Infrastructure and Logistics
The need for an efficient setup
In the logistics and infrastructure segments, companies must improve their efficiency. Jean Pierre Brunel, commercial manager of Odfjell Terminals, considers high congestion at Chilean ports one of the most significant challenges to efficient material transport. Mejillones, the main port of entry to Antofagasta, is particularly congested.
Technology plays a vital role in streamlining the loading and unloading process. Brunell explained that automation allows for greater efficiency and reduces the risk to people and the environment. The company works with hazardous chemicals, making safer operations a significant priority. "Automation has a positive impact on both worker safety and the environment, as it reduces the probability of chemical spills," Brunell concluded.
Increasing demand for productivity also goes hand in hand with better standards to promote inclusion and social development. ESG is about more than protecting the natural environment; it also has a robust human development component. As more social groups experience the benefits of mining in the country, the industry becomes more sustainable.
“Chile boasts a strong logistics infrastructure that supports its economy, including ports, airports, highways, and warehouses. Additionally, Chile has diversified its energy generation mix, leveraging new renewable energy facilities to mitigate its reliance on fossil fuels, and increase its sustainability.”
Tomás Valenzuela, Mining and Energy VP, Agunsa
Florencia Márquez, CEO of Axinntus, a company specializing in industrial services, highlighted the company's progress on this front: "When I arrived, there were only 6% women, and now that figure has increased to 11%. We want women to be present in all parts of the operations, including machinery and technical areas."
The industry has undoubtedly improved in gender equality; however, according to Chochilco, by 2023, women only represent around 12% of the sector workforce, and most work in non-operational areas.
The modular construction segment can be an ally for circular economy and sustainability. Pablo Rosales, CEO of Tarpulin, highlighted the company's investments to incorporate circular economy practices: "We have partnered with DEX to manufacture modular floors made from recycled plastics here in Chile. This floor can hold up to 1,000 t of pressure per square meter and is a modular solution to replace concrete in temporary projects."
Tecno Fast is another modular construction company that has taken significant steps to reduce its carbon footprint. Rodrigo Prado, general manager of Tecno Fast, stated: "We are currently working on programs to reduce waste, recycle, and supply approximately 85% of our plants with solar energy; finally, we have recently focused on carrying out an accurate measurement of our carbon footprint to provide us with the information necessary to reduce our carbon output."
“Chile used to be a low-cost country to extract copper, but the country’s challenges have made the industry more expensive. As a result, mining companies must invest more in technology and workers while they look for cost efficiencies elsewhere.”
Florencia Márquez Zambrano, CEO, Axinntus
Internally, Nexxo is also going forward in the utilization of technology and alternative sources of energy to reduce its carbon footprint. "We have a water footprint management policy in our matrix, which has led to positive results in optimizing water consumption. We have also achieved significant improvements in energy consumption. In addition, we have integrated renewable energy, particularly solar energy, into our facilities," Ignacio Pérez, general manager of Nexxo, commented.
Tomas Valenzuela, vice president of mining and energy at Agunsa, emphasized that although Chile possesses a solid infrastructural base and diversified energy generation matrix, the country could build upon these strengths for a more adaptable logistics industry. Valenzuela said: "There remains room for improvement in developing a robust rail network and creating cost-effective alternatives to unexpected events or calamities. Recently, major fires broke out in two of Chile's largest bulk ports, disrupting operations for mining and energy companies and highlighting the critical importance of diverse and flexible supply chains."
“Productivity is one of the biggest challenges in the Chilean mining industry today. Companies want to produce more at a minimal cost. We are working with productivity measurement platforms in the mechanical maintenance sector, for example, in the crushing area.”
Ignacio Pérez, General Manager, Nexxo
Facilitating smooth supply chains is particularly necessary to support Chile's burgeoning green hydrogen industry, which will support a greener mining industry. Valenzuela noted: "Chile's potential and advantages make green hydrogen and ammonia increasingly popular.”
However, developing these projects will require significant public and private investments in infrastructure. Hemmerdinger of APRIMIN considers infrastructure the most considerable factor inhibiting a renewable energy sector: "Our port infrastructure in the north and center of the country is good, but the port infrastructure that Magallanes needs for its green hydrogen production in the south needs to be developed. When I talk about port infrastructure, I mean the infrastructure required to receive basic supplies."
It is crucial, however, that every single hydrogen project does not come with its own infrastructure construction. Hemmerdinger explained: "We must develop shared-preference infrastructure and shared corridors. We need shared use of ports, as well, because the more that ports and other infrastructure are shared, the more sustainable the industry is."
“One of the main challenges for the ports in Mejillones and Antofagasta is to meet the efficiency requirements of mining companies.”
Jean Pierre Brunel, Commercial Manager, Odfjell Terminals
The disconnect between the quality of infrastructure in the north and the south is noticeable. It is an issue requiring the government's conscientious attention for the logistics industry to serve all areas equally.
However, primarily based in the north, the mining industry benefits from high-quality and thorough infrastructure. Chile's logistics industry is comparatively strong and adaptable; excellent infrastructure and logistics differentiate the Chilean mining industry from other competitors in the region and are a tangible demonstration of the country's long history of stability and high levels of development.
Article header image courtesy of Tecno Fast