HCB Magazine August/September 2020 by Enhesa Product

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EDITOR’S LETTER

The tragic explosion in the port of Beirut on 4 August was, as

All these are exceptional situations; the fact is, ammonium

we so often hear, “an accident waiting to happen”. Some 2,750

nitrate is stored in significant quantities in many ports and

tonnes of ammonium nitrate, taken from a ship impounded in

terminals around the world, as well as in manufacturing plants

the port seven years ago – and later abandoned, along with its

and warehouses and at end-user facilities. Ammonium nitrate,

cargo, by the shipowner and cargo interests – exploded after

properly handled, is stable and has many uses, primarily in

a fire broke out. At the time of writing, the death toll is put at

fertilisers and in mining explosives. That explosion hazard has

more than 200, with many thousands more injured.

also long been used by terrorists, including the Provisional IRA

The event also destroyed the port facilities – the main import

and the Oklahoma City bomber, Timothy McVeigh. As a result,

hub for Lebanon – and the surrounding area, and damaged

in this security-conscious world, stocks of ammonium nitrate

much of the city, still recovering from decades of war and terrorist

are – or at least should be – properly monitored.

activity. Alongside the human toll, the continuing destruction of

If this were a transport-related incident, we can be sure that

what was once known as the ‘Paris of the Middle East’ is also

the regulators would be taking urgent action, putting in place

a great loss to humanity.

strict provisions. Indeed, there are several UN entries covering

The 4 August blast immediately reminds us of the similarly

the substance in its various forms, placing it in either Class 1,

devastating explosion in the port of Tianjin, China in 2015,

Division 5.1 or Class 9, depending on its purpose and the

again caused by illegally stored ammonium nitrate, and

degree of hazard presented. Those regulations are observed

also the 2013 explosion at the West Fertilizer plant in Texas.

in international transport and in many countries, not just in

In all three cases, the incident began with a fire and the

the developed world, for land transport.

blast happened when firefighters were on scene; many

But there is no comparable set of global regulations for

were killed – including volunteer firefighters in the West

the storage of dangerous goods. GHS contains provisions on

Fertilizer incident.

classification and health and environmental hazards, as well

But if the Beirut blast was an accident waiting to happen,

as physical hazards, but does not specify how materials should

how many other accidents are out there just a spark away from

be stored or handled. Quite often the details are left to local

happening? Officials in Chennai, India are waking up to the

legislators – port authorities, fire departments, and so on – who

hazards posed by ammonium nitrate in warehouses, stored

may or may not have the expertise to set those rules. And to

there after being impounded by customs authorities. A similar

a large extent it relies on those actually doing the storage and

situation exists in Aden in Yemen, where an estimated 4,900

handling to declare that they have goods on site. And, as we have

tonnes of ammonium nitrate is alleged to have been sitting

seen, there are plenty of reasons for not making that declaration.

in containers at the port for three years.

Peter Mackay

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CONTENTS VOLUME 41

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UP FRONT Letter from the Editor 30 Years Ago View from the Porch Swing Learning by Training Business in crisis Covid’s impact on Suttons CHEMICAL DISTRIBUTION Support service NACD members help the community Meet the need DHL invests in pharma logistics Wholly Toledo Brenntag opens Ohio location Reach for the future Univar streamlines for success News bulletin – chemical distribution TANKS & LOGISTICS Drive through the crisis Bertschi shows the way Carry the can Twinstar innovates in chassis MIMU hits the spot Tank leasing the specialty way Follow the market Highway Transport adds depot Don’t give up on networking Digital Container Summit is coming News bulletin – tanks and logistics

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DIGITISATION Linking the 9,000 VTG adds more sensors Swiss on a roll Nexxiot pairs with Swisscom Port to port Join the dots with ePIcenter New in Barcelona BNEW’s insights on digitisation Something in the air CSafe hooks up with Cloudleaf

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TANKER SHIPPING Strong and stable Stolt-Nielsen sails on through Steam clean New ideas in ship propulsion Quiet rivers Kirby sees demand slip Raise the bar Schulte adds LNG training News bulletin – tanker shipping

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COURSES & CONFERENCES Training for reality

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

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12 STORAGE TERMINALS Gulf in class Building export capacity in the US A career in storage Keith Jackson’s 34 years at Inter Tread carefully Vopak navigates the pandemic Bubble buster Blackmer gets rid of cavitation News bulletin – storage terminals

IATA introduces CBT-A Remote control Online training from DGOT The new normal? Lion discusses online training Let’s meet real soon Labeline takes roadshow online Conference diary

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SAFETY Incident Log Chart a course NCB has ideas on container fires Lessons learned CSB applauds Airgas for action REGULATIONS Back on track PHMSA catches up with the world Down to the wire CFATS reauthorisation passes Bulk bargain Changes to US rail rules BACK PAGE Not otherwise specified

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Campaigns Director Craig Vye Email: craig.vye@hcblive.com Tel: +44 (0) 208 371 4014

NEXT MONTH The European Special Issue EPCA Annual Meeting preview Tanks and chemical logistics Sustainability in the supply chain Tanker shipping and tank storage

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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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30 YEARS AGO A LOOK BACK AT AUGUST 1990

Thirty years ago, environmental considerations in the transport of dangerous goods were beginning to emerge more strongly. That change in attitude was driven in no small part by a number of major environmental disasters, not least the wreck of the Exxon Valdez in Alaska in 1989, which prompted the passing of the Oil Pollution Act 1990 in the US, and the explosion and fire aboard the tanker Mega Borg off Galveston in June 1990. HCB’s August 1990 issue reflected that shift, with a special report on oil tankers focusing on moves at the IMO designed to head off unilateral action by states (not least the US), with proposals not just for the improvement of the existing liability and compensation regimes but also changes to vessel design, in particular the mandatory use of double hulls. As usual, there was push-back from the shipping industry, fearing the costs involved, as well as from some safety experts who felt that double hull designs just provide an additional space for potentially explosive atmospheres to gather. Environmental considerations were also focusing attention on the potential for rail transport to offer a cleaner way to move liquids in bulk in Europe, while also helping to reduce road congestion – and in anticipation

those accidents involved environmental pollution. An interesting section in the August 1990 issue looked at insurance in the transport of dangerous goods, beginning with an interview with Robert Godden, manager of the marine division of ICI’s in-house insurance company. He noted that improvements over many years in the way that dangerous goods had been handled, stored and transported meant that very few major insurance claims had come forward. He was, however, concerned about the potential for new and more restrictive legislation appearing in Europe and elsewhere, which would inevitably lead to higher costs for dealing with accidents. John Nicholls, a director of Through Transport Mutual Services – now TT Club – looked in particular at claims arising from the use of tank containers. He enumerated the ways in which any accident involving dangerous goods can generate liabilities and, particularly for tank operators, the various third party liabilities involved. His article also gave a lucid and brief explanation of the mysterious ‘general average’ concept applied to goods caught up in an accident at sea. By way of explanation, Nicholls provided a few recent examples, covering such aspects as fraudulent claims, inadvertently overheated

of the opening up of transport options given the impending arrival of the European single market. The August 1990 issue provided a roundup of recent activity among the continent’s main tank wagon lessors – a list led by Brambles-owned CAIB and VTG, then still part of Preussag. The shift towards what in today’s parlance might be termed ‘sustainable transport’ had been given a further boost by the growing realisation of the costs involved in having accidents, whether or not

cargo, domestic haulage laws in Africa, and the results of a leaking tank on a vessel during passage through the Panama Canal. He warned in particular of claims in the US, especially those involving bodily injury, as juries hearing such cases can respond emotionally. Recent coverage in the pages of HCB on the work of TT Club and the problems it finds in the transport chain show that some things don’t really change.

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30 YEARS AGO A LOOK BACK AT SEPTEMBER 1990

The standards and regulations that apply to the transport, storage and handling of dangerous goods have developed over decades, driven by the expectations of governments and the public that those activities should be safe. But industry has also played its part, drawing up standards and procedures to protect its reputation and maintain its licence to operate. Advances in those standards and regulations have often come in response to major accidents, many of which took place in the 1970s and 1980s, before safety standards received the strong focus that is applied to them today. That has certainly been the case in Europe, with the Flixborough and Seveso disasters leading to the current EU Seveso regime for managing high-hazard facilities, as well as the result of numerous oil tanker spills framing the EU’s approach to regulating oil shipping. Another incident that led to new standards took place in Basle, Switzerland on 1 November 1986, when a massive fire broke out at the Sandoz chemical plant; it was not just the fire itself, but the pollution of a long stretch of the Rhine with toxic run-off that prompted action. In fact, the Sandoz plant was compliant with the regulations of the

tightly controlled. In turn, that led to the development of specialised third-party warehousing services, adept at meeting the strict expectations of regulators and of their chemical industry clients alike. One example of that was the new ‘Jan Spaas’ warehouse developed by Pakhoed (which later merged with Van Ommeren to form Vopak) in the port of Antwerp. As HCB said at the time: “Pakhoed’s entry into the specialty chemicals sector testifies to the ‘service buying’ power of its major customers, who effectively impose changes in long-established distribution practices to ensure that their own particular needs are met.” The September 1990 issue also continued with the theme of insurance, following on from the August issue (see opposite), with Nicholas Colton, liaison officer for the International Union of Marine Insurance (IUMI) to IMO, taking a look at the proposed HNS Convention, intended to provide a liability and compensation scheme for the transport of dangerous goods by sea (and which remains to enter into force). John Hawkes of the London P&I Club discussed some of the difficulties facing ‘protection and indemnity’ insurers, which are normally arranged as mutual clubs, not least the fact that many claims may take years to come to court. He reported, for example, that the Amoco Cadiz case was still on the

time and was seen as being well run; the incident merely highlighted the shortcomings of those regulations. In response, the European Chemical Industry Council (Cefic) drew up new guidelines for the warehousing of dangerous chemicals. One outcome of that, as HCB reported in September 1990, was that manufacturers began to concentrate their inventory at strategic locations, where standards could be monitored and activities more

club’s books, though it had taken place 12 years before. Elsewhere, we reported on an emergency drill that took place in New Jersey; firefighters were asked to deal with a ‘fire’ involving a tank truck with allyl alcohol. In their haste to put the fire out, they got too close. In the simulation, the tank exploded and would have killed them all. Reviewing a video afterwards, the men described the exercise as “a mixed success”.

