LOOKING BEYOND COAL DIVERSIFICATION OF FREIGHT BASKET FOR SUSTAINABLE LOGISTICS MIX BY: K AU ST U VA D I P TA PA N Y IRTS(P) 2015

Transcription

1 LOOKING BEYOND COAL DIVERSIFICATION OF FREIGHT BASKET FOR SUSTAINABLE LOGISTICS MIX BY: K AU ST U VA D I P TA PA N Y IRTS(P) 2015

2 CO2 Emission of various modes of transport PASSENGER (GM/PKM) FREIGHT (GM/TKM) PASSENGER CARS 175 ROAD 160 RAILWAY - 75 RAILWAY 29 AIRWAYS SHIPPING -31 Need to move from truck to rail and inland shipping, which is 5-6 times less carbon intensive

3 Sustainable Commodity Mix- Advent of DFC Potential Commodities Bulk Oilfield Equipment(POL) Automobile White goods, e-commerce fly ash, edible oil, caustic soda, chemicals, petrochemicals, alumina, bulk cement, marble, glass,molasses RAILFRESH refrigerated goods (shrimp export, AMUL trains for perishable commodities), horticulture (fruits & vegetables)

4 Upstream oilfield equipment: Is it the next bulk traffic?

5 The O&G Industry is Zero-Basing its Supply Chain. Rail-Freight can Emerge as a Strategic Control Lever Several Factors are Disrupting Supply Hyper-cyclicity in oil prices mandates frequent Mobilization/De-Mobilization of tools and services The industry is coping with aggressive emission reduction targets via agreements such as COP21 Technological advancements in enhanced oil recovery and fracturing are allowing more production from existing fields Railways: The Knight in Shining Armor Rail-freight offers a cost effective transportation option at 50% of trucking costs Railways use 1/3rd fuel compared to road transport and is safer from a per/km travelled perspective Ability to add more rakes allows supply chain agility to transport sand and polymers needed for fracking & EOR

6 Is Oil and Gas industry ready to collaborate? Win-win situation for both? Volatility Volatile but range bound oil prices Uncertainty Regulations, governments, OPEC, geopolitics Complexity Multiple moving parts, Many different vendors/products Ambiguity Growth of renewables and rise of electric cars Is the drop in crude oil price from the highs of 2014

7 Bulk cargo in POL segment Oil field equipment containerisation: Drill pipes Drill collars Frac sands & proppants Steel coils Heavy machinery According to EIA study estimated the amount of upstream truck trips required for just one multi-well pad (assuming two rig and equipment deliveries for 8 wells) to be between 5,850 and 8,905 trucks

8 Potential OD pairs Mundra, Kandla Port to Barmer (Cairn Energy) Kolkata Port to Guwahati (ONGC, OIL) serving north-east India saving a significant amount of transit time over roadways Potential customers: ONGC, OIL, Cairn India, Schlumerger, Halliburton, Baker Hughes

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11 CAN OUR MODIFIED BOY WAGON & Foldable bulk head-bfns/bost BE USED?

12 PIPELINES-EUR /Modified BRN WAGONS

13 FRAC SAND WAGONS

14 Indian Context- Modified BCCW Wagon for Frac sands

15 Containerized White Goods + e-commerce GATI/DHL VPU trains for courier service Twice a week timetabled ecommerce container train for different customers through aggregation Chartered Cargo Train leasing out rolling stock as per agreed schedule to a private operator levying only haulage charges allowing operator to fix their tariff according to market conditions

16 Automobile segment-potential OD pairs Manufacturing hubs - Pune, Chennai, Sanand, Maruti plant Gurgaon to metros Focus on Specialized Rolling like BCACBM/NMG (New modified goods) Concept of moving dump yards Delivery of new cars using Kandla/Mundra port and rail connectivity and then bring back used cars for recycling to Alang North east-guwahati takes six days by rail compared to 14 days by road International freight linkage- CONCOR to Bangladesh Electric cars transportation in the future- get your wagon charged while you are transported Issues -specialised ramps for multi-level loading of the wagons & rail terminals that handle finished vehicles often do not have sufficient space for aggregation and truck manoeuvring.

17 Automobile segment DETROIT- Automobile terminal Despatch: 700 per day by rail

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19 Agri-Logistics Rail Fresh Rail Transport requirements Reefer Stock Aggregation Temperature Controlled Warehousing Modified refrigerated luggage vans Clone trains/long hauls for horticulture produce Refrigerated goods

20 Challenges transformed into opportunities More investments may be needed for port connectivity routes. Prepare dynamic demand and supply matrix Tariff based on input costs Le erage rail ay s stre gths i lo g haul a d ulk. Introduce differential pricing in the bulk segment

21 What Should Be The Strategy? transforming rail ays as a ful ru commodity basket i I dia s gree tra sportatio grid y di ersifyi g the tying up with logistics providers & freight forwarders to aggregate diversified freight basket. Investment in technology to ensure service predictability and cargo control to the last mile setting up of Logistics Corporation. reset of I dia s logisti s se tor fro a poi t-to-poi t odel to a hu -and-spoke odel. Thus, Sustainable Logistics is both a responsibility and an opportunity

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