ArcelorMittal South Africa officialy opened the Isando Distribution Centre, marking the company’s shifting goods from road transport to railway.
Within the project, Barloworld Logistics has been appointed by ArcelorMittal South Africa to manage the rail flows from company’s production centres through to arrival at the Distribution Centre and Transnet Freight Rail will extract efficiencies from the rail system, lowering the costs of logistics. Grindrod Intermodal has been selected to operate the Distribution Centre owing to their steel handling experience.
ArcelorMittal South Africa is committed to removing cargo from the road network and transferring it to rail transport and is expecting that the initiative will increase the Transnet market share of outbound steel on rail from 13% in 2016/17 to 34% by 2018.
The migration of dispatches from road to rail will result in reduced carbon emissions, logistical costs and road congestion, as approximately 42 000 trucks per annum are removed from South African roads.
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