Cement Association Urges "End Railway Strike"... Daily Train Runs Plummet from 25 to 5
Korea Cement Association Issues Statement on the 15th
"Cement Supply Disruption Is an Inevitable Situation"
The cement industry raised its voice, earnestly requesting the National Railway Labor Union to "end the strike promptly and return to the front lines as soon as possible."
The Korea Cement Association stated this in a press release on the 15th. Due to the suspension of freight train operations by the railway union, which went on strike the previous day, the number of cement freight train operations sharply dropped from the usual 25 times (about 26,000 tons) to 5 times (about 5,200 tons).
On the morning of the 13th, one day before the first general strike announced by the National Railroad Workers' Union, a cement transport train was stopped at Obong Station in Uiwang-si, Gyeonggi-do.
Photo by Yonhap News
The Cement Association emphasized, "Cement, which relies on rail transport for most of its logistics system, accounts for 40% of domestic rail freight. Therefore, regardless of the duration of the strike or other emergencies, disruptions in cement supply through rail transport are inevitable."
They continued, "A concerning point is that if the strike prolongs, the worst-case scenario cannot be ruled out. Especially, September is the peak season that determines the annual business performance of the cement industry. For example, during the longest 72-day strike in the history of the railway union in 2016, the cement industry suffered sales losses amounting to about 71.2 billion KRW (860,000 tons in volume), and that strike also lasted from the peak season in September to early November."
The Cement Association also explained, "If the strike prolongs, despite increased transportation costs, we must maximize the use of land transport means (BCT vehicles), but due to transport capacity limits, supply disruptions are unavoidable. Detour transport via maritime shipping is limited as it does not apply to inland companies that heavily depend on rail." It is estimated that about 1,040 tons of cement can be transported per rail trip, whereas land transport is about 25 tons.
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Meanwhile, the Cement Association promised to minimize damage caused by the strike to related industries such as ready-mixed concrete. The association said, "Since last month, with frequent heavy rains and the strike already anticipated, the industry has been stockpiling cement at distribution bases nationwide and has thoroughly prepared for a temporary strike. We expect to absorb the shock caused by the strike and minimize supply and demand disruptions."
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