What is an EPC project?

The EPC project model is one of the international projects contracting methods that are commonly used internationally, and is customarily translated as " engineering, procurement and construction" in China. It is a general contracting mode that includes engineering, procurement, construction, installation and commissioning, until handover. In addition to the meaning of design, engineering also includes concepts such as the overall planning and engineering planning of the entire project; Procurement refers to the procurement of specialized equipment and materials; Construction includes construction, installation, commissioning, etc. According to the contract signed with the owner, the EPC general contractor undertakes all the work of the project design, procurement, construction, trial operation until completion and handover, and is responsible for the quality, safety, construction period and cost of the project.

The biggest feature of the EPC project is that the owner entrusts all the work of project design, procurement, construction and completion test to the general contractor of the project. Another feature of EPC projects is the fixed lump sum price, which is equivalent to the owner transferring the risk to the general contractor of the project, while the contractor has more opportunities to profit while assuming more responsibilities and risks in the face of the rigid requirement of a one-time price package.

The specific operation process of EPC project logistics

The logistics of an EPC project is a "door-to-door" transport. It starts from the shipper's designated factory, through receiving, counting, loading and unloading, inspection, warehousing, storage, discharging, inventory, and then by sea, land, air and other multimodal transport, and finally timely and accurate delivery of goods to the project site or the designated address of the consignee in the shipper's designated project country, and accompany the whole process of information flow, physical flow, capital flow and the goods in the field of material management and other work. The risk of project logistics is more difficult and riskier than pure sea or rail transportation. Taking multimodal transport as an example, this article sorts out the logistics process of overseas EPC projects as follows:

1、Develop a shipping plan:

　　（1）Master the relevant information of bulky goods, such as the characteristics, shape, weight, size of the goods, and understand the handling precautions put forward by the owner.

　　（2）Select a suitable ship, master the ability of the selected ship to carry heavy cargo, and ensure that the ship meets the cargo shipment requirements.

　　（3）Understand the loading and unloading operation conditions of the loading port and the unloading port, such as terminal equipment, lifting capacity, etc.

　　2、Packaging inspection before the equipment is shipped: a package that conforms to long-distance multimodal transportation can effectively protect the goods to be shipped and avoid damage to the goods during transportation and short-time dumping.

　　3、Receiving the goods at the place of departure of the equipment: The responsibility of the logistics provider starts from receiving the goods on the vehicle board.

　　4、Statistical equipment starting volume: accurate cargo volume is the primary prerequisite for selecting suitable ships.

　　5、Chartering and booking: Selecting a suitable ship and booking sufficient space is an important guarantee to ensure the safety of goods and timely delivery to the project site.

　　6、Port collection, warehousing and cargo inventory: do a good job in warehousing the goods arriving at the port, inventory the goods in time, check the list, report any problems found, and ensure that the manifest is consistent.

　　7、Rectification of unqualified packaging before shipment: rectification of unqualified packaging can ensure that the goods are properly protected during long-distance transportation and avoid unnecessary damage.

　　8、Insurance: Transportation insurance can ensure that the loss of the company can be minimized when the goods are damaged or lost.

　　9、Customs declaration: Since the goods and equipment of international engineering projects involve transnational transportation, both entry and exit must be declared at the customs. This requires corresponding communication and coordination with factories, customs and commodity inspection departments to provide correct information to ensure smooth customs clearance of goods.

　　10、Loading supervision: Arrange the port captain or on-site personnel to supervise the loading during the loading process, and supervise and inspect the cargo during the loading process to ensure the safety of the loading process.

　　11、Shipping: After the shipment is completed, the documents are confirmed and the payment is arranged. Understand the dynamics of the ship and make preparations before the ship arrives at the port.

　　12、Customs clearance: After the ship arrives at the port, apply for customs clearance with the customs at the destination port with a full set of documents. After the goods are cleared through customs, inland transportation can be arranged.

　　13、Unloading supervision: Arrange port captains or on-site personnel to supervise unloading during unloading, and can supervise and inspect the cargo during unloading to ensure the safety of unloading.

　　14、Inland transportation of foreign sections: arrange vehicles for inland transportation, and transport the goods from the wharf to the construction site logistics service.

　　15、Unloading to the designated place: The responsibility of the logistics provider ends with the unloading of the pallet, and at this point, the whole logistics service ends.

16、Shipping summary: be good at summarizing experience and lessons, and use it to guide the next stage of work.