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Forrás: Supply Chain Monitor October 2008

Coordinated logistics

Comprehensive logistics
Internal railway and road transport between the production plants of the Company Group is provided by the Transport Plant. The basic activity of the Transport Plant, established in 1952 and modernized on a continuous base, is the railway transportation of base materials for the blast furnaces, of materials/products/semi-finished products for the different production plants, as well as of the finished products from/to Dunaújváros Railway Station. On a yearly basis, cca. 11 million tons are carried by the Transport Plant. On the territory of the Company Group there are 70 km railway siding, 14 Diesel locomotives, 400 railway wagons, high-capacity forklifts, loaders and other means of transportation and loading at our disposal. All means of transportation and loading are regularly maintained and repaired in the factory repair shop. The import of base materials and the export of finished products are arranged by ISD Portolan Ltd. Established in 1992, Portolan Ltd. was acquired 100% by ISD Dunaferr Zrt. in 2005. Several logistical companies (e.g. Dunaferr Port Ltd.) have since been merged into the company, which has been completely re-organized by the new management. Today ISD Portolan Ltd. employs more than 100 people.
We organize and co-ordinate the transportation of base materials arriving from Europe or overseas and of finished products produced in the factory by road, rail and river/sea. At ISD Portolan Ltd. we have special teams for the different modes of transportation as well as for the different domestic/export relations, says Managing Director Vaso Janicic, who is also Manager of Logistics at ISD Dunaferr Zrt.
The two most important base materials necessary for ISD Dunaferr products are iron ore and coal. In order to meet the requirements of the factory (production of finished products: steel coils and steel plates), annually as much as 2 million tons of iron ore, 1.5 million tons of coal and 500,000 tons of other base materials must be carried to the factory. With a view to the different types of products in the range of finished products produced by the factory, base materials of different qualities are purchased (iron ore basically from Brasil, Ukraine, Russia and Sweden, coal basically from Russia, Poland, Ukraine and the US). Base materials are imported by sea/river as well as by rail. Base materials from Russia and Ukraine (appr. 1.8 million tons per year) are carried to Dunaújváros via Záhony by rail. Iron ore and coal from overseas (over 500.000 tons, in which iron ore typically arriving from Brazil) are shipped to Dunaújváros via Port Constanta on the Danube. Some of the coal is also shipped via Rotterdam.
Shipment by river incl. the provision of suitable river units is done by contracted shipping companies such as Mahart Duna Cargo, Fluvius etc. under annual Contracts. Iron ore from Sweden (appr. 400,000 tons per year) is shipped in 60,000 - 80,000 t Panamax ships to Port Bakar, where it is transshipped into railway wagons and forwarded to Dunaújváros. In addition to iron ore, annually 560,000 tons of coal are also forwarded via Port Bakar to the factory in Dunaújváros.

Special means of transport
The finished products of the factory (steel coils and steel plates) are carried to customers in Hungary by road, to customers abroad by road (50%), by rail (30%) and by water (20%). Base materials are imported and finished products are carried by our sub-contractor carriers on a continuous base.
Some 100-150 trucks are dispatched in the factory every day. Road haulage in special trucks with cradles specially designed for the carriage of steel coils is done by 48 sub-contractors such as Raabersped, Waberers, TomTrans, Rudolf Logistics etc. Sub-contractors are contracted in annual contracts, with prices and other terms re-negotiated every year. Only sub-contractors with a pool of minimum 50 trucks can be long-term contractual partners of ISD Dunaferr. Depending on the actual service to be performed and on the quoted prices, however, one-off orders can also be placed with Contractors with less capacities. Carriage as per schedule this is priority number one we expect from our sub-contracting carriers. They must provide trucks at the designated factory gates in a previously set from - to period, which is defined by the factory 48 hours before actual carriage.
After loading has been completed, trucks leave for their destinations with completed documentation. Carriers must be able to provide continuous information on the exact positions of the trucks. As soon as a consignment has been delivered, the related consignment note is faxed to ISD Portolan Ltd. Finally, the original documents are returned within seven days at the latest. As a rule, 30-40% of the finished products dispatched for destinations typically within 600 km from Dunaújváros are carried in block trains. Steel coils are normally transported in Shimms wagons designed for the transportation of coils (with cradles inside) whilst steel plates are normally transported in Tams wagons designed for the transportation of plates (with roofs opening at the top of the wagon). On a monthly basis, finished products are loaded into 800-900 wagons dispatched in cca. 20 block trains from the factory. Wagons in block trains with destinations in Europe are typically provided by MÁV Cargo. There are 120 Shimms wagons designated for the transportation of Dunaferr products, these are normally used for destinations in Poland. Regarding products dispatched for Italian end-users and for the Logistical Centre in San Stino, they are transported in Shimms wagons owned by ÖBB and provided by Raabersped from Austria. (100-120 wagons per month.) Such consignments are carried by Raabersped in block trains consisting of 17-18 wagons via Austria to different destinations in Italy. As far as export to Italy is concerned, a complete logistical project has been developed for this purpose. This includes a/ providing the number and type of wagons required by production and sales, b/ advance notification and then efficious and smooth running of the block trains involved in the carriage and c/ (partial) distribution from a logistical centre in Italy. Within the framework of this Italian project some 65,000 - 70,000 tons of steel coils are carried to ISD Dunaferr Zrt. customers every year, in appr. 1,300 Shimms wagons making up 80 block trains.
We are most content with our nearly two-year-long co-operation with Raabersped. They perform flexible and faultless services. We notify them on the expected number of required wagons one month in advance and we need to notify them on the final actual number only one week before block trains are actually formed, says Vaso Janicic. At the beginning of this year a Contract of Lease was added to our co-operation. Under this Lease Contract, 123 Shimms wagons with the ISD Dunaferr logo are provided by the Austrian company for export markets other than Italy. We were able to conclude this Contract thanks to our successful co-operation in the carriage of consignments to destinations in Italy.
On a monthly average, appr. 30,000 tons of finished products are shipped in barges and self-propelled vessels, in the first place, to the Benelux countries, Austria and Germany.

Szilvia Jaubert
Supply Chain Monitor



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.