Cheaper Cement Transport to Cut Housing Costs, Says Ashwini Vaishnaw After New Railway Freight Reforms

Union Railways Minister Ashwini Vaishnaw on Tuesday unveiled a major freight rationalisation policy that could lower cement transportation costs across India, potentially easing expenses for middle-class families building homes. The initiative, which focuses on the use of specialized tank containers for bulk cement transport, was launched at Rail Bhawan in New Delhi as part of the Railway Reforms for Cement Transportation policy.

Vaishnaw explained that the new system would simplify the logistics of cement delivery by allowing manufacturers to load cement directly into custom-designed containers at factories. These containers will then be moved to distribution points or retail markets without intermediate handling, minimizing spillage and pollution. “We have designed a new tank container where bulk cement will be loaded in the factory itself and then transported to the point of consumer without any pollution,” Vaishnaw said, adding that this reform will help lower costs for end consumers.

He further highlighted that by applying a uniform freight rate, the policy gives flexibility for terminals to be established closer to demand centers. “By having a flat rate, the terminal can be located at any point depending upon the need of markets. We want to simplify container transportation,” he stated. The initiative aims to make movement more efficient and cost-effective for both manufacturers and distributors, strengthening the overall cement supply chain.

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According to the minister, India’s railway sector continues to expand its freight capacity significantly, crossing 1.6 billion tonnes of cargo transported annually. With this milestone, India has now overtaken the United States to become the world’s second-largest freight-carrying railway network. The new freight regulation for bulk cement is expected to give a boost not only to the cement industry but also to the housing and infrastructure sectors.

Industry experts believe the rationalisation of cement freight charges could have a trickle-down effect, reducing construction costs for households and small builders. The government’s push aligns with its goal of promoting sustainable logistics through faster, greener, and more affordable railway operations.

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