Indian Railways Unveils New Bulk Cement Policy to Boost Freight Share, Cut Logistics Costs

By Admin

19 Nov, 2025

Indian Railways has introduced a transformative Bulk Cement Policy to strengthen its freight business and reduce logistics costs for one of India’s fastest-growing sectors. With demand for cement rising sharply due to nationwide infrastructure expansion, the new policy aims to shift a larger share of cement transportation from road to rail offering industries a more predictable, efficient, and cost-effective logistics solution.

A key highlight of the policy is the introduction of a flat freight rate of ₹0.90 per tonne per kilometre for bulk cement moved through special tank containers designed by Container Corporation of India Ltd (Concor). This transparent, tonnage-based pricing replaces the older, complex slab-based system, giving manufacturers greater clarity and helping them plan their distribution more effectively.

The policy also focuses on building dedicated bulk cement handling terminals across India through public-private partnerships. Underutilised railway assets such as goods sheds handling fewer than 12 rakes per year, loop lines, and other low-traffic infrastructure may be upgraded into Gati Shakti Cargo Terminals (GCTs) if proposed by industry bidders. Importantly, the locations for these terminals will be finalised in consultation with cement manufacturers to ensure efficient supply-chain planning.

Calling the initiative a “game-changer,” Railway Minister Ashwini Vaishnaw noted that cement is the first commodity to receive a specialised logistics framework adding that more industries will soon be brought under similar reforms.

Industry leaders have warmly welcomed the move. According to Aparna Dutt Sharma, Secretary General of the Cement Manufacturers’ Association, most bulk cement movement happens over shorter distances of less than 300 km, where earlier rates made rail transport unviable. The new policy, she said, is timely and will support improved and faster cement distribution to key markets.

The shift comes at a crucial time. India’s cement production for 2024–25 reached 450 million tonnes and is projected to rise to 600 million tonnes by 2030. Currently, only 17% of this volume is transported as bulk cement, but this share is expected to climb to 30% over the next five years. Railways transported 87 million tonnes of cement last fiscal, but only 7 million tonnes were in bulk form highlighting a significant opportunity to scale up.

Industry stakeholders have also praised the predictability gained from the flat-rate system. Arun Kumar Shukla, President & Director of JK Lakshmi Cement Ltd, said the ₹0.90 per GTKM rate and uniform empty-direction charges remove major uncertainties, helping optimise rake utilisation and improving reliability across critical rail corridors.

As India enters a new phase of infrastructure growth, the policy is expected to cut logistics costs, reduce emissions, support multimodal connectivity, and position Indian Railways as a stronger competitor in bulk freight movement. By offering a streamlined and industry-aligned framework, the Railways is setting the groundwork for a more sustainable and efficient supply chain for the nation’s cement sector.