Tata Steel has tied up with major logistics players to transport iron ore to Europe from its yet-to-be developed mines in Canada.
To be sure, its joint venture — Tata Steel Minerals Canada Ltd — is expected to start mining the commodity, to be used for its 4.2-million tonne a year direct shipping ore project, only sometime next quarter.
The project assets — both brownfield and greenfield — are located in Quebec, and Newfoundland and Labrador, provinces that have limited logistics infrastructure.
TSMC will use four different rail links to take the ore to the port of Sept-Iles, in Quebec. Last month, TSMC signed up parallel agreements with rail operators and the port authority.
Logistics Strategy
According to the logistics strategy, the first 21-km railway line from the mine/beneficiation plant area will be built to connect an existing transportation line. It will be operated by a global short freight railroad company, Genesee and Wyomong Inc, and be constructed by its subsidiary KeRail.
The track-laying work is likely to begin in the next few months. The line is expected to be operational by the middle of 2013.
In the 205-km second stage, the ore will be moved by another operator to a siding, where an exchange yard is to be built. The 347-km third section will see a different operator run the trains to the 35-km final stretches linking the proposed port facility. This last rail link will also witness another change of crew and locomotives.
According to TSMC, in the first stage, one ore train will haul the products every second day and bring in materials and supplies required for the operation.
At the port-end, 5,000 tonnes an hour unloading is anticipated. The ore is to be conveyed to the existing ship loaders at the Sept-Iles Port Authority wharf, able to accommodate ocean-going vessels up to 1,30,000 dead-weight tonnage.
Canadian National Railway Co is partnering with TSMC for the feasibility study of the new railway and terminal handling facility. The Railway , which is financing the study, is also “coordinating” TSMC’s application to the environment assessment agency.
The 50 million tonne a year port terminal is expected to be complete by April 2014. TSMC will invest a total of $12.8 million in two phases.