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FROM THE PORCH SWING OLDER THAN DIRT GETTING OLD AIN’T for sissies. In some ways it seems fairly easy, just keep on living. But old age will sneak up on you. Bones become brittle without you knowing. Muscles don’t stretch like they used to, but the loss of flex and elasticity is so gradual that most people don’t realize it’s happening. About the only way that age doesn’t sneak up on us is in getting facial wrinkles. And despite determined attempts to stay positive, who has ever truly happily uttered “Oh good, my

something high up in a cabinet, to attempting to lift something you’ve lifted twenty-eleven times before and getting locked into a painful body position. And sure, the changes to your appearance accelerate dramatically, sometimes to the point that you walk past a mirror and have to turn your head to get a better look at that strange person who was reflected back to your peripheral vision. But, I think the emotional adjustments are the hardest of all.

first smile line!”? Once it’s here, though, the hard part begins. Sure, the physical ramifications aren’t easy to deal with. Pulled, strained and aching muscles are frequent, from playing your favorite sport and not being able to walk the next day, to the twinges your back gives you when reaching

The strains and aches keep coming if you refuse to acknowledge your age, and unwillingness to acknowledge is an emotional issue. And there are a host of other behavioral issues that come with denial. How many broken hips have occurred because a senior citizen refused to hold onto something for

HCB MONTHLY | SEPTEMBER 2020

balance when stepping out of a shower? How many tumbles on stairs, some deadly, have occurred because a senior citizen was too proud to use the handrail, both down and up? How many senior citizens have succumbed to diabetes or heart disease because they refused to acknowledge that they shouldn’t continue eating the way they’d eaten the previous part of their life? And, oh my goodness, how many debilitating or fatal medical conditions could have been prevented and/or treated if senior citizens went for medical care more often than they did when they were middle-aged? From this Porch Swing, this old person thinks that all the physical stuff related to aging is so much more successfully dealt with when one admits and accepts that one has become old.

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So, I am old. Truly. I am not quite as old as time itself. I’m pretty sure that I’m older than Adam lived to be, but not as old as the 969 years Methuselah is said to have made it to. But, I kind of like to express my age in geologic terms. Not only am I older than the hills, I’m older than dirt. Yep, if I ever retire and get new business cards, they’ll say “Gene Sanders, Older Than Dirt”. In many ways, though, it is good to be older than dirt. For every 10 people that think I’m automatically senile for being over age 60, there’s one who thinks I must be wise. Gosh, I’d sure like to be wise, but I’m happy when someone mistakes me for being that way. When someone asks about a DG/HazMat regulation “why the hell did they do it this way?”, I sometimes know the answer. And I saw the sun come up the morning I wrote this. Someday I won’t be able to say that, and I will no longer be older than dirt, but be on my way toward becoming part of it. Speaking of HazMat/DG history and of death, I think it’s important to honor those no longer here who had a hand in DG compliance, and thus helped keep the rest of us safe. My list will be different than yours. I’m only listing those I had direct contact with. And while contributions varied, all were important to me in one way or another. Someday, later, I may explain about why each of these people were important to me and to DG, but now’s not that time. When you glance over my names, please take a moment to reflect upon who would be on your list of names. STEPHANIE FOSTER RUSS BOWEN PAUL D’HONDT KEN HOLLOWAY TERRY McADAMS GLENN SCHMUCKEL SPENCER WATSON DESMOND WAIGHT DAVID HIBBS Thank you. Oh, and consider checking out https://hcblive. com/tag/obituary. You may know some listed there, too. And maybe I could honor the

memory of those on my list by submitting something about them and their role in DG for that page. Thank you, HCB. It’s not just people that pass on, but so do old ways, too. I remember Al Roberts teaching me about some of the first HazMat regulations ever, that required a pillow or mattress at the end of the ramp upon which barrels of explosives were rolled down out of boxcars (railcars). I wasn’t around for those, as they were more than a century ago. But, I do remember some DG stuff that dates back to the beginning of HCB 40 years ago. In no particular order, here’s some old DG/HazMat stuff I remember, and how it’s changed, and speculations on where it might be going. • Blue binders for the IMO’s IMDG Code regulations. Each year we’d take out the pages that held regulations that had been removed or altered, and added pages that had new or updated regulations. Page numbering became wonky, as we might take out three pages and replace them with five new ones. So, if I remember correctly, we might replace pages 86, 87, and 88 with 86, 87, 88-1, 88-2, and 88-3. And, as with most loose-leaf binders, the most frequently used pages would sometimes tear out. Hopefully, you’d notice as one of them fell out while carrying the binders from the bookshelf to your desk or workstation. These days, we don’t even need paper regulations very often. I prefer them sometimes, especially when you have a general idea where something is, but not quite exact. For, example, if I was trying to find an exception for the use of orientation arrows on small packages, I would go to somewhere in the marking requirements and flip pages until I saw the picture of the arrows. Then, I’d be where I wanted to be.

looks like a magnifying glass. They’re happy to race me finding something in the regulations, and quite often the whippersnappers and their smarter-than-i-am phones beat me to it. So, e-regs are the future, I’m sure. Eventually, there won’t be any need for a periodic corrigenda or errata, as the corrections will just ‘magically’ appear soon after a device is connected to the Internet. Heck, we might not even need a biennial issuance of the regulations, if all the changes can be made in what’s virtually real time. And except for a few dead zones coupled with dead batteries, we may not even print paper copies of the regulations at all. Eventually. • Packaging used to be manufactured prescriptively, with regulations about how far over the first side of a fibreboard box the fourth side had to overlap, and whether that ‘join’ could be made with staples or glue and, if staples, how thick the staples had to be and how close together they must be. We went from prescriptive packaging to POP. And no, it’s not “POP packaging” because that would be redundant. Now, along with the POPs, we have ‘closure instructions’ or ‘manufacturer’s instructions in writing’ that must be retained as documents subject to inspection. All of which make sense. For what’s next in packaging though, I look at what they’re trying with lithium battery packaging. No longer does a package just have to survive normal conditions of transport, it may have to survive fires, it may have to contain reaction byproducts, and it may have to have not just cushioning and/ or absorbent but neutralizing or hazardmitigating components. If lithium battery packaging developments are our guide, we may have to have spill kit neutralization in

Of course, the young DG professionals sneer at me for that. I tell them it’s better than using a menu driven system to navigate through a set of online regulations. And, they tell me that menu driven systems are almost as old as I am, and ask if I’ve ever heard of ctrl-F or command-F or seen an icon that

between inner containers of acids and their outer packaging, we may have to have antimicrobial or virucidal cushioning around Category A 6.2 materials, and we may have to contain runaway 4.1 self-reactions within a package. There’s also the surviving of conveyor belt

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sorting systems, which subject packages to stresses that weren’t “normal” back when specification packaging tests were added. Now we might need a side crush test, and not just a compression test from the top. And/or we might need to test packagings with inner containers to demonstrate prevention of leakage in all orientations, which could then obviate the need for orientation arrows. Wait, packaging developments could potentially affect marking requirements? Sure, maybe. • Hazards in those long-ago days were expressed in words, and there were no packing groups. Toxic materials in the USA were Poison A or Poison B, analogous to today’s 6.2 degree of danger rating system. Now, those two are 6.1, I and 6.1, II (roughly speaking). To add 6.1, III, we had to regulate some previously unregulated materials, for which we created a new hazard label, Keep Away From Food, which oddly enough didn’t say Keep Away From Food, but Stow Away From Foodstuffs. We do keep some vestige of the old hazard class words around though, occasionally to the detriment of safety and emergency response. When we put words on a 4.1 hazard label, those words are usually “Flammable Solid”. What could possibly go wrong in responding to a selfreactive liquid or polymerizing liquid or legacy desensitized explosive liquid inside a damaged package bearing a label that says “Solid”? If we looked at our hazard classification system all over again, and tried to make it have some guiding, consistent principles, it might look entirely different. Just think about our current inconsistencies. Sometimes we categorize by physical state, as with the gases all being in Class 2, and other times we just don’t. Sometimes we categorize by a type of hazard, as with all corrosives being assigned to Class 8, and yet for materials whose only hazard is that they will burn we use 2, 3, and

why did we put lithium batteries in Class 9 instead of in 4.1? Of all the changes made from the past, this is the area that I think most needs continuing change, and unfortunately, the area least likely to change because of its complexity and the consequences of introducing a whole new system. • Shipping papers used to be laboriously hand printed by whichever unlucky employee had the best handwriting, sometimes pushing the pen down hard to make that bottom piece of paper under the layers of carbon paper legible. Then we got a typewriter, which was great, but still took a lot of time to make multiple copies. Giant copiers arrived, and DG paperwork was often important enough to warrant permission to use those expensive beasts and their inks and toners. Printers got cheap, and typewriters were replaced with Word or Excel templates to ensure everything was lined up properly when generating shipping papers. Now, of course, FedEx Express in the United States won’t accept handwritten nor typewritten nor PC-generated DGDs, insisting only upon DGDs produced from an error-checking software system. And

world, it seems likely that e-docs are the wave of the future. Of course, there are potential issues with lack of connectivity to the internet in ‘dead cell’ areas, but preemptive autoloading of e-documents onto local emergency responders’ phones before the transport vehicle/boat/train/plane enters a geographic region could render that problem moot. And while we’re on technology fixes for e-generated shipping documents, it’s probably worth mentioning that more and more of these document-generating softwares include some classification determining capability, too. I use the word “capability” lightly, though, because with all of the non-objective classification criteria, such as usage, packaging type, mode of transport, quantity, subjectivity, and destination, I have been able to make every single one of these that I’ve ever tested, fail. So, more work remains to be done before these softwares can perform all the DG functions for us. • Tracking of shipments just wasn’t really done in those old days. Notification of arrival could be done by telephone or by postcard. About the time I started DG work, barcodes were in their infancy, but within a contained system could be used for tracking. At one point, while working for a parcel carrier, we would use a big, handheld “gun” to scan barcodes, but then at the end of the shift had to dock the gun into a cradle so the stored information could be shared via wired connection with the rest of the system. In other words, no WiFi. And barcodes were often used for an entire shipment, not the individual packages within a shipment. Tracking down the 1 of 6 packages that didn’t get delivered was quite difficult, because the barcode would erroneously say that the 1 was delivered with the 5 of 6 that actually were. Fortunately, that practice seems dead as far as DG is concerned. Now, barcodes are usually not

4.1. And heck, we don’t even pay attention to our own current system sometimes. The definition of a 4.1 flammable solid used to include words similar to “burns so persistently or vigorously as to create a hazard in transportation”, which pretty much describes lithium batteries. So,

those error-checking, document generating, software systems are proliferating. Some of the new software systems, especially those provided by carriers, also send electronic versions of the DG documents instantaneously upon printing. With testing of e-documents going on in many parts of the

actually bars, gun-style scanners are small and communicate instantaneously, and when conveyer belts are used, code readers are installed in arches over the belts and/or along the side and/or underneath, so no matter the package orientation, everyone everywhere can instantly see the location of a package.

