Case Study

Cold Chain- Fonterra Crawford Street

Case Study

Cold Chain- Fonterra Crawford Street

“Thanks to the project 190,000 metric tonnes of product now passes through the centre annually, enabling dairy products to move faster and more efficiently to port for export”

The Crawford Street Distribution Centre in Hamilton is a strategic part of Fonterra’s global supply chain and is their largest cold storage facility globally. Dairy products produced at Fonterra’s North Island manufacturing sites are moved to this distribution centre and then to the Port of Tauranga where they are shipped to consumers around the world.

Client Information

Fonterra’s Crawford Street Distribution Centre in Hamilton is a strategic part of Fonterra’s global supply chain and is their largest cold storage facility globally. Dairy products produced at Fonterrra’s North Island manufacturing sites are moved to this distribution centre and then to the Port of Tauranga where they are shipped to consumers around the world.

When this high-tech cold distribution centre was opened in 2009, it was the largest of its kind in Australasia. This centre operates 24 hours a day, seven days a week and can hold 50,000 metric tonnes of cold product.

Goal

The goal was to increase capacity at Fonterra’s Crawford Street Distribution Centre.

The capacity has been increased to 190,000 metric tonnes, the equivalent of around 13,000 twenty-foot shipping containers, enabling dairy products to move faster and more efficiently to port for export.

Why TEG Projects

TEG Projects has a strong history of delivering projects for the Fonterra Major Capital Projects Department, since 2005. It was through this ongoing relationship that TEG Projects came on board to increase capacity at Fonterra’s Crawford Street Distribution Centre.

Solution

To achieve the goal of increased throughput with more efficient use of energy, an Automatic Storage and Retrieval System (ASRS) utilising six stacker cranes to put away and pick palletised product from the pallet racking was needed, as well as an integrated conveyor system to deliver product to and from the cranes.

The upgrade also required automated doors for the entry and exit of product from all cold rooms. Doors needed to be linked to the conveyor system to allow seamless integration into the rooms.

A Warehouse Control System was required to provide data and flow management from the Fonterra Warehouse management and ERP system.

Project value: NZD ~$20 million

Main contracting parties: Dexion NZ, DLP Construction, Electrical and Automation Solutions (EAS)

Project duration: 3 years

Challenges

This was the first time Fonterra has used this type of technology, creating a steep learning curve for future installs.
Utilising the existing coldstore pallet racking system was challenging, normally ASRS are installed in new purpose built warehouses with new racking systems.
Safely installing the system within an operating distribution centre compromising daily rail and truck movement and heavy forkhoist movement.
Commissioning the systems during Covid-19 where NZ’s borders were closed and installation and commissioning engineers’ time onsite was limited.

Results

Stage 1 was installed and commissioned in 2021, Stage 2 construction was completed at the end of 2022, bringing significant economic value to the local region and supporting Fonterra’s wider contribution to the national economy. Thanks to the project 190,000 metric tonnes of product now passes through the centre annually, enabling dairy products to move faster and more efficiently to port for export.

This project also brings sustainability benefits by optimising pallet throughput, which provides more capacity at the centre and will enable more products to take an optimal route to port. The project will also allow Fonterra to make greater use of the rail network and reduce the number of shipping containers moved via road, reducing the carbon footprint. The upgraded facility will also be more energy efficient with reduced electricity needs.

Capabilities

Cold Chain- Fonterra Crawford Street