Displaying items by tag: railway

Colombia: Cementos Argos transported around 50,000t of cement by train in 2020. It plans to increase this by 30% year-on-year to 70,000t in 2021 as part of its sustainability strategy. The cement producer has started using the Belencito - Bogotá and Puerto Triunfo - Puerto Wilches routes as the country has started to revive railway lines in recent years.

Cement scalpers in Tanzania have been threatened with jail time for hoarding cement! The country faced a shortage of cement and other building materials in October 2020 and Prime Minister Kassim Majawali ordered an investigation into the issue following the conclusion of the presidential election earlier that month. Both regional commissioners and the National Prosecution Service have been dragged into the initiative. Director of Public Prosecutions Biswalo Mganga promised to local press that wrongdoers could face up to 30 years in prison for daring to hoard products or distort the market.

Rhetoric aside, the situation is curious given that HeidelbergCement’s local subsidiary, Tanzania Portland Cement, seemed to think in its 2019 annual report, that the country faced a 5Mt/yr overcapacity from integrated and grinding plants compared to a total production base of 10.6Mt/yr. However, the East African newspaper reported that despatches fell to 150,000t in October 2020 from 450,000t in September and August 2020, with a 30% surge in the price in some parts of the country.

In the wake of this, Dangote Cement apologised publicly for failing to communicate a planned stoppage at its Mtwara plant to the wider public. Tanga Cement then denied that its production was down. It said instead that production was at the highest level and that large chunks of its output was servicing government-backed infrastructure projects like the Standard Gauge Railway (SGR) and the Kigongo-Busisi Bridge, which will span the southern end of Lake Victoria. It also blamed a lack of trains on the Tanga-Moshi, which was reopened in mid-2019. It seems reasonable that cement prices might vary quite markedly, even before the profiteers got involved, due to the reasons above. Other issues locally include poor transport links, long distances in a country like Tanzania, the recent election and lingering hiccups from the blockage of imports from Kenya in 2018 that may not have helped either. The investigation continues.

A wider issue here is how much cement production capacity the country and the region can support given a propensity for spikes in prices. As Global Cement has covered previously (GCW456 and prior issues) Chinese producers have been heading into Sub-Saharan Africa over the last decade. Huaxin Cement bought ARM Cement’s assets in Tanzania in May 2020. It renamed the company African Tanzanian Maweni Limestone and then started trial production of clinker at the newly upgraded 0.75Mt/yr Maweni Limestone clinker plant in July 2020. Depending on how long ARM Cement’s former subsidiary was out of action, this one seems unlikely to rock the market too much. Tanga Cement also took the opportunity in November 2020 to say that talks with the government about a new 0.5 – 0.75Mt/yr grinding plant in Arusha were progressing

The proposed 7Mt/yr CNBM/Sinoma ‘mega’ plant is another matter entirely. Most of its output is intended for export but any disruption to local transport links, current or future, could swamp the local market. The export of Chinese infrastructure development around the world through its loan system could offer (occasionally literal) bridging solutions here as cement from a Chinese-backed factory is used to build the transport networks backed by Chinese loans that allow exports to proliferate. Tanzanian President John Magufuli’s comments that the poor terms for a US$10bn Chinese loan supporting a port project could “…only be accepted by a drunken man,” may not have helped international diplomacy. Still, Chinese money is actively getting things built here and elsewhere around the world at a rate previously unheard of.

Returning to the present, it makes a change to highlight a market where cement is truly demanded. A coronavirus-related lockdown may have slowed sales in the first half of 2020 but Dangote Cement estimated that the total market for cement in Tanzania was about 4.2Mt in the first nine months of 2020 and it reported its highest ever orders and dispatches in September 2020. That the country’s prime minister decided to discuss cement prices is a reminder of how important the commodity remains in parts of the world.

Indonesia: Semen Indonesia has signed a memorandum of understanding with rail freight company Kereta Api Indonesia (KAI). Indonesia Government News has reported that the memorandum covers a planned increase in cooperation on rail-based transportation and medium and long-term land leases, the conduct of joint studies into railways and infrastructure and the development of other forms of potential cooperation.

President director Hendi Prio Santoso said, “This cooperation is a synergy to complement each other and provide the best results for both parties. Through the synergy that exists today, it is hoped that it can be more optimal in taking advantage of every opportunity, so that it can further contribute to the company, Badan Usaha Milik Negara (BUMN) and the Indonesian nation.” He added, “Today is the first step in a joint commitment. Hopefully, this cooperation can run smoothly and in accordance with our goals, expectations and planned target time.”

