BEST PRACTICE LOGISTICS

Introduction

Simon Royston Business Development Manager for

The Strang Tradex Group (STRANG)

Best Practice In Logistics

Background to STRANG

and then move onto

Best Practice Logistics.

WHO ARE WE? • STRANG is a focused, high performance contractor with 90 years

of success in the provision of integrated logistic structures

• Privately owned Australian Company

• Dedicated facilities in Australia, Papua New Guinea, South Africa, Madagascar, Mozambique and Singapore

• Purpose built global network of proven and specialist logistic partners

• Approximately 450 employees world wide

OUR MISSION

The creation and operation of

“world-leading”, dedicated logistic

structures for clients who desire

long-term relationships based on

trust and performance excellence.

OUR CLIENTS

Our clients are predominately in the resources and energy sectors. They have

and do include:

OUR SERVICES

SUPPLY LINE LOGISTICS

2.0 MILLION

REVENUE TONNES OF

CARGO SUCCESSFULLY

DELIVERED

Engineered logistics

Services include;

– Australia and world-wide depot infrastructure;

– Cargo receipt and consolidation/containerisation.

– Expediting.

– Outbound handling and transport.

– All export agency and documentation.

– All import documentation including PNG customs clearance requirements.

• Global Logistics Management System (GLMS) used for complete shipment facilitation.

Client Benefits

GLMS has been tailored to

optimise the supply line

and create a significant

and ongoing competitive

advantage for our client.

PROJECT FREIGHT FORWARDING

1400 CBM

EX WORKS CANADA TO

CENTRAL QUEENSL AND

4 Screw Compressors, 4 Coolers & associated equipment

Engineered logistics

• Services included

– Loading at factory.

– Cartage to Vancouver.

– Cleaning and loading onto vessel.

– Sea freight (part charter to Brisbane).

– All import requirements: customs, AQIS documentation.

• Global Logistics Management System (GLMS) used for complete shipment facilitation.

• Brisbane and Townsville stevedoring and cranage.

• Specialised transport, including police escorts.

• All cranage at client’s site.

Client Benefits Include;

Totally integrated

forwarding solution

customised to fit the cargo

characteristics and export

and import locations.

PORT & TERMINAL OPERATIONS

14001, 9001, 18001

ISO ACCREDITATION

IN MADAGASCAR

Port Ehoala. Mobilised and established the operation from “scratch”. Identified, trained and developed a multi-skilled workforce.

Services included;

• Initial and ongoing advice and consultancy on port design and operability.

• Provision of all cargo handling, stevedoring, marine support, and maintenance services.

• Management and operation of bulk storage facilities and vessel loader.

• Container stuffing and unstuffing and export and import documentation.

• Cargoes include bulk, containers and break bulk.

Client Benefits Include;

STRANG has a dedicated,

skilled and focused team

achieving world leading

results within a challenging

operating environment.

ADVISORY SERVICES

2 INTO 1

MARINE OPERATIONS TERMINAL

AND SUPPLY LINE STRUCRTURE

TO SUPPORT PRODUCTION

PHASE

Detailed study for Santos and QGC/British Gas on the

development of a joint Marine Operations Terminal (MOT) at

Gladstone to support the operational phase of their respective

Curtis Island LNG projects.

The key deliverables included:

• MOT design/layout options detailing various levels of collaboration

• Compatible freight/cargo vessel options to cater for collaboration;

• Hazard assessments including road and marine traffic

assessments;

• Option identification, development, assessment and selection;

• Preferred Option selection for layout/design, Personnel

movements and RORO/barge vessel freight/cargo operations;

• Order of Magnitude CAPEX and OPEX assessment.

Client Benefits Include; An independent assessment and development of the best “fit for purpose” collaboration solution which met both Proponents long term operational and corporate requirements.

100 MILLION

TONNES OF COAL PER YEAR

POTENTIAL EXPORT

DETAILED LOGISTICS STUDY UNDERTAKEN FOR RIO TINTO COAL MOZAMBIQUE, FORMERLY RIVERSDALE COAL.

Study included;

– Reviewed existing logistic channels and ports to assess realistic capacity and for comparison against a green fields solution.

– Identified 25 potential “green field” port locations along the Mozambique coast.

– Attach landside logistic corridors to each port location.

