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ICEBERGS FOR KUWAIT
CASE STUDY
Tarunpreet Singh, Mengqi Lin, Chu
Zheng, Yong Xo & Xuewei Xia
Iceberg for Kuwait
Case Study
Index
Analysis
Assumptions
Recommendations
Current Issues
Analysis
Assumptions
Recommendations
Current Issues
Appendix
Appendix
Iceberg for Kuwait
Case Study
Current Issues
Extensive consumption of oil using conventional technology
Feasibility of towing Icebergs from South Pole to Kuwait
Varying parameters associated with Alternative method
High costs of Desalinating seawater
Profitability of Alternative method producing water from Iceberg
Iceberg for Kuwait
Case Study
Recommendations for using Alternative method
Volume of the
Iceberg carry from
the South Pole
should be greater
than 6,054,466 m³
Speed of the towing
vessel should be
5km/hr
1 2
Iceberg for Kuwait
Case Study
Assumptions
Only large towing ships are rented which can carry maximum of
10,000,000 Cubic meter of Iceberg
Melting Rate of the iceberg is linear function of the distance of destination
from the South Pole, if distance is less than or equal to 4000 km
(Appendix-1)
Minimum fuel cost for the towing ship is same as for 1000 m³ volume at
given speed.
Towing ship can travel at three speeds only 1km/hr, 3 Km/hr & 5 km/hr
Melting Rate of the Iceberg is same for distance greater than 4000 Km
between destination and South Pole
Associated Fuel Costs of towing ship are logarithmic function of the
volume of the Iceberg carrying, if volume is higher that 1000 cubic meters
( Appendix- 2)
Iceberg for Kuwait
Case Study
Assumptions
Rent and Fuel costs incur even in the case of iceberg completely melts
before reaching the destination
Full day rent incur even if the towing ship reaches destination before day
ends. For Instance, at speed 3 Km/hr the total rent would be taken for
134 days rather than just for 133.33 days
Kuwait govt. has monopoly on desalinating water, and desalinating costs
£0.1/m³
Fuel cost for the given day will be dependent on the volume of the
iceberg at the beginning of the day
Iceberg is spherical in shape, melting rate at any given speed is the
reduction in the radius of the Iceberg
Rent for large towing ship is £ 800/day (Appendix 3)
Iceberg for Kuwait
Case Study
ANALYSIS- 1
Recommendation 1:- Speed of the towing vessel should be
5km/hr
Model we created takes the speed of the towing ship and Volume of the Iceberg it carrying.
Kuwait is at 9600Km distance from South Pole, so it takes minimum of 400 days(@ 1Km/hr speed) or maximum of 80 days ( @ 5 Km/hr) to transport Iceberg to Kuwait.
Radius of the Iceberg at the beginning is given by 4/3 ∏ R³ .
Radius of the iceberg vary everyday depending on the distance left at the beginning of the day from destination(Appendix 4).
Fuel Costs vary everyday depending on the Volume of the Iceberg left at the beginning of the day(Appendix 4).
Analysis- 1
Recommendation-: 1 (contd.)
Cost of desalinating the seawater is £ 0.1/m³ of water.
Volume of water generated from the Iceberg at the destination is
0.85x volume of the Iceberg at the destination.
Total Profit from using Alternative method is difference between the
desalinating cost of same volume of water generated from Iceberg
and total cost incur from alternate method (Appendix-5).
Iceberg For Kuwait
Case Study
Analysis- 1
Results from our Analysis
Total Profit from Alternate method for towing 10,000,000 m³ at the speed of 5 Km/hr
is £203,430.33.
Total Profit from Alternate method for towing 10,000,000 m³ at the speed of 3 Km/hr
is £97,611.33
A Loss of £361,035.33 incur on towing 10,000,000 m³ of Iceberg at 1 Km/hr
To better understand the results from our model we did sensitivity analysis on
few parameters to check the profit variation.
Case 1
Iceberg for Kuwait
Case Study
Sensitivity of
our results
Profit is maximum or
loss is minimum at any
volume for speed of
ship at 5 Km/hr
(Appendix- 6)
Profit is directly related
to the volume of Iceberg
carry by the towing ship
from South Pole.
