Choosing  the  wrong  freight  forwarder  or  choosing  a  freight  forwarder  based  on  the  lowest  price  for  your  mine  or  project  could  end  up  costing  you  the  earth,  according  to  logistics  specialist  Peter  Townley.    

1

As  managing  director  of  Townley  Group  International  –  a  company  specialising  in  freight  forwarding  and  project  cargo  services  for  the  resources  sector  –  and  with  more  than  25  years  experience,  Peter  has  seen  it  all.  

“Perhaps  the  most  costly  mistake  that  procurement  personnel  could  make  is  selecting  a  freight  forwarder  on  price  alone,”  says  Peter.  

“In  my  experience  a  lot  of  forwarders  are  chosen  on  price  and  the  person  selecting  doesn’t  really  look  deep  into  what  the  

2

forwarder  can  achieve.  While  price  is  an  important  consideration,  it  often  runs  second  to  on-­‐‑time  delivery.    

“If  a  project  is  delayed  by  a  day  a  week  or  a  month  due  to  the  forwarder  giving  a  low  price  and  choosing  non-­‐‑performing  carriers  or  airlines,  then  the  actual  cost  to  the  project  could  be  astronomical  in  terms  of  shutdown  or  delays  at  site.”    

With  so  many  links  in  the  supply  chain,  says  Peter,  it  is  

How to save time and money and minimise downtime for your mine or project with freight forwarding

Troy  Resources’  mill  shell  en  route  through  the  Andes  from  Cobar  NSW.    

Continued…  

;  

 

2  

1233

important  to  look  beyond  price  and  seek  the  services  of  a  logistics  specialist  with  an  intimate  knowledge  and  understanding  of  the  various  transit  options,  availability  and  timings,  from  start  to  finish.  

Project  managers  need  to  consider  that  ships  and  aircraft  are  not  always  available  on  the  time  frame  they  want,  Peter  advises.  

“Careful  forward  planning  is  required  when  it  comes  to  execution  of  projects  and  the  project  forwarder  is  a  critical  part  of  the  supply  chain,”  he  said.  

“The  forwarder  is  able  to  construct  long  range  scheduling  based  on  the  build  and  ready  dates  of  major  mine  assets.  This  allows  for  better  flexibility  with  vessel  owners  and  aircraft  operators.  

When  engaging  a  freight  forwarder,  advises  Peter,  seek  a  credible,  experienced  and  reliable  provider  with  a  ‘hands  on’  capacity  at  the  load  and  discharge  areas  –  and  all  areas  in  between.    

4

“Regrettably  this  doesn’t  always  happen  in  large  companies,  as  the  work  is  often  passed  to  someone  in  the  organisation  who  may  not  have  the  depth  of  experience  that  a  more  senior  or  experienced  person  has  in  cargo  

5

management,”  he  said.  “Sometimes,  bigger  is  not  always  better.  "ʺ  

“The  forwarder  should  be  very  hands-­‐‑on.  Taking  care  of  the  cargo,  making  sure  it  is  loaded  and,  that  the  client  is  getting  constant  updates  from  start  to  finish."ʺ  

The  biggest  pitfall  in  selecting  a  freight  forwarder  with  the  lowest  price,  says  Peter,  is  the  ‘variation  of  contract’  where  a  forwarder  can  come  back  at  the  client  and  charge  a  premium  based  on  non-­‐‑information  or  a  change  in  the  contract.    

“These  areas  need  to  be  viewed  carefully  by  the  project  manager  and  the  procurement  teams,  as  this  can  often  end  in  litigation  or  heavy  financial  losses  to  the  client,”  he  said.    

“In  some  instances  cargo  can  be  held  up  until  payments  or  agreements  have  been  made,”  again  leading  to  possible  lengthy  delays  and  additional  cost.  

“The  forwarder  should  be  very  hands-­‐‑on.  Taking  care  of  the  cargo,  making  sure  it  is  loaded  and,  that  the  client  is  getting  constant  updates  from  start  to  finish."ʺ  -­‐‑    Peter  Townley  

;  

 

3  

6

The  freight  forwarder  should  be  an  integral  part  of  a  project  or  operation,  says  Peter,  and  while  not  on  site  24/7  they  should  be  constantly  monitoring  and  updating  information  to  the  client.    

“The  forwarder  must  

7

be  a  part  of  the  decision  making  process  or  contracted  as  an  advisor  to  the  team,”  he  said.    

“Every  project  manager  and  procurement  person  knows  someone  who  knows  someone  who  owns  or  has  ships  or  aircraft,  but  fundamentally  these  are  relationships  that  have  the  potential  to  turn  bad  –  and  the  consequences  can  be  costly.  

