ISSN VALUE ADDED SERVICES IN TERMINALS FOR DANGEROUS GOODS TRANSPORTED BY RAIL

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1 VALUE ADDED SERVICES IN TERMINALS FOR DANGEROUS GOODS TRANSPORTED BY RAIL Matej Babin 1 Value added services support by terminals Value added services (VAS) are mostly used for the support of automotive and chemical industry. It is caused mainly for the reasons of high standard quality requirements and precision production plan fulfillment in moving space, time and in specified sequence. The more precision are the requirements fulfilled, the lower are the costs on closing the gaps (eliminating errors or damage of the cargoes, miscarriage, correct quantity, quality, etc.). Lower entry prizes for final products are resulting from lower costs therefore. The financial factor is the main reason for VAS introducing. Classic logistic technology is based on periodic and correct (place and time) coverage of a demand, i.e. order of correct amount and correct material flow from specified suppliers to regular and satisfied customer. In this process, there are main activities like transportation from supplier into own logistic center with short-term warehousing and the delivery to precisely defined place in requested time and in correct amount (alternatively also in correct sequence). Relevant added services, such as customs clearance or insurance are counted as additional services (separate items on the invoice). When we are talking about services in regime VAS, we consider just one complete invoiced amount with more provided services. These services begin at the logistics provider in the logistic center. We consider TEU daily (4 6 block trains) for the goods in middle and lower package groups (IBC, big bags, pallets, tank pallets, barrels, etc.), for these centers. To ensure realization of warehouse logistics of sensitive goods, it is necessary not only to consider the warehouse layout, position of gates, conveyor tracks and racks, but is also necessary to strictly distinguish special requirements for these goods. VAS includes following consignment services for customer: consignment pick over, selection of requested components, preparation of smaller units, especially packages intended for production, marking for faster and more precision detection and reduction of expedition failures, control of integrity of the consignment (materials), 1 Ing. Matej Babin, University of Žilina, Department of railway transport, Univerzitná 8215/1, SK Žilina, Slovakia matej.babin@fpedas.uniza.sk 25

2 weighing, packaging, changing of the package, reuse of empty packages, reparation of damaged packages, fixation elements for safe transportation, cooling (of packages, transported goods or materials, etc.), preheating (of packages, transported goods or materials, etc.), cleaning (of packages, transported goods or materials, etc.), products testing, pick & pack operations, ordering additional services or required support services or equipment manipulating, packaging, etc., pre-delivery notification service, installation and brief, or fuel and oil charging into final products, etc. It can be concluded, that VAS is a complex care about the shipment [5, 6, 7]. Maximization of positive effects from VAS logistics can be achieved by using intermodal and multimodal consignments. But optimal places for this logistic technology are public logistic parks. The capacities intended for logistic activities are optimally located in the space to minimize negative externalities. The reasons for VAS realization are primarily economical with the multiplication of activities realization. Provider of these logistic services is focused only on these specific activities, while he don t have to care about logistic park equipment, because these active and passive logistic elements are operating by the logistic park operator. The operator of logistic park should be focused namely on these questions: maximization of cargo transposition in terminal (minimizing time between entry and exit of cargo in terminal), specific layout of the equipment in terminal, especially technical equipment for simplification and acceleration of manipulation on/off the transport units or directly into transport vehicles, organizational, technological and administrative set-up of work systematics for the minimization of manipulating times with cargo and consignments, maximization working speed of manipulation devices, minimization of downtimes and waiting times, 26

3 statistic and systematic evaluation of deficiencies, failures (failure analysis) and problems arising in such activities and operations. Tab.1. Overview on logistic centers in Slovak Rep. with two conditions - connection to the railway network and dangerous goods care. [6] Logistics center name Logistické centrum DNV logistics park logistics park Logistické centrum Locality - Rača Devínska NováVes Priority areas Storage area (m 2 ) Railway connection Storage of ADR/ RID shipments Manufacturing Yes No Manufacturing Yes No Senec Manufacturing No Yes Svätý Jur Storing Yes No ProLogis park Galanta Storing No Yes EUROFINN Leopoldov Storing Yes Yes Tab.2. Operational data of CT terminals situated in Slovak Republic [1] Terminal Operator / Provider Dangerous goods Area (m 2 ) Storage area (m 2 or TEU) Handling equipment Number and rail length (m) ÚNS prístav - Pálenisko Žilina Dobrá SKD Intrans, a. s. MajiteľSPaP, a. s. ; prevádzkovateľ MAERSK SKD Intrans, a. s. Žilina ZSSK Cargo a. s., Transcontainer Slovakia s. r. o., container storage m 2 1 gantry crane 2 reach m 2 cranes 3 reach 3 gantry TEU TEU a m 2 2 reach 2 gantry cranes 1 reach stacker 3x300 2x320, 2x300 1x430, 1x330, 1x450 7xSG1, 5xBG2, 1xHR3 27

