3PL

Selection
Services
Dilemma
ITC Paperboards and Specialty Papers Division

What are we dealing with?

ITC Paperboards &
Specialty Papers Division
Largest manufacturer of
Packaging and Graphic
Boards in South Asia
The following are the
types of Products
manufactured in the
company:
Packaging & Graphic Boards
Specialty Boards

Soda Recovery Process In Brief

Green
Lime
FILTE
R

LIME
MUD

WHITE
LIQUOR
WHITE
LIQUOR
CLARIFI
ER

DIGESTOR
AND
BLOW
TANKS

BLACK
LIQUOR

WASH WATER

WASHIN
G

CaC
O3

LIME
KILN

CO2

CaO

AIR

SR
P

SLAKER &
CAUSTICIZ
ER

GREEN
LIQUOR
CLARIFIE
R

WEAK WHITE LIQUOR

OXIDATIO
N

GREEN
LIQUOR

FLUE
GAS

SMEL
DISSOLVIN T
G TANK

SRB

MULTIPLE
EFFECT
FFF
EVAPORAT
OR
BLACK LIQUOR(70-80%
SOLID)

Cargo- Green Lime Filter

Transport Of Odd Dimensional Cargo (ODC)

From Chennai Port To Bhadrachalam Plant
There was a requirement
for transport of an ODC
cargo from Chennai port to
ITC PSPDs plant around
300 km from Hyderabad

Material was a project

cargo required for
expansion of production
line

Material dimensions :
12.8mx2.7mx3.1m
This translates to :
42ftx9.1ftx10.4ft

Typical Trailer dimensions:

40ftx9ftx5.5ft(from ground
level)- Flat Bed

Tonnage of cargo- 24.4 MT

India- Max available trailer

capacity- 40 (Bed Length)
with 27 MT payload
carrying capacity

Issues In Transportation Of ODC

Cargo
Project Cargo dimensions-Too large for typical flat bed trailer to carry
As per Central Motor Vehicles Act, 1989, maximum height of cargo from ground
level cannot exceed 13.2 ft
This is required as there are low hanging overhead railway lines and electricity
lines in different parts of India
Logistics department- Did not have expertise on transportation of such cargo
Earlier precedence for cargo transport- Left to supplier or contracted special
service providers
Contacted partner service providers and Fleet Operators to find solution for
transport of this cargo
One solution for the height issue is the usage of a low bed tractor trailer
Low Bed Tractor Trailer- Reduces bed height by nearly 3 feet.

Available Options
Typical Flat Bed TractorTrailer

Low Bed Tractor Trailer

Request for quotations sent out to three

contractors- AVX Ltd., ACE Ltd. and AC
Transport Ltd.
These contractors have significant experience
in transportation of project and odd
dimensional cargo
AVX Ltd and AC Transport Ltd. quoted Hydraulic Trailer
as suggested form of transport while ACE Ltd.
suggested Mechanical Trailers for transport

Project Department was then consulted

on feasibility of transport via Mechanical
Trailer

Main Issue- Sensitivity of Cargo to

transport
Due to road infrastructure in India, there
was a chance for damage of cargo in
transit
Project Department confirmed that the
material is a Shell, and contained no fittings
which would be damaged

Based on same, commercial and cost

analysis was done for the quotations
received

TransportationQuotations

Comparative Statement
AVX Ltd.

Material
Dimension

Weight
(MT)

Hydraulic
Trailer

ACE Ltd.

Mechanical
Trailer (Low
Bed)

AC
Transport
Ltd.
Hydraulic
Trailer

12.8m
2.7m
24.4 ACE Ltd
Rs.is14.3
Rs.at8Rs.
L 8 Lakhs including
Rs. 15
L
As perxabove
comparative,
most L
economical
all transport
x 3.1m
related costs

Main issue- Mechanical Trailer has a carrying capacity of 27 MT as per Central Motor Vehicles
Act,1989

Transporter assured that the material can be carried

ACE Ltd. had significant experience in transportation of such cargo

Based on the same, a calculated risk was taken to conduct the transport via Low Bed
Mechanical Trailer

Outcome
The transport of
the material was
delayed by nearly
20 days due to
documentation
issue at Customs

Due to this,
material could not
be moved out of
the port after
loading on the
truck

Transport from
Chennai to plant
took nearly 15
days due to cargo
tonnage and safety
concerns

Incurred
demurrage
charges of Rs
7500/day, coming
to Rs 1.5 Lakhs

Delay was within

project limit, as
other equipment
required for
installation had not
arrived yet

Multi Modal Transport

Talc, an input for paper manufacturing is procured from
Haldwani, Uttrakhand
Due to rainy season and lack of truck availability from
Andhra Pradesh, transport of Talc became difficult
Direct Truck availability from Andhra Pradesh reduced due
to drop in fish transport from Kakinada port to Northern
regions
Stocks depleting significantly due to this aspect leading
to crisis

Alternate Transport
Alternate Transport
means for
transportation of
material from
Haldwani were
considered
After bringing the
material to New
Delhi, rake wagon
loading would be
done at railway
station

One means was to

bring the material
through rail via
Delhi

Truck availability
towards Delhi was
not an issue as
they are close by
(around 270 km by
road)

From New Delhi to

Hyderabad the
transportation
would be by rake

Material unloaded
at Hyderabad
railway station and
then carried to
plant via trucks
(Road transport)

Entire operation in
three phasesRoad-Rail-Road
Costing- Rs.
3600/MT

Option of Lift onLift off of trucks

considered but not
found feasible

Comparative Statement
ITS Ltd

Material
Type

Monthly
Tonnage

From

To

Road
Truck (16
MT)

Savings
Sun
Savings
Transpor (Rs./Mont
(Rs.
h)
t
Annualiz
ed)

Rail +
Road

Talc
As seen above,200
the Rail+ Road combination gives a saving
of app. Rs. 1.8Rs
Lakhs/month
Rs

Rs 1.8

Rs 21.6

Hyderaba
4500/MT
3600/MT
L
However, the transit time Haldwani
increases from 10
days via Direct
Road Transport
to 15 days viaLRail + Road transport
d

As per companys material storage policy- minimum of one months stock must be stored
Hence it can lead to certain stock storage issues
Cost of maintaining additional stock can be an issue
Additional factor- Rake availability from New Delhi to Hyderabad can be an issue

Outcome
Transport resumed
from Haldwani to
Andhra Pradesh
using Rail + Road
transport mode

To avoid stock
storage issue, part
of the quantity
was transported
by direct road
transport as well

Model continuing
today as well