Modules & Project Freight Management · Modules and Project Freight Management. ... Over 1000 project logistics ... Project. The scope included transportation of 2 x E-house from

Modules &

Project Freight Management

A Case Study By

&

This is a case study is about the challenges the different parties have in the project

planning and transportation of large modules and in particular Electrical Houses also

known as eHouses. Part of this case study is based on the Tan Burrup Project in Dampier,

Australia although the presentations are very much on the general challenges these

modules bring to the Forwarders and shipping industry.

1. Peter Bouwhuis

(Assistant Vice President Transport & Logistics ABB)

2. Tim Killen

(Vice President Global Key Account Management deugro)

3. Andre Milschus

(Deputy Director Chartering & Operations Hansa Heavy Lift)

Modules and Project Freight Management

Successfully shipping modules of sometimes

over 300mt, like e-Houses or Sub-Stations are a

real challenge.

These prefabricated buildings contain the

plant's electrical and control equipment.

They include the air condition system, fire

detection equipment, and lighting system. They

also contain all the pla t’s elect ical e uip e t,

medium and low voltage switchgears , dry and

oil filled transformers, capacitor bank,

uninterrupted power supply and the motor

drives to i p ove the pla t’s e e gy efficie cy.


See what you can achieve when using only one point of contact and one vendor who

accepts full responsibility:

Reduce risks

With conventional supply of equipment to an EPC, oil

and gas company, etc multiple suppliers are involved.

This means that, even with any minor change to the

electrical loads, there will be a ripple effect of changes

to, e.g, the switchgear, drive torque, number of I/Os,

electrical manhousing layout and air conditioning

requirements, requiring the company to communicate

the change with each supplier, as well as with the

electrical house fabricator, who must then make the

appropriate changes. The risk of errors associated with

this type of setup is high.

Contracting a single vendor to supply the equipment

and manage the electrical house can mitigate this risk.


See what you can achieve when using only one point of contact and one vendor

who accepts full responsibility:

Reduce costs

Costs can be incurred in any number of ways. And

when it comes to the supply of electrical and

automation systems, one of the quickest ways to

incur them is by using multiple suppliers who

must then install the equipment at quite often

remote locations.

With a single-vendor setup, the complete system

is shipped fully functional and ready to go.

Further, the prefabricated enclosures or electrical

houses can be shipped as modules, requiring only

a small amount of on-site assembly (Plug-n-Play).

In addition, the reduction in on-site work results

in significant financial savings.


See what you can achieve when using only one point of contact and one vendor

who accepts full responsibility:

Reduce delivery time

The traditional multivendor approach to equipment delivery

demands that the electrical house must be complete before the

products can be delivered, installed, cabled and commissioned.

With prefabricated electrical houses, this can be done in parallel

and the working system can be delivered to the site in one

package, reducing the amount of time required for the delivery

and installation process.

Weight and size are key factors when the electrical house is

installed e.g. on an offshore platform or as a module on top of a

floating, production, storage and offloading (FPSO) vessel. This

makes the interaction between the switchgear manufacturer and

the electrical house fabricator even more crucial since there is no

room in the electrical house to accommodate changes to the

switchgear.


Design to ship


Design of

lifting

frames or

spreaders


Dealing with great number of vendors Globally RFQ Process to start long before the start of the project

Selecting the right Project Forwarder to perform the Project Freight Management Occupational Health and Safety ABB is committed to health and safety, not only out of concern for its staff and business colleagues, but also to ensure its products and engineered solutions comply with the highest standards. Comprehensive risk assessments are Safety standards are applied to the technical design and project delivery stages to ensure compliance throughout


Successful electrical house

delivery

Each electrical house project is a

customized, engineered solution with

unique requirements.

Marine warranty surveys and feasibility

studies for factors such as heavy lifting,

preservation, sea fastening, and load-

out procedures are carried out for every

offshore or onshore project.

Close cooperation with our insurance

company’s Risk Management is crucial in this as well as direct contact with all the

major parties in the whole process.


