Logistics Evaluation for moving Input and Output Materials for a 3 MMTPA Green Field Steel Plant
Title: Evaluation of multi-modal Logistics options from various sources and through different ports for Input material for an upcoming large steel plant .
Background:
Client is a large Steel manufacturing company, with several Steel manufacturing units both upstream and downstream
Business Scenario:
The company has decided to set up a new steel manufacturing plant of 3 MMTPA capacity, which requires input raw materials of ~ 10MMTPA. These raw materials include Iron ore, coal, scrap, etc. These inputs will be sourced from multiple domestic & foreign locations.
The client wanted to determine the feasibility of each mode of transport through which this material can be brought to the plant, evaluate the various ports through which material can be imported, and understand the cost estimates for these movements. The client also wanted to understand the most optimal options based on capital and operational investments, feasibility, infrastructure and environmental cost.
Our Solution:
- Identify all possible movement options across modes and multimodal. Support this identification stage with site visits of identified ports, railway sidings and routes to evaluate feasibility, infrastructure availability and other details.
- Compare various logistics options – Coastal, Road & Rail– in terms of physical feasibility, capital investments, operational expenditure.
- Rigorous evaluation that includes non-cost parameters & a comprehensive Discounted Cash Flow based spend valuation of projected spend.
Benefits:
- Most optimal multimodal logistics mode selection from exhaustive list of options based on rigorous analysis that is comprehensive in terms of both cost & non-cost factors.
- Analysis based on ground reality at every mode and port location, hence leading to implementable recommendations.