Indian Railways Records 170% Rise in Cement Movement After Logistics Reforms
The growth has been driven by the adoption of innovative bulk cement tank containers designed to enable seamless end-to-end logistics and improve efficiency in cement transportation.
Union Railway Minister Ashwini Vaishnaw reviewed the implementation of container sector reforms and assessed their impact on freight movement. The reforms are aimed at improving logistics efficiency, reducing handling challenges and boosting rail-based cargo transportation for the cement industry.
The cement reforms were introduced to increase rail-based movement of bulk cement and encourage a shift from road transport to cleaner and more efficient rail logistics. Railways introduced customised tank containers and bulk cement terminal policy to support multimodal handling of cement.
The Union Minister said the new system has made loading and unloading easier and is also reducing material loss. Cement manufactured at one place can now move directly to consumption centres in specialised tank containers, reducing multiple handling processes and improving plant-to-market efficiency. Since the containers are of standard shape and compatible with Ready-Mix Concrete (RMC) machines, cement reaches construction sites in ready-to-use form. This has reduced two stages of handling, leading to lower logistics cost and faster turnaround.
The improved turnaround in cement logistics is bringing a silent revolution in the construction industry. By reducing handling stages and logistics costs, the overall delivered cost of cement is expected to come down, which can translate into more affordable construction inputs. This cost efficiency is particularly significant for housing demand, as it supports the goal of making housing more affordable for the poor and middle class by easing pressure on construction costs across the value chain.
The innovative “Make in India” tank containers are designed for seamless movement from train to trailer and back to train, enabling efficient door-to-door logistics solutions. Each container supports mechanised loading and unloading, while also reducing spillage and packaging losses compared to conventional bagged cement transportation.
The Union Minister said the reform is also environment friendly as dust generation during loading and unloading has been significantly reduced. The shift towards bulk movement through containers is lowering fuel consumption, reducing emissions and promoting cleaner logistics while also reducing congestion on roads.
After the success in cement transportation, Railways is now working on a similar reform for fly ash transportation. Reviewing the sector with senior officials, Shri Vaishnaw urged officials to tap the vast potential in the fly ash transportation market and convert the waste generated by thermal power plants into national wealth.
The Union Minister noted that nearly 300 million metric tonnes of fly ash is produced in the country, but only about 13 million tonnes is currently transported by Railways. He asked officials to significantly increase Railways’ share and facilitate movement of fly ash to brick kilns, cement industries and construction sites across the country. Calling it a major “waste to wealth” opportunity, he said fly ash, often treated as waste by power plants, is actually a valuable resource for road construction, cement manufacturing and brick production.
Wider transportation and utilisation of fly ash will help reduce pollution, promote recycling of industrial waste and lower the cost of construction materials such as bricks and cement. It can also be used in several construction activities, supporting sustainable infrastructure development.
The reforms in cement transportation, coupled with the rollout of innovative container wagons, mark a significant step towards more efficient, cost-effective and scalable freight logistics in Indian Railways. Building on this momentum, the focus on fly ash is expected to further strengthen the “waste to wealth” approach, while expanding sustainable freight movement across key infrastructure sectors.
Published on:
15 May 2026
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