4 Terminal Operator / Provider Dangerous goods Area (m 2 ) Storage area (m 2 or TEU) Handling equipment Number and rail length (m) Dunajská Streda Košice Sládkovičovo Metrans (Danubia) a. s. SKD Intrans, a. s. Green Integrated Logistics (Slovakia), s. r. o. MetransDanubia, m 2 cranes 8 reach 3 gantry m 2 2 side forklifts m 2 1 gantry crane 3 reach m 2 3 reach Košice - Veľká Ida a. s., 1 Standard gauge rail (1 435 mm) 2x373, 1x450, 1x565, 1x570, 1x684, 1x735 m, 2 Broad gauge rail (1 520 mm) 2x380, 1x588, 1x593, 1x812 m, 3 Hybrid rail (both gauges at the same rail) 1x802 m. 5x650, 4x550 2x350 1x1 474, 1x496, 1x174 2x300 The conclusion from those tables is very simple. At present time in Slovak republic isn t logistic terminal equipped for railway transport and for road transport at the same time. Also the provided services by terminals are insufficient. So Slovakia must make decision in next few coming years about public bimodal or trimodal terminal, well equipped for value added services (handling machines, storage facilities, safety roles etc.). VAS in the sphere of dangerous goods transportation Value added services in the sphere of dangerous goods transportation consist of necessary infrastructure background and of following active and passive logistic elements: consignment tracking and consignment status check, preparation and pre-preparation of necessary documentation, correct and precise sticking of labels on transport units, disinfection and cleaning stations, pre-warming and cooling stations, potentially necessary measuring and verifying devices, impermeable warehousing floors ensured against percolation and leaks into soil and underground waters, impermeable (against magnetic and nuclear radiation and gases or aerosols leaks) and good-ventilated covered warehousing areas with relevant alarm equipment and signaling devices, 28

5 necessary manipulation and pump through mobile devices, fire extinguisher equipment and connection to fire station against inception and extension of dangerous cases, workroom for diagnostics and repair of damaged packages, appropriate dressing rooms for relevant personnel, etc. Product handling Re-palletizing Bagging Operation Wrapping & strapping Re- Pick & pack operations Drum & IBC filling operations Temperature controlled storage Ventilated storage Services provided in chemical warehousing ISO-tank & Box container storage / ADR-parking Steam heating ISO-tanks Reefer container storage Customs formalities & documentation Transport documentation Warehousing reporting stock reports movement lists Figure 5: Pyramid of services provided in logistic center focused on dangerous goods 29

6 Conclusion Processes and services mentioned in this article have to be subordinated to audits and re-engineering of all participated members and process administrators. Total certification is not the standard in present, but it is just a matter of time, when certification will be involved into SCM logistic chain. When we mention SCM, it is convenient to notice, that conversion to Green SCM is gradually coming over. Green SCM is basically SCM with maximized orientation on procedures and processes, which are environment friendly and do not waste natural resources. Ultimately, Green SCM decreases total logistic costs transferred to customer s price [1]. To find out the impacts of VAS introduction, it is necessary to compare primarily the costs in table 1. According to various impact studies, it is possible to state, that VAS introduction helps to achieve more solid and long-term relationships with customers [3]. The customer also welcomes more complex and high-quality services in one price package, whereby he can fully concentrate on his core business. This is very important because the consumers today are more informed, experienced and are very exacting on the quality of fulfillment their constantly grading sophisticated requirements in shorter intervals. Tab.3. comparison of two different items of budgetary organizations Local, state budgets (all-society), insurance companies, terminal operators, vehicle operators, infrastructure managers. Damage removal costs after dangerous goods leak (harm to health or property; fire brigade action; treatment and recovery of impacted; soil, water and air harms, eventually flora and fauna harms; damage to equipment of terminal; vehicle and infrastructure damage, etc.) Budget of logistic services provider. 1. Costs for staff education and training 2. Costs for control actions 3. Costs for analysis and re-evaluating measured and detected data 4. Costs for marking, packaging and fixation 5. Costs for technical examinations, maintenance and basic service for transport units and vehicles 6. Costs for IT n i= 1 Direct damage and results removal 6 i= 1 Prevention Source: author 30

7 [1] Emmett, S. Sood, V.: Green supply chain, TJ International Ltd, Padstow, Cornwall, UK, 2010, ISBN [2] RID Regulation concerning the International Carriage of Dangerous Goods by Rail [3] Report WP 4.2 Development of new intermodal service concepts value added services [4] COTIF 1999 [5] [6] [7] [8] [9] [10] [11] Referee: Ing. Martin Kendra, PhD., Žilinská Univerzita, Žilina Enter to publishing: October 1 st