POSCO, Integrating Group Capabilities to Promote Logistics Efficiency and Specialization

POSCO Logistics Subsidiary 'POSCO GSP' to Launch Within the Year

[Asia Economy Reporter Hwang Yoon-joo] POSCO is integrating its logistics capabilities within the group to enhance logistics efficiency and strengthen expertise.

On the 12th, POSCO announced that it will launch an integrated logistics operating corporation called 'POSCO GSP (Global Smart Platform) (tentative name)' within this year. The integrated logistics corporation will be responsible for consolidated contracts and operational management of transportation volumes for POSCO and its affiliates, and will support logistics partners in building smart and eco-friendly infrastructure to improve logistics efficiency and synergy.

Currently, various transportation contracts related to steel raw material procurement and domestic and international product sales are dispersed across multiple departments within POSCO, and logistics functions are scattered among affiliates such as POSCO International, SNNC, and POSCO Steel Sheet. By integrating these into a single company, POSCO aims to eliminate duplication and waste to increase efficiency and strengthen expertise.

Despite the fact that last year's cargo volume, including affiliates, was approximately 160 million tons and logistics costs were about 3 trillion KRW, logistics operations are dispersed by company and function and are only operated as support functions for sales and procurement, indicating an urgent need to improve efficiency and expertise.

Due to the heavy and bulky nature of the steel industry, global steel companies in Europe, Japan, and China already operate specialized logistics affiliates to enhance logistics efficiency and expertise.

The integrated logistics corporation plans to improve efficiency by consolidating logistics services such as transportation planning and contract management for raw materials and products, and aims to grow into a logistics platform based on artificial intelligence and robotics technology.

Additionally, POSCO will apply its smart factory technology, currently being transferred to small and medium-sized partners, to logistics partners to jointly promote smartization. For example, by building an 'AI Wiring System' applying artificial intelligence and big data technologies to minimize the waiting time of ships at ports, reducing losses and costs, POSCO plans to share these outcomes with logistics partners, thereby strengthening the ecosystem based on mutual growth and cooperation.

The integrated logistics corporation will also build eco-friendly logistics infrastructure together with logistics partners to respond to increasingly strict international environmental regulations. This includes collaborating with domestic shipping and shipbuilding companies to support the installation of ship desulfurization equipment and the introduction of LNG-powered vessels, converting port facilities operating on diesel engines to electric power, and supporting the operation of eco-friendly transport vehicles.

Furthermore, to promote fair competition and mutual growth, POSCO will introduce direct transportation contracts for truck owners. A mobile platform will be established where truck owners can directly participate in bidding and manage freight transportation and payment settlements.

Prior to establishing the integrated logistics corporation, POSCO has begun recruiting individual truck owners willing to directly participate in the land transportation of products produced at the Pohang and Gwangyang steelworks. The direct contract and transportation with truck owners, implemented as a pilot project, will undergo trial operation starting in June, and improvements will be reflected when the logistics corporation is established.

POSCO stated, "According to the Shipping Act, large shippers are strictly restricted from entering the maritime transportation business, and POSCO has no plans to enter the shipping or transportation business." It added, "After establishing the integrated corporation and generating synergy effects within the group, we plan to continue mutual cooperation by sharing the results and maintaining existing contracts and transaction structures with current logistics partners."

This content was produced with the assistance of AI translation services.