Logistics and Supply chain Management of Waratah Coal - Samples

Question: Discuss about the Logistics Management of Waratah Coal. Answer: Introduction The Waratah Coal Alpha North Coal Project, is often known as China First Project at the Galilee Basin in Central West Queensland which has been approved by the federal government of Australia in 2013. The Waratah Coal Alpha North Coal project is identified as a 6.4 billion dollar worth of the mining project which will be associated to the processing of coal handling facilities via 453 km railway line which will transport the coal from region of mining to Abbot Point coal terminal situated at the coast of Bowen. The various test of approval has cleared its way to continue the development process which involves commencement of engineering work on 2014 for exporting of coal out from the Abbot Point Coal terminal in late 2016. Transhipment of thermal coal between the townships situated in Alpha to Abbot Point will require 40 standard gauges of locomotives and a total of 600 coal wagons which need to be transported via inland route based on Germany which is the point of origin to Abbot Point port which is final point of destination (Mininglink.com.au, 2017) Aim The report aims to identify the challenges involved in transporting wagons from point of origin to final point of this tradition. The analysis will be able to highlight on the details of inland, sea freight and port activities along with the requirements prescribed under Australian Quarantine and Inspection Services (AQIS). Scope The main scope of the study has been identified to the bit about the various types of logistical challenges associated to the Alpha North Coal Project. Logistics Issues The main logistics concerns are associated to the scale of coal which needs to be carried from the point of origin to the point of this tradition. The Waratah Coal Alpha North Coal project is considered as a $ 6.4 billion coal mining project which needs to facilitate the logistics of large quantities of coal of up to 11 billion tons of thermal coal. This calls for a need of building a railway line of approximately 500 km from inland regional setting in Germany which is identified as the point of origin to Abbot Point port which is identified as the destination point. The approval of railway project has angered several environmentalists as they fear that the approval of such a project would endanger the species of bird which exist in the local nature reserve. Henceforth the environmental groups have raised significant opposition for any kind of construction which is related to the enormous logistics process such as building of railway for the logistics operations. The main issue associated with the project has been for the seen with the problem associated to dredging. The project has involved the proposal to put the dredging material which is to be carried in an area devoid of reef. This is particularly important for preserving the ecology which is important for seagrass beds. Another major concern with the logistics issue has been seen in terms of the cost involved in proceeding with the logistics operations. Another significant concern has been identified in terms of construction of hundred kilometre of pipeline project approximately near west of Clermont which will additionally incur the cost of $ 8 billion (Queensland Mining Energy Bulletin, 2014). Transport Mode- Sea and road: Sea Transport Abbot Point has been identified as the governments most preferred zone for developing coal handling infrastructure which needs to be exported from Galilee Basin. The most suitable site for sea transportation has been seen with the development of Terminal 2 (T2) site in Abbot Point terminal for coal terminal. Waratah has been already identified to lodge an application to the State government for giving preference to the development of T2. Therefore measure terminal will be able to facilitate the port infrastructure associated to the upstream flow of the locomotives. The T2 terminal will be further able to bring about development of worlds most rich coal deposits and enhance the efficiency for specialised coal export centres near the port of Abbot Point. The transformation of locomotives via T2 terminal will be further able to provide an end-to-end solution to the supply chain at Galilee Basin which has been identified to be in conjunction with the Waratah Coal mine heavy haul rail li ne (Waratahcoal.com, 2015). Road Transport The main road transportation for the locomotives will involve construction of two rail lines from the Abbot Point. The government has proposed to fund a 300 km rail line which is to be constructed by Indian giant of mining named Adani. The line will be responsible for converting the town of Scottsville and splitting up of the same via Bowen. Adani will be responsible to finish the construction of the line till the north of GVKs. It has been further identified that the line will constitute a total amount of $16.5 billion which is often considered as the largest coal mine in Australia. The rail route will be further responsible to transport 40 standard gauges of locomotives and a total of 600 coal wagons (100 tons each) based on the inland setting of Germany to Abbot Point (Couriermail.com.au, 2014). Australian Customs Issues- AQIS AQIS deals with the import and export inspection and providing certification for ensuring a favourable plant, animal and human health status. AQIS carries out the