Risk Mitigation Project Cargo –

Checklist for Success

[7-29% Logistics Cost]

By Marc Kerr

Risk Mitigation Project Cargo

Feasibility Study

Risk Mitigation Project Cargo

• Feasibility Study

– Route Survey: Taking into account

• All points of entry

• Hubs and transhipment points

• Physical Challenges and Restrictions

Risk Mitigation Project Cargo

Third World Pitfalls

Risk Mitigation Project Cargo

• Third World Pitfalls

– Corruption:

• FCPA

• European Union

• Australian Law etc

Risk Mitigation Project Cargo

• Third World Pitfalls

– HSE:

• All workers – including vendors/sub-contractors

• Governing Law / Statutes pertaining to employee

rights

Risk Mitigation Project Cargo

• Third World Pitfalls

– Government Regulations (or the lack thereof !):

• Curfews/strikes

• Customs and excise

• Certification of Equipment

Risk Mitigation Project Cargo

Factors for Success

Risk Mitigation Project Cargo

• Freight Forwarder

– Engineering Interface (client) :

• Reduced Costs

• Reduced Physical Challenges

Risk Mitigation Project Cargo

• Freight Forwarder

– Contractor Vetting:

• Client requirements

• Regulatory Requirements

• Safety

Risk Mitigation Project Cargo

• Human Assets

– Right people with the right skill sets

– Training

– Local Content

Risk Mitigation Project Cargo

Methodology S R E D I M

• Select

• Research

• Examine

• Develop

• Implement

• Maintain

Risk Mitigation Project Cargo

• Methodology (SREDIM)

–Select: Focus on area of concern

• Route Survey

• Engineering

Risk Mitigation Project Cargo

• Methodology (SREDIM)

–Research:

• Look at all options

• Possible Pitfalls

• Scheduling

Risk Mitigation Project Cargo

• Methodology (SREDIM)

–Examine:

• Discuss with relevant stakeholder what needs to be

achieved bearing in mind the research data

Risk Mitigation Project Cargo

• Methodology (SREDIM)

–Develop

• Matrix

• Contingency Planning

• Options Planning

Transport Infrastructu

re / Facilities

Transport Equipment

Transport Planning & Execution

Lifting- & Handling

Equipment

Risk Mitigation Project Cargo

• Methodology (SREDIM)

– Implement:

• Execute the plan

• Schedule

• Methodology

Risk Mitigation Project Cargo

• Methodology (SREDIM)

–Maintain

• Monitor

• Adapt

** REMARK: Based on industry experience – Not quantified