Mewong Exercise TASK 3: Secondary transport WFP Logistics, We Deliver

Lesson Objectives 1 2 By the end of this lesson, you will be able to: Identify the key differences between transport modes, their advantages and disadvantages 2 Optimize a given budget for secondary transport and describe the trade-offs between cost and effectiveness in decision making

Mewong Exercise Task 3: Overview The FDPs have been defined and secondary transport must be organized… You have been deployed in Negeri and you are the Logistics officer. The program unit has planned for 6 EDPs to be supplied from Negeri. Some EDPs are quite remote and the state of the roads will make the access difficult. You will have to present the pros and the cons for the transport in general, assess the different options of transport in the above scenario and optimize the given budget as rationally as possible. Timing Presentation exercise : 10 min Exercise: 110 min Debriefing: 60 min Handout The hand-outs 4 and 8 contain all the information you need for this exercise.

DO NOT PRINT IN WORKBOOK Mewong Exercise TASK 3: Secondary transport Your task: 1. Summarise in your group the pros and cons of each mode of transport: Road transport Rail Transport Air transport Sea transport 2. Your are given a 100,000 USD budget to fund the next 4 weeks of secondary transport from Negeri to 6 FDPs. Optimize this budget and describe the trade-offs between cost and effectiveness in decision making. DO NOT PRINT IN WORKBOOK Optional depending on time

The possible modes of Transport Mewong Exercise TASK 3: The possible modes of Transport Air Sea DO NOT PRINT IN WORKBOOK Rail Outline the different modes of transport listed. Q&A with participants: what are the pros and cons of each? See slide 8 for examples. Road Other

Question 1 - Transport mode pros and cons Mewong Exercise TASK 3: Question 1 - Transport mode pros and cons Road Rail Sea Air Speed Reliability Cost per mt/km Flexibility Advantages DO NOT PRINT IN WORKBOOK Disadvantages Answers for the debrief. Other Considerations Fritz Institute 2006:14

Question 2 - Secondary transport planning Mewong Exercise TASK 3: Question 2 - Secondary transport planning   Hainan Gamuca Sadway Nah Dang Gangoy Rach Chueng /Balagan People in need of assistance (pax) 13,000 20,000 12,000 22,000 15,000 38,000 Tonnage required per month (MT) 162.5 250 150 275 187.5 475 Reachable by Air Barge Road Distance 1 hour roundtrip 6 days roundtrip 4 days roundtrip 50km 100km DO NOT PRINT IN WORKBOOK *Each beneficiary requires 12.5kg food/month Participants will receive all this information in a handout. They should agree as a group on how the budget of $100,000 should be allocated. Trucking Rate Helicopter Rate Barge rate Rate $0.85 per MT per km $6875/hour $5000 round trip Capacity 10mt capacity 3MT capacity 120MT capacity You have a budget of $100,000 for the next four weeks. How will you spend it?

Question 2 – transport mapping to EDPs Mewong Exercise TASK 3: Question 2 – transport mapping to EDPs Gum Sitwite Obiang Saba Rach Chuen Rach Chuen & Balagan Drop off point: 38,000 Balagan Bahal Hainan: 13,000 Maleninkoga Lokodi Bacolad Hainan Ossandre Zore Pagaspi Domsa Shinang DO NOT PRINT IN WORKBOOK Gamuca Southern Gamuca: 20,000 Nah Dang Sadway: 12,000 Explain the exercise; this map to highlight the different areas that are reachable by the different transport means. Nah dang: 22,000 Sadway Sebore Yomiti Gangoy Timea Mann Gangoy: 15,000 Fom

DO NOT PRINT IN WORKBOOK Mewong Exercise TASK 3: Secondary transport Solutions DO NOT PRINT IN WORKBOOK

Question 1 - Transport mode pros and cons Mewong Exercise TASK 3: Question 1 - Transport mode pros and cons Road Rail Sea Air Speed Moderate Moderate Slow Very high Reliability Good Good Limited Very good Cost per mt/km Medium Low/Medium Low/very low High Flexibility High High Low Medium Advantages Relatively fast No transshipment Direct delivery Flexible Cost Economical Large loading capacity Range & speed (in most countries) Economical Large/no restriction on loading capacity Low cost Fast Reliable Limited losses Direct Easy tracking DO NOT PRINT IN WORKBOOK Disadvantages Roads may be dangerous (landmines) or blocked (rainy season) Sometimes driver's nationality/vehicle registration not acceptable Difficulty finding freight cars Delays Transshipment Inflexible Tracking Slow Transshipments at ports Use as second means of transport for larger volumes Higher theft risk in port Inflexible Expensive Restricted to journeys between airports Restricted loading capacity (dangerous goods, shipment size, weight, fuel, etc.) Answers for the debrief. Other Considerations Extensive network Limited/fixed infrastructure Restricted network Limited network Short/medium distances (e.g. Europe/Middle East) From a neighbouring country to operation site Internal transport Large consignments From port of discharge to inland operation site (warehouse) Ecological Large quantities Less urgent Pre-positioning phase Second phase Long distance with no time constraint Emergency phase Expensive goods Fragile/perishable goods Cold chain No alternative option Small shipments (e.g. diplomatic pouch) Long distance with time constraint Fritz Institute 2006:14

Question 2 - Secondary transport planning Mewong Exercise TASK 3: Question 2 - Secondary transport planning   Hainan Gamuca Sadway Nah Dang Gangoy Rach Chueng /Balagan People in need of assistance 13,000 20,000 12,000 22,000 15,000 38,000 Mt required per month 162.5 250 150 275 187.5 475 Reachable by Air Barge Road Distance 1 hour roundtrip 6 days roundtrip 4 days roundtrip 50km 100km Budget required $ 372,396 $ 18,000 $ 12,000 $ 11,000 $ 15,000 $ 38,000 DO NOT PRINT IN WORKBOOK *Required budget exceeds that available. One possible option (note there are many) is as follows: This is one possible answer – guiding principles were: Assume air is absolutely necessary due to the seriousness of situation in Sadway Use only enough hours of helicopters to reach the most urgent of needs – more than tokenistic one rotation, but only to reach the most urgent 10% Then prioritise the most economical transport (barge), however do not waste money by sending any barges not at full capacity Remaining budget for road transport to be allocated in proportion to need at each destination Alternative answers may seek to eliminate air asset use entirely until more funding is found, or to prioritise some areas over others. Important point: it is not the job of the logistics team to decide on prioritization, however they would need to provide the upper management with the possible options, demonstrating exactly what is possible to pursue. Proposed Budget Allocation Percentage of requirement Two barges to Gamuca $ 10,000.00 86% One barge to Sadway $ 5,000.00 80% 6 hours helicopter $ 41,250.00 11% Spend remaining evenly on road destinations $ 43,750.00 64% Road transport allocation % of requirement Nah Dang $ 7,519.53 64% Gangoy $ 10,253.91 Rach Chueng / Balagan $ 25,976.56 TOTAL $ 43,750.00

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