operations through specialist federal law enforcement officers who involved in quarantine services. Based on the issues concerning the environmental degradation of the railway project and the mining activities the project needs to be highly concerned with the quarantine risk material which is to be investigated by AQIS specialised team. In case of failure in logistics compliance the company may be subjected to several civil penalties which may even lead to prosecution and fine of above $420,000 and imprisonment for up to 10 years along with a criminal record (Agriculture.gov.au, 2017). The logistics operations of the company should ensure that it is successfully able to pass the bio security tests. Several types of bio security risk will be assessed based on the goods which are imported from overseas and shall be investigated as per Bio security Act 2015, or are making a review of the existing measures relating to the same (Agriculture.gov.au, 2017). The maritime vessels arriving at Australian territory from other regions need to adhere to the bio security requirements. The Department of Agriculture and Water Resources has been further able to suggest on the processes which are required for complying with the health-related regulations and ensure that they are adequately managed. The different types of bio security risks for the vessel having in Australia have been able to ensure that they are free from exotic disease and pests. The department is for the thing to investigate the various types of goods even it consists of major equipments (Agriculture.gov.au, 2017). Warehouse Management Warehouse management system is needed to keep greater efficiencies and increased efficiencies thereby lead to cost reduction efficiency. These systems help contribute to reduced inventories as there are actually several factors would control the size of a company. For the purpose of warehouse management, the tie up with third party logistics will prove to be highly competitive. Waratah Coal knows that the high flyers like DHLs capable and innovative IT systems are essential to winning and operating new contract reason. DHL and Waratah staff will be able to reanalysed operational processes before beginning system implementation and configure its standard systems to meet with team needs (Sahuri Utomo, 2016). The main focus of the reduced inventory should be based on improved cash flow with only one time or cutting costs and reducing the carrying costs for the going costs. It will further lead to better production planning as the company will be able to know which products need to be produced later and will lead to fewer inbound transferred thereby reduced amount of raw material and inventory in process. The tie-up with DHL will further prove to be beneficial for better purchase forecasting. Through the fish and inventory management the company will be able to know which inventory are needed to be purchased later on and the quantity purchase discounts availed from the supplies. The prediction of better purchasing forecast will also reduce the inbound shipments and ensure a more ecological and environment friendly logistics operations. The warehouse management system will further lead to more accurate shipments as it will lower the total amount of cost of returns. The further implementatio n of the system will ensure accurate labelling of inventory based on the inventory levels and the items currently held in stock. More advanced users of RFID system will be further able to ensure that the huge quantities of supplies can be easily tracked in terms of the location, movement and status at the place of destination. The warehouse management system will prove to be an all in one solution to enhance overall warehouse management and monitoring process of the goods. Based on the appropriate warehousing strategy the company needs to decide on whether to maintain the stock as (LIFO or FIFO basis (Sahuri Utomo, 2016). Risk Management: Findings The main findings of the study have been able to state on main concern of approval of the project for the various types of environmental concerns raised by the local community. Some of the identified issues from the findings have been further able to suggest on the issues associated to railway project and its environmental impact in the both terminals of Galilee to Abbot Point considering the said it concerned to the wildlife and bird species present in both the areas. Some of the other findings of the study have been able to highlight on the significant concern with possibility of pipeline project to support the operation. Other significant concerns has been associated with Transhipment of thermal coal between the townships situated in Alpha to Abbot Point will require 40 standard gauges of locomotives and a total of 600 coal wagons (100 tons each) based on the inland setting of Germany to Abbot Point. Analysis The main analysis has identified the appropriate mode of transportation and warehouse management strategies. Based on the consideration of sea transportation it has been identified that the development of T2 terminal would be most appropriate in nature. A further analysis has shown that the transformation of locomotives via T2 terminal will be further able to provide an end-to-end solution to the supply chain at Galilee Basin which has been identified to be in conjunction with the Waratah Coal mine heavy haul rail line. The analysis on the road transportation system has been inferred