India’s national rail operator, Indian Railways, has introduced a new policy to boost bulk cement movement, marking a strategic shift in logistics for the construction-materials sector. The reforms include a flat freight rate of INR0.90 per tonne-kilometre when using specially designed tank containers, and the establishment of bulk-cement handling terminals developed under the government’s Gati Shakti initiative.
The transport industry, including the country's Cement Manufacturers' Association, welcomed the move, saying the previous multi-slab rate structure made rail unviable for many short-haul cement transports. As the association’s secretary-general, Aparna Dutt Sharma, commented: “Most bulk cement movement involves shorter leads, with transport distances of less than 300km… This timely policy will ensure that the country’s large infrastructure projects benefit from faster and more efficient movement of cement.”
In FY24-25, India’s cement production reached approximately 450Mt, with bulk consumption at about 17 per cent, and the railways carrying only 7Mt of bulk cement. Under the new policy, the railways aim to lift cement’s modal share towards 30 per cent by 2030, while supporting the planned rise in output to 600Mt.
Industry sources note that concentrating terminals near consumption hubs and simplifying haulage pricing could bring faster, lower-cost logistics and reduced emissions, aligning with India’s infrastructure-growth and decarbonisation goals.