Case 2
Iceberg for Kuwait
Case Study
Analysis
-£250,000.00
-£200,000.00
-£150,000.00
-£100,000.00
-£50,000.00
£0.00
£50,000.00
£100,000.00
£150,000.00
£200,000.00
Pro
fit
Volume of Iceberg in m³
Profit vs Volume of Iceberg
5 Km/hr
-£500,000.00
-£400,000.00
-£300,000.00
-£200,000.00
-£100,000.00
£0.00
£100,000.00
£200,000.00
£300,000.00
500,0
00.0
1,0
00,0
00.0
1,5
00,0
00.0
2,0
00,0
00.0
2,5
00,0
00.0
3,0
00,0
00.0
3,5
00,0
00.0
4,0
00,0
00.0
4,5
00,0
00.0
5,0
00,0
00.0
5,5
00,0
00.0
6,0
00,0
00.0
6,5
00,0
00.0
7,0
00,0
00.0
7,5
00,0
00.0
8,0
00,0
00.0
8,5
00,0
00.0
9,0
00,0
00.0
9,5
00,0
00.0
10,0
00,0
00.0
Pro
fit
Volume of Iceberg in m³
Profit Sensitivity w.r.t Volume for a Given Speed
1 Km/hr
3 Km/hr
5 km/hr
Case 1- Profit for any volume is greater at 5km/hr
Case 2- Profit is directly proportional to the volume of the Iceberg
Iceberg for Kuwait
Case Study
ANALYSIS-2
Recommendation 2:- Volume of the Iceberg carry from the South Pole
should greater than 6,054,466 m³
Based on our previous recommendation, we did further analysis to quantize the minimum requirements for the alternate method to be profitable.
We found that profit from alternate method is directly proportional to volume of the Iceberg carrying by the towing ship at the beginning.
Analysis- 2
Results of our Analysis
Alternate method of generating water is profitable only when the
towing ship runs at 5 Km/hr and carry atleast 6,054,466 m³
(Appendix-7)
If the carrying volume of Iceberg is less than 6,054,466 m³, then we
would recommend to use desalinating method of generating
drinkable water.
To further analyze our results, we found that our results are more
sensitive to the volume of the Iceberg than the Rent costs of
the towing ship (Appendix-8)
Icebergs for Kuwait
Case Study
Analysis- 2
Company Name
www.themegallery.com
60
00
00
0.0
0
65
00
00
0.0
0
70
00
00
0.0
0
75
00
00
0.0
0
80
00
00
0.0
0
85
00
00
0.0
0
90
00
00
0.0
0
95
00
00
0.0
0
10
00
00
00
.00
50000.00
0.00
50000.00
100000.00
150000.00
200000.00
250000.003
00
.00
40
0.0
0
50
0.0
0
60
0.0
0
70
0.0
0
80
0.0
0
90
0.0
0
10
00
.00
Volume of the Iceberg in m³
Pro
fit
Rent Cost
Profit Sentivity Rent Cost vs Volume of the Iceberg
200000.00-250000.00
150000.00-200000.00
100000.00-150000.00
50000.00-100000.00
0.00-50000.00
50000.00-0.00
LOGO
Case Study
Appendix -1
Company Name
www.themegallery.com
y = 0.000060xR² = 1.000000
0
0.05
0.1
0.15
0.2
0.25
0.3
0 1000 2000 3000 4000 5000
Me
ltin
g R
ate
Distance from South Pole
Melting Rate as afunction of distance at speed of 1 KM/Hr
1
Linear (1)
y = 0.000080xR² = 1.000000
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0 1000 2000 3000 4000 5000
Me
ltin
g R
ate
Distance from South Pole
Melting Rate as afunction of distance at speed of 3 KM/Hr
3
Linear (3)
y = 0.00010xR² = 1.00000
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0 1000 2000 3000 4000 5000
Mel
tin
g R
ate
Distance from South Pole
Melting Rate as afunction of distance at speed of 5 KM/Hr
5
Linear (5)
Appendix -2
Company Name
www.themegallery.com
y = 0.912ln(x) - 2.1R² = 1
0
2
4
6
8
10
12
14
0 5,000,000 10,000,000 15,000,000
Fu
el C
ost
Volume
Fuel Cost as a function of Volume at speed of 1 Km/hr
1 km/hr
Log. (1 km/hr)
y = 1.1726ln(x) - 2.7R² = 1
0
2
4
6
8
10
12
14
16
18
0 5,000,000 10,000,000 15,000,000
Fu
el C
ost
s
Volume
Fuel Cost as a function of Volume at speed of 3 Km/hr
3 km/hr
Log. (3 km/hr)
y = 1.4332ln(x) - 3.3R² = 1
0
5
10
15
20
25
0 5,000,000 10,000,000 15,000,000