India: Shiva Cement plans to invest around US$200m towards a new integrated cement plant in Sundergarh district, Odisha. The 1.36Mt clinker unit will also include a 1Mt/yr grinding unit, an 8MW waste heat recovery (WHR) unit, 4Mt/yr crushing plants at its dolomite and limestone quarries, a connecting 10km belt conveyor and a dedicated railway siding with a 12km track to the main network.

ThyssenKrupp Industries India will supply a 4000t/day clinker production line for the project. Larsen & Toubro has been awarded the contract for civil, mechanical and refractory erection work. The unit is expected to create around 500 jobs directly and indirectly. Commissioning is scheduled to take place by March 2022.

Parth Jindal, the managing director of JSW Cement said, "The new clinker unit at Shiva Cement in Odisha will provide a strategic advantage to service the needs of our customers in the region and further strengthen JSW Cement's leadership position in the Green Cement category in India.”

The subsidiary of JSW Cement intends to use the new plant as a strategic hub to access markets in the east of the country. It is part of the group’s aim to achieve a production capacity of 25Mt/yr by 2025.

Germany: Dyckerhoff has reopened a railway siding at its integrated Amöneburg cement plant. The additional transport link joins road and water connections at the site. The company said that reusing the railway siding made sense given low water levels in the River Rhine, that made parts of the waterway unnavigable in 2018, as well as adding a sustainable transport route. The railway tracks at the site have not been used actively since the mid-2000s. The cement producer has repaired the tracks on its site and a related signalling system.

UK: Cemex UK has invested around Euro0.65m in its UK rail transport network between 1 January 2020 and 31 October 2020, upgrading the Crawley, Cambridge, Dove Holes, Salford, Selby and Sheffield railheads. The company spent Euro0.44m on the Dove Holes railhead upgrade, “extending the rail loading wall to increase the shovel loading and storage capacity and installing track working modifications to provide more flexibility to operations” at the site in Derbyshire. It said that the investments are “part of a rolling four-year development programme, with plans in place to spend similar amounts each year.” This will include further upgrades to the Sheffield and Selby railheads in 2021. The company said that the aim is “to increase safety standards and reliability while providing opportunities to grow and enhance service levels.”

David Hart, Cemex’s Supply Chain Director for UK & France, said, “As a result of the investment into our rail network this year we have been able to grow volumes and make our service more reliable, which in turn has halved our unplanned outage costs and incidents. These developments will also ensure our railheads lead the industry for safety standards and are more robust. Rail is an integral part of Cemex UK’s supply chain network and we are committed to increasing our service further, capitalising on the time, capacity and efficiency benefits this form of transport offers.”

Portugal: Cimpor has won a contract to supply cement for a new 80km railway line linking Elvas to Évora. It expects to delivery up to 0.14Mt of cement for the project, according to the Dinheiro Vivo newspaper. Cement will be supplied from its Alhandra integrated plant and ready-mixed concrete from other sites. The project is expected to be completed in early 2023.

Russia: The railways transported 11.4Mt of cement in the first half of 2020, down by 11% year-on-year from 12.4Mt in the first half of 2019. Beton News has reported that the figure is the lowest in a decade, down by 33% from17.0Mt in the record first half of 2012.

Sweden: The Swedish Transport Association (ST) has arranged with Cementa for the supply of ‘climate-enhanced’ cement for the completion of an expansion of the Malmö – Lund Southern Main Line between Arlöv and Lund, including an underground section and three new stations. The company first concluded the contract with ST in 2017 and has since supplied normal Ordinary Portland Cement (OPC) to the major infrastructure project. It has now agreed with the client to switch to ‘climate-enhanced’ OPC produced at its 2.5Mt/yr integrated Slite cement plant, which burns over 60% alternative fuels in its kiln lines, for production of the remaining 65,000m³ of concrete required for the project. Cementa southern district manager Jenny Larsson said, “This project is in line with Cementa’s climate-enhanced vision for infrastructure.”

Nigeria: The Senate of Nigeria has urged the Federal Ministry of Transportation to complete the construction of the Ajaokuta - Otukpo railway line. The legislative chamber also advised the ministry to include a siding at Okaba to Ankpa as part of the project to make coal transportation easier, according to the Vanguard newspaper. Cement companies, including Dangote Cement’s Obajana plant and the Kogi State Super Cement Company at Allo-Itobe, would benefit from reduced coal prices. At present their coal is delivered by road. The railway project would also aid the Ajaokuta Steel Company.