“Carriers  and  shipping  lines  have  their  own  set  of  rules  that  are  well  established  in  law.  Any  misunderstanding  

8

or  misinterpretation  of  these  laws  can  have  serious  financial  implications.”  

"ʺAs  mine  operators  and  project  managers  face  increasing  demands  in  meeting  on  time  performance  targets  and  budgets"ʺ,  says  Peter.  

"ʺA  freight  forwarder  which  can  work  seamlessly  with  their  operation  can  deliver  huge  benefits."ʺ  

“Making  the  freight  forwarder  part  of  the  decision  making  process  will  save  you  time  and  money  and  help  you  avoid  hassles,”  says  Peter.  

Two  x  90  tonne  dragline  MG  sets  ready  for  the  long  haul  to  BMA  Coal  Blackwater.  Careful  forward  planning  is  required  when  it  comes  to  execution  of  projects  and  the  project  forwarder  is  a  critical  part  of  the  supply  chain.  

 

An  excellent  project  forwarder  can  save  the  projects  millions  if  they  are  involved  from  the  outset  and  have  all  the  relevant  information.  

;  

 

4  

9

“An  excellent  project  forwarder  can  save  the  projects  millions  if  they  are  involved  from  the  outset  and  have  all  the  relevant  information."ʺ  

“The  forwarder  can  work  with  Customs  and  the  Australian  Quarantine  and  Inspection  Service  (AQIS)  to  mitigate  many  hard  to  pass  areas,  as  well  as  looking  for  the  tariff  

10

concessions  for  the  project.  

“A  good  forwarder  does  this  daily  and  is  up  to  date  on  current  issues  with  ships,  planes,  customs  and  AQIS,  as  well  as  the  local  issues  with  trucking  and  cranes.”  

 

Better  tracking  With  the  mining  industry  experiencing  dramatic  growth  in  recent  years,  

11

most  freight  forwarders  have  not  kept  pace  when  applying  technology  such  as  Global  Positioning  Systems  (GPS)  and  Radio-­‐‑frequency  identification  (RFID)  to  track  and  trace  cargo  in  real  time,  according  to  Peter.  

“GPS  and  RFID  allows  for  better  controls  on  each  piece  of  cargo  from  origin  to  destination  and  we  use  these  systems  on  all  major  

One  of  two  14  tonne  belt  reels  headed  for  Ok  Tedi  flown  from  Greece  to  Port  Moresby  for  breakdown.  The  freight  forwarder  should  be  an  integral  part  of  a  project  or  operation.  

;  

 

5  

 

12

projects;  it  allows  the  customer  to  access  cargo  movements  in  real  time  while  on  site,  or  in  a  marshaling  area,”  Peter  said.  

“This  technology  can  save  the  end  user  much  time  in  locating  cargo,  but  it  also  provides  a  full  inventory  of  cargo  on  hand  and  its  location.  

“Our  company  applied  this  technology  on  a  job  for  Troy  Resources  to  mobilise  an  entire  gold  processing  plant  from  Cobar  in  New  South  Wales  to  San  Juan  in  Argentina.”    

Purchase  Order  (PO)  management  systems,  says  Peter,  are  also  being  successfully  employed  in  cargo  management.    

13

“This  allows  the  customer  to  upload  their  purchase  orders  through  our  system  and  get  on  with  their  job  and  the  forwarder  to  expedite  the  cargo,”  he  said.      

“The  forwarder  is  then  giving  the  customer  real  time  information  through  the  system  via  email  or  via  text  and  this  allows  the  customer  to  have  accurate  information  based  on  the  update  from  the  supplier  via  the  forwarder.    

“This  not  only  saves  time,  but  also  saves  considerable  money  in  not  employing  an  expeditor  to  handle  the  purchase  orders.    

“On  some  projects  there  may  be  as  many  as  five  or  six  expeditors.  

“The  cost  to  the  project  is  enormous.  By  giving  this  to  the  forwarder  the  cost  is  reduced  and  time  is  saved.”  n  

About  Townley  Group  International  

Townley  Group  International  specialises  in  the  worldwide  logistics  and  freight  forwarding  industry  and  understands  client  needs  at  every  level.  

Services  include:  project  and  out  of  gauge  cargo;  freight  forwarding  by  air  and  sea;  aircraft  charters;  vessel  charters  –  shipping;  war  zone  logistics;  salvage;  customs  clearance  –  marshalling,  warehousing  and  consolidations;  worldwide  tracking,  GPS  tracking,  and  RFID  and  asset  management.  

For  more  information,  call  Peter  Townley  on  0407  727  222  or  email  ptownley@townleygroupinternational.com  

The  forwarder  gives  the  customer  real-­‐‑time  information  through  the  system  via  email  or  SMS  text