Ashwini Vaishnaw unveils reduction of cement freight cost, to benefit middle- and low-income families in building homes

/ 2 min read
Summary

The policy of rationalising rates for bulk cement containers and bulk cement terminals is housed under the Railway Reforms for Cement Transport.

Ashwini Vaishnaw, Union Minister of Railways, Information and Broadcasting, and Electronics and Information Technology
Ashwini Vaishnaw, Union Minister of Railways, Information and Broadcasting, and Electronics and Information Technology | Credits: Sanjay Rawat

Ashwini Vaishnaw, the Union Minister of Railways, Information and Broadcasting, and Electronics and Information Technology, on Tuesday unveiled the rationalisation of rates for bulk cement containers and bulk cement terminals. The policy is housed under the Railway Reforms for Cement Transport.

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The minister, who unveiled the policy at the Rail Bhawan, described it as a game-changer. He said that these reforms will lower the cost of cement for middle- and low-income families as they build their dream homes. As per the new policy, distance and weight slabs have been removed. The new rate has been rationalised to ₹0.90 per tonne per kilometre at a flat gross tonne kilometre.

Vaishnaw said that the tank containers will be an end-to-end, pollution-free logistics solution for bulk cement transportation. The Union Minister said that India is now the world’s second-largest freight carrier, having surpassed the United States. The rail network expansion has increased from four kilometres per day (during 2004–14) to 12–14 kilometres per day, making it over three times faster. The broad-gauge rail network is now almost 100% electrified. More than 1,300 Amrit Stations are currently being developed across the country, the Union Minister added.

The new rate structure has been simplified and rationalised 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 policy promotes the use of tank containers to support efficient, end-to-end multimodal logistics for bulk cement. The Tank Container is an effective end-to-end logistics solution for bulk cement transportation and is a proud “Make in India” product. It is designed with standard dimensions of 20 ft × 8 ft × 8.5 ft, offering a payload capacity of 26 tonnes and a gross weight of 31 tonnes. Each container enables efficient operations, with loading and unloading times of just 25–30 minutes. Its design makes it ideal for seamless multimodal transportation—moving easily from train to trailer and back to train—enabling smooth delivery from the point of production to the point of consumption.

The transportation of bulk cement from manufacturing plants to terminals near consumption centres using specialised wagons is both cost-effective and environmentally friendly. To further support this shift toward efficient logistics, Indian Railways will facilitate the development of bulk cement terminals across the country under the “Bulk Cement Terminal” policy, enabling smoother handling, storage, and distribution of cement.

The bulk cement terminals will be constructed, operated, and maintained with direct connectivity to the railway network to ensure seamless logistics. These terminals will be equipped with essential facilities, including hoppers, silos, bagging plants, and related infrastructure, to support the efficient handling, storage, and distribution of bulk cement.

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