The journey of the goods that are subject to project cargo are as follows: transformers, gas turbines, wind turbines, generators, and rigs, which start with an initial project. The initial projects can be building a power plant, building a dam, building an onshore or offshore wind turbine farm, a mine project, or an oil and gas project.
These initial projects have two main stages before equipment owners start production.
The first stage is engineering. This is when all details are on paper in the form of a plan. This stage includes obtaining the city or state permits in order to execute the project. Until this phase, the timeframe can be anywhere from a year to several years depending on the scope of the project.
The second stage is planning. This is the time for project owners to open a bid to choose the companies who will supply the equipment.
Once the OEMs (Original Equipment Manufacturers) get the order, they have the green light for production yet they do not start production immediately. Most of the time, this is due the infrastructure construction at the project site.
When it is time for production, the timeframe starts from 2 months and can go up to 2 years. Here is an example:
Below is a Heat Recovery Steam Generator which weighs 8 million pounds.
It took eight months to build the machine at the Port of Coeyman’s marine terminal, about 100 miles north of New York City. Then, workers heaved it onto a 400-by-100-foot barge.
Then, what is the role of the project cargo forwarder in the big picture?
Many answers would be accurate and correct, but my answer is relationship. Given the fact that the project cargo forwarder is capable of executing such projects, the most important role is to have the stamina both financially and in terms of expertise, to build a healthy long term relationship with OEMs and all other parties.
Overall, Project Cargo forwarders have a big responsibility within the projects, since the stakes are high due to the cost of the equipment. In the bigger picture, not only is the handling the shipment important. A long-term healthy relationship is the key to success for the business itself as well as for all parties involved in such high-value projects.