HELWAN CEMENT COMPANY

A Model To Determine The Truck Freight For Backed Cement Helwan Cement Company

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, […], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Abstract

In this study we try to explore the concept of “truck freight for backed cement in Helwan Cement Company in a holistic context. The main focus of the research is on truck freight for backed cement and its relation with Helwan Cement Company. The research also analyzes many aspects of truck freight and tries to gauge its effect on logistics. Finally the research describes various factors which are responsible for the prevalence of truck freight and tries to describe the overall effect of truck freight in Helwan Cement Company.

Table Of Contents

CHAPTER 1: INTRODUCTION1

Background of the Study1

Purpose of the Study3

Scope of the Research4

Objectives of the Research6

Research Justification7

CHAPTER 2: LITERATURE REVIEW8

Egyptian Freight Market Overview8

Current trend of different transport modes sharing8

Logistics stakeholders10

Governmental Organization Related To Logistics12

Road system13

Truck operators13

Operation Performance and Efficiency18

(1) Number of Registered Trucks18

(2) Volume of Freight Transported by Trucks20

Environmental Footprint of Cement Industry23

Relatively Cleaner Technologies24

Facilitative Technologies25

Technologies Designed to Prevent Pollution25

Mass-Market P2 Technologies26

International P2 Technologies27

Environmental Impact of Production Operations28

Less Toxicity in Pollution or Generate Less Pollution30

Toxicology31

Characterizing Toxicity33

Differences in Sensitivities34

Risk Assessment35

Environmental Toxicology35

Minimum Energy Performance:36

Optimize Energy Performance:37

Building Reuse:37

Social and Community Impact of Cement Industry39

Resource Efficiency40

Maintaining quality while adding efficiencies:40

Recycled content42

Regional materials42

Low-emitting materials: paints and coatings43

Produce Less Waste45

Simulation of Cement Manufacture49

Chemical Composition of Helwan Cement52

Physical Properties of Cements53

Fineness53

Setting Time55

Soundness55

Compressive Strength56

Heat of Hydration56

Loss on Ignition57

Influence of Cement on Concrete Properties58

Cement Manufacturing Sustainability Program58

Environmental Performance Award61

Land Stewardship Award62

Outreach62

Innovation63

Energy Efficiency63

Overall Environmental Excellence63

Government Requirements67

Environmental Considerations72

Use of other cement constituents74

Clinker factor75

Carbon Footprint (CF)77

Economic Situation in the Cement Industry78

Cement Consumption81

Filling the Gap between Production and Consumption82

Economic-Mathematical Models84

General Algebraic Modeling System (GAMS)87

Introduction87

Structure of the GAMS87

Data Entry88

Variables89

Equations89

CHAPTER 3: METHODOLOGY90

Methodology90

Thesis Structure90

Pricing methodologies91

Macroeconomic View94

Microeconomic View94

The wet process and the dry process99

Egyptian Cement Market Overview:100

Helwan Cement Company104

CHAPTER 4: DISCUSSION AND ANALYSIS105

Operating Cost Models108

Size of firm:108

Firm Strategy:109

Type of Firm:109

Total Cost Model110

Box-Cox Model112

Empirical Results113

Average Cost Function114

Summary and Conclusions116

CHAPTER 5: CONCLUSION118

BIBLIOGRAPHY119

List of Tables

Table 1: Mode Share of Freight Transport in Egypt10

Table 2: Major Stakeholders and Members in the Logistics System11

Table 3: Numbers of Trucks Belonging to Each Cooperative Society15

Table 4: Total Number of Registered Heavy Vehicles18

Table 5: Volume of Freight Handled by Trucks (2002)20

Table 6: Growth Rate20

Chapter 1: Introduction

Background of the Study

Established in 1929, Helwan Cement was the second cement producer to enter the market. It is located 30 Km south of Cairo. The plant is located in an area of 1.000.000 m² with 10 production lines (8 in operation). Since August 2005, Helwan Cement Company has owned 98.69 percent of the company. Helwan Cement has a production capacity of 4.5 million tons of clinker per year. The company manufactures grey and white cement in ...