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2010 March 2   10:21

Severstal cuts its logistics costs at 5m rubles in Q4, 2009

Following the results of the forth quarter of 2009 (Q4, 2009), Severstal tube-rolling mill in Kolpino (a suburb of Saint Petersburg) managed to reduce its logistics costs (for large diameter pipes) through cooperation with Neva-Metal, a stevedore of Cherepovets company costs, as the press-service of Severstal reported, the cutback was possible thanks to synergistic project by Neva-Metal that launched in November 2009 a service for the equipment and alignment of rail cars.
 
Igor Nechaev, commercial manager of Cherepovets, in charge of the business of Neva-Metal said the transfer of the service to the Severstal stevedore helped a 15% costs reduction for the stevedoring service.
 
Besides, the cost cutback ensued as a result of changes in the system forwarding of the LDP. Severstal TRM as a shipper running the logistic-cost-cut program from November 2009 has managed to reduce the cost on drawing up clearance documents by 35%, the company said.
 
Neva-Metal optimizing the use of warehouse space plans a score of other effective synergistic projects, including container transshipment of iron ore pellets, as well as scrap metal.

Neva-Metal is incorporated in Severstal Russia Steel. N-M company maintains and operates its berths in the third area of the Seaport of St. Petersburg for handling ferrous metals produced by Cherepovets Severstal, secondary metals of Severstal-Vtormet LLC, as well as handling container cargoes. Neva-Metal showed 2.2 million tons of cargoes handled in 2009.

Russia Severstal Steel, a division of Severstal OJSC is one of the largest steel producers in Russia. The RSS’s revenues for the first half of 2009 totaled $2billion 497 million, EBITDA - $330 million. In the first half of the last year the Severstal enterprises were listed among the most efficient producers in the global steel industry. The Severstal OJSC includes six segments: steel, supply, hardware, pipe, service and procurement of scrap.

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