Railways unveil new policy to accelerate bulk cement transport

Indian Railways has introduced a revamped policy aimed at sharply increasing the movement of bulk cement, seeking to boost its modal share by creating dedicated handling infrastructure and simplifying freight charges.

A key feature of the policy is a flat freight rate of ₹0.90 per tonne per kilometre for cement transported in specialised tank containers designed by Container Corporation of India (Concor). The uniform rate replaces the earlier multi-slab haulage structure, which industry representatives said made short-distance rail movement uneconomical.

To support faster, cost-efficient logistics, Railways will develop a network of bulk cement handling terminals nationwide through public–private partnerships. Underutilised assets — including goods sheds that handled fewer than 12 rakes in the past year, loop lines and other facilities — may be redeveloped into Gati Shakti Cargo Terminals (GCTs) if bidders propose cement-focused upgrades. These locations will be finalised in consultation with cement manufacturers.

Railway Minister Ashwini Vaishnaw called the new framework a “game-changer,” noting that cement is the first commodity to benefit from a targeted logistics policy under the transporter’s multimodal expansion plan. More industries are likely to be covered under similar reforms in the future.

Experts have welcomed the shift, particularly given that most bulk cement demand lies within 300 km of consumption centres. “The new rate structure finally makes short-lead rail transport viable, enabling major infrastructure projects to access cement more efficiently,” said Aparna Dutt Sharma, secretary general of the Cement Manufacturers’ Association.

Railways highlighted that bulk cement usage — already above 50% in major metros — is both cost-effective and environmentally friendly when transported in specialised wagons from production plants to terminal hubs.

India produced 450 million tonnes of cement in 2024–25, a figure expected to reach 600 million tonnes by 2030. Bulk cement currently accounts for about 17% of total consumption but is projected to rise to 30% by the end of the decade.

Railway data shows it moved 87 million tonnes of cement in 2024–25, including 80 mt of bagged cement and 7 mt of bulk cement. Bulk volumes represent around 10% of all cement cargo transported by Railways — a share the new policy aims to significantly expand.