Logistics

UNIVERSITY OF GRIFFITH

Business school

Optimal Transport Solution

To Export Coking Coal In

Possible Scenarios

Dae-Jung Jeong

(2747047)

2154IBA Business Logistics

12, October 2011

Dr Louis Sanzogni

(WORD COUNT : 2147 WORDS)

Abstract

Coking coal export is concentrated on the optimal transport method to target the cost-efficiency and reasonable lead time. Three types of intermodal transport scenarios will be evaluated in order to come up with an optimal solution to exporting coal from a Queensland mining site to Korea using comparative analysis. It was found that rail and sea intermodal transport was the most appropriate form of exporting in terms of capacity, economics of scales, and infrastructure due the characteristics of its commodity.

Table of Contents

Abstract 2

1.0 Introduction 4

2.0 Methodology 5

2.1 Data collection 5

2.2 Assumptions 5

2.3 Analysis 5

3.0 Limitation and issues 6

4.0 Business background: Transport and storage infrastructure 7

4.1 Land transport modes; rail and road 7

4.2 International freight transport mode; sea and air 8

4.3 Barney point coal terminal 9

5.0 Application 10

5.1 Scenario 1; rail and sea transport 10

5.2 Scenario 2; Road and sea 11

5.3 Scenario 2; Road and air………………………………………………………………………………...…………………………11

6.0 Conclusion 13

7.0 Recommendations 14

References 15

1.0 Introduction

Coal export in Australia is the largest commodity export, taking up a total of up to 23% of total exports of goods and services between 2008 and 2009 (ACA, 2008). Thus, the coal industry is much important for Australian income and companies. Logistics of coal is considered a major topic because of its potential to establish efficiency in terms of costs and lead time based on the analysis of the environment of infrastructure and transport.

This report provides information, obtained via comparison analysis, on transport costd, lead time and potential risks involved with the of transport mode....