The paper 'Management of In Transportation of Cargo' is a perfect example of a Management Case Study. Construction of the Liquid Natural Gas plant in Curtis Island in Queensland, Australia depends on transportation of fifty sub-assemblies weighing thirty tones each across the ocean and on land from the Hajin Shipyard on Subic Bay in the Philippines a distance of 3767 nautical miles. This transportation has to be done over a period of six months. Each sub-assembly is ten meters in diameter to make a decision on the best logistical system to adopt while transporting them from their point of origin to their final destination.
Consideration has to be made for the fact that this transportation is across two different countries and also other issues including management of the logistics involved. The activities of logistics management include management of transport to and fro, fleet management, material handling, warehousing order fulfillment, network design, inventory management, etc (Chang 1988; Ballard and Howell 1998). Point of origin Subic Bay, where the sub-assemblies will originate forms a part of the Luzon Sea about 100 kilometers northwest of Manila Bay.
The bay has a commercial area which is referred to as the Subic Bay Freeport Zone which is governed under the Subic Bay Metropolitan Authority. In the bay is the Port of Subic, this is port is very strategically placed and it has a very fine harbor. There is an international airport in the bay; Subic International airport and there are good roads in the area. The sub-assemblies will be got from the Hanjin shipyard on the bay. Hanjin is a Korean based corporation that is engaged in shipbuilding, construction and also plant technology, the shipyard from which the sub-assemblies are to originate is held on land leased by the corporation. Logistics methodology In order for the logistical arrangement to be effective, the methodology needs to be framed to cover all possible areas (Gibson, Hanna, and David 2004; Golicic, Donna, and McCarthy 2005).
In the case of these sub-assemblies, it is imperative that there be a clear mode of communication between different players. After consideration of all the possible logistical challenges, the transport solutions will be customized for the sole purpose of this exercise.
There will be a need for collaboration with Hanjin Heavy Industries Construction Corporation; this will ensure that after the sub-assemblies have been fabricated, they have been properly warehoused in their shipyard thus ensuring their safety. Loading procedures for the sub-assemblies should be such that they get to their destination while still in perfect shape to perform the role for which they were fabricated. Considering that the sub-assemblies will be transported over long distances over water and land a combination of modes of transport will be necessary.
The modes of transport will have to be chosen carefully because they account for the biggest cost of logistics; according to (Chang, 1988), the cost of transport accounts for 6.5% of all market revenue and 44% of logistics costs. BTRE (2001) stated that Australia’ s value-added of the transport sector was 5.6% of GDP. An Air Transportation Association analysis shows that transport is the highest cost of logistic costs accounting for 29.4 % of all costs (Chang, 1988). The costs considered in this analysis include means of transportation, containers, pallets, labor, terminals, time, and corridors.
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