This month’s HCB has more than the usual flavour of North America to it, as we look ahead to the upcoming AFPM International Petrochemical Conference in San Antonio. The annual event represents the biggest gathering of chemical producers and their logistics service providers in the US calendar and, as with similar events in Europe in recent years, is sure to attract experts from the realm of digitisation.
But, for businesses in the oil, gas and petrochemical industries in the US, Industry 4.0 is not the only big change currently underway. The shale oil and gas boom has brought with it a fundamental upheaval in the economics of upstream activities and the refining and distribution sectors, with change still continuing.
The US has turned from an LNG importer to a major exporter; crude oil export volumes are limited only by terminal capacity (with more projects in the wings); the US is now the dominant source of cargoes for large LPG carriers; and it has single-handedly created a market for ethane, a product of the NGL fractionation process that was, in the early days of shale gas, being given away for want of a viable end market.
All of this has placed great demands on the supply chain which, in the early days of shale at least, struggled to cope. The motor of change in the supply has really been found in the relatively new breed of ‘midstream’ operators, most often incorporated as master limited partnerships to take advantage of preferential tax treatment. With the backing of institutional investors, they have laid pipelines to handle the new product flows, both up- and downstream of refineries and fractionators, and built inland and marine terminals to help even out those flows and provide places to hold product.
The easy availability of cost-advantaged feedstock, most often in the form of ethane, has also led to a surge in new construction in the petrochemicals sector, generating new streams of ethylene and –especially now some operators are building propane dehydrogenation (PDH) plants – propylene. That is opening up opportunities for chemical companies to add capacity further downstream, thus far primarily aimed at the domestic market.
But, as those production volumes increase, manufacturers are beginning to consider their route to overseas markets. That will require a completely different approach to that taken for bulk liquids (crude oil, LNG, LPG and ethane) and is likely to be a significant generator of new demand for players in the multimodal sectors.
It is noticeable that some of the major multimodal players are already making moves and getting prepared for what may turn out to be a bumper year. In this issue we report on how tank container lessor Seaco and operator M&S Logistics are readying themselves for what may turn out to be a major increase in export volumes stemming from the US Gulf.
Over the past couple of years, some midstream operators have been investing heavily in expanding and enhancing bulk liquid export capabilities, not least in the Houston area, and it seems likely that the same thing will have to be done in terms of container and tank container handling capacity, along with greater provision of tank container storage, cleaning and repair facilities.
There is plenty of work to be done if the opportunities are to be realised. Time to get moving.
Peter Mackay
VOLUME 40 • NUMBER 03
Letter from the editor 01
30 Years Ago 04
Learning by training 05
Throw the switch
Vopak refocuses investments 07
Playing with assets
More changes in US midstream 10
Eyes front
Inter Terminals’ latest expansions 14
Let’s talk talks
Previewing StocExpo Europe 18
Make a wish
JPB offers a new way to tankage 20
Closing the gap
Eddyfi adds Inuktun robots 22
Gauging the market
UK Sampling’s latest kit 25
News bulletin – storage terminals 26
On your side
NACD on its members’ challenges 28
Selling up Aceto gets out of chemicals 33
Big three report positive figures 34
News bulletin – chemical distribution 36
Supply chain reaction LogiPharma opens its doors 38
View from the top
The Pack’s Walter Myttenaere 40
The cold box Intelsius offers better tracking 41
Together to Trieste Essers and Lineas open cold rail route 42
Full of eastern promise Bolloré expands in Asian healthcare 43 News bulletin – pharma logistics 44
Ready for anything
M&S prepares for US demand surge 47
Brand extension
MOL Chemical buys into Den Hartogh 48
Heading south Seaco adds Houston office 50
Holding pattern Stolt suffers weak end to the year 51
Gather the fleet Kirby leads in barge consolidation 52 News bulletin – tanks and logistics 55
INDUSTRIAL PACKAGING Out with the old Werit adds compact IBC 59
Packing a punch Looking forward to Industrial Pack 61 Listing of IBC manufacturers 62 News bulletin – industrial packaging 62
Join the gang Greif expands in Germany 65
Training courses 66 Conference diary 69
SAFETY Incident Log 70
Labelled with care Avery helps waste generators 72
Pressure points
NTSB warns on pressure tank repairs 74
Driving directions
Upcoming revisions to ADR 76
Round trip ticket RID experts start on 2021 text 84
Not otherwise specified 88
NEXT MONTH Road tanker manufacturing Chemical tanker fleet review
Middle East chemical distribution Safety in container shipping
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“Bulk chemical storage results soar,” shouted the cover of HCB thirty years ago – and there was plenty to back that up inside the magazine. Bulk liquids terminal operators had just enjoyed a bumper year, buoyed by strong economic and chemical industry performance that led to tank utilisation rates of 85 per cent or more.
Since then, there have been plenty of similarly good times for the bulk storage sector, a business that often does well against the cycle that other sectors are trapped in. And in 1989 that was certainly the case, despite moves in the supply chain – such as the rise of just-intime deliveries – that actually worked against the business.
Nevertheless, we were able in 1989 to report on some big developments, not least the first (!) independent chemical terminal in Malaysia, which was due for commissioning by Fima-Unitank in the middle of the year. We said at the time that attention was likely to move away from the established hub of Singapore to other parts of Asia, “with the nascent chemical industries in Thailand, Indonesia and China likely to be requiring the product balancing services offered by third-party tank farms”. If only we had known then how big the level of demand would be.
Despite – or perhaps, rather, because of – that level of success, reading through the items included in the March 1989 issue often raises the question: “Where are they now?” The terminals are still there, or almost all of them, but many of the names may be unfamiliar to younger readers: PetroUnited, General Tank Storage, Matex, Gebr Broere, Simon Storage, Unitank, Powll Duffryn, Paktank, GATX, Panocean… It is something of a relief to come across Oiltanking, Stolthaven, Tepsa and a few others.
Elsewhere in the March 1989 issue, we reported on progress with the development of the new ADN regulations, covering the transport of dangerous goods by inland waterway in Europe. While there had been for some time a set of rules for navigation on the Rhine – ADNR – the completion of the Rhine-Danube canal had encouraged Hungary and other states (as well as the Danube Commission) to support a panEuropean document.
The new ADN regulations were to be based primarily on RID and ADR and it is salutary to recall that it was only in 1988 that Europe’s regulators were beginning to accept the UN system for ‘not otherwise specified’ entries; these were to be included in ADN from the beginning, while the RID/ADR experts had only just accepted them in principle.
There was also a lengthy article on the wreck of the Cason in north-west Spain in December 1987. The vessel had left Antwerp with a mixed cargo of containerised goods and drummed chemicals; it ran into heavy weather near Cape Finisterre and fire broke out in its cargo. The crew evacuated to lifeboats but only eight of the 31-man crew were rescued.
Despite the best efforts of salvage tugs, the stricken Cason was blown onto the rocks. Initially, responders had little idea of the cargo of the ship but were provided within a few hours with a full manifest and a detailed stowage diagram – something that seems beyond containership operators these days. Indeed, the story of how the cargo was removed provides a lesson for those responding to containership fires today.
What is in store for us this year? Can we predict what will happen? Yes we can, and no we can’t would be the right answer.
As I wrote some columns ago, when we want to predict the future, we become Cassandras. She was able to foresee what would be happening merely by looking at all the facts, the circumstances, information, capabilities and intentions – but she was inevitably ignored.
Our industry can also foresee that its operations and manufacturing systems can be maximally controlled by using ‘all’ information, i.e. by feedback.
Training and education is what I do. I have always been very interested in companies and their employees who are somehow unwilling to read and therefore also unwilling to learn. They are making the same errors over and over, because facts are easily forgotten, overlooked or purposefully ignored because they hinder a pre-set goal.
Training and constant learning are therefore requisites for any organisation or person. Norbert Wiener, the founder of the science of cybernetics, put it this way: “Feedback is a method of controlling a system (your organisation, but also yourself) by re-inserting into it the results of its past performance. We then have a process which we may call ‘learning’.”
Those of you who have been reading my columns and blog will know that all I want to show and prove is that, by learning, one can become adaptive to all new situations. There is a saying, “a wise man comes prepared”. A wise man or woman, who is open to new
things and new situations and who is willing to listen, will always have an advantage as he or she will know more and have more information by which to govern themselves or their organisation.
When I train people I tell them that human beings, as living systems, are innate learners. But no one will ever know everything – that is impossible in a creative, self-learning, self-maintaining and ever-evolving universe. I tell them that their bodies and minds are always learning from their environment, through interactions and by conversation, because if they did not they would not be sitting in my class.
I teach by learning from them, rather than telling them how things are done. I ask them: how would they do those things? I don’t teach them as students or pupils but as learners, and explain that we are all just trainees, learning how to live and how to stay alive. I compare the one who reads the manual for safe operations with the one who has not read it.
So, I do tell them: please read the manuals, guidelines, instructions. Collect all information before you start working with complex equipment or perform risky operations.
I have trained hundreds of loading masters to date, but what I have noticed is that few have read the manuals, because no one told them to do so – or maybe they just weren’t listening.
This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.
“We are excited that we have been able to announce significant expansion projects in the last years, meeting new consumer demands,” Hoekstra continues. “The execution of this strategy is leading to a further shift in our portfolio towards industrial terminals and terminals for chemicals, LNG, LPG and chemical gases. Expansion projects in these areas are currently underway in Malaysia, Indonesia, Canada, Brazil and the Netherlands.
“One more reason for excitement is the progress that we have made in our digital transformation. Our new unique cloud-based digital terminal management system is now in place at the first terminals in Americas and Asia. We strengthened our cybersecurity program. We believe that our digital transformation is key to growing our competitive edge and capturing the opportunities of the digital era,” Hoekstra concludes.
That renewed interest in developing industrial terminals is evidenced by some of the new projects announced by Vopak over the past year. It will, for instance, expand the Botlek terminal in Rotterdam with an additional 63,000 m³ of storage capacity in 15 stainless steel tanks to handle styrene and other chemicals; it has a 50,000-m³ expansion planned for the chemical terminal in Merak, Indonesia that will take capacity there up to 131,000 m³; and it is to build a new jetty at the Linkeroever terminal in Antwerp to cope with future growth.
AFTER A YEAR when changes in the market encouraged it to revisit its strategic plan, Vopak has recorded a 4 per cent drop in revenues and EBITDA excluding exceptional items. Revenues fell to €1.25bn and group operating profit was off by 6 per cent at €463.3m.
The drop in revenues was mainly due to currency translation effects, but oil market conditions also played a part, with utilisation down at the company’s main oil hub terminals. Overall tank occupancy slipped from 90 per cent in 2017 to 86 per cent for 2018 as a whole.
Vopak’s global storage capacity increased by 1.1m m³ over the course of 2018 to reach 37.0m m³ and a further 2.1m m³ is due to be added during 2019.
“Given the market conditions in 2018, we delivered solid financial results and increased earnings per share by remaining focused on business opportunities,” says CEO Eelco Hoekstra. “The execution of our strategy is well on track. To meet the increasing global demand for the products we store, we made significant progress in shifting the portfolio and realising our digital transformation.
At the same time, Vopak is alert to global developments. The impending introduction of the International Maritime Organisation’s (IMO) global sulphur cap on marine fuels has led it to plan a 67,000-m³ expansion of the Sebarok terminal in Singapore to cater for marine gasoil, and is investing in the Europoort terminal in Rotterdam, supported by customer commitments, to handle low-sulphur fuel oil. Financial and political problems in Venezuela have led it to deconsolidate its wholly owned terminal in Puerto Cabello, in recognition that it has no control from an accounting perspective.
Vopak has also been active in the gases sectors, with plans to invest in a new LPG import and distribution terminal in Richards Bay, South Africa in partnership with its local partner Reatile; and a 9,200-m³ expansion of »
the Vlissingen terminal in the Netherlands to serve the regional market for LPG and chemical gases. In LNG, Vopak has completed its previously announced plan to take an initial 29 per cent share in the Engro Elengy LNG terminal in Pakistan, sited next to its existing joint-venture liquids terminal. It has also taken positions in joint-venture LNG import projects in Germany and China.
Since the end of 2018, more plans have been announced. Vopak has boosted its shareholding in Engro Elengy to 44 per cent; it has also taken an additional 46 per cent share in Vopak Terminal Ningbo in China, making it the controlling shareholder. And the release of its 2018 financial results was accompanied by the announcement of plans to add 20,000 m³ of storage for chemicals at its terminal in Vietnam, for startup in first quarter 2020, and a 110,000-m³ expansion of the Veracruz terminal in Mexico to handle clean petroleum products. The Veracruz project already has a high level of commercial coverage and is expected to be in service late in 2020.
Finally, in a novel move, Vopak is planning to join with Whitehelm Capital and Groningen
Seaports to build a 27-MW solar photovoltaic park adjacent to its Eemshaven terminal. The facility will provide electricity for Vopak, local consumers in Groningen and the wider power grid, and is expected to be in operation in 2020.
Vopak’s Europe & Africa division was affected by the “less favourable oil market structure”, with overall occupancy dropping from 91 per cent in 2017 to 85 per cent. This was partly offset by higher revenues at its chemical and vegoil terminals in the AmsterdamRotterdam-Antwerp (ARA) range. Revenues for the division were down 3 per cent at €626.1m while, excluding exceptional items, EBITDA fell 7 per cent to €302.8m
Revenues for the Asia & Middle East division were impacted by negative currency movements as well as weakness in Singapore’s oil terminals. Occupancy rates declined from 91 per cent in 2017 to 86 per cent, revenue was down 8 per cent at €312.9m and, excluding exceptional items, EBITDA fell 9 per cent to €256m.
The small China & North Asia division performed more strongly, with revenues up 10 per cent at €33.2m and EBITDA, excluding exceptional items, up by 130 per cent at €53.4m. Occupancy rate improved from 70 per cent in 2017 to 75 per cent. Much of the
improvement was due to the resumption of normal activities at the Haiteng terminal in China in June 2018.
The Americas division posted a 2 per cent drop in revenues to €281.3m, although that included a negative currency translation effect of €17.9m, absent which there would have been a 4.3 per cent increase. EBITDA, excluding exceptional items, fell 1 per cent to €129.0m, although again, taking out the negative currency effects, this would have been up by 6.4 per cent. Occupancy rates were flat at 89 per cent.
Vopak’s developing LNG division recorded an EBITDA increase of 5 per cent to €34.9m, primarily due to improved results at its jointventure facilities.
Vopak says that, in light of its expansion programme over 2018 and 2019 and with high commercial coverage, and in conjunction with its cost efficiency programme, it has the potential to “significantly improve” EBITDA in 2019 – subject to market conditions and currency exchange movements.
Eelco Hoekstra comments: “For 2019 and beyond, we continue to focus on delivery of short-term performance and seizing longterm opportunities, delivering value today and creating value for tomorrow for all stakeholders. We take pride in storing vital products with care for a growing world population.” HCB www.vopak.com
MIDSTREAM • MAKING SURE THE RIGHT ASSETS ARE IN THE RIGHT PLACE IS KEY TO PROFITABILITY IN THE US OIL AND GAS PATCH, AS 2018’S FINANCIAL RESULTS ILLUSTRATE
FINANCIAL RESULTS REPORTED by many of the midstream operators in the US lately have indicated that 2018 was something of a turbulent year, with “volatility in the energy space”, as Magellan Mistream Partners put it. And it is also difficult to compare performance directly with that in 2017, a year that was marked by hurricane damage and a one-off tax bonus, while many operators have bought and sold assets, received drop-downs from their sponsoring entity or, more recently, engaged in merger and acquisition activity. Indeed, it is perhaps indicative of the state of the market that late 2018 has seen some moves in terms of ownership. Many of the midstream operators are established on master limited partnership lines, with the beneficial treatment they receive in terms of taxation being a major draw for investment funds looking for reliable returns. It is in the
nature of that relationship that those funds will, at certain times in the cycle, look to cash in on their investments or, conversely, make new investments.
So it has been in recent months. Buckeye Partners has completed the sale of its 50 per cent interest in VTTI to its partner Vitol and IFM Investors, and plans to use the cash proceeds of $975m to pay down debt.
Announcing the completion of the deal, Buckeye’s chairman, president and CEO Clark C Smith said: “The closing of this transaction represents the final step in our announced strategic review. The completion of these actions will serve to improve Buckeye’s financial flexibility, which, along with our advantaged portfolio of pipeline and terminal assets and attractive growth opportunities, are expected to provide attractive long-term returns for our unitholders.”
NuStar Energy, meanwhile, sold its European operations to Inter Terminals, the storage subsidiary of Canada-based Inter Pipeline, for $270m. Speaking at the closing of the deal at the end of November 2018, NuStar president/CEO Brad Barron said: “This was a very important strategic decision for NuStar but also a difficult one given the quality of the assets and workforce. But as we have said, the assets were not synergistic with our other operations, and the sale helps us achieve the final component of our comprehensive plan launched earlier this year to position NuStar for long-term success by significantly lowering our debt metrics in order to deliver strong, sustainable distribution coverage for the future.”
Another ongoing sale involves the intended purchase by an affiliate of ArcLight Energy Partners of American Midstream Partners. The deal has been on the table since late September 2018 but, as this issue of HCB went to press, had not yet closed. ArcLight amended its offer in early January 2019 to reflect the sale by American Mistream of its two refined products terminals in Caddo Mills, Texas and North Little Rock, Arkansas to Sunoco, which generated some $125m in cash.
A more recent move involves Blackstone Infrastructure Partners, which at the end of January 2019 made an offer to acquire Tallgrass Energy’s general partner and a 44 per cent interest in Tallgrass Energy itself, for approximately $3.3bn. The selling parties are Kelso & Co, The Energy & Minerals Group (EMG), and Tallgrass KC LLC, an entity owned by some members of management; on the buying side, GIC, Singapore’s sovereign wealth fund, is to take a minority share.
Speaking at the time of the announcement, Tallgrass president/CEO David G Dehaemers Jr said: “Blackstone’s scale, long-term capital, and investment expertise across the energy industry make it an ideal partner for our business as we continue to create value and invest capital in accretive growth opportunities. We appreciate the successful partnership we have had with Kelso and EMG since 2012 and thank them for their significant support. We look forward to working with
Blackstone to continue maximising value for all stakeholders.”
“This transaction represents a rare opportunity to invest in a large-scale US midstream infrastructure platform that connects high-production supply basins to key markets and is underpinned by long-term contracts,” said Sean Klimczak, global head of infrastructure at Blackstone. “We are excited to partner with and to support the established Tallgrass management team over the long term as they execute on their robust backlog of attractive growth projects.”
Looking more closely at operational matters in terms of tank storage, a number of midstream operators have been expanding terminalling and loading capacity at their marine facilities, especially in the Houston area. In January, for instance, Moda Mistream successfully commissioned an upgrade at the Moda Ingleside Energy Center (MIEC) to allow VLCCs to load. “With commissioning of our upgrades to Berth 2A, we now have the US Gulf Coast’s most efficient crude export loading rates,” says Bo McCall, Moda’s president/CEO. “The combination of our enhanced loading rates, short transit times to the Gulf of Mexico and minimal port congestion allows us to provide our customers unmatched vessel turnaround times.” Moda is continuing to build out MIEC, with more dock space planned; it will be able to take advantage of the Corpus Christi Ship Channel Improvement Project, which will involve deepening the draught in the waterway, allowing VLCCs to load more cargo. Moda has also begun construction of an additional 10m bbl (1.6m m³) of tank storage for crude oil and a new manifold and interterminal piping to allow MIEC to receive direct ‘basin to berth’ deliveries via long-haul crude pipelines from the Permian and Eagle Ford production areas.
Magellan Midstream has put the first phase of its joint-venture marine terminal in Pasadena into operation; it has opened with 1m bbl of tank capacity and a dock capable of handling Panamax tankers. Work is continuing to add another 4m bbl of storage and an Aframax dock, which are due in service by the end of the year.
Enterprise Products Partners, meanwhile, expects to put its new ethylene export terminal on the Houston Ship Channel into service this year.
Each of the midstream operators takes its own approach to the business; while there is a lot of current activity in enhancing the capacity for crude oil exports, for instance, many companies are focused more on NGL gathering and fractionation activities, while others tend to specialise in specific activities or products. Comparing financial results is, therefore, not straightforward, nor does it provide any meaningful analysis.
However, it is notable that – at least in adjusted EBITDA terms, which are probably the most useful given the various changes in assets bases over the past year – most had a reasonably good 2018. Plains All American
Pipeline, for instance, saw adjusted EBITDA rise from $2.08bn in 2017 to $2.68bn, reflecting “solid execution of our business plan”, according to CEO Willie Chiang.
Enterprise Products Partners, meanwhile, posted adjusted EBITDA for 2018 of $7.22bn, a 28.6 per cent increase over the $5.62bn recorded in 2017. “All of our business segments reported operational records,” notes CEO Jim Teague. “Compared to 2017, liquid pipeline volumes increased 9 per cent; natural gas pipeline volumes increased 12 per cent; marine terminal volumes increased 12 per cent; NGL fractionation volumes increased 14 per cent; and propylene plant production volumes increased 23 per cent. This volume growth combined with higher natural gas processing and marketing margins led to record gross operating margin for each of our business segments.”
And even with the volatility in the market, Magellan Midstream pushed adjusted EBITDA up from $1.30bn in 2017 to $1.40bn, with its forecast for 2019 further growth to $1.43bn. Whatever problems the midstream sector faces, it seems that there is still plenty of money to be made getting product to market. HCB
FOR INTER TERMINALS, 2018 marked another year of growth and development, with a number of projects across the company’s existing European storage network and the addition of NuStar’s European terminal network. This exciting acquisition establishes Inter Terminals as the largest independent storage operator in the UK and increases overall storage capacity by approximately 33 per cent.
Last year also saw the completion of the largest organic development project for a decade at Inter Terminals’ Seal Sands terminal on England’s east coast. New tanks and pipeline links have been constructed to meet contracted demand for chemical storage at the terminal, which has developed specialist expertise in storing and handling a wide range of chemicals, many of which have distinct storage requirements.
The project at Seal Sands included the construction of two 7,000-m³ mild steel tanks with internal floating roofs and a dedicated import pipeline for receiving product into storage from seagoing tankers. In addition, an existing cross-country pipeline has been redeveloped to allow the direct transfer of stored product to nearby chemical manufacturing plants. A further three mild steel tanks, with a total capacity of 13,000 m³, have also been built at the terminal, together with interconnecting infrastructure, to enable the export of product by sea and by road via a new tanker loading facility.
The extensive design and build programme at Seal Sands was project-managed by Inter Terminals’ own engineering division, which has a wealth of experience in the design and implementation of projects to construct, upgrade and expand capacity within its own terminals and at customers’ facilities.
Seal Sands occupies a prime location on the River Tees and provides easy access by road and direct pipeline to the region’s major petrochemical and industrial complexes, as well as excellent sea connections via two jetties. The investment at Seal Sands demonstrates Inter Terminals’ commitment to working closely with customers to identify and develop solutions for specific product storage and handling requirements. A fascinating time-lapse video can be found on the company’s website, capturing the construction of the new tanks at Seals Sands from the ground up.
Inter Terminals’ investment at Seal Sands forms part of a continuous programme of asset integrity management and development across the company’s European storage network to ensure facilities meet the needs of current and future operational capacity.
Other recently completed projects include the refurbishment and strengthening of two piers at the company’s Gulfhavn Oil Terminal (GOT) in Denmark. Located in a prime position in the Danish Straits on the route in and out of the Baltic Sea, GOT offers build-bulk, breakbulk, ship-to-ship and contango logistics for the international movement of oil products within Europe and beyond. »
Inter Terminals is also taking a proactive approach to meeting demand for convenient and competitive low-sulphur fuel bunkering ahead of the International Maritime Organisation’s (IMO) new 0.5 per cent global limit for the sulphur content of ships’ fuel from 1 January 2020, the so-called ‘IMO 2020’ rule. The new regulations are part of continuing efforts to reduce air pollution from shipping and should have major health and environmental benefits, particularly for those living close to ports and coastal areas.
Inter Terminals has a comprehensive range of terminal locations with flexible and adaptable storage facilities capable of handling multiple products and grades, including low-sulphur fuels required to comply with IMO 2020. In addition, terminal infrastructure at certain locations is connected with nearby refineries, offering the potential for low-sulphur marine fuels to be blended or transferred directly into dedicated storage at Inter Terminals’ facilities.
The company’s terminal at the Swedish port of Göteborg is particularly well placed to provide IMO 2020-compliant low-sulphur marine fuel blending and bunkering to new and existing customers. Occupying a strategic location on an active transit channel for large fuel oil flows and
with a range of tank capacities and technical expertise, the terminal has a significant advantage in this developing market.
According to some industry estimates the new 0.5 per cent global cap for sulphur content will affect approximately 75 per cent of global marine fuel demand. The sulphur limit for ships operating in the existing Emission Control Areas, established by the IMO in 2015, will remain at 0.1 per cent. IMO 2020 is coming and Inter Terminals says that it has the locations, necessary skills, and infrastructure to provide convenient, cost-effective and compliant storage solutions to all shipping sectors.
