South Western Railway Launches Specialised Cement Tankers
South Western Railway (SWR) is making a major move in freight logistics. The railway division will introduce specialised tankers for transporting cement. These tankers resemble those used for carrying oil. Officials confirm this initiative will handle larger volumes of cement efficiently.
Significant Cost Reduction Expected
The new system promises substantial savings. Officials estimate a cost reduction of about 30%. Cement companies will install pipelines for unloading at terminals. This step further cuts labour expenses. Retail cement prices are likely to fall by Rs 20 to 30 per bag. This price drop should boost construction activity across the region.
Railway Reforms Transform Cement Logistics
Mukul Saran Mathur, a senior Indian Railway Traffic Service officer, explains the shift. He says recent reforms represent a fundamental change in construction material logistics. The railways introduce a rationalised freight policy. They also support specialised infrastructure development.
The system moves away from traditional methods. It replaces labour-intensive bagged transport with a mechanised solution. Historically, rail transport for cement faced two big challenges. High freight costs from complex slab-based tariffs created problems. Operational bottlenecks from slow manual handling of 50 kg bags added difficulties.
These factors pushed many manufacturers toward road transport. That choice increased logistics costs and carbon emissions. The new policy focuses on containerised bulk movement. It offers an end-to-end, pollution-free solution for cement transportation.
Private Investment and Simplified Pricing
Manjunath Kanamadi, CPRO of SWR, shares details about implementation. SWR invited expressions of interest from potential partners. Several bidders, including cement companies, showed interest in the project.
Kanamadi states that two simultaneous policies drive this transformation. First, freight rate rationalisation offers simplified, volume-centric pricing. Second, the bulk cement terminal policy provides a framework for private investment in mechanised handling infrastructure.
The most significant advantage is the savings across the entire supply chain. Bulk loading delivers both direct and indirect cost reductions. Overall logistics costs could drop by up to 30%.
Eliminating Complex Freight Structures
The new system removes the old distance and weight slab system. That system caused high, unpredictable jumps in freight charges. Short-to-medium haul routes under 300 km suffered particularly. Now, a uniform flat rate of Rs 90 per tonne per kilometre applies. This rate charges on actual gross tonne kilometre (GTKM).
Previous rates varied widely. They often averaged Rs 1 to 1.5 per tonne per kilometre. Rates depended on distance slabs, making short-haul rail transport uncompetitive. The new approach creates a more predictable and efficient pricing model.
This initiative marks a strategic shift in how India moves construction materials. It combines infrastructure innovation with policy reform. The result should benefit both industry and consumers through lower costs and increased efficiency.