HCB MONTHLY | SEPTEMBER 2020

“BY FOLLOWING THE PROGRESS WE’VE MADE SO FAR, WE MAY HAVE A BETTER IDEA WHERE PROGRESS WILL TAKE US IN THE FUTURE”

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And in addition to barcodes on the outside, we can put electronic devices (powered by batteries, and thus HazMat/DG themselves) inside packages. These devices may only record location via GPS, but may also record temperature, humidity, and pressure. When they first came out, these devices just stored the data for downloading at the end of the journey, but now via satellite or via cell phone networks these devices can give real-time updates of their location and condition. There are also RFID chips, which are passive non-DG chips, that were originally intended for inventory purposes, but are now sometimes used for tracking in or tracking out, as they pass under archways built into doorways that track them. When we consider satellite and cell phone communications, and archways and scanners and temp-tells and RFID chips and actively

communicating GPS trackers, we can get a vision into the future. Not only could DG be tracked virtually everywhere, but that information could be tied to the e-documents and shared proactively with emergency responders. Imagine if underpasses and overhead street signs and gates into and out of ports were all equipped with RFID readers. Imagine if every package chirped its location every five minutes. Imagine if barrels and IBCs and portable tanks and tank trucks and railcars chirped the level inside every five minutes. We could have emergency responders pre-notified, with information downloaded before it was ever needed, and we could get alerts about incidents like wrecks and leaks, often before a driver (or engineer or captain) either knows or could ‘call it in’. We could re-direct misdirected DG/HazMat before it goes places it isn’t supposed to be. And all

without significant human intervention when everything is routine. Yeah, I’m older than dirt. And yeah, I remember the ‘good ole days’. But, IMO (maybe or maybe not IMHO), looking back is good for reasons other than just nostalgia. By following the progress we’ve made so far, we may have a better idea where progress may take us in the future. While not fool-proof or 100% reliable, we can still better prepare ourselves for upcoming changes much of the time. So, thank you, Hazardous Cargo Bulletin (a.k.a. hcb), for taking us back 40 years. Your looking back helps this older than dirt DG professional see into the future a little more clearly. This is the latest in a series of musings from the porch swing of Gene Sanders, principal of Tampa-based WE Train Consulting; telephone: (+1 813) 855 3855; email gene@wetrainconsulting.com.

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LEARNING BY TRAINING By Arend van Campen

INFORMATION IS PHYSICAL

Last month I wrote about a ‘New Normal’ which now has become our surreal existence. How can we do business in a world where people’s behaviour in politics, business and society have become even more unpredictable? Consumerism is halting, because who can enjoy shopping wearing a facemask and having to follow the yellow lines as if entering a prison rather than a mall? People will be driving more because they don’t like to take a train or a bus, especially during a hot summer day, when breathing becomes difficult through chemically laced cloth. When I started to write this column I named it Learning by Training so, reflecting on the current Covid-19 crisis, what have we learned? Sure, we noticed that countries where health insurance is either unaffordable or not available suffered dearly, but that politicians, who refuse to lose face, are leading us towards psychological stress, foretelling more suffering. Our ‘usual’ way to do business won’t return as fast as we hoped, and probably not at all. The lockdowns and once temporary restrictions are becoming laws. Such regulations will not be erased easily once they are installed and accepted. Therefore, I created a think tank which I named ‘Sustenance4all’. We apply sciences such as physics, systems theory, complexity theory and cybernetics to design sustainable organisations, businesses

reshape it. “But I just invested by heavy borrowing into a new storage terminal or distribution centre!” Another important question. Research is then needed to find a new purpose for your company. This could be the storage or transport of sustainable products related to green energy or foodstuffs and focusing on localisation, not internationalisation any longer. How? All you need is information. Our task as a learning affiliate of the Energy Institute and research centre for sustainable design is to help you with information. It is information which forms the fabric of reality and when you have explored that phenomenal insight, the fear of losing your business will be replaced by courage and confidence. It is a law of physics that information is used to create order and structure in the universe. Thus, information can be used by you to create a sustainable future in any form or shape. We can teach you how. The Coronavirus demonstrated us how to do that. When you see the virus as a messenger bringing information in the form of ‘bad’ news, a first reaction will be to ignore it, perhaps downplay its effects because you can’t believe that such a thing is happening. But this scientific fact and reality can’t be escaped from: information is physical.

and products. A complete new vision is needed to adapt and transform our current unsustainable commercial models into sustainable ones. You may ask: “But how can that be done, my service or products are path-dependent?” That is a great question, because when you already admit that your business model is dependent on the now obsolete economic model of perpetual growth, we can sit down and

A research paper, Information is Physical, can be downloaded at www.sustenance4all.com/realimiteit.html. 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.

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BUSINESS IN CRISIS COVID-19 • KEITH BROOM, FINANCE DIRECTOR OF SUTTONS GROUP, DISCUSSES THE IMPACT OF THE CURRENT HEALTH CRISIS ON THE COMPANY’S TRANSPORT BUSINESS THE COVID-19 PANDEMIC has had a significant impact on supply chains across the globe, particularly the ISO-tank market, which uses specialist equipment and relies on a balance of flows. The impact of “lockdowns” initially hit the manufacturers of product at the beginning of the supply chain, starting in China and then progressively impacting Europe and the Americas. A fall in supply side demand came shortly after, again cycling from Asia to the Americas. This disruption led to erratic volumes

and delays in discharging tanks, which in turn led to tank shortages in some areas. The manufacturing and usage of chemicals has not been impacted as heavily as some other sectors: demand for some products has increased, while others have remained stable and some have seen significant reductions. We saw an initial surge in demand for industrial alcohols and solvents, both used in cleaning and sanitising products, which were in high demand at the beginning of

the outbreak to support with the immediate attempt to keep economies operating and preventing the need to lockdown. This initial rise in demand has abated somewhat, but it is likely that demand for these products will remain higher than normal until a vaccine is available, and may continue permanently with raised awareness of the need for improved hygiene to reduce the spread of other viruses. Many sectors have seen a continuation of normal levels of demand, for example, chemicals used in the water treatment industry and foodstuffs. Other sectors have seen a severe decrease in volume, many of which are related directly or indirectly with the transport sectors and manufacturing. As the nation adapted to working from home the demand for petrol, diesel and fuel additives fell significantly in both the road and air markets. It is likely that demand will be slow to recover and, if working from home and a reduction in long distance business travel continues in the long term, these industries may never return to pre-coronavirus levels. There was also a near-instant shutdown of large-scale manufacturing such as car plants, white goods, aircraft and parts, many of which use chemicals directly or use plastics that are made from chemicals. Some of these plants have restarted limited production but, again, recovery will be slow against a background of increased unemployment and reduced economic activity, meaning it could take years to recover to former levels of output. PROTECT EMPLOYEES During the outbreak of the pandemic, Suttons’ first priority was the health and safety of our staff, both from a welfare perspective and on a business level because without healthy staff we would be unable to meet our customers’ needs. As a global business we had an early test of our business continuity plans with the lockdown in China, which impacted us in late January. This tested our ability to maintain our International operation with remote

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working and allowed us to iron out any minor issues. As it became clear that Covid-19 was going to spread globally we introduced social distancing and hygiene measures, as well as providing PPE to allow staff to continue to work safely, while providing support for those who needed to shield due to age or for medical reasons. We quickly adapted our operations to ensure that we could maintain the standards of safety and quality that our customers expect from us and to respond to changing demand patterns for certain products as already discussed. This included pro-actively marketing our capability to sectors where demand was increasing, or where new entrants were supporting the national effort to combat the ever-evolving pandemic. An example of this was our support to William Grant & Sons Distillery, who switched from producing whisky to distilling alcohol sanitising applications. EYES ON THE CASH Like many businesses, unsurprisingly, we had to react quickly at a corporate level to ensure that we had access to sufficient cash to support the business and to fund any investment required to meet our changing operational needs. The initial problem was trying to model what the impact on the businesses turnover and cash flow might be, in a situation that no one had ever lived through before. Our two biggest concerns were that we did not know how far demand would fall and whether or not some of our customers would be unable to pay us. We were also initially unaware of the level of support that governments would provide.

 KEITH BROOM (ABOVE) SAYS THAT THE CURRENT HEALTH CRISIS HAS CREATED OPERATIONAL AND FINANCIAL CHALLENGES, BUT ALSO OPPORTUNITIES TO SERVE THE NEEDS OF NEW CUSTOMERS FOR TRANSPORT SERVICES

We moved quickly to preserve cash. Capital expenditure plans were reviewed and some projects that were deemed non-essential were deferred or re-scheduled to ensure we balanced operational needs with cash management. NAVIGATING A CRISIS As we navigate through the pandemic, we are constantly reviewing the way in which we have managed the business and our operation, as well as how we have supported our employees and customers. Our existing

improve our reaction to either a second wave of Covid-19 or some similar challenge in the future. It is crucial for all businesses, including Suttons, to constantly assess the medium to long-term impact of the pandemic on customers and competitors in the post Covid-19 world. It is certain that the economy will take a significant time to recover from the shock of lockdown. Where coronavirus has had a negative impact, companies like ours must respond

business continuity plans worked well and allowed us to operate safely and maintain an excellent level of customer service, all while managing our cash flow. However, we are noticing areas where we could have done better or where additional investment in equipment, software and training could

quickly to reshape their business processes, asset base and workforce to ensure that they are in the best possible shape to survive and prosper in this economy. Equally, where the pandemic generates opportunities businesses must react swiftly to capitalise on them. www.suttonsgroup.com

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SUPPORT SERVICE COVID-19 • NACD PRESIDENT ERIC R BYER REPORTS ON THE IMPACT OF THE CURRENT HEALTH CRISIS ON ITS CHEMICAL DISTRIBUTOR MEMBERS IN NORTH AMERICA

THE UNITED STATES is facing one of the worst threats to our public health and economic growth in our nation’s history due to the continued spread of Covid-19. The response from our various federal, state, and local governments — along with Americans’ continued reticence to resume their ‘normal’ lives — has no doubt had, and continues to have, a significant impact on the economy and the bottom lines of chemical distribution companies. Fortunately, the chemical distribution industry has, by and large, fared much better than other sectors of the US economy due to our essential link in commercial and industrial supply chains and our ability to distribute much-needed products to combat the coronavirus, like sterilisers needed for

medical equipment, cleansers consumers use in their homes, hand sanitiser, and even personal protective equipment for first responders. Nevertheless, like most of the world, the US economy and even the chemical distribution industry has not been immune to the ill effects Covid-19 has flung upon the globe. In terms of the broader US, GDP fell 5 per cent in the first quarter of 2020, and some estimate it fell by as much as 35 per cent in the second quarter. Unless there is a dramatic improvement in growth over the remaining two quarters of the year, it is very likely the US economy will have contracted for the first time since 2009. While the official unemployment rate has fallen from its peak in May of 13.7 per cent, it still stands at 11.1 per cent as of this writing. However, weekly claims for unemployment insurance continue to be twice as high as the peak levels during the Great Recession last decade, indicating that many low-skilled and part-time workers continue to be laid off from their jobs. CHEMICAL MARKET CONTRACTION The US chemical sector has been able to weather the health and economic crisis better, but it still has had its share of troubles. Since February, employment has been down 2.1 per cent — a fraction of what other industries like entertainment and hospitality have faced, but still concerning given the number of highskilled jobs the industry needs to perform well. Chemical production is down 12 per cent from this time last year, but the good news is shipments are up 2.3 per cent in the last five months. And again, since February, prices are down 5.6 per cent. However, wages have