In October 2018, Inter Terminals announced the acquisition of NuStar Energy’s European bulk liquid storage business (NuStar Europe). The transaction provides an attractive entry into the Port of Amsterdam, the world’s largest gasoline blending hub, which has experienced significant storage growth over the years.
NuStar Europe’s network consists of seven coastal terminals with an aggregate storage capacity of 9.1m bbl (1.45m m³). One terminal is located in Amsterdam, Netherlands with the remaining facilities located in the UK near London and at Runcorn, Eastham, Grangemouth, Clydebank and Belfast.
The acquisition adds a high-quality, modern asset base of 321 tanks to Inter Terminals’ existing European storage network. Serving a diversified customer base, all terminals are strategically located along key waterways with proximity to large metropolitan areas, an important competitive advantage. Looking ahead to 2019 and beyond, there is the potential for strong integration synergies with Inter Terminals’ existing terminals in the UK, resulting in enhanced product storage and custom blending for customers.
Inter Terminals Ltd is a wholly owned subsidiary of Inter Pipeline Ltd. which operates a diversified portfolio of energy infrastructure assets in western Canada, as well as the terminal network in the UK, Ireland, Denmark, Germany and Sweden. Inter Terminals has a combined bulk liquid storage capacity of around 5.8m m3 in 23 wholly owned multi-product terminals, which provide comprehensive storage and handling solutions for the oil, chemical, and biofuel markets.
These activities are complemented with a wide range of services for the general chemical, food, agricultural and pharmaceutical sectors, as well as considerable expertise in the handling and management of technical wastes. HCB www.interterminals.com
STOCEXPO EUROPE CELEBRATES its 15th anniversary this year, sealing its position as the leading event for the bulk liquids storage sector in Europe. The three-day conference and exhibition will take place once again at the Ahoy centre in Rotterdam from 26 to 28 March. The event, which is expected to attract more than 3,000 visitors, will play host to upwards of 200 exhibitors and more than 140 conference delegates from across Europe.
While the casual visitor will be immediately stuck by the size of the exhibition area and the
efforts that exhibitors have taken to attract passing trade, StocExpo has in recent years upped its game as far as the associated conference is concerned.
Over the course of three days, speakers will look at market trends, the transition to a low-carbon economy, digitisation and cyber-security risks, and a focus on terminal activities in the US. Sessions will be chaired by Ellen Ruhotas, managing director of Zenith Terminals, on the first day and by commodity analyst Jan Edelmann on the other two
days. Worth getting out of bed for will be the keynote presentation on the second day, featuring motivational speaker Steven van Belleghem, who promises to look into the future and give some tips on staying ahead of the competition in a world of artificial intelligence, robots and automation.
The first day of the conference will drill down into the fundamentals impacting the markets for chemicals and petroleum products and what those trends mean for bulk liquids terminal operators. Andy Inglis, principal of Nexant, Energy and Chemicals Advisory, will give a presentation on the current outlook for refined products and a petrochemicals, assessing the impact on demand for tank storage, while taking account of the rise of electric vehicles, the current market backwardation and broader geopolitical issues.
Elswhere on the first day, Jean-Baptiste Renard, CEO of 2PR Consulting, will look at how oil majors are adapting in the new energy environment and what that means for tank storage, and Frank Schaper, director of the German Tank Storage Association, UTV, will give an overview of the structure of the German storage sector. Pete Harrison, executive director, EU policy, at the European Climate Foundation, will discuss how the low energy carbon transition impacts the oil and petrochemical markets. Harrison’s presentation will look at the research undertaken on transport trends in the EU in four main automotive markets: Germany, Poland, France and the UK. A large focus will be paid to electric vehicles and how they contribute to meeting the EU’s climate goals, as well as the impact of the shift from imported oil to domestically produced electricity and hydrogen.
After lunch, a series of case studies will look at particular aspects of the business, beginning with Mike van Croonenburg, director of Alpha Terminals, who will examine how his company – currently engaged in building a greenfield terminal development in Vlissingen – is planning for growth in a world where sustainability is key. Mark Williams, managing director of Shipping Strategy, will look in particular at the International Maritime
Organisation’s (IMO) impending sulphur cap on marine fuels and what that means for terminal operators.
Day two of the conference will focus on ‘the terminal of tomorrow’ with Matthew Hudson, a terminal manager for Shell, looking at how terminals can deploy new technologies in practice. An important factor to consider for the connected terminal is cyber-security and Ilya Tillekens and Marcel Jutte from Hudson Cybertec will be on hand to help with some practical advice. And, as StocExpo will be in Rotterdam and the Port of Rotterdam is at the forefront of digital implementation, Ronald Backers will explain how the port’s efforts are transforming the operational environment for all users.
Other speakers lined up to add their expertise to the discussion include Wilfried Kleiser, senior project manager at Siemens, and Frank Miksicek, systems engineer at
Honeywell. An interesting panel session involving many of the day’s speakers will address the question: how to future-proof the tank storage sector.
The third and final day, which is due to end early, will focus on learning from international markets. Kathryn Clay, president of the International Liquids Terminals Association (ILTA) will give an overview of the tank storage sector in the US, followed by a case study from Jeff Dewar, senior vice-president Americas at LBC Tank Terminals, who will look at the current US storage boom and consider how long that will last. Also on the agenda are Peter Davidson, executive director of the UK Tank Storage Association (TSA) and Andy Stanley, director of RAS, who will talk about safety leadership in the tank storage industry.
Alongside the conference, more than 200 exhibitors from around the world will be displaying their wares and their services to the industry, making the 2019 event the biggest yet. Many exhibitors, including Endress+Hauser, Emerson, CEA Systems, J de Jonge, Matrix Applied Technologies, Verwater and CTS Group, will be using StocExpo Europe 2019 as the place to showcase their latest innovations, launch new technologies and products, or
to make major announcements to a captive international audience.
Westmark, producer of CableSafe safety hooks, will be previewing its new CableSafe cable stand, used to suspend cables off the work floor during maintenance. With slips, trips and falls accounting for the majority of accidents in the industry, CableSafe hooks and stands offer a simple, cost-effective solution. The stands are free-standing and height adjustable up to 2.5-m, and are coated with a ‘safety yellow’ for high visibility. Keeping walkways and work areas free of dangerous obstructions is key to safety and good housekeeping, and the new cable stand will complement the ‘S’ shaped safety hook that the company introduced in 1995 and is now the industry’s most widely used solution for suspending hoses and cables.
Also focusing on safety, Atex Industries, a specialist in ATEX-certified lighting solutions, will be exhibiting its Opti-light rechargeable, portable ATEX work light. The LED floodlight, which has an operating time of eight hours, has a maximum brightness of 3,200 lumen and can be used in maintenance, inspection and construction work. Due to its rechargeable battery, the work light can also be utilised in case of emergency, with no power supply, cables or transformers required.
Implico, a market leader for terminal management systems, will be exhibiting OpenTAS, its best practice solutions for the tank farm sector. OpenTAS is the terminal management system with the widest range of functions and the tightest ERP and SAP integration on the market, according to the company. The centrepiece of OpenTAS is the Navigator, which steers all logistics operations in a tank farm.
During StocExpo, Implico will present the latest stage in the evolution of this processoriented software, as well as the company’s SAP downstream solutions, SAP secondary distribution management for oil and gas, and SAP retail fuel network operations. Implico will also be exhibiting the TCP-X-Unit, an intelligent handheld IT solution that helps tank storage operators to automate key work steps without the need to replace entire IT landscapes. HCB www.stocexpo.com
The company currently operates terminals on the Chemistry Park in Delfzijl as well as Farmsum in the Netherlands, and in Emden, Germany. Both the Delfzijl and Emden sites are suitable for larger scale tank storage, while Farmsum has smaller tanks but offers more facilities such as drumming and adjacent warehousing for hazardous goods.
At the Farmsum facility, all tanks can be heated and provided with nitrogen blanketing, circulation or mixing equipment. In addition, material can be filled directly from the tanks into intermediate bulk containers (IBCs) and drums, giving its customers added flexibility. In addition, JPB has the capability to arrange the distribution of products to their required destinations, giving its customers ‘the total package’.
TANK STORAGE IN western Europe is synonymous with the Amsterdam-RotterdamAntwerp (ARA) region but, as many customers are finding out, capacity constrains and growing road and port congestion are encouraging them to look elsewhere. Other terminals outside of the ARA region are beginning to come forward as viable alternatives and one company working hard to help bring to life such alternatives is JPB Logistics.
The family-owned logistics company, based in the Netherlands and Germany,
TANKS • JPB LOGISTICS IS OFFERING SERVICES TO RIVAL THAT OF THE ARA REGION, PROVIDING BESPOKE TANK STORAGE SOLUTIONS FOR COMPANIES IN WESTERN EUROPE offers customer-specific and bespoke tank storage solutions for hazardous, nonhazardous and food products. “Typically, our clients are companies experiencing difficulties in finding volume for liquid bulk in Amsterdam, Rotterdam and Antwerp,” says Stephan Oldenburger, commercial director at JPB Logistics. “We want to form the solution to problems that ARA doesn’t solve. By focusing on our customers’ needs, we’ve grown from a small, local tank storage provider with 5,000 m³ of total storage, to a full service provider with three terminals, with currently more than 140,000 m³ of total storage capacity and enough land to grow to 430,000 m³. We are also comfortable with building outside of our own terminals and even starting new ones upon request.”
The most important thing that connects all of JPB’s customers is long-term vision. “Our customers choose us because we offer custom-built and project-based tank storage for both larger and smaller quantities,” says Oldenburger. “By building or adding options to fit the project, our clients get exactly what they need. This is of course something that we have to do in order to be able to compete with the ARA region. We have to give our customers something extra. And we’ve become very good at just that: adding value.”
Recently, JPB Logistics has built two 1,000-m³ storage tanks for a customer in northern Germany, where JPB managed the project from start to finish, meaning that it was responsible for obtaining the required permits, building the tanks and corresponding pipelines and connecting the two tanks to the existing infrastructure. Additionally, on the company’s existing terminal, the company has built four storage tanks with a capacity of 7,000 m³ each, designed for the storage of bitumen for one of the company’s customers.
Established in 2001, JPB logistics offers financing and leasing, assistance with licensing procedures and comprehensive project management. According to Oldenburger, JPB plans to expand with an additional five tanks at its Chemistry Park site, in addition to an expansion in Germany from 30,000 m³ to 300,000 m³. HCB www.jpbgroep.nl/tanks
EDDYFI TECHNOLOGIES, A world leader in advanced non-destructive testing (NDT) technologies based in Quebec, has acquired Inuktun, a well-known developer and manufacturer of remotely operated crawlers and camera systems. This acquisition marks the sixth for Eddyfi in the past 32 months.
Headquartered in Nanaimo, British Columbia, Inuktun offers robotic systems that bridge the gap between NDT inspectors and the physical world, helping customers ‘see
the unseen’ and safely go beyond physical inspection limitations. With 30 years of industry experience, the company has 70 employees and office locations in Houston, Texas and significant presence with partners in Aberdeen, Scotland and Perth, Australia.
“For several years now, we’ve been looking to partner with NDT companies that can help advance the capabilities of our products,” says Colin Dobell, president and CEO of Inuktun. “This transaction links us with one of the best. Our systems and technology are suitable to many of Eddyfi Technologies’ current customers and the combination of the two companies will strengthen our position as an industry leader and allow us to offer truly
unique solutions by combining some of the industry’s best NDT products with our mobile robotic solutions. The future opportunities are seemingly endless. It’s very exciting.’’
The acquisition benefits Eddyfi’s technology portfolio, enlarges its customer base, broadens the possibilities for synergies and product development, and adds a team of talented and world-class NDT inspection experts to the group. “We are very happy to welcome Colin and the innovative people of Inuktun to Eddyfi Technologies,” says Martin Thériault, president and CEO of Eddyfi. “Their high-quality products, together with their expertise and the standards they established in the industry, further complement our company. We are making a significant bet that the combination of Inuktun robots with our sensors and instruments will meet the increasing needs from asset owners. Customers can now select from a range of standard Inuktun crawlers, cameras and controllers to create their own off-the-shelf, yet customised, solutions.’’
Sales and service for Inuktun systems, training, product rentals, equipment calibration and repair, as well as support services will now be provided by the enlarged Eddyfi Technologies team. All Inuktun staff will join Eddyfi, with those in the US relocating to Eddyfi’s offices in Houston.
Eddyfi Technologies, established in 2009, pursues the goal of “developing eddy-current array technology to its full potential”. Today, the company provides what it says are the most advanced NDT technologies in the world, helping OEMs, asset owners and service companies enhance productivity, save lives and protect the environment. The company’s mission is to push the limits of advanced NDT to new heights by featuring various NDT modalities and investing massively in product advancement.
In 2014, Eddyfi was recognised as being the emerging company of the year in the field of NDT equipment by Frost & Sullivan. In 2016, the company’s pulsed eddy current solution Lyft® was awarded the Global New Product Innovation Award, again by Frost & Sullivan. HCB www.eddyfi.com
• More environmentally friendly The MK7 system uses 0.5-litre capacity samplers and is based on two-inch (50-mm) connections.
The MK10 four-inch (102-mm) system uses 1-litre capacity samplers or optional bottle cage sampling and is provided with flange connection, as required. The MK14 five-inch (127-mm) system uses 1-litre glass bottles in special cages enabling universal sampling and is provided with flange connection, as required.
CONTAMINATED OR ‘OFF-SPEC’ liquid cargoes are a perennial problem for oil tankers and terminals. The source of such a problem can vary, with contamination occurring anywhere from the shore tank at the load port to the shore pipeline during loading or on board the vessel itself. When cargo is found to be off-spec on arrival at the discharge port, the vessel could face a claim if no evidence of contamination from the loading port is available to present. Understandably, this can be very frustrating and has led to shipowners and terminals seeking defences against such claims, usually in the form of samples. UK Sampling Gauges Ltd is a leading manufacturer of sampling equipment for liquids. Extra attention has been paid to enable reliable, accurate sampling, such as spot, running, all-level and bottom. In particular, its running samplers (RNS versions) and all-level samplers have data proving their superior accuracy and reliability compared with conventional systems. Hence, they enjoy strong support from oil companies’ oil loss departments.
The company offers three closed sampling systems in order to meet industry applications and requirements. All of these have the following unique features:
• Stainless steel tapes (tested up to 175 kg)
• Mechanical counter enabling constant reading of sampler depth
• Samples transferred through a special spout without sample contamination
• Unique sampler design enables MK10 and 14 systems to use samplers fitted
with bottles that achieve better results than manual sampling, without sample decanting, thus the standard is maintained even in closed conditions
• During sampler retrieval, ‘fall-out’ cannot enter the sampler
• Incredible accuracy and reliability
• The unique bottom sampler ensures oil/ water interface sampling, even at depths of 1-2 cm of water
• Highly secure and safe sampler/tape connection
• Ergonomic winding systems are more operator-friendly
All of UK Sampling Gauges’ equipment has been tested in the field and shows that no gas is emitted into the atmosphere when compared to conventional sampling equipment. The company has stated its aim is to ensure that the accuracy of its sampling equipment remains of the highest standard for its customers.
The company will be showcasing its latest closed sampling range at this year’s StocExpo exhibition and conference in Rotterdam this month, previewing the MK7, MK10 and MK14 range of equipment. Each system – including samplers and adaptors – benefits from ATEX and IECEx approval for use in potentially explosive atmospheres. HCB www.samplinggauges.com
Rubis Terminal has recorded revenues from bulk liquids storage activities of €146m for the full year 2018, down 16 per cent on the previous year. While there was strong demand for chemicals (up 16 per cent) in northern Europe and France, fuel-related revenue in France was down 9 per cent and the Dörtyol terminal in Turkey continued to suffer from an absence of trading activity and oil transit from northern Iraq.
Rubis says it experienced navigation problems on the Rhine in the latter part of the year, caused by unusually low water levels, which impacted activity at its sites in eastern France, although the local market for certain products – especially molasses and vegoils – was very strong. Fourth quarter revenue growth of 10 per cent at its Rotterdam and Antwerp (above) terminals reflects firm demand for petrochemicals, with occupancy rates close to 100 per cent and some contracts being extended. www.rubis.fr
Odfjell reports that it has completed the reorganisation of its terminals division, having acquired Lindsay Goldberg’s 12.25 per cent shareholding in the Noord Natie terminal in Antwerp and with Lindsay Goldberg now having agreed to sell its 49 per cent shareholding in Odfjell Terminals US to funds managed by Northleaf Capital Partners.
That deal is expected to close in the first half of the year, after which, Odfjell says, “we are then positioned to develop our US terminal portfolio further”. Odfjell notes that its Houston terminal is experiencing utilisation rates close to 100 per cent and it will be looking at various alternatives for expansion together with its new partner. “We are pleased to welcome a new partner in our US terminals that positions us to develop our US business,” says Kristian Mørch, CEO of Odfjell SE.
In its financial results for 2018, Odfjell Terminals recorded revenues of $91.0m, down from $110.8m in 2017, and EBITDA of $24.0m,
again down on 2017’s $38.4m, with both figures reflecting changes in ownership over the course of the year, most notably the sale of the Rotterdam terminal and its associated distillation unit. Odfjell also recognised a $10m impairment on its Tianjin terminal, which has been affected by slow development of the local market. www.odfjell.com
Hartree Partners and funds managed by Oaktree Capital Management have formed a company, Hartree Bulk Storage LLC, to invest in bulk liquids storage, terminalling and logistics projects. The company, with an initial equity commitment of up to $735m, intends to “capitalise on the strong global demand for bulk liquids storage infrastructure via mergers and acquisitions, greenfield projects and joint venture partnerships”.
Hartree and Oaktree have been working together in the midstream space since early 2015, when Oaktree purchased Hess Corp’s stake in Hess Energy Trading; the new entity builds on that deal and, the partners say, “provides a dedicated platform to take advantage of Hartree’s 20-plus years of experience in the oil and refined products markets by developing safe and reliable storage solutions that offer flexible, multimodal connectivity for its customers”.
“Hartree’s deep understanding of the energy supply chain and local market dynamics, coupled with its ability to identify future market trends, will guide the ability of Hartree Bulk Storage to provide superior connectivity and optionality to its customers,” says Guy Merison, Hartree’s co-founder. “Over the past two decades, Hartree has consistently utilised storage solutions for its trading business, and we believe that in partnership with Oaktree funds, Hartree Bulk Storage can develop a network of storage facilities with strategic importance to its customers.”
www.hartreepartners.com
Zenith Energy has acquired the Portland Terminal facility in Oregon from CorEnergy. Zenith had been leasing the site, which CorEnergy bought in 2014, and has held an option to buy it since February 2017. It has 84 storage tanks with a total capacity of some 1.5m bbl and acts as a rail/marine transloading facility.
CorEnergy acquired the Portland facility for $42m and has since invested $10m to improve the asset; Zenith is said to be paying $61m for the Portland terminal, as well as CorEnergy’s remaining interest in the Joliet terminal in Illinois, in which Zenith is the major shareholder. “With the funds we are receiving, CorEnergy expects to invest in another asset in 2019,” says CorEnergy CEO/president Dave Schulte. www.corenergy.reit
Texas COLT, a proposed joint venture between Enbridge, Kinder Morgan and Oiltanking, has submitted an application to the US Maritime Administration to construct and operate a deepwater crude oil export port located off the coast of Freeport, Texas.
The project includes an offshore platform and two offshore loading single point mooring buoys capable of fully loading a VLCC in 24 hours; it will also have an onshore tank terminal with storage capacity of up to 15m bbl (2,4m m3). The partners envisage the facility being in service in 2022. www.kindermorgan.com
Phillips 66 reports that, during the fourth quarter of 2018, it completed construction of 1.3m bbl (206,700 m3) of crude oil storage capacity at its Beaumont terminal in Texas,
taking total capacity to 14.6m bbl (2.3m m3). The company plans to put a further 2.2m bbl (350,000 m3) in service in early 2020.
In addition, Phillips 66 has a 25 per cent interest in the South Texas Gateway terminal under development by Buckeye Partners in Corpus Christi. The facility will have two deepwater docks and storage capacity of 6.5m to 7.0m bbl (1.0 to 1.1m m3); it is expected to open by mid-2020. www.phillips66.com
Pin Oak Corpus Christi has closed the acquisition of Gravity Midstream Corpus Christi LLC from EnCap Flatrock Midstream. Equity financing for the deal came from Pin Oak’s owners, Dauphine Midstream and Mercuria Energy Group. The assets include an operational terminal with 737,500 bbl (117,250 m3) of storage, a crude processing unit, an
asphalt plant, rail loading/unloading and truck rack facilities, access to Aframax and barge docks and pipeline connections to nearby refineries.
“With this investment, Pin Oak Corpus Christi will be able to operate and develop an independent logistics hub in Corpus Christi,” says Dauphine’s chief investment officer Harris Ziskroit. “The site is optimally located and has tremendous potential to become one of the only multimodal terminal facilities in Corpus Christi, offering a wide array of service offerings to move, store and process petroleum products.”
Now renamed Pin Oak Corpus Christi LLC (Potac), the facility has signed a ten-year exclusive use agreement with the Port of Corpus Christi, which will allow it to berth tankers up to Suezmax size at Public Oil Dock 14, constructed by the port in 2016. Pin Oak and its contractor Strike have started construction on nine pipelines under the ship channel, eight of which will connect to the dock.
“We believe speed-to-market is imperative for our customers, and we are aligned with the Port of Corpus Christi to be ready for oil by the third quarter of 2019,” says C Mike Reed, CEO of Pin Oak Holdings. Pin Oak will also build another 2m bbl (318,000 m3) of crude oil storage, with the support of a long-term contract. www.pinoakterminals.com
CHEMICAL DISTRIBUTION IS an important part of the US economy. While distributors have weathered the most recent economic downturn better than many industries, there are a number of legislative and regulatory issues that currently affect their ability to ensure continued economic growth and job creation. The ongoing truck driver shortage, developments in the US trade agenda under President Trump, chemical facility security, and freight rail challenges all pose significant hurdles for business success in 2019.
The National Association of Chemical Distributors (NACD), based in Arlington,
Virginia, represents nearly 450 chemical distribution companies and their supply chain partners. NACD members represent more than 85 per cent of the chemical distribution capacity in the nation and generate 93 per cent of the industry’s gross revenue. NACD members, operating in all 50 states through more than 3,000 facilities, are responsible for more than 75,000 direct and indirect jobs in the US.
NACD works closely with Congress and the administration to ensure trade policies continue to afford American businesses, like chemical distributors, opportunities to thrive in today’s competitive global economy. Distributors play a key role in today’s complex global supply chain — which has taken
Americans decades to build and reflects the nation’s strengths and those of its trading partners. Years of trade relationships cannot be shifted overnight; therefore, it is imperative that the US continues to honour the relationships that have strengthened the economy.
The US trade agenda under President Trump has the potential to significantly impact the chemical distribution industry, in some ways positively and in others negatively. On the positive side, last year Congress approved, and President Trump signed, legislation that would reauthorise the Generalized System of Preferences (GSP) programme, which had previously lapsed. GSP provides US importers with tariff relief on nearly 5,000 products from 120 developing countries. Effectively, it saves American businesses $730m in tariffs each year. Without it, importers would have to pay an estimated $2m a day in new taxes on thousands of different products.
Similarly, the Miscellaneous Tariff Bill (MTB) was signed into law in the second half of 2018. This legislation provides tariff relief on more than 1,600 imported products unavailable domestically in the US. The tariffs on these products had been costing domestic companies $1m a day. Additionally, failure to approve the MTB, which expired in 2012, would have cost importers $1.1bn in tariff payments over the next three years if this legislation had not been signed into law. Taken together, the renewal of GSP and MTB will produce significant savings for chemical distributors that can be invested back into their companies and ultimately the broader US economy.
Unfortunately, President Trump’s decision to impose high tariffs on a broad range of Chinese products imported into the US will offset gains from GSP and MTB as well as recent tax reform legislation that lowered corporate tax rates. Last year, the administration unilaterally established a 10-25 per cent tariff on a range of imports from China. The tariffs were imposed under Section 301 of the Trade Act of 1974, which authorises the president to act on foreign practices deemed burdensome or restrictive to US commerce.
• CHEMICAL DISTRIBUTORS IN THE US CURRENTLY FACE A NUMBER OF BIG CHALLENGES; NACD IS LOBBYING HARD FOR POLICIES THAT REDUCE RED TAPE AND HELP TO CREATE JOBS
Hundreds of chemical products are included in the third list of products under the Section 301 tariffs. Currently, those products are subject to a 10 per cent tariff but, if trade negotiations between the US and China do not produce results soon, the tariff rate will increase to 25 per cent. This will increase costs by $26.4m for the chemical industry. Many chemical distributor companies lack the time needed to shift suppliers.
