Leading Russian steel producer NLMK Group has announced that it is to launch a pilot project for outsourcing the internal logistics at NLMK Long Products Division in the Urals region together with Freight One, which is the largest rail freight operator in Russia.
Freight One will manage railway transportation operations at the Urals sites of the Long Products Division (NSMMZ and NLMK Metalware). It will lease rolling stock from NLMK Group and manage the railway department shared by the two plants, as well as provide maintenance of track facilities and locomotives.
The project is expected to reduce the sites' transportation and maintenance costs by at least eight percent.