Logistics and Supply Chain Management Report - University Name

This report provides an in-depth analysis of the logistics and supply chain management challenges associated with the Waratah Coal – Alpha North Coal Project. The project involves transporting thermal coal via a 500 km railway line from Alpha to Abbot Point in Queensland, Australia. The report explores key logistical issues, including environmental concerns regarding railway project approval and dredging material disposal. It examines sea and road transportation alternatives, with a focus on the development of Terminal 2 at Abbot Point and the construction of rail lines. Australian customs issues, particularly those related to quarantine and biosecurity, are addressed, along with warehouse management strategies, including the use of third-party logistics providers like DHL. The report also covers risk management aspects, highlighting environmental risks and the importance of compliance with regulations. Recommendations and conclusions are provided, offering a comprehensive overview of the project's logistics and supply chain operations.

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and Supply chain management
Name of Student:
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1LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Executive summary
The report is intended to highlight the various types of logistics management activities associated
to the planning phase of Waratah Coal. The main consideration of the case has been studied with
the proposed rail line from “Galilee to Abbot Point” set up by “Waratah Coal – Alpha North
Coal Project”. This would involve translation of thermal coal on a 500 km railway track which is
to be built in the township of “Alpha in Central Western Queensland” to “Abbot Point port in
Northeast Queensland”. This would further require 40 gauge standard locomotives of hundred
tons each and 600 wagons of coal which are to be transported via inland region. The main
discussions have shown the logistics issues involved in this project, sea transportation and road
transportation alternatives, Australian custom issues, warehouse management and risk
management. The main depictions of the study has shown that the main logistical issues is seen
with getting approval of railway project as it has angered several environmentalists for
endangering the species of bird which exist in the local nature reserve. The project has involved
the proposal to put the dredging material which is to be carried in an area devoid of reef. This is
particularly important for preserving the ecology which is important for seagrass beds. The most
suitable site for sea transportation has been seen with the development of Terminal 2 (‘T2’) site
in Abbot Point terminal for coal terminal. The main road transportation for the locomotives will
involve construction of two rail lines from the Abbot Point. The government has proposed to
fund a 300 km rail line which is to be constructed by Indian giant of mining named Adani.
Several types of bio security risk will be assessed based on the goods which are imported from
overseas and shall be investigated as per “Bio security Act 2015”. DHL and Waratah staff will
be able to reanalysed operational processes before beginning system implementation and
configure its standard systems to maintain the warehousing needs.

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Table of Contents
1.0 Introduction................................................................................................................................3
1.1 Background............................................................................................................................3
1.2 Aim........................................................................................................................................3
1.3 Scope......................................................................................................................................3
2.0 Logistics Issues..........................................................................................................................4
3.0 Transport Mode- Sea and road..................................................................................................5
3.1 Sea Transport.........................................................................................................................5
3.2 Road Transport......................................................................................................................5
4.0 Australian Customs Issues- AQIS.............................................................................................6
5.0 Warehouse Management...........................................................................................................7
6.0 Risk Management......................................................................................................................8
6.1 Findings.................................................................................................................................8
6.2 Analysis.................................................................................................................................8
7.0 Recommendations and conclusion............................................................................................9
References......................................................................................................................................12

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1.0 Introduction
1.1 Background
“The Waratah Coal – Alpha North Coal Project”, is often known as “China First Project”
at the “Galilee Basin in Central West Queensland” which has been approved by the federal
government of Australia in 2013. “The Waratah Coal – Alpha North Coal project” is identified
as a 6.4 billion dollar worth of the mining project which will be associated to the processing of
coal handling facilities via 453 km railway line which will transport the coal from region of
mining to “Abbot Point coal terminal” situated at the coast of Bowen. The various test of
approval has cleared its way to continue the development process which involves
commencement of engineering work on 2014 for exporting of coal out from the “Abbot Point
Coal terminal in late 2016. Transhipment of thermal coal between the townships situated in
Alpha to Abbot Point will require 40 standard gauges of locomotives and a total of 600 coal
wagons which need to be transported via inland route based on Germany which is the point of
origin to Abbot Point port which is final point of destination (Mininglink.com.au, 2017)
1.2 Aim
The report aims to identify the challenges involved in transporting wagons from point of
origin to final point of this tradition. The analysis will be able to highlight on the details of
“inland, sea freight and port activities” along with the requirements prescribed under “Australian
Quarantine and Inspection Services (AQIS)”.
1.3 Scope
The main scope of the study has been identified to the bit about the various types of
logistical challenges associated to the “Alpha North Coal Project”.

