Pipeline transportation - Logistics Assignment
Pipeline transport
Of all modes of transport, pipeline transport proves to be the most efficient when the utilization of capacity remains consistently high.
Offering the transportation of goods to various points of consumption where they are required through steel and metal pipes, pipeline transport consists of characteristics that are unique because the infrastructure is also the carrying unit, no return journeys or return pumping processes are required, haulage, discharge along with product intakes are all concluded in one process. Collectively, this provides a continuous link between the extraction, processing, distribution and wholesaler depots in areas of consumption of the freight.
At the disposal of this mode of transport are the basic types of systems, crude-oil trunk pipeline systems, gathering pipeline systems and refined-products pipeline systems. Crude-oil trunk pipeline systems transport crude oil through trunk lines which receive the crude oil from gathering systems, storage tanks, ships, other pipelines and barges. Gathering pipeline systems carry and collect the crude oil from points of extraction, production fields, wells amongst other sources and carry it to central locations for distribution. Lastly, a refined-products pipeline is a delivery system that transports refined petroleum products from refineries and seaports to wholesale outlets in market areas.
This particular mode of transportation is subject to the highest levels of economies of scale.
The economies of scale that it enjoys are:
Economies of distance
Pienaar, W J and Vogt J J (2012:356) Chapter 16 in Business Logistics Management: A value chain perspective. 4th (eds). “Economies of distance (also known as long haul economies) are attainted when the total transport cost per ton-kilometre decreases as the trip distance increases. Economies of distance arise when there are trip-specific fixed costs that are not affected by the distance of the journey, and also by the cost
Of all modes of transport, pipeline transport proves to be the most efficient when the utilization of capacity remains consistently high.
Offering the transportation of goods to various points of consumption where they are required through steel and metal pipes, pipeline transport consists of characteristics that are unique because the infrastructure is also the carrying unit, no return journeys or return pumping processes are required, haulage, discharge along with product intakes are all concluded in one process. Collectively, this provides a continuous link between the extraction, processing, distribution and wholesaler depots in areas of consumption of the freight.
At the disposal of this mode of transport are the basic types of systems, crude-oil trunk pipeline systems, gathering pipeline systems and refined-products pipeline systems. Crude-oil trunk pipeline systems transport crude oil through trunk lines which receive the crude oil from gathering systems, storage tanks, ships, other pipelines and barges. Gathering pipeline systems carry and collect the crude oil from points of extraction, production fields, wells amongst other sources and carry it to central locations for distribution. Lastly, a refined-products pipeline is a delivery system that transports refined petroleum products from refineries and seaports to wholesale outlets in market areas.
This particular mode of transportation is subject to the highest levels of economies of scale.
The economies of scale that it enjoys are:
Economies of distance
Pienaar, W J and Vogt J J (2012:356) Chapter 16 in Business Logistics Management: A value chain perspective. 4th (eds). “Economies of distance (also known as long haul economies) are attainted when the total transport cost per ton-kilometre decreases as the trip distance increases. Economies of distance arise when there are trip-specific fixed costs that are not affected by the distance of the journey, and also by the cost