conveying calcined coke 18nov08

8/7/2019 Conveying Calcined Coke 18NOV08

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HOUSTON MATERIAL

HANDLING SOCIETY

MEETING

NOVEMBER 18, 2008


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I hope I can stay awake through

this guys presentation.


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They overfeed us then put on this

right after dinner to talk about things

I already know.


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Whats in this for me?


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Come away with a betterunderstanding of the key elements

driving capital projects

Hopefully you will

D

evelop ideas that improve themarketability of your services andthe netback of your projects andproducts


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WE

An equipment manufacturer andgeneral construction organization

Specializing in thedesign andconstruction ofdry bulk material

handling andstorage systems

Design

Agrico Sales

Fabricate

Erect Electrify

And help start upthe projects we

build

Engineer


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Agrico Sales

Provides a confidential budget

quote to modify a facility

This saves time and moneydetermining if a project meets

guidelines for investment

We do this at no cost to you


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We Build


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Agricos recent customers include:

Exxon

Jacobs Engineering

Marathon

Ashland Petroleum

Petro-Canada/Bantrel

Great Lakes Carbon/Aimcor (now Oxbow)

Ferrominera Orinoco

CIICarbon (multiple projects) Bunge Grain

Ansac


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Whats in this for Bob?


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We hope this presentation causes

you to remember Agrico Sales

as you develop dry bulk projects


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Key elements in handling dry bulk

Safety

Environmental Soundness

Reliability and ease ofmaintenance

Efficient product movement


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Safety

In addition to all of the usual safety concerns ina process i.e. refinery, dry bulk handling can addthe dimension of mobile equipment such asfront-end loaders and trucks

In addition to trucks and front end loaders theremay be belt conveyors, reclaimers, etc. whichrequire guards and possibly restricted areas


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Environmental

Like safety, environmental has severallevels of governmental and corporateregulations to govern its handling and

storage every step of the way

In addition to this, dry bulk operationsare often considered an eyesore even if

all environmental considerations are met


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Water sprays at transfers or load points and stockpiles

Chemical additives to water sprays

Scrapers, drip pans & totally enclosed belt conveyors

Wash down systems

Dust collectors

Covered storage

Settling ponds

Environmental equipment:


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Reliability and ease of maintenance

Handling systems often need to operate everyday. The basics of good preventive maintenanceapply to this equipment involved just as it doeson other operating units

When building new or revising an existinghandling facility, build in as much flexibility aspossible because

Things Change!


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Efficient delivery to the market place

There are many ways to move dry bulk and several of theseare often employed between you and the end user

Mobile equipment

Pneumatics

Belt conveyors

Trucks

Railcars

Barges

Ocean going ships

Handling methods:


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THE TRANSPORTATIONCOST OFA PRODUCTCAN BE A LARGE PORTION OF THE TOTALCOST.

WHILE PRODUCT/PROCESS CHANGES CAN BEVERY EXPENSIVE TO MAKE, THE COST OFDELIVERING IT TO THE MARKEPLACE CAN BERELATIVELY EASY (INEXPENSIVE) TO CHANGE

THE ABOVE TWO BULLETS CAN GREATLYIMPACT PROFITABILITY

Basic principles of dry bulk movement:


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Old delivery system

Ship railcars 90 miles (includes cost to ship heel back to refinery) 13.00

Contractor dig coke from Cars with backhoe 1.65

Truck 1/4 mile to a grizzly over a hopper 1.25

Contractor breaks lumps through the grizzly to load barges 1.80

Railcar demurrage 4.00

Barge movement to Gulf coast 4.75

Store coke in barges until 1 day before it is needed 4.50

Contractor dig coke from barges & load rail cars 2.45

Rail coke 3 miles to production facility 3.50

Unload railcars 2.00

Total $38.90

$/ST


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Improved delivery system

Ship railcars 90 miles 10.00

Terminal unload cars with Backhoe and remove heels through the bottom & load barges 4.05

Barge movement 3.65

Pay contractor to unload Barges to plant storage 2.40

Total $20.10

$/ST


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A Difference of$18.80/st

Or 50%Which is 27% of delivered

cost of the product


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General rules of thumb for dry

bulk movements:Deliver product to the primary method

of conveyance as soon as possible

If water movements are involved,move your product to water as early aspossible

Eliminate handling steps wheneverpossible


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bulk movements:

Use the lowest cost method ofconveyance for the distance involved

Move shipments in the largest lotspossible


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bulk movements:

Explore methods of improving thetotal logistic chain with the end user

There is strength in multiple modes ofshipping or multiple carriers


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Summary

Optimizing logistics will have apositive financial impact no matterwhat the market conditions

A few extra dollars per ton can helpwhen struggling to improve profitsor stay in the black

This can often be the justificationneeded for capital projects


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QUESTIONS ?


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Agrico Sales, IncPhone: (504) 436-9400

Fax: (504) 254-6458

E-Mail: [email protected]

Website: agricosales.com

Address: 14900 Intracoastal Dr.

New Orleans, LA 70129

USA

conveying calcined coke 18nov08

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