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been holding steady, meaning that profit margins have been absorbing most of the price drop. Most of the major industries that are users of chemicals have seen a large drop-off in demand. Aerospace, automotive and industrial consumer goods have all been very weak. While there has been higher demand for food packaging, personal protective equipment, medical supplies, and cleaning chemicals, it has not been enough to offset losses in other major chemical market sectors. One particularly bright spot for chemical distributors has been the sale of isopropyl alcohol (IPA). Beginning in March, demand surged for IPA both here in the US and globally due its use in hand sanitisers and cleaning agents. Many members of the National Association of Chemical Distributors (NACD) store IPA as a ‘rainy day fund’ of sorts, and have been able to draw upon those reserves to boost their sales when demand for other products has fallen off. Prices for IPA spiked across the globe to historically high levels this spring and, while they remain historically high, they are starting to come down slowly from their peak levels. This increase in demand and prices has been a key lifeline for NACD members that have been able to tap into that product market during the Covid-19 crisis. OPERATIONAL CHALLENGES Beyond the economic and market sector effects of Covid-19, NACD members have also had to shift the way their businesses operate on a day-to-day basis to ensure their employees are kept safe and healthy while they also work to keep their businesses afloat. At what is considered the beginning of the pandemic in the US, the Trump administration deemed the chemical industry ‘essential’, meaning our member companies were exempted from a lot of the early restrictions regarding mandatory business closures, stay-at-home orders, and the transport of cargo across state lines. Even though our members were able to continue doing business, they took (and still

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take) the safety and security of their operations, their employees, and their communities seriously — thanks to NACD Responsible Distribution®, our mandatory third-partyverified environmental, health, safety, and security programme. Throughout this entire health crisis, NACD members have taken steps to limit the spread of Covid-19 within their ranks. Most have allowed front office employees to work remotely when possible. For staff that are needed onsite, many companies have instituted social distancing practices and daily temperature checks, restricted visitors from entering their facilities, provided PPE to workers, and undergone daily facility cleanings, among other strategies. We are also proud to report that only a small handful of our member companies’ employees have contracted Covid-19. Additionally, only a very small percentage of our members have had to lay off employees for economic reasons. It is exceedingly apparent that our members care about their employees and are putting in place protective measure to keep their workforces safe and on the job. PLAYING A PART On top of everything they are dealing with to keep their businesses running, many of our members are also doing everything they can to support the response effort. Some are delivering needed PPE and hand sanitiser to their local first responders, volunteer organisations, and elder care homes at no cost. Others are supporting their local charities financially when it is unfeasible to volunteer in-person, such as food banks and children’s athletics clubs. Still others are volunteering to deliver food and cleansers to

 NACD PRESIDENT/CEO ERIC R BYER (OPPOSITE) SAYS CHEMICAL DISTRIBUTORS HAVE BEEN STEADFAST IN SUPPORTING THEIR COMMUNITY RELIEF EFFORTS DURING THE HEALTH CRISIS

high-risk groups like the elderly who are either unwilling or unable to leave their homes. And NACD members are supporting their employees too. One company gave their workers ‘thank you’ bonuses for continuing to come to work to meet the overwhelming increase in orders the business was facing. Another NACD member converted its conference room into a makeshift daycare so employees could bring their children to

weathered the Covid-19 storm economically and healthfully. They have been creative and flexible to shift into new markets and find new customers to keep their businesses afloat when many other industries are suffering considerably worse. They have been steadfast in supporting their community relief efforts so that those who need vital products to combat the coronavirus have access to them. And they have been fully committed to ensuring

work on a rotating basis, as schools have been closed across the country since this spring. And another company was able to support their local restaurants and their employees at the same time by delivering food from those restaurants to their workers. We are proud of how our members have

the health and wellbeing of their employees and their families remains a top priority. Needless to say, we have the highest confidence that our members will successfully rise to any future challenges the global health and economic crisis throws their way. www.nacd.com

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Indiana, as well as the deployment of emerging technologies, such as the LocusBots collaborative robots that enhance picking productivity rates and site throughput. The company announced plans earlier this year to increase its fleet of LocusBots to 1,000 by the end of 2020.

DHL SUPPLY CHAIN, a North American leader in contract logistics, has announced further investment to strengthen its life sciences and healthcare capabilities, committing more than $70m to develop additional specialised warehousing infrastructure and deploy new technologies to support its pharmaceutical and medical device customers. The latest investment builds on a $150m commitment in June 2019, which focused on expanding the company’s US distribution network with the aim of bringing critical healthcare products closer to its trade

Scott Cubbler, president of life sciences and healthcare at DHL Supply Chain North America. “At the same time, we recognise that demand will only intensify in the future as the market develops its response to the Covid-19 pandemic and adjusts to new ways of addressing patients’ everyday healthcare needs. “By making this investment, which will also allow us to expand the use of efficiencyboosting new technologies,” Cubbler continues, “we are providing our customers with a platform for further growth, as well as the flexibility they need to respond as essential

SIGN WITH SIEMENS Further strengthening DHL’s position in the US pharmaceutical supply chain, the company has joined forces with Siemens Healthineers, a leading medical technology company, in the form of a comprehensive service logistics agreement in the US. An important focus area in the relationship will be the use of digital and robotics technologies that are designed to deliver continuous quality and cost improvements within the supply chain of Siemens Healthineers, enabling high levels of delivery performance and customer satisfaction. “The Americas is an important growth market for Siemens Healthineers, and the quality, flexibility and speed of the service logistics platform we have established in the region helps us better serve our customers,” says David Pacitti, president and head of the Americas at Siemens Healthineers. “Working with DHL Supply Chain, we have an exciting opportunity to further strengthen our services and support our company’s ambition to deliver a digital advantage for our customers and their patients in this region.” The two companies plan to invest in a state-of-the-art World Distribution Center in Memphis, which will be operated by DHL Supply Chain and will incorporate DHL’s proprietary warehousing and inventory management system and proven innovations, such as automated storage and retrieval systems and augmented reality-assisted picking, to maximise efficiency and productivity.

partners and their patients. “DHL Supply Chain was already wellpositioned to support our customers in recent months, thanks to our industry-leading footprint in North America and the investments we have made in fully licensed sites that meet their storage and handling requirements,” says

services in a fast-changing environment.” DHL Supply Chain currently operates 30 specialised facilities with more than 11m ft² of temperature-controlled and certified infrastructure in the US. This latest investment will include the development of new customer sites in Memphis, Tennessee and Indianapolis,

Digital technologies, such as DHL’s MySupplyChain application and GPS tracking for final mile delivery, will provide engineers with additional transparency, visibility and control over their orders and returns. “DHL Supply Chain is bringing more than 20 years of experience in healthcare logistics,

MEET THE NEED PHARMA • DHL HAS BEEN BUSY IN NORTH AMERICA, ADAPTING ITS SUPPLY CHAINS TO HELP SERVICE INCREASING DEMAND FOR PHARMACEUTICAL AND HEALTHCARE PRODUCTS

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a company-wide culture of continuous improvement, and a broad suite of end-to-end, digitally enabled supply chain solutions to this relationship with Siemens Healthineers,” says Scott Allison, chief customer officer, Global Service Logistics at DHL Supply Chain. “Thanks to Siemens Healthineers’ leadership in medical technology and their commitment to transforming care delivery through increased digitalisation, we believe that we have an opportunity to jointly leverage our capabilities and to generate substantial value in their supply chain,” Allison adds. “We will also be applying our expertise in contract logistics and the capabilities of our broader service logistics network to target cost savings in materials procurement, labor sourcing and carrier management.” The ten-year agreement will occupy some 260,000 ft² of the 422,000-ft² facility DHL has acquired in Memphis; this was, DHL says, the first speculative logistics facility to be built in the region for more than ten years.

DHL Global Forwarding has recently renewed its certification according to the International Air Transport Association’s (IATA) CEIV Pharma standard. “For years, the number of regulations and requirements has been steadily increased in the life sciences and healthcare industry in general, especially regarding product transportation and storage,” says Nina Heinz, global head of Network & Quality, Temperature Management Solutions, at the company. “Although we at DHL have been a leader in ideas and innovation in the industry for a long time, we recognise that there is always room to improve. With our renewed IATA CEIV Pharma Certification, we are both clearly demonstrating our continued emphasis on constantly enhancing our service quality and showcasing that we are a reliable partner for transporting vital and temperature-sensitive products.” Sister company DHL Express is also responding to the current Covid-19 crisis by expanding capacity and headcount at its locations at US airports, adding some 400 new positions. “Inbound shipment volume

is booming, particularly from Asia,” says Greg Hewitt, CEO of DHL Express US “Our customers are relying on us to deliver their shipments, whether it’s personal protective equipment (PPE) or home necessities, so we must add staff at our hubs, gateways and on the road to continue providing our customers with excellent service.” Volumes have significantly increased in recent months due to a spike in online shopping as people stayed quarantined. Urgent shipments such as masks, gloves and other PPE also contributed to Holiday-season-like volumes, but these volumes have come without the usual pre-season preparation time for the peak. “Our challenge this year is that we’re seeing peak volumes in the summer, which is a non-traditional time. We normally have time to prep for peak season,” says Hewitt, noting that volumes through the DHL Express Americas Hub at Cincinnati/ Northern Kentucky International are 30 per cent higher than a year ago. www.dhl.com

AIR ACTIVITY DHL Global Forwarding, another part of the Deutsche Post DHL Group, has also made investments, alongside its partner Air France KLM Martinair Cargo, to improve transparency in the pharmaceutical logistics chain, creating a direct host-to-host connection to provide reliable tracking data. “When securing product integrity and patient safety in the supply chain, data transparency is key,” says David Goldberg, CEO of DHL Global Forwarding US. “Taking a partnership approach to automating shipment data sharing for cargo characteristics like container temperatures is an essential step to providing our customers with peace of mind about how their shipments are being moved across the globe.”

