powerlogistics asia 2014 - challenging infrastructure & constraints - project forwarding in...

Project forwarding in emerging markets Power logistics asia 2014

Usa Uae india

1. Logistics Audit: Where are we in Project Forwarding

Domain/Constraints & Challenges.

2. Forward Path and remedies to alleviate the problems.

3. Case Study – India, an emerging yet Global Market.

4. 10 point Action Plan for successful project forwarding in Emerging Markets.

5. The “Horror Story” in snapshots.

CONTENTS

Project forwarding in Emerging Markets

1

Country Logistics cost as a % of GDP Share of 3PL

Singapore 8% Over 50% India 13.0 - 14.0% Less than 10% China 18.00% Less than 10%

U.S.A. 9.90% 34%

Europe 7.10% 54%


WE NEED A PARADIGM SHIFT IN OUR APPROACH TOWARDS SUPPLY CHAIN

SOURCE: VARIOUS

AN AREA - WHERE WE NEED TO IMPROVE

There is an inverse relationship between logistics cost of a nation and the share of 3 PLs’, in national logistics market. The greater the share of 3 PLs’, the lesser is the national logistics cost.

WORLD BANK – Logistics Performance Index Ranks Singapore at Number 8 U.S.A. at Number 9 Germany at Number 1 Netherlands at Number 2 Belgium at Number 3 UK at Number 4 and INDIA at Number 54 amongst 160 nations evaluated for the same.

2

NATIONAL LOGISTICS COST - SHARE OF 3PL

AVERAGE COST PERCENTAGE ANALYSIS ON PROJECTS

Supplies

&

Logistics

Project Management - 3%

Engineering – 8%

Construction Management - 3%

Construction – 18%

GOING BEYOND LOGISTICS……..

SAFETY

SECURITY

TIMELINE

COMPLIANCE

COST

Logistics – 4-7%

Supplies – 61-64%

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Note: 6.4% growth is expected in the South Asia region in 2015 as against 5.6% growth recorded in 2014-15. (source : World Bank)

6


Choice of an LSP

Overall Cost effectiveness

Service quality/ Safety/Security/

Environment friendly

Equipment/Quality

Reputation/Goodwill

Timely delivery

Network reach

Specialised cargo handling

Compliance & approvals

SERVE SUPPORT SIMPLIFY 7

KEY DETERMINANTS WHILE SELECTING AN LSP



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Finished consumer goods, both imported and those produced in India, will have to be transported to the country’s middle-class consumers, which, by 2030, are expected to increase fourfold from the current middle class population of 160 million.

Transporters with fleets smaller than five trucks account for over two-thirds of the total trucks owned and operated in India and make up 80% of revenues.

Transporters generally are not very conscious about SLAs as they are more worried about the cost, as compared to 3 PLs who monitor the SLAs closely.

Interpretative and not objective transportation norms needs to be more practical, while ensuring Compliance.

Road infrastructure is a huge area of concern and also for improvement.

Transportation Overview : ROAD

IF INDIA BUILDS ITS ROADS – THE ROADS WILL BUILD INDIA

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Bridges & Culverts

Gradients & Tapered Turns in Hilly Terrains

Railway L. C.’s

Overhead Transmission Lines

Narrow Roads &

Junctions

Trees

Overhead Sign Boards Fly Over Bridges

Gradients & Tapered Turns in Hilly Terrains

Check: Slope Angle of Inclination Requirement of Additional Force/ Prime Movers for pulling the consignment.


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General Definition Weight > 35.00 MT. Width > 3.05 MTRS.

Height > 2.60 MTRS.

Length > 13.00 MTRS.

Selection Criteria

Constraints En route

Weight

Dimensions

Location of C.G.

Cost Factor

In-Transit Safety

Mechanical Trailers Hydraulic Axle Trailers

Selection of Trailers


12

By-Pass Construction By-Pass made up of RCC Hume Pipes

Balli Pier Type By-Pass


13

:Innovative Approach: Crossing Water Channel with the help of Dismountable Modular Barge/ Pontoons

By-Pass made up of Pontoons & Ramps


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Transportation of Plants & Equipments Road Transportation: Mechanical Trailers


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Overall export-import (EXIM) cargo at Indian ports is projected to increase to around 2,800 MMT by 2020 from approximately 890 MMT currently.

12 Major Ports & 63 minor ports, with plans to entrance Port infrastructure, thus creating a complete business eco system.

Port congestion is an issue we need o address, sooner than later!

Coastal Shipping in India – around 140 vessels carrying 150 million tonnes of commodities accounting for 7 percent of overall cargo movement. In comparison, China moves 1 billion tonnes of coal, steel, fertilisers and commodities with over 12000 coastal vessels.

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Shipping Overview : INTERNATIONAL & COASTAL SHIPPING

INDIA IS GIFTED WITH A COAST LINE – WHY NOT USE IT……..


