Industries in the Spotlight
26. 02. 2025
Whether scrap, steel coils, beams or wire rod - the Steel & Energy segment moves more than 7 million tonnes of raw materials every year. An interview with RCG segment managers Stefan Hulla and Michael Reiter on the future of the industry, sustainable steel transport and the weighty arguments in favour of rail freight.
Steel connects. Not only as a material, but also as a team. Since 2022, RCG segment managers Stefan Hulla and Michael Reiter have been responsible for the diverse and challenging Steel & Energy segmentv. For this interview, RCG veteran Reiter (with RCG since 2012, including stints in Budapest and Venice) gives way to his colleague Hulla (previously 18 years at voestalpine and 3.5 years at Klöckner in Germany). All set? Let's go!
Stefan Hulla: Our transports can basically be divided into two categories: In the energy segment, we transport raw materials such as scrap, coke, coal, HBI (hot briquetted iron) and iron ore for steel production. We also transport aluminium and copper products. Steel, on the other hand, includes all the end products that leave the steelworks.
Stefan: Yes, these are also part of our portfolio. In addition to long products such as tubes, bars, various steel beams and rails, our outbound logistics also include the transport of flat products such as steel coils and slit strip.
Michael Reiter: Our portfolio also includes the transport of wire rod - a versatile material that is used in the construction industry for the manufacture of steel mats, fencing, netting and hinge systems, as well as in the automotive and mechanical engineering industries. With a large transport volume, we demonstrate not only our logistical expertise, but also the central importance of this product.
Michael: The energy segment is undoubtedly dominated by single wagonload deliveries of scrap metal, mainly from Germany, Austria, the Czech Republic, Hungary and Slovakia, which RCG transports to various steelworks in northern and central Italy.
Michael: That used to be the case. The amount of coal transported is decreasing significantly. This is partly because thermal coal is being used less and less for power generation, and coal-fired power stations are being phased out. Secondly, traditional blast furnaces are being converted to more environmentally friendly electric arc furnaces, which produce up to 70 % less CO₂ emissions and rely mainly on electricity and large quantities of scrap.
Stefan: Basically, it's like this: in addition to old scrap, we also transport new scrap and household scrap, such as metal parts from old household appliances. Before further processing, the scrap undergoes a comprehensive radioactivity check to rule out any contamination.
Stefan: A purely preventive safety check. Sometimes scrap is contaminated with radioactivity - in such cases, of course, it cannot be used for steel production.
Michael: The scrap is mainly transported in single wagonloads. In the Energy segment, this type of transport accounts for more than 60 % of the total. In addition, we are increasingly using RCG's own TransFER products and block trains for regular and ad hoc transport in order to respond flexibly to customer requirements. Our particular efficiency comes from the optimal use of wagon material, both for the delivery of raw materials and for the transhipment of finished products.
Stefan: Rail transport really comes into its own over long distances with heavy goods. Our customers benefit from the high degree of predictability and regularity of our transports.
Michael: Although trucks have some advantages in terms of flexibility, the transport capacity of the railways compensates for this disadvantage. Our trains are over 500 metres long and can carry up to 2,000 net tonnes or more, whereas a single truck typically carries around 24 tonnes. This allows our customers to make their operations simpler and more efficient.
Stefan: Although we have no direct influence on the production process in the steel mills, we make a significant contribution to the reduction of CO₂ emissions through our logistics. More and more customers are focusing on “green steel” and the circular economy to reduce their carbon footprint, especially in energy-intensive sectors such as cement, steel and glass.
Michael: We issue an environmental award to our customers on request. This is a statement of emissions that has been examined by external specialists from TÜV Süd - a crucial factor in proving that the applicable environmental targets have been met.
Michael: The diversity of our customers - for example, in markets such as Italy, Poland, Hungary and the Czech Republic, where we support more than 60 companies - underlines the breadth of our commitment. In total, we serve more than 300 clients.
Stefan: A particularly successful project was the redesign of a transport route for a customer from Moerdijk (Netherlands) to Wolfurt (Vorarlberg, Austria). Thanks to an innovative logistics concept and the conversion of the wagon type, we were able to more than double the capacity per wagon from 29 to 62 tonnes - a classic win-win scenario for everyone involved.
