External logistics in ArcelorMittal Gent

May 12 - 2009 David De Rocker

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Agenda

• General logistic view on the site AM Gent

• Inbound (raw material) flows

• Outbound steel flows

• Specific project examples

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kolenpark

nevenproducten

mengbed

sinterfabrieken

opleiding

veiligheid

cont. giet.1

cont. giet.2

plakkenpark

warmband

centr. magazijn

centr. werkpl.centr. werkplaats

bur. COO

bur. HOO-STL

COKESFABRIEK

WARMWALSERIJ

kanaal Gent - Terneuzen

kaai

milieuprv

post 150 kV

beitserij

TTS

bur. KWA

bur. WWA

knipbanen

verzending

administratiegebouw

OCAS

KOUDWALSERIJ

J. Kennedylaan

toeslagpark

GRONDSTOFFEN

HOOGOVENS

stapelgloeierij

continu-gloeierijGaltec

ertspark

Tailor Steel

STAALFABRIEK

DecoSteel

hardingswalserijenSidgal2

Sidgal3

RBV

Arcelor Gent: maritime integrated steel company

WarehouseRail & roadconnection

Outbound quay

Inboundquay

Railwayconnection

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Raw material storageRaw material storage

Coking plantCoking plant

Sinter plantsSinter plants

Steel shopSteel shopHot strip millHot strip mill

Cold rolling mill,coating and blanks

Cold rolling mill,coating and blanks

Blast furnacesBlast furnaces

Maritime integrated steelworksMaritime integrated steelworks

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Chartered volumes all modes 2008

• Incoming flows oriented towards maritime and inland waterways• Outbound flows have more balanced modal split

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External Transport organizationwithin AM Gent

AM Shipping Purchasing Land

Logistics

AM Sourcing

AM Gent Internal

Transport and harbour

AM Gent Raw material

users

AM Gent Customer

service

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Agenda

• General logistic view on the site AM Gent

• Inbound (raw material) flows

• Outbound steel flows

• Specific project examples

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Seaborne cargo traffic 2008 Loading ports iron ore, coal & coke

Robert’s Bank

Mobile Hampton roads

Nouadhibou

Puerto Ordaz

Punta de Madeira

Tubarao

Ilha Guaiba

Mormugao

Hay PointDalrymple Bay

GladstoneNueva Palmira

Saldanha Bay

Richard’s Bay

Long Beach

Port Kembla

Narvik

Port Cartier

ORIGINE VOLUME (MT)Hampton Roads 65.821

Ilha Guaiba 1.478.724Itaguai 330.296Mobile 70.740

Nouadhibou 431.633PDM 1.649.330

Point Ubu 148.222Port Cartier 136.893

Puerto Ordaz 714.114Quebec 209.807

Saldanha Bay 117.203Tubarao 1.095.484TOTAL 6.448.267

ORE SHIPMENTS 2008

ORIGINE VOLUME (MT)Fos 19.817

Szczecin 43.604TOTAL 63.421

COKE SHIPMENTS 2008

ORIGINE VOLUME (MT)Dalrymple Bay 705.823

Fos 21.019Gladstone 596.632

Hampton Roads 563.211Hay Point 214.325

H.Point+Glad. 92.158Maracaibo 48.521

Mobile 139.676Murmansk 107.338Pittsburgh 55.570

Port Kembla 49.011Puerta Bolivar 71.315Richards Bay 72.092

Xingang 163.519TOTAL 2.900.211

COAL SHIPMENTS 2008

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Canal Gent-Terneuzen: accessible for PANAMAX vessels(Dead weight capacity ≤ 85 000 t)Test phase for Post-PANAMAX vessels up to 93.000 DWT

Max. dimensions: length: 265 mwidth: 34 mdraught: 12,5 m

ArcelorMittal Gent quay:– Length: 1 050 m– Max draught: 13,5 m– Max DWT: 65 000 t

Canal Gent-Terneuzen: accessible for PANAMAX vessels(Dead weight capacity ≤ 85 000 t)Test phase for Post-PANAMAX vessels up to 93.000 DWT

Max. dimensions: length: 265 mwidth: 34 mdraught: 12,5 m

ArcelorMittal Gent quay:– Length: 1 050 m– Max draught: 13,5 m– Max DWT: 65 000 t

TOTAL INBOUND TOTAL OUTBOUND TOTAL INBOUND TOTAL OUTBOUND

TOTAL MARITIME TRAFFIC 27.0 Mt/yr (sea going vessels)ArcelorMittal Gent 8.9 Mt/yr (= 33 % of total sea traffic in volume)

TOTAL MARITIME TRAFFIC 27.0 Mt/yr (sea going vessels)ArcelorMittal Gent 8.9 Mt/yr (= 33 % of total sea traffic in volume)

