CNPC Lubricant Transport with LAF Flexitank via Rail

On 30th Nov., with support of Urumqi Railway Bureau Group Co., Ltd. and continuous efforts made by CNPC Karamay Lubricating Plant and Xinjiang Railway LAF, the 1st containerized shipment of bulk lubricant oil with Flexitank was issued via rail successfully. This move has changed the way to do bulk lubricant delivery for CNPC Karamay Lubricating Plant with great significance.

"The containerized transportation with Flexitank is just the solution we needed to our bulk lubricant oil logistics supply chain optimize and upgrade.” Mr. Wu, the director of CNPC Karamay Lubricating Plant, said. The plant produces about 450,000 to 500,000 tons of lubricant oil annually, with products mainly sold to the Yangtze River Delta and Pearl River Delta.

CNPC Karamay Lubricating Oil Plant used to deliver their lubricant oil products by road tankers and rail cars. Oil has to be transferred from tanker cars into rail car at rail departure station, and has to be pumped into road tankers from rail cars at rail arrival station. The cross-pumping operation takes a lot time, decreasing the logistic efficiency; at the same time, rail cars after being discharged must be returned to its origin for washing and maintenance, resulting in a high cost.

Xinjiang Railway LAF and Urumqi Railway Bureau made joint efforts to promote the containerized rail transportation project in Xin Jiang province of China, conducted a long-term study and research on infrastructure of CNPC Karamay and its surrounding logistics facilities, and figured out a solution to containerized rail transportation for CNPC Karamay Lubricating Oil Plant.

Xinjiang Railway LAF invested and built the Karamay North Container Yard, which is very close to CNPC Karamay Lubricating Oil Plant, and can guarantee quick and sufficient supply 20’ft container suitable for bulk liquid transportation with Flexitank. When the Karamay North Container Yard was put into use, tens of thousands bulk lubricant oil was shipped out direct from CNPC Karamay Lubricating Oil Plant, and was firstly delivered to final destination with any cross-pumping during the transit. Moreover, logistics cost decreased remarkably with improved efficiency CNPC Karamay Lubricating Oil Plant.

By shorten the logistics supply chain, and investment in the container yard, LAF has on one hand increased the efficiency and reduced logistics cost for CNPC, on the other hand had promoted the rail containerized transportation in Xin Jiang province in China, which in further had facilitated the commodities trading along The Belt and Road.

LAF will continue promoting the containerized bulk commodities transportation model with innovation packaging products like Flexitank, Dry Bulk Liner along The Belt and Road, with the purpose of helping enterprises saving logistics cost and enhance bulk commodities trade.