Displaying items by tag: Transport

Saudi Arabia: Najran Cement has signed a deal for a US$85m six-year financing facility from Al Rajhi Bank. The producer says that its logistics unit will use the funds 'to endorse its core business activities.'

India: Indian Railways has shared plans to establish dedicated rail corridors to supply raw materials to the cement sector. The Times of India newspaper has reported that the corridors will connect plants to sources of clinker, fly ash and limestone. Indian Railways says that the plans encompass ‘different parts of the country,’ and will be implemented over the 10-year period up to the end of the 2033 financial year. In addition to offering ‘better service’ and ‘attractive’ prices, the rail company will also carry out capital expenditure investments in order to maximise the volume of materials travelling on its cement corridors.

India: The state government of Himachal Pradesh has announced the forthcoming reopening of Adani Group's Darlaghat and Gagal cement plants. Reuters has reported that truck drivers' unions agreed to a reduced freight rate offered by Adani Group. The producer shut the plants on 15 December 2022, claiming that it faced prohibitively high operating costs, including high freight charges.

Truck drivers will now receive rates of US$0.12/t/km for despatches in small delivery trucks and US$0.11/t/km for dispatches in articulated trucks. Drivers operating at the Darlaghat cement plant previously earned fees of US$0.13/t/km, while those operating at the Gagal cement plant had earned fees of US$0.14/t/km. Adani Group had reportedly sort to lower rates to US$0.07/t/km. Unions have criticised the newly negotiated rates, pointing out the UltraTech Cement recently raised the wages of drivers at its Baga cement plant in the state to US$0.13/t/km.

India: Police arrested 50 truck drivers and union leaders at protests outside Ambuja Cements’ Darlaghat cement plant in Himachal Pradesh on 1 February 2023. The events marked the 50th day of on-going protests against Adani Group’s closure of the Darlaghat and Gagal cement plant following its acquisition of Ambuja Cements and ACC in September 2022. The Times of India newspaper has reported that cement truck driver’s unions are now threatening to escalate the protests to a ‘chakka jam’ demonstration across Himachal Pradesh. This would involve blocking roads at five planned locations in the state. Union representatives will meet Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on 3 February 2022. Sukhu has repeatedly expressed support for protestors, saying that the state will not tolerate exploitation.

United News of India has reported that protestors on 1 February 2023 voiced criticism of Indian ‘lawlessness’ and of Adani Group and Prime Minister Narendra Modi’s Bharatiya Janata Party’s (BJP) power ‘monopoly’ in the country.

US: Mitsubishi Cement Corporation has reportedly abandoned its planned construction of a cement terminal at the Port of San Diego in California. The Union-Tribune newspaper has reported that the cement producer failed to produce a plan involving electric vehicle use for cement deliveries to the facility. Board of Port Commissioners rejected the company’s previous terminal proposal in 2020 because of its involvement of diesel-powered cement trucks.

Japan: Mitsubishi Heavy Industries (MHI) has won an Award for Excellence at the 41st Nikkei Excellent Products and Services Awards for its carbon capture system. It was among eight industrial products to win the award for the year. The panel of judges selected MHI's system for its compact and versatile module configuration, which shortens installation and transport times.

MHI's model has been in industrial operation since June 2022, when MHI inaugurated its first system at Taihei Dengyo Kaisha's Seifu Shinto biomass power plant. The technology is now in operation or under implementation at cement plants in Japan and overseas. Most recently, MHI secured a carbon capture contract with a UK cement plant, Hanson's Padeswood plant, in mid-December 2022.

Belgium: 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.”

India: 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’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.