Newsletter September 2008 - arcelor logistics

Newsletter
Shared services — Logistics
September 2008
“Adventure” of a Back Up Roll (BUR)
History
The goal of this shipment was to help the Galati plate mill to find one of these
BUR’s, for which the usual delivery time was more than 10 years (!!!)
ArcelorMittal Purchasing (Industrial Products) in Brussels proposed to convert
an Industeel scrapped BUR for Gijon and use the Gijon GP manufacturing
slot for Galati.
Chief Editor: Hazel Dekker—Arcelor Logistics Belgium n.v., “Atlantic House”, Noorderlaan 147, 2030 Antwerp, Belgium. Tel.: +32 (0)3 30 30 600
www.arcelormittal.com/logistics
If this solution was not taken, the Galati production mill had been stopped due
to the lack of the BUR as there are very few suppliers which are able to
manufacture such size of BUR roll.
Transport
On January 11, 2007 ArcelorMittal Logistics Belgium was asked to take
charge of the transportation of a BUR, 7,54 m long, 2 m diameter and a
weight of 113,3 ton, from Charleroi (Belgium) to Gijon (Spain) for the account
of ArcelorMittal Purchasing (Industrial Products(. The transportation was
particularly complicated as no less than three customizations were required.
The transport was therefore performed in different steps, using various
transport modes.
First step (08/2007)
The first stop was Siegen in Germany, for the first customization. The leg from
Charleroi to Siegen, was bridged using a special deeploader railcar, of which
only two exist in Europe. Both belong to the German railways Deutsche Bahn.
Second step (09/2007 —> 04/2008)
Using trucks, a seagoing vessel and the facilities of the ports of Duisburg and
Goole (UK), the BUR roll arrived safely in Sheffield (UK) on September 18,
2007 for the second customization. The reverse route, on April 19, 2008 took
the cargo back to Siegen for a third and final customization.
Third step (08/2008)
The final leg, first by truck to Duisburg on August 6th, 2008 and then by ship
to the port of Gijon, delivered the roll successfully to the care of ArcelorMittal
Spain, for use in the Verina mill on August 12th.
The nature of the cargo demanded the use of specialized equipment, convoys
and various transport permits. The successful completion of such a complex
logistics undertaking underlines the added value of ArcelorMittal Logistics to
the Group.
The end result was a win-win situation for all parties.
Editors : France : Bernard Schmutz — Italy :Davide Spinelli—Belgium: Paul Vermuyten — Shanghai: Frank Ghesquiere

newsletter
Shared services — Logistics
Shipment of structural beams via
Sagunto
During the first week of September 1000 tons of structural beams
were loaded on board of the m/v “OSMAN D”, at the Sagunto
port (Mediterranean Spain) bound for Beirut (Lebanon), for
account of the ArcelorMittal Long Carbon Steel mills of Olaberria
and Madrid.
In close cooperation with the shipping mills and the long products
commercial team in Spain, ArcelorMittal Logistics coordinated the
loading operation to the full satisfaction of all parties involved.
The exceptionality of this event lies in the
fact that it has been 24 years since the last
steel long product shipment was carried
out at the port of Sagunto, prior to the
shutdown in the 80’s of the former Altos
Hornos del Mediterraneo Company.
This shipment is also a first joint-operation
between the LCSE sector (Long carbon
steel Europe) and ArcelorMittal Logistics
in Spain which hopefully will set the pace
for further cooperation and synergy
Transport of 12 casting ingot
moulds ex USA to France
ArcelorMittal Logistics Italia was contacted by ArcelorMittal –
Industeel, to
arrange a “special
transport” to their
mill in Le Creusot,
France.
The challenge,
this time, was to
organize the
transport of
twelve Casting
Ingot Moulds
weighing 27 tons
each, from
Hubbard, Ohio,
USA, to Le
Creusot. The twelve pieces were collected in Ohio around mid
June and were transferred to the port of Baltimore, where they
were loaded onto the liner vessel “MV Lapis Arrow”, destined to
the Belgian port of Zeebrugge.