Multiple studies carried out by NACD show a direct link between tariff increases and reduced chemical sales - simply put, lower volumes result in job losses. NACD has been urging the administration to establish an exclusion process for List Three products to mitigate some of these increased costs, but so far the Office of the US Trade Representative has not done so.
Ensuring the security of high-risk chemical facilities is a vital part of the US national security efforts. To protect these facilities from potential acts of terrorism, in 2007 Congress created the Chemical Facility AntiTerrorism Standards (CFATS) programme, administered by the Department of Homeland Security (DHS). NACD has been a longtime partner with DHS since CFATS was first created, and the association has been adamant about ensuring the continuation of the programme.
In January, Congress approved legislation that would extend CFATS in its current form for another 15 months, as it was set to expire that same month. However, given the upcoming presidential and congressional elections in 2020, industry and lawmakers need to make progress this year on securing a longer-term reauthorisation in order to avoid election-year politics that could bog down the legislative process.
Therefore, NACD’s priorities are to obtain a multi-year reauthorisation of the CFATS programme prior to its April 2020 expiry; to provide industry with the certainty needed to make long-term facility security investments and enable DHS to run the CFATS programme efficiently; to ensure the CFATS program properly protects against security threats at NACD member facilities; and to establish a
CFATS Recognition Program, an alternative compliance option to reward participation in industry stewardship programs that further enhance chemical security, like Responsible Distribution.
Through Responsible Distribution, participation in which is mandatory for NACD members, the chemical distribution sector demonstrates its commitment to continuous improvement in every phase of chemical storage, handling, transport and disposal operations. It also involves relationships with employees, involvement in local communities - including participation in Local Emergency Planning Committees - and careful compliance with numerous environmental, safety, and security regulations at the federal, state, and local levels.
There are few issues as vital to chemical distribution as having a vibrant trucking sector. Unfortunately, for many years the US has been facing a shortage in the number of qualified truck drivers. The American Trucking Associations (ATA) estimates that the US would be short 63,000 drivers by the end of last year, and that number could balloon to 174,000 unfilled driver positions by 2026. In order to keep up with demand, ATA estimates that the trucking industry needs to hire nearly
90,000 drivers each year through 2026. If this shortage is not addressed, carriers, shippers, and businesses like chemical distributors will continue to see increased costs.
One of the major drivers behind the shortage is an aging workforce. The median age for a truck driver is 49 or higher and, as the older population begins to retire, one can only expect the shortage to get worse. This is exacerbated by the fact that the current age limit for interstate trucking is 21 years old and that a patchwork of state laws imposes high insurance requirements on younger people getting started in the industry, meaning a young, vibrant workforce seeking high-paying, stable employment is going untapped.
To address these challenges, NACD supports efforts in Washington, DC that would make it easier for young people to enter the workforce as truck drivers. There are a couple of solutions currently in the works that would serve as a big step to making this happen. First, the Trump administration is seeking to advance a pilot programme that would allow drivers under 21 years old with training and experience in the military to engage in interstate trucking. Second, under the last Congress, the US Senate and the House of Representatives both introduced the DRIVE Safe Act, which would lower the interstate driving age to 18 years old and »
would implement a rigorous two-step training programme, increasing safety while bolstering the workforce. NACD is hopeful that similar legislation will be introduced, considered, and approved by the new Congress that was convened on 3 January 2019.
Roughly 40 per cent of NACD’s member companies receive product via rail, while only a handful of companies ship product out of their facilities by rail. Still, railfreight is an important component in the movement of goods for chemical distributors. NACD supports efforts that serve to promote greater railfreight competition and improve the efficiency and effectiveness of the US Surface Transportation Board (STB), which oversees freight rail services. Unfortunately, due to consolidation in the rail industry over the past three decades, most chemical distribution companies that rely on rail have service by only one railroad; this loss of competition can subject them to higher freight rates, capacity constraints and service issues.
One major issue with rail service is that companies have a hard time gaining access if tracks are not present, or if service to specific lines has been either reduced or discontinued. Demurrage costs set by the railroads is also concerning, particularly when railroads fail to
meet on time deliveries and customers are faced with the bill.
Coal and crude oil shipments have also decreased car load availability in the past few years. In order to achieve greater operational ratios, regain market share lost to highways, and meet chemical transport demands, Class I railroads have started implementing what is known as ‘precision scheduled railroading’ (PSR). CN, Canadian Pacific, CSX, Union Pacific, Norfolk Southern, and Kansas City have all announced similar PSR plans to meet growing traffic demands. The result of PSR, however, is causing nationwide service disruptions to shippers, specifically chemical distributors. Shippers continue to experience inconsistent and unreliable service, while the railroads claim that transitional results and higher quality service are their end game. This is an issue that a fully functioning STB as mandated by Congress can work to address.
The challenges facing the chemical distribution sector, as outlined above, have come at a time when the industry has been experiencing a significant amount of merger and acquisition activity. Larger chemical distribution companies are looking to expand their regional footprints, while regional distributors are acquiring smaller distributors
to become industry players at a more national level. Investment from foreign distribution firms, particularly from Europe and Japan, has accentuated this trend as they attempt to break into new markets.
Private equity firms are also playing an increasingly larger role in bringing about the consolation of the US chemical distribution industry. This is due in part because these firms have more cash on hand to invest in mid-sized companies, and because US interest rates have been at historically favorable levels for a number of years, making financing is widely available.
Lastly, advancements in technology are making it more attractive for smaller firms to be acquired by larger companies as they look to boost efficiency. New tools like inventory tracking technology, artificial intelligence and online product marketplaces are rapidly changing the nature of chemical distribution. Smaller companies may find they cannot keep up and look to larger companies with the resources to invest in those technology to make sure they can keep pace with the changes.
All of these factors mean that consolidation in the US market will likely continue for the foreseeable future, although perhaps at a slowing pace over time as fewer opportunities for acquisitions becomes more commonplace. HCB www.nacd.com
lenders led by Wells Fargo Bank. The DIP financing will provide Aceto’s working capital needs through the completion of the sales transactions and support payments to vendors and suppliers for post-petition purchases in the ordinary course.
ACETO CORPORATION, A developer and distributor of performance chemicals and pharmaceutical ingredients, has entered into a ‘stalking-horse’ asset purchase agreement with an affiliate of New Mountain Capital to sell its chemical business assets for gross proceeds of $338m in cash, in addition to the assumption of certain liabilities and subject to certain adjustments on a cash-free and debt-free basis. New Mountain Capital, based in New York, currently manages private equity, public equity and credit funds with more than $20bn in assets under management.
The proposed sale will be conducted under section 363 of the US Bankruptcy Code. To facilitate the sale and satisfy its debt obligations, Aceto and its US subsidiaries have filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of New Jersey in Newark.
Aceto’s foreign chemicals business subsidiaries are not included in the filing but will, however, be included in the sale. Aceto also intends to enter into a stalking horse agreement for its subsidiary, Rising Pharmaceuticals, a distributor of niche, generic prescription pharmaceutical products. The company expects to complete the dispositions of its chemicals and Rising businesses before its fiscal year end on 30 June.
“For the past several months, the board has been conducting a comprehensive evaluation of strategic alternatives to address the company’s debt burden in consultation with its financial and legal advisors while
continuing to work cooperatively with its lenders,” says William C Kennally III, CEO of Aceto. “After assessing its options, the board has determined that court-supervised sales of Aceto’s chemicals business assets and its subsidiary Rising Pharmaceuticals are in the best interest of the company and its stakeholders. This decision provides stability and deep capital resources to the company and, importantly, ensures the continuity of customer, partner and supplier relationships critical to the company’s businesses operations and success.”
Aceto will continue to operate its business in the normal way while it completes the sales of its chemicals business assets and its subsidiary. Additionally, Aceto has received a commitment for debtor-in-possession (DIP) financing of $60m from a syndicate of
The proposed sales will be conducted through court-supervised processes, subject to court-approved bidding procedures, potential receipt of higher and better offers at auction and approval by the court. PJT Partners LP is acting as Aceto’s financial advisor and investment banker to lead the sales processes under the bid procedures and Lowenstein Sandler LLP is serving as legal advisor. AP Services, an affiliate of AlixPartners LLP, is also serving as CFO and advisor to the company.
Aceto, incorporated in 1947, operates in nine countries, including China and India, and distributes more than 1,100 chemical compounds used principally as finished products or raw materials in the pharmaceutical, nutraceutical, agricultural, coatings and industrial chemical industries.
In its first fiscal quarter results, released this past November, Kennally noted that sales at the Rising Pharmaceuticals business had declined, in part because of the loss of revenue from government entities and the “continuing challenges” in the generics market. HCB www.aceto.com
WEAK ECONOMIC CONDITIONS in many territories, exchange rate uncertainties and rising costs have all made life difficult for international operators in the chemical supply chain over the past year but end-year figures issued by some of the biggest global chemical distributors show there is room for improved profitability if the right strategy is chosen.
Univar and Nexeo Solutions, which Univar is due to take over soon, along with DKSH have all reported growth in 2018, despite pockets of poor performance.
Univar, for instance, reported 2018 net income of $172.3m, up from $119.8m in 2017, with adjusted EBITDA up 7.8 per cent at $640.4m. “We continued to improve on our global execution in the fourth quarter despite challenges in Canada and softer than forecasted demand from most industrial end markets,” says David Jukes, Univar’s president and CEO. “In particular, improved sales force and operational execution in our USA segment drove adjusted EBITDA growth in a quarter when customer demand and purchasing behaviour was dampened by macroeconomic uncertainty.”
For the year as a whole, revenues from US external sales grew by 6.5 per cent to $4.96bn, while those in the EMEA region increased by 8.5 per cent to $1.98bn. Canadian sales fell 5.0 per cent to $1.30bn and ‘Rest of the World’ sales were down 2.6 per cent at $393.5m.
While 2018 as a whole was good, it ended weakly. Looking more closely at the fourth quarter, Univar detected “cautious buying behaviour”, especially in October and December. Nevertheless, sales grew by 2.8 per cent despite volumes that were essentially flat compared to fourth quarter 2017. There was a small improvement in EBITDA margin, which Univar says reflects continued margin management and improving execution, despite an unfavourable shift in the product mix with a higher proportion of
bulk commodity chemicals, which pushed up freight expenses.
Soft demand in the energy markets in western Canada and persistent challenges in the weather-impacted agriculture business negatively affected results for the Canada segment in the fourth quarter. In the EMEA region, on the other hand, continued doubledigit growth in the focused Industries line of business and a more favourable product mix drove growth of 7.9 per cent in adjusted EBITDA, excluding the impact of currency movements, despite signs of economic uncertainty. There were notable improvements in both gross margin and adjusted EBITDA margin due to improved mix and effective cost management.
Elsewhere, strong performance in Mexico was offset by softness, particularly late in the quarter, in Brazil.
Univar is now forecasting adjusted EBITDA for the full year 2019 very much in line with 2018, absent the Nexeo Solutions acquisition. It is expecting industrial production growth to slow, which should be compensated for by a recovery in its Canadian agricultural business and continued improvement in sales force efficiency. It is, though, somewhat nervous about currency movements and says there is limited opportunity for an improvement in freight and transport costs. It also expects a slightly higher tax burden and will miss a one-off $8m gain booked in the USA segment in first-quarter 2018.
RESULTS • THREE OF THE MAJOR CHEMICAL DISTRIBUTORS HAVE REPORTED POSITIVE FINANCIAL FIGURES FOR 2018, AHEAD OF WHAT WILL BE A MAJOR CONSOLIDATION IN THE SECTOR THIS YEAR
Nexeo Solutions’ latest results relate to the first quarter of its 2019 fiscal year, and show revenue growth of 1 per cent but a decline in net income from $26.5m a year ago to $16.2m. “While our first quarter performance reflects some deflationary and macroeconomic headwinds, we remain focused on continued execution of our strategic priorities in any environment,” says president/CEO David Bradley.
The increase in sales and operating revenues largely reflected a 4 per cent increase in average selling prices, mainly as a result of higher sales of speciality products in North America. This was partially offset by a decrease in volumes and currency losses of some $8.8m as a result of weakening exchange rates for various currencies against the US dollar.
Quarterly gross profit fell from $106.9m to $98.7m over the year, hampered by a deflationary environment late in 2018 that compressed margins and led to lower demand, with customers reducing inventory levels ahead of anticipated lower process.
“The merger with Univar is on track to close and by combining the best of the best, Univar Solutions will be well-positioned strategically and financially to deliver increased value to our shareholders and worldwide industry partners,” Bradley says. Working together with Univar, Nexeo has subsequently agreed to sell its plastics distribution business to One Rock Capital Partners for $640m; the deal is expected to close in the first half of the year, after the acquisition of Nexeo by Univar.
Switzerland-headquartered DKSH achieved an increase in net sales of 3.1 per cent to SFr 11.34bn for the full year 2018, with profit after tax increasing by 22 per cent over 2017 to SFr 260.3m. Operating profit of SFr 263.6m was below last year’s SFr 297.0m.
“The three business units, healthcare, performance materials and technology, reported increased results,” says Stefan P Butz, CEO of DKSH. “With the divestment of the healthcare business in China, we realised a sizeable profit. However, in a challenging market environment, performance in business unit consumer goods was significantly below last year. Therefore, we have started to restructure the business. This will impact the first half of 2019, though we are confident that results for the business unit will be better than in 2018 due to the started measures.”
DKSH also announced two acquisitions in growing and highly profitable business segments during 2018. In June, it acquired Davies Foods’ beverage business in New Zealand and in December signed an agreement to acquire Auric Pacific’s distribution business in Singapore and Malaysia.
DKSH chairman Dr Joerg Wolle announced in 2018 that he will step down from the board at this year’s AGM. Adrian T Keller, honorary chairman, says: “On behalf of the entire Board of Directors and management, I would like to thank Dr Joerg Wolle for his highly appreciated leadership over the past decades. He played a key role in establishing DKSH as a leading market expansion service provider in Asia.” Theo Siegert, David Kamenetzky and Robert Peugeot are also due to step down from the Board of Directors; proposals for new members will be published along with the invitation to the AGM, which will take place on 21 March. HCB www.univar.com www.nexeosolutions.com www.dksh.com/global-en/home
IMCD has opened a new coatings application laboratory in Istanbul, Turkey (above). The new laboratory will offer formulation guidance, provide innovative solutions to overcome technical challenges, and product performance testing.
“Since our first steps into the Turkish coatings and construction industry in 2006, we have continuously and successfully expanded our supply and product portfolio,” says Frank Schneider, business group director coatings and construction. “With our new technical centre here in Istanbul, we offer formulation concepts based on the individual requirements of our customers and suppliers, which is in line with our global business philosophy to provide local expertise.”
The new laboratory is IMCD’s 12th facility for coatings and construction worldwide and
will be fitted with the latest equipment to support the formulation and performance testing of paints. www.imcdgroup.com
Nexeo Solutions and Chemetall, a BASF brand, have expanded their distribution relationship to include Chemetall’s surface treatment portfolio for the aerospace industry in the US. “We are excited to expand our portfolio in the US with Chemetall’s product line and technical support,” says Jason Sanchez, business director of aerospace and custom packaging at Nexeo Solutions. “Together, we are expanding and leveraging the strength of our distribution network and Chemetall’s technical capability to create real value for our customers.”
Gregg Sanko, director of aerospace technologies for Chemetall North America,
adds: “Nexeo will be able to offer key Chemetall technologies like corrosion inhibiting compounds, non-destructive testing and surface treatment to customers who need the high quality and exacting standards that Chemetall brings to the aerospace industry.” www.nexeosolutions.com
AIRGAS TO ACQUIRE TECH AIR Airgas has signed a definitive agreement to acquire Tech Air, a large independent distributor of industrial gases and welding supplies in the US, from CI Capital Partners. “Growth through acquisition has been a key component of Airgas’ business model and remains a core part of our long-term strategy,” says Pascal Vinet, CEO of Airgas. “We look forward to welcoming the Tech Air team to Airgas and integrating their complementary capabilities and resources to enhance service for our customers.”
The transaction, which is subject to approval by US antitrust authorities, is expected to close this year.
www.airgas.com
Azelis Americas is to consolidate its two CASE brands, GMZ and Ribelin, under the new Azelis CASE brand as from 1 February.
“This is a significant move to serve our principals and customers even better. It will streamline interactions while maximising efficiencies,” says Frank Bergonzi, CEO and president of Azelis Americas “Our goal is to continue to be the innovation leader in the CASE market segment. By consolidating the business under Azelis Americas CASE, we will provide a unified, go-to-market strategy and further strengthen our position in the CASE market.” Dan Gruber has been appointed managing director of the business, with Rocky Prior leading the national sales force. “We are always looking for ways to positively impact the business,” says Gruber.
“Our new Azelis Americas CASE business model will continue our path of sustainable growth in the industry.” www.azelis.com
Colonial Chemical has appointed Harcros Chemicals as its distributor for speciality products in Arkansas, Colorado, Idaho, Kansas, Louisiana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota and Texas.
“With Harcros as our distributor, we increase our presence in major manufacturing areas in the Rockies, the west and the heartlands,” says David Anderson Jr, vice-president of sales and marketing for Colonial Chemical. “Our goal is to continuously improve our customers’ experience in every aspect. Expanding our network of distribution and sales support personnel through Harcros and being in close proximity to where our customers are is a key initiative towards achieving that.”
Under the agreement, Harcros will also become a significant provider of service and application support in the covered regions. www.harcros.com
Ashland has appointed Barentz as distributor for its personal care ingredients in Germany and Austria, which Ashland sees as important markets. “We are aiming for considerable growth in the coming years,” says Esteban von Ehrenstein, director personal care EMEA, Ashland. “Barentz is doing an excellent job for Ashland in other countries, and we have high expectations that they are able to replicate the level of service we’ve seen before. Barentz offers our customers outstanding support and their team of technical specialists is a valuable resource in creating innovative product solutions.”
Ashland and Barentz began working together in the Netherlands and Russia in 1996 and since then the distribution rights have expanded to Poland, Bulgaria, Hungary, Serbia, Slovakia, Croatia, Lithuania, Latvia and Estonia. “We are very proud of now adding Germany and Austria to the group of countries where we distribute ingredients for Ashland,” says Chris Ott, director at Barentz Personal Care. “We know Ashland’s excellent product range very well, and it strengthens and completes Barentz’s Personal Care portfolio in these new countries.” www.barentz.com
Brenntag has announced it will be distributing glass bubbles and boron nitride fillers from 3M throughout the UK and Ireland. “We are delighted to be able to offer our polymer and rubber customer base a range of market-leading specialty products that confer important performance benefits,” says Maura Jolliffe, commercial director material science and specialty chemicals at Brenntag UK & Ireland. “Brenntag will deploy its technical specialists to support the product improvement and development activities of compounders, injection moulders and extruders servicing diverse end industries such as the automotive and electronic sectors.”
The relationship became exclusive on 1 February and covers the supply of packed product.
Meanwhile, Brenntag Specialities has reached a deal to distribute Wanhua America’s aromatic isocyanates, polyether polyols, coatings additives, and polyurethane dispersions (PUD) through most of the US.
“Brenntag’s work with Wanhua continues to demonstrate our commitment to deliver top quality raw materials to our customers,” says Ralph Gatti, director of marketing, material sciences for Brenntag Specialties. “Our team looks forward to working alongside Wanhua to bring new opportunities for urethane technology. These products are a great addition to our portfolio, giving our customers possibilities they’ve been seeking.”
Based in Yantai, China, Wanhua specialises in urethane technology raw materials; in addition, it supplies resins and additives to the coatings and construction industries.
Also in the US, Brenntag has signed an agreement to acquire the lubricants division of Reeder Distributors, a regional distributor based in Fort Worth, Texas. “Brenntag North America intends to be an active market consolidator in selected regions in the lubricant distribution market,” says Markus Klaehn, member of the management board of Brenntag Group and CEO of Brenntag North America.
“The acquisition of Reeder Distributors’ lubricants division is a bolt-on to our lubricants business platform and results in a geographical expansion in an adjacent market.” www.brenntag.com
chairman, David Kurk, and keynote addresses from Craig Kennedy, senior vice-president, supply chain, at MSD; Rob Coyle, senior vice-president, global pharma and healthcare at Kuehne + Nagel; and Daniel Hoey, senior vice-president, global supply chain at Teva Pharmaceuticals. After a short break, Markus Hayek, managing director of supply chain and operations strategy at Accenture, will give a masterclass with the title: ‘How to go beyond pilot and build analytics capability within supply chain and manufacturing’.
THE PHARMACEUTICAL SUPPLY chain, with its intense focus on quality control and traceability, is at the forefront of logistics technology and provides something of a roadmap for other sectors where careful handling is a must, not least for the petrochemical and chemical industries.
To keep on top of developments, the pharmaceuticals sector has since 2001 gathered once a year for LogiPharma, now Europe’s biggest dedicated supply chain event. This year’s LogiPharma takes place in Montreux, Switzerland from 9 to 11 April and is expected to bring together thousands of supply chain professionals from top pharma, generics and animal health companies.
The event provides an expanded, tailored programme to meet the practical needs of those in supply chain strategy, logistics, transportation and distribution, with a heavy
focus on digitisation taking centre stage at this year’s event.
As ever, though, it is not just the formal presentations and exhibition stands that draw delegates to the event; the aim of the organisers is to provide a forum where supply chain professionals from the world’s leading pharmaceutical manufacturers can meet their counterparts among the logistics providers –and, these days, digital service providers –and learn about the potential for collaboration, innovation and solution development to help them overcome their daily challenges.
With such a broad remit, the organisers – WBR – has arranged the conference into different tracks to allow delegates to focus on those most relevant to their own operations. The first day begins with opening remarks from the
But following that, delegates have a choice to make: the conference will split into five tracks covering: advancing pharma supply chain strategy; driving intelligent, digitalised, data-drive supply chains; mastering temperature control and logistics; optimising traceability, warehousing and distribution; and synergy workshops.
Those tracks will feature three or more presentations from experts at such companies as Boehringer Ingelheim, Novartis, DHL, Bayer and Johnson & Johnson. And all this before lunch. Coming back to the conference room suitably refreshed, delegates will have the chance to hear more from the same tracks, this time featuring speakers from Ortho Clinical Diagnostics, Elanco, Amgen, Pfizer, Accenture, Bristol Myers Squibb, Roche, Controlant, Zelia Pharmaceuticals, Santen, AFKLMP Cargo and the Dutch Healthcare Inspectorate. Those tracks also continue after the afternoon break.
PREVIEW • LOGIPHARMA 2019 WILL ONCE MORE ATTRACT A HUGE AND EXPERT AUDIENCE TO MONTREUX TO SEE WHAT’S NEW IN THE FIELD OF PHARMACEUTICAL AND COLD CHAIN LOGISTICS
Prior to a networking reception, the first day’s massive agenda will be rounded off by an inspirational presentation from Bill Morris, expert advisor on strategic projects and programmes for the International Olympic Committee, who will tell delegates what they might be able to learn from the largest logistics undertaking anywhere in the world during peacetime.
The second day will again start with some interesting keynote presentations, covering change management (with Pietro Darpa from Procter & Gamble), an ‘all-star’ panel session on Brexit with live polling, a cross-industry case study from Amer Hussain of Coca Cola, and a panel session on the new role of the supply chain within pharma organisations moderated by Paolo Rosanna, vice-president of life sciences and healthcare at DHL.
After the morning break, James Gregson, partner in UK healthcare and life sciences supply chain at Deloitte, will consider future goals in terms of supply chain strategy, processes, talent and technology. Luis Miguel del Saz Rodriguez, head of digital transformation, ordering and logistics at Airbus, will give some advice on human resources and supply chain digitisation in meeting transformation objectives. And Anna Levander, chief sales officer at Envirotainer, will lead a keynote panel looking at how future outsourcing and logistics models will differ across the industry.
The remainder of the day will again address an extensive range of topics, including targeted data and digital behaviours, the role of airfreight in pharma logistics, and optimising network design for generics production, alongside an Oxford-style debate focused on regulatory frameworks and whether they should allow for the data derived from global FMD projects to be used for improved planning and supply.
The day will close with an interesting presentation by Maya Zlatanova , board member of the Patient Empowerment Initiative Committee, ACRES, on how the pharma industry can best work with its customers to gain constructive feedback and improve supply chain performance.
The final day, headlined ‘igniting your supply chain of the future’, will begin with a ‘fireside chat’ about reshaping the organisation and strategy for a supply chain that delivers patient-centricity and end-to-end visibility, led by Thomas Panzer, senior vice-president supply chain at Bayer. The casual discussion will give an insight into the large-scale operational transformation that has taken place at the company and what to expect in the future.
Some presentations of interest during the day include one on redesigned supply chain networks that incorporate sea freight, by Brice Bellin, healthcare director Europe at Bolloré Logistics; two presentations on the ‘creative boardroom’ and how leadership can drive change by leveraging and integrating partners and developing cross-functional process standardisation in the supply chain; and an interactive presentation on how datadriven analytics enables logistics to become an added value partner in the supply chain by Sharon Tzour, global head of logistics performance management at TEVA.