 MANY OF DHL’S BUSINESS UNITS IN NORTH AMERICA ARE LEVERAGING THE BENEFITS OF DIGITAL SYSTEMS TO EXPAND THEIR SERVICE OFFERINGS IN THE PHARMA AND HEALTHCARE SECTORS

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WHOLLY TOLEDO EXPANSION • BRENNTAG IS PROGRESSING WITH GROWTH IN THE US AND WITH ‘PROJECT BRENNTAG’, DESPITE THE DIFFICULT BUSINESS ENVIRONMENT

BRENNTAG NORTH AMERICA has been busy recently, completing work on a new facility and continuing its acquisition path to be able to provide a more comprehensive service for its clients. In late July it opened a new full-line distribution centre in Toledo, Ohio (pictured opposite), offering some 230,000 ft² (21,400 m²) of space for the storage and distribution of commodity and specialty chemicals, solvents, surfactants and food ingredients. It sits adjacent to a seven-acre (2.8-ha) tank farm and has both interior and exterior rail links. “Toledo provides a perfect location to improve service levels and grow volumes with the existing customer base in Michigan and Indiana, while increasing growth opportunities in Ohio,” says Dan Arneson, president of Brenntag Great Lakes. “Brenntag’s global supply and distribution network is now fully available to local customers in the tri-state area. The combination of our dedicated

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employees, innovative supplier base, and strong customer focus will provide our customers with fast response times, efficient low-cost logistics, and expert technical and market support.” Steven Terwindt, COO of Brenntag North America, adds: “This advanced rail-connected distribution centre in Toledo is the beginning of a new growth cycle for Brenntag in the Michigan, Indiana, and Ohio area. Our principal objective has always been, and will continue to be, to serve the needs of our customers and suppliers in the safest and most efficient manner possible. In addition, our dedicated specialty product storage and logistics capabilities will provide our customers with an extra service dimension.” SODA AND LUBES Brenntag has also acquired the caustic soda business of Suffolk Solutions, a Virginia-based

distributor whose assets include a tank terminal and rail transloading facility in the state. “The business and the related terminals of Suffolk Solutions fit seamlessly into our ambitions to further link Brenntag’s caustic soda network in the eastern US,” says Terwindt. “There is great potential to strengthen our supply chain and expand our customer base in this geography.” “Suffolk Solutions will strengthen Brenntag’s footprint in the Virginia market and thus will enable us to improve our logistical infrastructure throughout the region,” adds Anthony Gerace, managing director of mergers and acquisitions at Brenntag Group. “It will provide us with greater supply flexibility, manoeuvrability, and additional storage capacity on the east coast of the United States.” The acquired business generated sales of some $15.6m in the twelve months to the end of April 2020. Somewhat further east, Brenntag has agreed to acquire Thailand-based lubricants distributor Oils ‘R Us, plugging a gap in its regional network for the distribution of lubes for the automotive, commercial, industrial and marine sectors. “Our acquisition in Thailand, which is the second largest economy in south-east Asia, perfectly drives Brenntag’s lubricants expansion plan in the region forward,” says Henri Nejade, CEO of Brenntag Asia Pacific. “Not only regional, but also in terms of service

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offering, since Oils ‘R Us offers us extensive possibilities to establish lubricant decanting and re-packaging capabilities in the future.” FOLLOW THE MONEY Brenntag Group has also released its secondquarter financial results, which show a 13.4 per cent year-on-year decline in sales to €2.82bn but a 3.7 per cent improvement in operating EBITDA at €276.2m and pre-tax profit virtually flat at €167.0m. “Although we reported solid results in the second quarter with still limited effects of the Covid-19 pandemic on our business performance, we noticed declining demand in various customer industries, and the uncertainty in the markets with regards to the further developments remains high,” says CEO Christian Kohlpaintner. “The positive performance in the first six months is a sound foundation for the second half of the year which we expect to be even more challenging.” Despite the focus shown on growing its business in North America, this division performed poorly in the second quarter, with sales down 15.0 per cent at €1.04bn and operating EBITDA off by 8.4 per cent at €117.1m. Earnings were impacted by what

 CHRISTIAN KOHLPAINTNER, BRENNTAG’S CEO (ABOVE), IS LEADING A PROCESS OF TRANSFORMATION BUT IS WARY OF THE EFFECT OF COVID-19 ON BUSINESS PERFORMANCE IN THE SECOND HALF OF THIS YEAR

Brenntag describes as “clear declines in the business with customers of the oil and gas industry as well as by the Covid-19 pandemic”. Sales also fell in the Europe, Middle East and Africa (EMEA) division, dropping by 9.7 per cent on the year to €1.21bn, although operating EBITDA rose nearly 20 per cent to €130.1m. Brenntag describes this as a “very good quarter”, driven by growth in demand from the cleaning, pharmaceuticals and personal care sectors and “sound business performance” in Germany, Austria, Switzerland, Scandinavia and the UK. The decline in sales in the Asia Pacific region compared to last year was 10.7 per cent, resulting in a figure of €339.4m, with operating EBITDA down 4.7 per cent at €24.3m. This decline was mainly due to the Covid-19 pandemic, with some countries being in very restrictive lockdown during the quarter, although China had already begun the process of reopening. The smaller Latin America division experienced a 12.7 per cent fall in sales to €184.7m, though operating EBITDA rose by 14.2 per cent to €15.3m, despite what Brenntag calls “a continued difficult and volatile macroeconomic environment”. WHAT’S NEXT “The outbreak of the Covid-19 pandemic has made 2020 a year of very special challenges for Brenntag,” Kohlpaintner says. “Back in March, we set up an end-to-end crisis management

system with extensive measures to protect the health and safety of our employees and business partners, which has continued to pay off to this day. In the first half of 2020, we managed to minimise the effects of the pandemic on our business performance and the supply chain. We will continue to do all we can to ensure that business runs smoothly. “Nevertheless, we too find it difficult to make assumptions about the further course of the pandemic,” he continues. “We expect increased levels of uncertainty over the further course of this year and cannot rule out the possibility that the pandemic will have a severe adverse effect on our business performance, especially on the demand side or in the event of growing shortages in supply.” Since Kohlpaintner assumed the leadership of Brenntag at the start of this year, the company has been working on a holistic analysis of its business, which has now become ‘Project Brenntag’. “The work on this transformation programme addressing our company’s long-term positioning has continued undiminished in recent months despite the unfavourable circumstances,” Kohlpaintner says. “We have drawn initial conclusions, defined measures and developed a comprehensive plan to implement this transformation programme. We have now entered a validation phase so as to maximise the level of coordination on and approval of the planned changes within the Group. “We will communicate details of ‘Project Brenntag’ at a Capital Markets Update when the results for the third quarter of 2020 are published in early November this year.” www.brenntag.com

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REACH FOR THE FUTURE STRATEGY • THE WORLD IS CHANGING FAST AND DISTRIBUTORS HAVE TO ADAPT TO MEET NEW DEMANDS. UNIVAR IS AIMING TO STREAMLINE ITS OPERATIONS TO MATCH

we are seeing changes in market conditions and customer preferences. We believe that our S22 programme, as part of our strategy to Streamline, Innovate and Grow, will help to ensure we have the agility to enhance our competitiveness, advance our digital capabilities to better serve customers and increase our operational and financial flexibility as we work to position the company to capture greater value from the market recovery and growth opportunities ahead.”

UNIVAR SOLUTIONS HAS embarked on a far-reaching programme – dubbed ‘Streamline 2022’ or ‘S22’ for short – to accelerate growth and increase earnings. The programme, announced in early August, envisages a renewed focus on operational efficiency and cost reduction and, in

certain non-core assets and is expected to have a particular impact on operations in North America. As part of S22, there will be a range of senior organisational alignments, with North American segments now reporting directly to group president/CEO David Jukes. As part of

FACES THAT FIT As part of the changes in North America, two new appointments have been made. Jennifer McIntyre has assumed the role of senior vice-president and chief streamline officer, as well as head of North American

particular, the integration of the company’s digital capabilities. S22 is expected to improve operational agility, drive faster sales growth, reduce leverage and, by the end of 2022, improve EBITDA margins to 9 per cent. The programme may well result in the sale of

this, Mark Fisher has stepped down from his position as president of USA and Canada to pursue other opportunities. Explaining the move, David Jukes says: “While we are currently reporting solid second quarter results, and progressing as expected on our Nexeo integration plans,

operations. She will be responsible for driving the completion of the Nexeo integration as well as the S22 cost and productivity efforts. Brian Herington has been appointed senior vice president, CCO and head of North American Chemical Distribution. In this role

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he will continue to drive the step change improvements in Univar Solutions’ commercial practices globally and lead its chemical distribution business in the US and Canada. Herington will build on the work already done to deliver market share growth through an omni-channel, customer-centric approach supported by digitised systems and automated processes. Elsewhere, Nick Powell has been appointed senior vice-president, president of EMEA/ APAC and global head of Consumer and Industrial Solutions. In this role he will focus on consistency of performance for customers and suppliers in all geographies, working to provide new opportunities for growth. “The expansion of this largely differentiated set of chemistries and ingredients is an important driver of the company’s mix enrichment goals,” Univar says. The Latin America division will continue to be led by Jorge Buckup.

 DAVID JUKES, UNIVAR CEO (BELOW), SAYS THE ‘STREAMLINE 2022’ PROJECT WILL ENSURE THE COMPANY ENHANCES ITS COMPETITIVENESS, THROUGH FINANCIAL FLEXIBILITY AND LEVERAGING ITS DIGITAL CAPABILITIES

Univar expects that the S22 programme will result in $50m in additional costs in 2020, of which some $20m will be cash; divestment of non-core assets should deliver cash proceeds of at least $200m. LATEST RESULTS Univar Solutions has meanwhile reported second-quarter financial results that it describes as “solid”, despite the inevitable impact of the Covid-19 pandemic. External sales were 22.3 per cent lower than the same period last year at $2.01bn, with consolidated adjusted EBITDA down 18.8 per cent at $163.2m and consolidated net income slumping from $16.3m to $1.8m. Nonetheless, Jukes remains upbeat, saying: “I’m pleased with our operating and financial performance during the quarter in these challenging times, as we lived our values and continue to make the safety of our employees, suppliers and customers our priority. The strength of our supplier and customer relationships, operating infrastructure, investments in our sales force and digital capabilities, along with our agility, has enabled us to execute well in difficult markets.” But the difficulties being experienced in markets around the world, and the need to try to predict the shape of business in the future, underpins the S22 programme. Jukes explains: “Looking ahead, accelerating our strategy through the Streamline 2022 programme will ensure we continue to enhance our competitiveness, advance our digital capabilities to better serve customers, increase our operational and financial flexibility, and capture greater value from the market recovery and growth opportunities for both the near- and long-term.” AROUND THE GLOBE Sales fell in all four geographical divisions but particularly in North America. The USA division recorded a 27.2 per cent decline to $1.17bn and Canada was off by 18.1 per cent at $331.5m. The decline in the small Latin America division was 15.4 per cent, while

