Your organisation, Dixon Co. is a large multinational oil company with multiple storage facilities located
around Australia. The headquarter of Dixon Co. is located on the banks of Yarra River, in Melbourne.
Dixon Co. own and operate their tank farms across few states to supply the domestic market with
automotive fuel storage and truck load from their Yarraville Terminal Storage facility.
The Yarraville Terminal handles just
under 3 billion litres of refined fuel
products each year, that are supplied to
customers throughout Victoria and in
some parts of South Australia and
Southern New South Wales. This
equates to approximately 8 million
liters per day.
In line with Victorian regulatory
requirements, the Yarraville Terminal Storage facility is registered as a Major Hazard Facility because it
stores and handles large quantities of flammable products. The site operates under an environmental
license issued by the Environment Protection Authority (EPA).
The headquarter in Melbourne has the responsibility to determine which projects take priority, the
scope, and goals for each project along with the terms and conditions for engaging contractors to
complete the works. The Revenue Division of the company has developed a business case for substantial
repair works to be completed to reduce environmental fines and optimize availability and throughput of
all locations.
You are the Project Manager, employed to plan and
manage a project to bring the Yarraville Terminal
storage facility up to the required standard, while
normal operations continue.
You report to the clients Program Manager in the
Dixon Co. office in South Australia and Southern New
South Wales.
Currently 30% of the company’s storage capacity in the Yarraville Terminal is bordering on collapse due
to the age and condition of the tanks and associated infrastructure. These tanks are used for bulk storage
of fuel products arriving from Mobil’s Altona Refinery and Shell’s Geelong Refinery (via pipeline) and from
overseas/interstate (via ship). At the tank truck fill stand, up to eight trucks can be loaded simultaneously
with various fuels stored in the terminal.
The condition of the largest tank in Yarraville terminal is particularly bad due to the tank being over 50
years old and of a complex and outdated design. The company is currently paying $50,000/month in
environmental fines due to detected leakage of petroleum products into the surrounding soil.
You are the second Project Manager to be appointed to this project due to performance and personal
issues affecting prior appointments. The Health, Safety and Environment (HSE)
Manager has worked with you before, but your relationship is tarnished from a disagreement with your
in-house HSE Manager. The Terminal Manager has taken over responsibility for operations in the last 4
RMIT Introduction to Project Management
months after a promotion and is still working through the logistical challenges of the site. Operations
must continue to provide revenue streams and continuity of supply to fuel outlets.
Fuel deliveries for the tanks under repair have been rescheduled to coincide with the planned completion
of works as per the schedule.
• Capacity: 1 million litres unleaded petrol (ULP)
• 4 Steel Patches averaging 2m2 in size.
• 4 Steel anchors required on top of tank for working at heights Cleaning and repaint of outside of
tank
• Capacity: 3 million litres unleaded petrol (ULP)
• 7 Steel Patches averaging 3m2 in size.
• 4 Steel anchors required on top of tank for working at heights Cleaning and repaint of outside of
tank.
• Capacity: 7 million litres unleaded petrol (ULP)
• 6 Steel Patches averaging 1.5m2 in size.
• 4 Steel anchors required on top of tank for working at heights
• Replacement of main supply valve. Size: 250mm Diameter, in Stainless Steel.
• Cleaning and repaint of outside of tank .
• Capacity: 9 million liters unleaded petrol (ULP)
• 8 Steel Patches averaging 1.5m2 in size.
• 6 Steel anchors required on top of tank for working at heights
• Replacement of main supply valve. Size: 300mm Diameter, in Stainless Steel.
• Cleaning and repaint of outside of tank.
The site is a tapered triangular shape. The
longest side is bounded by the loading
docks. Another side has a dead- end road
leading to the container terminal.
The final side is bounded by a small
specialist oil distribution company. The site
is on a rise with loading gantry site below
the tanks. In order to work on the tanks,
you will need to use two large cranes, one
small crane and scaffolding. When a tanker
docks to deliver fuel, all works stops due to
highly flammable vapors venting from tanks
as they fill.
RMIT Introduction to Project Management
• Time to fill Tank 1: 6 to 8 hours
• Time to fill Tank 2: 8 to 10 hours
• Time to fill Tank 3: 18 to 20 hours
• Time to fill Tank 4: 20 to 22 hours
Site plan view showing restricted access and internal restrictions created by pipelines.