Indian Railways’ efforts to increase loading and encourage rail-based transportation of bulk cement through tank containers are yielding positive results, with several cement manufacturers approaching Container Corporation of India (CONCOR) for such movements, according to an official release.
CONCOR is also supporting the shift by facilitating the installation of silos at its terminals to enable efficient handling and storage of bulk cement. To further deepen reforms and enhance the attractiveness of rail logistics, Indian Railways has recently revised its freight structure, reducing the charge on a gross tonne kilometre (GTKM) basis from 90 paise to 85 paise per tonne per kilometre.
In addition, discounts for empty return movements to the originating terminal on a GTKM basis have made rail transportation of bulk cement in tank containers significantly more competitive compared to road transport. The response from the trade to this innovative charging mechanism has been encouraging, officials said.
The revised scheme is expected to lower overall freight costs for bulk cement movement, resulting in reduced fuel consumption and lower carbon emissions. Rail-based bulk cement logistics also offers faster turnaround times and lower handling losses compared to bagged cement, while improving plant-to-market efficiency through wider adoption of tank containers.
Earlier, Indian Railways levied haulage charges on a per-TEU basis according to distance slabs, with graded discounts on empty return movements—ranging from 50 per cent in the first year 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.
With the revised rate framework, Indian Railways aims to create a win-win situation for both the transporter and customers, while strengthening rail’s role in sustainable bulk logistics.
