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German Steelmakers Cut Blast-Furnace Output as Northern Rail Works Choke Freight

Extensive track renewals and signalling projects have created persistent freight bottlenecks that threaten a shift of heavy cargo to road with higher costs.

Overview

  • Early June reports say Salzgitter has already reduced blast-furnace production and Arcelor‑Mittal has made initial cuts at its Brandenburg plant because rail deliveries of iron ore, coal and scrap were delayed.
  • The delays stem from a cluster of overlapping infrastructure projects on key northern corridors, including works on Hamburg–Berlin, Hamburg–Schwerin and upgrades between Hamburg and Hannover, that have caused line closures and capacity losses.
  • Steel firms and the private freight-rail association blame DB InfraGO for insufficient prioritization of freight traffic and say the operator has no visible plan to quickly restore reliable supply.
  • Freight cannot be replaced by passenger-style measures, so companies report longer transit times — transports that took about five hours now need up to eight — plus costly detours and extra handling.
  • Industry warns of rising corporate costs and wider economic damage if disruptions persist, and the Deutsche Bahn says it has formed a taskforce and proposed simplified compensation procedures for affected operators.