Indian Railways Introduces Policy for Bulk Terminals to Boost Cement Transport

Indian Railways has introduced a new method for calculating cement freight, replacing the earlier distance-and-weight slab structure. As per PIB, the charges will now be applied at ₹0.90 per tonne per kilometre, based on the actual Gross Tonne Kilometre (GTKM) of the train. The earlier slabs have been removed to create a single, uniform calculation method that applies to all cement loads. 

New Policy for Bulk Terminals 

Along with the revised rates, railways has announced a bulk terminal policy that allows companies to develop dedicated cement-handling terminals on railway land. These terminals are meant for large-volume loading and unloading, reducing the need for extensive packaging and limiting losses that occur from spillage during movement.  

The facilities will also support shifting cement in bigger loads rather than in multiple smaller consignments. 

Cement Production Outlook 

India produced around 450 million tonnes of cement in FY25. Production is projected to rise to 600 million tonnes by 2030, driven mainly by construction and infrastructure activity. At present, the railways handle only 17% of cement transportation, while most volumes continue to move by road. The new framework is to support higher rail movement as volumes grow. 

Railways’ Share and Revenue Projections 

According to Railway Minister Ashwini Vaishnaw, the government’s target is to increase the rail share of cement transport to 50% within the next 5 years. Union Budget documents show expected railway earnings of roughly ₹12,800 crore from cement freight at the current 17% share. Broad estimates suggest that if this share reaches about three times the present level, the additional revenue potential could be above ₹20,000 crore, based on current freight pricing and projected volumes. 

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Conclusion 

The new freight structure and terminal policy set out a standardised approach for handling larger cement loads. The measures focus on increasing rail-based movement and preparing for higher cement output in the coming years. 

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