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In a landmark achievement for India’s freight sector, Indian Railways has recorded a staggering 170% increase in cement transportation over the past four months, directly attributed to sweeping logistics reforms introduced in November 2024. This surge marks a pivotal shift in bulk commodity supply chains, positioning rail as an increasingly competitive alternative to road transport for the construction materials industry.
The dramatic uptick follows the Ministry of Railways’ comprehensive overhaul of bulk cement transportation policy, which introduced three game-changing elements: specialized tank containers for end-to-end multimodal logistics, a simplified flat freight rate of ₹0.90 per tonne-kilometer based on Gross Tonne Kilometer (GTKM), and a new policy framework for developing dedicated bulk cement terminals nationwide.
Previously, cement logistics relied heavily on road transport due to rail’s fragmented handling, distance-based pricing slabs, and lack of seamless last-mile connectivity. The new GTKM-based flat rate eliminates distance disparities, making rail freight predictably cost-effective regardless of haul length. This pricing transparency is critical for supply chain planners managing margins in India’s competitive construction sector.
Central to the reform is the “Bulk Cement Terminal” policy, which mandates construction of terminals with direct rail connectivity, equipped with mechanized silos, hoppers, and bagging plants. These terminals enable rapid loading/unloading, reduce wagon turnaround time, and minimize material loss—key pain points in cement supply chains. By concentrating handling infrastructure near consumption centers, the Railways is creating hub-and-spoke distribution networks that mirror world-class logistics models.
The specialised tank containers are pollution-free, eliminate packaging costs, and support seamless multimodal movement from cement plants to terminals to construction sites. This end-to-end containerization reduces transshipment delays, a traditional bottleneck in rail freight.
The modal shift from road to rail carries profound implications for India's construction supply chains. Lower logistics costs will directly improve project margins in affordable housing and infrastructure as rail emits significantly less CO₂ per tonne-km than trucks, supporting ESG goals. Dedicated terminals and containerisation reduce transit variability, and infrastructure expansion supports India's target of 600Mt cement production by 2030. The Railways now aims to increase cement’s modal share to 30% by 2030, up from current levels, while also targeting the fly ash market with similar logistics reforms.
Hence, this transformation signals that rail is no longer a backup option but a primary corridor for bulk cement. The reforms demonstrate how policy intervention, infrastructure investment, and technology (tank containers) can synergize to unlock modal shift potential. As India’s Gati Shakti initiative continues integrating multimodal corridors, cement supply chains will increasingly adopt global best practices in efficiency and sustainability. This 170% surge is not just a statistical milestone, it’s proof that India’s freight logistics are maturing into a competitive, integrated supply chain ecosystem.
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Indian Railways has approved a single all-India licence for container train operators (CTOs) to improve the ease of doing business in rail freight sector. The move replaces the existing zone-specific licensing framework and is expected to simplify operations, reduce compliance requirements, and encourage greater private sector participation in rail-based container logistics. The decision was approved by the Cabinet Committee on Economic Affairs (CCEA) as part of amendments to the Liberalised Special Freight Train Operator (LSFTO) and Container Train Operator (CTO) policies. Under the revised framework, operators will now be able to obtain a single licence permitting container train operations across the entire Indian Railways network, instead of securing separate permissions for multiple railway zones. A one-time licence fee of ₹25 crore will be applicable for the all-India permit. Existing operators holding licences for individual railway zones will have the flexibility to migrate to the new regime by paying only the differential amount between the fee already paid and the new all-India licence fee. This provision ensures a smooth transition while protecting previous investments made by operators. According to the government, the reform is designed to remove procedural complexities, create a more predictable regulatory environment, and improve operational flexibility for container train companies. A unified licensing system is expected to reduce administrative burdens, eliminate duplication of approvals, and enable operators to expand services seamlessly across different regions. The initiative aligns with the government's broader objective of increasing the modal