Choosing the right partners for

the transport and delivery of

eHouses or modules in general

is a crucial factor and is never

taken lightly.

This case study based on the

Tan Burrup Project however it is

also more based on the general

challenges in the transportation

of large modules.



Having the right tools in place for

Project Freight Management is a must.

ProjectSmart is the ABB tool for the

future.

One place, one update, 50% less emails


So how do our partners deal with

projects like this?

You ll hear fro Mr. Tim Killen

(VP - Global Key Account Management)

deugro on the feed study and pre-

pla i g……

….a d ou ll hear fro Hansa Heavy Lift on how to deal

with the planning and preparations for

the ocean freight of eHouses and

odules alike…

WELCOME TO DEUGRO Date: May, 2014

THE DEUGRO MISSION | WHO WE ARE

deugro was founded in 1924 in Frankfurt, Germany. We are and always have been a privately held

company in our third generation of ownership.

Under the leadership of Thomas C. Press deugro

is headquartered in Pfaeffikon, Switzerland.

We offer tailored solutions that suit our

usto er s logistics requirements.

deugro offers its clients:

Customer-oriented business approach within

an efficient network

Quality, Health, Safety, Environment &

Security (QHSES) culture

Solid financial background

More than 70 own offices strategically

located at gateways in over 35 countries

Over 1000 project logistics professionals

Dedicated logistics specialists focused on

core industries

Strategic support functions in areas of QHSE,

Compliance & Security Management,

Transport Engineering, Chartering, IT

Infrastucture & IT-Systems

FEED AND SUPPORT STUDIES

It is important to identify the

limitations on logistics operations

that will impact cost and schedule

before commitments are made

Early involvement of logistics

specialists in research and planning

of a project is imperative to success

Start at the Beginning

The Objective is to work together

with clients to identify the needs

and risks associated with delivering

a heavy lift module project.

Logistics Risks should be

considered as a part of the

complete picture evaluation of the

likelihood of the project being

successfully executed

FEED STUDIES| MODULE DESIGN

Module Design

The Objective is to focus on the primary

issues associated with the design &

movement of heavy lift modules.

Where will the modules be fabricated

Berth & port limitations

Vessel selection

Transport and shipping forces into the

Module steelwork integrity

Incorporating transport and shipping

methods for logistics delivery

(proactive design for ro/ro or heavylift)

Onshore infrastructure limitations

FEED STUDIES| FEASIBILITY ANALYSIS CATEGORIES

Modular Cargo Details

Design, sizes, weight, centre of gravity, lifting

methods, lashing methods, acceleration forces,

packing/protection

Resources

Availability & quality of equipment, personnel,

energy, support services

Infrastructure

Port limitations (weight/tidal/availability), storage,

security, road & highway capacities, hospitals,

FEED STUDIES| FEASIBILITY ANALYSIS CATEGORIES

Governmental & Regulatory

Permits & licences, visas, timescales & process

for document approvals, local content

Legal & Social Interests

Customs & trade control requirements, duty

exemptions, political factors, cultural & ethnical,

compliance, security risk, economic impact, social

impact

Environmental

Geographical, ecological, geological, flora & fauna,

weather, climate, HSE factors

Name Name Name

Fon Fon Fon

E-Mail E-Mail E-Mail

Classes

LCL Convent. RoRo

FCL In-Gauge Out-Gauge Entity

Classes

LCL Convent. RoRo


Classes

LCL Convent. RoRo


Classes

LCL Convent. RoRo


Part of the Project? Dangerous Goods

Dangerous GoodsPart of the Project?

