Valin Steel Iron Ore Waterway Transportation Management Optimization

Due to the lack of iron ore resources in China, also the ore grade is low anddifficult mining, most iron and steel enterprises import more than80%of iron orefrom abroad. Valin steel imports iron ore mainly from Australia and Brazil, importiron ore shipping by sea to the south port of China and the Yangtze river, thentransport to the steel factory by rail and by water respectively. Valin steel is locatedin the inland, the logistics cost is even higher than the average, logistics cost accountfor more than50%in the iron ore purchasing cost. High logistics costs andovercapacity, valin iron steel is facing huge cost pressure, and greatly weaken itscompetitiveness.In this paper, by using the theory of modern logistics, The author make a studyof waterway transport management optimization of valin steel, and carries on theanalysis and research of the shipping line, cost and internal control, found that thereis a big space can be optimized to reduce the cost. Combined with the actual situationof valin steel, the author design an optimization scheme and specific measures foriron ore water transportation management. First, strengthening internal control andoverall planning to optimize the internal water transportation management. Second,integrate Valin’s existing transportation resources and establish water logisticstransportation network. Third, adjust the distribution of import iron ore port ofdischarge to optimize the iron ore shipping route and reduce the transportation cost.Fourth, find the best combination mode of transportation to optimize iron ore watertransportation cost.Valin steel can annually reduce225million yuan logistics costs throughoptimizing waterway transportation management, if all in the waterwaytransportation, it can annually reduce394million yuan transportation costs. As thenavigation condition of Yangtze river and Xiang river channel is improved,large-scale cargo ship will be more economy, and the future railway cost will beconstantly increased, waterway transportation will make sense. This paper can alsobe reference for other iron and steel enterprise located in the inland who wants toimprove its own waterway transport management.