Evaluation and optimization of operation

efficiency of oil transfer depot

Cite as: AIP Conference Proceedings 2036, 020009 (2018); https://doi.org/10.1063/1.5075649
Published Online: 12 November 2018

Yang Shen, and Dong Mu

ARTICLES YOU MAY BE INTERESTED IN

Preface: 3rd International Conference on Materials Science, Resource and Environmental

Engineering (MSREE 2018)
AIP Conference Proceedings 2036, 010001 (2018); https://doi.org/10.1063/1.5075640

Test and application of underground sand control volume fracturing in ultra-low permeability
reservoir
AIP Conference Proceedings 2036, 020010 (2018); https://doi.org/10.1063/1.5075650

Precise transfer matrix method for solving differential equation systems

AIP Conference Proceedings 2036, 020004 (2018); https://doi.org/10.1063/1.5075644

AIP Conference Proceedings 2036, 020009 (2018); https://doi.org/10.1063/1.5075649 2036, 020009

© 2018 Author(s).
 Evaluation and Optimization of Operation Efficiency of Oil
Transfer Depot
Yang Shen1, a), Dong Mu1, b)
1
School of Beijing Jiaotong University, Beijing 100044, China.
a)
17120589@bjtu.edu.cn
b)
dmu@bjtu.edu.cn

Abstract. The oil transfer depot is an important node for loading, unloading, transshipment and temporary storage of
petroleum products, and is an important interface for connecting different oil transportation modes. Taking a large oil
transfer depot in China as an example, the author puts forward the operational efficiency indicator system of the oil transfer
depot, and evaluates its operational efficiency by fuzzy comprehensive evaluation method. And proposes the corresponding
optimization plan for its operational efficiency.

Key words: Oil transfer depot; Operation efficiency; Evaluation; Optimization; FCE method.

INTRODUCTION
Oil is known as "the blood of industry" and is the world's most important power fuel and chemical raw material.
It is also a non-renewable resource, which has important strategic value and widely used in various fields. Because
petroleum products are dangerous and flammable, it needs extremely attention in the storage and transportation. Oil
transfer depot is an important node for loading, unloading, transporting and temporary storage of petroleum products,
which plays a connecting role between different modes of transportation. Once accident occurs, it may cause serious
casualties and property losses [1]. Therefore, its operational efficiency is directly related to the company's efficiency
and the safety of production.
"Efficiency" refers to the most effective use of resources under the given resources and technology conditions. In
this paper, the fuzzy comprehensive evaluation method is used to judge the operation efficiency. Because the
efficiency is ambiguous, the efficiency of the oil transfer depot comes from people's understanding of objective things.
It needs to consider the different dimensions of the operation and the different elements under the dimension [2].
The research mainly includes the following aspects:
1. Analyze the role of oil transfer depots in the transshipment and storage of petroleum products. Including the
main business of the depot, business processes, and management information systems.
2. Build an operational efficiency indicator system for oil transit depots. The efficiency indicator directly reflects
the productivity level of the department. This paper divides the operational efficiency indicators of the oil transfer
depot into three dimensions: time, cost and quality, and selects the key indicators of each dimension.
3. Evaluation of the operational efficiency of the oil transfer depot. It evaluates the operational efficiency of a
secondary oil depot in China and proposes optimization proposals for operational efficiency for the oil depot.

OPERATION STATUS OF A DOMESTIC OIL TRANSFER DEPOT

The author conducted a long-term observation and visit to a large domestic oil transfer depot, and conducted a
special investigation and research for 4 months. As the company's requirements, in this paper we hide the name and
address of the depot.

