Tata Steel will make an investment of Rs 5,000 crore and chalk out a plan to lower its logistics cost in a phased manner. The immediate plan is to own eight to nine rail rakes. This will be done in the next one year through Tata Martrade International Logistics (TMILL). TMILL is a joint venture of Tata Steel, NYK Holding (Europe), and Germany-based IQ Martrade Holding und Managementgesellschaft. Of the total cost of Rs 70,000 per annum that the company incurs, Tata Steel’s logistics cost comprises 15 per cent. Apart from owning rakes via the arm, the company will be building slurry pipelines from its mining locations to its steel plants to carry the raw material. JSW Steel is also constructing Rs 2,100 crore slurry pipeline project to transport iron ore and coal at competitive prices in Karnataka. On the port front, Tata Steel has a detailed plan in place, where it is looking to build a greenfield port on the Subarnarekha river in Odisha, make use of its off-take agreement at Dhamra, and also invest in building a berth at the state-owned Paradip Port.