Europe, Middle East and Africa (EMEA) lost 10.5 per cent at $409.6m. In the USA segment, sales fell as a result of lower industrial end market demand, energy headwinds and price deflation for certain products. The drop also reflected the earlier sale of the Environmental Sciences business. Gross profit was down by 19.1 per cent, though gross margin improved on the back of favourable changes in the product mix in essential end markets. There was also a smaller improvement in EBITDA margin, partly reflecting net synergies from the Nexeo acquisition. Results in Canada were also influenced by the Environmental Sciences divestiture and the same fundamental business conditions as those experienced in the US. Latin America experienced some demand improvements in essential end markets and the energy sector but its results were impacted by adverse exchange rate movements. There was, though, a 17 per cent increase in adjusted EBITDA to $11.0m. In the EMEA region, the decline in industrial end market demand was partially offset by higher demand for certain products in essential end markets. Gross margin similarly improved as a result of the change in product mix, while adjusted EBITDA increased by 3.0 per cent to $39.7m. As it had advised earlier, Univar has withdrawn its full-year financial guidance as a result of the “evolving and dynamic” implications of the Covid-19 pandemic on the macro-environment and the company’s business. In response to this “challenging and uncertain” economic environment, Univar says it is “continuing to actively manage its expense base and seeking to realise cost reductions” in an effort to maintain its financial strength while continuing to serve the needs of its suppliers and customers. Those cost savings are expected to aggregate more than $40m this year, in addition to the net synergies of $35m anticipated from the Nexeo acquisition. www.univarsolutions.com

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

AGM’s CEO, says. “Maroon Group has leading expertise in additive sales and customer service, which is essential to support sales at this early stage of the graphene market’s development.” www.maroongroupllc.com AZELIS INTO ISRAEL

MAROON BUYS HOLLAND

Maroon Group has acquired Holland Chemicals, a value-added distributor of specialty chemicals and ingredients to the personal care, household & industrial cleaning, food, and industrial markets. Based in Burr Ridge, Illinois, Holland Chemicals provides a differentiated service offering through its technical sales model, formulary support and development capabilities, and a relentless focus on customer service. As part of Maroon Group, Holland Chemicals will continue to focus on its core markets while leveraging Maroon’s North American footprint, broad product offering, operational infrastructure, and digital capabilities to better serve customers and suppliers alike. “This transaction is another example of our commitment to targeted aggressive growth, and we’re thrilled to welcome the Holland Chemicals team to Maroon Group,” says Terry Hill, CEO of Maroon Group. “The business further strengthens our presence in several core end-markets and geographies, and adds depth to our technical and formulary teams.” “The combination with Maroon Group represents an ideal cultural and strategic fit for our organisation,” adds Jonathon Rhodes, who led Holland’s management team and will continue to manage the business on a

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day-to-day basis. “We were able to join a team that is passionate about the industry, is focused on sustainability, and recognises the importance of creating value for our customers. We look forward to being able to leverage the growthoriented resources and added stability that Maroon Group provides. We are excited for the opportunity this creates for our employees, customers, and suppliers.” Maroon has meanwhile appointed Jason Miller as president of its Household, Industrial & Institutional (HI&I) vertical, acquired from Jeff and Barry Tannenbaum in 2018. The move is part of a long-term succession plan, under which Barry Tannenbaum stepped down at the end of June. “We’re grateful for Jeff and Barry’s leadership and support since Maroon Group acquired the business in 2018. They were an integral part of this succession process and we’re excited for them and their families as they begin their next chapter,” says Terry Hill. Maroon Group has also won a distribution agreement with Applied Graphene Materials (AGM) to introduce its proprietary Genable graphene dispersions technology to the US and Canadian coatings and polymers market. “I am delighted to announce Maroon Group as a very strong partner to help AGM drive commercial uptake of our graphene products in the North American market,” Adrian Potts,

Azelis has agreed to acquire Orokia Israel Ltd, a speciality chemical distributor active in several market segments in Israel. Formed in 2005, Orokia represents blue-chip principals supplying the agrochemical, animal nutrition, personal care, pharmaceuticals and industrial chemicals markets. “Orokia and its forerunners have been present in the Israeli market for almost four decades, during which time the company has built up a strong market presence, counting major global players among the principals represented and serving more than 200 customers,” says Anna Bertona, CEO/president of Azelis EMEA. “This acquisition will bring an abundance of cross-selling opportunities to expand the business with our existing long-standing and trusted partners. For all these reasons, we are very excited about Orokia joining Azelis.” “Becoming part of a strong international player such as Azelis will bring considerable added value to our offering in the local market, especially in our core areas of application and formulation support, which are pivotal to success in specialty chemicals,” adds Liliane Halimi, managing director of Orokia. “We will also benefit from Azelis’ strong international infrastructure and access to additional customers and suppliers. In short, we see many growth synergies and we are confident that we are entering a thriving new chapter in the history of our company.” www.azelis.com MEGAFARMA ADDS DEALS

Megafarma has added further to the contracts it has gained since its acquisition earlier this year by Azelis. The latest win involves the distribution of Celanese’s emulsion polymers in Mexico. “Celanese and Azelis have a terrific working relationship. We have partnered together for many years in the US and Canada CASE market,” notes Dan Gruber, managing director of new business development, Azelis Americas CASE. “Expanding this relationship to Mexico

CHEMICAL DISTRIBUTION 23

is a great opportunity for both of us. The emulsion polymer technology from Celanese is best in class and we look forward to growing the CASE business in Mexico.” This latest win builds on a contract with BASF Monomers, under which Megafarma is distributing its polyurethane raw materials in Mexico. Explaining the move, Martin Hernandez Gutiérrez, director general of Megafarma, says: “Megafarma has been very successful in life sciences in Mexico and the merger with Azelis earlier this year brought us new opportunities and enabled us to enter new market segments. This new agreement with BASF is the latest example of our commitment to expand into Mexican CASE sector and become a leading distributor with unsurpassed quality, logistics and technical support for our customers and principals.” www.azelis.com/americas DKSH STAYS SOLID

DKSH has posted figures that it says are “solid half-year results in extraordinary times”. Net sales slipped slightly to SFr 5.34bn ($5.89bn), mostly due to exchange rate movements, with

operating profit up 0.5 per cent at SFr 111.3m. “DKSH generated higher cash flows and maintained its strong balance sheet,” the company states. “In sum, Healthcare, Performance Materials and Fast-Moving Consumer Goods increased profits. Technology as well as Luxury and Lifestyle products were materially impacted by Covid-19. At constant exchange rates, group net sales remained around last year’s level and adjusted EBIT only declined by a single-digit percentage, while free cash flow increased. In addition, DKSH successfully closed two acquisitions and expanded its eCommerce business.” Stefan P Butz, CEO of DKSH, says: “Our highest priority is to ensure the safety and well-being of our employees and stakeholders as well as ensuring business continuity. The dedication of everyone at DKSH and our ability to remain fully operational despite significant challenges laid the foundation for our solid results. Even in the current volatile markets, our share of daily consumer and healthcare items as well as our leading position in Performance Materials make our business resilient. We remain

optimistic about Asia’s long-term outlook.” www.dksh.com BM FOR BASF

Bodo Möller Chemie has expanded its relationship with BASF South Africa, taking over the sale and distribution of dispersions for architectural coatings in southern Africa and English-speaking countries in West Africa. In Ghana and Nigeria, the collaboration also includes the distribution of BASF resins and additives. “With the latest collaboration, the Bodo Möller Chemie Group not only solidifies the long-standing trustful partnership with BASF, but also confirms its commitment as one of the leading distributors of specialty chemicals to invest in the African market and thus strengthen its global position in the coatings sector. By developing a Coatings Competence Centre in South Africa, the Bodo Möller Chemie Group will also expand its technical expertise and deliver significant added value to the customer,” the company states. bm-chemie.com

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DRIVE THROUGH THE CRISIS INTERMODAL • BERTSCHI HAS REVEALED THE EXTENT OF THE IMPACT OF THE COVID-19 CRISIS ON TRANSPORT VOLUMES AND BUSINESS PERFORMANCE IN THE FIRST HALF OF THE YEAR

block trains cross national borders, has enabled smooth transport operations during the crisis, during which borders were closed for a time, preventing the passage of trucks and drivers. “Even during the crisis, Bertschi is proactively seizing new opportunities in the market and investing in innovative and sustainable customer solutions,” says Jan Arnet, group CEO. “This applies to both the European market and our global services, where we see considerable potential for further growth.” Bertschi has already announced that its efforts in broadening the use of digitised solutions are being accelerated even further. To help that responsiveness and financial stability, Bertschi has secured long-term liquidity through additional bank loans, signed under what it says are “favourable borrowing conditions”. Hans-Jörg Bertschi explains: “In addition to long-term liquidity, we have achieved our objective of attaining sufficient room for manoeuvre to proactively take advantage of opportunities offered by the market even during the crisis.”

THE BERTSCHI GROUP reports that it has “so far coped well with the effects of coronavirus”, helped in no small part by the prompt and successful way its China operation tackled the challenge at the outset. Similarly, it says, major investments in digital transformation over the past two years enabled it to shift 80 per cent of its office-based staff to home-working “within days and with no impact on quality”. However, as it says, the group cannot escape the impacts of Covid-19. Business volumes in its core European transport business fell by nearly 20 per cent between the start of April and early July, largely due to a slump in demand from the automotive and consumer durables sectors and, as a consequence, the chemicals they use. Nevertheless, Bertschi says its business

challenges it faces. “The road back to normality will take some time, however, and there is a continued risk of further setbacks,” the company says. Recovery in the automotive and consumer durables sectors is expected to be slow, lasting perhaps to the end of 2021. “We do not expect global demand for chemicals to return to pre-crisis levels until the end of 2021,” says Hans-Jörg Bertschi, executive chairman of the group. “However, we do see short-term opportunities in the market and can implement the necessary investments very quickly thanks to our robust financial situation.” MONEY TO SPEND The company notes that many of its customers

PLANNED SUCCESSION The Bertschi Group has also taken steps to bolster its Board of Directors, with two new appointments made at its AGM on 4 July. It has brought in Kurt Haerri, currently a senior vice-president at Schindler, where he has worked since 1987. Haerri has spent many years in China and for eight years to 2014 was president of the Swiss-Chinese Chamber of Commerce, where he is currently a member of the board. “His many years of experience in the Chinese market and in global supply chain management will bring new impetus to the Bertschi Group,” the company says. Also joining the board is Jörg Berner, the first third-generation representative of the Bertschi family. He joined the company in 2016 as project manager in strategic projects and in 2018 helped establish the new company site in Houston. “Jörg Berner’s appointment to the

performance over the first five months of 2020 was “satisfactory” in view of the major

have responded to the crisis by diversifying and strengthening their supply chains, and sustainability has become more important. Bertschi is looking to seize these opportunities by offering new services that will help compensate for the loss of traffic overall. Its existing focus on combined transport, in which

Board of Directors is in line with the succession concept and the Bertschi family constitution of 2009, which aims to facilitate the transition from the second to the third generation with a transitional phase between the generations,” the company notes. www.bertschi.com

 BERTSCHI SAYS BUSINESS PERFORMANCE HAS BEEN SATISFACTORY BUT THE ROAD BACK WILL BE LONG

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and he reports a lot of interest in the new concept. One particular benefit is that the ability to carry two empty tanks at once provides more options for deploying the chassis, opening up possibilities in triangulation and higher asset utilisation.

