Introducing bicycles into a petrochemical manufacturing plant
Introduction
Established in 1995, EQUATE is an international venture involved in petrochemical manufacturing, producing over 5 million tons annually of petrochemical products, marketed throughout the Middle East, Asia, Africa and Europe (Equate.com).
With close to 1,370 employees, EQUATE consists of 11 departments, each currently provided with 6 cars. As part of an on-going attempt to reduce the plant’s environmental footprints caused by the manufacturing process as well as related processes such as inter-plant transportation, the idea of replacing several vehicles with bicycles was introduced.
Motorised transport is a significant contributor to environmental adversities. A one-kilometre bicycle ride is equivalent to the reduction of 167 kilograms of Carbon Dioxide. For each vehicle kept off the road, approximately 5,500 tons of carbon will be spared from the atmosphere. Therefore, a bicycle is an ideal alternative. In addition, using a bicycle in the workplace or at the disposal of an employee instead of a motorized vehicle reduces operational costs such as vehicle maintenance, fuel, parking and servicing. The cost reduction can amount to 120-350 USD per week (Williams, 2008).
Though the use of bicycles seems to be a perfect alternative to motorized vehicles, one cannot ignore several shortcomings; first, bicycles are more vulnerable to safety issues, especially when used in a manufacturing work environment, surrounded by machinery and heavy-lifting vehicles (Turner et al., 1996). Second, there are several barriers such as fear of crime and vandalism, as well as lack of appropriate infrastructure within and outside the workplace that would make the use of bicycles difficult (Vandenbulcke et al., 2009).
Being an international petrochemical manufacturing company, EQUATE faces external pressure to engage in social and environmental responsibility. As a manufacturing plant involved in petrochemicals, the pressure and expectations are higher. Currently, EQUATE employs several sustainability measures and objectives, including the reduction of its carbon footprint through channelling its gas emissions to a third party that makes use of the excess gas, decreasing the use of toxic materials and an overall attempt to decrease water consumption (EQUATE Corporate Sustainability Report, 2012). Nevertheless, in a transaction-cost perspective, implementing such methods, restrictions and practices may prove to be costly, as they require substantial human and financial resources (Orlitzky et al., 2011).
Therefore, an implementation of an environmentally-friendly and cost-reducing method of transportation can serve as a perfect solution. The following graph illustrates it properly:
In light of the potential advantages and possible difficulties in substituting several vehicles with non-motorized methods of transportation, namely bicycles, a SWOT (Strengths, Weaknesses, Opportunities and Threats) strategic analysis was conducted.
A SWOT analysis is intended to identify an organization’s strengths and weaknesses as well as opportunities and threats posed by external forces. Based on the identification of these factors, strategies are developed in order to build on the strengths, exploit the opportunities, counter the threats and eliminate the weaknesses (Dyson, 2004).
When conducting a SWOT analysis on the use of bicycles in the work environment, the following factors should be taken into consideration: first, among the internal factors, one must consider financial aspects such as cost reduction and investment, as well as factors pertaining to the workforce and working environment, including safety, health and employee satisfaction. Second, the external factors that should be considered include third-party involvement such as insurance, operation costs and external vendor involvement. In addition, the feasibility of using bicycles in the company’s climate should be carefully considered.
In conclusion, it seems that a partial replacement of motorized vehicles with non-motorized modes of transportation may serve a twofold goal, combining environmentally-friendly practices with cost-reduction. Other petrochemical companies have already begun implementing such a plan: Exxon Mobil, BP and ConocoPhillips are some of the oil companies encouraging their employees to use bicycles (Patel, 2007).
References
Dyson, R. G. (2004). Strategic development and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), 631-640.
EQUATE Sustainability Report (December 2012). Retrieved December 29th, 2013 from http://www.equate.com/upload/sustainability_report_2012_en_811.pdf
Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic corporate social responsibility and environmental sustainability. Business & Society, 50(1), 6-27.
Patel, Purva (2007), Houston Oil Companies Encouraging Commutes by Bicycle. Houston Chronicle. N.p.
Turner, J. (1996). Subverting sustainability? Infrastructural and cultural barriers to cycle use in Accra. World Transport Policy and Practice, 2(3), 18-23.
Vandenbulcke, G., Thomas, I., de Geus, B., Degraeuwe, B., Torfs, R., Meeusen, R., &IntPanis, L. (2009). Mapping bicycle use and the risk of accidents for commuters who cycle to work in Belgium. Transport Policy, 16(2), 77-87.
Williams, Tim (2008) Promoting the use of cycling as an environmentally and socially sustainable form of transport. In: 3rd International Solar Cities Congress 2008, 17-21 February 2008, Adelaide, South Australia.
