Optimizing Efficiency in Latin America with FlexTerm
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In the world of ever-advancing logistics and infrastructure, Latin America faces a unique set of challenges: vast geographies, diverse industries, complex operational demands, and booming industries like mining, grains, and oil. From the mining hubs of Colombia, Brazil, and Chile to the active container ports and oil fields across the region, efficiency is key. That’s where Moffatt & Nichol’s FlexTerm comes in — a powerful simulation tool built to solve the logistical needs of Latin America and beyond. FlexTerm offers a competitive edge and is essential for staying ahead.
What Regional Challenges Does FlexTerm Address?
Latin America’s industries such as bulk goods, containers, rail, and oil and gas, possess their own challenges:
• Bulk Operations: Mining and grain sectors are responsible for moving extraordinary volumes efficiently. Trains and conveyor belts can speed things up, but how do you know when it’s worth making the switch?
• Containers: Ports need smart planning for expansions, equipment upgrades, and yard space to keep up with demand. Mistakes from poor planning can prove costly in the long run.
• Rail: Because trains are more efficient than truck transport, consolidating cargo in a yard can cut costs and speed up delivery, but how do you optimize that logistical shift?
• Oil and Gas: Inefficiencies in transport or processing can quickly drain profits, especially in LATAM’s volatile energy markets.
FlexTerm takes the guesswork out of investments. By simulating your existing infrastructure and current operations, it identifies and reduces the potential for bottlenecks and other inefficiencies, optimizing processes and creating smoother, streamlined operations. Whether it’s a Brazilian port, a Chilean rail line, or a cruise terminal operation in the Caribbean, FlexTerm shows exactly how something like a rail yard addition, an area expansion, or equipment upgrade will perform before any investment is made.
FlexTerm offers accessible implementation in different ways:
• Consulting: Beyond the model, your project benefits from M&N’s robust industry knowledge and planning expertise, bolstering the solutions for the modeled layout and operations
• In-House: Obtaining a license/subscription service, combined with training for your team.
o We create the model set up, and work together with the client to input the data and KPIs that they care the most about, making their lives easier. Through the in-house implementation of FlexTerm, we continue to provide software maintenance and updates, enabling the model to become a dynamic tool to help solve the needs of the client.
o The customization of the model includes different tiers of capabilities, enabling certain users to adjust the model by modifying the code and programing, while allowing users in other tiers to perform tests on the model.
• Integration: The FlexTerm Emulator includes models that map between TOS data and FlexTerm — such as a multi-threaded communication protocol and interface, and a user-friendly visualization tool for tracking equipment movement such as container inventory on vessels and in storage yards. The framework is highly extendable and scalable, enabling seamless integration of additional emulation functionalities as well as communication with other TOS products.
How do you know if you need FlexTerm?
Port managers, mining operators, and oil executives across the region are actively implementing Flexterm to generate data-driven answers to these questions:
• “Will this expansion pay off?”
• “How can we move cargo faster to its destination?”
• “What’s slowing us down and costing us resources?”
• “Will this expansion work in our market?”
• “Where are we losing money?”
FlexTerm is a tailored solution for those working in logistics or infrastructure who choose to rely on data-driven guidance instead of assumptions. Whether it’s a port manager planning a yard expansion or a mining operator considering switching to rail transport, FlexTerm identifies the strengths and potential shortcomings of a decision before it’s made.
Direct Applications of FlexTerm Across Latin America
Here are some examples of how FlexTerm gets practical:
• Containers: Simulates port expansions and equipment changes, ensuring that investments boost throughput.
• Rail: Tests the impact of a consolidation yard for more efficient cargo movement.
• Oil & Gas: Pinpoints inefficiencies in extraction or transport processes, saving time and money.
• Bulk (Mining & Grains): Models how trains and conveyors can outpace trucks, optimizing load consolidation for faster, cheaper transport.
For example, FlexTerm might model truck vs. train transport for a Chilean copper mine, factoring in load times, distances, and costs to reveal the most efficient mode of transport.
One of Many Transformational Case Studies in the Region
A maritime terminal in Colombia sought to unify operations, accommodating companies with diverse economic and financial stakes in the oil and gas industry. The FlexTerm team performed a complete market and financial analysis, a capacity optimization analysis, and a feasible integration proposal for the companies to generate a business case for the terminal.
These comprehensive analyses provided the companies with the following answers:
• A findings report uncovering current infrastructure and operation conditions.
• Comprehensive market insights into the key dynamics and trends of Colombia, the United States, and the Caribbean’s oil and gas sector, highlighting new and existing business opportunities.
• Advantages and disadvantages of taxation factors such as tariffs, free trade zones, and exemptions, as well as limitations and restrictions for working as a fuel oil import/export terminal.
• Storage capacity simulations of the terminal, considering tank volumes, inlet/outlet flow rates, product types, and vessels loading.
• Simulation of an optimized model of the terminal operation based on current infrastructure capacities, projections of future terminal demands, possible products, TLU potential uses, and operational constraints.
• Potential improvements of current infrastructure in order to optimize the operation and formulate investments through a Class V CAPEX and OPEX.
• Key financial findings into terminal competitiveness, considering load projections, current tariffs, potential tariffs for new services, operational costs, and costs related to future investment plans.
• Formulated an integrated business case of the terminal.
A Colombian operator measures the effect of receiving a larger vessel. A Chilean port doubles capacity with a perfectly timed upgrade. A Brazilian oil field cuts delays by 30%. This is the FlexTerm impact: LATAM logistics, revolutionized.
Verify Prior to Launching Resources
FlexTerm is more than a software, it’s a Discrete Event Simulation (DES) powerhouse. DES is a top-tier tool in operations research, creating a virtual version of real-world systems.
• Dynamic Model: A simplified digital twin of your processes.
• Input Data: Real-world parameters (e.g., load times, equipment stats) plus probability distributions for variability in order to provide accurate results.
• Time Management: Simulates time in steps, showing how systems complete processes.
• Outputs: Measures Key Performance Indicators (KPIs) like throughput, cost, or delays, providing data you can trust for decisions.
A Future with FlexTerm
What would happen if every port, mine, and rail hub in Latin America were to run on FlexTerm?
• No More Uncertainty: Data replaces guesswork, grounding decisions in reality.
• Peak Efficiency: Processes run smoothly, reducing waste and delays.
• Time = Money: Faster operations mean increased savings and profits.
• Actionable Insights: In depth reporting and concise presentations arm leaders with accurate KPIs for smarter decisions.
Why FlexTerm Matters
Simulation gets rid of the need for trial-and-error. It’s a cost-effective technology, letting you test and verify your ideas virtually before committing resources. Moffatt & Nichol’s FlexTerm combines in-depth industry knowledge with technical precision to solve real-world problems like bottlenecks, overinvestment, or sluggish cargo flows. In Latin America, where logistics can make or break a project, FlexTerm can completely transform the field.