Logistics Networks in the Steel Industry
Optimized Industry-Specific Logistics Concepts

The steel sector in Germany is undergoing a fundamental transformation. The set climate goals and the associated need to reduce greenhouse gas emissions must also be implemented in the steel industry, driving the transition of production towards green steel. In order to save greenhouse gases, the previously used coal is to be replaced by more climate-friendly hydrogen and the increased use of steel scrap in steel production. As steel is 100% recyclable without any loss of quality, nearly 44% of produced steel was obtained from steel scrap in 2019 (Fakten zur Stahlindustrie 2020, Wirtschaftsvereinigung Stahl).

The increased use of scrap poses challenges to existing logistics concepts. Many scrap dealers supply a small number of steel producers, necessitating the consolidation of steel scrap flows. The number and locations of consolidation and collection points are indicative of transport and consolidation costs.

The research projects carried out jointly with DB Cargo as part of the Research Lab Innovative Freight Wagon m² analyze the effects of the innovative m² freight wagon at various levels. To obtain a comprehensive understanding, the projects are examining the strategic planning of depots and transshipment locations and capacities, the control of containers and even the internal processes in the depots. Furthermore, a case study on the steel industry will now be conducted.

The project “Logistics Networks in the Steel Industry” aims to develop a robust logistics concept for the steel industry in the face of uncertain scrap and steel quantities, which minimizes the overall transportation costs. For this purpose, a simulation model will be created to represent the relevant processes and conditions. Through scenario building by varying parameters such as steel producers, scrap dealers, transport flows, and collection points, different logistics concepts will be developed and examined for their robustness and behavior under uncertainties to find the best possible solution.

The goal of the “Logistics Networks in the Steel Industry” project is to develop a logistics concept for rail-bound transportation of steel scrap to steel producers in Germany.

Key Data

Project Duration: Juli 2023 to December 2024

Funding: The project is supported by DB Cargo AG as part of the Research Lab Innovative Freight Wagon m².

Project lead: Aylin Altun ,Paul Bossong , Raphael Hackober and Ren Kajiyama