Freight One and NLMK Group, the largest steelmaker in Russia, are to launch a pilot project for outsourcing the internal logistics at NLMK Long Products Division in the Urals region.
Freight One will manage railway transportation operations at the Urals sites of the Division (NSMMZ and NLMK Metalware) and it will lease the rolling stock from NLMK Group and manage the railway department shared by the two plants, as well as provide maintenance of track facilities and locomotives.
Outsourcing of transport logistics on the industrial sites to Freight One aims to expand Freight One service portfolio and to optimize the plants’ costs of steel products transportation, as well as cut railway transportation expenses by at least 8 percent per year.
” Freight One’s new service offering and its testing on the sites of the largest Russian metallurgical holding will promote further optimization and improvement in the Group. Further spread of industrial logistics will increase efficiency of our cooperation with key customers and will become a reliable source of growth in cargo base,” said Alexander Sapronov, Executive Director of Freight One.