Russia’s Magnitogorsk Iron and Steel Works (MMK) delivered a trial batch of metal products to Turkey along a railway route connecting Magnitogorsk, Baku, Tbilisi, and Kars.
Together with Azerbaijani operator ADY Express, MMK is developing a project to deliver up to 250,000 tonnes of metal per year, or approximately a third of MMK Metalurji’s demand in hot-rolled coil, using BTK corridor.
Four containers with a total weight of 120 tonnes were delivered to MMK’s subsidiary in Turkey, with freight cars containing metal products traveling a distance of 5,000 km within 17 days.
Until recently, the delivery of hot-rolled coils to MMK Metalurji was carried out exclusively by sea through Novorossiysk port, a route exceeding 6,000 km with a journey time of 30 days.
The diversification of logistics flows will allow the company to reduce risks associated with convention restrictions and bad weather in the Novorossiysk port area. Reducing the number of transshipments will also help avoid mechanical damage to commercial products and ensure the preservation of quality in metal characteristics.
In addition, reducing delivery time will help optimise company’s working capital by decreasing inventory in transit. The new route allows the consideration of export diversification to the Middle East, Europe and Africa through the MMK port in Iskenderun, Turkey.
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