Corus yesterday announced the start of a seven-year partnership with logistics company TDG to improve the steel group's transport services.

It is intended that hauliers working for Corus will be contracted and managed by TDG in what is believed to be one of the largest arrangements of its kind in UK road transport.

Corus, which employs about 3,000 people in the North-East, sends 1,500 loads by road each day from 40 UK sites. It is has been estimated that the deal with TDG will mean one million fewer lorry miles a year.

That reduction would save about 500,000 litres of fuel and lead to fall in the levels of carbon dioxide and nitrogen oxide emissions.

TDG will base its operations at Corus' Scunthorpe site.

The company will use technology that enables hauliers, Corus and its customers to track deliveries on the Internet.

TDG, which operates in the chemicals, consumer goods, industrial and retail sectors, earns more than £500m a year from work in six European countries.

Turnover resulting from the Corus partnership is expected to be £25m this year and more than twice that be the end of next year.