A TANK CONTAINER will not go far by road on its own – it has to be carried on a chassis. In North America in particular, the leasing of specialised chassis for ISO tanks is an established business but also one that is unlikely to generate a great deal of innovation. That is about to change, though, with the introduction this month of a new hi/lo slider chassis by leading chassis leasing firm Twinstar Leasing. The new chassis, designed in collaboration with Kwik Equipment of Pearland, Texas, can carry two empty ISO tanks at the

such chassis to be able to do so while being low enough to pass under road bridges safely. Additionally, the new chassis slides from 30 to 40 feet, allowing it to back fully up to a dock so workers do not have to walk up on the deck, thus creating a safer working environment. “I wanted a chassis that can do everything,” Lofland says, happy to see to fruition a project he championed after joining Twinstar last year. The only disappointment is that Twinstar has been unable to launch the new chassis as planned at this year’s

LEASING THROUGH THE CRISIS The current health crisis has indeed had an undeniable impact on Twinstar’s operations, with industrial activity slowing and its customers becoming more attentive to pricing. While Twinstar itself has been able to transfer its personnel to home working, the same has not been the case at the depots and service centres that it uses around the US to keep its chassis in top condition. While Twinstar has been able to do get the necessary repairs and maintenance carried out, Lofland says, it has been something of a struggle. Fortunately, all of Twinstar’s chassis are fitted with GPS tracking, so it is possible to plan maintenance and repair activities ahead of time. Also, more fundamentally, the leasing option is designed to minimise costs for chassis users. Twinstar’s customers are not all high-volume tank container users and so it offers short-term – even month-by-month – leases on its equipment for companies just starting to use intermodal transport. The price of a new chassis can be as much as $40,000 so, especially for occasional users, the leasing option is usually much more favourable, allowing them to invest in their own operations rather than in buying their own chassis fleet. Twinstar Leasing is based in Mount Pleasant, South Carolina and works with partners in locations across the US to provide its chassis to customers. Twinstar Leasing was established in 1984 by Arthur Schmidt

same time and is, says Larry Lofland, director of operations and sales at Twinstar, the first

National Tank Truck Carriers (NTTC) Tank Truck Week, as it has had to be moved to a virtual event along with most other gatherings due to the Covid-19 outbreak. Lofland has, therefore, had to go back to the old-school way of doing things: picking up the phone and talking to his customers,

Jr and remains in family ownership; his daughter Margie Schmidt joined the firm in 1993 and continues to manage it. She says: “Our goal is to provide you with the most personalised, knowledgeable tank chassis leasing service in the world!” www.twinstarleasing.com

CARRY THE CAN CHASSIS • TWINSTAR LEASING IS SHOWING THAT THERE IS ROOM FOR INNOVATION IN CHASSIS DESIGN WITH A NEW SLIDER CONCEPT TO HELP OPTIMISE TANK CONTAINER MOVEMENT

 TWINSTAR’S FOCUS ON CHASSIS LEASING MAKES IT A NATURAL TO LEAD DESIGN DEVELOPMENTS

HCB MONTHLY | SEPTEMBER 2020

TANKS & LOGISTICS 27

MIMU HITS THE SPOT LEASING • MIMU TANK LEASING FOCUSES ON THE SPECIALTY CHEMICALS MARKETS. OPERATIONS DIRECTOR STEVE GOVERS SHARES HIS OUTLOOK ON THIS NICHE SECTOR HCB: When was the company formed? Did you identify a gap in the market? SG: We are a very young company, founded in 2016. Earlier we ran a third-party logistics (3PL) business within the bulk liquid industry and from there we identified a very interesting niche market in specialty chemicals. Our customers were simply asking us if we could supply the tanks as well as manage the logistics. Knowing that these products require a more hands-on approach and having that expertise in-house, we decided to expand our offer and MIMU Tank Leasing BV was born. We since sold the 3PL business and our focus is now 100 per cent on leasing.

 STEVE GOVERS: MIMU IS READY TO MEET THE EXACT NEEDS OF ITS CUSTOMERS

Furthermore we are a fully operator-owned family business, which enables us to act very fast with a strong focus on customer service that stands out. Our fleet ranges from 12,000-litre to 24,000-litre tanks, offering lined tanks, T11 to T22s to T50 gas tanks. HCB: How are tank lessors performing at present? Has the over-supply of new tanks affected the leasing sector? SG: On an overall level the yearly growth of the tank container market can be followed in the ITCO reports. Low build costs has incentivised tank lessors as well as tank operators to build new tanks and grow their fleets. This has led to an oversupply in the industry, mainly regarding 25,000 and 26,000-litre units. On a more practical level I just have to glance out of a window in our Antwerp office to see

incredible volumes of tanks sitting idle and filling up the tank depots. Oversupply on one hand and all time low leasing rates on the other - we knew we had to do things differently if we wanted to build a profitable tank container leasing company. HCB: Has the tank leasing sector been affected by the Covid-19 pandemic? Is demand holding up? SG: Global trade was one of the first things affected by this pandemic and, with chemical production giants such as China and India going into lockdown, there was an immediate effect on the market. As a growing company new projects are our bread and butter, so naturally this has been a challenge to us. We have seen many projects being put on the back burner during the first half of 2020. However, at the time of this interview I am seeing several of these projects starting up again, so I am carefully optimistic. HCB: Are you taking on any new tanks this year? SG: Many of the new tanks we have built this year have been of smaller sizes, 12-15,000 litres, for heavier and corrosive products like acids and chlorides. All of them have been built for specific customer projects, which is the way we operate. While other lessors can build hundreds of units at a time as part of their growth strategy, that would not work for us. Given the specific nature of the products in our niche, building on speculation is not the correct strategy for us. Instead our operation is set up to quickly meet the exact needs of our customers when it arises. HCB: Where do you see yourselves in the market, and how are you different? SG: First of all, our strategy is not to be the largest tank container lessor. In terms of fleet size we are probably not even in the top 50. Instead we are fully dedicated to providing a world class customer experience. One of the first ways you will notice this as a new potential customer is that we aim to reply to all inquiries within 24 hours. So for the coming years our small but very experienced team will continue to work hard making a name for ourselves in the specialty market, while growing at a healthy pace. mimu-tankleasing.com

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FOLLOW THE MARKET DEPOT • GROWTH IN THE GULF COAST PETROCHEMICAL INDUSTRY PROVIDES SUPPORT FOR HIGHWAY TRANSPORT’S INVESTMENT IN A NEW DEPOT, CLEANING FACILITY AND TRAINING CENTRE KNOXVILLE, TENNESSEE-BASED HIGHWAY Transport has opened a new flagship service centre in Geismar, Louisiana, built at a cost of $12.5m to serve the needs of chemical customers across the Gulf Coast region. It also positions Highway Transport to better serve several prominent chemical companies in the region, where investment is increasing production capacity and attracting new entrants. “The growth of our Highway Transport family in Louisiana marks an important milestone for our company as we continue to focus on expanding in this region,” says Marshall Franklin, president/CFO of Highway Transport. “By adding a service centre in Geismar, we are better positioned to serve companies in the state’s chemical corridor and beyond. We

safety and service to our customers, as well as the Geismar community, which is reflected by the environmental safety measures we took in building the facility and setting up our safety and cleaning protocols on-site.” “Geismar is central to a growing number of chemical plants, including many of Highway Transport’s customers,” adds Barry Hall, managing director of Tank Wash Services, Environmental and Facilities. “A service centre in Geismar is beneficial for our company and our team members to continue to serve clients with a more than 98 per cent on-time rate, while maintaining our commitment to quality and safety.” The new Geismar facility will act as a central hub for Highway Transport’s own tank trucks

remain committed to providing award-winning

and drivers. The office will also coordinate logistics, technology, tank cleaning and other critical operations.



WHAT’S IN THE STORE The two-story Geismar facility includes a six-bay maintenance shop, four-and-a-half-bay

HIGHWAY TRANSPORT HAS DESIGNED ITS NEW SERVICE CENTRE WITH ITS DRIVERS IN MIND

HCB MONTHLY | SEPTEMBER 2020

tank wash, multiple offices and a conference room. It also has space to accommodate up to 150 of the firm’s 400-strong truck fleet. It also provides full amenities for its drivers, including a comfortable break room to watch television and movies, wifi access, showers and more within the secure, gated facility. “Highway Transport cares about its drivers and employees and this flagship facility was built with their safety and convenience in mind,” says Lucian Welch, the centre’s manager. “Feedback from our drivers and team members thus far has been positive, and they know Highway Transport cares about them.” The Geismar centre also houses a training centre, Highway Transport’s second and the first in the Gulf Coast region. The training facility is designed in part to onboard drivers joining the company with instructions on the company’s safety protocols. Just as important is its impact on the local economy: the centre is projected to create 36 new jobs, with another 76 indirect jobs. This was marked by the presence of Governor John Bel Edwards at the centre’s opening; he said: “As a key service provider to process chemical manufacturers in our state, this is the sort of investment that can only take place if our economy remains poised for continued growth and new economic wins. Highway Transport’s new facility signals that Louisiana is a key market for major bulk transportation of specialty chemicals, and we look forward to the company’s continued growth and success in our state.” Kate MacArthur, president/CEO of the Ascension Parish Economic Development Corporation, added: “We are grateful that Highway Transport chose to invest in Ascension Parish and commit to making Geismar a long-term home by building their state-of-the-art facility and training centre here. They are an asset to our community and provide critical logistics services to our businesses and excellent jobs for our residents.” hytt.com