As if this was not enough to attract the great and the good from the pharmaceutical logistics sphere, LogiPharma also hosts an exhibition where an array of providers have
the opportunity to showcase their latest products and services. Among this year’s list of sponsors and exhibitors can be found consultants, airlines, software providers, packaging manufacturers, freight forwarders, logistics companies, asset tracking and temperature monitoring specialists, and dedicated distributors.
Temperature control is a fundamental feature of the pharmaceutical supply chain and there will be plenty of offerings on show.
Germany-based eutecma, for instance, will have its IceCatch advanced cooling system on show, along with its innovative Protect modular packaging systems. Exam Packaging has been providing insulated packaging made of injected polyurethane foam since 1986, while Exeltainer, established in 2004, is a leading provider of design, testing, qualification and manufacturing of temperature-controlled packaging for the pharmaceutical and biotech industries.
Novo Nordisk, in partnership with TSS, a provider of temperature monitoring solutions to the life sciences industry, will be previewing a new digital solution that is able to monitor product temperatures and automatically respond to observations that indicate that a product is outside an intended range.
More details on these and all other exhibitors can be found on the event website. HCB www.logipharmaeu.wbresearch.com
HCB: Tell us a little about how you came to be where you are now
WM: Having been dealing with the problems that can arise in the transport of dangerous goods for more than 20 years, I decided to start my own business in 2006. The aim of that venture was to develop packaging to transport dangerous goods in a safe way.
My goal was to find packaging that everyone in a company will find easy to use, not just the dangerous goods specialists.
HCB: What attracted you to the industry in the first place?
WM: There were a number of reasons. Firstly, the packaging of dangerous goods is a little-known part of the supply chain. It is a small world where everyone knows everyone else and, after a while, competitors can become friends. Everybody has the same goal: packaging dangerous goods in a proper and safe manner. Safety must come first!
The Pack focuses solely on fibreboard boxes for the transport of dangerous goods. As such, we have become experts in this niche area of industrial packaging and we consider it our speciality.
HCB: What are your current responsibilities and what challenges do they present?
WM: As the owner of The Pack my responsibilities are extensive but, as far as packaging is concerned my main aim is to develop new packaging options. I try to develop packagings that are of the highest
standards and the lowest environmental impact, all at the lowest price we can offer.
As CEO I am responsible for everything, from developing new packagings to the marketing, sales, operations, human resources and so on.
HCB: What is the company’s current focus and how does that affect you?
WM: Our main focus is to stay up to date with the dangerous goods regulations because for us it is important to offer our customers the best service and expertise.
Currently, we are focusing on the pharma industry as it has more specific regulations than most other dangerous goods. The Pack has developed new packaging that combines the specific needs of the pharma industry in terms of packing dangerous goods in a temperature-controlled packaging.
The Pack offers a wide range of fibreboard packagings to meet all the needs of the industry. We are becoming Europe’s number one producer of fibreboard packaging for dangerous goods and now have distributors in 12 countries. We hope to have our own distributor in every country soon – and Africa and the US are also on our list of targets.
HCB: Outside of work, how do you relax?
WM: As chief executive, covering a broad range of jobs in the company, I rarely ever have time to relax. However, when an opportunity to relax comes up, I like to spend time by the coast, going to the cinema, and eating out at great restaurants. HCB
INTELSIUS HAS LAUNCHED a new passive temperature-controlled packaging range, ORCA MX, with full integration capability for real-time tracking. It allows for the use of various tracking solutions and is not bound by a specific hardware, giving users the freedom to apply their own tracking solutions.
ORCA MX was introduced to the market in January at the Temperature Controlled Logistics conference in London and was part of Intelsius’ overall theme of high-quality, connected packaging solutions.
Launch of the ORCA MX range followed quickly after the introduction in 2018 of the ORCA M range, a multi-use passive packaging solution capable of maintaining payload integrity at multiple temperature ranges for up to 96 hours. That marked 20 years in the life sciences industry for Intelsius, which was established by DGP Group to develop a
packaging solution for samples suspected of containing bovine spongiform encephalitis (BSE). It was the first UN-certified BSE sample shipper in the world, and rapidly expanded from its UK base.
Last year was exciting, Intelsius says, with other developments to core market products and further international expansion, after it signed a distributor partnership with Naratech Pharmaceutical to provide coverage in the Middle East for its sample transport and temperature-controlled packaging solutions.
Naratech helps companies with drug development, storage and distribution and has deep connections with regional regulators.
Intelsius also rolled out a new website last October, giving customers the ability to purchase items from its temperaturecontrolled and sample transport packaging ranges in a matter of clicks.
This year, improvements to the ORCA multi-use products are designed to create greener and more cost-effective options for customers. And to support the growth of the ORCA range Intelsius is planning to expand the range of head office facilities, with an ORCA Centre of Excellence due to open across the road from the current offices early in the year. This Centre of Excellence will act as the manufacturing hub for all ORCA products, ensuring quality standards remain consistently high and product can be manufactured under ideal conditions.
In addition, Intelsius will be developing a new European service and opening a fulfilment site in Germany. This move will allow customers across Europe to rent or purchase pre-prepared packaging solutions, improving quality conditioning and providing a more comprehensive temperature-controlled packaging service.
Another exciting project for the Intelsius team has been the development of further bio-based packaging solutions. Last year it undertook development of packaging optimised for the delivery by drone of temperature-sensitive children’s vaccines to the isolated island of Vanuatu. The project, supported by Unicef, involved the paired use of a Wingcopter drone and Intelsius packaging to quickly deliver vaccines to remote areas of the island that are not easily accessible by other means.
Intelsius’ work is underpinned by its ATMOS™ suite, used by its technical team to streamline the testing of new temperature-controlled packaging solutions and thereby cut its clients’ costs and development time by up to 70 per cent. It also allows for advanced lane shipping tests, giving assurance that temperature excursions will not occur, even in the most extreme environments.
Headquartered in York, UK and with a sister company in Ireland, Intelsius also has offices in the US, India and Malaysia and works with partners in South Africa, South Korea, Japan, Jordan, the Netherlands, the Czech Republic and Poland. HCB www.Intelsius.com
The new line is the very first direct railway link from Belgium to this important hub on the Adriatic Sea. Lineas Intermodal set up the routes between Euro Terminal Genk, near the headquarters of H Essers, and Samer Terminal in Trieste. “The open train is able to transport both containers and trailers. Initially, there will be two trips per week, later three,” says Sam Bruynseels of Lineas Intermodal.
“The new rail and waterway connection to Greece and Turkey allows us to eliminate 9,000 road transports each year,” says Bervoets, explaining the network. “It is a sustainable solution that makes it possible for us to meet the fast-growing demand of our customers in this area.”
Bruynseels agrees: “With one-ninth of the CO2 emissions, one sixth of the energy consumption and one eighth of the air pollution, rail is an indispensable asset for making our transport sector climatefriendly, as well as tackling the increasing problem of congestion. This is the kind of synchromodality we need.”
TWO BELGIAN COMPANIES, logistics service provider H Essers and private rail operator Lineas Intermodal, have embarked on a collaboration to provide a direct railfreight service connecting Belgium with Trieste in northern Italy.
H Essers is to use the new link to move its Safebox containers in secured and/or cold chain service to Greece and Turkey. The cargo units are taken by train from Genk to Trieste,
and then by ship to the port of Patras, Greece and the ports of Istanbul, Pendik, Izmir and Mersin in Turkey. “This represents not only a nice extension to, but also an optimisation of our existing network. Moreover, the new route is a good example of a synchromodal solution where goods travel as much as 90 per cent over rail and water,” says Gert Bervoets, CEO of H Essers.
As many Safebox containers as possible will be used on the new link. This 45-foot container was specially developed for H Essers’ secured/cold-chain transports, focused on the three strategic markets of the company: chemicals, pharmaceuticals and high-value products. They are electronically locked and monitored 24/7 from the company’s control tower, allowing H Essers to intervene quickly if necessary.
In addition, part of the Safebox container fleet is equipped with temperature control, making it possible for the control tower to monitor the cooling units so that temperature-sensitive goods can be transported unescorted to Greece and Turkey.
As well as products, such as pharmaceuticals, that demand temperature control, H Essers will also be using the new link to move chemicals. “We are able to handle almost all classes of dangerous goods, including liquid bulk transport from tank container specialist Huktra, which was recently taken over by H Essers,” says Bervoets.
Lineas is one of the largest private railfreight providers and door-to-door logistics firms in Europe; it is owned by the private equity group Argos Wityu (69 per cent) in partnership with Belgian National Railway and currently has a fleet of more than 250 locomotives and 7,000 wagons.
H Essers was founded in 1928 but has recently expanded in size and scope through acquisitions and organic growth. It currently has more than 1m m² of warehouse space, a fleet of 1,320 semitractors and 3,120 trailers, 400 Safebox containers and 950 tank containers. Last year it booked turnover of €670m. HCB www.essers.com www.lineas.net
BOLLORÉ LOGISTICS SINGAPORE and a US-based pharmaceutical company have inaugurated a new cross-dock hub for Asia. The project is said to be a significant milestone for both companies, with the partnership expected to generate and integrate innovative ideas to boost supply chain efficiency in healthcare logistics.
“This project would not be possible without the meticulous planning and involvement of the teams from both companies. With the first shipment already in motion, we are extremely proud to announce that the cross dock hub is officially in operations,” said Remi Lefevre, general sales manager at Bolloré Logistics Singapore, at the official opening of the site in November.
Bolloré Logistics is using its healthcare warehouse, located in Singapore’s free trade zone, that has achieved compliance
with Good Distribution Practice (GDP) and Good Manufacturing Practice (GMP) norms. These standards ensure that products are consistently stored, transported and handled under suitable conditions as required by the marketing authorisation (MA) or product specification, and that operations conform to the guidelines recommended by agencies that control the authorisation and licensing of the manufacture and sale of food and beverages, cosmetics, pharmaceutical products, dietary supplements, and medical devices.
The pharmaceutical partner, whose identity Bolloré has kept confidential, is one of the leading figures in biopharma industry with an extremely strong focus on treatments for diabetes and oncology. The opening of an Asian cross-dock hub is expected to be accompanied by a new distribution plan that will play a central role in the management of
the logistics chain from the pharmaceutical plants in USA and Europe to markets in Asia. Under the new supply chain model, the logistics flows from origins to destinations will be fully handled and monitored by the international network of Bolloré Logistics.
The development in Singapore is further evidence of Bolloré Logistics’ commitment to the healthcare and pharmaceutical logistics sectors in Asia. Last year its platform at the Pudong International Airport Logistics Park in Shanghai became one of the first transport and logistics companies in China to receive certification from the International Air Transport Association (IATA) as a Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma).
“This certification demonstrates our commitment on full compliance in handling pharmaceutical products and other temperature-sensitive commodities. Meanwhile, it will greatly reinforce our capability to further develop our core competency in transportation and logistics service for the healthcare industry,” said Jessie Zhou, general manager of operations at Bolloré Logistics Shanghai, at the award of the certification.
Bolloré says the CEIV certification will give it a strategic advantage in the Chinese healthcare logistics market, with a stronger, more competitive and enhanced air cargo service. Bolloré had already gained CEIV Pharma certification in Europe for its platform at Charles de Gaulle airport in Paris and sites in Brussels, Frankfurt and Lisbon.
Bolloré Logistics says that certification in Shanghai shows its “commitment to achieve the highest international quality standard in the global pharmaceutical supply chain for its customers, by continually improving its processes and infrastructures to be compliant with IATA CEIV Pharma standards. With Singapore, Australia, South Korea and now China certified, the aim of Bolloré Logistics is to deploy this action throughout its global network with ongoing certifications on other sites in the Asia-Pacific region such as Hong Kong and Japan.” HCB www.bollore-logistics.com
Air France KLM Martinair Cargo (AFKLMP) has become the first major airline group to successfully pass the IATA CEIV Pharma re-certification process for its hub operations in Amsterdam and Paris, as well as the Air France and KLM airline processes.
AFKLMP was among the first to achieve the certification back in February 2016 and this re-certification demonstrates the importance of the pharma sector for the group.
“Pharma is a top priority for our airline group,” says executive vice-president Marcel de Nooijer. “In an increasingly demanding environment, this certification reconfirms our commitment to offering the highest possible quality standards in support of our customers’ business activities.”
Enrica Calonghi, global head of pharmaceutical logistics for the group, adds: “IATA CEIV Pharma re-certification confirms that our group aims to position itself not only as a leader in innovation and transparency, but also through putting care into healthcare by continually improving our processes and facilities.”
The CEIV certification also fits with AFKLMP’s commitment to digitisation in the pharmaceutical logistics chain, via its digital platform myCargo, which was rolled out across Europe in the middle of 2018. “After a period of tests in several European countries we have started the rollout of this important tool, which we are already using widely for general cargo, also for pharmaceutical logistics,” Calonghi said at the launch.
The platform allows AFKLMP customers to track the current temperature, the battery level in the dry ice units, and the voltage in the active containers during their transit at the Amsterdam Schiphol and Paris Charles de Gaulle hubs.
“All the pharmaceutical containers are checked during contact points at our hubs, at the origin and the destination,” Calonghi continued. “We want to enable our customers
to monitor the checks and actions we have been performing. And, how cool it would be – pun intended – if we can expand the transparency of the temperature for all pharma products in the short term.” www.afklcargo.com
TLX Cargo, part of TLX insulation, a world-leading manufacturer of thin reflective insulation for 25 years, is now offering its thermal blankets through the Emball’iso worldwide commercial network.
Pharmaceutical products requiring temperature control during air transport are generally shipped in passive isothermal packagings, such as the Emball’iso Pallet Shippers, which use water gel-based briquettes or phase change material (PCM) briquettes to maintain their temperature. An alternative is to use a thermal blanket, with the choice determined by performance, cost and product data stability.
Emball’iso is now providing these blankets under the ‘TLX by Emball’iso’ brand name as its ‘Protective’ range, to add to its existing ‘Standard’, ‘Premium’ and ‘Premium+’ ranges. Having a single point of contact for all types of isothermal solutions available on the market in this way enables Emball’iso to offer a solution that takes account of all relevant factors, such as weather conditions, seasons or airwaybill quality level. For instance, the France-based company says, while a thermal blanket may be sufficient in summer, on the same lane in winter a Pallet Shipper may be more advisable. With a performing airwaybill a thermal cover could be sufficient on one lane whereas, on another, the lack of infrastructure might point to the use of a higher performance isothermal solution.
Emball’iso has been helping pharmaceutical companies optimise their supply chains since 1990. A world leader in the design and manufacture of high-performance temperaturecontrolled packaging systems for the transport of pharmaceutical products, Emball’iso is now also an expert in turnkey reverse logistics and equipment rental solutions. www.emballiso.com
Rhenus Air & Ocean has obtained the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification from the International Air Transport Association (IATA) for its Amsterdam Airport Schiphol branch. The CEIV Pharma certification sets the highest quality standards for life sciences and healthcare customers through uniform processes and a compliant supply chain for pharmaceutical products.
Rhenus started work on obtaining the certification last year, reviewing its procedures for the handling of temperature-controlled shipments, optimisation of temperaturecontrolled facilities, training of staff and assessing all logistics processes by independent validators.
“As part of our corporate strategy we aim to meet the highest standards in global air freight. By obtaining the CEIV Pharma certification, we can adequately respond to pharmaceutical companies who are looking for a reliable logistics provider for the secure, safe and efficient shipment of their time and temperature-sensitive products,” says Frank Roderkerk, managing director of Rhenus Air & Ocean. www.rhenus.com
The EU’s Falsified Medicines Directive (FMD) took effect on 9 February; manufacturers serving EU markets are now required to serialise and equip all prescription medications with tamper-evident features, while dispensers
such as hospital and retail pharmacies are required to verify and decommission medicines before dispensing to patients.
To help dutyholders comply with the new requirements, Optel has equipped its Certa™ software with a new transactional website for verification and decommissioning. The compliance solution is aimed in particular at pharmacies, with Korina Fischer, vice-president of healthcare at Optel, saying: “Anything that makes it easier for the industry to quickly adapt to the new regulations is worth the investment.”
Optel’s Certa software is a cloud-based system that has a secure communication with the National Medicines Verification Systems (NMVS) of countries across the EU, providing users with an immediate compliance solution. The software can be ordered online at www.optelgroup.com/certa.
Va-Q-tec is expanding its footprint in the Asia-Pacific region, having opened its third subsidiary in the region in December 2018. The new entity in Singapore increases va-Q-tec’s commitment in the APAC region, where it already has operations in Japan and South Korea, and will answer growing regional demand for high-performance solutions in the temperature-controlled supply chain.
To implement temperature-sensitive logistics chains, va-Q-tec operates a fleet of globally available rental containers and boxes meeting demanding thermal protection standards under the ‘TempChain’ umbrella. Singapore, with its hot and humid weather, is one of the most challenging temperature environments for TempChain transport on the globe, the company says. By opening a site and a TempChain service centre in Singapore, va-Q-tec broadens its service and product offering in the region, together with local partners such as Singapore Airlines, Japan Airline and Cathay Pacific Airlines.
Singapore is a central logistics hub for south-east Asia with a modern airport and infrastructure facilities. On top of that, it is one of the most open economies in the world and the EU’s most important trading partner in the region. This opens up opportunities to attract new customers and partners for va-Q-tec. More than 30 of the world’s leading pharmaceutical technology firms have offices and manufacturing plants in Singapore.
www.va-q-tec.com
The sudden upsurge in petrochemical output in the US is staggering and, with the low input prices, comes with a concomitant increase in export volumes.
“We anticipate that the US will continue to be a major export market for chemicals in the long term, based on the investments made by chemical companies. Forecasts indicate that production capacity will increase by some 40 per cent by 2040,” Kew notes.
That pace of growth is causing other concerns, quite apart from issues of infrastructure constraints. Environmental issues point to tank containers as a prime mode of transport, and not just for substances regulated in transport. “It is quite clear that growing public awareness of environmental impacts to both wildlife and human health will necessitate a major shift in logistical modalities and will require a major reduction in the volume of one-time use plastic flexi bags for transportation,” Kew says.
“The environmental credibility of such units is still unproven and, although much touted, the majority of flexi bags used to move chemicals still end up in landfill or are incinerated, neither of which is either environmentally sustainable or desirable.”
HAVING SEEN OFF the sudden concern that Chinese-made tank containers would be caught up in the growing trade war between the US and China, tank container operators are looking forward to taking advantage of growing demand for the transport of petrochemicals in the booming US market.
Continued growth in the petrochemicals sector, boosted by low feedstock costs as a result of the shale gas boom, is generating increasing volumes of cargo, for which tank containers will be one of the beneficiaries.
However, that picture is not without its problems, as David Kew, managing director of UK-based M&S Logistics, explains. “Increasing demand will present a number
of challenges and pressures across the supply chain at all points, including ports, rail and trucking. In fact, the rapid growth of the chemical industry may well outpace the ability of the supply chain to adapt, which makes it vital that producers align themselves with logistics providers who can rapidly respond to changes in market conditions and for whom forward planning is a key element of their culture,” he says.
“New technology may offset some of these issues but improved IT systems are unlikely to solve those traditional problems such as falling numbers in the driver supply pool and continued congestion and labour concerns at our ports,” Kew adds.
As such, Kew says, “products will continue to be moved in ISO tanks, which offer a much more positive and environmentally friendly method of transportation and do not suffer from the leakage problem that plagues the flexi bag industry.”
The outlook for the tank container sector in North America is, therefore, bright. But tank container operators need to be thinking about how they will respond to rising demand and the issues that have the potential to slow uptake of tanks in the chemical supply chain. “In order to cope and be ready for an increased level of demand, we are investing heavily in systems, human resources and training to facilitate our rapid growth and maintain our unprecedented high level of customer service,” Kew states. HCB www.mslogisticsltd.com
DEN HARTOGH LOGISTICS and MOL Chemical Tankers (MOLCT) have announced a strategic partnership to jointly develop and streamline liquid chemical logistics services using tank containers, parcel chemical tankers and tank terminals.
“As strategic partners, MOLCT and Den Hartogh Logistics offer their customers in the petrochemical industry truly global supply chain solutions, which combine the tanker fleet and depots of MOLCT with the tank container fleet of Den Hartogh Logistics,” the two companies state. “These end-to-end supply chain solutions offer customers the best of both worlds, with the highest level of safety and cost effectiveness on a global scale.”
To cement the relationship between the two companies, MOLCT will acquire 20 per cent of the issued share capital of Den Hartogh Logistics’ holding company from the current sole shareholder, Den Hartogh Beheer BV.
Both companies will continue with their existing services but as capital and business partners will work together to develop a mutual global customer network, with the aim of strengthening their competitiveness as service providers in the global liquid chemical logistics market.
Pieter Den Hartogh, group managing director of Den Hartogh Logistics, says: “We are truly delighted about this alliance and innovation in chemical logistics. This strategic
partnership will combine expertise, assets and entrepreneurship to offer supply chain and endto-end logistic solutions for our customers.”
Tsuneo Watanabe, CEO and managing director of MOLCT, adds: “We are really pleased and excited about this capital and business alliance with Den Hartogh Logistics.
Den Hartogh Logistics and MOLCT shall commit to all customers that both companies continue and improve the current service provided. Therefore, further continuous support by all customers should be highly appreciated.”
MOLCT operates globally with a fleet of more than 80 parcel chemical tankers, including those operated by the newly acquired MOL Nordic Tankers (HCB
February 2019, page 11), making it a leader in the marine transport of liquid chemicals, vegetable oils and animal fats. Its fleet has an aggregate carrying capacity of 1.6m dwt, mostly in stainless steel tanks. It is a wholly owned subsidiary of Mitsui OSK Lines.
In addition, in September 2018 MOLCT formed a joint venture with SEA-Tank Terminal Antwerp, SEA-MOL, which is to construct and operate a 500,000-m³ chemical tank terminal in Antwerp at the hub of the world’s biggest chemical cluster, with commercial operations due to commence in mid-2021. That venture marks MOLCT’s aim to steadily develop towards becoming a multimodal logistics service company for the petrochemical industry, a development that is only strengthened by the partnership with Den Hartogh.
Den Hartogh Logistics, meanwhile, operates more than 19,000 tank containers in intercontinental, inter-regional and domestic trades, primarily handling liquid chemicals and gases; it also has some 7,000 dry box containers used largely in the polymer and food sectors. It operates from offices in 43 locations in 24 countries around the globe. HCB www.denhartogh.com www.molchemtankers.com
The Seaco Americas team has been focusing on establishing the infrastructure required to provide its customers with the service levels that they deserve and to position the company to expand its key activities in this important market.
relieved some strain from the depot and truck operations that support the business. However, without investment and change, the industry will continue to face driver shortages and delays at depot tank service centres moving forward. It has been observed that trade wars continue to disrupt supply chains and changing trade lanes, but not necessarily decrease volumes.
SEACO AMERICA LLC has announced the opening of a new regional office for the Americas in Houston, Texas. Since the amalgamation of Seaco and Cronos, Seaco has strengthened its presence worldwide, including in the Americas, with representation in Rio de Janeiro and Miami, Florida and now a new regional management base that includes customer service and operations in Houston.
The Port of Houston has always been the dominant US location for ISO tank shipping in North America. The regional growth in petrochemical investment in the past five to ten years - and the anticipation of further future expansion - in the US Gulf chemical industry, magnifies the importance for Seaco to be close to the business and its clients in the area. Expanding Seaco’s presence in Houston enables the company to ensure hands-on provision of its services.
The US and global market for tank container shipments have seen some softening in recent months and this has temporarily
“The market in this region is the strongest example of Seaco’s position as the most diversified container leasing company in the world,” says Peter Folkard, Seaco’s regional vice-president, sales and marketing, for the Americas. “We continue to ensure that we exhibit excellence and know-how in the region in order to serve our diversified market.”
The significant regional importance of Seaco’s tank container business and container resale activities was one of the drivers behind relocation of the regional office to Texas, the others being its central time zone and close proximity to customers, principal vendors and industry partners. At the same time, the company has retained a satellite office with commercial representation in Miami, which will continue to serve its customer base in Florida and the Caribbean. Folkard continues: “We now have an optimum balance of presence and support to our regional and global customer base as well as the more specialist tank and container sales activities.”
Seaco America has established a dedicated team of talented individuals, each of whom is highly qualified and motivated to value relationships with all business partners. Collectively, the previous careers of the Americas team demonstrate decades of experience across a wide range of industry sectors, including logistics and materials supply chain management, mining, government, defence, shipping, leasing, engineering, manufacturing, and oil and chemical transport.
Seaco was acquired by the HNA Group in 2011 and was later merged with Cronos, a Bermuda-based container leasing group. The acquisition and merger have created the second largest tank lessor in the world and fall in line with HNA Logistics’ devotion to becoming a modern logistics operator and solution provider. HCB www.seacoglobal.com
STOLT-NIELSEN LTD had a disappointing end to its 2018 financial year, which ended up with operating profit off by 3.8 per cent compared to 2017 at $187.1m, despite a 6.4 per cent increase in revenues to $2.1bn. Net profit, however, rose 7.8 per cent to $54.0m.
