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Port of Stenungsund - occupancy study. Chalmers University of Technology Göteborg, 060925 Viktor Allgurén allgvikt@student.chalmers.se 0704-45 00 83 Andreas Svensson svenande@student.chalmers.se 0702-773 858. Vattenfall’s jetty. Introduction. Major thesis conclusions.

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Port of Stenungsund- occupancy study

Chalmers University of Technology

Göteborg, 060925

Viktor Allgurénallgvikt@student.chalmers.se 0704-45 00 83

Andreas Svenssonsvenande@student.chalmers.se 0702-773 858


Vattenfall’s jetty


Introduction

Major thesis conclusions

  • Five companies operating in the 11th largest port

  • 7 expansions 2007-2010  doubled turnover 2010

    -Worst case  89%

  • 1/5 of all laytime is documentation time (not value adding)

  • Stay under occupancy interval 60-75 %

  • Need for effectiveness (a new pier)


Introduction

Agenda

  • Introduction

  • Occupancy study

  • Joint organization for the port

  • Solutions

  • Summary/Conclusions


Introduction

Methodology


Introduction

Jetty locations- Port of Stenungsund

At weight limitation – not possible for more equipment


Introduction

Largest ports in Sweden 2005

Source: SIKA, 2006:16

Port of Stenungsund:

  • Roughly 6.2 million tons 2010

    -Vattenfall’s pier 2,5 million tons

  • 600 ships in 2005

  • 1,200 ships in 2010


Introduction

Complexity in Stenungsund

Source: Borealis, 2000


Introduction

Companies using the pier

EFAB

  • First come first serve

  • Lack of cooperation in port

  • Port is equally important

1


Occupancy study

Expansions 2007-2010

EFAB

  • Perstorp Oxo expansion ~ 5 times higher utilization 2010 than 2005

  • EFAB (ethylene) ~ 2 times higher utilization 2010 than 2005

2


Occupancy study

Occupancy per company


Occupancy study

Future jetty occupancy

  • Worst case:89 %

  • Pumping like 2005: 81 %

  • Average 2001-2005: 81 %

  • Estimated: 78 %

  • Best case: 74 %


Occupancy study

Validation

  • Ship size

  • Documentation time

  • Pumping rate

-

+

  • 13 700 h laytime 2010

  • 2 900 h doc time  21% of laytime

3


Occupancy study

Maximum occupancy interval

60%-75%

  • 65 % has been confirmed (five references)

  • Varies within different ports

  • Increases with increasing flexibility

  • More companies, harder to be efficient

  • If occupancy above the interval for long time  risk for stop in production

4


Occupancy study

Overcapacity

Efficiency (lean) vs. Effectiveness (overcapacity)

  • Variations in shipping

    -arrivals (weather, pilots)

    -documentation

    -pumping

  • Planning is hard

  • Many parties interacting

  • Need overcapacity to handle variations and uncertainties (five companies)

  • Overcapacity = new pier


Joint organization

Earn when fast, pay when slow

”A ship at berth shall be active!”

- Mats Eggers, Harbour Manager, Preem Brofjorden

  • Pay for time at berth

    –contracts with Vattenfall

  • Pay per ton handled

    –contracts with Hamntjänst

  • Incentive to be faster

    - Save money (loading master, lab costs, Hamntjänst etc.)

  • Increase efficiency


  • Joint organization

    Rules for sequencing

    • Documents setting the rules for when to prioritize

      - Common sequencing cases in one document

      - One standard document to fill in

    • Recommended sequencing rules

      - Use shortest processing time (SPT)

      - Emergency sequencing (to avoid stop in production)

      -Companies must agree upon these rules


    Joint organization

    Joint documentation

    • Find out “best practice”

      • Will save laytime

      • Will save personnel for the companies

      • The ship does not have to wait for personnel

    • When queue:

      - Ship occupying the pier

      - You are occupying the pier

      • Do documentation in the anchoring area


    Joint organization

    Web-based planning system

    • Plan ships short- and longterm

    • Keep statistics

    • Give idea of laytime

    • Include:

      -AIS

      -Booked pilots

      -Ship info

    • Password protected

    • Available for:

      -The five companies

      - Pilots

      - Agents

      - Tugboats

      - Shipowners


    Solutions

    Aims – our solutions/improvements

    Increase maximum occupancy interval

    Decrease laytime

    Decrease waiting time

    Some solutions are of dynamic character


    Solutions

    Realisticsolutions(some of these solutions must be implemented)

    Medium

    • Move marginal flows to Havden/Hydro (raps/RME) (700 h)

    • Pre-work for buoy unloading

    • Better pump capacity

      -Booster pump (700 h)

      -Thicker pipelines

      -Improved pumps (500 h)

    Short

    • Web-based planning system

    • Joint documentation (1,000 h)

    • Statistics

    • Rules for sequencing

    • Pay per hour, not per ton (500 h)

    • Regular meetings

    • “Sveriges hamnar” organization

    • Environmental certificate for a new pier

    • Larger ships when possible

    Strategic

    • New pier (5,000 h)

    5


    Solutions

    Brainstorming(Everything is allowed)

    • Optimal sequencing

    • Increase flexibility

    • -use both sides (dredge, loading arms, pipelines)

    • -use Havden and Saltkajen for more products

    • Buoy unloading (ethane)

    • Three locations on the pier, like Skarvikshamnen

    • Move the pipelines to the middle of the pier, everybody

    • can use both sides, minimum use of hoses

    • Extend Vattenfall’s pier


    Solutions

    New pier locations

    • One new pier adds 8,760 h new laytime. 2010 = 13,700h laytime  occupancy ~50 % 2010 (all piers)

    • Long time for environmental application


    Solutions

    Price for a new quay (Close to Hydro’s pier)

    • Price estimated by Flygfältsbyrån to:

      ~ 20 million SEK

      Incl. unforeseen costs 15%

      Other costs:

    • Loading arm ~5 million SEK

    • Pipelines, valves, pipe bridge

    • Safety equipment

    • Etc.


    Summary/conclusion

    Summary/Conclusion

    1

    • Five companies operating in the port without cooperation

    • 11th largest port in Sweden

    • 7 expansions 2007-2010  doubled turnover 2010 in the Port of Stenungsund

    • Worst case scenario  89 % occupancy 2010

    • Stay under interval 60-75 %

    • Need for effectiveness and efficiency

    • Joint organization - No easy quick solution, all have to make an effort, otherwise  sub optimization

    • Create incentive for shorter laytime

    • 1/5 of all laytime is documentation time (not value adding)

    • Statistics and web-based planning system

    • If a new pier  estimated occupancy ~50 % 2010

    • No financial payback for previous investments and efforts, however, economical incitements do NOW exist

    • Environmental application for new pier A.S.A.P!

    2

    3

    4

    5


    Thank you for your attention!


    Focus on documentation


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