulk cement handling terminals across the country through public-private partnerships to facilitate rapid and cost-effective movement of the commodity from production centers to consumers.
Railways can repurpose poorly protected assets like goods depots (handling no more than 12 rakes in previous 12 months), loop lines and others for redevelopment if a potential bidder proposes to convert them into Gati Shakti Cargo Terminal (GCT) for cement. The location of such bulk terminals will be determined in consultation with cement manufacturers.
Gati Shakti Cargo Terminals are a government initiative to develop new and upgrade existing railway cargo terminals across the country to increase logistics efficiency and multimodal connectivity.
“This policy is a game changer that will help railways increase their share in multimodal transportation of key commodities. Cement is the first commodity to be included by transporters in this targeted logistics solution. Railways will identify other sectors for reforms and targeted policy measures,” Railway Minister Ashwini Vaishnaw said on Tuesday while announcing the new policy.
An industry-friendly move
The development of bulk cement handling terminals, along with a shift from the earlier complex freight rate structure to a system based on actual tonnage – eliminating distance and weight plates – is meeting industry expectations, according to experts.
“Most of the bulk transportation of cement involves shorter lines with transport distances of less than 300 km, where earlier rates had made the transport of cement by rail unviable for the industry. This timely policy will ensure that the country’s major infrastructure projects benefit from faster and more efficient movement of cement,” said Aparna Dutt Sharma, general secretary, Cement Manufacturers Association.
Cement consumption is growing rapidly and has already exceeded 50% in meters. Transporting bulk cement from the plant to terminals near consumption centers in dedicated wagons is both cost-effective and environment-friendly, the railways said in a statement.
According to the Ministry of Railways, cement production in the country reached 450 million tonnes (mt) in 2024-25 and is expected to rise to 600 million tonnes by 2030. Current volume consumption of cement is 17% of total cement production and is likely to increase to 30% by 2030.
The total loading of cement by railways was 87 mt in 2024-25, bagged cement (in covered wagons) 80 mt and bulk cement (in special wagons and containers) 7 mt. Bulk cement transported by rail accounts for about 10% of total cement movement.
