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   CSIRO  |  SOLVE  | Issue 8  |  Aug 06  
ARTICLE
SUPPLY CHAINS:
Simulation to Crunch the Numbers for Coal Terminal
By Tony Kaye

Photo: Mark FergusThe Dalrymple Bay Coal Terminal (DBCT) near Mackay in north Queensland is, quite simply, massive. In an average week, more than a million tonnes of coal arrives there by rail, from 14 mines throughout the Bowen Basin. It is either unloaded into stockpiles or transferred directly onto bulk carriers destined for steel plants and power stations around the world.

The terminal’s annual throughput is about 59 million tonnes and it handles some 750 ships with cargo capacities ranging from 40,000 to 180,000 tonnes. The objective at the outset is to load them as quickly as possible. This means keeping the whole supply chain, from mine site to ship, operating at maximum efficiency.

Because surging global demand has accelerated Australian coal exports, the ongoing questions at DBCT, owned by Babcock & Brown Infrastructure, relate to what form of infrastructure expansions will best facilitate increased throughput.

After an intensive review, the company is now planning to expand the terminal’s capacity to 85 million tonnes a year. However, due to the complex dynamics of the coal market, it is essential that all sections of the supply chain (mine, rail and port) are synchronised so that the coal coming into the terminal matches the size of ships that are scheduled to dock.

All this is further complicated by the fact it is a multi-user supply chain.

Consequently, mathematical computer modelling is now playing an important and increasing role in terminal operations. A sophisticated simulation program developed by CSIRO mathematicians is an option being developed to help manage the whole process.

David Sier, a model developer from CSIRO Mathematical and Information Sciences, says the simulation runs the supply chain from mines to ships for a year to indicate how the system performed, how much coal was loaded and how effectively the major equipment in the terminal was being used.

DBCT logistics analyst Vic Mason says the objective is for a coal supply-chain model to be one of the inputs determining future capital expansion.

CSIRO has a long-standing relationship with DBCT. Dr Mason says CSIRO’s involvement in the operation of DBCT is largely due to its expertise in complex system modelling, in particular, modelling the allocation of storage space in the stockyard so that stacking and reclaiming of the coal can take place without major delays.

“This was leading-edge technology that CSIRO was well placed to provide with their in-depth mathematical expertise,” Dr Mason says.

He explains that the model simulates the interaction of trains, loading machines and ships, replicating stacking and reclaiming operations in the stockyard and loading coal. “The models that we’ve developed respond to infrastructure planning questions, showing the effect on coal throughput by installing new infrastructure. This allows the terminal operators to plan for the most effective use of the equipment.”

For further information contact:
CSIRO Enquiries
Email: Solve@csiro.au      Web: www.csiro.au
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Last Updated: August 8, 2006
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