The chemical tanker market remains challenging, says Niels G Stolt-Nielsen, CEO. Stolt Tankers posted an operating profit of $66.6m for the year to end November 2018, down from $111.0m for the previous year, with the fourth quarter showing a sharp drop in profitability from $21.4m in the third quarter to $7.7m.
“Softness in deep-sea markets driven by deliveries of newbuildings, combined with a shift in Stolt Tankers’ product mix for the [fourth] quarter, resulted in a decrease in revenue for the period,” says StoltNielsen. This largely relates to an increase in commodity cargoes being carried by the deepsea fleet. “While there was a welcome drop in bunker fuel prices toward the end of November, the timing of the decrease resulted in a $4.1m loss on bunker hedges.”
The long-awaited return to a tighter market may be around the corner, as Stolt-Nielsen says: “Our outlook for 2019 remains cautiously optimistic. In the chemical tanker market, we expect the balance between tonnage supply and demand to improve as the year unfolds. Beyond that, if newbuilding orders remain moderate and there is an easing of trade tensions, Stolt Tankers may
finally see some healthy market conditions into 2019 and beyond.”
In the gas transport sector, Stolt-Nielsen Ltd has now consolidated its small-scale LNG activities in Avenir LNG Ltd, a jointventure established during the fourth quarter with Golar LNG and Höegh LNG Holdings in which Stolt-Nielsen owns 45 per cent of the shares. Stolt-Nielsen’s holdings in Avenir LNG, Avance Gas Holding and Golar LNG will in future be reported as a joint venture.
Operating conditions were healthier in the tank container market, where Stolt Tank Containers (STC) reported an annual
operating profit of $70.9m, well up on the prior year’s $54.5m. Profits improved in the fourth quarter, despite a 6.5 per cent decline in shipments. This was offset by a continued increase in demurrage revenue as customers continued to use tanks for storage.
“Stolt Tank Containers showed improved results once again this quarter, but the seasonal autumn pick-up in shipments failed to materialise, driven in part by increasing global economic uncertainty as the year wound down,” says Stolt-Nielsen.
Stolthaven Terminals had a stable year, although its final figures were impacted by an impairment charge of $6.1m and one-time costs of $1.7m relating to its jointventure terminals in Antwerp and Lingang. The unit reported operating profit for the year of $76.4m, up from $54.2m in 2017, though quarterly profit declined from $18.6m in the third period to $11.7m in the fourth. Utilisation rates remained steady over the second half of the year.
Looking ahead, Stolt-Nielsen says: “Ongoing initiatives to enhance utilisation and operational performance are steadily generating better results, which we expect to continue in 2019.” HCB www.stolt-nielsen.com
relief. In operational terms, Kirby reported strong demand and high utilisation levels, with rising freight rates.
“In inland marine transportation, we continued to experience strong demand and high barge utilisation levels,” Grzebinski says. “These favourable market conditions resulted in further pricing increases with spot market rates sequentially improving in the mid-to high single digit range. During the fourth quarter, we experienced a 28 per cent increase in delay days as a result of seasonal weather patterns along the Gulf Coast and lock delays which reduced operating efficiencies. Despite those challenges, inland marine delivered a slight increase in sequential revenue with operating margins similar to the third quarter.”
“In coastal transportation, we continued to witness tightening market conditions and modest pricing improvement, particularly on large-capacity vessels in the Atlantic region. As expected, however, our financial results in the quarter were negatively impacted by planned major shipyard maintenance on several large-capacity vessels,” Grzebinski continues.
KIRBY CORP HAS signed an agreement to acquire Cenac Marine Services’ tank barge fleet, which consists of 63 inland tank barges and 36 tow- and tugboats, for some $244m cash. Cenac moves petrochemicals, refined products and black oil, including crude oil, residual fuels, feedstocks and lubricants, on the lower Mississippi River, its tributaries, and Gulf Intracoastal Waterway for major oil companies and refineries. The closing of the acquisition is expected to occur late in the first quarter of 2019, subject to the usual conditions. The acquisition is to be financed through additional borrowings.
“The acquisition of Cenac’s young fleet of well-maintained inland tank barges and modern boats is an ideal complement to Kirby’s operations,” says David Grzebinski, Kirby’s president and CEO. “Cenac has a strong history of operational excellence, and is well respected by the industry
and its customers. Cenac’s inland fleet of 30,000-barrel tank barges, of which approximately 80 per cent are clean and 20 per cent are heated black oil vessels, has an average age of only four years.
Similarly, Cenac’s fleet of modern inland towboats and offshore tugboats has an average age of only six years.
“The addition of these vessels to Kirby’s fleet will not only further reduce our average age profile, but will also further enable us to avoid significant capital outlays for new vessels in the future,” Grzebinski adds.
Announcement of the Cenac deal came as Kirby reported its financial results for 2018. Net earnings fell from $313.2m in 2017 to $78.5m, largely due to higher interest costs following earlier investments and a return to a negative tax position after 2017’s one-off
“Additionally, during the quarter we impaired four older articulated tank barge units (ATBs) and one leased barge that require mandatory ballast water treatment systems under new regulations. Investing to meet this requirement in these aging barges would be financially unattractive. We expect that we will early retire these ATBs at their next shipyard dates which range between 2020 and 2023.”
Favourable market dynamics are expected to continue in 2019, with new petrochemical and pipeline capacity coming onstream and bringing additional volumes to the Gulf Coast. “These factors are expected to result in [inland] barge utilisation rates in the low to mid-90 per cent range during the year,” Kirby says. “Together with a full year of contribution from 2018 acquisitions, including Higman, Targa’s pressure barge business and CGBM’s tank barges, as well as Cenac, inland revenues are expected to increase in the low to mid-double digits year-on-year with quarterly operating margins ranging in the mid-to-high teens.” HCB www.kirbycorp.com
BARGES • KIRBY CORP, BUOYED BY ANOTHER YEAR OF STRONG DEMAND, IS EXPANDING AND RENEWING ITS FLEET WITH ANOTHER ACQUISITION
Odyssey Logistics & Technology Corp reports a 17 per cent increase in revenue in 2018, marking its 15th consecutive year of growth. The increase was driven by strong performances across multiple business segments, particularly in the intermodal and trucking businesses, the company says.
“Providing a carefully assembled and evolving portfolio of market services drove another successful year at Odyssey, further strengthening our global supply chain capabilities,” says Bob Shellman, president and CEO.
During 2018, Odyssey acquired AFF Global Logistics, a recognised leader in logistics services to Hawaii, Alaska and Puerto Rico, freight forwarding and comprehensive North American warehousing and distribution services. The $465m acquisition has been
combined with existing business units into a new Multimodal Global Solutions division.
“Investing in the future of our business helps us to continue to enhance and streamline operations, drive profitability and position Odyssey to meet the increasing demands of our customers,” says Cosmo Alberico, COO/CFO.
“Fifteen years of positive year-over-year growth is testament to Odyssey’s commitment to evolving our services enabling us to stay ahead of a dynamic industry and meet the growing needs of our customers.”
www.odysseylogistics.com
Evans Distribution Systems has opened a new warehouse in Romulus, Michigan with an initial capacity of 100,000 ft2 (9,290 m2) and space to expand to 330,000 ft2 (30,658 m2) “in
the near future”. The facility, which will be the company’s second in Romulus, has 30 dock doors and four ground level doors and is served by CSX Rail.
“We are excited about this opportunity to grow in the Detroit area,” says Leslie Ajlouny, vice-president business development at Evans.
“This additional capacity in Romulus will enable Evans to support the growth of our existing customers as well as provide new customers with flexible supply chain solutions. We hope to share more positive news in the future as we expand the services offered in this facility.”
www.evansdist.com
Mainfreight has opened a 25,000-m2 warehouse in Zaltbommel, the Netherlands, offering space for the storage of hazardous goods, including flammable liquids, aerosols and ADR limited quantity goods. The new warehouse will also provide a wide range of services, including order picking, the execution of multi-packs and display building.
The distribution centre is located on the De Wildeman business park, which is part of the Logistic Hotspot Rivierenland, and situated next to the A2 motorway. Following this opening, Mainfreight’s European warehouse footprint now stands at more than 350,000 m2.
Since then, Mainfreight has opened its first office in Japan, something that it describes as an “exciting step”. The Tokyo office will continue to develop and intensify Mainfreight’s network in the Asian region.
www.mainfreight.nl
VTG-owned Waggonbau Graaff has opened a new welding unit and work platform that will allow rail tank cars to be constructed faster and more safely than ever before. The facilities, installed at a cost of some €850,000, enable all kinds of welding work to be performed automatically. »
“The new welding unit is an investment in the long-term competitiveness of the company”, says Jörg Nuttelmann, managing director of Waggonbau Graaff. “It allows us to carry out welding work at a significantly higher rate and produce even better quality than before. The new system, particularly the improved work platform, provides our employees with an even safer working environment.”
The welding unit can perform automated welding work on tanks in a longitudinal or circumferential direction and, in future, manual welding will only be carried out in exceptional cases (such as for particularly delicate weld seams or on areas that are extremely difficult to access on special constructions).
www.vtg.com
DB Cargo UK and Maritime Transport have reached agreement in principle to combine their expertise to increase railfreight capacity and competition in the UK intermodal market. Maritime Transport has set up a dedicated division, Maritime Intermodal, to handle services out of Felixstowe and Southampton and take responsibility for DB Cargo’s terminals at Trafford Park and Wakefield.
“This is an exciting new agreement that brings together two of the largest and most successful freight companies in the UK to offer an industry-leading service to customers,” says Hans-Georg Werner, CEO of DB Cargo UK. “It will enable DB Cargo UK to focus on what it does best – the efficient and reliable running of rail freight services, while giving Maritime the platform to offer its customers further capacity to move its container traffic.
“Intermodal is the fastest growing freight market, yet our terminals were under-utilised,” Werner adds. “Maritime is a very successful logistics business and has the volumes and desire to turn these assets into sustainable and profitable distribution centres. It’s a real win-win and we look forward to working with Maritime going forward.” www.maritimetransport.com
Imperial Logistics International has made a slew of senior appointments since the turn of the year, including a new COO in the shape of Juergen Mues, who joins from SBB Cargo, where he has spent the last 13 years of his 30-year career in logistics. The appointment is part of a rationalisation of the Imperial business, which is geographically diverse
and includes operations in hazardous materials warehousing, automotive logistics, the road transport of chemicals and inland waterways barging.
Markus Kanis has been appointed to the newly created post of executive vice-president, industrial and chemical. Kanis will be based at the company’s Zurich office and report to another new appointee, CCO Sandro Knecht. “Markus is a highly accomplished and experienced international logistics, sales and supply chain management leader,” says Knecht. “He has significant experience of managing and developing global supply chain and sales solutions within multiple markets such as Industrial, Chemicals, Energy, Healthcare and Pharmaceuticals, and Aviation and Transportation. He also possesses insight that derives from many years’ work in a manufacturing environment.” www.imperiallogistics.com
RAIL RECOVERY FOR HUPAC Hupac reports that it carried 926,400 road consignments last year, a 21.4 per cent increase over the 2017 level. Much of that increase can be ascribed to a recovery in volumes following the Rastatt disruption in 2017, together with the incorporation of Hamburg-based ERS Railways, which Hupac acquired in June 2018.
Transalpine traffic through Switzerland grew by 14.4 per cent, with some 6.5 per cent reflecting the seven-week blockage of the Rhine valley route in 2017; the remainder was driven by increasing demand for semi-trailer transport. Hupac notes that the opening of the Gotthard Base Tunnel and the connection of the Busto Arsizio-Gallarate terminal at the end of 2020 will create new opportunities for modal shift.
Hupac’s also announces that its daily shuttle train service between Antwerp and Barcelona is now able to carry semi-trailers, the first time that this type of loading unit has been admitted on the Spanish network. The service started after a successful pilot project involving RENFE and SCNF and allows P386 semi-trailers to be carried on special pocket wagons. The service enters Spain on the UIC line, obviating the need to change railcars at the border.
www.hupac.ch
The new COMPACTline IBC, which Werit expects to find a ready audience among its customers that operate in a ‘just-in-time’ environment, is designed and manufactured in line with Werit’s exacting quality standards and still benefits from the leak-free piston valve that has always been appreciated by Werit customers who have moved away from the traditional butterfly valve due to the risks and costs associated with leaks.
As with any valve, constant use will eventually break down the seal, resulting in a leak. It is a common occurrence in any device that opens and closes and IBC valves are no exception.
Traditionally, IBCs have employed butterfly valves but, Werit says, these do not have a long service life; after a number of open and close operations, they are prone to leakage.
WERIT HAS LAUNCHED a new 300-litre intermediate bulk container (IBC), COMPACTline, to complement its existing range of 600, 800 and 1,000-litre IBCs, all of which benefit from Werit’s unique, leak-free and patented piston valve. The launch is a response to feedback from customers who struggle with drums across their supply chains, with this ‘mini-me’ IBC that still delivers all the handling, storage and transit benefits of a large IBC but in a smaller package.
The COMPACTline is manufactured from blow-moulded high-density polyethylene with a high strength-to-density ratio for extra protection. Offering multiple use capabilities, the new IBC is suitable for reconditioning, and its inner bottle is protected by a tubular metal frame that has been galvanised to protect against rust and provides additional against common causes of damage.
With a height of 1,040 mm, a width of 800 mm and a length of 600 mm, the COMPACTline delivers the optimum use of cargo space and offers easy handling with fork lift trucks. Additionally, the COMPACTline is easier to stack and transit due to its modular design. It offers easy tapping and best-in-class residual discharge performance and comes with a range of accessories such as DAE and Ventix lids and Adblue dip tube inserts.
The key here is that when an IBC comes to being reused, the butterfly valve will have to be replaced after only one or two uses, resulting in additional costs. In Werit’s experience, however, the valve is often forgotten about and not replaced, resulting in persistent leakages. There is an alternative solution in the Werit piston valve. This valve delivers a clean and positive cut-off even when the IBC is re-used for several cycles. The design of the Werit piston valve is drastically different from a traditional butterfly valve. When the handle is turned to the off position, the piston is pulled into the body of the valve to create a strong positive seal that prevents leakage; any contents in the IBC will push against the piston to ensure the tightest possible seal.
The Werit piston valve also has a double radial and axial seal which provides a ‘belt and braces’ approach against leakage. In essence, the piston valve is designed to last. HCB www.werit.eu
INDUSTRIAL PACK 2019, organised by Easyfairs, is set to bring together top buyers and suppliers from the industrial, in-transit and protective packaging sectors, to learn, source, procure and network. The free-to-attend event will take place in Atlanta, Georgia over two days from 27 to 28 March and will place a heavy emphasis on topics such as sustainability and recyclability.
“Sustainability is certain to be top of mind for all attendees,” says Russell
Mills, chief marketing officer at Easyfairs. “It’s a priority that impacts the entire supply chain, but there are unique demands and challenges regarding sustainability for the industrial packaging market. Throughout the upcoming Industrial Pack event there will be substantive discussions about the importance of sustainability. Presentations from leading experts will share their experience in reusable packaging so that attendees gain a better understanding of sustainable use and recyclability of industrial packaging.”
Industrial Pack has the support of the Reusable Industrial Packaging Association (RIPA), which represents more than 90 per cent of the industrial packaging reconditioning industry in North America. “It is estimated that total greenhouse gas emissions are reduced by approximately 2bn lb (900,000 tonnes) per year, based on the amount of reusable packaging already in use,” says RIPA. “RIPA believes this number could be significantly increased if industrial packaging users made concerted efforts to use greater numbers of reusable packaging.”
To kick off the conference, Chris Surovick, director of digital strategy and Ken Suwala, account director at OneMagnify, will discuss augmented reality (AR) and innovative marketing, focusing on digitally enhanced packaging and operations. The pair will assess the role of such technologies in advancing the packaging industry. According to Surovick and Suwala, when paired with an effective digital marketing plan, technologies such as AR can turn passive packaging and manufacturing components into powerful customer interactions and operational engagement tools. AR has enormous capability and there has been a rise in its use in many other industries. It is expected that these up and coming technologies will feature very heavily in day-to-day operations in the coming years.
Chris Lind, vice-chair and treasurer of the Industrial Packaging Alliance of North America (IPANA), which is also supporting the event, and chairman of the Rigid Intermediate Bulk Container Association (RIBCA), will unpack the characteristics of plastics drums, covering their historical development, manufacturing process and the procedure for proper testing and use.
This presentation will go hand in hand with two other presentations by Lind over the course of the two days, on the topics of composite IBCs and steel drums. The latter will cover the safety and security aspects of steel drums, the basics of construction and design types, in addition to testing and proper marking.
Day two will feature a presentation from J Aaron Montgomery, president of Ouray Environmental Services, who will discuss the
management of emergency incidents and how containers fall. When containers are transported, occasionally an accident may occur where the container will fall and release its contents. Montgomery will walk through why containers fall and what happens when they do, including clean-up practices, costs and regulatory requirements.
The conference will close with a presentation from Paul Griffin, technical lead for large part blowmolding in North America at LyondellBasell. Paul will discuss the basics of polyethylene manufacturing, from introductory definitions to illustrated examples, before moving on to the supply chain and resin properties.
Each presentation over the course of the two days will end with the opportunity for questions for the speaker, providing delegates with a platform for discussion and opening the floor to different points of view.
Alongside the conference, Industrial Pack’s exhibition space will not only offer an excellent
networking opportunity for delegates, but will also play host to Pack Testing Live, a unique opportunity to see packaging put to the test.
“Industrial Pack’s Pack Testing Live will be an unparalleled industry experience,” says Mills. “Attendees will have a unique opportunity to watch live demos testing a wide range of industrial, transit and protective packaging from market-leading packaging manufacturers. In the middle of the exhibition hall floor, attendees can watch product testing on strength and robustness through stimulation and non-stimulation performance tests plus live expert commentary.”
Among the exhibitors, Flöter, a specialist in protective packaging, will preview its AirWave system, which can inflate air pillows and quilted wrapping films on demand, saving precious warehouse space that is often taken up by bubble wrap and other types of packaging. Flöter will exhibit its compact AirBoy Nano3 as well as the larger AirWave2. Both systems are capable of inflating the entire family of AirWave film types, including biodegradable, recycled, heavy duty, anti-static and paper laminates.
Labelmaster, a leading expert in hazmat shipping, will be on hand to show its latest Obexion packaging, engineered specifically for shipping and storing lithium batteries and devices that contain them. The options for Obexion boxes range from basic fire
retardance with the Obexion Pro range, to enhanced thermal runaway mitigation with the Obexion Max line.
Fire-retardant, single-use Obexion Pro boxes are ideal when an added level of protection beyond a corrugated box is needed. The boxes are perfect for battery recycling companies and other applications for safely shipping recycled batteries or battery-powered devices by ground. Obexion Pro boxes enable safe shipment of lithium batteries or devices by simply packing them into an Obexion box and sealing it, with no gel packs, beads, pellets, or liners required. The boxes are designed for single use, with the large option designed to hold mixed loads of lithium ion and non-lithium batteries. The company also manufactures laptopsized and cellphone-sized boxes for the transport of single units.
Alternatively, the company’s range of Obexion Max packaging is ideal for shipping damaged, defective or recalled lithium batteries. Obexion Max packaging mitigates risk via the use of the Obexion Technology Suite, which encapsulates flame retardance, thermal management, pressure management, blast and projectile containment, flame arrestment, flammable and hazardous gas filtration and smoke filtration, all while not requiring gel packs, beads, heavy liners, pellets, or fillers. Obexion Max boxes arrive preassembled with simple, easy to use closure instructions helping users to effectively and efficiently transport the batteries in a cost-effective and compliant manner. Additionally, Obexion Max boxes are 100 per cent recyclable, non-toxic and non-hazardous.
Obexion Max packaging is the subject of a US DOT Special Permit authorising the packaging for transporting damaged, defective, or recalled phones, laptops, tablets, and batteries by ground. Singleuse fibreboard options and multiple-use metal options are available. Both packaging solutions are available in various sizes and configurations HCB www.easyfairs.com/industrial-pack-2019/ industrial-pack-2019/
INDUSTRIAL PACK OFFERS PLENTY OF OPPORTUNITIES FOR THE SHARING OF INFORMATION, IN CONFERENCE AND NETWORKING SESSIONS AND IN THE EXHIBITION HALL
SL Packaging, a producer of high-quality steel packaging systems formerly known as Sulo Emballagen, has been certified according to the ISO 22000 management system standard, marking the fourth certification for the company.
“After months of detailed work, we have succeeded in successfully implementing this ambitious project and completing it quickly,” says Friedrich Erfurth, managing director of SL Packaging. “All employees involved worked together with the highest level of commitment, of which I am very proud.” www.slpackaging.de
The Industrial Steel Drum Institute (ISDI) is this year celebrating 75 years since its formation in 1944, originally as the Steel Shipping Container Institute, and is marking the milestone with a new logo.
“For 75 years, we have kept pace with evolving technologies in the industrial packaging world,” says ISDI chairman Kyle
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Schütz (+61 8) 9336 2688
Trans-Tainer (+61 8) 8363 9799
VIP Packaging (+61 2) 9876 4822
Belgium Schoeller Allibert (+32 1) 139 3838
Brazil Mauser Packaging Solutions do Brasil (+55 11) 2168 0064
Schütz Vasitex (+55 11) 2436 3760
Canada Hawman Container (+1 705) 424 2196
Promens (+1 705) 324 6701
China Fanshun Mauser Packaging Solutions (+86 21) 5098 9982
Greif (+86 21) 6712 0088
Schütz (+86 21) 6712 0777
Denmark Horsens Emballage (+45) 7560 2744
Promens (+45) 4497 5133
Finland Finncont (+358 3) 485 411
France Linpac Allibert (+33 1) 4120 0995
Mauser Packaging Solutions France (+33 1) 4940 7800
Promens (+33 3) 8969 2000
Schütz (+33 1) 6980 5000
Sotralentz Packaging (+33 2) 9916 5100
Werit (+33 3) 885 41020
Germany Auer Packaging (+49 8075) 9133 320
Greif (+49 2234) 701 5265
Hessentaler Container (+49 791) 40700
Linpac Allibert (+49 6108) 979 116
MaschioPack (+49 2431) 948 480
Mauser Packaging Solutions (+49 2232) 781 000
Promens (+49 6205) 20990
Rikutec (+49 2681) 954 618
Schütz (+49 2626) 770
Werit (+49 2681) 80701
India Pyramid Technoplast (+91 22) 427 61500
Sintex Industries (+91 2) 688 9449
Time Technoplast (+91 22) 2857 0302
Indonesia Novo Complast (+62 21) 3333 7510
Schütz (+62 21) 2961 8080
Ireland Schütz (+353) 963 3044
Israel Mobilak (+972 8) 852 1580
Italy Greif (+39 035) 499 4611
Linpac Allibert (+39 011) 397 5759
MaschioPack (+39 02) 9096 9218
Mauser Packaging Solutions Italia (+39 02) 909 3651
Schütz (+39 030) 977 1611
Japan Kodama Plastics (+81 584) 274 141
Sanko (+81 58) 327 3596
Schütz (+81 463) 821 010
Malaysia ISC (+60 3) 3168 1481
Q Pack Industries (+60 3) 8011 2129
Schütz (+60 6) 798 0899
Mexico Mauser Packaging Solutions Int. Mexico (+52 722) 216 0875
Schütz ELSA (+52 55) 5888 0899
Netherlands Greif (+31 294) 238 911
Linpac Allibert (+32 67) 893790
Mauser Packaging Solutions (+31 162) 483700
Schütz (+31 168) 334 600
Stavig, CEO of Myers Container, General Steel Drum, Container Management Services and North Coast Container. “We have welcomed innovations, like the fusible plug, which dramatically increases the safety and security standards for storage. Steel drums remain an industrial packaging pillar to this day and we are honoured to play a role in their continued use and success. Our mission remains the same: to support and advance steel drums as an affordable, versatile, secure and sustainable packaging choice. We are as dedicated as ever to providing those in the industry with the resources they need to use steel drums, the most widely used type of industrial packaging for hazardous goods.” In other news, ISDI has presented David Sovol with an Award of Appreciation in recognition of his “extraordinary dedication and leadership” in the steel industry. “Dave is a trailblazer in the world of steel, and I am honoured to recognize his exceedingly superb accomplishments,” says Stavig. Sovol has worked in the steel industry for nearly 48 years and has been an active member of ISDI and its predecessor for 15 years, serving as chairman of its Technical Committee for a decade. He has also been heavily involved in developing standards, being responsible for writing the current ANSI regulations for steel drums and pails. www.whysteeldrums.org
Mauser Packaging Solutions has introduced what it says is the first medical waste container to be made of 100 per cent recycled plastics generated from post-consumer waste. The WIVA Infinity container, available in sizes of 30, 50 and 60 litres, has been recognised by the Dutch Standardisation Institute, NEN, in its NENnovation Awards.