Due to the mill’s summer holidays, the special convoys to
transport the 12 casting Ingot moulds from Zeebrugge to Le
Creusot could only start as of August 18 th .
Another six Casting Ingot Moulds of about 69 tons each, 3,7 m
wide, 3,6 m long and 1,7 m high will be transported shortly from
Hubbard, Ohio, USA but then with destination ArcelorMittal –
Industeel Châteauneuf (Belgium).
Then, in November, ArcelorMittal Logistics Italia, will arrange a
very special convoy for the transport of a “huge” Casting Ingot
Mold from Ostrava (Czech Republic) destined to Le Creusot Mill:
this casting will be a single piece of 112 tons of weight, 4.6 m
wide and 2.7 m high… but this is another history and it will be
surely reported in one of our next newsletters.
Fiat brings scrap to ArcelorMittal Sestao (ex ACB)
As per the mandate of ArcelorMittal Recycling, a part of the scrap produced by
the FIAT Group at the mills of Mirafiori (Turin) and Pomigliano d’Arco (Naples)
has to be transported to the melting mill of ArcelorMittal Sestao to be recycled.
Effective July, ArcelorMittal Logistics Italia has been selected as forwarder for this
ongoing business.
The first step consists of transporting scrap from the FIAT Group’s mills to the
ports of Savona and Salerno, by truck. The next step involves the unloading and
storage of the scrap at the secured facilities at the two ports. In a third phase, the
scrap is shipped by sea to the port of Sestao. Chartering of the vessels was
arranged by ArcelorMittal Shipping.
In September, ArcelorMittal Logistics Italia, in cooperation with ArcelorMittal
Logistics France, chartered the M/V “Gorky”, to transport scrap from Savona to
Sestao. On board of this lady, 3.670 tons of scrap has been transported.
For a second shipment of approximately 4200 tons of scrap from Salerno, a
second vessel will be chartered before the end of September.
Together with the scrap flows through Leghorn, ArcelorMittal Logistics Italia will
now handle an annual volume of 120.000 tons of scrap.

newsletter
Shared services — Logistics
Process & Continuous
Improvement Manager
Name: Johan Boonen
Age: 29
Nationality : Belgian
Location : AMLB – Antwerp
Job description: Process & Continuous
Improvement Manager
Johan Boonen has been working for the
Group since July 2007 at the ArcelorMittal
Logistics office in Antwerp. He started here
as Project Manager.
Q: What exactly did you do then?
I joined the Group coming from a container carrier’s logistics
branch. As such, I was not familiar with conventional cargo or our
IT system so the first few months at ArcelorMittal Logistics meant
a steep learning curve for me. I was involved in a service
improvement project for our Stainless customers which are
served by our Genk branch and an analysis of the operating
procedures of our external quay service in Antwerp. Next to that,
I initiated a number of smaller projects concerning our internal
reporting tools and the working relationship with our suppliers.
Q: Now you are Process & Continuous Improvement
Manager. Can you explain what this job means for you?
The key word is quality. Building on the international standards,
we are creating an awareness that there is always room for
improvement in our organization. We use the input from all our
stakeholders to identify areas of improvement and put action
plans in place to ensure that every opportunity to better ourselves
is fully used.
It is a challenge to convince people that self-criticism is not only
healthy but a necessity in order to keep ahead of the game, but it
is a challenge I like and fully embrace.
Q: What are your main missions?
It is my role to identify areas of improvement across our
organization and network, to challenge the existing processes
and to support management in translating the quality
requirements into procedures.
I am also responsible for internal and external audits, the
organizational KPI model and our annual customer and
employee satisfaction surveys.
Q: What are your goals in life?
I still have a long future ahead of me and do not know what my
destination will be at this point. All I can wish for is that, whatever
I find on my way, will help me in becoming a better and happier
colleague, partner, friend and father.
