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Shortsea Nordvest 2010 Hydro Elisabeth Holmsen

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  • 1. Landtransport kontra sjøtransport, hva påvirket valgene i Hydro Aluminium?
    Presented by Elisabeth Holmsen
    Ålesund 24. March 2010
  • 2. Norsk Hydro Business Areas
    CEO
    Svein Richard Brandtzæg
    Energy
    Ola Sæter
    Primary Metal
    Hilde M. Aasheim
    Metal Markets
    Kjetil Ebbesberg
    Rolled Products
    Oliver Bell
    Extruded
    Products
    Johnny Undeli
    Projects
    Tom Røtjer
  • 3. Casthouse Products
    Wire Rod
    Sheet Ingot
    Foundry Alloys
    Extrusion Ingot
  • 4. L&D Casthouse outbound transport
    Various transportation modes in the Casthouse value chain
    Inbound
    Internal
    Outbound
    Customerslocations
    Suppliers
    Direct trucking
    Truck
    Liquid
    Remelt
    Casthouseproduction
    Rail
    Truck
    Sea
    Alloys
    Rail
    Scrap
    Internaltransport
    Stevedoring
    Loading
    Barge
  • 5. Distribution pattern and volumes 2010
  • 6. Direct trucking/train165 000 mt~ 6600 trucks
    Customerslocations
    Norwegian Casthouseproduction
    Truck
    820 000 mt~32 500 trucks
    Sea transport1100 000 mt~ 550 Vessels
    Rail
    Truck
    Rail
    22 000 mt
    Stevedoring
    Barge
    260 000 mt
    Norwegian system
    Transport volumes
    Annual sales orders approx. 50.000
  • 7. Decision parameters
    HES
    • Type of Vessel
    • 8. Procedures
    • 9. Providers
    • 10. No of kilometers on road
    Customer Demands
    Decision on solution and provider
    Solutions availability
    Quality
    • Number of handlings
    • 18. Exposure to weather
    • 19. Load securing
    • 20. Reliability
    Cost
    • Total cost to market
    • 21. Front haul/back haul
  • Case example Årdal
    Background
    Årdal has a yearly production of approximately 190 kmt SI and 130 kmt FA.
    Hydro has a major market for FA products in Central Europe
    In 2009 there was a shift in volumes. Hydro needed to redesign the logistics solution in Sognefjorden.
    Options
    Extra vessels to Amsterdam
    Direct trucking to Central Europe
    “Re-open” vessel solution to Baltic (Rostock)
  • 22. Alternatives - illustration
    • Not significant differences in trucking distance to between alternatives
    • 23. Back haul / front haul
    Årdal – Poland back haul
    Amsterdam – Poland front haul
    1600 km / 1450 km
    1650 km / 1300 km
    1900 km / 1350 km
  • 24. Order fulfillment timeline (leadtime) Norwegian sources -“Normal orders” - Make-to-Order production
    Production planning
    P
    Call off/Booking/Optimizing
    Shipment
    12
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    Scandinavia – 14 days (EI)
    Trucking FA toCentral Europe3-4 weeks
    Continental Europe3.5-4 weeks
    Iberia4-5 weeks
    Mediterranean4-7 weeksItaly & Greece
    Production
    Seaborne
    Stevedoring
    Trucking
    Sales & Marketing; Metal Management
    Primary Metal
    Logistics & Distribution
  • 25. The alternatives - advantages
    Trucking
    • Norway - Central Europe is back haul
    • 26. High flexibility
    Short lead-time
    Limited no of handlings – preserves quality
    Cost advantageous
    Seaborne thru Amsterdam
    • Experienced and professional providers
    • 27. Reasonably good vessel availability
    Continent: good truck availability - alternatives available
  • 28. The choice
    Direct trucking to Central Europe
    The future preference
    A competetive vessel solution via a port in the Baltic
  • 29. www.hydro.com