The document discusses various modes of transportation. It describes pipelines as a unique mode that can transport large quantities of fluids over long distances at low cost. It provides an example of a successful pipeline project by Numaligarh Refinery Ltd in India that improved its profitability. It also describes intermodal transportation, which involves using multiple modes, and package carriers that deliver parcels and mail.
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Modes of transportation - Pipelines
1. Modes of Transportation
By : Armann Anand, 14020241107
Charvi Puri, 14020241064
Mohit Sewani, 14020241067
Prashanth, 14020241068
Prithvish, 14020241069
2. Introduction
• The operation of transportation determines the efficiency of
moving products
• The progress in techniques and management principles
improves the moving load, delivery speed, service quality,
operation costs, the usage of facilities and energy saving.
• Transportation takes a crucial part in the Logistics Operation
• Therefore, transportation is the base of efficiency and
economy in business logistics and expands other functions of
logistics system
3. Role of Transportation in SCM
Transportation provides the critical links between these organizations, permitting goods to flow
between their facilities.
Transportation service availability is critical to demand fulfillment in the supply chain.
Without well-developed transportation systems, logistics could not bring its advantages into full
play.
A good transport system in logistics activities could provide better logistics efficiency, reduce
operation cost, and promote service quality.
A well-operated logistics system could increase both the competitiveness of the government and
enterprises.
Transport system is the most important economic activity among the components of business
logistics systems
4. Challenges to carry out this role
Supply chain complexity
Competing goals among supply chain partners
Changing customer requirements
Limited information availability
Synchronizing transportation with other supply chain activities
Transportation capacity constraints pose a challenge.
Rising transportation rates present another major concern for organizations.
The transportation industry is impacted by governmental requirements that affect cost
structures and service capabilities.
Regulation is growing in areas where the transportation industry has the potential to
impact the quality of life, the safety of citizens, and the growth of commerce.
6. Pipelines Characteristics
An unique mode of transportation
They can move large quantities of certain types of commodities, mainly fluids, over
long distances at relatively low cost
The operations are environmentally friendly, dependable and continuous
The pipelines can be laid on a wide variety of terrains without much difficulty.
7. Pipelines Advantages
They are insensitive to surface conditions such as storms, inclement weather, etc.
High fixed versus low variable. Operating costs are low.
They are environmentally friendly.
Unique mode of transportation as the equipment is fixed in place and the
product moves through it in high volume.
174 operators of hazardous liquid pipelines that primarily carry crude oil and
petroleum products
Three primary types
Gathering lines
Trunk lines
Refined product pipelines
8. Success story of Numaligarh Refinery ltd
• The Refinery feeds the countries's never- satisfyable need for petroleum products. Despite a
crude allocation of 2.80 MT last year the plant had to restrict processing to only 2.28 MT
• For NRL, the most-dreaded impact at this time of the year is that the raging river -- as it makes
its way down to the Bay of Bengal -- overflows onto the railway tracks. It affecting all links
between NRL's processing facilities and the product markets in mainland India.
• Even during the rest of the year which is marked by normal weather, the railways are unable to
supply adequate rakes to NRL -- on the single-track railway line -- in order to ensure adequate
evacuation.
• Therefore, that Numaligarh has tied up with another company in the north-east, Oil Indian Ltd
(OIL), to build a 660 km product pipeline -- with a capacity to move 1.72 MT of diesel and petrol
-- linking Numaligarh with Siliguri in West Bengal.
9. The impact of the pipeline on NRL
• The railways were carrying only 1.21 MT of products up to Siliguri. With the pipeline in place,
1.72 MT of the refinery's total output would get delivered to the markets in the East and the
North.
• With the pipeline in place, the profitability of NRL is expected to go up by as much as 150
crore annually because of higher capacity utilisation and lower transportation cost. .
• The pipeline is not easily susceptible to damage from the Monsoon-driven waters of the
Brahmaputra.
• The Barauni-Kanpur pipeline, for instance, the operating cost is a mere Rs 191 per tonne of
product, whereas the railway freight per tonne for the 649 km distance is a mere Rs 926 per
tonne.
• In the case of the Chennai-Trichi-Madurai pipeline -- to be commissioned in mid-2005 -- the
railway freight is likely to be around Rs 728/tonne for a distance of around 500 km whereas
the operating cost of the pipeline for the distance is expected to be only Rs 66.30 per tonne.