Fuel
Cos
ts
Volume
Fuel Cost as a function of Volume at speed of 5 Km/hr
5 km/hr
Log. (5 km/hr)
Appendix -3
Company Name
www.themegallery.com
Parameters
Large Ship
Daily rental (£) £800.00
Maximum load (cu. meter) 6,054,466
Speed of the Rented Boat 5
Cost of Desalinating Water in Kuwait £0.10
Appendix 4
Company Name
www.themegallery.com
Days
Distance left
after day
Distance left
after day Melting rate
Radius of the
Iceberg
Volume of the
iceberg
Fuel cost
per Km
Total fuel Cost
for the day
1 9600 9480 0.400 113.07 6,054,466 19.1 2290
2 9480 9360 0.400 112.67 5,990,435 19.1 2288
3 9360 9240 0.400 112.27 5,926,857 19.1 2286
4 9240 9120 0.400 111.87 5,863,730 19.0 2284
5 9120 9000 0.400 111.47 5,801,053 19.0 2282
6 9000 8880 0.400 111.07 5,738,825 19.0 2281
7 8880 8760 0.400 110.67 5,677,043 19.0 2279
8 8760 8640 0.400 110.27 5,615,706 19.0 2277
9 8640 8520 0.400 109.87 5,554,813 19.0 2275
10 8520 8400 0.400 109.47 5,494,361 18.9 2273
11 8400 8280 0.400 109.07 5,434,349 18.9 2271
12 8280 8160 0.400 108.67 5,374,777 18.9 2269
13 8160 8040 0.400 108.27 5,315,641 18.9 2267
14 8040 7920 0.400 107.87 5,256,940 18.9 2265
15 7920 7800 0.400 107.47 5,198,673 18.9 2264
16 7800 7680 0.400 107.07 5,140,839 18.8 2262
17 7680 7560 0.400 106.67 5,083,434 18.8 2260
18 7560 7440 0.400 106.27 5,026,459 18.8 2258
19 7440 7320 0.400 105.87 4,969,911 18.8 2256
20 7320 7200 0.400 105.47 4,913,789 18.8 2254
21 7200 7080 0.400 105.07 4,858,091 18.8 2252
22 7080 6960 0.400 104.67 4,802,815 18.7 2250
23 6960 6840 0.400 104.27 4,747,961 18.7 2248
24 6840 6720 0.400 103.87 4,693,525 18.7 2246
25 6720 6600 0.400 103.47 4,639,508 18.7 2244
26 6600 6480 0.400 103.07 4,585,906 18.7 2242
27 6480 6360 0.400 102.67 4,532,719 18.7 2240
28 6360 6240 0.400 102.27 4,479,944 18.6 2238
Calculation at the beginning of the Journey
Appendix- 4 (Contd.)
Case Study
31 6000 5880 0.400 101.07 4,324,082 18.6 2232
32 5880 5760 0.400 100.67 4,272,943 18.6 2230
33 5760 5640 0.400 100.27 4,222,208 18.6 2228
34 5640 5520 0.400 99.87 4,171,877 18.5 2226
35 5520 5400 0.400 99.47 4,121,948 18.5 2224
36 5400 5280 0.400 99.07 4,072,418 18.5 2222
37 5280 5160 0.400 98.67 4,023,287 18.5 2219
38 5160 5040 0.400 98.27 3,974,552 18.5 2217
39 5040 4920 0.400 97.87 3,926,213 18.5 2215
40 4920 4800 0.400 97.47 3,878,267 18.4 2213
41 4800 4680 0.400 97.07 3,830,713 18.4 2211
42 4680 4560 0.400 96.67 3,783,550 18.4 2209
43 4560 4440 0.400 96.27 3,736,775 18.4 2207
44 4440 4320 0.400 95.87 3,690,387 18.4 2205
45 4320 4200 0.400 95.47 3,644,385 18.4 2202
46 4200 4080 0.400 95.07 3,598,767 18.3 2200
47 4080 3960 0.400 94.67 3,553,531 18.3 2198
48 3960 3840 0.396 94.27 3,508,675 18.3 2196
49 3840 3720 0.384 93.87 3,464,642 18.3 2194
50 3720 3600 0.372 93.49 3,422,296 18.3 2192
51 3600 3480 0.360 93.11 3,381,604 18.2 2190
52 3480 3360 0.348 92.75 3,342,533 18.2 2188
53 3360 3240 0.336 92.41 3,305,052 18.2 2186
54 3240 3120 0.324 92.07 3,269,130 18.2 2184
55 3120 3000 0.312 91.75 3,234,738 18.2 2182
56 3000 2880 0.300 91.43 3,201,849 18.2 2180
57 2880 2760 0.288 91.13 3,170,435 18.2 2178
58 2760 2640 0.276 90.85 3,140,472 18.1 2177
59 2640 2520 0.264 90.57 3,111,936 18.1 2175
60 2520 2400 0.252 90.31 3,084,802 18.1 2174
61 2400 2280 0.240 90.05 3,059,049 18.1 2172
62 2280 2160 0.228 89.81 3,034,657 18.1 2171
63 2160 2040 0.216 89.59 3,011,604 18.1 2170
64 2040 1920 0.204 89.37 2,989,872 18.1 2168
65 1920 1800 0.192 89.17 2,969,444 18.1 2167
Appendix 4 (Contd.)
