Aperam Steel and VLI Logistics have signed an agreement to expand rail freight transport in Brazil. Aperam has a steel plant in Timoteo, Minas Gerais.
Under the agreement, VLI will transport raw material, steel materials, and steel plates for Aperam with a focus on facilitating the movement of steel plates from the interior of Minas Gerais to the coast in Espirito Santo for export.
The partnership will reduce Aperam’s reliance on trucks, which are generally a more costly mode of transportation. The road transportation industry has also encountered driver challenges, strikes, and high fuel charges that have, in turn, affected the operational costs for steel companies. Aperam has removed 1,300 trucks from monthly use.
The deal between VLI and Aperam could grow by 300pc in volume or 300,000mt of steel transported compared to the steelmaker’s logistics in 2019.
Aperam has a capacity of 900,000mt of crude steel and two blast furnaces at its plant. The company produces special carbon, stainless, and electric steels.