Challenges For Mining Transportation Companies
The transportation of smaller cargo can be handled by simpler logistic solution. But as the cargo’s size, shape and natural get complex; specialized logistics solution are required. Particularly when it comes to mineral or commodity movement, the transportation of cargo become sensitive and sometime dangerous. Especially in case of mining transportation, the companies working in this field come across many challenges and needs to design their solution as per nature of cargo.
The mining transportation companies have to design transportation route for from mines to storage facility. For movement of cargo from mines, companies use railway tracks and trains are the most suited mode of movement by offering flexibility in size and shape. But problem with in trains is that companies have to rent out trains from railways companies and all the liability transferred to Logistics Company instead of railways companies.
Other challenge also comes in investment the mining companies have to make along their client in development of infrastructure of railways tracks, road or haulage area. These infrastructure needs to be keenly designed as per standards necessary for transportation of these minerals. The equipment used in movement of goods is also engineered accordingly to perform these tasks. Hefty capital investment is needed to perform this task. The other daunting challenge is managing the labor force and skilled labor forces are required to handle these items.
Safety parameters should always be considered top priority because some of the minerals are fragile or can be flammable. Any equipment getting interacted with goods should be fully equipped to avoid any fatal incident. These are some the factor which increase the operational cost of mining transportation companies because they have to maintain their equipment at minimum service level. Other major cost is route maintenance cost. Route maintenance cost consists of many variables like railways tracks maintenance, road repairs, mineral storage area maintenance, training of staff and precautionary measures to avoid any hazard. Any accident or hazardous event can cost transportation companies considerable loss and that an also turns into environmental hazard. This results into severe penalties from regulatory authorities.
Usually mining transportation is carried out by special carriers and in certain cases multiple freight companies merge their source for single project to provide these services. This is difficult for any single company to have all specialized equipment, vehicles or expertise in all fields of this operation. Many companies merge together and load of work divided among them as per their area of expertise. One more pinching factor which mining transportation face is higher financial cost in terms of financial institute loans, insurances etc. No company contains excess cash in pocket to support all infrastructural development. They usually borrow finance from financial institute and sometime Clients also provide this facility in return of compensated services rates. Check this website to find out more details.
Along with all challenge, mining transport companies NSW can have profitable business because volume of business is high and due to providence of exclusive services. Competition in this field is very limited, which allow these companies to secure long term contracts and cover up their infrastructural costs.