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Project Logistics in Oil


Project Logistics in Oil ... cost control model to a Outsourced solutions model Health & Safety in Logistics is NON NEGOCIABLE Look for Green Logistics ... – PowerPoint PPT presentation

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Title: Project Logistics in Oil

Project Logistics in Oil Gas industry
  • Agility A brief
  • A Macro Over view of the Logistics space
  • Project Logistics Challenges Common Issues
  • HSE challenges
  • Summary
  • Question and Answers


The Scale of Our Business
  • 450 offices
  • 100 countries
  • 6.5 billion revenue (USD)
  • 22,000 employees
  • Top ten logistics service providers
  • Publicly traded
  • 6000 owned vehicles and transport assets
  • 700,000 square meters of environment controlled
  • 800,000 pallet positions

A Global Network with Seven Headquarters
More than 450 locationsIn over 100 countries
Our Comprehensive Suite of Services
Freight Management
Defense Government Services
Project Logistics
Fairs Events
Supply Chain Solutions
High Technology
Oil Gas
Project Logistics Services
  • International freight forwarding Air
    and Sea
  • Inland transport
  • Heavy lift
  • Vessel / Air charters
  • Barging
  • Customs brokerage
  • Export packing
  • Turnkey project management
  • Marine, aviation, and port services
  • Warehousing

Total Logistics Planning
  • Identify scope of work
  • Review implementation schedule/30 day
  • mobilization plan
  • Develop procedures, method statements
  • and KPIs
  • Overcoming geographical limitations
  • Prepare HSE/QA plan
  • Risk Assessments
  • Resource Planning

Long Standing Clients Agility Group
  • Specific EPC/Oil Gas Clients
  • Baker Hughes 24 Years
  • Fluor 24 Years
  • BJ Services 24 Years
  • Hunt Oil 22 Years
  • ABB 22 Years
  • Chevron 20 Years
  • Conoco Phillips 19 Years
  • KBR 18 Years
  • Marathon Oil 16 Years
  • Plus numerous others..
  • that verify the consistent level of service
    provided by Agility

Mega O G projects under execution by Agility
Name of Project Country EPC Contactor Volume (FRT)
Woodside Phase V LNG Australia Foster Wheeler / Worley 250,000 F/T
Khursaniyah Gas Plant Project Saudi Arabia Bechtel / Technip 500,000 F/T
Pearl GTL Project Qatar MW Kellogg / Shell 1,500,000 F/T
Kakinada KG-D6 Block Field Development India Reliance Industries 120,000 F/T
Pluto LNG Project Australia Foster Wheeler / Worley Parsons 500,000 F/T
Yanbu Petrochemical Complex, Offsite Utilities Saudi Arabia Fluor Arabia 200,000 F/T
Habshan Gas Export Project U.A.E. Fluor Mideast 120,000 F/T
SHARQ 3rd Expansion Ethylene Project Saudi Arabia Foster Wheeler 250,000 F/T
Agility India
  • Operational Since 1998
  • Network
  • 26 Offices
  • 43 Logistics Centers
  • 2600 Associates
  • Turnover 1000C
  • International Freight
  • Sea 50000 TEUs
  • Air 30000 Tons
  • B/Bulk 200,000 FRT
  • 3.2 Mil. SFT Warehouse Space
  • In House Customs Clearance


Macro Over view of the Logistics Space
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Energy Investments by Region
Logistics Market in Oil Gas Sector
Estimated Current Logistics Market Size 9
Estimated Logistics Market Size 2030 49 Billion
Average Industry Logistics Spend 7.5
Average Industry Growth Rate 8.0
India as a refining Hub

Logistics Challenges in India
Project Logistics Some Challenges
  • Challenges faced by various user groups / EPC
  • Complex movement of cargo
  • Huge No. of POs placed with vendors based
  • Co-ordination Expediting with various vendors
    located worldwide
  • Varying Processes formalities with authorities
    at each countries
  • Hinter-land movement of ODC / HL cargo at origin
  • Lack of Vessel chartering knowledge to cover
    financial risks
  • Warehouse and distribution facility expertise
  • Shortage of trained manpower to cope up with
    concentrated logistics
  • movement
  • Comprehensive IT tools to manage the process

