Land Transportation Contractor Management: A Case Study from Egypt

Abstract

Land transportation represents one of the highest concerns regarding employee safety in the oil and gas industry. This routine activity has led to many road traffic incidents, frequently caused by third-party drivers. An oilfield services company has introduced processes and tools aimed at reducing risk in all aspects of its land journeys. This paper focuses on the management of land transportation contractors (LTCs) and presents results from the company's operations in Egypt. LTC management is mandatory in order to achieve full compliance with the oilfield service company's HSE directives. This paper examines the four key elements of the company's LTC management: contractor driver training and qualification, contractor vehicle specifications and inspection, demand planning, and contractor performance monitoring. Contractor driver training and qualification includes pre-hire driver interview and screening, driver training courses, and engaging contractor drivers in HSE campaigns. Penalties are applied for non-compliance and good practice is rewarded. Contractor vehicle specifications and inspection includes vehicle inspection training and tools for the LTC to self-check that its vehicles conform to defined standards. Demand planning minimizes the use of call-out contractors by challenging the necessity of trips and considering alternative dedicated resources. If no alternative is identified, preference is given to a pool of trained call-out drivers, and portable in-vehicle monitoring systems (IVMSs) are used to identify non-compliance. Contractor performance monitoring is achieved through monitoring the history of reported incidents, contractor audits, key performance indicators (KPIs), service quality meetings, applying remedial work plans, and LTC participation in safety meetings. This paper discusses how the oilfield services company has applied its LTC management processes since starting work with a land transport contractor in Egypt in 2008. In 2012, the company utilized more than 250 of the LTCs vehicles, both leased and on call-out. During a four year period, the LTCs automotive accident rate per mile of catastrophic, major, and serious (CMS) incidents in Egypt has decreased by 100%.