Iron Ore Imports Logistics Integration Of The Yangtze River Basin Study

Iron & steel industry is a fundamental industry of Chinese, and the important resource of its is iron ore. So, stable, high efficient and economical supply chain of iron ore is a key to secure our country's economy and to keep steel industry sustainable development. In recent years, the demand of iron ore in china and abroad increased dramatically, and the price of iron ore jumped, accordingly steel enterprises suffer affliction for insufficient resource and high cost as well. Iron ore is a kind of low-price resource, and its logistics cost account for a big part in the entire cost. With costly logistics fee, steel mill can not digest it by improving logistics management and technics, and impute it to downriver company. Thus it not only weakens the competition capacity of enterprises, but impacts the health, fast and harmony development of Chinese economy.At present, the logistics of iron ore is operated by steel enterprises respectively in the iron ore logistics system. In order to cut down the cost and pursue economy of scale, every enterprise chartered big vessels to transport a great deal of iron ore when ordering. However, the massive stock occurred because it far more overpast the demand of steel enterprises' throughput. Next, the volumes stock bring on abundant cost of stockpile, since it can not be distributed in time due to limited capacity of transportation. Furthermore, there is a big pressure to railway authority to distribute the iron ore. It can be concluded that the main reason of high cost to iron ore logistics in our country is the mode that logistics is operated by steel enterprises respectively.This dissertation study the integrated logistics of the steel enterprises near yangtse river in strategy alliance thinking by researching logistics pattern of baosteel, wusteel, masteel and shasteel respectively. Assuming one logistics management committee was constructed by the four steel enterprises. The logistics center under the committee is responsible for the whole logistics management through modern concept of logistics management, decreasing the total stockpile quantity at all ports by cooperating with each other, distributing by planning and optimizing logistics system. The object to complete this paper is to find one practical method that can be used in optimizing logtistics and helping Chinese steel enterprises to decrease cost.