“Having installed recycling centres in the US, Brazil and Europe, Mauser Packaging Solutions can generate high-quality postindustrial resin to manufacture a wide range of industrial packaging with a significantly lower carbon footprint,” says Axel Schaefer, head of product management for Mauser’s International Packaging Division.
The new product concept was successfully tested according to the UN Dangerous Goods protocols, in close cooperation with several
Norway Schütz (+47) 6282 2750
Poland Mauser Packaging Solutions (+48 513) 347050
Promens (+48 22) 779 4014
Schütz (+48 22) 846 3405
Werit (+48 71) 336 2595
Portugal Linpac Allibert (+34 93) 574 3529
Teka Containers (+351 234) 329 500
Russia Greif (+7 495) 933 5947
South Africa Mauser Packaging Solutions NCG (+27 31) 7009 572
Paradigm Packaging (+27 31) 791 0365
South Korea Clover Chemical (+82 2) 735 7575
DongWoo IBC Korea (+82 31) 671 3353
Spain Greif (+35 193) 970 8154
Linpac Allibert (+34 93) 574 3529
MaschioPack Iberica (+34 977) 524 318
Mauser Packaging Solutions Reyde Iberica (+34 93) 478 7600
Schütz (+34 902) 160 693
Werit (+34 938) 402 256
Sweden Greif (+46 346) 714 600
Taiwan Yung Hsin Contain Ind. (+886 3) 5978 918
Thailand Pack Delta (+66 2705) 41002
Schütz (+66 330) 699 11
Turkey Deren Ambalaj (+90 216) 423 5555
Mauser Packaging Solutions Turkey (+90 262) 655 6060
UK Francis Ward (+44 1274) 707 030
Linpac Allibert (+44 121) 506 0100
Mailbox (+44 161) 330 5577
Matcon (+44 1608) 651 666
Mauser Packaging Solutions UK (+44 1706) 754 980
PD Rotomouldings (+44 1691) 659 905
Schütz UK (+44 1909) 478 863
Solitec (+44 1453) 828 727
Werit (+44 161) 776 1414
USA Granger Plastics (+1 513) 424 1955
Greif (+1 740) 549 6000
Hoover CS North America (+1 800) 844 8683
IBC North America - bought by Mauser
MaschioPack North America (+1 843) 290 7811
Mauser Packaging Solutions (+1 908) 203 9500
Poly Processing (+1 866) 590 6845
Promens (+1 630) 293 0303
Schütz (+1 908) 526 6161
Australia Matcon Pacific (+71 2) 9892 4822
Belgium Linpac Allibert (+32 6) 789 3790
Canada Promens (+1 705) 324 6701
Denmark Promens (+45) 4497 5133
Finland Finncont (+358 3) 485 411
France Matcon France (+33 3) 8989 7502
Promens (+33 3) 8969 2000
Germany Hessentaler Container (+49 791) 40700
Matcon (+49 7621) 970 610
Promens (+49 6205) 20990
Rikutec (+49 2681) 954 618
Dutch authorities, such as the Inspectie Leefomgeving en Transport (ILT), the Ministry of Infrastructure and Transport, and Testing & Consultancy Packaging International (T&C PI). Mauser Packaging Solutions gained a special permit allowing the container to be used in the Dutch market and on Dutch roads. www.mauserpackaging.com
Plastik Pack has extended its range of canisters with a new 5-litre model, 5 SK7. The new canister, characterised by its excellent stacking properties, has an optimal front view strip to indicate the fill level of product. A lateral litre scale helps to dose the product and the ergonomically shaped handle and recessed grip integrated into the base ensures a user-friendly experience, claims the company. The 5 SK7 canister is also available in different weights and neck designs.
The launch follows swiftly on from the instruction of the model 5 SK3 range of 5-litre canisters for use with disinfectants and sterilisers. However, Plastik Pack says, due to its robust and resilient shape, the canister is also interesting for many other applications for which an extremely stable 5-litre container is required.
www.plastikpack.de
Grant Munro has joined Matcon as its new operations director. He will lead the operations team to ensure that they are “well positioned to consistently deliver exceptional levels of service to the company’s internal and external customers and support Matcon’s business growth strategy”.
“As an operational lead I have always believed that we need to serve our internal and external customers with the same passion and drive,” says Munro. “Achieving this will be key to building on the culture of customer obsession”. He joins Matcon after 13 years with his previous employer, SPX Cooling Technologies.
Munro’s appointment follows hard on the heels of the arrival of Ian Avery as Matcon’s new pharmaceutical sales and business development manager. www.matconibc.com
Netherlands Matcon (+31 23) 510 1080
Promens (+31 570) 660 706
UK Bison IBC (+44 1623) 798 271
Francis Ward (+44 1274) 707 030
Linpac Allibert (+44 121) 506 0100
Mailbox (+44 161) 330 5577
Matcon (+44 1608) 651 666
PD Rotomouldings (+44 1691) 659 905
Tycon Container (+44 161) 223 5252
USA Custom Metalcraft (+1 417) 862 0707
Edlon (+1 800) 753 3566
Enpac (+1 440) 975 0070
Hoover CS MH (+1 800) 844 8683
Nat’l Packaging (+1 800) 526 3786
Poly Processing (+1 866) 590 6845
Promens (+1 630) 293 0303
Remcon Plastics (+1 800) 874 7793
Snyder Industries (+1 402) 467 5221
Australia Buschutz Engineering (+61 8) 8581 1073
Trans-Tainer (+61 8) 8363 9799
Canada Hawman Container (+1 705) 424 2196
Stelfab Niagara (+1 905) 356 8683
China CCPM (+86 512) 5268 8171
Denmark Horsens Emballage (+45) 7560 2744
Finland Finncont (+358 3) 485 411
Kaucon (+358 1) 373 2332
France Métal Conteneurs (+33 2) 4749 2026
Nordtole Conteneurs (+33 3) 2721 6990
Stocklin Logistics (+33 1) 4992 1255
Germany Contek (+49 36332) 2890
Schütz (+49 2626) 770
THIELMANN (+49 7831) 77269
Werit (+49 2681) 80701
Italy Incon (+39 0183) 36237
Japan Kodama Plastics (+81 584) 274 141
Nippon Steel Drum (+81 3) 5627 2311
Malaysia ISC (+60 3) 3168 1481
Spain Reyde (+34 93) 478 7600
THIELMANN (+34 958) 406 000
UK Bison IBC (+44 1623) 798 271
Matcon (+44 1608) 651 666
Pensteel (+44 1277) 810 211
Solitec (+44 1453) 828 727
THIELMANN (+44 1924) 858 010
USA Custom Metalcraft (+1 417) 862 0707
Greif (+1 740) 549 6000
Hoover CS MH (+1 800) 844 8683
Matcon (+1 856) 256 1330
Schutz (+1908) 526 6161
Servolift (+1 973) 442 7878
Snyder Industries (+1 402) 467 5221
Titan IBC (+1 866) 294 4514
THIELMANN (+1 281) 741 8547
GREIF HAS BEEN awarded an A- score for environmental leadership by the non-profit organisation CDP, formerly known as the Carbon Disclosure Project. CDP operates a global disclosure system for investors, companies, cities, states and regions to manage the impact they make on the environment. The A- leadership distinction outpaces the overall average of a B- score, along with the North America regional average of C on a scale from A to F.
“We are thrilled that our efforts in environmental sustainability have been recognized by CDP,” says Pete Watson, president and CEO of Greif. “Environmental impact and management both factor strongly into the decisions we make as a company in the present and with our future strategy. We will continue to enhance our standing as a leader in environmental stewardship.”
The organisation awards the highest ranking of A/A- to companies that, in comparison to industry peers, demonstrate a high degree of transparency and governance in environmental management and a thorough understanding of risks and opportunities related to climate change.
Meanwhile, the company’s rigid industrial packaging and services facility in Ústí nad Labem, Czech Republic reached a significant milestone last year, producing one million steel drums. Greif’s plant manufactures small, intermediate and large steel drums with volumes ranging from 32 litres to 216.5 litres. The product portfolio also includes internally coated drums and galvanized drums.
“Production of our one millionth drum is a huge testament to the hard work and dedication of our entire team. It reflects the success of
our in-house manufacturing expertise and our focus on providing outstanding customer service,” says Roman Weiss, plant manager in Ústí. “We are really excited about the year ahead, and we are continually looking at new ideas to support and grow the delivery of high quality, industry-leading and cost-competitive products to our customers.”
Greif has also recently boosted its sales team in Germany, appointing Sven Henigschmidt and Marco Mostert as area sales managers. “Sven and Marco’s appointments are in direct response to growing market opportunities in Germany,” says Christoph Ehling, Greif sales manager in Germany (below, third from right).
“Both bring a vast wealth of industrial experience and strong relationships with customers and decision makers. Their appointments will strengthen the commercial reach of Greif’s team, helping to both stimulate and grow new business while also servicing the important needs of our existing customers. While Greif has many strengths, including its diverse product portfolio and geographic footprint, we know it is our skilled people and our valuable customer relationships which ultimately underpin our success.”
Greif operates four production facilities across Germany, in Cologne, Hamburg, Mendig and Huckelhoven. Henigschmidt will be based out of Greif’s steel drum production facility in Hamburg, focusing on serving customers in northern Germany. Mostert will be based in Cologne and is responsible for a range of clients across the country. Mostert and Henigschmidt are both rejoining Greif following time outside of the company.
These key appointments follow several new additions to the commercial team in Germany in recent months. Bernhard Hofmann was appointed to area sales manager and Sophie Hammermeister has joined as sales manager for reconditioning, as Greif continues to attract industry leading talent to support its ambitious growth plans. HCB www.greif.com
DRUMS • GREIF HAS RECENTLY EXPANDED ITS GERMAN SALES TEAM, WHILE KNOCKING UP RECORD CZECH OUTPUT AND BEING RECOGNISED FOR ITS LEADERSHIP IN ENVIRONMENTAL ISSUES
AIRSAFE TRANSPORT TRAINING PO Box 347
Cloverdale, WA 6985, Australia
T (+61 8) 9277 6968 www.airsafe.com.au
Dangerous Goods by Air –
Acceptance
• March 19-21 – Brisbane
• April 2-4 – Perth
• April 3-5 – Darwin
• April 10-12 – Adelaide
• May 2-3 – Sydney
• May 15-17 – Melbourne
Dangerous Goods by Air –Refresher
• March 18 – Brisbane
• April 1 – Darwin
• April 9 – Adelaide
• April 16 – Perth
• April 30 – Sydney
• May 7 – Perth
• May 14 – Melbourne
AMSA Full Acceptance (IMDG)
• March 22 – Brisbane
• April 2 – Darwin
• April 8 – Adelaide
• April 9-10 – Perth
• April 29 – Sydney
• May 13 – Melbourne
AMSA Full Acceptance –Refresher
• March 22 – Brisbane
• April 2 – Darwin
• April 8 – Adelaide
• April 29 – Sydney
• May 8 – Perth
• May 13 – Melbourne
Dangerous Goods by Road
• May 9 – Perth
AITAC
PO Box 146
Riddell’s Creek, VIC 3431, Australia
T (+61 3) 5428 6077
www.aitac.com.au
Sea Transport of Dangerous Goods
• April 11-12 – Tullamarine
• May 13-14 – Tullamarine
Sea Transport of Dangerous Goods – Recertification
• April 3 – Tullamarine
• May 22 – Tullamarine
Air Transport of Dangerous Goods – Acceptance, Initial
• March 25-27 – Tullamarine
• April 15-17 – Tullamarine
Air Transport of Dangerous Goods – Recertification
• March 18 – Tullamarine
• April 8 – Tullamarine
• April 30 – Tullamarine
• May 9 – Tullamarine
Dangerous Goods Driver Licence
• March 16-17 – Tullamarine
• April 13-14 – Tullamarine
• May 18-19 – Tullamarine
ATLAS COMPLIANCE
89 Devonshire Drive
Timberlea, Nova Scotia B3T 2J6, Canada
T (+1 902) 468 3371 www.atlascompliance.ca
Dangerous Goods by Air – Initial
• April 3-5 – Halifax
Dangerous Goods by Air –Refresher
• May 3 – Halifax
Dangerous Goods by Road – Initial
• April 1-2 – Halifax
Dangerous Goods by Road –Refresher
• May 2 – Halifax
Westfield Office Tower, Suite 403, Level 3, 152 Bunnerong Road Eastgardens, NSW 2036 Australia
T (+61 2) 9314 3055 www.afif.asn.au
Dangerous Goods Acceptance (Air)
• March 13-15 – Melbourne
• March 19-21 – Brisbane
• April 8-10 – Brisbane
• April 9-11 – Sydney
• May 7-9 – Sydney
• May 13-15 – Brisbane
• May 14-16 – Melbourne
Dangerous Goods Re-certification (Air)
• March 12 – Melbourne
• March 18 – Brisbane
• April 8 – Sydney
• April 12 – Melbourne
• April 15 – Brisbane
• May 6 – Sydney
• May 13 – Melbourne
Dangerous Goods Awareness (Air)
• March 15 – Melbourne
• May 28 – Sydney
Dangerous Goods by Sea –Full Acceptance
• April 3-4 – Brisbane
• May 8-9 – Brisbane
• May 20-21 – Sydney
Dangerous Goods by Sea –Recertification
• April 16 – Brisbane
• May 21 – Brisbane
• May 22 – Sydney
Shipping Lithium Batteries by Air
• May 27 – Sydney
CAMEON PO Box 17345 Edinburgh EH12 1DJ, UK
T (+44 131) 334 1929 www.cameon.com
Dangerous Goods by Air
• April 8-10 – Manchester Dangerous Goods by Air –Revalidation
• May 17 – Manchester
Dangerous Goods by Road and Sea
• May 14-16 – Manchester Dangerous Goods by Road –Upgrade
• April 11 – Manchester
Dangerous Goods by Sea –Upgrade
• April 12 – Manchester
17820 Englewood Drive, Units 14-17 Cleveland, OH 44130, USA
T (+1 440) 826 9292
www.certpack.com
Ground and Air (initial)
• March 27-28 – Cleveland
• May 8-9 – Cleveland Ground and Air (recurrent)
• March 26 – Cleveland
• May 7 – Cleveland Ground and Vessel (initial)
• March 27/29 – Cleveland
• May 8/10 – Cleveland Ground and Vessel (recurrent)
• March 26 – Cleveland
• May 7 – Cleveland
Multimodal (initial)
• March 27-29 – Cleveland
• May 8-10 – Cleveland
Multimodal (recurrent)
• March 26 – Cleveland
• May 7 – Cleveland
COMMUNICATION SOCIETY PO Box 899 Oxford OX1 9QG, UK T (+44 333) 210 2427 www.chcs.org.uk
Introduction to Basic SDS Writing
• April 3 – London
EU CLP Classification for Supply –Substances
• May 14 – Manchester
EU CLP Classification for Supply –Mixtures
• May 15 – Manchester
EU CLP Labelling for Supply
• May 16 – Manchester Advanced preparation of SDSs
• May 22 – Manchester
CLASS 7 LTD
9 Irk Vale Drive Chadderton Oldham OL1 2TW, UK T (+44 161) 628 6677 www.class7.co.uk
RamMaster Level 1 – Foundation
• April 9 – Oldham
RamMaster Level 2 – Road
Consignment and Transport
• April 10-11 – Oldham
10400 NW 33rd Street, Suite 230 Doral, FL 33172, USA T (+1 305) 871 3313
www.dga4u.com
Initial IATA & HMR Air
• April 1-3 – Doral
• May 6-8 – Doral
Recurrent IATA & HMR
• April 9 – Doral
• May 14 – Doral
IMDG Code & HMR Ocean
• May 13 – Doral
169 Affric Road
Glenrothes KY7 6XA, UK
T (+44 1592) 748234
www.dangerousgoodstrainingdts. co.uk
Dangerous Goods by Air
• March 18-20 – Aberdeen
• April 1-3 – Aberdeen
• April 15-17 – Aberdeen
• April 29-May 1 – Aberdeen
• May 13-15 – Aberdeen
Dangerous Goods by Sea
• March 21-22 – Aberdeen
• April 4-5 – Aberdeen
• April 18-19 – Aberdeen
• May 2-3 – Aberdeen
• May 16-17 – Aberdeen
PO Box 140
Botany, NSW 1455, Australia
T (+61 8) 8234 1622 http://dgair.com.au
DG by Air – Initial
• March 18-20 – Melbourne
• March 25-27 – Brisbane
• April 8-10 – Sydney
• April 29-May 1 – Adelaide
• May 13-15 – Melbourne
DG by Sea – Initial
• March 21-22 – Melbourne
• March 28-19 – Brisbane
• April 11-12 – Sydney
• May 2-3 – Adelaide
• May 16-17 – Melbourne
DGI TRAINING CENTER
1060 El Camino Real, Suite B Redwood City, CA 94063-1645, USA
T (+1 650) 306 8450
www.dgitraining.com
IATA Initial
• March 18-19 – San Francisco
• April 3-4 – Detroit
• April 10-11 – San Antonio
• April 10-11 – Seattle
• May 8-9 – Minneapolis
• May 14-15 – Chicago
IMDG Recurrent
• March 27 – Atlanta
• April 5 – Detroit
• April 12 – San Antonio
• April 12 – Seattle
• May 10 – Minneapolis
Ground Transportation (49 CFR)
Initial
• April 1-2 – Detroit
• April 8-9 – San Antonio
• April 8-9 – Seattle
• April 23-24 – Chicago
• May 6-7 – Minneapolis
Ground Transportation (49 CFR) Recurrent
• March 20 – San Francisco
• March 26 – Atlanta
• April 2 – Detroit
• April 9 – San Antonio
• April 9 – Seattle
• April 24 – Chicago
• May 7 – Minneapolis
Multimodal Initial (49 CFR/IATA/ IMDG)
• April 1-5 – Detroit
• April 8-12 – San Antonio
• April 8-12 – Seattle
• May 6-10 – Minneapolis
Multimodal Recurrent (49 CFR/ IATA/IMDG)
• March 25-27 – Atlanta
Ground/Air Shipping - Initial (49 CFR/IATA)
• March 18-20 – San Francisco
Radioactive Materials (Multimodal)
• April 25-26 – Chicago
DGM TRAINING INSTITUTE
1813 Greens Road Houston, TX 77032, USA
T (+1 281) 821 0500 www.dgm-usa.com
IATA/ICAO Dangerous Goods by Air – Initial
• March 18-20 – Houston
• March 25-27 – Atlanta
• April 1-3 – Houston
• April 22-24 – Dallas
• May 6-8 – Atlanta
IATA/ICAO Dangerous Goods by Air – Recurrent
• March 21-22- Houston
• March 28-29 – Atlanta
• April 4-5 – Houston
• May 9-10 – Atlanta
• May 9-10 – Houston
IMDG Code - Initial
• April 25-26 – Dallas
• May 20-21 – Atlanta
• May 20-21 – Houston
49 CFR Dangerous Goods by Road – Initial
• April 15-16 – Atlanta
• April 15-16 – Houston
• May 13-14 – Atlanta
Multi-Modal (Air, Road and Sea)
– Initial
• April 1-4 – Atlanta
General Awareness
• April 18 – Atlanta
• April 18 – Houston
• May 16 – Atlanta
Transport of Radioactive Materials by Air
• April 22-23 – Atlanta
Shipping Lithium Batteries
• April 19 – Atlanta
• April 19 – Houston
ENGINEERING EQUIPMENT & MATERIALS USERS ASSOCIATION (EEMUA)
2nd floor, 16 Black Friars Lane London EC4V 6EB, UK T (+44 20) 7488 0801 www.eemua.org/Training-andcompetency/ TankAssessor
• March 18-22 – Lyon
• April 1-5 – Düsseldorf
• May 13-17 – Manchester TankIntro
• April 8-9 – London
FREMANTLE TRAINING & TRANSPORT Rathmore Lodge Rathmore Road Torquay, Devon TQ2 6NY, UK T (+44 1803) 293344 www.fremantletraining.co.uk
ADR Driver Training
• March 18-22 – Plymouth
• May 13-17 – Bristol
ADR Driver Training – Tanks & Class 3 Refresher
• April 29-30 – Bristol
• May 1-2 – Plymouth
GSI TRAINING SERVICES PO Box 955 Point Lookout, MO 65726, USA
T (+1 417) 334 7060 www.gsitraining.com
Basic 49 CFR Highway Transportation
• April 22-24 – Branson, MO Air Transportation of Dangerous Goods (Recertification)
• April 25 – Branson, MO Transportation of Dangerous Goods by Water (Recertification)
• April 26 – Branson, MO
JOHN GERRISH & ASSOCIATES
500 McCormick Drive Glen Burnie, MD 21061, USA
T (+1 410) 768 8356 www.jgatraining.com
Hazardous Materials in Ground Transportation (Initial)
• March 18-19 – Glen Burnie
• May 13-14 – Glen Burnie
Hazardous Materials in Ground and Air Transportation
• March 18-21 – Glen Burnie
• May 13-15 – Glen Burnie
Hazardous Materials in Ground and Ocean Transportation
• March 18-20 – Glen Burnie
Air Force Manual (AFMAN 24-204)
• March 22 – Glen Burnie
• May 16 – Glen Burnie
Shipping Lithium Batteries by Ground and Air
• March 26 – Glen Burnie
570 Lafayette Road Sparta, NJ 07871-3447, USA
T (+1 888) 546 6511 www.lion.com
Multimodal Hazmat Shipper
Certification (49 CFR/IATA/IMDG)
• March 26-29 – Los Angeles
• March 26-29 – Denver
• April 1-4 – Las Vegas
• April 30-May 3 – Kansas City, MO
• May 6-9 – Chicago
• May 13-16 – St Louis
Hazmat Ground Shipper Certification (49 CFR)
• March 26-27 – Los Angeles
• March 26-27 – Denver
• April 1-2 – Las Vegas
• April 1-2 – Sacramento
• April 30-May 1 – Kansas City, MO
• May 6-7 – Chicago
• May 6-7 – Minneapolis
• May 9-10 – Indianapolis
• May 13-14 – St Louis
Hazmat Ground Shipper Certification - Recurrent
• May 1 – Sparta, NJ
Hazmat Air Shipper Certification (IATA)
• March 28 – Los Angeles
• March 28 – Denver
• April 3 – Las Vegas
• May 2 – Kansas City, MO
• May 8 – Chicago
• May 15 – St Louis
Hazmat Vessel Shipper Certification (IMDG)
• March 29 – Los Angeles
• March 29 – Denver
• April 4 – Las Vegas
• May 3 – Kansas City, MO
• May 9 – Chicago
• May 16 – St Louis
Shipping Lithium Batteries
• May 2 – Sparta, NJ
Complete Environmental Regulations
• March 14-15 – Salt Lake City
• April 11-12 – Chicago
IATA World Cargo Symposium
MARCH 12-14, SINGAPORE
13th global conference on air cargo www.iata.org/events/wcs/pages/index.aspx
MARCH 13, CREWE
Regular one-day CBA workshop for dutyholders www.chemical.org.uk/training-and-workshops/ cdg-practitioners-dgsa-update/
BADGP
MARCH 14, COVENTRY
Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/event-3120064
MARCH 16-20, LAS VEGAS
Biannual meeting of the Society of Chemical Hazard Communication www.schc.org/meetings
AFPM Annual Meeting
MARCH 17-19, SAN ANTONIO
American Fuel & Petrochemical Manufacturers’ annual meeting for refiners and marketers www.afpm.org/Conferences/
MARCH 18-19, MELBOURNE
Workshop on hazardous chemicals and dangerous goods compliance www.marcusevans-conferences-australian.com/ marcusevans-conferences-event-details
MARCH 18-19, DUBAI
Conference and workshop on integrity management of aboveground storage tanks www.marcusevans-conferences-middleeastern. com/marcusevans-conferences-event-details. asp?EventID=24765&SectorID=7
MARCH 19-21, SÃO PAULO
International exhibition on intermodal logistics, cargo transport and international trade www.intermodal.com.br/en
MARCH 19-21, AMSTERDAM
Chemical supply chain and logistics conference http://logichem.wbresearch.com/
MARCH 20-21, MOSCOW
Sixth annual congress and exhibition on developments in Russian and Arctic LNG www.lngrussiacongress.com/en
MARCH 24-26, SAN ANTONIO
AFPM’s annual International Petrochemical Conference www.afpm.org/Conferences/
MARCH 26-28, PARIS
Annual transport event, including inaugural Dangerous Goods Logistics Pavilion www.sitl.eu/en/Home/
MARCH 26-28, ROTTERDAM
The main annual exhibition and conference for the European tank terminal industry www.easyfairs.com/stocexpo-europe-2019/ stocexpo-europe-2019/
MARCH 27-28, ATLANTA
Meeting for code coordinators and others subject to Responsible Distribution www.nacd.com/meetings/workshops/
MARCH 31-APRIL 4, ST LOUIS
Meeting for industry, regulators and enforcers to improve commercial vehicle safety https://cvsa.org/eventpage/events/cvsaworkshop/
LNG 2019
APRIL 1-5, SHANGHAI
Nineteenth triennial global exhibition and conference on LNG www.lng2019.com
APRIL 2-4, ORLANDO
National Institute for Storage Tank Management’s 21st annual international aboveground storage tank conference and trade show www.nistm.org
APRIL 7-11, LONG BEACH
Annual forum and expo of the Council on Safe Transportation of Hazardous Articles www.costha.com
Gefahrgut & Gefahrstoff
APRIL 9-11, LEIPZIG
Trade fair for all those involved in the transport and internal logistics of dangerous goods and materials www.ggs-tradefair.com/?language=en
APRIL 9-11, MONTREUX Conference on the end-to-end pharmaceutical supply chain www.logipharmaeu.wbresearch.com
APRIL 15-17, DUBAI
11th annual meeting of logistics professionals in the Gulf Petrochemicals and Chemicals Association www.gpcasupplychain.com
APRIL 16-17, MUMBAI
Exhibition for the fine and speciality chemicals sectors, incorporating ChemLogistics India www.chemspecindia.com
APRIL 23-25, LAS VEGAS
71st annual conference and exhibition of the National Tank Truck Carriers www.tanktruck.org/meetings/
ChemUK 2019
MAY 1-2, HARROGATE
Inaugural supply chain expo and conference for the UK chemical industry www.chemicalukexpo.com/
2/12/18 Uppinangady, road tanker LPG Bharat Petroleum tanker overturned on NH 75 when driver lost control on curve; police alerted fire crews to The Karnataka, India leaking gas, ordered power supplies to be shut down; locals in 1-km radius ordered not to light fires Hindu
4/12/18 Bijnor, road tanker molasses Road tanker crashed into shop on Delhi-Pauri highway; driver fled; locals collected molasses spilling from Times of UP, India tank; several people injured after slipping on road; some molasses reached drains India
4/12/18 Oxnard, truck hydrogen Leak of hydrogen peroxide from tote (IBC) discovered when truck arrived to deliver product; two buildings VC Star California, US peroxide evacuated; most of contents thought to have spilled, some reaching storm drain
5/12/18 Borgo Quinzio, road tanker fuel Road tanker exploded at service station after arriving with delivery while fire crews were already dealing with Rai Rieti, Italy a small fire; two people killed, at least 17 injured in blast; SS4 highway closed in both directions News
7/12/18 Lagos, road tanker gasoline Road tanker exploded during delivery at Forte Oil filling station near Lagos airport; airport fire crews PM News Nigeria tackled blaze, keeping damage to a minimum; no injuries reported but fuel station was destroyed
7/12/18 nr Agbede, road tanker gasoline Speeding road tanker overturned on Lagos-Ibadan expressway, spilling 33,000 litres gasoline to road; Channels Lagos, Nigeria other drivers fled; response crews were quickly on scene, diverted traffic away from accident site TV
13/12/18 Eleme, road tanker fuel Road tanker overturned on East-West Road, reportedly after swerving to avoid pothole; tanker caught fire; Lailas Rivers, Nigeria no injuries reported News
13/12/18 Fall River, road tanker gasoline Tank truck carrying 12,000 gal (45 m³) gasoline rolled over on Route 24, falling onto another vehicle; AP Massachusetts, US tanker driver killed, other driver injured; small spill of gasoline from tanker, remainder had to be transferred
13/12/18 Greensboro, road tanker fuel Tank truck with 8,500 gal (32 m³) unspecified fuel crashed, caught fire on I-73; driver escaped with minor WTVD N Carolina, US injuries; repairs required to road surface after fire
14/12/18 Los Angeles, truck propane Box van exploded near filling station in Boyle Heights area; filling station evacuated; LAPD said blast was ABC California, US likely caused by leaking propane tank in truck; no injuries reported; investigation underway
