Sourcing Strategy for Asphalt Production Feedstock Considering Multimodal Transport Options

This paper examines the logistics and distribution channels for importing heavy crude oil, which is a source of bitumen. The study conducts a sensitivity analysis to assess the suitability of distillery locations based on the available transportation modes and carrier options. Although a strategic location near direct pipeline options using existing facilities could yield the least transportation cost, the lack of pipeline capacity with increasing demand and delays in building additional capacity weighs heavily against this option. Consequently, the analysis points to multimodal shipments via ocean vessels and pipelines as the optimum solution for a proposed location of the distillery.