Abstract
Worldwide, there has been a rapid growth in the use of pipelines to transport energy products. Due to the strategic nature of energy products that are transported by pipelines, the importance of risk awareness, assessment and management cannot be over-emphasised. With the risk of pipeline disruptions increasing globally, energy pipeline organisations are compelled to incorporate measures that should help to identify and address areas that can lead to energy pipeline disruptions. The incorporation of such measures for any organisation is premised on an understanding and appreciation of the risks involved. Given the strategic importance of energy pipelines, the main purpose of this paper is to establish whether the South African energy pipeline sector and the public at large appreciate the risks associated with energy pipelines. Thus, the paper seeks to ascertain awareness of the risks associated with the energy pipeline's physical environment, not only from the energy pipeline operators, but also from communities who are exposed to such risks. Data for the study was collected from energy pipeline operators and from a selected residential area in Johannesburg using both structured and unstructured questionnaires. The findings show that the corporate energy sector in South Africa is aware of risks associated with energy pipeline supply chains while the general public's awareness is very low.
Highlights
While pipelines are capable of transporting a variety of products, it is in the distribution of energy products where they have gained prominence
Towards a risk awareness and management process for the energy pipeline supply chain industry Muhlbauer (2004) identified a number of risk management processes that are ideal in energy pipeline supply chains
Pipeline risk management is increasingly becoming a major concern as disruptions can adversely impact the provision of energy products resulting in price escalation
Summary
While pipelines are capable of transporting a variety of products, it is in the distribution of energy products (liquid fuel and gas) where they have gained prominence. Pipelines offer significant benefits to modern supply chains through their economic benefits, reliability, higher levels of safety and convenience, as products can be delivered directly to consumers. Products transported by pipelines do not require packaging and the land required for laying pipeline infrastructure is relatively small in comparison with other transportation modes. Some other economic benefits include minimal loss and damage as the movement of the product is covered and protected, and lower energy usage when compared to other modes in moving an equivalent mass of product (Bardi, Coyle & Novack, 2006:149)
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