11. Inter Modal Transportation
Involves the use of 2 or modes of transportation in moving cargo from origin
to destination.
Relies primarily upon the use of containerization
Involves the use of standardized box dimensions, hold down devices, &
related items.
Allows the same container to be used by water, rail, & motor carriers.
Combines the advantages & disadvantages of each transportation mode
used
Motor freight is the most common mode used
12. PIGGYBACK - First Intermodal Revolution
Includes the movement of motor carrier trailers on rail flatcars (TOFC)
Typical trailer ranges in length from 28 to 53 feet
Most flatcars can handle up to 2 trailers 40 feet in length
Trailers loaded by driving, crane hoisting, or fork-lift hoisting
And the movement of water carrier containers on flatcars (COFC)
Container come in 2 standard lengths
TEU (20 feet equivalent units)
FEU (40 feet equivalent units)
Typically loaded by crane hoisting
Normally transported on a doublestack car
13. PIGGYBACK
Several attempts to integrate transport modes- “Piggyback” or trailer on flatcar (TOFC)
Early success limited by rate restrictions, poor reliability and low profitability
Containerization was the revolutionary breakthrough
Transfer of cargo can be mechanical by crane and safety and security is improved
Fast loading and unloading reduces port congestion
Growth has occurred through conversion of cargo from traditional break of bulk and the
growth of world trade
14. Package Carriers
• Package delivery or parcel delivery is the delivery of shipping containers, parcels,
or high value mail as single shipments. The service is provided by most postal
systems, express mail, private package delivery services, and less than truckload
shipping carriers.
• Continued growth of business-to-consumer (b2c) e-commerce has increased
demand for low-cost package shipping services. Demand for inexpensive parcel
shipping is especially intense for online and catalog retailers
• Large parcel carriers, such as United Parcel Service (UPS) and FedEx, often include
an array of accessorial charges (like fuel and residential delivery surcharges) in
addition to their standard fees
• Packaging needs to be designed for the potential hazards which may be
encountered in parcel delivery systems. The major carriers have a packaging
engineering staff which provides packaging guidelines and sometimes package
design and package testing services.
15. Methodology to reduce packaging by producers
By concentrating the product as is now common with detergents, household cleaners and
squashes so that the same benefit can be got from a smaller package.
By changing the design of the packaging so that it uses less material, for example by
providing coffee in pouches to refill a glass jar.
In some cases the environmental impact can actually be reduced by using more packaging.
For example, 20% of grapes used to go to waste in store when they are sold as loose
bunches. Most now are packed in bags or boxes, which means fewer grapes get squashed
before they get home and the packaging can even help keep the grapes fresh when they get
home.
This work has been going on for many years e.g. washing-up liquid bottles are 58% lighter,
cardboard boxes are 14% lighter and drinks cans are 50% lighter than in the 1970s.
More recently many organization's have been working with WRAP to reduce both household
food waste and the impact of packaging, resulting in a voluntary agreement known as the
Court auld Commitment. Nearly 50 major retailers, brand owners and manufacturers from
the food and drink sector have now agreed to support a second phase of the Court auld
Commitment to reduce the carbon impact of food waste and packaging
16. Case Studies
Coop glass ale bottles
• The Co-operative introduced lighter glass bottles on their premium ale range.
This resulted in annual savings of around 138 tones of glass.
• Working with Free miner Brewery, The Co-operative has reduced the bottle
weight of its 500ml Gold miner, Organic and Bumble Bee Honey Ales by 22%
from an original weight of 385g and reduced its 422g Strong Ale bottle by
nearly 30%. Other breweries have done similar things too (see Court auld Case
Studies).
Wal*Mart – Glass Containers
• It has achieved a 20% reduction in its own-label packaging, with a particular
focus on cutting the weight of the glass they used.
• It has worked with suppliers, advisory bodies and academics to prove that
lightweight glass packaging can be delivered to market without affecting
quality or sales. It has now reduced the weight of glass packaging for sauces,
pickles, spices, coffee and wine bottles.
• These initiatives have achieved an overall glass reduction of 2,800 tonnes
compared to 2005
17. Top 6: Shipping Companies
United Parcel Service, Inc.
Headquarters: Sandy Springs, Georgia,
US
DHL Express
Headquarters: Bonn, Germany
FedEx Corporation
Headquarters: Memphis, Tennessee, US
United States Postal Service
Headquarters: Washington, D.C., US
TNT
Headquarters: Hoofddorp, Netherlands