Logistics

Logistics is one of the key business functions. Efficiency and effectiveness of projects in this area are of significant importance for the efficient functioning of an enterprise and its perception by customers. This relates not only to transport and timely deliveries, but equally to maintaining legally required levels of fuel reserves and the capacities to store them.

Over the last few years, the logistics function in PKN ORLEN has undergone numerous changes and modifications. The establishment of the Company coincided with the completion of a process of separating logistics functions from sales structures. This enabled us to streamline the execution and cost supervision of product transport and storage, using our own or leased logistics infrastructure. Over the 10 years operation of the logistics area, we have implemented a number of projects aimed at increasing its effectiveness and complying with legal and environmental requirements, such as, among others:

• comprehensive modernisation of a network of owned storage facilities (currently: Fuel Terminals), including the start-up of a recycling unit, the construction and putting into operation of the largest storage facility in the country;
• the construction and start-up of our own product pipeline connected to the new storage facility;
• the start-up of a biocomponent dosing unit and the separation of dedicated logistics companies operating rail and road transport in the ORLEN Group.

Logistics in PKN ORLEN also means responsibility for the creation and maintenance of statutory levels of strategic reserves. At the same time, it means the ability to comply with the requirements of the EU and International Energy Agency legislation with respect to cyclical increases in the levels of crude oil, petrol, average distillates and LPG reserves.

Work organisation and the range of tasks to be implemented across the entire storage network take into account all the ethical and environmental aspects related to the significant impact of this type of business on the social and natural environment, while at the same time ensuring continuous cost optimisation. PKN ORLEN equally emphasises compliance with the above requirements both with respect to its own network of 14 Fuel Terminals and the infrastructure leased from ORLEN Group companies and external entities. Our projects are in compliance with the Integrated Management System. In 2008, we started new investment projects and continued with the ones in progress, such as, among others, the comprehensive modernisation of the Fuel Terminal in Wrocław and the modernisation of the cargo handling pier at the Fuel Terminal in Świnoujście. We are continuing measures aimed at maintaining the top quality of distributed fuel and reducing the size of normative loss in the distribution system.

To demonstrate our growing environmental awareness and efforts to eliminate negative environmental impact, we are raising the share of rail transport in the total volume of finished fuel transport on the territory of Poland. We are also implementing new solutions and projects, such as, among others:

• construction of a product pipeline to the Fuel Terminal in Wrocław, the operation of which will yield long-term environmental and economic benefits thanks to a substantial reduction in road and rail transport in the Lower Silesia region;
• start-up of self-service product collection points at the Fuel Terminals, which will be in line with international distribution standards and will improve the effectiveness of road transport.

In 2008, we completed an investment programme the purpose of which was to adjust all terminals for the purposes of blending esters with diesel fuel. As a result, PKN ORLEN logistics network achieved an optimum level of adjustment to the requirements of biofuel law.