Eurasian Resources Group to apply an innovative management system for rail cargo transportation between Russia and Kazakhstan
Transportation group TransCom LLP, owned by Eurasian Resources Group (ERG), a leading diversified natural resources producer, has developed and implemented an innovative management system that helps to minimise rail car downtime and improve the efficiency of cargo transportation to ERG’s strategic customers in the Russian market.
TransCom LLP is ERG’s integrated logistics operator in Kazakhstan. In 2016, its shipments exceeded 53 Mt of cargo, including 24 Mt of coal and 1 Mt of alumina. This new system will help to increase the efficiency of coal supplies from the Vostochny open-pit mine to thermal power plants in Siberia and of alumina shipments from JSC ‘Aluminium of Kazakhstan’ to OJSC RUSAL.
This initiative was the brainchild of numerous coordination meetings held between ERG’s enterprises and leading rail hauliers and shippers, including OJSC ‘Russian Railways’, one of the world’s largest transportation companies.
At these meetings, the parties agreed to establish integrated logistics teams to align transportation planning and traffic control processes, introduce monitoring at all stages of the shipment process, collect statistical data on the deviations, and make joint management decisions to optimise the entire logistics chain for cargo transportation.
The partners will progress to cooperating on integrating business and IT processes and developing a single logistics information system.