Category Archives: Strategy

On southwestern fringe, China’s Silk Road ambitions face obstacles

Here is an example of the difficulty of building a major infrastructure improvement, in this case, a rail line from China to Thailand and thence to Singapore.  Who’s got the money?

The answer is no one; and so they can’t agree on terms that advantage all of them fairly.  One interesting factor is land use rights.  Thailand and Laos will not give the Chinese land development rights on each side of the rail line.  Those were expected to help the Chinese pay for the route.  I think those countries are right to retain their sovereignty over the land.

screenshot-www.reuters.com 2016-06-07 08-17-27    Source: On southwestern fringe, China’s Silk Road ambitions face obstacles | Reuters

Understanding the 2016 Gartner Top 25 Supply Chain Rankings

Here is Dan Gilmore’s interesting comment on the Gartner Top 25 Supply Chain companies  (See my earlier post.)  Of course, it is all about marketing for Gartner, who makes money from consulting with these and other firms.  Still, the debate over metrics is interesting, and hones our critical thinking skills.

Clearly corporate social responsibility (CSR) is increasing in importance for supply chain professionals. There  is a lot of talk about it in the profession, saving energy and carbon and the like, as well as the ‘triple-E’ message of sustainability (economy, ecology, equity); customers are asking as well.   It’s a good idea to use some triple-E measurement on our own supply chains.

Supply Chain Digest Logo

Dissecting this Year’s List, as New Corporate Social Responsibility Factor Added to Scoring Mix

Source: Understanding the 2016 Gartner Top 25 Supply Chain Rankings

DOT-117 tank car rule debuts 

A very nice chart of the modifications needed to make tank cars more explosion proof.  The picture is from the article below.  There’s a new DOT-117 (TC-117 in Canada) design, and a long list of modifications that must be made to older cars.  These can be expensive to upgrade and have a variety of expiration dates when they no longer can be used without retrofit.  It’s a nightmare for the very active leasing business, and for companies who must sublease cars they control  when they face a downturn of demand.  The kind of complexity financial businesses such as leasing dote on.

TankCarRetrofitChart

 

Railway Age Logo

Source: DOT-117 tank car rule debuts with controversy | Railway Age

 

Here’s what a DOT-117 rail car looks like, from the article:

DOT-117 tank car rule debuts with controversy

This blog says that only 225 cars were upgraded the first year.

Desmog Logo

A year ago, when Federal regulators announced new rules for “high hazard” trains moving crude oil and ethanol, the oil industry protested that the rules were too strict.

Source: Rail Safety Report Card: Only 225 Of Over 100,000 Unsafe Tank Cars Were Retrofitted in First Year | DeSmogBlog

Finally, we have this cheery note:

Tacoma Weekly Logo

A stack of 24 tanker cars partially derailed on the Tacoma Tideflats about 9:15 a.m. on April 22. There were no injuries. The tankers were empty so no spill following the incident but the otherwise busy intersection of Lincoln Avenue and Taylor Way was closed for 12 hours to allow crews time to lift the tankers back onto their chassis and for investigators to gather information. The accident happened at a curve in the track and occurred when the weather was slightly rainy, although track conditions apparently didn’t play into the cause of the derailment. Damage estimates to the cars hover around the $250,000 mark.

Source: Tacoma Weekly | Empty tanker cars jump tracks on tideflats