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2.0 Logistics Issues
The main logistics concerns are associated to the scale of coal which needs to be carried
from the point of origin to the point of this tradition. “The Waratah Coal – Alpha North Coal
project” is considered as a $ 6.4 billion coal mining project which needs to facilitate the logistics
of large quantities of coal of up to 11 billion tons of thermal coal. This calls for a need of
building a railway line of approximately 500 km from inland regional setting in Germany which
is identified as the point of origin to Abbot Point port which is identified as the destination point.
The approval of railway project has angered several environmentalists as they fear that the
approval of such a project would endanger the species of bird which exist in the local nature
reserve. Henceforth the environmental groups have raised significant opposition for any kind of
construction which is related to the enormous logistics process such as building of railway for
the logistics operations.
The main issue associated with the project has been for the seen with the problem
associated to dredging. The project has involved the proposal to put the dredging material which
is to be carried in an area devoid of reef. This is particularly important for preserving the ecology
which is important for seagrass beds. Another major concern with the logistics issue has been
seen in terms of the cost involved in proceeding with the logistics operations. Another significant
concern has been identified in terms of construction of hundred kilometre of pipeline project
approximately near west of Clermont which will additionally incur the cost of $ 8 billion
(Queensland Mining & Energy Bulletin, 2014).

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3.0 Transport Mode- Sea and road
3.1 Sea Transport
Abbot Point has been identified as the government’s most preferred zone for developing
coal handling infrastructure which needs to be exported from “Galilee Basin”. The most suitable
site for sea transportation has been seen with the development of Terminal 2 (‘T2’) site in Abbot
Point terminal for coal terminal. Waratah has been already identified to lodge an application to
the State government for giving preference to the development of T2. Therefore measure
terminal will be able to facilitate the port infrastructure associated to the upstream flow of the
locomotives. The T2 terminal will be further able to bring about development of world’s most
rich coal deposits and enhance the efficiency for specialised coal export centres near the port of
Abbot Point. The transformation of locomotives via T2 terminal will be further able to provide
an “end-to-end solution” to the supply chain at “Galilee Basin” which has been identified to be in
conjunction with the “Waratah Coal mine & heavy haul rail line” (Waratahcoal.com, 2015).
3.2 Road Transport
The main road transportation for the locomotives will involve construction of two rail
lines from the Abbot Point. The government has proposed to fund a 300 km rail line which is to
be constructed by Indian giant of mining named Adani. The line will be responsible for
converting the town of Scottsville and splitting up of the same via Bowen. Adani will be
responsible to finish the construction of the line till the north of GVK’s. It has been further
identified that the line will constitute a total amount of $16.5 billion which is often considered as
the largest coal mine in Australia. The rail route will be further responsible to transport 40
standard gauges of locomotives and a total of 600 coal wagons (100 tons each) based on the
inland setting of Germany to Abbot Point (Couriermail.com.au, 2014).

6LOGISTICS AND SUPPLY CHAIN MANAGEMENT
4.0 Australian Customs Issues- AQIS
AQIS deals with the import and export inspection and providing certification for ensuring
a favourable plant, animal and human health status. AQIS carries out the operations through
specialist federal law enforcement officers who involved in quarantine services. Based on the
issues concerning the environmental degradation of the railway project and the mining activities
the project needs to be highly concerned with the quarantine risk material which is to be
investigated by AQIS specialised team. In case of failure in logistics compliance the company
may be subjected to several civil penalties which may even lead to prosecution and fine of above
$420,000 and imprisonment for up to 10 years along with a criminal record (Agriculture.gov.au,
2017).
The logistics operations of the company should ensure that it is successfully able to pass
the bio security tests. Several types of bio security risk will be assessed based on the goods
which are imported from overseas and shall be investigated as per “Bio security Act 2015”, or
are making a review of the existing measures relating to the same (Agriculture.gov.au, 2017).
The maritime vessels arriving at Australian territory from other regions need to adhere to
the bio security requirements. The Department of Agriculture and Water Resources has been
further able to suggest on the processes which are required for complying with the health-related
regulations and ensure that they are adequately managed. The different types of bio security risks
for the vessel having in Australia have been able to ensure that they are free from exotic disease
and pests. The department is for the thing to investigate the various types of goods even it
consists of major equipments (Agriculture.gov.au, 2017).

