A major petroleum refiner, producing high-value light products such as gasoline, diesel fuel, jet fuel and specialty lubricant products was looking for a comprehensive railcar fleet assessment to understand opportunities for improved efficiencies and cost reductions.
Due to PLG Consulting’s deep expertise in oil and gas, renewables and rail industries, the client selected PLG’s team of experts to conduct an assessment and sizing analysis of the client’s railcar fleet and identify efficiency improvements and cost-reduction opportunities. With crude oil and lubricant processing capacity, an optimized logistics strategy for inbound and outbound product was critical for current and future business development and investment.
Services Provided
The complete assessment of the inbound and outbound railcar fleet included a comprehensive review of:
- Fleet sizing practices
- Lease and ownership costs
- Maintenance management services
- Use of technology
- Fleet utilization across the entire organization
- Mechanical specifications
Results
- Confirmation of rail management responsibilities balancing plant, division, and corporate requirements
- Creation of a company-wide rail advisory board to evaluate and implement recommendations
- Development of a company-wide rail fleet strategy and incorporation of formal fleet sizing decision-making policy led at the corporate level
