Case Study

logistics consultancy

Logistics infrastructure feasibility study

The Trans Global Projects Group provided an initial and then a more detailed feasibility study on behalf of a mining company on the proposed expansion of its iron ore mine in Ukraine. This specifically included the logistics infrastructure required for the export of additional iron ore production, planned to increase from nine to 55 million metric tonnes per annum (mtpa).

Definitive information and capital expenditure details were required for the upgrade of the transport system and its infrastructure from the mine site to numerous international delivery points.

The results of the initial study yielded investigation into the feasibility of logistics for an increased output of up to 20 million mtpa in less than five years.

The study concentrated on upgrades to the local private and national rail system and its capability of handling the full annualised capacity during winter months when other transport options were unavailable.

Further information included the drawing up of an execution strategy for complete development of the works; identification of which infrastructure investments were likely to remain assets and which would revert to state ownership; and the drawing up of a schedule to correlate with incremental capacity expansion. All costs were estimated with an accuracy of +/-15 per cent. Potential risks and mitigations associated with the project were also outlined.

Our findings were used extensively by the client when discussing investment with selected financial institutions.