7,2 Mt/yr7,2 Mt/yr 1,7 Mt/yr1,7 Mt/yr

OtherOther

21.2 Mt/yr21.2 Mt/yr

OtherOther

5.8 Mt/yr5.8 Mt/yr

Largest shipper Gent Sea Port 2008Largest shipper Gent Sea Port 2008

ArcelorMittal GentArcelorMittal Gent ArcelorMittal GentArcelorMittal Gent

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Lightening at Terneuzen Roads

Average draught in Terneuzen Roads: 14.0 m

Lightening to a draught of 12.5 m( = direct transshipment from Pamanax into barge)

Average lightened tonnage per vessel: 10000 à 14000 t(max. 3000 t per barge � 4 à 5 barges per vessel)

Year volume: about 1,04 million ton (coal and ore)

Average draught in Terneuzen Roads: 14.0 m

Lightening to a draught of 12.5 m( = direct transshipment from Pamanax into barge)

Average lightened tonnage per vessel: 10000 à 14000 t(max. 3000 t per barge � 4 à 5 barges per vessel)

Year volume: about 1,04 million ton (coal and ore)

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Bremen

Gent

Dunkerque

Teesside

Port Talbot

Immingham

Ijmuiden

Fos-sur-Mer

Taranto

Gijon

0 50.000 100.000 150.000 200.000 250.000

Max. capacity of dry bulk vessel per port

Port of import

Panamax or smallerCapacity(in ton) Capesize

Source: Policy Research Corporation

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Post Panamax Post Panamax M/V ALAM PERMAIM/V ALAM PERMAI

•First Post-Panamax vessel in Port of Ghent (M/V Alam Permai, 20/11/08)•83.4 kton ore from Brasil•Extra cargo capacity of 10 to 20 kton compared to regular Panamax•P-PMX vessels increase the competitiveness of AM Gent towards other Maritime mills due to decrease in transport costs.•The first two tests were positive, after third positive test the authorities will give final approval.

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AM Gent bulk Quay side

• AM Gent bulk quay in own hands:

– Total length of Bulk quay: 650 m

– 2 gantry cranes (32 ton)

– 1 Jib-crane: hoisting capacity 12 ton

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Lalosika – harbour planning tool

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Conveyor belts and stackers / reclaimers to get raw materials into stock yards

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Overview of raw material stock yards

� connected by conveyor belt� stacker / reclaimers

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Agenda

• General logistic view on the site AM Gent

• Inbound (raw material) flows

• Outbound steel flows

• Specific project examples

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Chartered outbound steel shipments by AM Gent - 2008

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Steel terminal Infrastructure

• 3 Harbour Cranes : 2 Double boom crane and 1 Gottwald crance• 3 x 450 m tracks under crane reach, 6 x 180 m stock tracks alongside• 180 internal wagons for coil transport and intermediate storage• Variety of spreaders, beams, slings, …

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Seaborne cargo traffic 2008Outbound steel products flow

• Total number of vessels loaded in 2008 equals 382

• Size varies between 1500 Ton and 25.000 Ton

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Inland waterways

• Total number of barges loaded in 2008 amount to 558

• Barge size varies from 300 Ton up to 3000 Ton

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Geographical locationof ArcelorMittal Gent and link to its inland

water customers

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Rail transport – internal shunting yard linked to electronic follow-up tools on site

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Outbound rail flows

• Dedicated railway cars

• Mix of company trains and Single wagons– ‘double’ traction train to downstream

EGL in Genk– Multi-client trains to Germany and

France

– Single wagons to others

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Outbound Road transport – connected to the European highway netwerk

Gent in Europa

Gent

E17 E40

2 days

1 day

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Truck loading automation

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Specific material for safety reasons

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Agenda

• General logistic view on the site AM Gent

• Inbound (raw material) flows

• Outbound steel flows

• Specific project examples

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ArcelorMittal Gent / Lorraine���� terminal DFDS Gent

Covered transshipment Gent

Sea transport on cassettevia DFDS Tor Line ships Gent –Göteborg

By ecocombi to customer

Covered transshipment Göteborg

Maritime route via DFDS Tor Line

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Flow consolidation to the UK

• Current strategy UK:– 5 different mills delivering to

6 different ports for serving 5 customer regions in UK.

– Gent as hub for inland mills– Co-ordination between the

mills and further relocation of product specifications.

Seaham

Hull

GunnesImmingham

Boston

P.Sutton bridge

Northfleet

Poole

Newport

Nissan

ManchesterLiverpool

W-Midlands

BMW

London Atlantique scope

Bremen

Gent

Liege

Aviles

• Past situation UK:– 5 different mills delivering to 9

different ports for serving 5 customer regions in UK.

– No Co-ordination– Competition between the mills

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Steel shipments to Italy – multimodalsolution since 30 years

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Containers for steel export

AM GENT

STUFFING

WAREHOUSE

STUFFING

WAREHOUSE

TERMINALS

TERMINALS

Old route FOB Antwerp

New route FOB Stuffed Antwerp

ANTWERP

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Thank you for your attention