Green Logistics for Red Tomato Sauces: the CEPIM Parma Case

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1 Green Logistics for Red Tomato Sauces: the CEPIM Parma Case BESTFACT Workshop Milan December 4 th 2014

2 CE.P.I.M. Parma Freight Village CE.P.I.M. S.p.A. was founded in 1974 Mission: to develop the Parma Freight Village, an integrated system of structures, infrastructures and plants which permit the reception, the storage, the handling and sorting of the goods. CEPIM is a Joint Venture between public and private capital: Main Share-holders ENI Group (35%) Public Agencies (29%) Banks (24%)

3 Last DGG Benchmarking of the european experiences

4 Parma Freight Village an ideal location at the centre of italian and european network

5 Parma Freight Village - Connection MOTORWAYS A1 Milano - Napoli (E35) A15 Parma La Spezia (E31) RAILWAY Milano-Bologna PORTS: 100 km - La Spezia (A15) 180 km Ravenna (A1) 5

6 Parma Freight Village - Figures indoor outdoor total Total Surface sqm 600,000 1,900,000 2,500,000 Intermodal Area Surface (new project) sqm 150, ,000 Terminal Container Area Surface sqm 65, Overall Track Works Length km 14.8 Temp. Controlled Warehouses ( 0/-28 C) 325,000 m3 Inside the Freight Village: 86 logistic firms (logistic providers, haulage contractors, shipping agents and CePIM S.p.A.) >1.600 workers Custom Office

7 Parma Freight Village - Railway Traffic 2 million tons trains & wagons Relationship and tracks Trenitalia Cargo Brindisi 5 trains/week Jesi (AN) 5 trains/week Marcianise (CE) 2 trains/week Bari 2 trains/week Ravenna 2 trains/week Catania 20 trains/year only in summer C.F.I. 2 trains/week Lecce DB Rail 7 trains/week Northern Europe MetroCargo 3 trains/week Marsiglia (France) RailCargo Austria 1 train/week Northern/East Europe

8 Parma Freight Village General Common Services Gas Station Parking Area Bank counter Restaurant - Bar Hotel Custom Hot spot / wi-fi

9 CE.P.I.M. Logistic Provider We still hold today the roles of: Coordinator of the Parma Freight Village development Interface between the Freight Village infrastructures and the Institutions (national, regional and local) but we are mainly supplier of high value added integrated logistics services: 1. Warehouses and Outdoor Area 2. Value Added Logistic Services 3. Multimodal Solution (R.R.T. and M.T.O.)

10 CE.P.I.M. Integrated Quality Management System Quality Management System of CePIM has been certified by: ISO ISO 9001:2008 (processese) 14001:2004 (enviroment) OHSAS 18001:2007 for the following activities: Storage and handling services (people safity) Domestic and international shipments Integrated logistics and multimodal transport Planning and development of services and operating procedures for logistics.

11 CE.P.I.M. - Photovoltaic Plant (2,5 MWp) 1 Step Operative from April Step Operative from Genuary 2012

12 CE.P.I.M. - Rail Road Terminal D Stazione Servizio ENI 7 Versalis) C (SSAB) 8 Dogana Centro Direz.le A (CNH) /1 6/2 5/a 5/b B (Versalis) 5/c A (CNH) A (CNH) 4

13 Key Intermodal Customers Automotive From CNH Plant in Jesi (AN) by rail 5 x week 350 tractors (Trenitalia Cargo) From CNH Plant in Lecce by rail 2 x week 90 construction equipment machines (C.F.I.)

14 Key Intermodal Customers Automotive to CEPIM to anywhere in the world

15 Key Intermodal Customers Chemical From ENI Plant in Brindisi by rail 1 x week 700 t palletized (Trenitalia Cargo) From ENI Plant in Brindisi by rail 4 x week t bulk (Trenitalia Cargo)

16 Key Intermodal Customers Chemical to CEPIM to anywhere in Italy/Europe

17 Key Intermodal Customers Steel From SSAB Plant in Oxelosund (Sweden) by rail 1 x week (DB Schenker) to CEPIM to anywhere in Italy

18 Key Intermodal Customers Cereals t x ship Durum Wheat from North America From Port of Ravenna by rail 2 x week 40 cntrs = t (Trenitalia Cargo)

19 Key Intermodal Customers Cereals

20 Green Logistics for Red Tomato Sauces: the CEPIM Parma Case WE COLLECT PALLETTISED TOMATO SUACES (4 SKU S) FROM 2 MANUFACTURERS AND SHIP BY RAIL (20/25 TRAINS X YEAR) TO ONLY 2 DEPOTS LOCATED IN CENTRAL / SOUTHERN ITALY. IT LOOKS QUITE EASY BUT

21 Green Logistics for Red Tomato Sauces: the CEPIM Parma Case WHEN THE WEATHER PUSH THE TRAIN Our experience as logistic integrator in intermodal transportation of tomato sauces during the summer production period. How to guarantee operational flexibility despite the whims of the weather and the inelasticity of the rail service.

