Despite the current commodity/mining recession, Namdeb (Namibia Diamond Corporation) has tapped into the mining logistics solution provided by Crossroads Namibia designed to contain costs, reduce risks, improve supply chain logistics and enhance safety.
Namdeb is a wholly owned subsidiary of Namdeb Holdings, which is co-owned by the government of the Republic of Namibia and De Beers. Its main land-based operations are in Oranjemund, with satellite mines near Lüderitz and along the Orange River.
The company is known for innovation, particularly in terms of its mining techniques, as well as a strong emphasis on safety. Both factors are enhanced by a logistics solution provided by Crossroads Namibia.
Based on 20 years’ of experience in providing logistics solutions to some of the biggest names in mining, Crossroad’s solution entails the professional, outsourced management of inbound logistics through centralised consolidation hubs.
Replicating the success formula Crossroads South Africa has implemented for the De Beers Namdeb Group and other mining heavyweights in South Africa, Crossroads Namibia has, since the beginning of September, provided this proven consolidation service to Namdeb operations in Oranjemund.
Robert Benade, Regional Manager, Crossroads Namibia, comments: “The new consolidation agreement between Crossroads Namibia and Namdeb’s Oranjemund operations adds another consolidation arm to the existing arrangement between Crossroads South Africa and Namdeb, although this contract is separate from the South African operations, and was awarded through a separate tender process.”
Benade explains that the consolidation agreement entails the collection of goods in Swakopmund, Walvisbay and Windhoek, before the loads are consolidated into a single load at the Crossroads Namibia consolidation point, from where it is delivered to Oranjemund twice per week.
En route to Oranjemund, collections are also done in Mariental, Keetmanshoop and Rosh Pinah. Shipments from the Midrand consolidation centre in South Africa are shipped straight through to Oranjemund.
The benefits of this solution are numerous. Given the vast range of maintenance, repair and operation (MRO) supplies required by Namdeb, the centralised consolidation hub provides a streamlined solution to prevent the mine from being overrun by deliveries from hundreds of suppliers with half-loaded trucks, which not only increase costs for suppliers, but also for Namdeb, but also represents a significant safety risk.
“Instead, Crossroads is simply copied into the supply orders, and receives the deliveries at their central consolidation hubs, where the orders are checked and scheduled for a bi-weekly delivery to the mine,” says Benade.
“Crossroad’s centralised consolidation hubs further ensure strict quality and quantity control, rectifying any errors quickly and cost-effectively. In addition, consolidated, single-truck deliveries, arriving at the mine at scheduled times, ensure minimal administrative hassles and a safer working environment. This is of particular importance to mining operations in remote and restricted areas, such as Oranjemund.”
The consolidation agreement also facilitates rapid response to orders, reduces the number and cost of deliveries, shortens lead times and increases the speed of delivery.
The benefits of the consolidation agreement will also extend beyond the mining operations to the entire town of Oranjemund. A small town in the far south-western corner of Namibia, Oranjemund is restricted to the general public.
However, the government has plans to open up the town, and the Crossroads consolidation agreement will enhance these efforts. “We have already commenced a three-year contract with Namib Mills to transport bulk deliveries of maize, pasta and sugar to the town,” comments Benade.
“We are pleased to expand our capabilities to deliver cost savings, as well as safety and efficiency benefits, to the Namdeb operations as well as to the entire town of Oranjemund. Our service delivers tangible solutions that transform inbound logistics into a major contributor to the mine’s profitability, while reducing risk. For the town the service has the capability of improving supply lines and the cost of delivery from foodstuff to hardware.”
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