Iceberg for Kuwait
Case Study
66 1800 1680 0.180 88.97 2,950,303 18.1 2166
67 1680 1560 0.168 88.79 2,932,433 18.0 2165
68 1560 1440 0.156 88.63 2,915,820 18.0 2164
69 1440 1320 0.144 88.47 2,900,450 18.0 2163
70 1320 1200 0.132 88.33 2,886,310 18.0 2162
71 1200 1080 0.120 88.19 2,873,389 18.0 2162
72 1080 960 0.108 88.07 2,861,675 18.0 2161
73 960 840 0.096 87.97 2,851,161 18.0 2160
74 840 720 0.084 87.87 2,841,836 18.0 2160
75 720 600 0.072 87.79 2,833,694 18.0 2159
76 600 480 0.060 87.71 2,826,727 18.0 2159
77 480 360 0.048 87.65 2,820,930 18.0 2158
78 360 240 0.036 87.61 2,816,299 18.0 2158
79 240 120 0.024 87.57 2,812,828 18.0 2158
80 120 0 0.012 87.55 2,810,516 18.0 2158
81 0 0 0.000 0.00 0.00 0.0 0
82 0 0 0.000 0.00 0.00 0.0 0
83 0 0 0.000 0.00 0.00 0.0 0
84 0 0 0.000 0.00 0.00 0.0 0
85 0 0 0.000 0.00 0.00 0.0 0
86 0 0 0.000 0.00 0.00 0.0 0
87 0 0 0.000 0.00 0.00 0.0 0
88 0 0 0.000 0.00 0.00 0.0 0
89 0 0 0.000 0.00 0.00 0.0 0
90 0 0 0.000 0.00 0.00 0.0 0
91 0 0 0.000 0.00 0.00 0.0 0
92 0 0 0.000 0.00 0.00 0.0 0
93 0 0 0.000 0.00 0.00 0.0 0
94 0 0 0.000 0.00 0.00 0.0 0
95 0 0 0.000 0.00 0.00 0.0 0
96 0 0 0.000 0.00 0.00 0.0 0
97 0 0 0.000 0.00 0.00 0.0 0
98 0 0 0.000 0.00 0.00 0.0 0
99 0 0 0.000 0.00 0.00 0.0 0
100 0 0 0.000 0.00 0.00 0.0 0
Appendix-5
Calculation Table
Iceberg for Kuwait
Case Study
Description Calc.