– Provide concept port type and design.

– Assess each potential solution to arrive at the optimum outcome.

Client Benefits Include;

The optimum outcome

identified and developed by

Strang has been recognised

as the preferred “green

fields” solution.

Best Practice

So what is Best Practice (BP)

By Definition:

A practice which is most appropriate under the circumstances, esp. as

considered acceptable or regulated in business; a technique or

methodology that, through experience and research, has reliably led to

a desired or optimum result.

In relation to Logistics it has been defined further:

A best practice is a method or technique that has consistently shown

superior results as compared with other methods and is used as a

benchmark. In addition, a "best" practice can evolve to become better

as improvements are discovered.

Identifying Best Practice

• It is not always easy to identify Best Practice

• You would think that having two definitions of BP it would be easy to

apply these definitions to identify what is a “Best Practice” ?

• However, there are a number of subjective terms in these

definitions…. “the most appropriate under the

circumstances”….”superior results”, …the most desired outcome”

Let me share an example of what many of us would consider not Best

Practice…..

Best Practice ???

Identifying Best Practice

• At STRANG we work on the basis that Best Practice must achieve

four key criteria;

Safest and Highest Quality

Most Effective

Add Value

Cost Efficient

• Yet these four key criteria are not always enough to identify and

develop what can be classified as Best Practice.

• What needs to be added to the mix is the client’s requirements

reflected in how they weigh the importance of each of these

criteria.

Developing Best Practice

STRANG Engineered Logistics is the tailoring of purpose-built

logistic solutions which deliver the most effective, efficient and

sustainable outcomes for our clients.

STRANG Engineered Logistics is built on our 90 years of Expertise,

Experience, Dedication and Innovation.

This approach to creating Best Practice logistic solutions should

ultimately provide our client’s with a unique sustainable and

competitive advantage.

We would like to share two examples of what we consider to be

Best Practice within our Group;

Bull Ant Transportation System

The Bullant Integrated Logistics System was conceived, designed

and built by STRANG to deliver a unique and revolutionary

approach to logistics - a single equipment system that loads,

transports and unloads cargo.

Bull Ant Transportation System

Bull Ant Transportation System

Improved Safety and

Quality

Effective

Value Add

Cost Efficient

STRANG Global Logistics Management System (GLMS)

PNG Chamber of Mines

& Petroleum rated

STRANG GLMS “Best in

Class”. Also recognised

by Lloyd’s List winning

their E-commerce

Award.

• The Strang Global Logistics Management System

(‘GLMS’) is a proven “fit for purpose” logistics

management, freight, expediting and warehousing system

“engineered” to underpin supply line requirements of major

mine and industrial sites/projects.

• GLMS is customised to be client specific.

• GLMS is web based with global and regional capabilities

linking our branches, warehouses, agents and clients to

provide total visibility and supply line control.

STRANG Global Logistics Management System (GLMS)

GLMS offers unique functionality combining data we capture early in

the logistics task with our customs clearance, compiling and tariff

expertise.

The outcome is complete customs clearance documentation packages

that are ready for submission to the importing Customs authorities well

in advance of shipment arrival.

Improved Safety and

Quality

Effective

Value Add

Cost Efficient

STRANG Global Logistics Management System (GLMS)

CONTINOUS IMPROVEMENT

• At STRANG we are encouraged and challenged to identify and

develop Best Practice across all areas of our operations. The

key tool for this drive is a structured and systematic

Continuous Improvement Program.

• Improvement Projects which are successful in one operation

are transferred and adapted for use at other project sites and

operations.

• This Best Practice transfer is one of the reasons STRANG

remains so active in and aligned with ICHCA. An industry

vehicle for Best Practice transfer.

CONCLUSION • To identify and develop Best Practice the following key elements are

essential;

Safest and Highest Quality

Most Effective

Add Value

Cost Efficient

• The importance of each of these elements will be dictated by the

end client.

• To a degree Best Practice is in the eye of the beholder.

• Best Practice is always changing and adjusting and without a

philosophy and commitment to Continuous Improvement Best

Practice may be fleeting and temporary.

THANK YOU

If you would like to find out more about the STRANG

Tradex Group please go to our web site

www.stxgroup.com.au

We thank you for the opportunity to present here today.