with construction of two rail lines from the Abbot Point. In order to facilitate such an initiative the government has proposed to fund a 300 km rail line which is to be constructed by Indian giant of mining named Adani. The logistics operations of the company should ensure that it is successfully able to pass the bio security tests and able to receive the appropriate certificate from Australian Quarant ine and Inspection Services (AQIS). In order to respond to the various types of warehouse management challenges the company needs to tie-up with DHL. In addition to this the prescribed innovation and technology brought by the third-party logistics operator such as RFID system will be further able to ensure that the huge quantities of supplies can be easily tracked in terms of the location, movement and status at the place of destination. Recommendations and conclusion Some of the main recommendations to the company have been seen in terms of gaining proper government approval associated to upstream infrastructure. It should be further able to comply with the various types of customs procedure as prescribed under Biosecurity Act 2015. The company should be further aware of the environmental concerns associated in construction of the railway project and should try to emphasise on alternative strategies such as building a fully functional pipeline project from the place of origin to the place of destination and ensure that it does not interfere with the ecological concerns. The project needs to be particularly aware of the site of dredging and it should not interfere with biodiversity in the particular region. The main recommendation for sea transportation has been seen with the development of Terminal 2 (T2) site in Abbot Point terminal which has been identified as the most suitable region for coal terminal. Waratah has been already identified to lo dge an application to the State government for giving preference to the development of T2. Therefore measure terminal will be able to provide the port infrastructure associated to the upstream flow of the locomotives. In addition to this, the imported emphasis of road transportation should be based on the construction of two rail lines from the Abbot Point. The aforementioned proposal has already gained the support of government with total funding for 300 km rail line which is to be constructed by Indian giant of mining named Adani. The line will be responsible for converting the town of Scottsville and splitting up of the same via Bowen. Adani will be responsible to finish the construction of the line till the north of GVKs. The rail route will be further responsible to transport 40 standard gauges of locomotives and a total of 600 coal wagons worth 100 tons each based on the inland setting of Germany to Abbot Point. Based on the several types of discussion associated to logistics issues, transport mode, Australian custom issues, warehouse management and risk management it has been observed that the main concern for logistics operation is seen with getting approval of railway project as it has angered several environmentalists for endangering the species of bird which exist in the local nature reserve. Henceforth the environmental groups have raised significant opposition for any kind of construction which is related to the enormous logistics process such as building of railway for the logistics operations. The project has involved the proposal to put the dredging material which is to be carried in an area devoid of reef. This is particularly important for preserving the ecology which is important for seagrass beds. Another major concern with the logistics issue has been seen in terms of the cost involved in proceeding with the logistics operations. The main depictions have further shown that the company needs to tie-up with the third-party logistics provider such as DHL for the implementation of warehouse management system. References ABBOT POINT TERMINAL 2 PORT PROPOSAL - Waratah Coal. (2015).Waratahcoal.com. Retrieved 19 September 2017, from https://waratahcoal.com/portfolio_item/abbot-point-terminal-2-port-proposal/ Biosecurity. (2017).Agriculture.gov.au. Retrieved 19 September 2017, from https://www.agriculture.gov.au/biosecurity Coal rail links power of two. (2014).Couriermail.com.au. Retrieved 19 September 2017, from https://www.couriermail.com.au/business/the-adani-deal-means-galilee-basin-on-track-for-two-rail-lines-to-abbot-point/news-story/c040ea6b38e616e7ce330e542aff5e43 Coal Sea Of Galilee - Queensland Mining Energy Bulletin. (2014).Queensland Mining Energy Bulletin. Retrieved 19 September 2017, from https://www.qmeb.com.au/coal-sea-galilee-2/ Home Aircraft, Vessels and Military. (2017).Agriculture.gov.au. Retrieved 19 September 2017, from https://www.agriculture.gov.au/biosecurity/avm Home Aircraft, Vessels and Military. (2017).Agriculture.gov.au. Retrieved 19 September 2017, from https://www.agriculture.gov.au/biosecurity/avm Mininglink.com.au. (2017). [online] Available at: https://mininglink.com.au/site/alpha-north-coal-project [Accessed 19 Sep. 2017]. Queensland Mining Energy Bulletin. (2014).Coal Sea Of Galilee - Queensland Mining Energy Bulletin. [online] Available at: https://www.qmeb.com.au/coal-sea-galilee-2/ [Accessed 19 Sep. 2017]. Sahuri, G., Utomo, F. A. P. (2016). Warehouse Management System.Information System Application,1(1). Sahuri, G., Utomo, F. A. P. (2016). Warehouse Management System.Information System Application,1(1).