3rd International Conference on Materials Science, Resource and Environmental Engineering (MSREE 2018)
AIP Conf. Proc. 2036, 020009-1–020009-9; https://doi.org/10.1063/1.5075649
Published by AIP Publishing. 978-0-7354-1762-5/$30.00

020009-1
 Introduction of the Oil Transfer Depot
This oil depot is a large oil transfer depot in Chongqing, established by a large Chinese oil company. It is a
secondary depot. It involves oil’s haulage, rail transport, water transport, pipeline transport and oil storage for
petroleum and petroleum products.
The oil depot area covers an area of 40.5 acres. There are 5 inner floating roof storage tanks and 5 buried oil tanks.
The total tank capacity is 37,000 m³. There are 3 2000 m³ gasoline storage tanks and 2 3000 m³ gasoline storage. For
tanks, the maximum storage capacity of gasoline is 12,000 m³ (8050 tons), five 5000 m³ buried diesel storage tanks,
and the maximum storage capacity of diesel storage tanks is 25,000 m³ (19,125 tons). The pipeline from the oil bank
to the tank area is 1,500 meters long, and there are 8 oil-bearing cranes on the road, including 4 gasoline one and 4
diesel one.
The oil depot has 77 employees, including 1 director, 2 deputy directors, 8 management personnel and 69 general
employees. The oil depot has an office, a business department, an equipment department, and a security department.

Operation Status
The oil depot has a loading/unloading oil terminal. The oil tanker stops at the pump shipside, and the staff connects
the oil-transporting composite hose, starts the oil pump, and transports it to each tank storage through the oil pipeline.
The oil tanker is divided into a 5,000-ton oil tanker and a 3,000-ton oil tanker. The unloading rate of the tanker is
220t/h for diesel and 180t/h for gasoline.
The business flow chart is shown in Figure 1.

waterway oil collection process

Stage
Business Dept

Customs Verify
Superior Input order
declaration|1 information|1
notices information
5hs h
Dispatching

Boat and boat

Stuff in Examine and Scheduling|1
room

communicati
place|1h approve|5hs h
on|1h

Start
Wharf

Measurement End of the Arrival of

unloading|22 Return|2hs
and test unloading ship
0t/h,180t/h
Facility section

Facilities in
Open valve Close valve Device reset
place|3hs

FIGURE 1. Waterway oil collection process

The oil depot has an oil supply field with 8 oil-lifting crane pipes. The oil pump can be used to pump oil to 8 tank
cars at the same time. Each oil-lifting crane tube is equipped with a liquid level alarm device.
The flow chart of roadway oil supply process is shown in Figure 2.
The management information system of the oil depot is divided into two parts, one is the business management
system, and the other is the dispatch management system. The business management system manages the outbound
business of the oil depot, registers, archives, and forms reports. The dispatch management system monitors and
controls the facilities, ships, vehicles, and storage tanks that are being operated.

020009-2
 BUILDING THE INDICATOR SYSTEM

Operation Efficiency Evaluation Dimension

Efficiency indicators directly reflect the productivity level of the department, and it is the main reference factors
for measuring the efficiency of depot operations. In order to achieve the connection and transfer of various elements
in the oil transfer depot, it is necessary to take into account the goals of time, cost and quality.

Roadway oil supply process

Business Dept

Tank car Printed Tank car

System entry
arriving documents leaving

Open the End of

Observation
Oil field

Tank car in valve and supply and

and
position start supply closed the
measurement
of oil valve
Facility section

Connecting
Electrostatic Pick up the
Static Link the crane
metering crane tube
tube

FIGURE 2. Roadway oil supply process

Operational Time Dimension (OT): This dimension reflects the total time spent by petroleum products from the
input to the output of the system. From the OT dimension, in the process of loading and unloading, the preparation
time requires complicated procedures and approval from superiors, as well as the preparation of equipment and
personnel. The average collection preparation needs 27 hours, and the average supply preparation needs 2 hours. For
different types of oil, the loading and unloading time is also different. The loading/unloading rate of diesel is 220t/h,
and the rate of gasoline is 180t/h. And in the roadway oil supply, the tanker car is full within 20 minutes. The average
time to complete each oil collection order is 2-3 days, and the time to complete each oil delivery order is 0.7-1 hour.
The inventory turnover time of the oil depot is about 6-7 days on average.
Operating Cost Dimension (OC): This dimension reflects the total cost spent by petroleum products from the input
to the output of the system. From the OC dimension, Petro China, as a large-scale central enterprise, it has strong
funds for site construction and facility personnel investment. The site, facilities and equipment of the oil depot are
owned by Petro China. The equipment is more advanced, the service life is longer, and the depreciation expense is not
very high. The total energy consumption is low, mainly in the process of sending and receiving oil products. Almost
no downtime, and once the equipment is faulty, there is also a comprehensive emergency response plan. But the oil
attrition rate is high. The attrition rate of the oil depot is about 4%, and the rate required by Petro China needs to be
controlled within 3%. This level in developed countries is around 1.1%-1.3%.
Operational Quality Dimensions (OQ): This dimension reflects the operational capabilities and reliability of the
depot. In order to ensure the safe production of the depot, meet customer requirements, and achieve environmental
friendliness, the operation of the depot needs to be safe and reliable. The quality of depot operation is embodied in the
following: 1. Establish safety production responsibility system [3], and adopt safety precautions, in-process control,
and standard operations to prevent accidents. 2. Provide fast, convenient and accurate support for access to external