Estimated Start Date Estimated End Date First Point of Contact First Point of Contact First Point of ContactProject Assessment Check List

Project Title Project ID Buyer Customer Own resp. Department

0.4 Cargo Description

0.4.1 Roadway Cargo

There is a wide range of maritime cargo handled at seaport terminals. Automobiles are handled at many ports

and are usually carried on specialized roll-on/roll-off ships. Break bulk cargo is typically material stacked on

pallets and lifted into and out of the hold of a vessel by cranes on the dock or aboard the ship itself. The volume

of break bulk cargo has declined dramatically worldwide as containerization has grown. One way to secure break

bulk and freight in intermodal containers is by using Dunnage Bags. Bulk cargo, such as salt, oil, tallow, and scrap

Dangerous GoodsPart of the Project?0.4.3 Waterway Cargo

Inland Waterway Cargo

Short Sea (Barge, LCT)

Weight in Tonnes Volume in CBM

Weights and Volumes Freight Tonnes

Quantity

0.4.2 Railway Cargo

Trucking long distance

Many firms, transport all types of cargo by road. Delivering everything from letters to houses to cargo containers,

these firms offer fast, sometimes same-day, delivery. A good example of road cargo is fuel, as suppliers require

deliveries every day to keep their stocked with fuel. Retailers of all kinds rely upon delivery trucks, be they full

size trucks or smaller trucks.


Weight in Tonnes Volume in CBM Quantity

Trucking short distance

Trains are capable of transporting large numbers of containers that come from shipping ports. Trains are also used

for the transportation of fuel, steel, wood and coal. They are used because they can carry a large amount and

generally have a direct route to the destination.



Sensitive Cargo

Air cargo, commonly known as air freight, is collected by firms from shippers and delivered to customers.

Eventually manufacturers started designing aircraft for other types of freight as well. There are many commercial

aircraft suitable for carrying cargo such as the Boeing 747 and the bigger An-124, which was purposely built for

easy conversion into a cargo aircraft. Such large aircraft employ quick-loading containers known as Unit Load

Devices (ULDs), much like containerized cargo ships. The ULDs are located in front section of the aircraft. Most



Urgent or sensitive Cargo

Dangerous GoodsPart of the Project?

Standard cargo

0.4.4 Airway Cargo

Standard Cargo

Ocean Freight

Yes

Yes No

Yes No

Yes No

Yes No

Yes No

Yes

Yes

No

No

Yes

Yes No

No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes

Yes

No

No

Yes

Yes No

No

Yes

Yes No

Yes No

Yes No

Yes No

Yes No

Yes

Yes

No

No

Yes

Yes No

No

Yes

Yes No

Yes No

Yes No

Yes No

Yes No

Yes

Yes

No

No

Yes

Yes No

No

Yes No Yes No

No

No

No

No

No

Yes No

Yes

No

No

No

No

No

No

No

No

No

No

Yes No

Yes

No

No

No

No

No

Yes

No

No

No

No

No

No

No

No

No

No

Yes No

Yes No

Yes No

Yes No

TAN BURRUP PROJECT

TAN BURRUP PROJECT

Overview:

deugro was appointed by ABB to perform a FEED study, commercial proposal and project execution for the Tan Burrup

Project.

The scope included transportation of 2 x E-house from a private jetty in Tianjin, China to the project site in Dampier,

Australia.

Cargo Description Qty Dimension

Weight (Tons) L (m) W (m) H (m)

E-House 1 1 28.49 13.21 6.96 320

E- House 2 1 31.50 11.21 6.96 330

Lifting Frame 1 1 14.00 9.50 0.60 5

Lifting Frame 2 1 14.00 8.80 0.60 5

Cargo details:

TAN BURRUP PROJECT

Scope of Work

The scope of work for the freight forwarder on this project shipment includes the following:

Dire t loadi g of argo fro supplier s trailers o to essel essel s o gear

Lashing and securing of cargo onto vessel

Customs clearance and documentation

Dis hargi g of argo o to arge essel s o gear upo arri al at Da pier Port, Australia

Barging to Pluto / RORO wharf, roll-off and transportation to the site

Customs clearance and documentation at Dampier port

Obtaining permit and permissions for road transportation from all the relevant authorities

INTEGRATED PROJECT TEAM

In order to support the Tan Burrup Project heavy lift module project deugro used the

skills, experience and network from within the organization to provide a dedicated

integrated project team. The project team is made up with specialists from within the

following areas of the business:

LEAD Project Office – Singapore

Supporting Project Offices – China & Australia

TED (Transport Engineering Department)

QHSES

Compliance

Chartering Department

Global Key Account Management

TAN BURRUP PROJECT

INTEGRATED PROJECT TEAM

deugro maintains its own Technical Engineering

Department for tailor-made transport planning.

