Indian Railways has announced a major reduction in freight charges for transporting bulk cement in tank containers, a move expected to lower overall cement prices – especially for housing and infrastructure projects. Railway Minister Ashwini Vaishnaw unveiled the revised policy in New Delhi on November 18, calling it a “game changer” aimed at reducing construction costs for middle-income and low-income families. The new structure replaces the earlier slab-based system with a simpler, flat-rate model.
Flat rate to replace slabs
Under the new policy, freight will be charged at Rs 0.90 per tonne per kilometre, calculated strictly on actual distance travelled. Earlier weight and distance slabs have been scrapped to simplify billing and improve predictability for cement producers and logistics companies.
Officials said the change will make operations easier for industry players and help reduce logistics costs across the cement supply chain – a key input for affordable housing.
Push for multimodal logistics
The Railways is promoting tank containers as a cleaner, faster and more efficient mode for bulk cement movement. The containers, built in India, follow standard 20 ft × 8 ft × 8.5 ft dimensions and can carry a 26-tonne payload.
The design enables seamless multimodal movement – shifting between trains and trailers without delays helping cement reach consumption centres more quickly and with reduced wastage.
New terminals to support the shift
To strengthen the bulk logistics network, the Railways will support the development of dedicated bulk cement terminals across the country. The policy aims to reduce packaging requirements, cut losses from spillage and improve overall logistics efficiency.
Lower emissions, faster movement
The Railways said the shift to bulk cement movement via electrified freight corridors will significantly reduce carbon emissions compared to road transport. The network expansion now averages 12–14 km a day, up from 4 km a day between 2004 and 2014.
India has also become the world’s second-largest railway freight carrier, surpassing the United States. Over 1,300 Amrit Stations are currently under development.
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