Logistics can deplete half of the operating costs of a mine, and even more. The transport of bulk commodities from ‘pit to port’ – or to the point of processing or consumption – is a fundamental cog in the mining supply chain that can be easily derailed and grind to a halt without a well-oiled logistics solution.
In Africa’s remote mine sites, this often involves fundamentals such as the design and construction of roads, railways and ports because the required infrastructure is dilapidated or simply non-existent. One way of lubricating the logistics supply chain (inbound and outbound) and removing inefficiencies is through outsourcing the project management to a third-party logistics (3PL) provider.
‘From extraction to delivery, mining companies use many different transportation modes, with requirements for specialised equipment and expertise,’ says PLS Logistics, a leading US-based 3PL firm in a white paper on mining logistics.
According to PSL: ‘Inbound moves can include a mix of LTL [less than load], full truckloads, flatbeds and multi-axle trailers. Outbound moves to processing plants and ports can use rail, barge and trucks. Co-ordinating and synchronising these moves is difficult and requires expertise across all modes. That knowledge is tough to come by, particularly if freight management is an add-on responsibility to another “full time” job.’
