THE DE-CARBONISATION ABILITY AND PRACTICALITIES OF A DOMESTIC - PowerPoint PPT Presentation

THE DE-CARBONISATION ABILITY AND PRACTICALITIES OF A DOMESTIC INTERMODAL FREIGHT TRANSPORT NETWORK FOR SOUTH AFRICA Department of Industrial Engineering, Stellenbosch University Department of Logistics Management, Stellenbosch University Dr Joubert van Eeden, Zane Simpson, Prof Jan Havenga

Outline • Background • Purpose of study • Research Approach • Findings and Originality • Research Impact • Practical Impact • Q&A 2

Background: South Africa’s freight demand is high Today Forecast for 2040 GDP • – South Africa $0.35 trillion – Europe $19.70 trillion – France/Germany $6.26 trillion Line haul tonne-km (billion) Road Rail Current 164 149 Optimal split 134 179 10 year target 167 200 Last mile tonne-km 132 billion • Also: • 8 billion in pipelines – 1 billion on conveyor belts –

Background • Royal Academy of Engineering: IAPP funding • High density catchment areas lead to more efficient terminals • Connections between these areas can lead to more dense flows • Eight (8) student projects: – Intermodal Infrastructure choice (x1) – Determine Freight Demand (x 5) – Design Supply of service (x2)

Purpose of study • An early feasibility test of an intermodal service in South Africa. • Testing the potential freight demand availability by: – Analysing origins and destinations, – Palletisable commodities – Between major cities. • Analyse relative distances between origins and destinations to gravity based freight intermodal terminals in major cities. • Analyse the supply side factors related to delivering such a service : – Infrastructure requirements and – Operational practicalities. • The decarbonisation impact of such a service will also be tested.

Outline • Background • Purpose of study • Research Approach • Findings and Originality • Research Impact • Practical Impact • Q&A 6

Research Approach • Identify origins and destinations for major freight flows deemed as palletisable commodities (six included), and • Interviews with typical freight owners within the relevant industry sectors to establish: – Operational requirements and – Key success criteria in terms of especially time and cost aspects. • Analyse the gravity based concentration points of these in each major city. • A service delivery plan was hypothesized to model the practicality of delivering the proposed service. • The output of this would be to identify the required infrastructure capacity and efficiencies to operate a service within the required boundaries.

Research approach (…)

Outline • Background • Purpose of study • Research Approach • Findings and Originality • Research Impact • Practical Impact • Q&A 9

Findings and Originality • Preliminary findings indicate that: – Considerable palletisable corridor freight volumes are available. – Key transport mode decision criteria for freight owners currently is and will possibly remain a dependable transport time from origin to destination. – The proposed intermodal service will have to be responsive enough to match the current road delivery cycle times and make it a competitive service. • Thus network design for collection, modal transfer, rail transport, and delivery times will have to be planned fairly responsive in order to provide a comparable service.

Project 1: Intermodal Infrastructure choice Intermoda dal L Loadi ding ng U Units: s: ISO c O container ers Swop B Body Semi mi-tra railers rs TelliB lliBox conta tainers Stackable Yes No No Yes Trimodal Yes Not for SSS Not for SSS Yes

Project 1: Intermodal Infrastructure choice Categorised Criteria Shipper ers LP’s ’s Rec ecei eivers Local A Auth thoriti ties Societ ety • • • • • Public safety Good service level Flexibility Frequent Low accident • • • Low Frequent Low costs deliveries rates • • infrastructure availability High service Consistent • costs Freight safety levels deliveries • • Low damages Low costs

Project 1: Intermodal Infrastructure choice Inte termodal s soluti tions Ad Hoc TOFC: RoadRailers Piggyback: Piggyback: Weighting Modalohr Decision Matrix Trailers Trucks COFC Shi hipp ppers Frequent Availability Good Freight Safety Low Freight Damage  Rows: Decision Criteria Rec ecei eive vers High Delivery Frequency Requirements Consistent Deliveries  LSP's Columns: Intermodal Solutions Highly Accessible Equipment Good Flexibility : Stakeholder R Infrequent Repairs  Scoring Low Maintenance Cost High Terminal Utilization Employee Satisfaction Criteria: S  Subject Matter Experts Aut Autho horities Low Public Roads Damage n Cr Good Use Existing Infrastructure Decision General Society  Weighting Low traffic & collisions De All S Sta takeholders Low Investment  Subject Matter Experts Low Environmental Impact Gen ener eral In Inter ermodal Nee eeds Easy Mode Integration Short Transfer Times Total Score %

