Rlys launches policy for bulk terminals to increase cement freight volumes

Indian Railways today announced it has reduced and streamlined freight rates for cement and launched a new bulk terminal policy for setting up dedicated facilities at railway land, aiming to triple cement freight volumes.

 

"The new rate structure has been simplified and rationalized by introducing charges based on the actual tonnage, calculated as the Gross Tonne Kilometre (GTKM) of the train. To enhance Ease of Doing Business, the previous distance and weight slabs have been removed. Under the revised system, freight is charged at a flat rate of ₹0.90 per tonne per kilometre for the actual distance covered," the railways said.

 

The new policy aims at reducing the transportation cost of cement, creating a smaller carbon footprint compared to trucks, and reducing road congestion as a bulk of the commodity is transported via roads. It will also enable movement of large quantities of cement in a single consignment, minimise packaging needs, and lower material losses due to spillage.

 

India produced 450 million tonne cement last financial year (FY25). That number is expected to grow to 600 Mt by 2030. The current share of railways in the country’s cement transportation stands at 17 per cent.

 

Railway Minister Ashwini Vaishnaw at the policy's launch said the government’s target is to bring the share of railways to 50 per cent over the next five years, but did not comment on the additional revenue it will generate. The minister added that the earlier slab rate system was also influencing the location of cement plants. The railways has now streamlined rates at 90 paisa per gross tonne kilometres.

 

With the current share of 17 per cent, the railways is expected to earn ~12,800 crore in the current financial year, according to union Budget documents. Broad-based estimates suggest that a tripling of this share and consequent volumes would result in an additional revenue opportunity upwards of ~20,000 crore.

 

Vaishnaw also said the Mumbai-Ahmedabad High Speed Rail (MAHSR), commonly known as the bullet train, will now be opened in 2027 on a 100 kilometre route between Surat and Vapi. Earlier, the plan was to open a 50 km section between Surat and Bilimora by 2026. Once completed, the train’s estimated time between Mumbai and Ahmedabad will be under two hours, the minister said. 

Key objectives 

• Reducing transportation cost
• Creating smaller carbon footprint
• Reducing road congestion
• Enabling movement of large quantities of cement in a single consignment
• Minimising packaging needs
• Lowering material losses due to spillage