Energy Transportation Logistics

August 9, 2023

Energy transportation logistics is the management of resources — including inventory, materials, equipment, and people — in order to transport energy and products from one place to another. The practice aims to minimize the cost of supply and distribution, while increasing customer profit. In the past, industrialization demanded that factories be located close to sources of power (a waterfall or a coalfield) and raw materials, but mass conveyances and new energy sources have enabled far greater locational flexibility.

Almost all transport modes are dependent upon variations of internal combustion engines, with most ships and trucks using diesel and jet engines and railways depending on electrical power. The invention and commercialization of these machines is credited with the industrial revolution, expanding the mobility of passengers and goods and inciting the growth of a global trade network.

The emergence of last mile logistics coupled with logistics automation has opened lucrative market opportunities for energy logistics services providers. The rise in globalization has further intensified the demand for these services, driving the energy logistics market. Nevertheless, poor infrastructure and high logistics costs hamper the growth of this market. Moreover, lack of effective workforce safety measures further hinder the growth of this industry. Nevertheless, the inception of logistics 4.0 is expected to accelerate the growth of this market in the near future. This article provides a detailed analysis of the current and future trends in the global energy logistics market along with forecasts to depict imminent investment pockets.


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