Project 2: Demand potential for intermodal processed foods

Project 2: Processed Foods Industry partners Company X factories, storage Company X customers Company Y DCs facilities and national warehouses

Project 2: Processed Foods Demand Results: “From-To” charts Factory – DC (retailer) [TEUs per week] Factory – Storage/Consolidation facility [TEUs per week]

Project 2: Processed Foods Demand Results: “From-To” charts Storage/Consolidation facility – DC (retailer) [TEUs per week] DC (retailer)– DC (retailer)

Project 3: Textile Results: Origin - Destination [TEUs per week]

Project 4: Beverages – Superimposed, high-level view of the Long-Distance Alcoholic Beverage Industry [TEUs per week] (Source: Own compilation from DGB, Distell, KWV and Vinimark data)

Project 5: Geographical automotive freight flow maps

Project 7: Clustering Logic - Freight Proximities With respect to paired terminal locations With respect to terminal location Freight within 50km Freight within 100km Freight within 150km Terminal > 150km

Project 7: Clustering Logic and Catchment areas Destination Origin Origin Destination Terminal Terminal Intermodal Road-Only

Project 7: Clustering Logic - Freight Proximities Clustering Scenarios Clustering Scenarios Related volumes (Tonnes) Bloemfontein Deal Party BELCON Bayhead Tambo Springs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 Domestic Imports/Exports TERMINAL Domestic Imports/Exports % of Domestic BELCON 2,650,419 824,911 31,1% Tambo Springs 3,305,437 928,890 28,1% Bayhead 2,816,547 1,249,653 44,4% Deal Party 703,217 168,932 24,0% Bloemfontein 255,690 35,882 14,0% Total 9,731,309 3,208,268 33,0%

Project 7: Clustering Logic - Freight Proximities Clustering Scenarios Clustering Scenarios Related volumes (Tonnes) Bloemfontein Deal Party BELCON Bayhead Tambo Springs 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 Domestic Imports/Exports TERMINAL Domestic Imports/Exports % of Domestic BELCON 3,105,957 1,118,659 36,0% Tambo Springs 5,347,592 1,528,204 28,6% Bayhead 3,696,464 2,058,895 55,7% Deal Party 1,984,817 526,459 26,5% Bloemfontein 1,362,900 231,217 17,0% Total 15,497,731 5,463,434 35,3%

Project 7: Clustering Logic - Freight Proximities Freight Proximities 1800000 1600000 35% 13% Freight Volums (Tons) 1400000 1200000 22% 1000000 49% 800000 Demand 41% 600000 82% Supply 57% 86% 53% 61% 74% 77% 90% 65% 70% 400000 67% 92% 94% 95% 97% 200000 97% 0 0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 Distance from Paired Terminals (km) 4000000 40% 3500000 67% Freight Volumes (Tons) 3000000 2500000 2000000 Demand 1500000 Supply 78% 1000000 7% 88% 71% 96% 500000 81% 92% 89% 82% 90% 93% 97% 97% 98% 98% 96% 98% 98% 98% 0 0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 Distance from Terminal (km)

Project 8: Train Scheduling – The weekly schedule outputs per corridor for Scenario 2 (Conservative market share)

Project 8: Train Scheduling – Extract from schedule for loco 1 in scenario 2 (Conservative Market share)

Project 8: Train Scheduling – Intermodal cost vs. Road only cost for a conservative market share in 2017 Intermodal Cost Direct Road-only Cost ZAR204,304,782.00 ZAR141,258,122.00 ZAR126,195,549.00 ZAR112,063,990.00 ZAR108,792,836.00 ZAR102,871,643.00 ZAR92,470,668.00 ZAR85,436,439.00 ZAR70,258,389.00 ZAR62,469,983.00 ZAR60,706,796.00 ZAR57,218,203.00 ZAR24,574,157.00 ZAR22,650,473.00 ZAR14,890,844.00 ZAR14,964,494.00 BA Y H E A D – T A MBO T A MBO S P RI NGS - BE LC ON - T A MBO T A MBO S P RI NGS - BE LC ON – BA Y H E A D BA Y H E A D - BE LC ON DE A L P A RT Y - T A MBO T A MBO S P RI NGS – DE A L S P RI NGS BA Y H E A D S P RI NGS BE LC ON S P RI NGS P A RT Y

Outline • Background • Purpose of study • Research Approach • Findings and Originality • Research Impact • Practical Impact • Q&A 29