Our Services include:

– Technical Drawings, Method Statements, Route Surveys,

– Operation Attendance/Supervision, Feasibility Studies

– Transport Consultancy, Packaging / Lifting Studies

– Risk Assessments, Damage Prevention

TED Transport Engineering Department

MARINE INFORMATION

Port of Loading: Private Jetty at Tianjin, China | Length - 260m / Draft -11.7m

Total Distance: approx. 3,855 NM

Transit Time: 13 days – 15 days,

Vessel Speed: 14 knots

(Subject to all goes well/weather)

MARINE INFORMATION

Vessel Stowage and Sea Fastening Drawing

MARINE INFORMATION

Port of Discharge:

Option 1 Pluto/HLO wharf

Dampier heavy lift / alternate facility.

Pluto/HLO wharf approx 50m long, draft also about 4.5m.

Port of Discharge:

Option 2 RORO Wharf (Contingency plan)

The most common offloading location is being constructed and was completed in January 2014.

Draft at the ramp is around 4.5m max.

Vessel Solution:

Due to restrictions at the Dampier Heavy Lift quay only a small number of vessels were available to berth directly.

Therefore the there are currently two operational method chosen for the discharge of the E-Houses, either direct

from H/L vessel to quay or a transfer onto a flat top barge at anchorage and then ro/ro discharge to the quay.

PROCESS DRIVEN ORGANIZATION

1. Marketing 2. Tender 3. Start-up 4.Planning 5.Voyage 6. Close-

out

Opportunity

Key Account

Management

CARGO PLANNING VOYAGE EXECUTION

Order

RFQ

Tender

Management

Team & Plan

Prepare overall

project plan for a

specific cargo

Team & Plan

Prepare and

coordinate

preparation of

voyage

documents

Delivered Cargo

Complete the

voyage on

budget and on

time

Successful

Business

Understand how

next voyage can

be improved

CARGO / VESSEL PRE-PLANNING

KEY POINTS

• Does the cargo physically fit on-board of the vessel?

• How does the weight exposure (ton per square meter)

calculate?

• Does load distribution on hatch covers need to get

considered?

• Check transport drawings COG, lifting points etc.

• Is the Li e of sight o stru ted ith odule o oard? • Double crane operation or single hook lift?

• Required draft study for lifting/discharging (with ballast)

and for transportation

• Will any special MWS rules apply (Noble Denton)?

INFRASTRUCTURE PRE-PLANNING

KEY POINTS

• Any restrictions at Port of of loading (draft, channel approach, tidal, length of the ship, airdraft, etc.)?

• Any restrictions at the Port of discharging?

• Are stevedoring, welding, lashing resources available?

• Do the ports restrict work to daylight only?

• Could outreach to SPMT/trailer/barge become an issue?

• Pre-OPS meeting with pilots/harbor master in case of challenging environment (e.g. HANSA Heavy Lift vessels have been made Fenit-max, Trondheim-max, and Hamriyah-max vessels in that way).

START UP & VOYAGE PLANNING

KEY POINTS

• Final performing vessel gets determined and nominated by

HHL

• Issue Method statement and risk assessment

• Co du t i ter al “tart-up eeti g ith all stake holders: – Key Account Manager / Chartering Manager

– Transport Engineer / CSI / Port Captain

– Operations

• Take into account further completion cargoes that may have

been booked in the meantime or can be booked

• Set and communicate payment terms and other relevant

terms of the Booking

EXECUTE VOYAGE

KEY POINTS

• Communication (ETA load-port, ETA discharge-port, progress while in port, noon reports if agreed)

• Supervise welding of stoppers/location/numbers/welding type

• Supervise lashing/way of lashing and numbers of chains

• Apply Weather Routing, if agreed

• Distri ute fi al as loaded sto age pla a d e ha ge further relevant information after loading

