Assignment 2 (850 words max)

Assignment 2 (850 words max)

Saturday, 23 July 2022

12:07 PM

You work for a coal mining company located in regional Western Australia. Your team is responsible for the transportation management activities of the business, including all the necessary tasks for moving the items. As the result of growing demand for coal, the company is growing, and they are planning increase their production. Your managing director has tasked you to prepare a transportation plan for importing a recent purchase of a large hydraulic shovel.

This large equipment was purchased second hand for a good price from a closed mining company located in Pasco, Peru. This is a new exercise in your company and your manager wants you to brief her on the current industry practices for importing such large equipment. In addition, you must develop and recommend a sound and cost-effective transportation plan for the proposed import plan.

These are my parts to be covered:

Current status of transportation management - 600 words

Explain the current transportation practice (such as modes of transportation, handling equipment and units) used by the industry for such type of work, including why.

If data is available, explain how the company currently manages its transportation, including upstream (suppliers) and downstream (customers), and why. For example, do they manage functions in house, or do they use third-party logistics?

Recommendations : 200 - 250 words / point

Provide a sound transportation plan for importing the mining equipment from Peru to Australia. Your transportation plan must provide the reasoning behind transportation decisions, giving a balanced justification for the basis of decisions. The plan must include the network design, regulatory consideration (customs for example) and costing.

Details for the assignment our team had chosen to cover:

Coal mining in Western Australia

In WA coal is mined in the area known as the Collie basin. There are two mines that operate in this area: The Collie premier coal mine, and the Ewington coal mine.

https://exhibitions.slwa.wa.gov.au/s/mewa/page/coalCollie premier Mine - YANCOAL/ premier coal

- https://www.yancoal.com.au/page/en/assets/mine-sites/premier/- https://www.premiercoal.com.au/page/company-profile/Primary uses

- 80% for energy

- The remaining 20% is used in mining processes for other materials, cement production, and as an industrial heat source.

Delivery

- Delivered by conveyor directly to Synergys power plant

- The Collie mine has good road and rail infrastructure

Summary

- Information was easy to find

- Domestic use only, no exporting, meaning a limited supply chain transport model.

- Does use conveyors directly to customers

We are importing below second hand machine from Peru.

CATEPILAR mining shovel ( CAT 6015 ) 154.3 tonnes

Shipping company: HAPAG LLOYD

Service:

Port of loading: San Antonio, Chile

Transship: Port of Cartagena, Colombia

Transship: Manzanillo, Panama

Transship: Port of Balboa, Panama

Port of discharge: Fremantle, WA

Shipping process by stages:

Disassembly at shippers location for road transport by heavy haulage trucks

Heavy haulage transport to yard at port of loading for cleaning, washing and packing

Detail cleaning of all parts (wash of all parts to satisfy Biosecurity !!! ) : https://www.youtube.com/watch?v=wS6qc-gzyGQ )

Packing

Loading larger machine parts onto 3 x 40'Flat rack HC ( high cube containers), and 1x40' ( 40 foot dry container) for smaller parts

Road transport of loaded 40' Flat rack High Cube / 40' Platform's to POL terminal for under-hook terminal lifts, to be loaded on the ship

Customs Clearance process at destination

Organizing Heavy haulage & oversize transport at Fremantle by a specialized transport company "Towtal" solutionsPOD terminal under-hook terminal collection and transport to Customs approved depot/yard, that provide both fumigation / wash and quarantine services on site.

Biosecurity in Australia:

Detail inspection and additional wash of certain parts if ordered by AU Biosecurity

Tailgate Inspection ( depending on the delivery location postal code )

https://www.agriculture.gov.au/biosecurity-trade/import/online-services/delivery-postcode-classifications )