Water Survey: Major Hurdles

Selection of Barge/Tug & Vessel

(Loading Patterns)

Ports/ Jetties Overhead Bridges Fishing Nets/ Stakes

Roll-On/ Roll-Off

Operations

Overall Structure Availability of Draft Under-Water Currents Approach Channel Soil Condition around Jetty Facilities for Ro-Ro Operations Location & Open Space around Jetty

Jetties

Location Navigational Aids Pilotage Approach Channel Berthing facilities Handling Equipments. Warehousing/Storage

Ports


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The Civil Aviation Ministry’s proposal to frame a policy for the development of airports exclusively for cargo operations is encouraging and on commissioning of these cargo airports in due course of time will provide a much needed trigger to the air cargo segment.

The Civil Aviation Ministry has set a target of getting around 500 airports operational in the country by 2020. Present count is 85 as of 2014, plus 12 under advanced proposal stage.

Cargo handling at airports needs improvement.

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Aviation Overview : AIR FREIGHT

AIR FREIGHT NEEDS TO BE “JUST IN TIME” NOT “SOMEHOW IN TIME!”


10 ‘C’s THE WHEEL OF

SUCCESS

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Date: 25th April 2005

Consignment: Transformer (315KV) Dimensions: 12.8 ML x 3.6 MW x 4.2 MH

Weight: 165MT.

Reason:

Because of Poor Traffic Management, trailer driver had to apply emergency brakes. Steel Girders of the Bridge, sheared off due to this Impact.

Transformer was sent back to the manufacturing unit to assess damages & its rectifications.

Project delayed by 6 MONTHS…!!

Effects of Poor Logistics Management


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Heat Exchangers (Plate Type) – Ex. France Date: 10th Jan, 04. Trailers on its journey from Mumbai Port; collided with each other (just 90 Kms. before the Project Site).

Losses: • 1 person died due to Burn Injuries/ 11 Hydraulic Axles &

the Prime Mover completely burnt off in the fire caused due to collision.

• Both the Exchangers (Coded Vessels) were in flames for more than 2 Hrs.

• Heat Exchangers were mobilised to local shop floor & the Technical Experts were called upon from France for the Inspection & Rectification (Delay in delivery up to Project Site: 100 days).


What can go wrong..?? By-Pass Construction

Precautions To Be Taken:

• Deputation of Experienced Civil & Structural Engineers/ Agencies; to design the By-Passes. • Soil Investigation should be carried out, in the form of trial pits to ascertain the strength of sub-

grades, so that scheme for the Modification can be finalised. • Identification & Selection of Civil Contractors on the basis of their capabilities & previous

experience. • Suitable tests (such as Plate Load Test/ Dynamic Cone Penetration Tests, etc.) should be carried

out at several stages of construction. • Deputation of Surveyors; to ensure the Quality of Construction/ Modification work. • Mobilisation of adequate Resources to ensure readiness of all Modifications for uninterrupted

movement of consignments.


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Generator Stator imported from Russia for 3 x 660MW Power Project Weight – 375MT; Stuck due to sharp turns in Hilly Terrain for over 8 Months…!!?!!

REASON – IMPROPER SELECTION of Combination of Hydraulic Axle Trailer & the Route that was followed.

ACTION being taken: Cutting of rocks which are Fouling & obstructing the movement of trailer (over a distance of approx. 19Kms); is under progress (estimated time frame: 4 Months)

Overall Delay: 12 to 13 months…!!?!!


26

Bridge collapsed due to the movement of Turbine (8th August 2009) : being transported by road from Mundra Port to power plant situated at Pipavav. Weight – 375MT. REASON – Improper Analysis of Bridge Capacity. Overall Delay: 12 to 13 months…!!?!!


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Date: 15th June 2008 Bailey bridge linking National Highway and Kullu bypass collapsed. Vehicle was carrying about a load of 50 MT, while the bridge was meant for only 15MT.


Modular Structure for Gas Process Unit being Rolled Off from the Barge (Floating Operations)

Oops…!!?!! The Module is in water…!!

Barge drifted due to inadequate Mooring, Anchoring & Ballasting. Ramp was not properly secured/ placed over the Barge & Jetty

Damages to the Project – NOT KNOWN

Ro-Ro (Roll-On/ Roll-Off) Operations

What can go wrong..??


29

Whilst off-loading one of the Reactor at Port of Sohar: The engine of crane number 2 (275mts SWL) broke down and the reactor slipped onto the trailer.

• Engine Failure…!!! Leading to damages on ship, reactor, pier, trailer and of course the PROJECT itself.

Lo-Lo (Lift-On/ Lift-Off) Operations



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Lo-Lo (Lift-On/ Lift-Off) Operations


Date: 18th February, 2007 While discharging 638MT Reactors: Engine of one of the two cranes broke down and dropped the top portion of reactor onto the pier.

• Engine Failure…!!! Leading to damages on ship, reactor, the pier and of course the PROJECT…!!!


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Consignment being Rolled On to the Barge (Floating Operations)

Oops…!!?!! Consignment is in water…!!

Barge drifted due to inadequate Mooring, Anchoring & Ballasting. Ramp was not properly secured/ placed over the Barge & Jetty

Damages to the Project – NOT KNOWN

Ro-Ro (Roll-On/ Roll-Off) Operations



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