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Risk Mitigation Project Cargo –
Checklist for Success
[7-29% Logistics Cost]
By Marc Kerr
Risk Mitigation Project Cargo

Feasibility Study
Risk Mitigation Project Cargo

• Feasibility Study
– Route Survey: Taking into account
• All points of entry
• Hubs and transhipment points
• Physical Challenges and Restrictions
Risk Mitigation Project Cargo

Third World Pitfalls
Risk Mitigation Project Cargo

• Third World Pitfalls
– Corruption:
• FCPA
• European Union
• Australian Law etc
Risk Mitigation Project Cargo

• Third World Pitfalls
– HSE:
• All workers – including vendors/sub-contractors
• Governing Law / Statutes pertaining to employee
rights
Risk Mitigation Project Cargo

• Third World Pitfalls
– Government Regulations (or the lack thereof !):
• Curfews/strikes
• Customs and excise
• Certification of Equipment
Risk Mitigation Project Cargo

Factors for Success
Risk Mitigation Project Cargo

• Freight Forwarder
– Engineering Interface (client) :
• Reduced Costs
• Reduced Physical Challenges
Risk Mitigation Project Cargo

• Freight Forwarder
– Contractor Vetting:
• Client requirements
• Regulatory Requirements
• Safety
Risk Mitigation Project Cargo

• Human Assets
– Right people with the right skill sets
– Training
– Local Content
Risk Mitigation Project Cargo

Methodology
SREDIM
• Select
• Research
• Examine
• Develop
• Implement
• Maintain
Risk Mitigation Project Cargo

• Methodology (SREDIM)
– Select: Focus on area of concern
• Route Survey
• Engineering
Risk Mitigation Project Cargo

• Methodology (SREDIM)
– Research:
• Look at all options
• Possible Pitfalls
• Scheduling
Risk Mitigation Project Cargo

• Methodology (SREDIM)
– Examine:
• Discuss with relevant stakeholder what needs to be
achieved bearing in mind the research data
Risk Mitigation Project Cargo

• Methodology (SREDIM)
– Develop
• Matrix
• Contingency Planning
• Options

Lifting- &
Handling
Equipment

Transport
Infrastructu
re /
Facilities

Planning

Transport
Planning &
Execution

Transport
Equipment
Risk Mitigation Project Cargo

• Methodology (SREDIM)
– Implement:
• Execute the plan
• Schedule
• Methodology
Risk Mitigation Project Cargo

• Methodology (SREDIM)
– Maintain
• Monitor
• Adapt

** REMARK: Based on industry experience – Not quantified

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PowerLogistics Asia 2013-" Risk Mitigation For Project Cargo – Checklist For Success!" - Marc Kerr, Industry Professional

  • 1.
  • 2. Risk Mitigation Project Cargo – Checklist for Success [7-29% Logistics Cost] By Marc Kerr
  • 3. Risk Mitigation Project Cargo Feasibility Study
  • 4. Risk Mitigation Project Cargo • Feasibility Study – Route Survey: Taking into account • All points of entry • Hubs and transhipment points • Physical Challenges and Restrictions
  • 5. Risk Mitigation Project Cargo Third World Pitfalls
  • 6. Risk Mitigation Project Cargo • Third World Pitfalls – Corruption: • FCPA • European Union • Australian Law etc
  • 7. Risk Mitigation Project Cargo • Third World Pitfalls – HSE: • All workers – including vendors/sub-contractors • Governing Law / Statutes pertaining to employee rights
  • 8. Risk Mitigation Project Cargo • Third World Pitfalls – Government Regulations (or the lack thereof !): • Curfews/strikes • Customs and excise • Certification of Equipment
  • 9. Risk Mitigation Project Cargo Factors for Success
  • 10. Risk Mitigation Project Cargo • Freight Forwarder – Engineering Interface (client) : • Reduced Costs • Reduced Physical Challenges
  • 11. Risk Mitigation Project Cargo • Freight Forwarder – Contractor Vetting: • Client requirements • Regulatory Requirements • Safety
  • 12. Risk Mitigation Project Cargo • Human Assets – Right people with the right skill sets – Training – Local Content
  • 13. Risk Mitigation Project Cargo Methodology SREDIM • Select • Research • Examine • Develop • Implement • Maintain
  • 14. Risk Mitigation Project Cargo • Methodology (SREDIM) – Select: Focus on area of concern • Route Survey • Engineering
  • 15. Risk Mitigation Project Cargo • Methodology (SREDIM) – Research: • Look at all options • Possible Pitfalls • Scheduling
  • 16. Risk Mitigation Project Cargo • Methodology (SREDIM) – Examine: • Discuss with relevant stakeholder what needs to be achieved bearing in mind the research data
  • 17. Risk Mitigation Project Cargo • Methodology (SREDIM) – Develop • Matrix • Contingency Planning • Options Lifting- & Handling Equipment Transport Infrastructu re / Facilities Planning Transport Planning & Execution Transport Equipment
  • 18. Risk Mitigation Project Cargo • Methodology (SREDIM) – Implement: • Execute the plan • Schedule • Methodology
  • 19. Risk Mitigation Project Cargo • Methodology (SREDIM) – Maintain • Monitor • Adapt ** REMARK: Based on industry experience – Not quantified