Robert Hurst / Senior Manager Logistics / Fluor Materials Management One Fluor Daniel Drive, Sugar Land Texas 77478 Robert Hurst has been in the Project Freight shipping environment for 37 years. He has been with Fluor Engineering for 25 years and working on his 22nd Project for Fluor in Sugar Land Texas. Jobsite destinations have been as far away as Saudi Arabia, Iraq, Malaysia, Indonesia, China, Korea, Philippines, and Russia. Today he is managing the Fluor Logistics activities for the ExxonMobil projects on Sakhalin Island. Fluor Corporation Sugar Land, Texas • • • • • Fluor Corporation, headquartered in Irving Texas In business for 100 years. Fluor's North America region, Sugar Land Texas, provides full-service engineering, procurement, construction management. Sugar Land Office currently employs 2,850 people This region serves the upstream, downstream, offshore, power and integrated petrochemicals markets by designing and building process plants, refineries, pipelines, offshore facilities, LNG facilities, as well as retrofit, carbon capture and other energy assets. Case Study Transportation of Local Electrical Room (LER)- United Kingdom to Northern end of Sakhalin Island Russia Sakhalin Island, Russia Jobsite Fluor Responsibilities • • • • • Logistic planning started 1.5 years prior to ship date Transport feasibility study: How large can engineering design the LER building and still be able to transport to site and meet the required on site date set by Construction Identify road blocks for transport…examples: determine bridge capacities on Sakhalin Island and delivery timing to avoid frost law axle weight limit restrictions Determined LER had to move in 5 building modules and 9 roof sections to meet transport feasibility results Purchasing of material for installation into the designated modules under a Duty Free Program Survey of Bridges on Sakhalin Fluor Responsibilities • • • • • • Engage Bertling as Project freight forwarder Send a Fluor Logistics Coordinator to building manufacturer 6 weeks before shipment Approve the selection of appropriate cargo ship Packing and handling of LER modules and associated roof sections Transportation costs on Sakhalin Island Total Transportation costs = $2,000,000.00 Since 1865 90 Worldwide Offices Project Freight Forwarding Ship Owning (20 x 33K-80K ships) Company Function in the Project Shipping Business Specific Project Execution Set Up Origin & Destination Fluor Bertling BBC Chartering Port Terminal Middlesbrough Export Packing Company Marine Survey Company HSSE Health, Safety, Security, Environment Packing Lists, Commercial Invoices, Bills of Lading, Survey Reports Port Terminal Sakhalin Import Clearance Support Trucking Company Sakhalin HSSE Health, Safety, Security, Environment Reporting to Fluor Reporting Heavy lift and project cargo Green energy Oil and gas industry Mining and civil engineering Vehicles, yachts and boats Bulk cargo, pipe and metals Specialized multipurpose and project shipping >150 project vessels Global presence with 28 offices worldwide Shipper/Merchant Freight Forwarder Ocean Carrier Supply Chain Function RFQ Project Division -RFQ format - Analyze the project shipping requirements -Rate indication -Fixture recap -Charter Party and Booking Note Supply Chain Function - Design proposal with feasible transport solutions that meet client requirements. - Communicate with all parties involved Technical Execution - Field engineering for loading and unloading operations - Coordinate any HSEQ and risk management related activities BN 14-018 m/v "BBC Coral or sub " / http://www.bbc-chartering.com/uploads/tx_bbcfleetlist/BBC_Amber_type%20%20-%20dwt%2014360.pdf?ts=1383237585 for - account: Bertling Logistics Inc, Houston - project cgo LER modules and equipment, ttl abt 2300 rts, pls provide final packing list Total 310.543 mtons 2229.628 cbm To include: 5 x LER Modules 15m x 4.54m x 3.85m heaviest approx. 46.55 mtons 8 x Roof sections 10.29m x 3.94m x 2.53m approx. 10.27 mtons each. - under deck stowage. - port of loading: carriers berth, Middlesbrough, Riverside UK - port of discharging: Carrier’s Berth, Korsakov - s/p 5 – 15 Feb, 2014 oopt - liner terms, hook/hook - Freight payable as per charter party - last in / first out - detention: USD 17,500.00 per day / pro rata (see also Special Clause A in carrier's booking note) - any taxes/dues/duties calculated on vessel to be for carrier's account - any taxes/dues/duties calculated on cargo and/or freight including dock dues, wharfages, t.h.c., truck loading/ unloading or other terminal charges as well as possible extra charges in ports/canals/waterways calculated on the cargo or because of the cargo being on board the vessel to be for merchant's account - cargo to be delivered/received as fast as vessel can load/discharge - any special required spreaders, lifting beams or other lifting equipment not available on board the vessel to be supplied by the merchant; any saddles/cradles which may be required to support the cargo to be supplied by the merchant; cargo to be fitted with suitable lifting lugs or other adequate means of lifting and center of gravity to be clearly indicated; sufficient lashing points for securing to be placed on the cargo; if items are not flat at their bottom then a footprint sketch to be provided; - any additional insurance premium charged by vessel's underwriters for war risk exclusions to be for merchant's account; any extra insurance procured or cost incurred to protect crew, vessel and cargo against risk of piracy, rebels or terrorists shall be paid by the merchant upon request of the carrier. war risk/piracy prevention surcharges included in the price and based on the current geopolitical events at time of fixture. INL included in the lpsm freight amount. - carrier's agents both ends - latest version of BIMCO ISPS Clause for voyage charter parties to apply - latest version of BIMCO EU Advance Cargo Declaration Clause for voyage charter parties to apply; same shall apply for any other country outside the EU requiring security filing in a similar way; upon fixing the merchant to fill out the carrier's Security Filing Data Sheet (see also Special Clause C in carrier's booking note) - otherwise as per carrier's booking note (full wording under www.bbc-chartering.com) END • • • • • Delivered on time April 2014 No damages No incidents No claims Installed into the plant June 2014 Installed LER
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