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How to minimize complications on your capital project logistics

Transportation of heavy, fragile, and large equipment is common with most capital projects — for example, in building factories, data centers, pipelines, and power plants; project managers often deal with the transportation of heavy equipment from the point of manufacture to the site. More often, this is usually a complex task, especially when it involves crossing borders, and/or dealing with extreme challenges, such as civil unrest and strikes, bad roads and bridges, local restrictions, government regulations, holiday schedule delays, and so on.

Even for an experienced third party logistics (3PL) company, This can be a herculean task, especially if they were not involved early enough, unfortunately, in most cases, 3PL professionals are often, brought into the project at the execution stage, when it is, too late for an effective ‘project-logistics integration’. From my experience, the introduction of an experienced 3PL partner early enough, during the project front end is crucial. You need to have the right data, based on a survey of all the potential problems, both physical and non-physical obstacles inclusive, to be able to mitigate obstacles with ease and expertise.

This is the key to a streamlined successful capital project logistics; companies often fail when they do not consider transportation and logistics in the front end planning. Manufacturers most times, do not work side by side with transportation and logistics partners; therefore bringing logistics partners deeper into the planning stage and earlier at the front-end can tell how much it will cost to move, a design. For example, adjusting the design in line with the right data could save thousands of dollars.

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The Nuance of Capital Project Logistics

Without proper due diligence, capital project logistics can be a project execution nightmare. Any error or misjudgment is magnified:

  • If the proper authorities are not escorting the load, they could pull it over.
  • If the road infrastructure is poor such that the truck is unable to pass, the road has to be fixed and
  • From my experience in delivering such projects in Africa- you will need to deal with, and overcome, several local restrictions and layers of government regulations

It is not for the faint-hearted. This is because, any time a piece of over-dimensional equipment hits the road, the project team must address countless considerations as well as special requirements/conditions such as permits, route surveys, police escorts, bucket trucks to lift utility wires, and so on. For instance, every wire that is moved to accommodate a heavy load requires clearance from the utility that owns it and/or the local community. At times, hundreds of utilities are often involved and if one utility and/or the community refuse, the shipment is not allowed to move.

You need a well thought out plan

Managing complex transportation for large scale projects requires, therefore, a front end investment as well as a commitment to researching all options. There is no “cookbook approach”, every capital project logistics process is unique, therefore the dimension of the machines and the size of any access points that the machine will have to pass through on its journey from the manufacturer to the project site need to be understood at the earliest possible stage of the project; even the doorway within a facility can be an obstacle to the successful delivery of any equipment or a machine to its required location.

From my experience, these tips can help;

1. Appoint an experienced 3PL partner — this should be done early enough at the project front-end stage, to allow them, work side by side with the project team, especially the engineering design team and the manufacturer.

2. Understand outside influences and put in place effective handling strategies — there are numerous outside influences that should be considered during your project scoping review.

  • Transport — is any special assistance required to accompany heavy/slow load? e.g police escort
  • Road/Rail — are there any major road or rail disruptions that could delay or hinder the journey? e.g a bad spot on the road or a barrier
  • Space — what are the space confinements both inside and outside the location of the machine?
  • Weather — whilst this cannot be predicted, there may be seasons or months that are best avoided.

3. Research, understand, and proactively monitor all local restrictions and government regulations.

4. Have a contingency plan(s) — even if the road looks clear, you could have a surprise, therefore everybody has to be more open about problems, as well as providing solutions to mitigate risk and create backup plans. For example, the reoccurrence of civil unrest, road strikes, and/or blockage by communities along the way, can delay trucks’ arrival time.

5. During the delivery, ensure the 3PL partner, carefully execute the pre-planned move by keeping accountability, proactive communication, and transparency at the forefront of its operation

Conclusion

Although capital project logistic and transportation is not an exact science, it is fun when you are working with an experienced team and the plan is well-thought-out. some of the most complex and interesting ones I have managed were;

  • Moving helicopters from Europe to West Africa for deep oil and gas operations — crossing multiple borders for each move (ferry flying), navigating different countries regulatory climate (obtaining permits, etc), avoiding countries with civil unrest (you don’t want the helicopter to be shot at), etc.
  • Building Mainone submarine cable landing station in Nigeria- we have a detailed plan that was done at the front-end — all was well-thought-out, but just like COVID-19, the “Volcanic ash of 2010” came unexpectedly and we have to develop and activate a contingency plan. Nobody expected that flight will be disrupted for weeks.

It is about controlling variables that are dynamic. The more the control is improved upon, the better-related situations are put under control; therefore, control; means everything in the world of capital project logistics. For example, you can get the best transformer in the world, but if it cannot get to where it is needed on time, and as desired, it is an expensive failure.

About me-

Eze Afieroho. MBA, PMP — build confidence in people and organizations, to enable them to optimize the delivery of major projects, and the use of infrastructure assets in Africa — through a mix of research, teaching, and advisory services. This is guided by my over 14 years of work experience, and ongoing doctoral research on mega projects delivery in Africa

 

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