Displaying items by tag: Transport
Lhoist and others secure Euro4.5m in EU funding for carbon capture and utilisation project
19 January 2023Belgium: The EU Innovation Fund has awarded Euro4.5m to a consortium consisting of Lhoist, gas provider Fluxys Belgium, concrete products company Prefer and carbonation technology developer Orbix. The collaborators are working on a project called CO2ncrEAT. The project will carbonate steel sector by-products with captured CO2 from Lhoist's Hermalle lime plant to produce alternative building materials. CO2ncrEAT will be the first project to employ Orbix's innovative technique for the purpose. Fluxys Belgium's pipeline technology will convey the Hermalle plant's emissions over a distance of 2km to a Prefer concrete blocks plant.
The consortium said that it will use 12,000t/yr of CO2 to produce 100,000t/yr of reduced-CO2 concrete blocks. The use of alternative raw materials in the blocks will further reduce their carbon footprint by 8000t/yr.
Lhoist Western Europe managing director Vincent Deleers said “The project fits perfectly with our willingness to actively develop CO2 capture and sequestration technologies that are essential to the sustainability of our industry. We are delighted that our work on innovative solutions has been recognised by the European Innovation Fund and we look forward to working with our partners to bring CO2ncrEAT to the next level.”
Himachal Pradesh government holds talks over Gagal and Darlaghat cement plant closures
12 January 2023India: Representatives of Adani Group and cement truck drivers' unions attended talks held by the Himachal Pradesh state government, after the group closed two cement plants in the state, claiming that their costs were prohibitively high. The government appointed Himachal Consultancy Organisation to guide truck unions in reaching an agreement on new freight rates. Adani Group chair Gautam Adani said that transport costs per tonne of cement were US$1.30/km in upland areas and US$0.66/km in lowland areas. The state government previously raised value added tax (VAT) rates on diesel by 68% to US$0.09/l, resulting in total diesel costs of US$1.05/l.
Adani Cement takes on the unions in Himachal Pradesh
11 January 2023Adani Cement’s dispute with truck driver unions in Himachal Pradesh is about to enter its fifth week. The standoff began on 15 December 2022 when the company closed its integrated plants at Darlaghat and Barmana in response to union freight rates. A third unit, a grinding plant at Nalagarh, reportedly continued to operate for a few days longer with raw materials supplied from neighbouring Punjab and Rajasthan, until the transport companies shut down its supply.
Adani Group took over the plants from Ambuja Cement and ACC following its acquisition of Holcim’s India-based businesses in September 2022. The new business seemed to be running smoothly as new officials were appointed and an alternative fuels subsidiary, Geoclean, was created. Then Adani Cement closed its two plants in Himachal Pradesh. In a statement the group said, “Our plants at Gagal (Barmana) and Darlaghat have been incurring losses for quite some time now with no signs of improvement due to stiff resistance from transportation unions ignoring the larger cause of employment generation and contribution to the state’s revenue.” The group added that it had requested the truckers reduce the freight rate to around US$0.07/t/km from US$0.14/t/km, with the lower rate previously recommended by a committee from the state’s transport department.
Himachal Pradesh held state elections in mid-November 2022 with the Indian National Congress (INC) party taking control of the state government from the Bharatiya Janata Party (BJP). The results of the poll were revealed about a week before the cement plants closed and the new administration has suffered a bumpy start to its tenure. At first the state government issued a show cause notice to the cement producer requesting that it explain the closures or else risk ‘appropriate administrative action.' Several rounds of talks followed to no avail. Most recently, a government subcommittee has been set up that will bring together representatives of Adani Cement and the truck unions to try and agree on new freight rates.
In production terms the closure of the Darlaghat and Barmana cement plants is a big deal in the state, given that they have a combined cement production capacity of 6Mt/yr from the region’s total integrated capacity of 10.5Mt/yr. Data is limited on the direct effects of the standoff on the cement and construction market so far. However, competitor UltraTech Cement may be benefiting as it was swiftly awarded the supply contract for government projects. Local press reports have also noted that some of the unions have been stopping cement trucks from entering the state.
What is clearer is the human side to the dispute. Around 1000 staff are employed both directly and indirectly at the Barmana plant and others have jobs at Darlaghat and Nalagarh. Adani Group has relocated at least 140 staff from both sites during the closures. In addition over 7000 drivers were supporting both plants. Even more people have jobs connected to the plants, their supply chains and markets.
The argument between Adani Cement and the truck driver unions in Himachal Pradesh needs to be resolved soon for the good of everybody. Rising fuel costs are the driver of this situation, although it would be interesting to know why the other cement producers in the state haven’t similarly reacted against high freight rates in the same way. India isn’t the only country where the cement sector has been affected by driver union activity. South Korea endured a series of driver strikes in the autumn of 2022 that disrupted the cement sector. Eventually the government enacted laws to restrict strikes that might cause disruption to key areas such as cement production. The International Monetary Fund (IMF) forecasts that global inflation rates will stabilise in 2023 after a sharp rise in 2022. Growth rates are also predicted to slow. As societies and companies adjust to this it seems likely that there will be more clashes between companies, unions and other organisations as everybody tries to absorb higher costs.