17/12/18 Rio de Janeiro, road tanker fuel Fire broke out in road tanker discharging (more likely loading) unspecified fuel at Manguinhos oil refinery; Xinhua Brazil fire spread to other trucks but site’s responders prevented it from spreading to refinery facility, nearby shanty
18/12/18 New Waterford, road tanker diesel Tank truck with 9,000 gal (34 m³) diesel ran off road after brakes failed, overturned in stream that runs into Salem Ohio, US Ohio River; EPA, hazmat crews worked to prevent spill travelling downstream; driver hurt in crash News
19/12/18 Abule Egba, road tanker gasoline Road tanker, engaged in illegal siphoning of gasoline from tap in pipeline, spilled fuel that ignited, possibly as Vanguard Lagos, Nigeria locals collected fuel; some injuries reported as fire spread but responders prevented it reaching filling station
21/12/18 Maryland, road tanker gasoline Road tanker caught fire on Odo-Iyaalaro bridge; pictures showed fire in cab, but tanker later exploded; Daily Post Lagos, Nigeria some reports said scores of people died
22/12/18 Katari, road tanker diesel Parked road tanker caught fire at limestone mine at Sourya Cement Factory; fire spread to other vehicles; Himalayan Udayapur, Nepal cause of blaze unknown; investigation underway Times
22/12/18 Torrance, road tanker hydrofluoric Some 5 gal (19 litres) hydrofluoric acid leaked from hose during transfer from tank truck at Torrance refinery; KPCC California, US acid worker doused leaking vapour with water to prevent it spreading off-site; investigation underway
23/12/18 Kalyan, road tanker chemical Three people riding a scooter were injured by unknown chemical splashing out of road tanker on bumpy road; Times of Maharashtra, India thought that driver had probably left manlid open; scooter driver lost vision in one eye India
24/12/18 Port Harcourt, road tanker gasoline Road tanker overturned at Rumuola Junction, spilling gasoline into ditch along road; burning fuel spread Daily Post Rivers, Nigeria through area, destroying many homes; four died in the blaze, another three died later of injuries
26/12/18 Bo Luang, road tanker crude oil Crude oil leaked along Asia Highway from road tanker on way to refinery in Rayong; driver was unaware of Bangkok Ayutthata, Thailand leak, which caused 3 km-long slick on road; several vehicles skidded, overturned but no serious injuries Post
28/12/18 Oshodi, road tanker diesel Road tanker exploded on Oshodi-Apapa Expressway, opposite Biogas Industries plant; eye witnesses said Vanguard Lagos, Nigeria they saw fire before blast; cause of explosion unknown; no injuries reported
30/12/18 Ashford, freight train ammonium Four cars of CSX train derailed, rolled down hill, spilling ammonium nitrate; nearby roads closed during WLOS N Carolina, US nitrate response; hazmat crews, CSX personnel contained spill; no injuries reported
31/12/18 Abakpa, road tanker LPG Road tanker delivering cooking gas exploded at filling station; facility was destroyed, fire spread to nearby Concise Enugu, Nigeria shops and homes; no reports of casualties News
1/1/19 Blounts Creek, freight train sulphur 11 tank cars of CSX train carrying molten sulphur derailed, seven overturning; some product leaked; small WITN N Carolina, US fire reported; track owner Norfolk Southern in charge of cleanup
Date Location Vessel Substance Details
Source
26/11/18 Lukut lube oil 100-metre long slick of oil found in Sungai Pak Mail, apparently due to a valve leak on pipes under test at Bernama Negri Sem, Malaysia nearby manufacturing plant; crews from Pt Dickson and Seremban worked to mop up oil
9/12/18 Rattlesnake Bayou, crude oil “Big” oil spill in Plaquemines Parish was traced to leaking offshore wellhead; responders rapidly cleaned up WVUE Louisiana, US some of the oil, well operator dealing with source; inevitable damage to marsh and marine environment
22/12/18 off E Nusa Tenggara, Ocean diesel Product tanker (4,135 dwt, 1985) grounded off Alor district, said to have capsized; not clear if there was any Tempo.co Indonesia Princess leak of cargo but authorities said there was damage to protected marine environment
28/12/18 Java Sea, Namse palm oil Tanker (1,950 dwt, 1993), from Sampit for Jakarta with cargo of palm oil, disappeared in Java Sea; AIS data Maritime Indonesia Bangdzod showed erratic course prior to disappearance; no wreckage or pollution found Bulletin
29/12/18 off Zygi, Athlos Product tanker (7,000 dwt, 2010), in ballast, suffered explosion in cargo tanks shortly after leaving Larnaca; FleetMon Cyprus five crew thrown overboard were all rescued, two badly burned; cause possibly hot work or tank cleaning
2/1/19 off Borkum, MSC Zoe peroxides Some 270 containers were lost from containership in heavy weather in North Sea; 3 of the lost containers FleetMon Germany known to be carrying organic peroxides; one bag later washed ashore; locals asked to be alert
Date Location Plant type Substance Details Source
29/11/18 Sanford, factory nitrous Small nitrous oxide tank exploded at Sadler’s Automotive plant as worker was preparing to fill it; worker WRAL N Carolina, US oxide was killed by the blast; ceiling caved in, windows blew out; authorities investigating cause
30/11/18 Elmira, filling vapours Two workers were injured during demolition of old filling station when gasoline tank exploded; thought that WENY New York, US station they were performing hot work on tank that had not been gas-freed
3/12/18 Ratnagiri, chemical ammonia At least 14 people needed hospital treatment after inhaling ammonia leaking form Litmus Organic factory; RSOE Maharashtra, India plant plant’s owners to be charged with negligence; full investigation underway
3/12/18 Vineland, pyrotechnics fireworks One person injured by series of explosions at Pyrotecnico plant; explosions involved consumer fireworks; Daily New Jersey, US factory fire crews had to bring water in by tender as no fire hydrants near the site (!) Journal
10/12/18 Tequisquiapan, church fireworks 11 kg fireworks exploded at church ahead of celebration for the Virgin of Guadelupe; locals fled but five were El Querétaro, Mexico killed in the incident, another 55 injured; municipal authorities seized thousands of rockets illegally stored Universal
11/12/18 Ipoh, shop fireworks Six people, including the owner, were killed when fire broke out in a shop; police later confirmed that traces The Star Perak, Malaysia of gunpowder were found in the shop, indicating that fireworks were being sold illegally; investigation ongoing (KL)
12/12/18 Chamberino, pipeline gasoline More than 250,000 gal (950 m³) gasoline spilled to ditch when 12-inch line ruptured; operator Kinder Morgan KVIA New Mexico, US isolated section of line for repair; three homes evacuated; Kinder Morgan to investigate cause
13/12/18 nr Panvel, acid plant nitric acid Dozens of monkeys, pigeons were killed by leak of ‘gas’ from Hindustan Organic Chemicals acid plant near Times of Maharashtra, India wildlife sanctuary; authorities found some buried, indicating operator had tried to cover up the leak India
16/12/18 Navi Mumbai, chemical chemicals One worker killed in (dust?) explosion at MSR Biotech Nutrition plant; fire spread to drums of chemicals, Mumbai Maharashtra, India plant spread to rest of factory, which was badly damaged Mirror
16/12/18 Sapporo, office aerosols 42 people injured by explosion in building with estate agent, pub and clinic; source of blast was traced to Japan Hokkaido, Japan some 100 aerosols of deodorant awaiting disposal; leaking gas may have ignited when heater switched on Times
19/12/18 Abule-Egba, pipeline gasoline Several people hurt by explosion, fire as thieves tapped into pipeline to steal fuel; fire spread to nearby Premium Lagos, Nigeria homes, causing widespread damage Times
23/12/18 Henrietta, factory sodium Fire broke out at Orafol Precision Technology early Sunday morning; fire was contained to area of building WROC New York, US hydroxide with 800-gal (3,000-litre) sodium hydroxide tank; air, water quality being monitored but no off-site impact
25/12/18 Barabanki, house firecrackers Three people killed, several more injured by explosion at informal firecracker manufacturing unit in residential NDTV UP, India area; two-storey house destroyed; owner had licence to manufacture fireworks
25/12/18 Muncie, factory batteries Fire broke out at Eagle Battery plant, which sells reconditioned batteries; fire chief said some batteries had Star Indiana, US overheated, igniting wooden pallets; fire was quickly contained without injury Press
2/1/19 Reeves county, oilwell crude oil Three production tanks caught fire at Noble Energy well site in Permian Basin; emergency shutdown Houston Texas, US activated; wells isolated to protect pipeline system; Noble to conduct investigation; no injuries reported Chronicle
3/1/19 Kingsport, ammunition ammunition Fire broke out in building at Holston Army Ammunition Plant; responders initiated controlled burn due to Times Tennessee, US plant presence of ammunition, which led to later explosion; no workers inside at time; cause under investigation News
IN ORDER TO enhance safety and improve environmental protection, the US Environmental Protection Agency’s (EPA)
Hazardous Waste Generator Improvements rule, which took effect in May 2017, requires waste generators to identify shipments. This involves the use of the words ‘hazardous waste’ on documentation, along with a description of the container’s hazards and the date the accumulation started on each container.
Previous labelling regulations under the Resource Conservation and Recovery Act (RCRA) did not require waste generators to identify the hazards of waste accumulated in containers, tanks, drip pads and containment buildings. This resulted in a failure to communicate risks associated with wastes being accumulated or stored in different locations, which could put workers, waste handlers, emergency responders and visitors at serious risk.
Improvements rule addresses this gap in coverage by stipulating that container and tank labels must now indicate the hazards of such containers’ contents in numerous affected areas. These include areas for waste generator satellite or central accumulation; transfer facilities consolidating hazardous wastes from different generators; and generator container/tank storage areas at treatment, storage, and disposal facilities.
The rule is not prescriptive and gives generators some flexibility in achieving compliance. For instance, for drip pad and containment buildings, the generator can keep the required information in logs or records near the accumulation unit.
In addition, waste generators can indicate the hazards of a container’s contents in one of several ways, including the use of established methods such as US Department of Transportation (DOT) hazard communication, Occupational Safety & Health Administration (OSHA) hazard communication standards for statements and pictograms, the National Fire Protection Association’s (NFPA) chemical hazard label, or RCRA characteristics.
Examples of how hazards can be indicated include – but are not limited to – the following:
• The words of the applicable hazardous waste characteristics (e.g. ‘ignitable’, ‘corrosive’, ‘reactive’, ‘toxic’, etc)
• Hazard communication consistent with the DOT requirements in 49 CFR part 172 subpart E (labelling) or subpart F (placarding)
• A hazard statement or pictogram consistent with the OSHA Hazard Communication Standard at 29 CFR section 1910.1200, or
• A chemical hazard label consistent with the NFPA code 704.
According to EPA, the Hazardous Waste Generator Improvements rule provides waste generators some economic and environmental benefits. For example, it provides flexibility to very small quantity generators (VSQGs) that generate 100 kg or less of hazardous waste per month to ship their waste to a large quantity generator (LQG) under the control of the same company.
The rule also addresses episodic generation of hazardous waste. This occurs when a non-routine event, such as a product recall, results in a smaller generator – a VSQG or small quantity generator (SQG) – generating an atypical amount of hazardous waste in one month, triggering more stringent generator regulations. Under the final rule, a generator can maintain its usual generator category during a non-routine event and avoid the increased requirements of a higher generator status.
RCRA waste codes must be placed on the containers before shipping hazardous waste off site to an RCRA permitted treatment, storage and disposal facility, but do not need to be applied before that time. An electronic system, such as a bar code system, is acceptable as long as the RCRA waste code(s) are tied to the specific container.
Some states – Alaska and Iowa, for instance – are not authorised for the RCRA programme; however, they will be required to comply. If state laws need to be changed to allow for implementation of the new requirements, there is a deadline of 1 July 2019.
While waste generators have various ways by which they can communicate the hazard of a container’s contents, there are some basic common requirements. For instance, hazardous waste generator labels must also be very durable and remain attached to the container.
As a result, when it comes to printing EPA Hazardous Waste Generator compliant labels, one of the easiest ways to become compliant is for companies to use their existing printers along with appropriate printing software. For the many chemical manufacturers, distributors and end users that are already complying with OSHA’s HazComm standard
for Globally Harmonised System (GHS) labels, this means using GHS labels along with software that utilises new templates specific to the hazardous waste rules.
As an example, companies can use UltraDuty GHS Labels by Avery, a leading label brand in the industrial and office markets. Unlike typical labels, these GHS labels are industrial-grade labels designed to be chemically resistant, tear resistant, abrasion resistant, and constructed with a marine-grade adhesive that is waterproof and passes a 90-day seawater submersion adhesion test.
Using the company’s Design & Print Online software, available at www.avery.com/ ghs, employees can create, customise and print their own hazardous waste labels at their desk from pre-designed, EPAcompliant templates. Most employees find such a process intuitive, since it resembles
creating an office document from predesigned templates.
Printed labels with handwritten (Accumulation Start Date, EPA Waste Codes) or marked hazardous properties (flammable, corrosive, toxic, reactive; along with GHS pictograms) are also acceptable. Avery’s pre-printed, write-on Hazardous Waste Accumulation labels comply with this requirement.
The pre-printed labels allow easy selection of the applicable GHS pictograms or hazardous properties along with accumulation start data and content composition. These help to simplify proper labelling and are compatible with ball point pens and permanent markers. Such labels can work for a variety of hazardous waste generators, including VSQGs, SQGs, LQGs and sub-part K (Academic Laboratories). HCB www.avery.com
THE US NATIONAL Transportation Safety Board (NTSB) has issued five recommendations as a result of its investigation into a chlorine release incident involving a rail tank car at the Axiall Corp Natrium plant in New Martinsville, West Virginia in August 2016. The leak happened shortly after a tank car had been loaded with 178,400 lb (80,920 kg) liquefied compressed chlorine; the tank sustained a 42inch (107-cm) crack in its shell, releasing the entire load over the course of 2.5 hours. A large vapour cloud migrated south along the Ohio River valley, resulting in inhalation injuries. The tank in question was a DOT-105 tank car, manufactured in 1979 by ACF Industries.
NTSB notes that the Federal Railroad Administration (FRA) had warned in 2006 that these stub sill tanks were prone to defects, including cracks in several places, that had caused a number of hazardous materials releases in the past. The tank involved in the incident had undergone a five-year internal inspection in January 2016, which had identified corrosion pitting across the bottom
of the tank shell; repairs had been made at that time. The August 2016 release occurred following the first loading after the repair.
NTSB says the shell failure in the New Martinsville incident was consistent with crack propagation from a pre-existing, undetected crack, together with stresses induced by uncontrolled post-weld heat treating, shell buckling and low-temperature loading. Its report of its investigation focuses on a number of specific safety issues.
1. The general requirements for pressure tank cars in the Association of American Railroads’ (AAR) Manual of Standards and Recommended Practices says that DOT105 tank cars built after 1 January 1989 must have heads and shell constructed of normalised steel plate; however, AAR estimated that there were about 942 nonnormalised steel tank cars in use as of mid-2018, of which nearly 700 were being used to transport chlorine.
2. Industry guidance for the inspection and repair of ACF-200 stub sill attachments
and cradle pad wells is only applicable to non-pressurised tank cars. There is a need, NTSB says, for similar guidance to be available for pressure tank cars.
3. The tank car shop records show that, after extensive corrosion repairs to the interior of the tank shell, multiple attempts were made to stress relieve the repaired surfaces. However, NTSB investigators found evidence of a significantly overheated region and uncontrolled heat treatment.
4. Axiall Corp based its tank car inspection scheme on the federally required maximum 10-year interval, which NTSB says is too infrequent. Failure to examine widely recognised, damage-prone weld terminations after the January 2016 repairs, while the tank was in a facility capable of conducting such inspections, was a missed opportunity.
As a result of its investigation, NTSB has made five recommendations. It has asked the Pipeline and Hazardous Materials Safety Administration (PHMSA) to:
• Promulgate a standard for pressure tank cars in toxic inhalation hazard (TIH) service that includes enhanced fracture toughness requirements for tank heads and shells
• Prohibit the use of tank cars constructed of non-normalised steel for the transport of TIH materials
• Issue maintenance guidance to owners of DOT-105 pressure tank cars in TIH use, highlighting their risk factors and establishing structural integrity inspection frequency.
NTSB also recommends that AAR revises its Manual of Standards and Recommended Practices (M-1002) to ensure that local postweld heat treatment processes are monitored to avoid damage.
NTSB recommends that American Railcar Industries develop inspection and maintenance procedures to address cracks in cradle pad weld attachments on pressure tank cars equipped with ACF-200 stub sill underframes. HCB
The full text of the investigation report can be found on the NTSB website at www.ntsb.gov/ news/press-releases/Pages/mr20190214.aspx.
THE UN ECONOMIC Commission for Europe’s (ECE) Working Party on the Transport of Dangerous Goods (WP15) held its 105th session in Geneva on 6 to 9 November 2018; it was chaired by JA Franco (Portugal) with Ariane Roumier (France) as vice-chair.
The meeting was attended by representatives of 26 countries, participants from seven others, the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF) and three non-governmental organisations.
The meeting was comparatively brief but nevertheless did adopt some amendments
to the annexes to the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR) for entry into force in 2021. The meeting took place before the final biennial session of the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG), which will doubtless generate many more amendments in the two sessions of WP15 scheduled to take place in 2019.
Since the previous session, Nigeria had acceded to ADR, bringing the number of contracting parties to 51.
The Working Party made its usual appeal to those countries that have not yet deposited the required legal instruments for the Protocol of amendment of 1993 to take the necessary measures, so that it can come into effect.
The previous session had agreed that the current title of ADR should be amended, deleting ‘European’. To do so, a Conference of the Contracting Parties to ADR will need to be held during the 106th session, scheduled to take place in mid-May 2019. This Conference will be subject to the agreement of at least one quarter of the Contracting Parties, i.e. 13 states, within four months. The secretariat invited those countries that support the proposal to send their letters of concurrence as soon as possible and, in any case, no later than 13 February.
Austria aired some concerns about the potential consequences of opening ADR up to countries outside the ECE region, albeit there are a number of such contracting states already. It could be that issues involving transport operations in developing countries could take up a lot of time in WP15’s sessions, making it difficult to find time to discuss safety-critical issues; and, while European countries find it relatively easy to attend meetings in Geneva, this might not be the case for representatives of other states, particularly poorer countries, increasing the potential for sessions to be inquorate.
These concerns were noted but the overriding mission has to be the role of ADR
ROAD • WP15 HAS BEGUN WORK ON THE 2021 TEXT OF ADR BUT IT HAS A LOT ON ITS PLATE RIGHT NOW, NOT LEAST THE EXPANSION OF ITS REMIT TO COUNTRIES OUTSIDE EUROPE
as one of the UN’s legal instruments that can contribute to improving road safety around the globe. If problems do arise, there is the potential for WP15’s procedures and rules to be amended.
A representative of the EU-funded EuroMed Transport Support Project gave an update on developments. This seeks to improve the transport infrastructure and regulatory convergence of the countries of northern Africa and the Levant. Of those, Morocco and Tunisia are already ADR contracting states and one aim of the EuroMed project is to help others to prepare to accede to ADR. As such, representatives of Algeria, Egypt, Jordan, Lebanon and the State of Palestine presented the activities currently under way in their respective countries, while representatives from Morocco and Tunisia provided an update on the status of implementation of the Agreement in their countries.
The Working Party took note of the ongoing discussions between EuroMed, the Economic and Social Commission for Western Asia (ESCWA) and the Linguistic Services of the Office of the United Nations in Geneva, for an agreement to translate the ADR into Arabic and welcomed this initiative as it would facilitate accession of some countries.
The secretariat provided summaries of the decisions taken by the Joint Meeting of RID/ ADR/ADN Experts at its spring and autumn 2018 sessions (HCB June 2018, page 76; February 2019, page 70).
The extensive amendment of Chapter 6.8 was adopted in square brackets; the Working Party noted that work on standards related to 6.8.2.1.18 was still ongoing and it was considered premature to adopt it formally.
The guideline proposed by the Joint Meeting relating to the early application of EN 12972:2018 was adopted; the Working Party asked the secretariat to publish the guideline on the UN ECE website to encourage its use. [This is now available at www.unece.org/trans/danger/publi/adr/ adr_guidelines.html.]
The other amendments adopted by the Joint Meeting were all agreed, for inclusion in the 2021 edition of ADR. These included:
• New transitional provisions for fibrereinforced plastics (FRP) tanks at 1.6.3.100.2
• Addition of ‘unloader’ to the list of those responsible for submitting incident reports in 1.8.5.1
• Clarification of the classification of used articles containing halogenated compounds (typically transformers and condensers) in 2.1.3.4.3
• A new special provision 675, assigned to UN 2211 and 3314, prohibiting the mixed loading of packagings containing those substances with substances and articles of Class 1, other than 1.4S
• A new hazard identification number, 836, for corrosive, flammable and toxic substances, initially assigned to UN 2683
• Various new and updated standards applicable to gas cylinders and tanks for the transport of dangerous goods
• Numerous consequential and editorial amendments.
The Working Party also noted the work done by the secretariat to identify all references to competent authorities in ADR and to determine which competent authority or authorities are relevant to each case. An informal working group was to handle this work, but the Working Party felt it important that it should also be involved, taking into account the outcome of that informal working group.
