An integrated approach to risk management for a bulk coal export logistic chain

Abstract

In an ever-changing world where economic growth is inter-alia dependent on the export of bulk minerals, the risk and the severity of risk incidences in the bulk mineral supply chain should be minimised. In South Africa the export of coal is a large contributor to the GDP and any risk to this supply chain will directly affect its contribution to the GDP. Although all the stakeholders in the bulk coal export logistic chain manage the risk in their own domain, the bulk export logistic chain represents a supply chain structure where the risk of one stakeholder influences the risk of another stakeholder. Therefore, to reduce the total risk, an integrated risk management framework for the bulk coal export logistic chain is required.

This study investigated the risks and the risk management processes in the bulk coal export supply chain. This logistic chain was chosen based on the monetary value the chain represents and the contribution to the GDP. A qualitative research design was used with one-on-one interviews and content analysis of risk management policies and procedures to obtain the data. The study revealed that there are risks that could not be managed on an individual stakeholder level and therefore an integrated risk management approach that considers the total bulk coal logistics export chain is required.