Cargill Food plans a pipeline to transport imported crude edible oil

Published On: 06, Dec 2017 | Source: business-standard.com

Foods India has set up a network to transport crude edible oil, like unrefined via rail from Jawaharlal Nehru Port (JNPT) to the inland tank terminal near its processing facility at Kurkumbh village, in Daund district of Maharashtra.

The Kurkumbh plant imports about 200,000 metric tonnes (MT) of annually that is transported from JNPT, which is 200 kilometres (km) away from the plant. The movement is designed to be multimodal where the longer haul (from port to Daund) is through railway, while the short haul (15 km one way from Daund to Plant) is via road tankers. 

The project is set up and managed by The crude-unrefined oil, which was earlier being moved by road tankers, making 800 trips in a month, to and fro over 400 km has been reduced to 30 km in the first phase itself. This has led to a massive reduction of carbon footprint through lesser emission on road along with bringing in huge predictability in supplies, enabling to bring bulk movements in one go.

This project is for transporting imported unrefined sunflower oil, which Cargill’s food business in India primarily sells under the Gemini brand. It is about restructuring port to plant network model in order to collect the material from the vessel at the port and delivering it to the plant. 

As part of the project, the company plans to set up a pipeline to transport imported unrefined oil from port to rail and vice versa via pipeline. Although the pipeline will be laid in the second phase, this will be the first of its kind project to transport edible oil via a pipeline. 

“The first phase comprising of transportation of oil via rail has begun, while connecting the final leg through a pipeline, will be taken up in the second phase,” said Deoki Muchhal, managing director, Cargill’s food business in India.

Deoki, said: “The idea behind implementing this project comes from Cargill’s foresightedness to go green. Considering that transportation is the most important element in the supply chain, we are the only company in the industry who transports crude in train and not by diesel-operated trucks. The project will ensure a reduction in contamination risk, reduction in carbon dioxide emissions by reducing dependence on polluting heavy vehicles, along with ensuring better predictability of supplies and cost.”