Indian Railways reduces freight rates to ₹0.90 per tonne per km

The Ministry of Railways has reduced the freight rate for bulk cement transported in containers to ₹0.90 per tonne per kilometre. The policy encourages the use of tank containers for efficient multimodal, end-to-end logistics.

The new structure rationalises charges based on the actual tonnage, calculated as the gross tonne kilometre (GTKM) of the train, eliminating the previous complexity of distance and weight slabs.

Union Minister for Railways Ashwini Vaishnaw said, “These reforms will bring down the cost of cement for the middle and poor families as they build their dream home. As per the new policy, distance and weight slabs have been removed”.

The Union Minister highlighted the environmental benefits, noting that tank containers offer an end-to-end pollution free logistics solution for bulk cement.

These containers are designed with standard dimensions designed with standard dimensions of 20 ft × 8 ft × 8.5 ft, offering a 26-tonne payload capacity and a gross weight of 31 tonnes.

Crucially, they facilitate efficient operations with a loading and unloading time of just 25–30 minutes, and are ideal for seamless multimodal transportation between rail and road.

Infrastructure development and national growth
To support the shift, Indian Railways will facilitate the development of Bulk Cement Terminals across the country. These terminals will be constructed, operated, and maintained with direct railway connectivity, and will be equipped with essential facilities like hoppers, silos, and bagging plants to ensure seamless handling, storage, and distribution of bulk cement.

Vaishnaw also provided an update on the expansion of the national rail network and its growing global significance. He said, “India is now the world’s second-largest freight carrier, having surpassed the USA.”