A leading global mining company sought to decarbonize its rail operations. They aimed to develop a Battery Electric Locomotive (BEL) program to utilize power recovered from dynamic (regenerative) braking on downhill-loaded trains to return empty trains to their origin under battery power. This ambitious project required help sourcing the needed manufacturing components for the future locomotive program.
The Client enlisted the expertise of PLG Consulting for a comprehensive Battery-Electric Locomotive Conversion Project. This initiative involved identifying and locating sufficient components, which would be repurposed to build a fleet of Battery-Electric Locomotives (BELs) for use in its mine-to-port transport.
PLG utilized its locomotive engineering and logistics procurement expertise to provide recommendations designed to help the Client navigate the complex process of acquiring, converting, and transporting oversized components while maximizing efficiency and minimizing potential risks. The project scope included:
- Detailed market research and supply chain design for locomotive components
- Cost estimates for identifying, shipping, disassembling, cleaning, and inspecting the components
- Maritime transport logistics for the importation of the components to the ore origin country
- Optional cost study for conversion of the locomotive fleet outside of the ore origin country
- Shipping logistics for the converted BELs to the mine origin country
Services Provided
Working collaboratively with the Client, PLG provided the outlined deliverables:
- Identification and sourcing of suitable components from North America
- Development of detailed cost proposals for various stages of the conversion process
- Logistics planning for international shipping of components and/or completed BELs
- Vendor analysis and comparison for North American build options
- Design concept exploration for high-volume BEL builds
- Project timeline development for a two or three-year duration
- Identification of multiple vendors for teardown and assembly processes
- Comprehensive procurement plan and supply chain design for locomotive components
- Analysis and recommendations of shipping alternatives
- High-level cost estimates using a financial Monte Carlo simulation
The project team provided a comprehensive set of recommendations to the Client, covering various aspects of the locomotive acquisition and conversion process. These recommendations addressed:
- Strategic timing for negotiations and inspections
- Procurement strategies to optimize availability and costs
- Quality control measures for the dismantling and conversion processes
- Efficient management of salvaged but unneeded components to minimize waste
- Best practices for international shipping and customs clearance
- Proactive communication with key stakeholders and service providers
Results
- Successfully identified over six times the number of components, providing multiple options for acquisition.
- Developed a comprehensive cost analysis for alternative sites to conduct the conversion.
- Established key relationships with select vendors for locomotive teardown, component refurbishment, and BEL assembly.
- Created a scalable process for future BEL conversions, supporting the Client's sustainable rail operations goals.
- Laid the groundwork for the innovative program, potentially revolutionizing heavy haul operations in the mining industry.
- Identified potential for significant cost recovery through salvage of unneeded components.
