Benefits of site bunkering
Fuel Usage & Costs Following recent articles in our industry publications regarding Strategies for Fuel Purchase and the Cost of Fuel Storage, we note the continued referral to the comment 'if usage is not over one million litres per annum, that on-site bunkering does not pay'. Many leading haulage, distribution, bus company and local authority sites have their own provision for fuel storage on site. The storage of fuel and buying of fuel in bulk quantity gives preferential cost benefits to most businesses, but additional considerations on down-time for travelling to and from alternative off-site refuelling and additional mileage costs per vehicle, give many more hidden cost considerations. Some of the major benefits for having your own installation, gives an immediate on-site facility which allows white road diesel and, for some, more cost effective 'red' (non-tax) fuel for refrigeration etc. There is no additional labour time or vehicle mileage for going off site, with a streamline 'time and movement' through the depot for the loading, refuelling and washing of vehicles. Some sites also have designated refuellers to avoid staff being paid for time to fill their own vehicles. The fuel control is rigid, the depots networked to give streamline route planning and maximise efficiency. Pumping equipment is high-speed to minimise refuelling times and the inclusion of fuel management systems enable complete fuel usage control. Storage tanks are usually around 40,000 to 60,000 litres capacity and although there is an initial outlay, with fuel being the second biggest cost to most transport companies, this is quickly recouped by reducing overtime and increasing fuel efficiency, at preferential fuel prices. The majority of new installations are self-bunded units, with integral cabinets to house pumping equipment, gauges, fills and alarms. This enables units to easily be moved with the business if expansion or resiting is necessary. Most new fuel installation outlay can be covered within the first 12-18 month period. On-going maintenance on above ground installations complaint with PPG2 is minimal, with two recommended service visits to enable equipment to be kept at a premium and calibration checks to give maximum fuel efficiency figures. The fuel crisis left many businesses vulnerable and without the majority of sites having their own on-site bunker facilities the country would have stopped. So little importance is put on the transport industry, but without the vehicles and trunking of goods, no clothes would make the stores, food wouldn't make the shelves, parts to factories would stop production, no local public transport would exist, buses to airports stopped and emergency services effected. The added benefits of using on-site bunkering is substantial and considerations to the 'Not Worth The Cost' must be reviewed from all angles.