voestalpine shifts goods flows from the Danube increasingly to rail

That the shift brings enormous short-term requirements was made clear by Herbert Eibensteiner in a statement. Because everyone is currently switching to rail, it is a logistical challenge, said the CEO. The high demand for rail transports is leading to bottlenecks in the available rail capacities.

Logserv as the logistics subsidiary

voestalpine is one of the largest industrial groups in Austria. The company operates one of Europe's largest steel plants in Linz and is also active in the field of tool steel and special steel through the Böhler brand. Production requires large quantities of iron ore and coal, which are predominantly delivered via the Danube.

When the water level of the Danube falls, as has been repeatedly observed in recent summers, cargo ships can no longer transport the quantities intended for voestalpine in full. The company must then switch to other modes of transport at short notice.

Impacts on supply chains

The shift to rail is a proven means of compensating for bottlenecks on the waterway. However, capacities in rail freight transport are limited, and many industrial companies in Austria and along the Danube are simultaneously competing for the few available capacities. This competitive situation exacerbates the logistical difficulties.

voestalpine has been closely observing the water levels of the Danube for years and has taken precautions for low water in its logistics planning. Nevertheless, the current case showed that even a well-prepared company must respond to unexpected bottlenecks.

In addition to the Danube, rail transport also plays an important role for voestalpine. Large quantities of steel products are exported via the Linz area to various European markets as well as to the USA. A functioning logistics chain is therefore of strategic importance for the group.

Importance for exports

By shifting to rail, voestalpine is securing its supply chains in the short term. In the medium and long term, the company plans to further diversify its logistics and reduce its dependence on individual modes of transport.

Logserv works closely with the Austrian railway companies to organize additional capacities. This includes, among other things, the coordination of special trains and the use of alternative routes.

Overall, the case shows how vulnerable industrial supply chains are to weather extremes and fluctuating water levels. voestalpine sees the current situation as a confirmation of its strategy of placing logistics on several pillars.