Q: What does it mean for you to work for an international
group like ours?
Working for ArcelorMittal has broadened my horizon. It is an
exciting idea that, thousands of miles away, very different people,
doing very different jobs, are working towards the same goals
and values. It also opens up a range of career opportunities as
our company, whilst growing every day, stretches across a
number of industries, countries and cultures. Our recent record
financial results underline that we are in an excellent shape to
face the challenging times ahead and that is a reassuring thought
as well.
Q: Is there something you’d like to add?
A better picture of myself, maybe? ☺
ArcelorMittal Logistic France
“Agency Department”
As a result of a joint TCO (Total Cost Ownership) action with
ArcelorMittal Fos during the past few months, ArcelorMittal
Logistics France will now act as sole shipping agency for all
vessels discharging or loading bulk cargoes at ArcelorMittal Fos’
private terminal, starting October 1 st .
This decision, materialized by a service agreement signed by
both ArcelorMittal Logistics France and the ArcelorMittal Fos
manager, will more than double the number of vessels served by
ArcelorMittal Logistics France, from the current annual number of
34 to approximately 90 vessels per year.
Apart from the noteworthy collaboration between ArcelorMittal
Logistics France, the TCO team and ArcelorMittal Fos iron ore/
coal department.
Let us hope that what is happening in Fos will extend to other
ArcelorMittal sites so that a
more advantage will be
derived from the proven
professionalism of all
ArcelorMittal Logistics agency
services.
Next month we’ll have an
article about the activities of
the TCO team in Fos.
Voices from the world of Logistics
Ukraine
Our colleagues from ArcelorMittal Kryviy Rih in Ukraine were
recently provided with an urgent request to produce and ship a
bell rod for commissioning in a blast furnace at the Zenica Plant.
Since it was a time bound project, the rod, 16 meters long and 3
tons heavy, was produced and made ready within a week’s time
and then sent by a chartered aircraft to the Zenica Plant.
The whole process was completed within three weeks (including
production time).
It was a new, successful experience for the Arcelor Mittal Kryviy
Rih shipping team.
Congratulations to the Kryviy Rih team for handling this urgent
request in such a smooth way!

newsletter
Shared services — Logistics
Deep sea and short sea freight trends
Evolution FIOS rates in major trade routes
USD / mton
140
120
100
80
60
40
20
0
Average 2002
Average 2003
Average 2004
Average 2005
Average 2006
Average 2007
In August most all the spot rates went down.
28-jul-06
25-aug-06
29-sep-06
27-okt-06
24-nov-06
21-dec-06
26-jan-07
23-feb-07
30-mrt-07
27-apr-07
25-mei-07
29-jun-07
27-jul-07
31-aug-07
28-sep-07
02-nov-07
30-nov-07
21-dec-07
01-feb-08
29-feb-08
28-mrt-08
25-apr-08
30-mei-08
27-jun-08
31-jul-08
28-aug-08
The lower market results in several ships looking for cargo, but especially in August we noticed that the limited flexibility of ports and
lay time requirement of shippers, did not allow us to benefit at best of the downwards trend.
350
N.EUROPE/USA EC EUROPE / FAR EAST FAR EAST / EUROPE
Evolution Short Sea Freightrates
( 2002 = index 100)
300
250
200
150
100
50
0
Average 2002
Average 2003
Average 2004
Average 2005
Average 2006
Average 2007
jul/06
aug/06
sep/06
oct/06
nov/06
dec/06
jan/07
feb/07
mar/07
apr/07
may/07
jun/07
jul/07
aug/07
sep/07
okt/07
nov/07
dec/07
jan/08
feb/08
mrt/08
apr/08
May 08
jun/08
jul/08
aug/08
Continent - N. Spain French Bay - EC UK Continent - W. Med W. Med - Continent
In the meantime the downward trend continues, but more and more concern rises about port capacity.
Within a couple of weeks the summer time is over and we can expect prices to pick up again once storms and winds will slow down
the vessels.