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5.0 Warehouse Management
“Warehouse management system” is needed to keep greater efficiencies and increased
efficiencies thereby lead to cost reduction efficiency. These systems help contribute to reduced
inventories as there are actually several factors would control the size of a company. For the
purpose of warehouse management, the tie up with third party logistics will prove to be highly
competitive. Waratah Coal knows that the high flyers like DHL’s capable and innovative IT
systems are essential to winning and operating new contract reason. DHL and Waratah staff will
be able to reanalysed operational processes before beginning system implementation and
configure its standard systems to meet with team needs (Sahuri & Utomo, 2016).
The main focus of the reduced inventory should be based on improved cash flow with
only one time or cutting costs and reducing the carrying costs for the going costs. It will further
lead to better production planning as the company will be able to know which products need to
be produced later and will lead to fewer inbound transferred thereby reduced amount of raw
material and inventory in process. The tie-up with DHL will further prove to be beneficial for
better purchase forecasting. Through the fish and inventory management the company will be
able to know which inventory are needed to be purchased later on and the quantity purchase
discounts availed from the supplies. The prediction of better purchasing forecast will also reduce
the inbound shipments and ensure a more ecological and environment friendly logistics
operations. The warehouse management system will further lead to more accurate shipments as it
will lower the total amount of cost of returns. The further implementation of the system will
ensure accurate labelling of inventory based on the inventory levels and the items currently held
in stock.

8LOGISTICS AND SUPPLY CHAIN MANAGEMENT
More advanced users of RFID system will be further able to ensure that the huge
quantities of supplies can be easily tracked in terms of the location, movement and status at the
place of destination. The warehouse management system will prove to be an all in one solution
to enhance overall warehouse management and monitoring process of the goods. Based on the
appropriate warehousing strategy the company needs to decide on whether to maintain the stock
as (LIFO or FIFO basis (Sahuri & Utomo, 2016).
6.0 Risk Management
6.1 Findings
The main findings of the study have been able to state on main concern of approval of the
project for the various types of environmental concerns raised by the local community. Some of
the identified issues from the findings have been further able to suggest on the issues associated
to railway project and its environmental impact in the both terminals of Galilee to Abbot Point
considering the said it concerned to the wildlife and bird species present in both the areas. Some
of the other findings of the study have been able to highlight on the significant concern with
possibility of pipeline project to support the operation. Other significant concerns has been
associated with Transhipment of thermal coal between the townships situated in Alpha to Abbot
Point will require 40 standard gauges of locomotives and a total of 600 coal wagons (100 tons
each) based on the inland setting of Germany to Abbot Point.
6.2 Analysis
The main analysis has identified the appropriate mode of transportation and warehouse
management strategies. Based on the consideration of sea transportation it has been identified
that the development of T2 terminal would be most appropriate in nature. A further analysis has

9LOGISTICS AND SUPPLY CHAIN MANAGEMENT
shown that the transformation of locomotives via T2 terminal will be further able to provide an
“end-to-end solution” to the supply chain at “Galilee Basin” which has been identified to be in
conjunction with the “Waratah Coal mine & heavy haul rail line”. The analysis on the road
transportation system has been inferred with construction of two rail lines from the Abbot Point.
In order to facilitate such an initiative the government has proposed to fund a 300 km rail line
which is to be constructed by Indian giant of mining named Adani. The logistics operations of
the company should ensure that it is successfully able to pass the bio security tests and able to
receive the appropriate certificate from “Australian Quarantine and Inspection Services (AQIS)”.
In order to respond to the various types of warehouse management challenges the
company needs to tie-up with DHL. In addition to this the prescribed innovation and technology
brought by the third-party logistics operator such as RFID system will be further able to ensure
that the huge quantities of supplies can be easily tracked in terms of the location, movement and
status at the place of destination.
7.0 Recommendations and conclusion
Some of the main recommendations to the company have been seen in terms of gaining
proper government approval associated to upstream infrastructure. It should be further able to
comply with the various types of customs procedure as prescribed under “Biosecurity Act 2015”.
The company should be further aware of the environmental concerns associated in construction
of the railway project and should try to emphasise on alternative strategies such as building a
fully functional pipeline project from the place of origin to the place of destination and ensure
that it does not interfere with the ecological concerns. The project needs to be particularly aware
of the site of dredging and it should not interfere with biodiversity in the particular region. The

