TOHL: Mobile Infrastructure

The Problem

The current problem our firm is presented with confronting is a lack of water access in many geographical locations around the world. Although global numbers range from between 1.2-1.5 billion individuals who lack a constant supply to water, the World Bank and Chilean government both show that over 700,000+ individuals in that country alone lack a constant source of water. Narrowing TOHL’s initial focus to the Chilean region, one can perceive the inefficient water delivery methods that occur in non-urban areas. Batched delivery processes to marginalized communities often use water trucks. This dispersal method, although effective in short term needs, becomes costly to local municipalities, and has serious environmental detriment as well. Conventional pipelines are another means of water logistics. These are typically used in population centers with continuous water flow as well as industrial sites that demand continued access to water. Although better than the batched process provided by a water tanker, their construction is slow and expensive. This conventional method uses a plethora of connections due to short pipe segments, more labor cost, expensive installation equipment, and a lot of valuable time. With little inspiration to change from the current means of truck-based distribution, TOHL is entering a market were growth guarantees profit that is driven by a social purpose.

Plan of Action

TOHL developed a patent-pending technology for installing pipelines cheaply, quickly sustainably, and in any location. This technology utilizes much longer segments of pipeline than what is traditionally used. Single segments of pipeline are manufactured in lengths of 500 meters to several kilometers, and these long segments are loaded directly onto large spools that are deployed via helicopter or truck. The pipelines have fewer connections, which decreases labor hours during installation and allows the pipelines to be in operation faster than is possible if using conventional infrastructure technology. The patent-pending helicopter installations method also allows for TOHL to access remote areas that previously could not be reached, which is significant, because valuable water sources are often inaccessible. Lastly, TOHL’s technology also offers the service of pipeline removal and re-use, when the pipeline is only needed for temporary applications. The tubing is re-spooled and recycled for other projects saving money and resources, through a patent-pending methodology known as Mobile Infrastructure. TOHL sells fluid logistics services to private companies and governments, because conventional fluid logistics solutions are expensive, harmful to the environment, and are limited in their applications. Before TOHL existed, there were two options for fluid logistics: 1) Conventional permanent infrastructure – installing large pipes in short segments, and 2) Transport of fluids by truck. TOHL has a very strong mission to increase access to water for the poor and under-privileged members of society in developing countries. TOHL’s technology was originally born through the desire to help victims dying from lack of access to a reliable water source in Haiti. This mission has been a compelling motivators for the success of TOHL. TOHL provides pipeline deployment services for a variety of industrial and humanitarian needs. The product, as explored in the previous section and more in detail in the Market Solution section of this text, focuses on the provision of pipeline installations to address water demand through negotiated contracts. Our patent-pending methodology, as well as strategic partnerships in our operating region, makes TOHL a preferred firm for water logistics. Our current business model focuses on dividing projects into 50% industrial clients and 50% marginalized community installations. This provides the firm with healthy margins in both the social and industrial spheres and keeps the focus centered around scalability of the firms model in other markets. For industrial installations, the financial value proposition is simple. By completing installations faster and cheaper than the competition, our firm provides a strategic advantage to a variety of markets. Mobile Infrastructure installation techniques uses longer pipe segments than tradition pipeline installations, cutting material, labor, and deployment costs. The option to rapidly uninstall or re-use the pipeline in different locations allows industrial clients to meet increasingly stringent environmental regulations within their respective sectors. The ease of pipeline removal and reuse likewise allows industrial clients to measure their environmental impact, using less environmental resources for their water logistics needs on the field. Uninstalled systems can also be cleaned and added to plastic feedstock for recycling at TOHL’s tubing manufacturing partner’s facility. Humanitarian installations offer cost savings on average at over $0.10 USD/liter cheaper than the competition (assuming an average of $8000 USD/month for water distribution via tanker truck). Our systems costs for marginalized communities in Chile will be cost competitive and practically pay itself off within a 12 month period as compared to current tanker truck cost structure. Dignity will be restored to communities because of newly acquired access to a continuous source of water. Moreover, municipal governments whose budgets that were once consumed by high costs of water distribution will be able to invest local tax dollars in other vital social services. The carbon impact of Mobile Infrastructure is negligible due to the renewable energy sources that power the system and its static state once it is installed by helicopter. Compare this to the amount of fossil fuel resources required by a tanker truck traveling to these communities on a weekly basis. Using Chile as a launch-pad for TOHL, the corporate vision is to solve worldwide problems of water access. With a population know estimated to be over 17.5 million inhabitants, Chile must seek new means of water distribution to the remaining 4% of their constituency that do not have a constant flow of water to their households. TOHL’s model is scalable and proven in Chile with four revenue-generating installations in this country having entered into their initial contract-signed stage. Additionally, our most recent installation has been confirmed for a community in Juba, South Sudan. TOHL is expected to reach sales revenue of ~$10,000,000 in 7 countries, within 4 years. $240,000 of funding has been raised via angel funding from Fundacion Chile ($86,000) and competitions (Start-up Chile, Kickstarter, Avina (Coca-Cola Foundation funds), Startup Atlanta, Ideas2Serve, Common Pitch Chile, Dell Social Innovation Challenge, among others). As TOHL continues to address the global demand for increased access to water and other fluids, it is important for TOHL to locate an invest partner with the ability and the aptitude to invest $500,000 USD in the company for a negotiated equity share in TOHL, Inc., located in Atlanta, Georgia, USA.

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