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Impact analysis of a modal shift for EMONS 2WIN cargo business unit

Petkova, B.D. (2022) Impact analysis of a modal shift for EMONS 2WIN cargo business unit.

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Abstract:This research is carried out at EMONS, a logistics company, specialising in providing innovative services across Europe. The goal of this research is to provide an insight into the effects a modal shift will have on the network. The impacts have been made on several levels and the results obtained suggest that the container unit, along with the proposed ports have the potential for reducing equipment costs in the near future. The case study concerns the journey from Germany to Ireland, where more than one modality must be used. The transportation unit used is a trailer and currently, a combination of road, rail and sea modalities is used, where the trucks transit through the UK by road. Due to Brexit, there has been a change in the customs regulations, costs and waiting times, associated with entering and exiting the United Kingdom. This and other factors, such as external pressure and insufficient capacity poses a threat to the daily operations of the company and increases coordination complexity. Therefore, the aim of this research is to do an impact assessment of a modal shift, where different alternative routings are identified and subsequently assessed that have a direct connection by ferry between continental Europe and Ireland. Following along is the introduction of containers as transportation units to ease the transition between the sea and road modality. The impact tool incorporates three aspects: measurement of the proposed alternatives and current situation, a demand forecasting to identify potential savings and a sensitivity and uncertainty analysis of the solution alternatives. Overall, two versions of the tool were developed, with an additional design proposal of a third one. In the first version, the focus was mainly on measuring the chosen key performance indicators, in order to obtain the cost analysis of the alternatives. The design was chosen in discussion with the company and during the course of multiple meetings, the cost per pallet was measured with the tool by calculating all cost elements together. It was crucial to be able to validate the correctness of the calculations, thus cross-validation and comparison with pre-existing cost analysis tools from Emons was made. In the second version the focus was about deciding what kind of uncertainty and sensitivity analysis to do. It was of value to the company to obtain information, regarding possible increases in fuel and a possible traffic jam delay, thus they were both programmed as scenarios in the tool. Results suggest that the alternative routings with the container unit have a similar gross cost per pallet of around €100 when the current equipment and route. The travel time for the container is 6-8 days, which is double that of the 2WIN double deck trailer, however with less distance travelled by road, the container solution reduces the driving hours and thus saves cost, as seen in the figures below. From the sensitivity analysis there is an increase of 1 percent for each 5 percent change in fuel price.
Item Type:Essay (Bachelor)
Emons Group, Milsbeek, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:55 traffic technology, transport technology
Programme:Industrial Engineering and Management BSc (56994)
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