Letter from the Editor

EDITOR’S LETTER

There has been an ‘E’ in ‘SHEQ’ for decades now, so there can be few companies that do not give at least some thought to the impact of their operations on the environment. The next few years will, though, see a strengthening of the requirements to consider the environmental impact of industrial operations – including transport operations.

These changes are the fallout from the Paris Agreement, signed in December 2015, which set targets for reducing greenhouse gas (GHG) emissions and also encouraged countries around the world to examine how they will prepare for climate change.

In the maritime world, shipowners are facing a major change next year, with the introduction by the International Maritime Organisation (IMO) of new restrictions on the sulphur content of marine fuel – or, at least, the restriction of sulphur oxide content in exhaust streams, which can equally be achieved by means of exhaust gas scrubbers or the use of other fuels such as LNG or LPG.

To a large extent, environmental controls imposed on industry and the transport sector thus far have often proved to include a financial pay-off for those involved. After all, if the aim of a rule is to make operations more energy-efficient, then it means that the same amount of work can be done at a lower cost.

The IMO 2020 rule, as it is widely known, is different. Shipowners will, one way or another, have to pay but will not get any return. The cost of installing scrubbers or buying higher-priced low-sulphur fuel will not make their ships any more energy-efficient or faster, so the same work will be done at a higher cost.

And IMO 2020 is just the first step. IMO has agreed to address GHG emissions, taking a phased approach. GHG emissions will have to be reduced sharply from 2030 onwards (now ‘IMO 2030’) and eliminated altogether by 2050 (‘IMO 2050’). Those targets are not going to be met by using hydrocarbon fuels, as they target carbon dioxide in particular, and IMO 2030 will probably mean restrictions on steaming speeds. By 2050, though, shipowners will have to be looking at innovative fuels such as hydrogen (probably in the form of fuel cells) or ammonia – two potential fuels that contain no carbon in their atoms.

There are two implications for this. Firstly, the IMO 2020 provisions are merely a stopgap. The costly alterations that shipowners (and refiners and bunker suppliers) are having to put in will be only temporary. Secondly, given that ships are built to last for 20 years at least, shipowners placing newbuilding orders today will have to have one eye on how they are going to operate those ships in a post-2030 environment. Within the next decade they will have to start looking at how they will meet the 2050 restrictions – potentially relying on technology that has not yet been developed, at least to an operational level.

Speaking recently at the Chemical & Parcel Tanker Conference in London, IMO secretary-general Kitack Lim stressed the importance of these changes. IMO has been firm with the 2020 deadline and owners have to expect the 2030 and 2050 deadlines to be similarly unmovable.

We are moving into a different world in terms of environmental protection and, in this world, there is no sign that those affected will be able to benefit from cost savings.

CONTENTS

VOLUME 40 • NUMBER 04

UP FRONT Letter from the Editor

30 Years Ago Learning by Training 01

04

05

CHEMICAL DISTRIBUTION The clean team Investing in GCC tank depots 07

Crisis concerns Agility’s Emerging Markets Index 09 Warming up to cocoa Haesaerts moves into West Africa 11

Looking back, moving forward A big year for Brenntag 12

Clinical conversations Reporting back from CTS Europe 14 News bulletin – chemical distribution 18

ROAD TANKERS Fuelling the future Previewing FPS EXPO

Digital power OnlineFuels makes buying easy 20

23 TANKS & LOGISTICS On the right track Successful year for VTG 24

Into the valley H Essers develops rail hub 26

Sustainable is attainable Antwerp’s radical methanol plan 28 News bulletin – tanks and logistics 30

CHEMICAL TANKERS Hard to port Chemship owners face difficult choices 32 Smooth sailing Odfjell eyes upturn 38 The big issue Stena happy with IMO II activities 39 In the fairway Tanker fleets gets a better balance 40 Listing of chemical tanker fleets 41 News bulletin – tanker shipping 44

COURSES & CONFERENCES Training courses Conference diary 46

49 SAFETY Incident Log 50

Let’s be honest TT Club calls for Cargo Integrity 54 Sticky stuff ITCO guidance on polymerisers 58

REGULATIONS Last chance saloon UN makes final touches to changes 60

BACK PAGE Not otherwise specified 68

NEXT MONTH Storage terminal expansion projects Latest moves in digitisation Chemical distribution in Europe Reporting back from LogiChem, StocExpo

Editor–in–Chief Peter Mackay Email: peter.mackay@hcblive.com Tel: +44 (0) 7769 685 085

Deputy Editor Alex Roberts Email: alex.roberts@hcblive.com Tel: +44 (0) 208 371 4035 Commercial Director Ben Newall Email: ben.newall@hcblive.com Tel: +44 (0) 208 371 4036

Campaigns Director Craig Vye Email: craig.vye@hcblive.com Tel: +44 (0) 20 8371 4014

Head of Operations Sam Hearne Email: sam.hearne@hcblive.com Tel: +44 (0) 208 371 4041 Production Manager Jodie Oliver Email: jodie.oliver@hcblive.com Tel: +44(0)208 371 4048 Managing Editor Stephen Mitchell Email: stephen.mitchell@hcblive.com Tel: +44 (0) 20 8371 4045

Designer Natalie Clay

HCB Monthly is published by Cargo Media Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect.

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