Project logistics Some common issues
  • Improper Route survey causing delay in
    hinter-land movement
  • additional cost
  • Vessel age Violation of Insurance norms
  • Self geared Vessel Capacity of gear and HL
    package wt.
  • Synchronization of Sea Road transportation
  • Availability of MHE at unloading point ( Port /
    site )
  • Communication gap with outsourced CHA delay in
  • Clearances
  • Non-availability of Tracking system
  • Co-ordination with agencies tied up for global
  • Lack of professional approach
  • Financial strength of project forwarder

Competent Forwarder Key Role in Logistics
  • Competent Forwarder, who has
  • Own global coverage
  • Pool of Experienced Personnel situated at each
  • Track record of handling large projects
  • Own Customs Clearances team to avoid any
  • Owned Transport asset / strategic alliance
  • Excellent chartering knowledge and carrier
  • Visible track trace IT tool for updation of
  • Senior management commitment to support project

Selection of Project Forwarder - Transform
Pre Qualification to Tender
Tender Evaluation
Sufficient time for review Detailed review of
Functional capability Access to IT systems and
assets and subcontractors Financial strength of
the company Past Experience Review of
Credentials Global Coverage (Owned /
Agents) HSE / Accreditations Review and Verify
Shortage of Time Bidders consisting of various
levels Detailed Technical review ??? Focus is
on Pricing L-1 bidder in most cases failed in
operations Incur additional cost or
litigations HSE Big concern High Indirect
Key factors in Project Logistics Movement
  • Route Survey
  • Technical review of most heaviest and ODC
    Package of the project cargo
  • Technical survey covering all hurdles viz.
    overhead wire lines, bridges, railway
  • crossing, overhead bridges, by-passes etc
  • Requirement of permits from statutory
    authorities viz. PWD , Railways,
  • Electricity board, local panchayats etc
  • Vessel Chartering
  • Availability of vessel meeting particular
  • Age of vessel and capacity of self-gear
  • Credential / reputation of Carrier
  • Engagement of reputed Marine Surveyor at each
    stage of operation
  • Assessment of Safety check-list to ensure safe

Key factors in Project Logistics Movement
  • Customs Clearances
  • Project registration formalities under
    particular scheme and process flow
  • Detailed review of customs requirement and
    respective documentation
  • Preparation of detailed process flow for customs
    formalities time frame
  • Identification of dedicated pool of CC staff to
    handle the projects movements
  • In-land Transportation
  • Deployment of suitable equipment to receive
    imported cargo considering
  • weight dimensions
  • Lashing and securing of cargo
  • Escorts arrangement to ensure safe timely
    in-transit journey
  • Detailed journey management plan


HSE Challanges

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Agility HSE Policy
  • Agility Logistics, firmly believes that Health,
    Safety and Environment Protection are an
    essential and integral part of its business
    operations. It has a firm conviction that
    accidents and risk to health are preventable
    through continuous improvement in the working
    environment and compliance to relevant statutory
  • Agility Logistics declares that
  • Its operations are conducted with the Utmost
    Regard for the Safety Health of its Personnel,
    Machinery the Environment at large.
  • It is the best endeavor of the management to
    Follow Sustain Standards Procedures related
    to Health, Safety and Environment Protection.
  • It endeavors to Support Commit the Resources
    necessary to ensure adherence / compliance to
    various standards under relevant statutes.
  • It strives to achieve a Conducive Work
    Environment facilitating active participation of
    its employees in maintaining safe eco-friendly
    business operations.
  • It assures to extend required organizational
    support provide facilities for imparting
    Relevant Information, Instruction, Training, and
    Motivation Encourage Involvement of its
    Employees, Onsite Contractors, Customers and
    Suppliers for implementation of this Safety,
    Health and Environmental Policy.
  • It shall focus its efforts on Recycling, Resource
    Conservation and Management of Wastes, hazardous
    chemicals, emissions and emergencies to
    continually improve the quality, efficiency and
    environmental performance of the processes in the
  • It ensures Continual Improvement of its SHE
    management system through periodic review of its
    policy, objectives targets for relevance,
    changing conditions new information.


Summary and Question
  • Logistics is key and challenging
  • Transform from tender management mode and
    emphasis on pre qualification.
  • Outsource complete logistics activities
  • Look at Supply chain cost optimisation and not
  • Transform from a Fragmented cost control model
    to a Outsourced solutions model
  • Health Safety in Logistics is NON NEGOCIABLE
  • Look for Green Logistics Companies to
  • Your vendor Partners should be able to comply
    with your own HSE policies.

Questions and Answers
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