share of rail in freight transportation. By making rail freight operations more efficient and business-friendly, Indian Railways aims to strengthen multimodal logistics, reduce transportation costs, and improve cargo movement across the country. Industry stakeholders are expected to benefit from faster network expansion, improved asset utilisation, and simplified business planning. The policy is also likely to support logistics parks, inland container depots, ports, and industrial clusters by facilitating uninterrupted rail connectivity across state boundaries. The reforms are in line with the government's vision under the National Logistics Policy and PM Gati Shakti initiative, both of which focus on improving logistics efficiency, lowering supply chain costs, and enhancing India's competitiveness in global trade. By streamlining licensing procedures and encouraging greater private participation, Indian Railways expects the new framework to accelerate containerised cargo movement while contributing to a more integrated and efficient national logistics ecosystem. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
The Jawaharlal Nehru Custom House (JNCH) has suspended the Customs Cargo Service Provider (CCSP) approval of Container Corporation of India’s (CONCOR) Dronagiri Rail Terminal Container Freight Station (CFS) with immediate effect after identifying serious security deficiencies and incidents involving theft and pilferage of export cargo. The suspension will remain in force until further orders. According to a public notice issued by Customs under Regulation 11(2) of the Handling of Cargo in Customs Areas Regulations (HCCAR), 2009, the action followed an earlier advisory issued to the facility to strengthen security measures. Customs said subsequent inspections found that the prescribed safeguards had not been adequately implemented, leading to continued security concerns and cargo theft. As part of the suspension, the Dronagiri CFS will no longer accept fresh import or export cargo. However, cargo already present at the facility as of 22 July will continue to be cleared through the prescribed Customs procedures. Exceptions have also been provided for shipments where the Import General Manifest (IGM), Sea Arrival Manifest (SAM), shipping bill or bill of entry had been filed before the specified cut-off date, allowing those consignments to be processed. Spread over approximately 59 acres near Jawaharlal Nehru Port, the Dronagiri Rail Terminal is one of CONCOR's major rail-linked logistics facilities. The terminal handles around 14,000 TEUs each month, operates 90–100 freight rakes monthly, and provides warehousing for export-import, domestic and bonded cargo. The suspension is expected to temporarily disrupt cargo movement for exporters, importers and logistics service providers using the facility. Industry stakeholders said the suspension could add pressure on container freight stations and inland logistics infrastructure serving India's busiest container gateway, potentially leading to cargo diversions and longer turnaround times until normal operations resume. Customs has not indicated a timeline for lifting the suspension, stating that operations will remain restricted pending further review and compliance verification. Follow CARGOCONNECT for more such updates.
Gateway Terminals India (GTI) has marked a major milestone in India's logistics sector by successfully handling its first double-stack container train, unlocking direct access to the Dedicated Freight Corridor (DFC) and strengthening cargo connectivity between Nhava Sheva and the National Capital Region (NCR). The inaugural double-stack service to Dadri handled 270 TEUs, including 90 TEUs unloaded and 180 TEUs loaded, with the complete terminal operation completed in just seven hours. The achievement positions GTI among the growing number of terminals leveraging India's high-capacity freight corridor to accelerate inland cargo movement. The new DFC connectivity is expected to significantly improve the movement of import and export cargo by enabling direct rail access to key manufacturing and consumption hubs across northern India. Double-stack operations increase the number of containers transported per train, helping reduce transit times, optimize rail capacity, and lower overall logistics costs. According to GTI, the successful operation represents more than an infrastructure milestone. It strengthens multimodal connectivity between the port and inland markets while supporting faster, more efficient, and environmentally sustainable freight transportation. Industry experts believe the development will enhance supply chain reliability, improve cargo evacuation from the port, and encourage greater adoption of rail-based logistics as India's Dedicated Freight Corridor network continues to expand. With increasing demand for faster and more cost-effective cargo movement, double-stack rail services are expected to play a critical role in improving freight efficiency and reducing road congestion. Follow CARGOCONNECT for more such news
