Introduction

We noticed that the transportation for “Kawkabuna for energy solutions” can be reduced.
Kawkabuna import PV modules from JA Solar in China through sea to Aqaba, then using trucks to
their inventory in Amman. We found an alternative supplier in Jordan , which can minimize the
costs. A detailed analysis is discussed in this report

TRANSPORTATION COSTS FROM CHINA TO JORDAN

1. Shipping Cost from China to Aqaba:

The shipping cost will depend on factors such as the shipping company, shipping method, distance,
and weight/volume of the shipment.
The shipping cost for 800 PV panels from China to Aqaba is 5,000 JOD.
2. Import Taxes and Customs Fees:
import taxes and customs fees will apply when the goods arrive in Jordan.
The import taxes and customs fees amount to 1,500 JOD.
3. Port Handling and Clearance Fees in Aqaba:
Ports charge handling and clearance fees for processing and releasing goods.
A cost of 500 JOD for port handling and clearance fees in Aqaba.
4. Transportation Cost from Aqaba to Amman:
Let's assume the fuel consumption is 165 liters, and the gas cost is 0.98 JOD per liter,
resulting in a cost of 161.7 JOD.
5. Trucking Fees:
A cost of 800 JOD for trucking fees to transport the PV panels from Aqaba to Amman.
Total Transportation Cost:
Shipping Cost: 5,000 JOD
Import Taxes and Customs Fees: 1,500 JOD
Port Handling and Clearance Fees in Aqaba: 500 JOD
Transportation Cost from Aqaba to Amman: 161.7 JOD
Trucking Fees: 800 JOD
Total Transportation Cost = 5,000 JOD + 1,500 JOD + 500 JOD + 161.7 JOD + 800 JOD
Total Transportation Cost = 7,961.7 JOD
Therefore, the estimated cost of transporting 800 PV panels from China to Aqaba by ships and then
from Aqaba to Amman by trucks would be approximately 7,961.7 Jordanian Dinars (JOD).
TRANSPORTATION COSTS WHILE PV PANELS ARE SOURCED LOCALLY
To calculate the transportation costs in the case where the PV panels are sourced locally in Amman,
we need to consider the transportation cost from the supplier to the inventory location.
1. Packaging and Handling Fees: Assume the supplier charges a packaging and handling fee of
500 JOD.
2. Transportation Cost from Supplier to Inventory (30 km): As previously calculated, assume a
transportation cost of 5.88 JOD for a distance of 30 km.
3. Import Taxes and Customs Fees: Since the PV panels are sourced locally, there won't be any
import taxes or customs fees associated with the shipment.
4. Port Handling and Clearance Fees: As the panels are not arriving through a port, there won't
be any port handling and clearance fees.
5. Trucking Fees: Assume a trucking fee of 500 JOD to transport the PV panels from the
supplier to the inventory location.
Packaging and Handling Fees: 500 JOD Transportation Cost from Supplier to Inventory: 5.88 JOD
Trucking Fees: 500 JOD
Total Transportation Cost = Packaging and Handling Fees + Transportation Cost from Supplier to
Inventory + Trucking Fees Total Transportation Cost = 500 JOD + 5.88 JOD + 500 JOD Total
Transportation Cost = 1,005.88 JOD

supplier cost comparison

Philadelphia Solar
Established in 2007, Philadelphia Solar is a Tier-1 solar panel manufacturer and the largest
manufacturer of solar panels and steel mounting structures in the Middle East, Europe, and Africa
(MEA), with a current production capacity of 580 MW/year. It was the first MENA region company
to manufacture, develop, design, construct, own, and operate utility-scale commercial and industrial
photovoltaic plants. With Free Trade Agreements between Jordan, the EU, the U.S., Canada,
Morocco, and throughout the MENA region. They sell PV panels for retailers for the price of
0.20JOD / Wp .
Kawkabuna for energy solutions usually orders 800 PV panels annually, each has 435 Wp. If
ordered from Philadelphia Solar , it would cost them (800 Module) * (0.18 JOD/ Wp) * (435 Wp) =
62,640 Jordanian Dinars .

JA SOLAR
As a photovoltaic power generation solution platform, JA Solar Technology Co., Ltd. continues to
advance its "One Body, Two Wings" strategy. The "One Body" refers to our main industry chain
integrating silicon wafers, cells, and modules, while the "Two Wings" refer to our PV auxiliary
materials and equipment industry and PV+ application scenario solutions. In 2019, JA Solar was
officially listed on the A-share market. They sell PV panels for retailers for the price of 0.169JOD /
Wp .
Kawkabuna for energy solutions usually orders 800 PV panels annually, each has 435 Wp. If
ordered from Philadelphia Solar , it would cost them (800 Module) * (0.173 JOD/ Wp) * (435 Wp)
= 60,204 Jordanian Dinars .

Total Cost Comparison

Total cost if supplied from Jordan
Total cost = Transportation cost + material cost = 62,640 + 1,005.88 = 63,645.88 JOD

Total cost if supplied from China

Total cost = Transportation cost + material cost = 60,204 + 7,961.7 = 68,165.7 JOD

Results
As shown in the calculations above , the transportation costs are much less when sourced locally,
while the material cost is higher. But, The total cost for the whole operation is less.
Furthermore, when sourcing locally , they can achieve better lead times, and have faster return
policies too.

China
Jordan
Material costs

Transportatio...

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