It will now be possible to quickly dispatch from local warehouses construction steel and similar materials, which will be produced in the iron-steel facility being established in Rize, to construction sites in the region. This will reduce the uncertainties brought by long-distance transportation, making the material flow at construction sites more predictable.

With the commencement of operations of Rize Iron and Steel Industry and Trade Inc., bearing the name Rizdemir“, the supply chain dynamics in the Eastern Black Sea” will undergo a fundamental change. Primarily, thanks to this facility established in the Rize Organized Industrial Zone “(OIZ), critical products such as construction steel, annealed wire, and construction nails will be produced locally. This means that construction companies and wholesalers in the region will be able to access the materials they need in their own cities or very nearby. Iron and steel products that were previously ordered weeks in advance from distant centers like Karabük or İskenderun can now be obtained from Rize OIZ within days or even hours”.

The shortening of the supply chain brings fewer intermediaries, less storage, and faster delivery. With Rizdemir, supply chain links will be simplified. For example, when steel was previously ordered for a construction in Rize, the material would first leave the factory in Karabük, travel hundreds of kilometers by truck, then reach a warehouse in the region, and finally be dispatched to the construction site. Now, the distance between the production point and the consumption point is dramatically reduced. When material is needed for a construction site in Rize, a truck loaded from the OIZ can be at the site within a few hours. This will enable just-in-time supply practices, allowing companies to achieve almost on-demand production flow.

Immediate Effects of Local Production on Logistics

Thanks to Rizdemir, transportation costs are expected to decrease. Instead of high freight charges paid for long distances, there will be much lower transport expenses for the short distance between Rize OIZ and construction sites. This cost advantage will directly reflect on material prices, allowing companies in the region to procure iron and steel products at more affordable prices. To make an analysis: Let’s assume that the cost of transporting iron from Karabük to Rize causes a 15% price increase per ton in a specific example. This additional 15% cost will be almost zero with Rizdemir. Because local transportation means short-distance transport within the city or region, and its cost is negligible compared to long-distance transportation.

Additionally, the supply time will be dramatically shortened. While it used to take several days for a truckload of construction steel to reach Rize (including road conditions and accommodation), now the same material can be delivered on the same day after being produced in Rize OIZ. For example, when a construction site notices a shortage in steel reinforcement before a critical concrete pour, they can immediately request a supplement from the local warehouse in Rize, and the material can be on-site within a few hours. This kind of flexibility is highly valuable in construction projects and only becomes possible with local production.

Optimization of the supply chain also means the elimination of intermediaries and double-stage transportations. When Rizdemir becomes operational, construction material wholesalers operating in the eastern Black Sea Region “will be able to purchase products directly from the factory in Rize”. This simplifies distribution processes. There will be less handling, less storage needed. In some cases, wholesalers may not even need to keep high inventory because, with the producer being in the city, they can replenish quickly according to demand.

Moreover, nearby provinces outside of Rize (such as Trabzon, Artvin, Giresun) will also benefit from this local supply advantage. Since Rizdemir will be able to serve the entire Eastern Black Sea “region, shipping materials from Rize” for a project in Trabzon “will be much cheaper and faster than from Karabük”. The presence of a regional production hub means logistical optimization for the entire Black Sea“region”. For example, a construction company in Trabzon “will opt to source profiles from Rize” instead of bringing them from İskenderun, thus saving both time and cost in transportation.

Reliability and Risk Reduction in the Supply Chain

Local supply opportunities also reduce the vulnerability of the supply chain. While disruptions in long-distance logistics (such as natural disasters in a region, road closures, etc.) can disrupt the entire project flow, supply within Rize will be much less exposed to such risks. Rizdemir, as a regional supply base, will ensure material continuity in the Eastern Black Sea “region. For example, even if there is a nationwide transportation crisis or fuel shortage, steel products produced in Rize” will at least be in a position to be easily distributed to the nearby geography.

Additionally, quality consistency and product traceability will improve. Regional customers in direct contact with the factory producing in Rize will be able to closely monitor production processes when necessary and communicate quickly in case of quality issues. This also means an optimization in the relational dimension of the supply chain: as the distance between the producer and the end user shortens, communication accelerates and mutual trust increases.

To summarize briefly, with Rizdemir’s commencement of operations, the supply chain in the Eastern Black Sea “region will attain a much more efficient, reliable, and flexible structure”. By reducing logistics costs and times, decreasing inventory needs, and minimizing risks, the industry and construction sector in the region will gain fresh blood. This development will directly contribute to the cost and planning performance of projects, which we will discuss in the next section.