020009-3
systems, provide safe and reliable transportation mode to switch access. 3. Provide a complete information security
mechanism to achieve comprehensive protection of information and ensure the normal operation of the system. Ensure
the robustness and stability of the system. 4. Provide an effective monitoring mechanism of the system, so that the
operation of the depot can be monitored to facilitate timely detection of errors and troubleshooting.

Indicator System
Based on the survey and the recommendations of the oil depot leaders and experts, we identified key indicators
that affect the operational efficiency. The evaluation indicator system is shown in the following table.
TABLE 1. Key indicator system affecting the operational efficiency of oil depots
Dimen
indicator description
sion
Preparation time Personnel, equipment seating time and program preparation time before loading and unloading.
Unloading/delive
The time oading or unloading per ton of petroleum or petroleum products.
ry time
time Order completion
The average total time from the arrival of the goods to the delivery(Oil of the same tonnage).
time
Inventory Represents the number of days required for inventory turnover.
turnover time Turnover days =365/ turnover times.
Depreciation
Depreciation expense of facilities and equipment in the depot.
expense
Energy consumption of vehicles, ships and equipment in the depot, as well as the water and
Energy cost
cost electricity bills.
Maintenance costs and additional costs due to downtime, machine preparation, process
Maintenance cost
adjustments, etc. due to machine failures or site problems.
Oil attrition rate The loss of petroleum and petroleum products during handling and storage.
Reduce the probability of accidents through precautionary prevention, in-process control, and
Safety
safe operation.
Stability Personnel and equipment can work stably to avoid economic losses caused by downtime.
quality Information The exchange and sharing of information between different departments at different levels.
Sandardization Standardize the process and operation.
Environmental Reduce pollution, reduce the energy consumption and emissions, or minimize the negative
friendliness impact on the environment.

In the indicator system, the efficiency indicator of each dimension has complete level relationship only with its
own dimension.

FUZZY COMPREHENSIVE EVALUATION

Fuzzy Comprehensive Evaluation Method[4]

Using the fuzzy comprehensive evaluation method, it is first necessary to carry out dimensional analysis and
analytic hierarchy analysis on the efficiency evaluation indicators, and set the weight ratio of each evaluation index in
its evaluation vector. For the collected collection of reviews, the rating values of each rating are also determined, the
evaluation of the indicators is quantified, the evaluation model is established, and the evaluation results are obtained.
Specific steps are as follows:
1) For a certain efficiency index dimension B, set its key indicator set to U and have m key indicators. Then there
are:

U , , ,……, (1)

The set of evaluation levels is V, and there are an evaluation grades. There are:

V , , ,……, (2)

020009-4
 2) The fuzzy relationship between the set of key indicators U and the set of evaluation levels V can be expressed
by the evaluation matrix R:
…
R … (3)
… …… …
…

Where represents the corresponding key indicator , the j-th comment of the indicator, the i-th row in the
matrix
, ,……, Represents the single factor evaluation of the i-th key indicator , and the following
relationship exists:

, , 0 1 , and ∑ 1 (4)

3) For multi-factor evaluation, it is necessary to consider the degree of influence of each key indicator in the overall
evaluation of the dimension. The magnitude of its influence forms a fuzzy subset A, A , ,…, . The degree
of influence of each factor in the overall evaluation ( ) is obtained by expert review method, and

∑ 1 (5)

