Logistics Solution: Malaysian Biofuel Company Builds Plant In Record Time
A well-coordinated logistics plan and the use of airfreight helped Vance Bioenergy, one of Malaysia's leading biodiesel companies, complete its second plant in just seven months, a fraction of the time it normally takes to build a plant of a similar capacity. Partnering TNT Express, one of the world's largest express services providers, Vance Bioenergy worked with the company to airfreight key components of the plant's equipment from various countries across Europe to Malaysia.
Built on an eight acre site in Pasir Gudang, Vance Bioenergy's latest plant will produce 100,000 tonnes of biodiesel a year, worth US$78M based on current oil prices1, once it comes on stream. The plant is Vance Bioenergy's second biofuel plant on the site, and both plants combined contribute to an overall output capacity of 150,000 tonnes a year, worth US$117M per annum.
The highly automated, state-of-the-art facility houses an on-site testing laboratory equipped with gas chromatographs and other dedicated biodiesel testing equipment to ensure that customers receive the highest quality biodiesel that meets EN 14241 or ASTM 6751 – industry specifications required by global biodiesel markets.
Efficient Supply Chain Reaps Business
Having invested in the latest technology from Europe, Vance Bioenergy worked with TNT to airfreight over 17 thousand crucial parts with a total weight of 40 tonnes, from Europe to Malaysia.
Using TNT's Air Freight2 and Economy Express3 services among others for greater flexibility and efficiency, the components were first flown from suppliers across at least five countries, including Germany, Italy, the United Kingdom, Finland and Spain, before being consolidated and shipped to Malaysia.
Furthermore, TNT's Special Services team managed the entire delivery process from pickup to point of assembly, especially assisting with the application and obtainment of pre-customs clearance and approvals for the shipments, which further reduced the time normally taken to ship a similar consignment by about 50 per cent.
The well-organised air network infrastructure and expertise in customs procedures provided by TNT, which also air freighted parts for Vance Bioenergy's first plant, enabled the company to build its second plant in just seven months instead of the usual period of over one and a half years.
"From the start, our operations team with its deep expertise in plant construction had developed a detailed but difficult plan akin to JIT assembly in a production line. There was little margin for error and the strategy demanded a logistics partner that could meet our strict requirements," said Mr. Long Tian Ching, Managing Director, Vance Bioenergy. "We found in TNT the capabilities for a precise and seamless logistics solution that dovetailed perfectly with our disciplined approach for execution efficiency. As a result, we were able to reduce our construction time-table significantly and start our plant earlier."
"The TNT team were highly responsive, and put together a team to work the best solution to support our plans and follow through each step of the way. With the completion of the second plant, Vance Bioenergy group is now one of the largest large-scale biodiesel producers in Asia," he added.
"We're delighted to have partnered Vance Bioenergy on the completion of its second plant in Malaysia. Biofuel is a growing component of renewable and alternative energy resources and a growing sector for Malaysia as its feedstock, palm oil, grows in abundance. Our partnership with Vance Bioenergy is a clear demonstration of the extent of our commitment to customers in delivering customised shipping solutions which provide their businesses with a competitive edge," said Gerry Power, Managing Director, TNT Malaysia.
Further Plans for Vance Bioenergy
Vance Bioenergy is currently in the process of building a glycerine refinery next to its biodiesel plants that will produce pharmaceutical-grade refined glycerine from crude glycerine a by-product of the biodiesel production process. Once complete in October 2007, it will produce over 20,000 tonnes of pharmaceutical-grade glycerine per annum.
About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs around 159,000 people. In 2006, TNT reported €10.1B in revenues and an operating income of €1,276 M. TNT N.V. is publicly listed on the stock exchanges of Amsterdam and New York. TNT recognises its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environmental Programme to fight hunger and pollution in the world.
Established in 1976, TNT Malaysia has aggressively extended and enhanced its operations and services nationwide including Sabah and Sarawak. TNT currently operates an International Gateway at the Kuala Lumpur International Airport, two Global Express Centres located in Penang and Johor Bahru, and 10 branches across the country. TNT's state-of-the-art facilities at the Kuala Lumpur International Airport are estimated to handle 80 per cent of TNT's in-and-out bound international business. TNT Malaysia has also attained the Investors in People certification (iIP), ISO 9001:2000, ISO 14000, TAPA and OHSAS 18001.
About Vance Bioenergy
Vance Bioenergy Group is one of the first large-scale biodiesel producers in Asia. As a leading biodiesel producer, the Group has shipped significant volumes of quality biodiesel to the major markets globally.
Equipped with high tech testing equipment, Vance Bioenergy consistently meets global biodiesel specifications EN14214 or ASTM 6751 to ensure customers always receive top quality biodiesel.
Established on an eight acre site in Pasir Gudang Vance Bioenergy has access to the largest liquid port in Malaysia, allowing customers immense flexibility and cost-efficient shipment logistics. The Group also has long-term on-shore tanks to facilitate bulking and loading for large shipments by sea.
The Vance Bioenergy Group has more than 150,000 MT of production capacity and employs the proven state-of-the-art biodiesel production technology from Desmet Ballestra Oleo. Just-in-time production is deployed to ensure that customers receive fresh biodiesel.
1Based on current palm biodiesel price FOB Malaysia of approximately US$780 per tonne, as of week of August 20th
2TNT's Air Freight service is for large shipments that are carried by freighter plane.
3TNT's Economy Express service is a cost effective, day-definite delivery service for less urgent shipments to destinations worldwide.
SOURCE: Vance Bioenergy