P&O Maritime Logistics and Nigerian firm IO Materials Services (IOMS) have launched a new logistics solution aimed at significantly trimming costs associated with offshore energy cargo movement in Nigeria
Called FlexDelivery, the new logistics solution looks to avoid high shore base startup costs, rentals and vessel time-chartered contracts by focusing on cargo delivery. FlexDelivery uses a freight rate model targeted at the offshore energy industry that traditionally relies on an asset and facility model.
P&O Maritime Logistics said the new service is aimed at reducing delivery times, enhancing visibility and predictability while re-inventing procurement strategies, inventory management tactics and the energy supply chain as a whole.
P&O Maritime said the service could be applied to exploration, drilling, production or maintenance activities, driving down opex and capex for energy producers by removing structural oversupply in the energy industry.
Using big data and AI technology, FlexDelivery enhances visibility by providing predictability with a real-time view of cargo movement and delivery dates all controlled through an online booking platform.
The new offering, which began service on 4 September, is an expansion of P&O Maritime Logistics’ ‘Supply on Demand’ to integrate shore base and quayside operations to deliver a comprehensive logistics solution.
P&O Maritime Logistics and IO Materials Services saw the potential of FlexDelivery to mitigate the expensive energy logistics supply chain associated with operating in Nigeria.
Currently, most platforms offshore Nigeria rely on manual paper-based operations, that duplicate manpower, facilities and equipment, and cost approximately two to four times more than the global average for running an offshore supply operation, according to P&O Maritime Logistics.
P&O Maritime Logistics anticipates that on average, FlexDelivery will reduce costs by 20-30% per item transported, lower fuel consumption by 20-30% and trim distance travelled by 40-50% compared with traditional timecharter supply contracts.
P&O Maritime Logistics chief executive Martin Helweg, sees FlexDelivery as “a step-change to the offshore supply industry and aligning our service to be in sync with our customers’ needs: reduced delivery times, visibility and predictability.”
Added P&O Maritime Logistics vice president logistics Christian Arndt, “By launching in Nigeria, P&O Maritime Logistics is showing the industry that smart solutions can generate efficiency gain and lower production costs. Customers will see reduced equipment, inventory carrying, and supply chain costs, while boosting productivity.”
Shore bases will be operated by IOMS from its locations, providing wide coverage for oilfields across the Nigerian offshore energy industry.
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