Boosting Bulk Cement Transport: New Railways Policy

The Indian Railways has recently introduced a new policy aimed at enhancing the transport of bulk cement across the country. This initiative, launched by Railway Minister Ashwini Vaishnaw, sets a flat freight rate of Rs 0.90 per tonne per kilometer, simplifying the previous rate structure that varied based on distance bands. This change is expected to significantly reduce transportation costs by 30%, providing relief to consumers, particularly the middle class.

The new policy is a response to the rising demand for bulk cement in metropolitan areas, where its consumption has surpassed 50% in some cities. Vaishnaw emphasized that this approach will facilitate the efficient supply of cement from manufacturing plants to terminals closer to consumption centers, using specialized wagons that are also environmentally friendly.

In addition to the new freight rate, the Railways is set to establish bulk cement terminals nationwide under its Bulk Cement Terminal policy. This would further streamline the transportation process, making it more cost-effective. The minister pointed out that previously, the freight rates were inconsistent, creating unnecessary financial burdens on companies. The new uniform rate ensures fairness, regardless of the actual distance from the cement plant.

Currently, approximately 17% of all cement transported in India utilizes Railways. During FY25, the Railways transported a total of 87 million tonnes (MT) of cement, with only 7 MT being bulk cement. The goal is to increase the share of bulk cement transported by rail to 30% within the next five years, competing more effectively with road transport.

Aparna Sharma, Secretary General of the Cement Manufacturers’ Association, expressed optimism about the policy, stating that it would facilitate faster cement movement. The policy aligns with the needs of the cement industry, where a significant portion of consumption occurs within 300km distances, making bulk transport more viable than bagged cement.

Railway officials are also looking to develop facilities like hoppers and bagging plants to support this initiative. By offering land and concessions to cement companies, the Railways aims to create a robust infrastructure that will enhance the efficiency of bulk cement handling and transport in India.