Building a future-ready steel supply chain

By Admin

04 Aug, 2025

As India accelerates towards self-reliance under the Atmanirbhar Bharat initiative, the steel sector is stepping up to meet the nation’s infrastructure and industrial ambitions. Among the frontrunners, Steel Authority of India Limited (SAIL) has embarked on a strategic transformation to strengthen its supply chain and logistics framework. In an exclusive interaction with Maritime Gateway, Subhash Kr. Das, Executive Director (L&I), SAIL, shared key insights into how the steel giant is overcoming challenges and creating a resilient, future-ready logistics ecosystem.

Strategic Shift and Domestic Growth

FY 2024–25 marked a turning point for SAIL. The company recorded all-time high domestic dispatches, despite a volatile global trade environment. This growth was fueled by:

• Government-backed policy interventions like safeguard duties
  
  

• Massive push in infrastructure via PM Gati-Shakti
  
  

• Rising demand from the automotive and engineering sectors
  
  

• A strong focus on cost optimization and product mix
  
  

However, global exports were impacted by protectionist policies in the US and EU, signaling the need for deeper supply chain diversification and agility.

Rail: A Double-Edged Sword

SAIL’s logistics backbone remains the Indian Railways, with the company boasting one of the highest rail coefficients in the industry. But this dependency has a downside:

• Congestion in key eastern corridors like Chakradharpur
  
  

• Shortage of pilots and specialized wagons
  
  

• Limited use of real-time AI-based logistics tracking
  
  

• Semi-mechanized port infrastructure in the East leading to inefficiencies
  
  

These challenges elevate logistics costs and threaten to slow delivery timelines pushing SAIL to explore alternatives.

Rising Role of Containerisation

Traditionally reliant on bulk movement, SAIL is steadily adopting containerised cargo especially for sensitive or high-value goods. In FY 2024–25, the company handled 269 import containers, a jump from 242 the year prior.

Containerisation is now seen as a strategic enabler for:

• Handling over-dimensional cargo (ODC), as proven via the Haldia-Rourkela success
  
  

• Expanding exports to Southeast Asia
  
  

• Importing critical materials like calcined lime
  
  

• Integrating with upcoming Multimodal Logistics Parks (MMLPs)
  
  

As trade patterns shift globally, container logistics will offer SAIL resilience, agility, and better control.

SAIL’s Three-Pronged Strategy

To build a competitive steel logistics ecosystem, SAIL is investing in:

1. Multimodal Diversification

• Slurry pipeline feasibility studies by MECON to move iron ore from mines to plants
  
  

• Evaluation of inland waterways like National Waterways 2 & 16 for NE India outreach
  
  

2. Infrastructure Partnerships

• Deep-draft port tie-ups; a Cape-size vessel call at Paradip marked a milestone
  
  

• Joint rail initiatives including Banspani-Jakhapura Tripling and Padapahar-Sini-Kandra Quadrupling
  
  

3. Digital Overhaul

• SAP S4 HANA deployment for pan-India ERP unification
  
  

• Collaboration with McKinsey & Company on digital use-cases in logistics
  
  

• Formation of a vertical dedicated to automation, AI, and predictive analytics
  
  

Unlocking Ecosystem-Wide Efficiency

Despite reforms like the National Logistics Policy (NLP), SAIL’s operations face structural bottlenecks:

• Rail congestion, especially in the raw material-rich eastern belt
  
  

• Port-side inefficiencies, including pre-berthing delays and weak last-mile connectivity
  
  

To truly optimize logistics, SAIL recommends:

• Synchronized rail modernization with balanced wagon, locomotive, and track augmentation
  
  

• Policy support for slurry pipeline development along road/rail corridors
  
  

• Redesign of wagons for quick handling and multipurpose use
  
  

• Shipbuilding incentives to increase Indian-flagged vessels and boost national steel demand
  
  

A Blueprint for India’s Steel Future

SAIL’s proactive logistics roadmap not only enhances its operational resilience but also sets a benchmark for India’s steel sector. Through multimodal integration, infrastructure investment, and digital transformation, the company is laying the foundation for a globally competitive, sustainable, and future-ready supply chain.

As India ramps up its steel-intensive growth, SAIL is more than ready to lead from the front delivering strength to the nation, one shipment at a time.