As Mike O'Driscoll, global head of research for IM Research, pointed out: "Managing the costs of logistics is vital for new mines to become profitable. In the US, the frac sand frenzy has seen the cost of logistics account for around 67% per tonne of product".
"Ultimately, the client opted for using block trains to bring the material to the plant's rail head while the final, short leg of the journey would be done by truck," said [Ulrich Koester]. "The cycle time is seven days, allowing us to run 50 deliveries per year. Trains carry 1,400 tonnes of product per journey".
As IM's O'Driscoll concluded: "Industrial minerals logistics account for a significant, sometimes a majority, share of the total delivered cost of the mineral to the customer. The importance of (their) logistics cannot be underestimated."
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