New Policy on Cement Freight Charges Set to Boost Industry Efficiency

The Railway Minister introduced a policy to standardize freight charges for bulk cement, aiming to reduce costs for manufacturers and consumers. The initiative will establish cement terminals nationwide, promoting eco-friendly transportation with tank containers, potentially transforming the industry as endorsed by the Cement Manufacturers Association.

In a move set to transform the cement industry's logistics, Railway Minister Ashwini Vaishnaw has unveiled a policy aimed at rationalizing freight charges for bulk cement transport. The initiative promises cost reductions for both manufacturers and consumers, while facilitating the development of bulk cement terminals across India.

The policy introduces a unified rate of 90 paisa per ton per km, replacing the previous system of distance and weight slab-based charges. It also encourages the use of innovative tank containers, enabling environmentally cleaner and cost-effective transportation by eliminating the need for cement bags.

Industry leaders, including Aparna Dutt Sharma of the Cement Manufacturers Association, praise the policy as a potential game changer. Currently, only 8 to 9 percent of bulk cement is moved by railways, but with the majority of the market within 300 km from manufacturing units, the reforms could increase efficiency and reduce secondary costs significantly.

(With inputs from agencies.)