Sail’s strategy is founded on innovation:
Our innovations are striking in their simplicity – simple solutions that challenge and replace the old ways of doing things.
Historically, chrome ore markets have been supplied with two products – lumpy ore or concentrates derived from fines. Sail has pioneered developments that overcome the drawbacks traditionally associated with both products.
Lumpy product is notoriously friable so, by the time it reaches the user, a significant part of the shipment will have downgraded to fines that can adversely affect the smelting process by choking furnaces. Fines have had to be separated from lumpy, and the concentrates made from fines have had to be pelletised at some considerable cost to the user.
Working closely with chrome-users, Sail has overcome these drawbacks by demonstrating that run-of-mine material, which combines fines and lumpy, can be safely used without the fines content choking the furnace.
Fines also cushion the friable lumpy from degradation during transportation to the end-user. The result has been that the run-of-mine product has become highly desirable and commands a premium to prices of pelletised concentrate. Its use can save smelters as much as $25/t on the previous cost of separating fines from lumpy, and the subsequent need for sintering or pelletising of fines before their use as a furnace feed.
It is a simple and well-known fact that unit costs can be reduced significantly if capacity is filled on the out-bound and return legs of a shipping journey. This has long been a challenge in South Africa's trade with China. For many years, the standard 40ft containers that arrived fully charged with manufactured goods at South African ports would often be returned empty.
Sail spotted this opportunity to transport its chrome ore in containers that otherwise would have returned to China empty. This was easier said than done. Tipping a 40ft container to discharge bulk ore could and did break the backs and lead to the collapse of the container being discharged. That was a drawback that did not affect 20ft containers, but very few of these half-sized units were being used between China and South Africa.
The solution was stunning in its simplicity – Sail designed a 40ft loading platform that supported the middle of the container being tilted to discharge ore and installed these platforms at major Chinese ports.
Sail's advantages have not stopped with the physical aspects of discharge. Chrome exporters who had no Chinese financial facilities, preferred to be paid in US Dollars through bills of lading at South African ports. The buyer, understandably, was reluctant to pay full price for a product that might degrade while on its sea passage and preferred to settle the amount due in RMB (Yuan Renminbi) transactions based on Chinese port holding certificates after the delivery quality had been agreed.
Transport in 40ft containers overcomes the degradation problem, while an agreement forged with ChinaLight Resource Import & Export Corporation helped overcome the previous transactional obstacle. Sail was therefore able to deliver more than 2 000 loaded containers to China, each at a cost-saving of as much as $15/t which was shared between Sail and the South African chrome suppliers with which it transacts.
Historically, chrome ore markets have been supplied with two products – lumpy ore or concentrates derived from fines. Sail has pioneered developments that overcome the drawbacks traditionally associated with both products.
Lumpy product is notoriously friable so, by the time it reaches the user, a significant part of the shipment will have downgraded to fines that can adversely affect the smelting process by choking furnaces. Fines have had to be separated from lumpy, and the concentrates made from fines have had to be pelletised at some considerable cost to the user.
Working closely with chrome-users, Sail has overcome these drawbacks by demonstrating that run-of-mine material, which combines fines and lumpy, can be safely used without the fines content choking the furnace.
Fines also cushion the friable lumpy from degradation during transportation to the end-user. The result has been that run-of-mine product has become highly desirable and commands a premium to prices of pelletised concentrate. Its use can save smelters as much as $25/t on the previous cost of separating fines from lumpy, and the subsequent need for sintering or pelletising of fines before their use as a furnace feed.
The shipping lines were paying transporters a haulage fee for returning empty 40ft containers from JHB or PTA to Durban port, known as 40ft evacuation.
Haulage cost differences between full and empties were marginal for 40ft containers. Sail stuffed these cabortage containers with chrome at the Pretoria warehouse and moved them to the port of Durban. The chrome was then offloaded and the containers were returned to the shipping lines. The shipping lines' haulage fee paid to Sail subsidized the inland logistics fee substantially.
Again, both Sail, the suppliers and the customers benefitted from the saving!
Milan Lalloo June 2014
During boom times when commodity prices were high compared to mining costs, producers had no qualms about giving up some margin for the use of third party traders to act as middle men in brokering the deals between producer and end-user. Since the 2008 global financial crisis, companies having become more discerning over their cost base, questioned the necessity of the trader.
Large amounts of chrome are carried by conventional side tippers, from the mine to the port but these vehicles often return to the mine empty.
Sail has designed the flat deck side tipper. This trailer is able to carry loose bulk, pallets and containers, which substantially increases the likelihood of return loads. The return loads subsidize the cost of the trip, which leads to a more competitive chrome logistics cost.
Milan Lalloo October 2013
In South Africa there's an abundance of container rail capacity but insufficient bulk rail capacity.
Due to the fact that South Africa exports large amounts of mineral products but little consumable goods, container rail cannot be used for loose bulk cargo as the loading process becomes complicated. Product needs to be stuffed into containers at warehouses and transferred onto rail for container exports, not loose bulk.
Sail initially chopped the top off a standard 20ft container as an alternative to using a bulk rail wagon. The product was loaded from the top using a front-end loader. Due to it's high density, the product only reached half of the container height.
Sail then redesigned the 20ft open top by cutting it into half of its original height. This enabled the double stacking of empties whilst repositioning for the return leg. The saving as a result of this innovation has been substantial!
Milan Lalloo September 2013
It is a simple and well-known fact that unit costs can be reduced significantly if capacity is filled on the out-bound and return legs of a shipping journey.
This has long been a challenge in South Africa's trade with China. For many years, the standard 40ft containers that arrived fully charged with manufactured goods at South African ports would often be returned empty.
Sail spotted this opportunity to transport its chrome ore in containers that otherwise would have returned to China empty. This was easier said than done. Tipping a 40ft container to discharge bulk ore could and did break the backs and lead to the collapse of the container being discharged. That was drawback that did not affect 20ft containers, but very few of these half-sized units were being used between China and South Africa.
The solution was stunning in its simplicity – Sail designed a 40ft loading platform that supported the middle of the container being tilted to discharge ore and installed these platforms at major Chinese ports.