India: The state of Himachal Pradesh will lose US$11.7m-worth of anticipated tax revenues in the first month of Adani Cement’s on-going closure of its Darlaghat and Gagal cement plants. In previous months, the 1.6Mt/yr Darlaghat cement plant paid US$3.29m/month in goods and services taxes, US$1.75m/month in electricity duties, US$1.45m/month in value-added tax (VAT) on diesel, US$640,000/month in mining royalties and US$363,000/month in goods carried by road and additional goods taxes. Meanwhile, the 4.4Mt/yr Gagal cement plant paid US$1.9m/month in goods and services taxes and mining royalties, US$1.57m/month in VAT on diesel, US$1.47m/month in electricity duties and US$701,000/month in goods carried by road and additional goods taxes.
The Tribune India newspaper has reported that, despite attending several rounds of talks with the state administration, Adani Cement has yet to signal any intention to resume operations at the plants. Both facilities have been closed since 15 December 2022.
Ambuja Cements launches Ambuja Shipping Services
05 January 2023India: Ambuja Cements has launched its new marine logistics subsidiary Ambuja Shipping Services. The Adani Group subsidiary has injected US$121,000 in paid up capital into the business. Ambuja Shipping Services’ headquarters are situated in Ahmedabad, Gujarat.
Adani Cement to close two plants in Himachal Pradesh
16 December 2022India: Adani Cement has published its plans for the closure of two integrated cement plants in Himachal Pradesh. The Hindustan Times newspaper has reported the plants as ACC's 4.4Mt/yr Gagal cement plant in Bilaspur District and Ambuja Cements' 1.6Mt/yr Darlaghat cement plant in Solan District. The management of the Gagal cement plant said that losses ensuing from high operating costs, including transport costs, are the reason behind the decision to shut down that plant. ACC employs 1000 company staff and contractors at the site, and an additional 4000 truck drivers in its cement despatch operations. 3500 truck drivers also work in delivering cement from the Darlaghat cement plant. The Gagal cement plant alone reportedly despatches 5000t/day of cement for the Himachal Pradesh, Haryana and Punjab markets.
The Bilaspur District Truck Operators' Society said "The transport sector of Bilaspur is heavily dependent upon the Gagal cement plant. It's the source of livelihood for thousands of people, including operators, drivers and conductors. This decision should be reconsidered in the interest of the people." It added "Most roadside restaurants and mechanics' shops will also lose business. We never thought that this plant could ever stop functioning. It has been part of our landscape and economy for decades now."
Sheerness grinding plant secures planning permission
15 December 2022UK: The planning applications committee of Kent County Council has approved Hercules Enterprises' Euro46.5m plan for a new 500,000t/yr grinding plant at Sheerness Docks on the Isle of Sheppey. The Sheerness Times Guardian newspaper has reported that the council assented subject to the producer's adherence to its particulate and dust management plan and continual noise monitoring. When commissioned, the new plant will create 52 new jobs, generate up to 144 truck movements per day and increase traffic on the A249 by 1%.
Hercules Enterprises' director Stuart Mason Elliot said that the new facility will help to move cement production away from its reliance on road transport. He said “This is not an open, dated, dusty old operation, but a fully-enclosed, clean, modern, environmentally responsible and sustainable plant designed to be a good neighbour to residents and other occupants of the port.”
Italy: Cementir Holding sold 8.2Mt of cement and clinker during the first nine months of 2022, down by 1.7% year-on-year from nine-month 2021 levels. China, Denmark, Egypt and Türkiye all contributed to the decline. Group nine-month revenues were Euro1.26bn, up by 25% year-on-year. Third-quarter 2022 revenues rose most sharply, by 45%, in Türkiye, followed by the US (38%), the Nordic and Baltic region (20%) and Belgium (17%). During the third quarter of the year, operating costs increased by 36% to Euro365m from Euro268m. Raw materials, fuels and transport costs all contributed to the rise.
In the first nine months of 2022, the group recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro238m, up by 11% from Euro215m during the first nine months of 2021.
Austria: Rail logistics company ÖBB Rail Cargo Group (RCG) says that its haulage of 80,000t/yr of granulated blast furnace slag (GBFS) and clinker to and from w&p Zement's Wietersdorf cement plant in Carinthia by rail has removed 3200 trucks/yr from the road since its start in 2019. RCG's trains deliver the plant's clinker to the Peggau-Deutschfeistritz railway station in Styria, and return to the plant laden with GBFS from steel producer Voestalpine's nearby Leoben refinery.
RCG said that w&p Zement is currently working to increase its operations' reliance on rail, adding "Further innovative transport solutions are already being worked on."
Royal White Cement to establish new Houston cement terminal
02 September 2022US: Royal White Cement has leased a site on the Houston Ship Channel in Houston, Texas. Local press has reported that the company plans to build its second cement terminal in the city there. Houston Peninsula Terminals will operate unloading systems for the storage of cement across three facilities at the site. It is also equipped with multiple railway tracks and heavy truck loading facilities. Royal White Cement owner Marcel Fadi said that the move would help the producer to expand its footprint in Houston and beyond.
Fadi said "We have long operated in the Houston market, but this direct access to storage and bulk unloading along the channel will provide greater efficiencies and flexibility, allowing Royal White Cement to handle and store approximately 100,000t of multiple cementitious products such as slag, grey cement, and white cement."