ILOS supports mining company in analyzing logistical alternatives for cargo transportation.
A mining company that previously used rail transport to move its cargo had switched to road transport. Faced with uncertainties about the efficiency of this decision, it sought strategic guidance to assess whether returning to rail, also considering the port of export, could generate reduced logistics costs and greater operational efficiency.
To support this assessment, ILOS conducted a comprehensive diagnosis of the operation, mapping the available rail network in Brazil and identifying ports compatible with the volume and type of cargo transported. ILOS analyzed the viability of different rail transport corridors, surveyed costs and service levels in different potential scenarios, and compared them with the current logistics model.
The study allowed for the evaluation of the feasibility of changing the transport mode and the identification of more efficient alternatives for cargo flow, generating strategic input for decision-making regarding the company's future logistics structure.
project type
- transport strategy
Segment
- Mining
Consulting services to assess the feasibility of using rail transport for freight.
Challenge
The mining company had switched from rail to road transport and needed to assess whether it would be worthwhile to return to using rail to transport its cargo. The company wanted to analyze the available ports and calculate the total cost and service levels of the viable options.
ILOS solution
ILOS's consulting firm mapped the available rail network in Brazil that could meet the company's transportation profile. Compatible ports for the cargo and potential logistics corridors for distribution were identified. The costs of different scenarios were calculated and compared with the costs of the current operation.
- Analysis of the estimated tax benefits with the new CD
- Definition of areas to be served by the eventual distribution center in Minas Gerais.
- Sizing the necessary capacities in each scenario.
Results
The ILOS study provided greater clarity on the viability of using rail transport and on the most efficient distribution alternatives, supporting the company's strategic decision-making.
- ILOS conducted realistic estimates of the tax benefits that could be captured, identifying that these gains were below the client's expectations.
- Recommendation not to open a new distribution center in Minas Gerais.