10LOGISTICS AND SUPPLY CHAIN MANAGEMENT
main recommendation for sea transportation has been seen with the development of Terminal 2
(‘T2’) site in Abbot Point terminal which has been identified as the most suitable region for coal
terminal. Waratah has been already identified to lodge an application to the State government for
giving preference to the development of T2. Therefore measure terminal will be able to provide
the port infrastructure associated to the upstream flow of the locomotives. In addition to this, the
imported emphasis of road transportation should be based on the construction of two rail lines
from the Abbot Point. The aforementioned proposal has already gained the support of
government with total funding for 300 km rail line which is to be constructed by Indian giant of
mining named Adani. The line will be responsible for converting the town of Scottsville and
splitting up of the same via Bowen. Adani will be responsible to finish the construction of the
line till the north of GVK’s. The rail route will be further responsible to transport 40 standard
gauges of locomotives and a total of 600 coal wagons worth 100 tons each based on the inland
setting of Germany to Abbot Point.
Based on the several types of discussion associated to logistics issues, transport mode,
Australian custom issues, warehouse management and risk management it has been observed
that the main concern for logistics operation is seen with getting approval of railway project as it
has angered several environmentalists for endangering the species of bird which exist in the local
nature reserve. Henceforth the environmental groups have raised significant opposition for any
kind of construction which is related to the enormous logistics process such as building of
railway for the logistics operations. The project has involved the proposal to put the dredging
material which is to be carried in an area devoid of reef. This is particularly important for
preserving the ecology which is important for seagrass beds. Another major concern with the
logistics issue has been seen in terms of the cost involved in proceeding with the logistics

11LOGISTICS AND SUPPLY CHAIN MANAGEMENT
operations. The main depictions have further shown that the company needs to tie-up with the
third-party logistics provider such as DHL for the implementation of “warehouse management
system”.

12LOGISTICS AND SUPPLY CHAIN MANAGEMENT
References
ABBOT POINT TERMINAL 2 PORT PROPOSAL - Waratah Coal. (2015). Waratahcoal.com.
Retrieved 19 September 2017, from http://waratahcoal.com/portfolio_item/abbot-point-
terminal-2-port-proposal/
Biosecurity . (2017). Agriculture.gov.au. Retrieved 19 September 2017, from
http://www.agriculture.gov.au/biosecurity
Coal rail link’s power of two. (2014). Couriermail.com.au. Retrieved 19 September 2017, from
http://www.couriermail.com.au/business/the-adani-deal-means-galilee-basin-on-track-
for-two-rail-lines-to-abbot-point/news-story/c040ea6b38e616e7ce330e542aff5e43
Coal Sea Of Galilee - Queensland Mining & Energy Bulletin. (2014). Queensland Mining &
Energy Bulletin. Retrieved 19 September 2017, from http://www.qmeb.com.au/coal-sea-
galilee-2/
Home Aircraft, Vessels and Military . (2017). Agriculture.gov.au. Retrieved 19 September 2017,
from http://www.agriculture.gov.au/biosecurity/avm
Home Aircraft, Vessels and Military . (2017). Agriculture.gov.au. Retrieved 19 September 2017,
from http://www.agriculture.gov.au/biosecurity/avm
Mininglink.com.au. (2017). [online] Available at: http://mininglink.com.au/site/alpha-north-coal-
project [Accessed 19 Sep. 2017].
Queensland Mining & Energy Bulletin. (2014). Coal Sea Of Galilee - Queensland Mining &
Energy Bulletin. [online] Available at: http://www.qmeb.com.au/coal-sea-galilee-2/
[Accessed 19 Sep. 2017].

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Sahuri, G., & Utomo, F. A. P. (2016). Warehouse Management System. Information System
Application, 1(1).
Sahuri, G., & Utomo, F. A. P. (2016). Warehouse Management System. Information System
Application, 1(1).