Omnia buys 20 rail tankers to support local ammonia supply chain

16th June 2023 By: Tasneem Bulbulia - Senior Contributing Editor Online

In a proactive response to recent industry dynamics and the pressure faced by global supply chains, JSE-listed Omnia Group says it is taking decisive steps to strengthen a robust ammonia supply chain by buying 20 additional ammonia rail wagons.

These wagons will serve as additional mobile storage for the chemical.

“Considering recent industry trends, we have made the strategic decision to acquire 20 additional rail wagons. This will enable us to add to our rail fleet and provide us with additional agility in our supply chain.

“This will aid our consistent and reliable supply of ammonia to our Sasolburg manufacturing facility from the Richards Bay Ammonia Terminal in KwaZulu-Natal,” explains Omnia CEO Seelan Gobalsamy.

“Our objective is to bolster the flexibility of our ammonia rail transport and with these extra tankers, we can better manage the supply of ammonia,” he adds.

Omnia avers that ammonia is one of the most important chemicals produced in the world and that it plays a pivotal role in the production of nitrogenous fertilisers, refrigerant gas, water purification, plastics, explosives, textiles, pesticides, dyes and other chemicals.

Beyond supplementing the existing ammonia supply chain, the new tankers will deliver more ammonia per block train, serve as additional mobile storage of ammonia and provide greater control over the supply of ammonia to Omnia’s Sasolburg factory.

“By fortifying the supply chain, our clients will continue to receive the exceptional service synonymous with the Omnia brand. Our business model has always prioritised continuous innovation, in order to create value at various supply and service chain stages.

“We continue to promote the responsible, lower-impact handling and use of chemicals for health and safety, with a progressive shift towards lower environmental impact and cleaner technologies,” outlines Omnia manufacturing executive Francois Visagie.

Omnia says its transition to an integrated supply chain approach has proven pivotal to enhancing visibility and agility, empowering teams to respond swiftly to critical raw material shortages.