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RINL to ship bulk cargo to three major destinations

In a bid to prune its logistics cost, the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, has awarded an annual contract for movement of its bulk products to three major destinations in the country through Shreya Shipping and Logistics Ltd. belonging to Dubai-based Transworld Group. RINL sources told The Hindu that they had issued a Letter of Intent for an annual contract of Rs.

75 crore to Shreya Shipping, hitherto involved in movement of container cargo, and the first shipment would be flagged off from Visakhapatnam Port sometime next month. As part of the contract, instead of road and rail movement, RINL would transport its bulk products to the stockyards located at Kochi, Mumbai, and Ahmedabad from a multi-purpose ship acquired by Shreya Shipping.

As per the estimates, 90,000 tonne will go to Ahmedabad, 75,000 tonne to Mumbai, and 60,000 tonne to Kochi. RINL, which has completed expansion of 6.3 million tonne with an investment of Rs.

12,300 crore through internal accruals, is at present spending Rs.

4,000 crore for modernisation of blast furnaces and other critical facilities to take the total production capacity to 7.3 million tonne. Incurring of net loss for two consecutive years due to damage caused by cyclone Hudhud and adverse market conditions, the Ministry of Steel has directed the RINL management to focus on cost reduction.

While RINL spends about 15% on logistics, it also shells down a huge amount towards sourcing raw material, including iron ore and coal, as it does not have captive mines unlike SAIL, Jindal, and TISCO, the major steel producers of the country.

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