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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.
Modules and Project Freight Management
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.
Modules and Project Freight Management
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.
Modules and Project Freight Management
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.
Modules and Project Freight Management
Design to ship
Modules and Project Freight Management
Design of
lifting
frames or
spreaders
Modules and Project Freight Management
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
Modules and Project Freight Management
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.
Modules and Project Freight Management
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.
Modules and Project Freight Management
Modules and Project Freight Management
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
Modules and Project Freight Management
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
FCL In-Gauge Out-Gauge Entity
Classes
LCL Convent. RoRo
FCL In-Gauge Out-Gauge Entity
Classes
LCL Convent. RoRo
FCL In-Gauge Out-Gauge Entity
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.
Weights and Volumes Freight Tonnes
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.
Weights and Volumes Freight Tonnes
Weight in Tonnes Volume in CBM Quantity
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
Weights and Volumes Freight Tonnes
Weight in Tonnes Volume in CBM Quantity
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
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No
Yes No
Yes
No
No
No
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No
No
No
No
No
No
Yes No
Yes
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Yes
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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
Modules and Project Freight Management
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!