Indian Railways’ efforts to promote rail-based transportation of bulk cement through tank containers are yielding encouraging results, with strong interest from the cement industry. Several cement manufacturers have approached Container Corporation of India (CONCOR) for the movement of bulk cement using tank containers, reflecting growing confidence in the reformed freight structure.
CONCOR is also facilitating the development of bulk cement silos at its terminals to support efficient handling and storage, further strengthening the rail-based logistics ecosystem.
Revised Freight Charges Make Rail More Competitive
As part of its reform measures, Indian Railways recently reduced the Gross Tonne Kilometre (GTKM) charge from 90 paise to 85 paise per tonne per kilometre. This, combined with discounts on empty return movement to the originating terminal on a GTKM basis, has significantly improved the competitiveness of rail transport for bulk cement compared to road movement.
According to officials, the trade response to this innovative charging structure has been very positive, with the revised rates making rail a cost-effective and operationally efficient alternative.
Lower Costs, Faster Turnaround and Environmental Benefits
The new pricing mechanism is expected to lower overall freight costs for bulk cement movement. It also offers multiple operational and environmental advantages, including:
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Reduced fuel consumption
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Lower carbon emissions
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Faster turnaround times
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Reduced handling losses compared to bagged cement
The reforms are also encouraging the wider adoption of tank containers in bulk cement logistics, improving plant-to-market efficiency for cement manufacturers.
Shift from Earlier Charging Structure
Earlier, Indian Railways charged haulage for bulk cement movement in tank containers on a per TEU basis, linked to distance slabs. A graded discount was offered on the empty return movement—50 per cent in the first year, tapering annually to no discount from the sixth year onwards.
However, this charging structure was found to be unattractive for cement producers and acted as a deterrent to shifting bulk cement movement from road to rail.
Recognising this challenge, Indian Railways introduced reforms to its freight rate structure to create a win-win model for both the Railways and its customers. The latest response from the cement industry indicates that these measures are helping drive a meaningful shift towards rail-based bulk cement transportation.