Assuming that both the evaluation matrix R and the impact degree set A can be derived by the expert review
method, the dimension fuzzy comprehensive evaluation set B is:

B AR, A , ,…, (6)

Establish Evaluation Matrix

In the process of constructing the evaluation matrix, it is necessary to set the weight of the evaluation index and
conduct the correlation test. The weight values of key indicators in each dimension are given based on data, expert
opinions, and analysts' understanding.
According to the efficiency evaluation index system, we constructed the operational efficiency evaluation matrix
of the oil depot. We invited 3 oil depot leaders, 3 industry experts, 14 oil depot technicians, 1 Beijing Jiao tong
University professor, 27 Beijing Jiao tong University logistics department master, a total of 58 experts and scholars,
judging and scoring the ratings of the various key indicators.
Fifty-eight scoring tables were issued and 56 valid scoring tables were received. By averaging each single factor,
the operational efficiency evaluation matrix is as table 2.

Comprehensive Evaluation
In terms of time dimension, the operation speed of the oil depot is at a medium and fast level. Among them, the
preparation time of the operation is longer, which lowers the overall level of the time dimension, and the loading and
unloading speed is at a relatively fast level.
In terms of cost dimension, the economic level of the operation of the oil depot is also in the general level,
depreciation, energy consumption, maintenance costs are in the middle level, compared with developed countries, the
oil attrition rate is higher.
In terms of quality dimension, the quality of the oil depot is high. The high level of safety and stable operation of
the oil depot are the advantages of the oil depot. However, there is still room for improvement. For example, the level
of informatization is low, and information construction needs to be strengthened. The standardization level can also
be improved.
The oil depot is a national secondary oil depot with a large volume and a wide radiation range. The facilities and
oil storage equipment in the depot are relatively advanced in China and have a high safety factor. In general, the oil
depot is a relatively advanced oil transfer depot in China. The oil transfer depot like this, plays an important role in
the logistics system of Petro China.

020009-5
 With reference to the comprehensive evaluation results of the operation efficiency of the oil depot, and the author's
field visits and investigations, we have summarized some shortcomings:
Congestion at unloading terminals. There is congestion in the unloading terminal. Once congested, the number of
tankers lined up in the terminal averages about 3-4, and the waiting time for operations averages 5 days or even longer.
Lengthy process. In the oil collection/supply process, almost all processes are carried out in series, and the process
is too lengthy. The interval between some processes is too long.
High oil attrition rate. Oil attrition mainly occurs during loading/unloading processes and storage processes. In this
depot, the rate is 4%. Petro China requires that the rate be controlled within 3%, and rate in European countries is
between 1.1% and 1.3%.
Management information system function is simple. The oil depot has just begun to be informative, and the
information system function in the current oil depot is still simple. The system is independent and incomplete. It is
low intelligence and some data needs to be manually entered.
TABLE 2. Evaluation matrix of the oil transfer depot operational efficiency
Dimension Key indicators Evaluation level
Time Excellent Fine General Bad
Preparation time (0.3) 0.13 0.14 0.42 0.31
Unloading/delivery time (0.3) 0.36 0.44 0.16 0.04
Order completion time (0.3) 0.15 0.33 0.36 0.16
Inventory turnover time (0.1) 0.17 0.39 0.35 0.09
Cost Excellent Fine General Bad
Depreciation expense (0.2) 0.28 0.30 0.32 0.10
Energy cost (0.3) 0.22 0.25 0.39 0.14
Maintenance cost (0.3) 0.20 0.27 0.38 0.15
Oil attrition rate (0.2) 0.13 0.25 0.35 0.27
Quality Excellent Fine General Bad
Safety (0.5) 0.77 0.21 0.02 0
Stability (0.2) 0.65 0.27 0.04 0.04
Information (0.1) 0.10 0.14 0.52 0.24
Sandardization (0.1) 0.20 0.46 0.21 0.13
Environmental friendliness (0.1) 0.33 0.32 0.20 0.15

Through the fuzzy evaluation formula, the comprehensive evaluation of the time dimension of the operational
efficiency is (0.209, 0.312, 0.317, and 0.162); the comprehensive evaluation of the cost dimension is (0.208, 0.266,
0.365, and 0.161); the comprehensive evaluation of the quality dimension is (0.578, 0.251, 0.111, and 0.06).

