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Haulier reports 'significant' fall in road transport of steel
Page 12
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,yes Brown THE COMPANY that manages road transport operations for Corus admits it has witnessed a "significant reduction" in the volume of steel transported over the past few months.
Mark Starosolsky, who oversees TDG's 4PL transport operation for steelmaker Corus at Scunthorpe, as TDG operations director for Corus UK, says the falls in volumes have -hurt everyonebut his firm has been working hard to "minimise the effect" on all its partners as it endeavours to "minimise Corus logistics' costs through this downturn".
Last week Corus revealed it is cutting about 2300 jobs at its sites in Britain to help improve its annual profits by about £200m.
Corus currently employs 24,000 people in the UK and 42,000 across the world.
Since August 2008, TDG has centrally managed the transport operations of 60 Corus production and distribution sites, which use about 30 separate hauliers. Before the agreement, individual Corus sites had bought and managed their transport services separately.
David Fox, chairman and managing director at David Fox Transport, based in Middlesbrough. Teesside, is one of the hauliers involved in the operation. He says: "January and February are traditionally quiet months in the calendar so it is difficult to say what the impact has been so far.
"It will be March or April before we know to what extent the financial crisis has had on the steel industry and us."
Another TDG/Corus partner is Prestons of Potto, based in Northallerton, North Yorkshire. Anne Preston, chairman, says: -We are obviously down, but we have not seen a dramatic impact yet.
"I'm sure us and the steel industry will come out of this strongly and we will weather the storm."