The secretariat had also provided a list of instances where the term ‘competent authority’ appears in Parts 8 and 9 of ADR – the sections that are specific to road transport. The Working Party invited the secretariat to submit this in the form of an official document for the next session, so that the necessary changes can be made.
The UK proposed to include in ADR a waiver for the first inspection of EX/II, EX/III, FL and AT vehicles and mobile explosives manufacturing units (MEMUs) until the first anniversary test, following a two-year trial in the UK that showed a very low number of issues. Out of the 642 vehicles covered by the trial, which ended in September 2018, only six failed their first anniversary test, of which only one failed on ADR grounds – and this was due »
to an unauthorised modification carried out after the vehicle entered service.
Delegations who took the floor were not in favour of allowing competent authorities to waive the first inspection; most considered that the first inspection often detects nonconformity as regards the equipment of these vehicles. As a result, the UK delegate withdrew the proposal.
France reported problems of compliance with the new requirements introduced in 2017 regarding ISO standards for the conformity of cables used in different electrical circuits on road vehicles. It appears that there are problems obtaining supplies of such cabling – some manufacturers require a minimum order of 100 km, which is rather a lot for the average tank vehicle manufacturer. In addition, the cables have no specific marking, making it impossible for an inspection to verify compliance. France also
noted that the requirement had extended coverage to EX/II vehicles, which had not previously been in scope, meaning that vehicles may have to be completely rewired.
Some delegations felt that the transitional period provided had been sufficient to implement the provisions. It was also deemed unfortunate that there were no representatives of the manufacturers present to assist the discussion. France said it would coordinate with other countries that are experiencing similar problems and may submit a formal proposal in the future.
The Netherlands opened discussion on the potential future use of electric and hybrid heavy trucks in the transport of dangerous goods and how this should be dealt with in ADR. The Working Party agreed that there is a need to start looking at this, although some delegates considered that the issues raised by the Netherlands were beyond the scope of ADR and should instead be addressed by the World Forum for Harmonisation of Vehicle Regulations (WP29). It might be more appropriate to allow WP29 to set the overall parameters for such vehicles before
considering aspects specific to the transport of dangerous goods.
The representative of the Netherlands invited delegations to provide feedback on the issues raised and offered to act as a focal point for ongoing discussions and comments.
MISCELLANEOUS PROPOSALS Germany returned with a formal proposal to amend the Instructions in Writing by changing ‘8 or 9’ in footnote b of 5.4.3.4 to ‘8, 9 or 9A’. The proposal also included a two-year transitional provision. This proposal received the same response as had its earlier informal document on the same subject: some delegations queried whether the value of the equipment mentioned in note b would be of any use in an incident involving lithium batteries, and there has been great reluctance to change the text of the Instructions too often.
Romania reminded the Working Party that the Joint Meeting had set up an informal working group to look at the definitions of ‘risk’ and ‘hazard/danger’ and that its work, which will be presented at the spring 2019 session of the Joint Meeting, would include
proposals for amendment of the Instructions in Writing. The representative of Germany said she would liaise with Romania and consider submitting a revised proposal.
Another paper from Germany, again following up on discussions at the previous session, sought to allow additional information to be included on the back of the ‘ADR Card’ – the driver training certificate –or to amend 8.2.2.8.5 of ADR. Once more, the proposal included a transitional provision.
This time there was general support for the idea, though some suggested making the additional item optional, in which case there would be no need for a transitional provision.
Germany will take the comments made into account in the framing of a revised proposal for the 106th session.
Belarus sought to align the texts of 6.8.2.4 and 6.8.2.5 with respect to tank marking; these sections refer to inspections, tests and checks and Belarus felt that, in 6.8.2.5.1 in particular, ‘test’ should be replaced by ‘inspection’. The Working Party noted that this would apply to all modes of transport and so should be discussed by the Joint Meeting; the Belarus representative said a proposal would be submitted to the spring session.
Switzerland proposed amendment of 9.1.3.4 to clarify the approval term of a certificate of approval issued before the expiry of the previous certificate. Its paper delved back into the history of the text of 9.1.3.4, which resulted from a proposal by the Netherlands in 1995 (and appeared as marginal 10282 (4) in the 1997 edition of ADR). Conflicting opinions were expressed and some delegations thought this a matter for the Joint Meeting.
Switzerland will consider the comments made before tabling a revised proposal.
Another informal document from Switzerland sought an exemption from the requirement to carry firefighting equipment in the case of excepted packages of radioactive material consigned in the post. Its paper said that many postal delivery vehicles are not equipped with a 2-kg fire extinguisher, which is a requirement of 1.1.3.6.2.
Most delegations were opposed to such a move; they could see no reason why postal vehicles should not be able to carry a fire extinguisher and noted that the requirements
in 1.1.3.6.2 apply to all vehicles carrying dangerous goods, regardless of the nature of those goods. The Swiss delegate was not swayed by the arguments and said a formal proposal would be forthcoming.
The International Road Transport Union (IRU) proposed allowing e-learning as part of the refresher training required by 8.2.2.5.2 of ADR. Other delegations shared their experience with online training and e-learning and there was a general understanding that new training technologies could be beneficial, although only in combination with teacher-led training.
The representatives of Tunisia and EuroMed drew attention to the potential difficulties of providing e-learning courses in some countries, especially if mandatory provisions were to be adopted.
Some delegations reminded the meeting that this topic had already been discussed on several occasions, both by the Working Party and the Joint Meeting; in the end IRU was invited to submit a proposal to the spring 2019 session of the Joint Meeting.
The UK felt it would be useful, especially when interpreting the exemptions available for the carriage of gases, to define the unit Nm³ used in the table in 1.1.3.2; an appropriate footnote was offered. There was a general feeling that the idea was justified, although France felt that the definition should be added in 1.2.2, where other units are defined. The UK was invited to submit an official proposal at the next session.
Another informal document from the UK dealt with UN 3316 chemical and first aid kits. Following the revised entry for such kits in the 2019 text, there is now no means of assigning a transport category to those kits for which a packing group cannot be assigned. However, a transport category is still required on the transport document to allow carriers to correctly assess their loads for compliance with the provisions of 1.1.3.6. The UK’s suggested solution was to assign such kits to transport category 2.
While there was general support for the proposal, Austria pointed out that it could mean that similar kits including articles to which a packing group is applied could end up in transport category 3. The Working Party also confirmed that the proposal could »
not be considered as a correction to the 2019 edition of ADR and invited the UK to present a formal proposal to the spring 2019 Joint Meeting.
An informal document from Finland and Sweden sought to initiate discussion of the restriction in 8.1.1 that states: “A transport unit loaded with dangerous goods may in no case include more than one trailer (or semitrailer).” The two countries are party to a multilateral special agreement, M304, which allows for more than one trailer; commonly this involves the tractor unit, a dolly axle and a semi-trailer. M304 and earlier agreements have been in force for more than ten years with no reported safety-related incidents or accidents in Finland or Sweden. Is it time, perhaps, to extend this permission to ADR?
Opinions were divided; some delegations were strongly against the proposal, others supported it, but not for tank trailers; some were of the view that these vehicle combinations should be limited to domestic transport. The representatives of Finland and Sweden took note of the comments
made and said they would consider how best to proceed.
Austria reported on problems it was experiencing with ADR driver training certificates during roadside inspections. Ideally, such certificates can be compared against specimens published on the UN ECE website but not all countries have specimens on that site and other problems occur when model certificates are amended. Austria sought the Working Party’s views and an exchange of information.
The Working Party reminded the contracting parties of their obligations to provide the minimum information on the competent authorities and their models of driver certificates for publication on the UNECE website to ensure mutual administrative support between contracting Parties.
Germany proposed a correction to Table A of Chapter 3.2 where column (15) against UN 3363 has no information. This should, Germany said, include a dash ‘(-)’ in accordance with the explanatory note. As the proposal had been submitted late and in an informal document, several delegations felt unable to make a decision. Germany was invited to return to the 106th session with a formal proposal.
Georgia sought assistance in applying the provisions of 1.1.3.1(c) in its domestic legislation, in particular the phrase: “Carriage undertaken by such enterprises for their supply or external or internal distribution does not fall within the scope of this exemption.”
The opinion of most delegations was that transport of dangerous goods to or returns from working sites (for example building or civil engineering sites) by the workers who use them is exempted. Switzerland said it would share the interpretation it uses at national level and other delegations were invited to do the same.
Another informal document from Georgia sought clarification of the term “other articles of consumption” in 1.4.3.1.1(e); it thought this to be rather broad and invited an accurate definition of what is covered. Most of the delegations that took the floor agreed that the existing text lacked clarity and could be interpreted in different ways. Since it was also relevant to other modes of transport, the representative of Georgia was invited to submit a document to the spring 2019 session of the Joint Meeting.
The Netherlands invited opinions on the applicability of 9.2.2.9 to electronic equipment
in the driver’s cab of FL vehicles. The cab is classified as a Zone 2 area where explosive atmospheres may occasionally be present. The electronic equipment found in the cab – toll boxes, radios, mobile phones, and so on – generally work on relatively low voltages and low currents. However, finding such equipment that meets the requirements of IEC 60079 is difficult and, when available, it is very expensive. Should, therefore, electronic equipment be regarded as part of the electrical installation on a vehicle?
The Working Party referred the representative of the Netherlands to discussions that had taken place on that subject at its 90th session; it also noted that the TDG Sub-committee was engaged in ongoing work on the development of provisions for data loggers and other equipment and that several documents on this topic would be discussed at its upcoming session.
There were also two papers relating to the correct wording in the Russian text of ADR, together with three other informal documents that had to be held over to the next session due to lack of time.
In a lengthy informal document, Sweden reviewed the provisions in Chapter 8.5
concerning the supervision of vehicles and sought a discussion of the minimum level of supervision that is considered acceptable and how the text of ADR could be amended to make this clear. It had raised the issue at the previous session and, since then, had distributed a questionnaire to find out how the various contracting parties approach the issue. Several delegations welcomed the work that Sweden had done but considered that more was needed before any concrete proposals for amendment to Chapter 8.5 could be developed. The EU representative highlighted the fact that any decisions taken for ADR could have an impact on regulations addressing other modes of transport and urged the Working Party to keep this in mind. After discussion, the representative of Sweden said that she would continue the work on this topic and would consider submitting an official document to the 106th session.
Delegations that wished to provide further comments and answers to the questions raised in the responses to the questionnaire were invited to share them with her.
Romania reported on the work it had carried out to develop a consolidated table of the applicable provisions of Part 9 of ADR for the technical inspection of EX/II, EX/III, FL and AT vehicles and MEMUs. The Working Party strongly supported the results of this »
work and asked the secretariat to publish the resulting guidelines on the UN ECE website. It was noted that the guidelines for completing the certificate of approval according to 9.1.3 might need to be updated to take account of the latest revision of ADR.
France offered up a suggestion to create a library of interpretations made by the Working Party, to be made available on the UN ECE website. It acknowledged that this might be a quite substantial task and sought the Working Party’s views on how best to go about it.
The Working Party thought this would be a good idea; for future interpretations, it was suggested that the authors of the requests could prepare a consolidated, detailed text of the outcome.
Italy provided a report on the major incident that had taken place at the A1/A14 junction near Bologna on 6 August 2018.
An LPG tanker ran into the rear of a truck carrying solvents, which had stopped in traffic; the tanker driver was killed in the collision. The solvents caught fire and, after a few minutes, the blaze spread to the tank of the LPG tanker, causing a boiling liquid evaporating vapour explosion (BLEVE).
Aside from the driver who was killed, 95 people were injured, including emergency personnel. The road was badly damaged, with part of the flyover collapsing onto the parking area of a car dealership.
The representative of Italy said he would seek advice from WP29’s Working Party on Brakes and Running Gear and the Joint Meeting’s informal working group on the reduction of the risk of a BLEVE. Investigation of the accident is ongoing and a full report will be submitted to the secretariat in due course.
Germany reported on the outcome of the second meeting of the informal working group on clarification of 9.3.4.2, which took place in Bonn on 1 and 2 October. The working group had determined that, in general, sparking and electrostatic discharge do not pose a risk in the transport of explosives, so long as the explosives are packaged in conformity with the regulations. However, the working group felt it appropriate to set a limit value for the internal temperature of EX/III vehicles. A final report of the meeting will be prepared in time for the next session.
The 106th session of WP15 will he held from 13 to 17 May. As José Alberto Franco was due to retire shortly and was participating in the Working Party for the last time, Ariane Roumier was elected to chair the Working Party for 2019, with Alfonso Simoni (Italy) appointed vice-chair. HCB
THE RID COMMITTEE of Experts’ standing working group held its tenth session in Kraków, Poland this past 21 to 23 November. The meeting was attended by representatives of 20 contracting states as well as Russia, which is a member of the Intergovernmental Organisation for International Carriage by Rail (OTIF) but does not apply RID. Also in attendance were representatives of the European Commission (EC), the EU Agency for Railways (ERA), the Organisation for Cooperation of Railways (OSJD) and six nongovernmental organisations. The meeting was chaired by Caroline Bailleux (Belgium) with
Colin Bonnet sitting for the last time as deputy chair.
As was the case with their counterparts at WP15 (see page 76), the RID experts faced a relatively light agenda as the meeting took place ahead of the final meeting of the 2017/18 biennium of the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG), which adopted the amendments that will appear in the 22nd revised edition of the UN Model Regulations only in December.
The standing working group’s first task, therefore, was to look at the decisions made by the Joint Meeting of RID/ADR/ADN experts at its autumn session in September 2018 and adopt those relevant to the transport of dangerous goods by rail.
There had been a number of new and revised ISO and EN standards that the Joint Meeting had been unable to adopt for the 2019 texts of RID, ADR and ADN, as they had not been finalised in time. At its autumn session, the Joint Meeting decided to hold them over to the 2021 texts, but with a one-year transitional period.
There was one exception: EN 12972:2018. The competent authorities were encouraged to apply this as soon as possible and no later than 1 January 2020, and a guideline for its application has been published on the UN Economic Commission for Europe’s (ECE) website. The OTIF secretariat supplied the standing working group with a corresponding draft for inclusion on the OTIF website, which was agreed.
As to the remaining standards in question, the RID Committee of Experts had already approved their inclusion at its meeting in May 2018. The formal requirement for referencing these standards in the 2021 edition of RID had therefore been met and it is possible for national competent authorities to approve their early application.
Those standards are: EN ISO 17871:2015 + A1:2018, EN 1440:2016 + A1:2018, EN
16728:2016 + A1:2018, EN 13317:2018 and EN 14025:2018.
There followed a lengthy discussion on the general issue of referencing standards adopted by the Joint Meeting. RID 6.2.5 and 6.8.2.7 already allow competent authorities to recognise a technical code to reflect scientific and technical progress, if no standards are referred to in RID or to take account of certain aspects not covered by a standard referenced in RID. In such cases, the competent authority must notify the OTIF secretariat that such a technical code has been recognised; this information is then published on the OTIF website.
The secretariat proposed an amendment to 1.1.4.4.3, regarding the marking of trailers in piggyback transport, having noticed that it makes no provision for the limited quantity mark on trailers that are carried separately from the tractor unit. Where road vehicles bearing placards, marks or orange-coloured plates in accordance with Chapters 5.3 and 5.4 of ADR, those must be affixed to both sides of the trailer, as such marks and plates on the rear may be obscured by a second vehicle being carried on the same wagon. However, there is no mention of marks in accordance with Chapter 3.4 of ADR.
After some discussion and amendment to the secretariat’s proposal, the working group adopted the following new text for 1.1.4.4.3: If a trailer becomes separated from its tractor unit, the orange-coloured plate in accordance with 5.3.2 of ADR and the mark in accordance with Chapter 3.4 of ADR affixed at the rear of the trailer shall also be affixed to its front. However, the orange-coloured plate need not be affixed to the front of the trailer if the corresponding placards are affixed to both sides.
The Secretariat asked the standing working group whether dangerous goods not approved for carriage in limited and exempted quantities should be allowed for carriage as express goods. If not, then the CE codes for these goods in column 19 of Table A should be deleted.
In the course of discussion it became apparent that contracting states take different approaches. For instance, there has been no such carriage in Germany and Austria for several years, whereas it is still common in Switzerland and the UK, particularly for infectious substances moving between laboratories and Class 7 material for pharmaceutical purposes. It was also noted that the carriage of dangerous goods as express goods does not enjoy any relaxation in terms of packaging requirements.
The standing working group decided not to take a decision at this point, although it may reappear on the agenda in the future.
The autumn 2018 Joint Meeting made some changes to the obligations of the participants involved in an incident who are required to submit an accident report, as found in 1.8.5.1. Discussions at that point had revealed some differences in the various language versions and a paper from Spain sought to resolve how the Joint Meeting’s changes should be dealt with in RID.
The representative of Spain said that the understanding in his country is that all parties involved in an accident or incident should submit a report; most delegations, however, felt that only the participant directly involved at the time of the accident should submit a report. It was also clear that different countries regard the role of the railway infrastructure manager in different ways.
The standing working group decided against extending the list of participants in 1.8.5.1 who are required to provide an accident report; however, it was agreed to await the findings of the Joint Meeting’s informal working group on
the improvement of accident reporting and, if necessary, come back to the topic at a future session.
A report on the 16th session of the working group on tank and vehicle technology, which had taken place in Kraków immediately prior to the meeting of the standing working group, was presented by Rainer Kogelheide, chair of the working group. It had looked mainly at the new breed of extra-large tank containers developed by BASF.
The European Chemical Industry Council (Cefic) was engaged in ongoing risk assessment; the working group on tank and vehicle technology agreed to this approach, on condition that the trials met the requirements of the Common Safety Method on risk evaluation and assessment (CSM). It was anticipated that a final report should be available by the end of July 2019.
The standing working group decided to await this report and to hold further discussions at the next session of the working group on tank and vehicle technology. Meanwhile, the secretariat advised the meeting that the new Joint Coordinating Group of Experts (JCGE), which was due to hold a preparatory meeting in February 2019, would also be looking at extra-large containers.
The working group on tank and vehicle technology had also been looking at stresses in railway operations in accordance with 6.8.2.1.2. It proposed amending the report of the standing working group’s second meeting, which included an explanation of footnote 1 to that paragraph. The standing working group disliked that idea but did agree to state that, contrary to that earlier comment, when calculating the tank-wagon in accordance with standard EN 12663, for the stresses on the tank, the strength values according to EN 12663 and not according to the standard for calculating the tank (EN 14025) must be taken into account. This corresponds to the usual practice of tank wagon manufacturers.
The representative of the Netherlands informed the standing working group of the »
results of the second session of the informal working group on checklists for the filling and emptying of tank-wagons for liquids, which had taken place in The Hague in September 2018. The standing working group made some editorial changes to proposed amendments to 1.4.3.3 and 1.4.3.7 and adopted them.
In 1.4.3.3, the Notes to (a) and (f) are deleted and the Note at the end is amended to read: The filler shall establish procedures to ensure that he fulfils all his obligations. Guidelines in the form of checklists for tank-wagons for liquids and gases are available on the OTIF website (www.otif.org) to help the filler of tank-wagons for liquids and gases fulfil his safety obligations, particularly with respect to the leaktightness of tank-wagons.
In 1.4.3.7, the Notes to (b) and (d) are deleted and a corresponding change is made to the Note at the end, except that it deals with the obligations of the unloader.
The secretariat provided an update on the harmonisation of SMGS Annex 2 with RID; it was anticipated that the 2019 version of SMGS Annex 2, harmonised with RID, would enter into force on 1 July 2019.
The representative of Russia gave a presentation on the key differences between RID and GOST in terms of the requirements for the manufacture, equipment, design and testing of tank-wagons; the Russian rules have to take account of the wider track gauge, operations in ambient temperatures down to -60˚C, and the practice of gravity sorting of freight cars.
It was noted that, in special provision TE 22 of SMGS Annex 2, the value for the minimum energy absorption of the energy absorption elements at each end of the wagon for tankwagons with an automatic coupling device had been increased from 130 kJ to 140 kJ. The secretariat was asked to prepare a proposal to amend TE 22 in RID for the next session.
The International Union of Wagon Keepers (UIP) drew attention that innovative wagons
fitted with automatic coupling devices were being tested in Germany in Switzerland.
The energy absorption requirement for conventional tank-wagons in TE 22 is 800 kJ and it might be a good idea to check whether the substantially lower value of 140 kJ was sufficient for tank-wagons with automatic coupling devices. The ERA representative was to deal with this issue at the new JCGE.
The representative of Russia raised the possibility of developing a new Chapter 6.X in SMGS Annex 2 to contain all the provisions for 1520-mm gauge tank-wagons and aligning both columns of Chapter 6.8 of SMGS Annex 2 with Chapter 6.8 of RID. Russia and Latvia both felt that there would be value in RID adopting the new Chapter 6.X with provisions for 1520-mm gauge tank-wagons, as tankwagons of both gauges are in use in some RID contracting states.
The ERA representative provided an update on the Agency’s work, as is now a regular feature of the standing working group’s agenda.
Much of the report was taken up with the ongoing work on the inland risk management framework and the development of a risk management platform. An important action has been completed: defining business needs and the impact assessment of an IT tool to aid users in the implementation of the framework guides.
The result of the impact assessment clearly shows that a Risk Management Platform is highly recommended as it would solve the issue of non-comparability of risk estimations and would drastically facilitate the implementation of the framework without creating significant negative impacts to stakeholders. It also shows that the maintenance and operation of the platform might be easily covered with small fees charged to the users.
However, ERA lacks the budget to start developing the platform at present. The Agency is happy to look at potential
collaborations in order to spread the cost of the platform development.
The chair of the standing working group regretted that lack of funding; the ERA representative stated, in effect, that if member states think this work is important, they should be prepared to come up with the necessary financing.
ERA’s report also gave some information on recent accidents. In the year to end October 2018 it had received 212 investigation notifications, of which 33 were final reports; four events involved dangerous goods and/or tank-wagons: two in Romania and one each in Finland and the UK. The representative of Germany reported that there had been two incidents involving composite brake blocks (LL brakes) in his country in recent months and that this seemed to be a problem at present; he welcomed the work being undertaken by the Joint Network Secretariat (JNS) Panel, which has set up a task force on wagon braking systems to tackle exactly this issue.
The secretariat had prepared a list of the most important results of the recent session of WP15 for information. It also provided information of the preparatory meeting of the JCGE, scheduled to take place from 6 to 8 February in Berne; the chair asked the secretariat to provide input to that meeting on the basis of some of the discussions by the standing working group.
Given Colin Bonnet’s impending change in career, the standing working group elected Othmar Krammer (Austria) as deputy chair until further notice.
The 11th session of the RID Committee of Experts’ standing working group has been provisionally scheduled for the week beginning 25 November 2019; it will begin work on transposing the amendments in the 22nd revised edition of the UN Model Regulations into RID for entry into force in 2021. HCB
A woman in Calgary, Alberta got more than she bargained for on Valentine’s Day last month, when she heard an explosion upstairs. Going up to take a look, she found the bathroom door had been blown off its hinges and some towels were on fire.
A fire investigator found that a hair dryer, left plugged in, had created enough heat for a nearby aerosol can of dry shampoo to “explode with substantial force”. It is not clear if the hair dryer malfunctioned or whether it was just a ruse to get some hunky firemen round.
Calgary police observed that, while there were no injuries, there was “a lot of embarrassment”. They also said it was the second time in two weeks that they had responded to an aerosol-related incident. The previous week they were called out after an explosion in a garage where children were using spray cans – to do what, we are not told.
Another call-out to an out-of-the-ordinary house fire was reported in California in late January. There, the Oroville Fire Department was called to what reports termed “an unusual structure fire” at a single family home, where there was a small fire on the back porch.
Fire crews found the blaze involved a pile of about 8,000 small batteries, which is rather more than might usually be needed in household applications. They were told the batteries were to be used as part of a business venture. [Are these the knock-off batteries that cause so many problems in the post? – ed.]
The fire was put out quickly but the county hazmat crew and public health officials had to be called in to deal with the toxic debris before the family was able to return home.
Another potential house fire was narrowly averted in Tuckahoe, New York in February. Police were called to deal with a loose pit bull terrier running around; on arrival, the dog led them on a chase back to its home, where the police saw a sliding door open and the unmistakable smell of gas.
It turned out that there had been a gas leak and gas was accumulating inside the house. The dog, Sadie, had tried to get out of the house through the front door but, it being locked, she made it out of the back and raised the alarm.
Finally, thanks to the Darwin Awards, from where we bring you a tale of innovation gone wrong in New Zealand in September 2018.
A professional welder, with an unwarranted self-image as an innovator, arrived to help a friend weld a new exhaust pipe onto his old car. The welder’s innovation was to pre-mix acetylene and oxygen in an old LPG tank in order, he thought, to speed up the process.
His friend, while not an expert, recognised that having the two gases mixed and no flow regulator on the cylinder was a recipe for disaster. He tried to warn the welder, to no avail, and then ran out of the shed they were working in. On lighting the torch head, the cylinder exploded, flattening the shed and igniting bottles of paint thinner and gasoline. Needless to say, the welder was killed and his friend now needs a new car.