OPERATIONAL EFFICIENCY OPTIMIZATION

Based on the evaluation results and the actual problems we found, we have put forward several optimization
suggestions on how to improve the efficiency of the oil depot operation.

Improve the Utilization Ratio of Existing Resources and Optimize the Service Capability
The oil depot is a national standard secondary oil depot with a total tank capacity of 37,000 m³ and a formal staff
of 77 in the library. It has specialized oil loading and unloading stations and equipment. In theory, it is fully capable
of serving 5,000-ton oil tankers. In order to reduce the queuing time of oil tankers, it is necessary to improve the
utilization rate of existing resources in the oil depot.
On the one hand, it is necessary to arrange the number of people on duty. At present, the employees are divided
into three shifts, each shift is 24 hours, regardless of holidays. This leads to the fact that no matter whether there is an
unloading task, the number of employees in the unit is only about 25 people. When there is no oil unloading task, the
employees are very relaxed. Once the tanker arrives in the oil terminal, the employees need to work overtime to

020009-6
complete the unloading task. Therefore, it is necessary to arrange more employees on duty when there is a task of
unloading oil. When there is no task of unloading, arrange a small number of personnel to be on duty [5].
On the other hand, increase the unloading channel. At present, the oil depot is only serving one oil tanker during
the same period of time. The average unloading time for a 3,000-ton tanker is 15 hours, and for a 5,000-ton tanker is
25 hours. By increasing the oil pipeline on each tanker or by adding an unloading port, the terminal can serve two or
more tankers during the same period to expand service capacity and reduce queuing time.

Process Optimization
As can be seen from the 2.2 current status, the operational process, especially the process of waterway oil collecting
is too long and almost all processes are carried out in series. The total time for serving 3,000-ton diesel oil tankers is
43 hours. The preparation time is 27 hours, and the oil unloading time is only 16 hours.
So we can improve the loading and unloading efficiency of the oil by renovating the process and simultaneously
carrying out the parallel processes, especially shortening the pre-discharging preparation time [6]. The modified
process is shown in Figure 3.

Reconstructed waterway collection process

Stage
Business Dept

Customs
Superior Print order
declaration|1
notices information
5hs

Examine and
Dispatching room

approve|5hs

Verify Boat and boat

information|1 communicati
Stuff in Scheduling|1
h on|1h
place|1h h

Start
Wharf

End of the Measurement Arrival of

Return|2hs unloading|22
unloading and test ship
0t/h
Facility section

Close Open Facilities in

Device reset
valve|0h valve|0h place|3hs

FIGURE 3. Reconstructed waterway collection process

Standardization Construction
As a transfer oil depot, the business is simple. Involving oil handling, temporary storage and transshipment, and
requires many repetitive operations. The order and efficiency can be ensured by establishing a liability system and
standardizing operational standards. Including the following aspects:
Establish a responsibility system. For each type of work and position, define the responsibility and the work scope.
Define departmental responsibilities and powers.
Develop process specifications. Define the scope, content, procedures, processing methods, and execution
conditions of each business, and establish business standards.

020009-7
 Standardized operation. The oil depot staff has a long service experience and an average age of nearly 50 years.
Standardized operating system can pass on the work experience and methods of the old staff in a standardized form.
Standardize safety production. Establish safety management systems and operating procedures in the form of rules
and regulations. Regularly check the use of equipment, the operating conditions, and conduct safety training for
employees.

Informatization Construction
The informatization construction of the oil warehouse is just in its infancy and incomplete. Informatization
construction is needed to enhance the ability to collect, transmit and process information. The information construction
of the oil depot needs to start from the following aspects:
Enhance information exchange with upstream and downstream departments. To strengthen the connection with
the lower and upper departments, it is necessary to associate the database and information system. Quickly respond to
the incoming order command in a timely manner and prepare in advance [7]. Real-time control of the inventory of gas
stations in the lower-level jurisdiction, and timely replenishment of gas stations with urgent inventory.
Improve the scope of information system functions. The business information system and the MIS function should
be completed.
The depot should make its system more intelligent. The system needs to have the ability to detect the detected
environment and the condition of the equipment, and provide timely warning of potential abnormal conditions and
dangerous situations.