22 Cultivation and Harvesting of Tomatoes

23 The District of Industrial Tomato - Northern Italy The Tomato District of Northern Italy has its capital in Parma. More than 2,0 Mio tons of processed tomato has been produced in 2013 by the Tomato District (more than 50% of Italian production). A recognized leadership in the tomato supply chain: from harvesting to processing, from packaging to distribution. Leading Companies of the Tomato Industry and Technologies field are based here (*). (*) Parma, Piacenza, Cremona, Mantova, Lodi, Alessandria, Pavia, Ferrara

24 Tomato Sauces Supply Chain Main features: 1. Seasonality: about 6-7 weeks for the harvest and for converting the tomatoes into paste and purée 2. Driven by manufacturing (push) 3. Big volume (ab. 3 million pallet) 4. Large stocks (1 year stock rotation) 5. Low value 6. Cost sensitive

25 Tomato Pasta Sauces Tomato Pasta Sauces: only the simplest recipes mainly the tomato purée Passata di Pomodoro become finished products during the summer production, to preserve the quality and the taste of the main/only ingredient: the tomato. For this reason the logistic chain of these products follows special rules.

26 Tomato Sauces - Stocks To better serve local market in Central/Southern Italy, many manufacturer move part of the stock in local Depots. The company involved in this project ship part of their stock in Campania and in Sicily. Parma Marcianise (CE) 650 km Parma - Catania = km

27 Tomato Sauces the intermodal project At the end of May, as the last year, the interested manufacturer and the logistic provider/rail operator involved in this process, start to meet. Topics for discussion are estimate: - when will start the operations last week of July - for how long 7 weeks - how many volume pallet and therefore - how many train x week 2 to CT+1 to CE - how many w.i.p./stock in R.R.T pallet (end of the day)

28 Tomato Sauces Project First Mile During the campaign every day about 15 trucks (half train) has to move 30 pallet from the end of production lines to our R.R.T.

29 Tomato Sauces Project Rail Service Performance The train s performance is based on: - The final destination (total load capacity and length): Caserta ab. 870 pallet vs Catania ab. 700 pallet - The train composition 2 axles wagon: length 12,8 m tare weight 16,5 t 4 axles wagon: length 19,2 m tare weight 27,0 t

30 Tomato Sauces Project Last Mile Final destination : -In Catania the Depot is connected with the rail -In Caserta the R.R.T in located in Maddaloni (Caserta) and the Depot in Marcianise (Caserta), about 7 km by truck (max. 6 trucks x day accepted for unloading) Parma Marcianise (CE) 650 km Parma - Catania = km

31 Tomato Sauces what has happened As usual, because of the weather s whims, the production started later and was irregular, in the same way the volume of the first mile Pallet from the plants x day (from zero to 23 trucks)

32 October September August Tomato Sauces what has happened As usual, because of the production volume and the high seasonality of many food/beverage products, the rail connection with the depots was quite irregular and lasted 3 weeks more. from 1 to 3 trains x week Week Mon Tue Wed Thu Fri Sat Sun lug 32 CT 1 33 CE 1 34 CT CT 2 35 CT CE CT 3 36 CT CT 2 37 CT CE CT 3 38 CT CT 2 39 CE CE CT 3 40 CT CE 2 41 CT 1 42 CT 18-ott 1

33 Tomato Sauces what has happened As usual, because of the high seasonality of many food/beverage products, the train composition changed every time, in the same way the load capacity from 600 to 738 pallet x train campagna 2 assi 4 assi Train to Catania 2014 nr carri nr carri wagon pallet plt/wagon 1 Treno ,1 2 Treno ,6 3 Treno ,5 4 Treno ,4 5 Treno ,1 6 Treno ,1 7 Treno ,3 8 Treno ,3 9 Treno ,2 10 Treno ,0 11 Treno ,1 12 Treno ,2 13 Treno ,1 14 Treno ,4 15 Treno ,5 16 Treno ,9 TOTAL ,1 average ,1

34 Tomato Sauces what has happened As usual, the w.i.p. /stocks in our warehouse should have been maximum ton (about 1,5 train) at the end of the working day, but it reached a value 4 times as large than the planned one. from to of stock at the end of the day

35 Tomato Pasta Sauces our experience 1. Partnership: Shared project due to the availability of two manufacturer, other logistic operator, some of these local partners of the manufacturing company (GWG and DN Logistics), and the rail operator (Trenitalia Cargo). 2. Planning: Long, medium and short term: decisions on joint planning and integrated operation daily basis. 3. Control room/direction: the Rail Road Terminal CEPIM was the director of logistic operation (network coordinator) and has to be able to anticipate and to compensate the different speeds (production truck - rail).

36 Tomato Pasta Sauces our experience MAIN RESULTS: Cost savings Intermodal vs Road ab. -10/15% >95% road miles reduction > km of road avoided

37 Ce.P.I.M. - Centro Padano Interscambio Merci S.p.A. Piazza Europa, Bianconese di Fontevivo (PR) Ing. Mauro Calzetti Business Development & Marketing

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