Bulk Cement & Fly Ash movement by Rail

By
Praveen Garg
Sr. Vice President – Logistics & Energy Sourcing
Vicat Group in India
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Bulk Cement & Fly Ash by rail

Bulk Cement & Fly ash can be moved with all 3 wagons options
BCFC-BCCW , BTAP , TANK CONTAINER
Based on location , siding & infrastructure available at loading station and unloading
point any of the one option can tried

Tank Container

BTPA Wagons

2/ BCCW Wagons
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In the year 2000 – Thermal Power Plant in
Europe and Asia

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In the year 2018 – Thermal Power Plant in

Europe and Asia In developed countries ,
thermal power plant has no
future

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In the year 2000 – Thermal Power Plant in
India

Spread of power plant was

across all region without
looking at logistics
advantage/disadvantage of
coal movement

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In the year 2018 – Thermal Power Plant in
India

If we compare year 2000 and 2018 ,

we will see all new power plants are
coming up near coal mines or at the
ports

Power plant which are away from both

coal mines or port has no future and
lot of them are either shutting down or
running with PLF of less than 50%

In next 5-10 years , all major power

plants which are away from coal mines
or ports may shut down their operation
because of increase in renewable
energy sources and cost disadvantage
w.r.t port/coal mines based thermal
power plant
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In the year 2018 – Thermal Power Plant in
India

All Major power plant will be

located either near to coal
basin/mines or near ports

All Major power plant

will be located either
near to coal
basin/mines or near
ports

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Fly ash movement by rail

Shift in the concentration of power plant near to port /coal mines gives an
opportunity to move fly ash by rail
Spread of cement plant/grinding unit are either near to limestone deposit/cities
/fly ash sources

Cement Plant having sourcing arrangement of fly ash from power plant which
are away from coal mines/port are in trouble as these power plant are running
with PLF of leas than 50% are they not able to fulfill complete requirement

Under such scenario , all such cement plant/grinding unit has to bring fly ash
from higher distance power plant located near ports /coal mines .

With such kind of economic scenario , fly ash movement by rail is a win –win
situation for power plants – cement plant – railways
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Rail Fly Ash movement : Infrastructure /
Policy and required support

Power plant located near port

• Most of these power plant does not have
railway siding
• At present 99% movement of fly ash from these
power plants are by road or sea
• Common siding facility for such power plant
can be explored for movement of fly ash by rail

Power plant located near Coal Mines

• These power plants have extra fly ash available
• Cement plant which are facing shortage of fly
ash are at higher distance from such power
plants
• There is very high potential for movement of fly
ash by rail from these power plant to the needy
cement plants

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Action to be taken by all

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Railways & Cement Power

3PL companies Plants Plants

Common siding facility All Major cement plant Power plant near port can
to be explored by should develop tie up with nearest
railways unloading facility at port/private railway
plant for fly ash siding for infra
Either Railway or 3 PL unloading by rail development for
companies can own fly movement of fly ash by
ash wagons for common Bigger cement plant rail
movement should invest on wagons
and dedicated facility to All major power plant
Railway has to make move fly ash by rail can build rail fly ash
policy and pricing of fly loading facility
ash movement by rail
more attractive

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Support required from Railways

Busy season surcharge on privately owned wagons to be waived off

This will help to enhance the bulk cement rail share further

Higher Turnaround time of BCCW/BCFC rake makes the investment

risky
Leasing and maintenance cost of the wagons becomes higher than the discount
offers on privately owned wagons because of higher turn around time
Faster turnaround time will help to push more volume

Bulk rake ( BCCW/BCCW/Tank Wagon) if used in both direction

loaded ( to and fro loaded ) special/fare discount is required to make
it competitive as compared to road

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Thank You

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