SUMMARY
The purpose of this paper is to evaluate the operational efficiency of domestic oil transfer depot. And we selected
a secondary oil depot of a large domestic oil company. We investigated the basic situation and operation status of the
transfer depot and analyzed its main business and MIS system.
Subsequently, based on the three dimensions of operation time (OT), operation cost (OC) and operation quality
(OQ), we established a key indicator system table that affects the operational efficiency of the oil depot.
Then, we invite experts to assign weights to the key indicators under each dimension, and judge and score the
indicators according to the operation of the oil warehouse, construct the evaluation matrix of the operational efficiency
of the oil depot. We used the FCE method to comprehensively analyze the operating efficiency, and we have found
that congestion, lengthy process, high oil attrition rate, and low level of informatization are the main problems
affecting the operational efficiency.
Finally, based on the evaluation results and the survey findings, we have proposed a set of optimization solutions
to improve operational efficiency.
This paper also has shortcomings. The FCE method is simple and easy, but some of subjective. The evaluation
comes from people's understanding and comparison. And due to the lack of data, we did not propose transportation
optimization plan.
In the following research, we could investigate the distribution points of downstream oil sales stations, the actual
distance between each sales station and the transfer depot, the length of various transportation routes, the transportation
rate, the distance between the sales station and the terminal, and the cost of each process, to optimize and select
transportation methods and transportation routes.

ACKNOWLEDGMENTS
Research on Logistics Resources Low-Integrating mode and Dynamic Decision. China natural science foundation
project 2015, 1-2018, 12. No. 71473013.

REFERENCES
1. Zhou R Y, Zheng-Wen L, Hue-Yong P N. Analysis of Fire and Explosion and Fuzzy Dynamic Safety Assessment
for Oil Depot Based on Mutation Theory [J]. China Safety Science Journal, 2006.

020009-8
2. Qing Li, Fengxiang Qian, Lei Yu. Estimation of vehicle emission on mainline freeway under isolated and
integrated ramp metering strategies. Environmental Engineering & Management Journal (EEMJ). May2018, Vol.
17 Issue 5, p1237-1248. 12p.”
3. Webster H N, Carroll E B, Jones AN R, et al. The Burchfield oil depot incident: a discussion of the meteorology
[J]. Weather, 2010, 62(12):325-330.
4. Jin J L, Wei Y M, Jing D. Fuzzy comprehensive evaluation model based on improved analytic hierarchy process
[J]. Journal of Hydraulic Engineering, 2004(2):144-147.
5. Chan H L, Pang a, Li K W. Association rule based approach for improving operation efficiency in a randomized
warehouse [M]. 2011.
6. Wang Q, GAO J. Research and application of risk and condition based maintenance task optimization technology
in an oil transfer station [J]. Journal of Loss Prevention in the Process Industries, 2012, 25 (6):1018-1027.
7. Du Z, Mao Y, Lu M. Design and Implementation of Safety Management System for Oil Depot Based on Internet
of Things [J]. IEEE, 2012:249-252.
8. Jun Y I, Assocprof W U. Method of Second Fuzzy Comprehensive Safety Evaluation and Its Application to Oil
Depot Safety Evaluation [J]. China Safety Science Journal, 2007, 17(6):135-139.
9. Hector D P. Service innovation to drive chemical operation efficiency [J]. IFAC Proceedings Volumes, 2012, 45
(6):39-43.
10. Li B F, Wang L. The Optimization of Network-Oriented Military Material Station and depot's Warehousing
Process [J]. Logistics Management, 2003.
11. Du J, Li Q, Qian F. Impact of Different Ramp Metering Strategies on Vehicle Emissions along Freeway
Segments [J]. Journal of Transport & Health, 2018, 9:S38.
12. Q Li, J Du, F Qian, L Yu. Characterizing Particulate Matter 2.5 Concentration Pattern within a Transportation
Network: A Case Study in the Port of Houston Region. Journal of Pollution. 2018, 1 (106), 2.

020009-9