houston material handling society meeting november 18, 2008
Post on 18-Dec-2015
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Come away with a better understanding of the key elements driving capital projects
Hopefully you will
Develop ideas that improve the marketability of your services and the netback of your projects and products
WE
An equipment manufacturer and general construction organization
Specializing in the design and construction of dry bulk material handling and storage systems
Design
Agrico Sales
FabricateErect
ElectrifyAnd help start up
the projects we build
Engineer
Agrico Sales
•Provides a confidential budget quote to modify a facility
This saves time and money determining if a project meets guidelines for investment
We do this at no cost to you
Agrico’s recent customers include:
ExxonJacobs EngineeringMarathon Ashland PetroleumPetro-Canada/BantrelGreat Lakes Carbon/Aimcor (now Oxbow)Ferrominera OrinocoCII Carbon (multiple projects)Bunge GrainAnsac
Key elements in handling dry bulk
Safety
Environmental Soundness
Reliability and ease of maintenance
Efficient product movement
Safety
In addition to all of the usual safety concerns in a process i.e. refinery, dry bulk handling can add the dimension of mobile equipment such as front-end loaders and trucks
In addition to trucks and front end loaders there may be belt conveyors, reclaimers, etc. which require guards and possibly restricted areas
Environmental
Like safety, environmental has several levels of governmental and corporate regulations to govern its handling and storage every step of the way
In addition to this, dry bulk operations are often considered an eyesore even if all environmental considerations are met
Water sprays at transfers or load points and stockpiles
Chemical additives to water sprays
Scrapers, drip pans & totally enclosed belt conveyors
Wash down systems
Dust collectors
Covered storage
Settling ponds
Environmental equipment:
Reliability and ease of maintenance
Handling systems often need to operate every day. The basics of good preventive maintenance apply to this equipment involved just as it does on other operating units
When building new or revising an existing handling facility, build in as much flexibility as possible because…
Things Change!
Efficient delivery to the market placeThere are many ways to move dry bulk and several of these are often employed between you and the end user
Mobile equipmentPneumaticsBelt conveyorsTrucksRailcarsBargesOcean going ships
Handling methods:
THE TRANSPORTATION COST OF A PRODUCT CAN BE A LARGE PORTION OF THE TOTAL COST.
WHILE PRODUCT/PROCESS CHANGES CAN BE VERY EXPENSIVE TO MAKE, THE COST OF DELIVERING IT TO THE MARKEPLACE CAN BE RELATIVELY EASY (INEXPENSIVE) TO CHANGE
THE ABOVE TWO BULLETS CAN GREATLY IMPACT PROFITABILITY
Basic principles of dry bulk movement:
Old delivery system Ship railcars 90 miles (includes cost to ship heel back to refinery) 13.00
Contractor dig coke from Cars with backhoe 1.65
Truck 1/4 mile to a grizzly over a hopper 1.25
Contractor breaks lumps through the grizzly to load barges 1.80
Railcar demurrage 4.00
Barge movement to Gulf coast 4.75
Store coke in barges until 1 day before it is needed 4.50
Contractor dig coke from barges & load rail cars 2.45
Rail coke 3 miles to production facility 3.50
Unload railcars 2.00 • Total $38.90
$/ST
Improved delivery system
Ship railcars 90 miles 10.00
Terminal unload cars with Backhoe and remove – heels through the bottom & load barges 4.05
Barge movement 3.65
Pay contractor to unload Barges to plant storage 2.40• Total
$20.10
$/ST
General rules of thumb for dry bulk movements:Deliver product to the primary method
of conveyance as soon as possible
If water movements are involved, move your product to water as early as possible
Eliminate handling steps whenever possible
General rules of thumb for dry bulk movements:
Use the lowest cost method of conveyance for the distance involved
Move shipments in the largest lots possible
General rules of thumb for dry bulk movements:
Explore methods of improving the total logistic chain with the end user
There is strength in multiple modes of shipping or multiple carriers
Summary
Optimizing logistics will have a positive financial impact no matter what the market conditions
A few extra dollars per ton can help when struggling to improve profits or stay in the black
This can often be the justification needed for capital projects
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