GSCM: 1004 - GLOBAL PROCUREMENT

STRATEGIES

IRON ORE - POLAND

Group members
Jashpreet kaur
Dharani Gonuguntla
Simran Khokhar
Manpreet Kaur Chahal
Karanvir Singh
Buyer: Algoma Steels.
Overview: Algoma Steel is a Canadian steel producer based in Sault Ste. Marie. It was formed in
1901 and is one of North America's leading steel producers. Algoma Steel manufactures hot and
cold rolled steel products such as sheet and plate steel, with an emphasis on sustainability and
environmental stewardship.
Why this buyer is right choice?

• Iron is the primary raw material used to produce steel, which is the main product of Algoma Steel.
The iron is melted down in a blast furnace and then combined with other materials to create steel
products. Without iron, Algoma Steel would not be able to produce steel.
• Strong Demand for Raw Materials: As Canada's biggest steel producer, Algoma Steel has a steady and
significant demand for high-quality raw materials such as iron ore to support its steel manufacturing
operations.
• Algoma Steel is known for creating high-quality steel products that fulfill stringent industry
standards. By sourcing iron ore from Poland, the company will be able to preserve its reputation for
excellence and supply high-quality products to its clients.
• Supply Chain Diversification: By importing iron ore from Poland, Algoma Steel would be able to
diversify its supply chain, decreasing reliance on a single source and assuring a more reliable and
Seller: Polska Grupa Gornicza Sp. z o.o.
Polska Grupa Gornicza Sp. z o.o. is an enterprise in Poland, with the main office in Katowice. It
operates in the Coal Mining industry. The company was established on February 18, 2015. Polska
Grupa Gornicza Sp. z o.o. is taken as a seller company of iron core to export from Poland to Canada.
Why we choose this seller:
The main reason behind choosing the company is it have large numbers of natural resources to
expoiting, but it exports the natural minerals such as iron, copper and aluminium worldwide
Good Choice for Suppying for iron ore: -
1. Experience and Expertise
2. Reliable Supply
3. Quality
4. Control Flexibility and
5. Customization
6. Environmental and Ethical Considerations
7. Competitive Pricing
Quantity and Rate
The price of iron ore can be highly volatile and is subject to various market factors such as supply
and demand dynamics, global economic conditions, and geopolitical events.
The Exporting price of iron ore by Polska Grupa Gornicza Sp. z o.o. is 127 USD per metric ton.
The quantity of iron core is transported is around 100 Metric ton.
Suppliers used to ship the product from seller to buyer:

● Baltic Shipping Lines: A well-known shipping business that focuses on offering ocean freight
services is Baltic Shipping Lines. They provide dependable and effective transportation options
for a variety of commodities, including iron ore, owing to their extensive global presence and
well-kept vessel fleet. The shipping of the iron ore from the Polish port of Gdansk, where Polska
Grupa Gornicza Sp. z o.o. is situated, to the port of Quebec, will be handled by Baltic Shipping
Lines.
● Canadian Rail Cargo Services: A significant rail transportation business with headquarters in
Canada is called Canadian Rail Cargo Services. They manage a huge network of rail lines and
have a wealth of freight logistics experience, assuring smooth inland shipping. In order to
ensure effective delivery of commodities from the port to the steel factory, Canadian Rail Cargo
Services will oversee the carriage of the iron ore from the port of Quebec to the Algoma Steels.
 Suppliers used to ship the product from seller to buyer:
● Global Customs Services Ltd: A reliable customs clearance company with experience managing customs
clearing procedures is Global Customs Solutions Ltd. Because of their in-depth understanding of import
and export laws; they can guarantee that all standards are satisfied. When the iron ore shipment arrives
in Canada, Global Customs Solutions Ltd. will oversee the customs clearance procedure to ensure a
seamless entry into the nation.
The reliability, industry standing, and capacity to manage the transportation and customs clearance
requirements for the iron ore shipment from Polska Grupa Gornicza Sp. z o.o. to Algoma Steels have all been
taken into consideration when choosing these vendors. Baltic Shipping Lines will handle the maritime
freight, ensuring timely and secure transportation of the iron ore from Poland to Canada. Inland delivery of
the iron ore to Algoma Steels facility will be expertly managed by Canadian Rail Cargo Services. The required
customs formalities will be handled by Global Customs Solutions Ltd., resulting in a smooth cargo clearing
process. They are the ideal candidates to support the effective shipping of iron ore from Polska Grupa
Gornicza Sp. z o.o. to Algoma Steels because to their combined expertise
 FOB (Free On Board)

CIF (Cost, Insurance, and Freight)

Incoterms
considered CFR (Cost and Freight)
while shipping: DAT (Delivered at Terminal)

DAP (Delivered at Place)

 COMMERCIAL INVOICE BILL OF LADING PACKING LIST CERTIFICATE OF

Documentation ORIGIN

required:
INSURANCE CUSTOMS TRANSPORTATION AND
CERTIFICATE DOCUMENTATION LOGISTICS
DOCUMENTATION
Transportation to Port of Exit:

● After processing, the iron ore is transported from the mining areas to a nearby GDANSK port
located on the Baltic Sea.
● Transportation methods include rail and trucks.
● Silesia to gdansk route is around 400 kms
● MSC, the Switzerland-based world’s largest shipping line handler company
● This is important because any delays can result in increased costs and lost revenue.
 ● The port of exit plays a crucial role in exporting the iron ore from
Port of Exit Poland to other parts of the world. Located on the Baltic Sea, this
port is equipped with state-of-the-art facilities that allow for
efficient loading and unloading of cargo ships.
● Gdansk port is located at the mouth of Motlawa River on the
southern coast of Gdansk Bay and is one of the largest seaports on
the Baltic Sea and pne of the Poland’s busiest port handled.
Transportation to Port of Arrival in Canada
Port of Sept-Îles: Located in Quebec, it is one of the largest iron ore ports in North America
and serves as a gateway for iron ore exports from Canada.
Once the iron ore has been loaded onto ships at the port of exit, it begins its journey across
the Atlantic Ocean towards Canada. The trip can take anywhere from 7 to 14 days
depending on weather conditions and the speed of the ship
Upon arriving at the port of arrival in Canada, the iron ore is unloaded from the ship and
transported to its final destination by rail, the approximate distance between port of
Quebec to Algoma steels will be 850 kms. The transportation method used depends on the
distance between the port and the final destination as well as the quantity of iron ore
being transported. Rail is generally preferred for longer distances
Transportation Costs Involved:
The mode of transport is Ocean
DCT Gdansk sa, Poland ---> NTB NORTH Sea Terminal Bremerhaven,
Bremen, Germany ---> Montreal Racine Terminal 395, 2591, Quebec,
Canada
The basic ocean freight charges are 134 USD
Environmental Fuel fee will be 238 USD
Documentation fee in Poland will be 100 USD
Terminal Handling Services in Canada will be 625 USD
Canadian mine production (shipments) of iron ore, by province
and territory, 2021 (p)

Most of Canada's iron ore comes from the Labrador

Trough region bordering Quebec and Newfoundland
and Labrador. A substantial amount is also produced
in Nunavut.