**Executive Summary**
Indian Railways' efforts to promote rail-based movement of bulk cement in tank containers have received positive feedback, with many cement companies approaching CONCOR. Reforms have been implemented to make rail transport more competitive, including reducing GTKM charges. This aims to reduce freight costs, fuel consumption, emissions, and handling losses, while enhancing plant-to-market efficiency. This document was posted on February 6, 2026.
**Key Points / Main Content**
* **Bulk Cement Movement:**
* Indian Railways is promoting rail-based movement of bulk cement in tank containers.
* Many cement companies have approached CONCOR for this purpose.
* **CONCOR's Role:**
* CONCOR facilitates the setup of silos at its terminals for bulk cement handling and storage.
* **Charging Scheme Reforms:**
* Indian Railways has reduced charging on GTKM basis from 90 paisa to 85 paisa per tonne per kilometer.
* Discounts are available for empty return movement to the originating terminal on GTKM basis.
* This makes rail movement of bulk cement in tank containers more competitive compared to road.
* The previous haulage charging was based on per TEU basis with a graded discount on haulage in the empty return direction for the first five years.
* **Benefits of the Reforms:**
* Reduction in overall freight cost for bulk cement movement.
* Lower fuel cost and reduced emissions.
* Faster turnaround and reduced handling losses compared to bagged cement.
* Facilitates adoption of tank containers in bulk cement logistics, improving plant-to-market efficiency.
**Impact Analysis**
**Stakeholder: Cement Producers**
* **Impact**: The reformed charging scheme makes rail transport of bulk cement more attractive and cost-effective compared to road transport. The previous scheme was unattractive and a deterrent to shift bulk cement movement to rail.
* **Action Required**: Consider shifting bulk cement movement from road to rail to benefit from the reduced freight costs and other advantages offered by the new scheme.
**Stakeholder: Indian Railways**
* **Impact**: Increased demand for rail-based bulk cement transport can boost revenue and promote sustainable transportation practices.
* **Action Required**: Continue facilitating and improving the infrastructure for bulk cement handling and transportation.
**Stakeholder: CONCOR**
* **Impact**: Increased engagement with cement companies and a need to facilitate silo setup at terminals.
* **Action Required**: Support the increased volume of bulk cement transport and continue setting up silos.
Key Entities Referenced
Indian Railways: The primary agency implementing reforms in bulk cement transportation.
CONCOR: Container Corporation of India; working with cement companies for movement of bulk cement in tank containers and facilitates setting up silos at its terminals.
Ministry of Railways: The governing ministry overseeing reforms in bulk cement transportation.
GTKM: Gross Tonne Kilometers; basis for railway charging for bulk cement movement reduced from 90 paisa to 85 paisa per tonne per kilometer.
Ministry of Railways
Indian Railways’ Reforms in Bulk Cement
Transportation Receives Good Response
Posted On: 06 FEB 2026 8:21PM by PIB Delhi
Efforts by Indian Railways to increase loading and promote rail-based movement of bulk cement in tank
containers is bringing positive results. Many cement companies have approached CONCOR for the
movement of bulk cement in tank containers.
CONCOR is also facilitating the setting up of silos in its terminals for bulk cement handling and storage.
Deepening the reforms and to make its schemes attractive, Indian Railways had recently brought down
charging on GTKM basis from 90 paisa to 85 paisa per tonne per kilometer. This along with discounts for
empty return movement to the originating terminal on GTKM basis is making rail movement of bulk
cement in tank containers significantly more competitive compared to road.The response of the trade to this innovative charging scheme has been very good. This scheme will benefit
in reduction in overall freight cost for bulk cement movement. This will result in lower fuel cost and
reduced emissions. The reforms support faster turnaround and reduced handling losses compared to
bagged cement. It also facilitates adoption of tank containers in bulk cement logistics, improving plant-to-
market efficiency.Earlier, Indian Railways was charging haulage on per TEU basis as per the distance slab for movement of
bulk cement in tank containers with a graded discount on haulage in the empty return direction, i.e., 50%
in the first year, 40% in the second year, 30% in the third year, 20% in the fourth year, 10% in the fifth
year, and no discount from the sixth year onwards.
However, this basis of charging was found to be unattractive for cement producers and was acting as a
deterrent to shifting bulk cement movement to rail from road. In order to increase loading and promote
rail-based movement of bulk cement in tank containers, Railways brought reform in rates to make win-
win situations for Railways and customers.
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Dharmendra Tewari/ Dr. Nayan Solanki
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