This paper addresses freight consolidation in rail transportation planning. Multiple demand destinations are served in a single trip to utilise the volume discount on freight rate. An efficient mixed-integer linear programming (MILP) based modelling framework is proposed to optimally allocate rail wagons to a given set of destinations considering the shipment options offered by Indian Railways. Twelve problem instances are derived using real data from an Indian food grain organisation and are solved to optimum using the CPLEX solver in quick time. The results indicate that multi-point orders can reduce the total transportation cost and ease the handling of shipments at terminals.