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As recently as a decade ago, project and large format cargo forwarding was the exception in international transport.

Today, with increased demand and diversity of projects, the logistics industry is meeting new challenges head-on. Though project cargo can still be considered a niche market, more than ever it requires specialized skills and infrastructure, and is clearly expanding in both size and scope of operations necessary to support the requirements.

PROJECT(s) and related PROJECT CARGO logistics and transport requirements are truly global in scope and MULTI-MODAL in required execution!

PROJECT CARGO is generally defined as any shipment of freight/cargo that cannot fit an I.S.O.-standard container, (i.e.; AIR, SEA, RAIL, TRUCK, etc.), and is then considered to be "out-of-gauge" for normal transport.

Further, PROJECTS may be defined by individual contract specific terms and conditions that delineate specific geographies, time lines, delivery protocols, etc. and may require full visibility across the entire global supply chain.

Project cargo may be exceptionally heavy, long or wide (or any combination thereof), and/or comprised of complex components that must be disassembled, shipped and reassembled, or requires special processing, (eg. high-value, hazmat, etc.).

Project-related cargo movements are generally indicative of contractual time and/or space (geographic specific) delineation. Schedules imposed by the contract may require long-lead times for planning, evaluation, site survey, etc. and only then followed by a complicated implementation and execution. There are seldom inherently the same or repetitive processes required in for project logistics requirements – each being unique.

By comparison, traditional general freight forwarding usually meets repetitive supply chain requirements, J.I.T. delivery to meet assembly line processing and production, “door-to-door” scheduling, and/or end-of-month cycle billing.

Project freight forwarding and the management of those processes require specialized expertise. The sourcing and moving of thousands of freight tons (W/M) of equipment and materials from multiple origins and suppliers can be a massive undertaking requiring sophisticated planning and implementation of sound logistics capabilities, precise timing, and worldwide connections to coordinate cargo movements from origin to destination.

Depending on the final destination, project cargo shipments face many challenges including overcoming necessity of transport in severe climatic conditions - sandstorms and extreme heat, or in the opposite extremes – ice, cold, and snow.

To schedule cargo integrity in transport, security of the contents and accompanying personnel, must be made paramount. Geo-politics, geography, topography, and/or environmental considerations in remote locations, along with the necessity to protect the integrity of the shipment, and with necessity for adherence to delivery schedules, may require armed guards and security forces to accompany the cargo as it moves through remote areas.

In some areas, port facilities, (as well as airports) may be inadequate, or even non-existent, and hence complicated logistics provisions must be made for temporary construction of discharge quays/piers. This may be preceded by, or concurrent with necessary site surveys and permitting to allow for direct onshore beach landing.

At times, a river estuary may have to be dredged in advance to accommodate deep draft vessels, and shore approaches prepared, and all in accordance with local, regional, and or governmentally imposed and mandated Health, Safety, Environmental, and Security (H.S.E.S.) standards.

Beyond Resource-based Projects

Traditionally most project cargo involved movement of heavy equipment for the oil and gas sector as well as the mining and construction industries.

In fact, many project forwarders have traditionally relied almost exclusively on the oil and gas industry, which is now out of a serious cyclical downturn.

With increased petroleum prices, most major oil companies have recently announced that they will increase their investment budgets for exploration and development by 50% and more per year in order to keep pace with growing global demand.

Consequently, an increase in project cargo traffic can be expected in support of (new) drilling, production, petrochemical and refining projects during the initial decades of the 21^st century and beyond.

With more and more customers looking to the logistics industry to move entire factories and assembly lines intact, there has been increased demand for turnkey services. Project cargo specialists made up for reduced logistics requirements within the oil and gas business during the past few years by supplementing demand per the requirements of Engineering and Construction projects (E&Cs), which take the form and shape of infrastructure improvements, roads/highways, dams, bridges, utility upgrades, etc.

