ArcelorMittal aims to almost double its Ukrainian wagon fleet
The steel manufacturing company ArcelorMittal plans to add 1,200 new wagons to its Ukrainian fleet during 2021-2022. This number means that the company will increase its owned fleet by 1,5 times. The company’s goal is to make its supply chain between the production sites and customers smoother.
Specifically, ArcelorMittal is increasing its export shipments. At the same time, as Bikram Virdy, Chief Procurement Officer of the company, underlined, they are “not very satisfied with the technical condition of wagons in Ukraine”.
Consequently, a renewed and extended wagon fleet will ensure safe and efficient transportation of products to the Ukrainian ports. “We will be able to plan our logistics regardless of the situation on the rail transport market and the availability of wagons”, he added.
Investing in rail transport
ArcelorMittal keeps choosing rail for the transportation of its products. In Ukraine, rolling stock is destined for the transport of steel products and iron ore raw materials. The company uses open wagons, dump cars, flat wagons, and cisterns, among others. For the operation of trains, it works together with the Ukrainian Railways mainly.
However, the company is equally active in other countries. For instance, in Germany, it cooperates with DB Cargo to transport raw materials in Eisenhüttenstadt, one of the country’s largest steel sites. The specific cooperation is a significant investment for all parties concerned since DB cargo had to purchase 352 multi-functional double wagons and 1,408 special containers to transport ore, coke and limestone. The two companies partnered up in December 2020, and their collaboration has a 10-year timeframe.