railcar cycle times-peaker energy
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Confidential and Proprietary Information of Peaker Energy GroupConfidential and Proprietary Information of Peaker Energy Group
Content! Cycle Time Defined
" Stages of the “Cycle”
# Constant or Variables
$ Opportunity or Cost? …Opportunity Cost? Optimization Areas Optimization Examples
% Thoughts on your “Return Home Cycle”
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CYCLE TIME DEFINING THE LOGISTICS PROCESS
cycle time |!s"k#l t"m| noun • loading a car at shipper’s point of origin
• transit of this car from Origin to Destination
• unloading of the car at the destination site
• transported back empty to origin
• finally, held empty at shipper’s origin until re-loaded and then the cycle begins again.
exceptions to the process • backhaul: Loading another commodity at the destination to
return to the origin “full” vs. empty
• new origin: Car unloads at destination but is then sent to a different origin to load vs the original origin.
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CYCLE TIMESTAGES
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Loading
Empty at Origin
In Transit Back to Origin Unloading
In Transit to Destination
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CYCLE TIMECONSTANT OR VARIABLES
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“Many think of railcar cycle times as constants or only functions of transit time. There are several variables in the process that can be optimized. These optimizations may not appear to be very significant, but exponentially multiply over volume and time.”
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CYCLE TIME OPTIMIZATION AREAS
Facility Design
Flow and Ingress/Egress Car storage
Equipment Selection and Placement
Make sure you have the right equipment in the right place to optimize the process
Technology
Use technology to not only optimize the process but make it safer as well. Look for new technologies and equipment that can optimize the process
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Planning
Well designed process and operations plan Bad Order Cars Scheduled Maintenance / Car Cleaning
People
The most important thing is well trained operations and HSE staff.
Communication
Communicating with the servicing railroad and operating staff to best coordinate movements
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OPTIMIZATION EXAMPLEFACILITY DESIGN
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LoadingAllows for easy access from servicing railroad to bring in cars without interrupting or delaying the loading process or their mainline service.
Make sure you have redundancy in your pumps to accommodate any planned or unplanned maintenance.
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OPTIMIZATION EXAMPLE
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In Transit to Destination
COMMUNICATION
Most of the variables in this stage of the cycle are out of your control “unless you are the railroad”
Keeping on top of your scheduling “milestones” and communicating with the railroad will at least give you a heads up on any unforeseen delays like weather, or equip failure.
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OPTIMIZATION EXAMPLE
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Unloading
EQUIPMENT
One of the newer issues with respect to cycle times that has presented itself is the timely unloading of heavier, high-viscosity crude oils off of railcars.
There is the question of what type of heat, how much, how fast, how many cars concurrently, pump size, pump type, and the variables within this issue have thousands of different permutations.
The key is to find the right combination for the slate of crudes you will be unloading.
Look at ways to get the crude circulating in the cars. This will not only help unload quicker, but will also allow you to recover more of the crude from the car.
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OPTIMIZATION EXAMPLE
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In Transit Back to Origin
TECHNOLOGY
Use technology to keep track of your cars and make sure you don’t have a car dropped or lost along the way. Having “active” technology can mean the difference of having all of your cars back at the origin at the same time or maybe a couple coming in 2 days later. That gaff could cause a domino effect on your whole months schedule.
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OPTIMIZATION EXAMPLE
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Empty at Origin
PLANNING
Remember to schedule your maintenance accordingly and ahead of schedule. Make maximum use of any downtime on cars. If something needs repaired like an air-hose, make sure you look at the car’s maintenance schedule, and if there is anything that can be done within that window, get it done at the same time.
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THOUGHTS ON “RETURN CYCLE”
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SAVINGS FROM EFFICIENCY
Q: What are the savings realized from the reduction of 1 day to the cycle time for a 1 Unit train* per day move?
DAYS
Load 2
Transit 6
Unload 2
Transit 6
22.8 CYCLES PER YEAR
DAYS
Load 1.5
Transit 6
Unload 1.5
Transit 6
24.3 CYCLES PER YEAR
Results
+105,300 additional bbls for year +$10.5 MM additional revenue 7500.00 of savings in car lease cost
*Unit train consists of 104 GP 30 Railcars, Cars loaded to 675 bbls, crude price $100/bbl, $2000/mo car lease