hitrans – whisky logistics study
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HITRANS – Whisky Logistics Study
Presentation toFTAFrank Roach 14 June 2011
Whisky Logistics Research | 17/05/11
Structure of our Presentation
Introduction Background Methodology Consultation Spreadsheet-based Tool Results Implications for the Whisky Industry Commission Deliverables
Whisky Logistics Research | 17/05/11
Background
MVA Consultancy and Caledonian Solutions were commissioned by HITRANS to review the current and future logistics requirements of the whisky industry and the corresponding impacts on the strategic transport network in the HITRANS area
The study is designed to:
collate information on current logistics of the industry, focusing on the movement of products to, from and between facilities in the HITRANS area; and
forecast how the relevant supply and demand may change over time and the likely impact of these changes on the transport infrastructure
Whisky Logistics Research | 17/05/11
Study Area - HITRANS
HITRANS is the Regional Transport Partnership for Highlands, Western Isles, Orkeny, Argyll and Bute and Moray
Home to 75% of Scotch Malt distilleries, producing almost 90% of all Scotch Malt Whisky
Keen to ensure adequate infrastructure and logistical support is provided for this important Scottish industry
Whisky Logistics Research | 17/05/11
Current Ownership of Distilleries
‘The Big-5’ Diageo(25)
Chivas (12)
Edrington (4)
Grants (3)
Whyte and MacKay (3)
plus a large number of smaller 1-2 distillery operators
Whisky Logistics Research | 17/05/11
Methodology
3 Strands to our Approach
Strand 1 – Consult with key stakeholders involved in whisky-related logistics, documenting specific issues, constraints and opportunities which impact upon the industry
Strand 2 – Investigate the logistical requirements of the whisky industry, including movements of barley, malt, spirit, byproducts and fuel, develop a tool to predict future requirements based on growth scenarios and predict the corresponding impacts on the strategic transport network
Strand 3 – Present results via map-based formats which can be displayed and interrogated interactively via the freight section of HITRANS website
Whisky Logistics Research | 17/05/11
Stakeholder Views - Road-based Issues
Majority of transport movements are undertaken by road Due to geography; and Flexibility
Haulliers use the main trunk road network, understand problems occur and are generally content to work round these
Problems noted with the alignment of the A95 between Aviemore and Aberlour and lack of safe overtaking/dualling on the A9
Importance of keeping the strategic routes open in winter noted
Issues with empty running
From 2024 requirement to replace or refurbish all tankers to ‘bottom fill, bottom discharge’
A83 ‘Rest and be Thankful’ and other network-reliability issues
Fuel costs
Speed limits
Access roads/links
Whisky Logistics Research | 17/05/11
Stakeholder Views - Rail
Currently no whisky-related freight movements undertaken by rail in the HITRANS Region
2010 SWA Transport and Safety Group set up to investigate appetite for modal shift to rail, identifying potential constraints
Rail freight requires critical mass - industry-wide or major player co-operation needed to make feasible)
Elgin appears to be the most appropriate rail head (but requires further investment/development)
Rail is constrained by the requirement for road shunts at either end of journey
No subsidy available to cover the increased costs and hence currently no effective financial incentives to move to rail
Whisky Logistics Research | 17/05/11
Stakeholder Views – Sea-borne
Critical aspect of the industry needed to access, supply and unload goods from island distilleries
Apart from Islay, all island-based distilleries rely on commercial ferry services
Islay imports much of its barley by coastal freighter, other products are ‘road-based’ via the commercial ferries from Kennacraig (NB these are affected by the current ‘closure’ of Port Ellen) Limited capacity on ferries – problematic for future growth
Reliability issues affect hauliers and in turn the industry
Empty-running a particular issue
Whisky Logistics Research | 17/05/11
The Spreadsheet Tool
Bespoke tool working back from published maximum capacity figures
Uses 14 distinct geographic clusters
Identifies volumes of inputs/outputs and likely number of transport journeys required
Allocates these movements to the strategic transport network
Chaff
Draff and Pot Ale
Bulk Spirit
Casked to warehouse
Dark Grains
Grain
Fuel
Malting
Distillery
Whisky Logistics Research | 17/05/11
Area Clusters
13 distinct area clusters
Additional area representing Invergordon Grain Distillery
Allows similar characteristics to be modelled
Tool allows each area cluster to be investigated individually rather than the study area as a whole
Vehicles placed onto links rather than every individual origin/destination
Whisky Logistics Research | 17/05/11
Routes
20 distinct links
Additional link representing Islay Ferry
Vehicles placed onto links rather than every individual origin/destination
Allows flow of vehicles and materials to be charted across the network
Each link ‘clickable on GIS-based mapping (viewable via HITRANS website)
Whisky Logistics Research | 17/05/11
Routing Assumptions
Routing assumptions based on consultation and our knowledge of the industry
Forecasts total flows (volumes and vehicles) using all of the key links of the network
Tool allows growth assumptions to be varied by location
Also allows user to vary assumptions regarding ‘recycling’ of by-products
Reported using GIS-based mapping (viewable via HITRANS website)
Whisky Logistics Research | 17/05/11
Typical Outputs
Whisky Logistics Research | 17/05/11
Key Results
Route Daily Whisky Flow
AADT HGV % Whisky % of HGV’s
A9 Invergordon 96 11015 8% 11%
A9 Aviemore 136 7568 14% 13%
A95 Grantown on Spey
377 7483 10% 50%
A83 Tarbet 8 2462 8% 4%
A82 Loch Lomond
11 10138 6% 2%
Whisky Logistics Research | 17/05/11
Implications & Recommendations
Whisky industry will need to consider how significant future growth will be catered for
This will determine corresponding future traffic growth on relevant key transport links
Growth of freight traffic on many of these routes will have significant impacts on the rest of HITRANS economy
Continue to investigate options for modal shift – but ‘realism’ required
Capacity of ferries is likely to become a crucial constraint
Local and National Authorities need to recognise the value of the industry and support where necessary
In particular, the need to invest in winter maintenance and other measures to maintain network reliability
Whisky Logistics Research | 17/05/11
Any Questions
?
Whisky Logistics Research | 17/05/11
Contact us
Name: Chris PatersonTelephone number: 0141 225 4415Email: cpaterson@mvaconsultancy.com
www.highlandrailfreight.com
Office address: 7th Floor, 78 St Vincent Street, Glasgow, G2 5UB.
Whisky Logistics Research | 17/05/11
Document control SheetProject title: HITRANS – Whisky Logistics Research
MVA project number: C3A43000
Document type: Working Presentation
Directory & file name:
Document ApprovalPrimary author: Chris Paterson
Other author(s):
Reviewer(s): David Connolly, Alan Wolstenholme
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