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

• GDP

– South Africa $0.35 trillion – Europe $19.70 trillion – France/Germany $6.26 trillion Today Forecast for 2040 Road Rail Current 164 149 Optimal split 134 179 10 year target 167 200 Line haul tonne-km (billion)

• 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 conta tainers Semi mi-tra railers rs TelliB lliBox Stackable Yes No No Yes Trimodal Yes Not for SSS Not for SSS Yes

Categorised Criteria

• Public safety
• Low

infrastructure costs

• Good service level
• Frequent

availability

• Freight safety
• Low damages
• Frequent

deliveries

• Consistent

deliveries

• Low costs
• Flexibility
• Low costs
• High service

levels

• Low accident

rates

Shipper ers Rec ecei eivers LP’s ’s Local A Auth thoriti ties Societ ety

Project 1: Intermodal Infrastructure choice

Project 1: Intermodal Infrastructure choice Decision Matrix

• Rows: Decision Criteria
• Columns: Intermodal Solutions
• Scoring
• Subject Matter Experts
• Weighting
• Subject Matter Experts

Inte termodal s soluti tions COFC Piggyback: Trailers Piggyback: Trucks Ad Hoc TOFC: Modalohr RoadRailers Weighting De Decision n Cr Criteria: S : Stakeholder R Requirements Shi hipp ppers Frequent Availability Good Freight Safety Low Freight Damage Rec ecei eive vers High Delivery Frequency Consistent Deliveries LSP's Highly Accessible Equipment Good Flexibility Infrequent Repairs Low Maintenance Cost High Terminal Utilization Employee Satisfaction Aut Autho horities Low Public Roads Damage Good Use Existing Infrastructure General Society Low traffic & collisions All S Sta takeholders Low Investment 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 facilities and national warehouses Company X customers Company Y DCs

Project 2: Processed Foods Demand Results: “From-To” charts

Factory – DC (retailer) Factory – Storage/Consolidation facility

[TEUs per week] [TEUs per week]

Project 2: Processed Foods Demand Results: “From-To” charts

Storage/Consolidation facility – DC (retailer) DC (retailer)– DC (retailer)

[TEUs per week]

Project 3: Textile Results: Origin - Destination

[TEUs per week]

Project 4: Beverages – Superimposed, high-level view of the Long-Distance Alcoholic Beverage Industry

(Source: Own compilation from DGB, Distell, KWV and Vinimark data) [TEUs per week]

Project 5: Geographical automotive freight flow maps

Project 7: Clustering Logic - Freight Proximities

Terminal

Freight within 50km Freight within 100km Freight within 150km > 150km

With respect to terminal location With respect to paired terminal locations

Origin Destination Origin Terminal Destination Terminal Intermodal Road-Only

Project 7: Clustering Logic and Catchment areas

Clustering Scenarios

1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000

Tambo Springs Bayhead BELCON Deal Party Bloemfontein 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 Related volumes (Tonnes)

Clustering Scenarios

1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000

Tambo Springs Bayhead BELCON Deal Party Bloemfontein 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

Clustering Scenarios Related volumes (Tonnes)

Freight Proximities

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

Project 7: Clustering Logic - Freight Proximities

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

ZAR102,871,643.00 ZAR57,218,203.00 ZAR126,195,549.00 ZAR85,436,439.00 ZAR60,706,796.00 ZAR70,258,389.00 ZAR14,890,844.00 ZAR14,964,494.00 ZAR112,063,990.00 ZAR62,469,983.00 ZAR204,304,782.00 ZAR141,258,122.00 ZAR92,470,668.00 ZAR108,792,836.00 ZAR22,650,473.00 ZAR24,574,157.00 BA Y H E A D – T A MBO S P RI NGS T A MBO S P RI NGS - BA Y H E A D BE LC ON - T A MBO S P RI NGS T A MBO S P RI NGS - BE LC ON 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 S P RI NGS T A MBO S P RI NGS – DE A L P A RT Y

Intermodal Cost Direct Road-only Cost

Outline

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

29

Research Impact

• Provided a first understanding of potential freight owner requirements in

terms of:

– order-qualifying and – order-winning criteria.

• Further investigation with large scale corridor users in South Africa would be

needed.

• The clustering logic was tested to determine the practical distances from and

between intermodal terminals that will deem an acceptable service proposition for freight owners to accept modal shift. This includes typical transfer times from origin to destination.

• A first attempt at a carbon reduction curve is yet to be established for specific

modal shift market share volumes.

Practical Impact: Cape Town - Gauteng

Catchment areas Cape Town = 60 miles Gauteng = 100 miles Import/Export only:

• Tonnes = 0.28 million
• Tonne-km = 0.4 Billion
• Trains per week = 7.6 (sum)

Domestic & Import/Export:

• Tonnes = 1.67 million
• Tonne-km = 2.5 Billion
• Trains per week = 46 (sum)
• Truck trips = 800 per week (reduction)

Note: Six (6) commodities 100% market share

Practical Impact: Durban - Gauteng

Catchment areas: Durban = 60 miles Gauteng = 100 miles Import/Export only:

• Tonnes = 0.95 million
• Tonne-km = 0.57 Billion
• Trains per week = 26 (sum)

Domestic & Import/Export:

• Tonnes = 2.4 million
• Tonne-km = 1.4 Billion
• Trains per week = 66 (sum)
• Truck trips = 1 150 per week (reduction)

Note: Six (6) commodities 100% market share

Practical Impact

• User requirements
• Stakeholder identification
• The research was intended as a pre-feasibility study to establish a

baseline potential for such a service and test the practicality of the

• peration.
• The practical impact would be to determine if any further investigation

in this regard would be a viable option.

Outline

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

34

Thank you to our sponsors

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Thanks to SRF-SA colleagues Any questions?