• Ensure voyage meets all agreed conditions and is on time and on budget

CLOSE OUT

KEY POINTS

• Close-out meeting held after successful load-out at destination with all stake holders:

– Project Manager

– Key Account Manager / Chartering Manager

– Operations / Engineering

– Customer

• Gain experience from each project and communicate „lesso s lear ed to the e tire tea

• Ensure continuous improvement mindset of organization

EXECUTION EXAMPLES

EXECUTION EXAMPLES

PORT OF DAMPIER

Pluto Wharf in Dampier

Draft at the ramp is 4.5m max

Discharge proposal is to be

completed using ro/ro barge

and hydraulic axles

PORT OF DAMPIER

Pluto Wharf in Dampier

Draft at the ramp is 4.5m max

Discharge proposal is to be

completed using ro/ro barge

and hydraulic axles

EXAMPLE RO/RO OFFLOAD

BARGE STOWAGE & ROLL-OFF OPERATION

ROUTE FROM DAMPIER TO PROJECT SITE

A: Dampier Port (Pluto Wharf / RORO Wharf)

B: TAN Burrup Project Site

Distance from port to Site: 5-6 Kms (approx.)

No major hindrance except the centre post at

port gate, removal of electric poles,

reinforcement of road and removal of crash

Barrier.

ROUTE SURVEY REPORT

LAND TRANSPORTATION DRAWING -001 & 002

AQIS/DAFF REQUIREMENT AND COMPLIANCE

QHSES/COMPLIANCE & VENDOR MANAGEMENT

QHSES and Compliance philosophy and rules plays a critical role throughout all levels of

deugro.

On the Tun Burrup project deugro produced a project specific QHSES plan including

Performance Monitoring, Auditing and Review and Emergency Planning

Vendor Performance Monitoring, Auditing and Review are Key Element of Managing QHSES

Compliance in Project Logistics Operations:

deugro subcontractors are screened by the Corporate QHSES & Compliance representatives

using the o pa s Sanction Lists Screening tool and other QHSES sources. Subcontractors

have to adhere to the deugro Anti-Corruption Compliance Policy, Code of Conduct policy and

QHSES Policy by reviewing the documents, positively engaging with deugro and signing

acknowledgment records form.

Corporate sourcing processes allow for vendors to be monitored, regulated and reviewed to

ensure that in a pool of accredited deugro subcontractors who work with deugro to deliver the

highest level of safety, quality, performance, communication, risk mitigation and schedule

certainty

LESSONS LEARNT

1. Early involvement of Project Freight Forwarder – It’s eve too ea ly

2. Select technical logistics delivery strategy at early stage

3. Interface management

• “tro g te h i al a d operatio al e perie e for i tegratio of ari e a d la d o tra tors

• I ol ed parties: MW“, Ocean contractor, customs, stevedores, TED, QHSES &Compliance, barge contractor, etc.

• Clearl define responsibilities of all parties prior to operations

4. Risk Mitigation

• Always have a plan B (and perhaps even C)

• 2 discharge locations to reduce demurrage/delays, Vessel selection options, loading and stowage alternatives, Onshore transport

5. Importation

• I e iro e tall se siti e areas AQIS preparations (cleaning of equipment, customs paperwork,

inspections) are required

• Custo leara e for odules a e sig ifi a t scheduling

6. Local Contractors

• Well ersed i lo al labour & permitting regulations

7. Communication


It is about:

• The right partners (Project Freight Management company and

Carriers)

• The right format of collaboration (Project set-up and rules)

• The right tools for monitoring and tracking (eliminate duplication

of work)

• Health, Safety and Environment

• Risk mitigation at all levels

There are two words that keep coming up in any of the previous

pla s a d i e er proje ts i ge eral, a d the are…

………Co u icatio & Pla i g…..

………………Check a d Ve ify!

Documents

Modules & Project Freight Management · Modules and Project Freight Management. ... Over 1000 project logistics ... Project. The scope included transportation of 2 x E-house from