Distance from the south pole in km's 9600
Speed of the Ship km/hr 5
Total Number of days to reach at destination 80.00
Radius of the iceberg at the begining 133.65
Radius of the ice berg at destination 108.13
Total Rental cost £64,000.00
Total fuel cost £182,713.92
Volume of Iceberg at the destination 5295814.72
Total cost incurred for the vol of water from iceberg £246,713.92
Vol.of water obtained from the iceberg at destination 4501442.508
Total Cost of Desalinating vol of water from iceberg £450,144.25
Total Profit £203,430.33
Calculation Table
Appendix- 6
Company Name
www.themegallery.com
£0.00 1 3 5
500,000.0 -£376,282.33 -£206,255.44 -£190,145.57
1,000,000.0 -£383,948.27 -£213,126.23 -£191,089.79
1,500,000.0 -£389,882.27 -£209,749.17 -£182,218.80
2,000,000.0 -£395,394.00 -£201,682.81 -£168,803.88
2,500,000.0 -£401,662.01 -£190,696.91 -£152,597.66
3,000,000.0 -£406,219.57 -£177,638.72 -£134,439.68
3,500,000.0 -£408,640.31 -£162,997.06 -£114,810.44
4,000,000.0 -£409,603.69 -£147,086.63 -£94,016.25
4,500,000.0 -£409,419.65 -£130,125.36 -£72,267.08
5,000,000.0 -£408,270.38 -£112,272.20 -£49,714.63
5,500,000.0 -£406,279.26 -£93,647.69 -£26,472.93
6,000,000.0 -£403,537.42 -£74,346.05 -£2,630.37
6,500,000.0 -£400,116.07 -£54,442.75 £21,742.76
7,000,000.0 -£396,073.00 -£33,999.47 £46,589.42
7,500,000.0 -£391,456.44 -£13,067.42 £71,862.52
8,000,000.0 -£386,307.43 £8,310.23 £97,522.64
8,500,000.0 -£380,661.47 £30,096.67 £123,536.30
9,000,000.0 -£374,549.63 £52,260.19 £149,874.84
9,500,000.0 -£367,999.37 £74,773.20 £176,513.40
10,000,000.0 -£361,035.17 £97,611.52 £203,430.33
Sensitivity Analysis
Vo
lum
e o
f Ic
eb
erg
m³
Speed of the Towing Ship
Appendix- 7
Icebergs for Kuwait
Case Study
Description Calc.
Distance from the south pole in km's 9600
Speed of the Ship km/hr 5
Total Number of days to reach at destination 80.00
Radius of the iceberg at the begining 113.07
Radius of the ice berg at destination 87.55
Total Rental cost £64,000.00
Total fuel cost £174,893.86
Volume of Iceberg at the destination 2810516.04
Total cost incurred for the vol of water from iceberg £238,893.86
Vol.of water obtained from the iceberg at destination 2388938.635
Total Cost of Desalinating vol of water from iceberg £238,893.86
Total Profit £0.00
Calculation Table
Break-even Point at volume at ship speed 5 km/hr
Iceberg for Kuwait
Case Study
Appendix- 8
0.00 6000000.00 6500000.00 7000000.00 7500000.00 8000000.00 8500000.00 9000000.00 9500000.00 10000000.00
300.00 37369.63 61742.76 86589.42 111862.52 137522.64 163536.30 189874.84 216513.40 243430.33
350.00 33369.63 57742.76 82589.42 107862.52 133522.64 159536.30 185874.84 212513.40 239430.33
400.00 29369.63 53742.76 78589.42 103862.52 129522.64 155536.30 181874.84 208513.40 235430.33
450.00 25369.63 49742.76 74589.42 99862.52 125522.64 151536.30 177874.84 204513.40 231430.33
500.00 21369.63 45742.76 70589.42 95862.52 121522.64 147536.30 173874.84 200513.40 227430.33
550.00 17369.63 41742.76 66589.42 91862.52 117522.64 143536.30 169874.84 196513.40 223430.33
600.00 13369.63 37742.76 62589.42 87862.52 113522.64 139536.30 165874.84 192513.40 219430.33
650.00 9369.63 33742.76 58589.42 83862.52 109522.64 135536.30 161874.84 188513.40 215430.33
700.00 5369.63 29742.76 54589.42 79862.52 105522.64 131536.30 157874.84 184513.40 211430.33
750.00 1369.63 25742.76 50589.42 75862.52 101522.64 127536.30 153874.84 180513.40 207430.33
800.00 2630.37 21742.76 46589.42 71862.52 97522.64 123536.30 149874.84 176513.40 203430.33
850.00 6630.37 17742.76 42589.42 67862.52 93522.64 119536.30 145874.84 172513.40 199430.33
900.00 10630.37 13742.76 38589.42 63862.52 89522.64 115536.30 141874.84 168513.40 195430.33
950.00 14630.37 9742.76 34589.42 59862.52 85522.64 111536.30 137874.84 164513.40 191430.33
1000.00 18630.37 5742.76 30589.42 55862.52 81522.64 107536.30 133874.84 160513.40 187430.33
Ren
t C
osts
Volume of Iceberg in m³