Sellers and buyers carefully weigh the costs of transporting a project in built and ready form, versus more traditional methods of moving equipment, (i.e., disassembling the unit, loading it into containers, and then re-assembling at site). By shipping the cargo at full-scale size, many customers realize they can in fact save time and, consequently, money.

New Markets creates new Opportunities

The growth of the project cargo industry, particularly outside the Energy and Resources sectors, is a product of the ongoing liberalization of international trade and direct foreign investment throughout the world.

Along with strong economic growth in many parts of the world, there has been a creation of new opportunities for project forwarders.

In the recent past, it was the North American export market that has dominated the project cargo sector. No more!

Much of the heavy-lift forwarding expertise, and movements into areas such as Russia, the Former Soviet Union and its Independent States, and the Middle East and Africa, have followed the development of the oil and gas industry in these regions.

North America no longer carries that exclusive or dominant position for export of pipe and heavy oil field equipment. Korea is today the largest exporter of gas processing equipment; Japan provides engineering, product expertise, and financing; and Brasil provides significant raw and secondary materials for many construction projects, as well as process engineering to the oil and gas industry; while many European-based firms enjoy major E&C – Engineering and Construction projects.

Project cargo from North America is increasingly in the form of turnkey manufacturing/refining facilities, destined for new and emerging markets in the F.S.U., China, and South America. Looking ahead, the Indian subcontinent is also likely to be an important destination for project cargo, with Middle Eastern and Asian manufacturers benefiting the most.

Project Freight Logistics

New Markets – new requirements! Generally, projects are defined by matters of “time, place, and space”, and are subject to specific contract terms and conditions, with finite time lines => “a beginning and an end”.

Today’s global socio-economic conditions change on short notice, and project freight logistics providers may specialize or provide services to the Oil & Gas (Energy) industry, heavy equipment and construction contractors, metals and mining, aerospace, and governmental sponsored programs – all requiring specifically tailored programs to meet challenging logistics demands.

Meeting the Challenge

As the project forwarding industry branches out into new

markets, logistics providers have nurtured new found relationships and distribution channels throughout theworld.

And as the nature of the cargo expands beyond Just having heavy-lift resources and equipment, the non-asset based logistics providers are of necessity also acquiring additional expertise in turnkey project management, and forging global alliances with their capital-intensive operators, carriers, and 2PLs.

Logistics providers are realizing that if they want to compete in today's global marketplace, they need to keep pace with the demands of clients, who require complete “turnkey” services applications and 4PL-management processes which are “outsourced” by the end-user or contract holder.

“DDU or DDP-terms” mean in the project context, “delivery per contract”, which may encompass most if not all aspects of the shipping process. Demand for delivery from “door to job-site” means extensive PLANNING and ANALYSIS, route and site surveys, port/airport/road/river analysis in the review of transport options; managing the purchasing and quote process, expediting of purchase orders and delivery orders, temporary marshalling at remote or off-sites for repositioning, warehousing, full and or part charters on a multi-modal basis, insurance, export packing, customs clearance, trade documentation and more!

Creativity and a sense of urgency! Time is money – and getting the equipment “on site” and set-up and ready for operation is part of the challenge.

In more recent times, global awareness, accompanied by contract performance issues has led to a heightened requirement for ability to comply with corporate, local, regional, and/or governmentally decreed Health, Safety, and Environment – and Security (H.S.E.S.) schedules. All are paramount factors in the risk assessment and management taken by the logistics provider.

New ideas, New Processes, and New Equipment for the Industry

Some of today's project moves have been made possible by the availability of new, and/or better, equipment in recent years.

Carriers and forwarders are continuously pursuing new and advanced forms of heavy lift equipment, developed to suit the requirements of specialized cargo. Heavy-duty and/or modified, aircraft and vessels, and “built to suit” provide for service specifically assigned to accommodate the increasing demands of today's projects.

Innovative Thinking

In tandem with new developments in specialized equipment, the project cargo industry is benefiting from a growing "can do" attitude on the part of forwarders.