The Hindu Business Line : SAIL to focus on logistics facilities in various plants

THE issue of logistics and infrastructure development in various steel plants has come up for review at the top-level in Steel Authority of India Ltd (SAIL). At a meeting with the executives of the operation directorate recently, the SAIL Chairman emphasised the need for undertaking studies on the subject, more so in view of the projected increase in traffic in the coming years.

SAIL, as the Chairman indicated recently, proposed to step up production of hot metal to 20 million tonnes (mt) by 2011-12, necessitating a lot of streamlining on logistics and transportation systems at the plant level. In 2003-04, SAIL produced 12.75 mt of hot metal.

The detention of wagons at the plant level has been a major concern. There have been instances where detention has been for as long as 10 days against the stipulated 10 hours. One reason for this is the manual handling of wagons. It is also believed that older the plant, the longer is the detention period as the facilities and systems in such plants are old and outmoded.

SAIL had authorised Rail India Technical & Economic Services (RITES) to undertake a study on rail movement logistics in its Bhilai plant. Similar studies are also being contemplated for other plants at Durgapur, Rourkela and Bokaro.

Except the Bokaro plant, the other three plants were commissioned in the1950s. Since nearly 98 per cent of SAIL's movement of raw materials and finished products is by rail, the focus of the studiesis likely be the revamping of the logistics of rail movement.