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Source: Dunaferr hetilap 16.11.2012

Capesize vessels with cargo for the Ironworks

On October 13, 2012 a type of vessel that last berthed in Bakar, Croatia twenty years ago arrived at the port of Bakar. 165,000 tons of pellet (iron ore concentrate) was shipped by Cape Veni from Brazil for ISD DUNAFERR Zrt. The difficult and spectacular shipping manoeuvre was accompanied by high media coverage. This business is a success story for both the purchasing and logistic departments of ISD DUNAFERR Zrt. for raw material of premium quality has been supplied to the company at a very favourable price, with flexible terms of storage and payment.

Vaso Janicic, Director of Logistics of ISD DUNAFERR Zrt., Managing Director of ISD Portolan Kft. was also present when the vessel arrived at the port; for him as a specialist who had worked as a captain for a long time it was definitely a great experience to monitor the process of shipment.

- ISD DUNAFERR Zrt. has been purchasing pellet (an important base material of hot steel production), among others, from Sweden so far. However, the company has recently decided not to give preference to Swedish base material any more; Brazil has been chosen as a new source of purchase. Bearing in mind the general policy of cutting costs at the company, the Purchasing department aimed to negotiate conditions as favourable as possible. In the case of this shipment the goal was realized: the material is of premium quality and a free storage period of 75 days was agreed with the port management. The terms of payment are also favourable: the price of the consignment can be paid in instalments in proportion to the quantities actually delivered rather than in one lump sum. From the point of view of the quality of finished products, the parameters of the base materials are of crucial importance for DUNAFERR. All in all, in the case of this consignment material of premium quality was purchased at a favourable price.

- What are the parameters of this special vessel?

- Cape Veni is a so-called Capesize vessel: DWAT (capacity) 175,000 tons, length 289 meters, width 45 meters. Draught is 17.5 meters with full load, which did cause some concerns for the experts in the Croatian port; actually, the sea bed in Bakar Bay is just a little deeper than this. Even the specialists of Duferco, the company participating in this business as a strategic partner, were rather sceptical about shipping but at the end, after a 2-hour long manoeuvre, the vessel was berthed with no problem at all.

- The manoeuvre was watched by a large number of people on the quay...

- Yes, a special protocol was organized by the Croatian specialists for this unique event. The berthing was attended, among others, by key players of the Croatian media, by the Deputy Minister of Transport, by the CEO and each board member of the state-run Port of Rijeka and by the CEO and several board members of railway company HZ Cargo. On behalf of ISD Dunaferr the event was also attended by CEO Evgeny Tankhilevich and by Imre Püski. We were all watching the spectacular events on the quay with great interest.

- Can you tell us something about the further carriage of this consignment?

- During the 75-day storage period the pellets will be delivered to Dunaújváros by rail. Carriage between Bakar and Dunaújváros on the whole is organized by ISD PORTOLAN Kft. From Bakar to the Hungarian border we will be cooperating with HZ, our forwarding partner in Croatia whilst further carriage in Hungary will be provided by Rail Cargo Hungária, our partner in Hungary. Since rail carriage in certain areas of the route was suspended due to railway track maintenance for quite some time, traffic continues to be quite intense today too. Every day three block trains (1,400 tons of pellets each) will be arriving at the plant in Dunaújváros. Already now, pig iron is produced at ISD Dunaferr with the use of Brazil pellets. How long this quantity of base material will be sufficient for production, largely depends on the owner's decision about the further operation of the blast furnace plant. If one of the blast furnaces is shut down as per the original schedule in the preliminary plans and only one furnace continues to operate, then this quantity will be enough to cover the needs of the Ironworks until March 2013.

- At the end of November another Capesize vessel is scheduled to arrive at Bakar...

- Yes, that's true. A vessel with similar parameters with an iron ore consignment from South Africa for ISD Dunaferr is expected to arrive on 26 November. Berthing will be an event of the same importance as the one in October. In the future, apart from this, two more vessels of the same category are also likely to arrive, most possibly in the first quarter of 2013.


ISD PORTOLAN Kft.   Address: H-1139 Budapest, Frangepán utca 7.
Phone: +36 1 465 6150, Fax: +36 1 465 6199   Correspondence: H-1558 Budapest 139, Pf.:164.