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DON’T GIVE UP ON NETWORKING TRADE FAIRS WERE postponed, then cancelled. The same thing happened to the many conferences scheduled around the world, making face-to-face contact that more difficult. Exactly: being able to see each other and form new networks is essential in the container shipping industry. This is how you meet new partners and grow your business. And, despite the worldwide pandemic, you still need to work – and network. Maybe you’re looking for a new agent in Indonesia or Hamburg. Or you want to buy or sell containers in Mumbai and Turkey. But for you to do any of this, you need to find companies and new partners that you can work with. Something you would normally go to the now cancelled fairs and conferences to look for. STILL FACE TO FACE But that doesn’t mean that all hope is lost, and that you won’t be able to meet new partners face-to-face this year. At the virtual conference ‘Digital Container Summit’, hosted by Container xChange, you will get a full day of personal video meetings with other shipping companies. Organised for you to increase your partner network

and discuss business with thousands of freight forwarders, shipping lines, NVOs, and container traders. The personal meetings are carried out via video conferencing on event day. You can schedule personal meetings with thousands of owners, directors and operations people from the container shipping industry. That way, it doesn’t have to keep you from networking face-to-face if you can’t travel. You can do all that in the comfort of your home at the DCS2020 - online. LEADERS OF INDUSTRY As with any physical conference, there will also be keynotes speeches by industry leaders at the Digital Container Summit 2020. But. unlike a physical conference, there will, at the online DCS2020, be keynotes for 24 hours regardless of whether you’re in Mumbai, Los Angeles, Shanghai, or Rotterdam. Every time zone has been planned to ensure everyone can see the keynotes from the many thought leaders at the summit. Speakers include industry leaders such as Ralf Belusa, CDO at Hapag Lloyd, Supply Chain, Thomas Bagge, CEO at Digital Container

Shipping Association, and Lars Jensen, CEO at SeaIntelligence Consulting - and many more. All the keynotes will be streamed live and feature an interactive chat. That gives you the opportunity to be kept up to date on the latest trends in the container logistics industry, as well as ask questions and comment on the topics discussed. Apart from keynotes and networking there will also be workshops. One of them will be on how businesses can adjust to remote work - something many firms are still working on. MEET THE INDUSTRY Whether you’re looking for agents, want to increase your network, or sell or buy containers, the Digital Container Summit 2020 is the place to be. At this virtual event you can find, meet and build business with thousands of experts. All you have to do is search by country, company or expertise. After purchasing your ticket you’ll within 24 hours get access to the event platform, where you can find partners, schedule meetings, and attend keynotes. The price of the all-access ticket is $79, giving you access to all the keynotes and personal meetings. Do you also want to build up your network and have face to face meetings? If yes, go to https://container-xchange.com/ digital-container-summit/ and order your ticket to discuss business at the DCS!

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TANKS & LOGISTICS

RHENUS FLAGSHIP IN INDIA

The Rhenus Group has opened a new warehouse in Gurugram, near Delhi in India. The 32,500-m2 warehouse is part of a state-of-the-art logistics facility serving the automotive, mechanical engineering, chemicals and consumer goods sectors. “Our flagship warehouse is raising the bar even higher in terms of quality, sustainability and safety,” says Vivek Arya, managing director of Rhenus Logistics Asia. “It is our goal as a service provider to be the first choice for integrated logistics solutions and scalable storage in India. Well-trained staff, standardised systems and modern processes are our advantage.” Jan Harnisch, global COO of Rhenus Air & Ocean, adds: “India is one of our key markets for our growth plans for the APAC region. Our high quality standards and decades of experience enable us to provide professional support to customers along the entire logistics chain.” The new Gurugram logistics centre offers 30,000 pallet spaces, 19 loading gates and 24-hour security protection. Sustainability has been prioritised throughout, with solar PV panels installed on the roof and water recycling technology integrated within the facility’s design.

This flagship facility is the 69th Rhenus branch in India, where it now has more than 175,000 m2 of space across 30 logistics centres. www.rhenus.group MORE SERVICES IN DUBAI

RSA Talke has expanded the range of services it offers in Dubai to include the repacking of bulk liquids, with a new drumming line and the capability to fill tank containers, road tankers, flexitanks, IBCs and smaller packagings. “With our specialist semi-automated drum filling unit, we ensure product quality, quantity and that formulation accuracy is maintained during each transfer,” the company says. “This service offer forms part of the company’s goals to support the increasing demand for product repacking in current times and in the future, further underlining our intention to offer the full array of chemical logistics services in the UAE and Middle East region.” www.rsatalke.com KATOEN FILLS POLISH HOLE

Katoen Natie has completed the acquisition of Nijhof-Wassink’s warehousing activities in Poland, which are primarily dedicated to the

needs of the regional petrochemical industry. The main facility in Kutno has 40,000 m2 of covered space and is situated next to the PCC intermodal terminal and has good road and rail links. Katoen Natie says it plans to expand the site in the near future, adding another 16,000 m2 of warehouse space and 42 new silos for the storage of polymers. The acquisition marks a significant expansion of Katoen Natie’s petrochemicals business unit and also fills a gap in the firm’s network. “The acquired company fits in perfectly with the existing Katoen Natie structure, both in terms of geographical location and core business,” the company states. “The integration of the new terminal into the existing Katoen Natie network will lead to greater efficiency and economies of scale, which will further improve the services to customers from all over the world.” www.katoennatie.com BELGIUM TO TURKEY BY RAIL

H Essers and Rail Cargo Austria have launched a direct rail connection between Belgium and Turkey, which will focus on H Essers’ strategic segments in chemicals and pharmaceuticals. Eight trains a week will leave Genk for Curtici in Romania, and then on to Istanbul, with a transit time from terminal to terminal of less than six days. “We can transport almost any class of hazardous goods, including the transportation of liquid bulk through tank container specialist Huktra, which was recently acquired by H Essers,” says Hanno Reeser, strategic development manager at H Essers. “It is also important that the entire route is supported by our control tower, which enables our team to monitor the transport from start to finish and intervene if an issue occurs, such as temperature problems.

 RHENUS IS RAISING STANDARDS IN INDIA WITH ITS NEW FLAGSHIP WAREHOUSE IN GURUGRAM

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For this purpose we also use our Safebox containers, which are 45-feet containers specially developed by our company for secured/cold chain transport.” www.essers.com IRON HORSE OPENS IN BEAUMONT

Iron Horse Terminals has put a new rail terminal into full operation, following the opening of a rail link to the Houston Rail Line served by Union Pacific and BNSF. The terminal, near Beaumont, Texas, is the largest such facility in the area, capable of storing more than 1,300 rail cars; it also has a 30-car maintenance facility and a 10-car transloading unit and will soon open a car washing facility. The site is located close to major polyethylene manufacturing capacity and will largely serve the polymers and liquid chemicals sectors. Iron Horse Terminals (IHT) has plans to expand capacity to store more than 4,500 rail cars and offer 25 acres for transload operations, along with rail-served warehousing, a plastics repackaging facility and an inland container port. “Our plan is for IHT to become an integral part of the industry in south-east Texas,” says Steven Birdwell, IHT’s president. “The size and location of the facility, coupled with the

 IRON HORSE TERMINALS HAS PLENTY OF SPACE TO EXPAND ITS BEAUMONT FACILITY

diversity and quality of our services, will allow IHT to create efficiencies in the local industry’s supply chain.” To optimise operations, IHT has partnered with Beaumont-based Lamar University (LU) to develop software to streamline processes. “To support the current and future needs of Iron Horse Terminals and the region’s rapid expansion, this project will develop a web-based system,” says Maryam Hamidi, assistant professor in LU’s Department of Industrial Engineering and lead on the project. “We’ll develop userinterface software using programming skills, database design and optimisation techniques to increase efficiency. The proposed software has the capability of serving multiple types of users with different levels of access and applications. It will store and aggregate all data including inbound and outbound RFID readers and optimally assign railcars to track spots. This software will further visualise and generate outbound car map/list for dispatchers and yard workers.” www.ironhorseterminals.com VTG REVAMPS LPG

VTG has completed its LPG pool modernisation project, retrofitting or replacing more than half of its fleet, which numbers nearly 1,500 tank cars. The work has increased payload, resulting in greater efficiency, along with quieter braking systems and enhanced crash buffers. Most of the wagons are also now fitted with the VTG Connector telematics module.

“We’re thrilled to have been able to conclude the modernisation operation successfully and according to plan, especially in these challenging times,” says Frank Bensaid, managing director of VTG Rail Logistics Deutschland. “With our modern fleet, we are now able to offer our customers increasingly safe and efficient ad hoc transportation.” www.vtg.com HYDROGEN DEAL FOR SUTTONS

Suttons Tankers has won a three-year contract to transport bulk hydrogen for Ryse Hydrogen, which is to supply Transport for London (TfL) with the fuel for 20 new buses. The contract will begin in late September, involving the movement of hydrogen from the north-west of England to London. “We are thrilled to be awarded this contract with Ryse Hydrogen which represents a significant move in TfL’s pledge to offer more sustainable modes of transport. This will demonstrate to the wider public transport sector the practical and environmental benefits of hydrogen fuelled technology,” says Michael Cundy, managing director of Suttons Tankers. Jo Bamford, CEO of Ryse Hydrogen, adds: “Suttons Tankers are a reputable logistics provider of bulk gas which made them the obvious partner of choice. Their attention to detail and ability to create a bespoke solution based upon our requirements were second to none.” www.suttonsgroup.com

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LINKING THE 9,000 INTERMODAL • VTG’S DIGITISATION PROCESS HIGHLIGHTS THE PARTICULAR REQUIREMENTS OF THE TANK CONTAINER SECTOR WHEN IT COMES TO KEEPING TRACK OF MOVEMENTS HAMBURG-BASED RAIL specialist VTG has been using its ‘VTG Connector’ system on its European rail wagon fleet for some time now. The system uses sensors attached to wagons to display their location and other data. But when the company looked to extend VTG Connector to its VTG Tanktainer tank container fleet, it realised that the requirements were going to be very different. A pilot project began in mid-2019 and is now moving towards equipping the entire tank container fleet – numbering around 9,000 units – with smart GPS sensor technology and the VTG Connector. This will, it is hoped, improve safety and efficiency and provide greater transparency throughout the transport chain.

goal was to achieve a significant reduction in the manual effort involved in maintaining our transport management system using the VTG Connector. This, of course, required extensive preparation,” explains Christian Herbon, project manager at VTG Tanktainer. “At the same time, our position on the global market presented us with more challenges, such as obtaining additional certification and issues related to roaming. Among other things, we also developed a straightforward installation process, tested battery performance and battery life, checked the VTG Tanktainer interfaces and verified data availability in the VTG Connect portal,” Herbon adds. “We’ve been working closely

“In addition to ensuring transparency regarding our equipment’s location data, our

with our customers throughout the entire process to ensure that their needs are also addressed directly.”



MORE TO COME The project is proceeding rapidly. “Despite the current challenges associated with the ongoing

VTG TANKTAINER HAS AN AMBITIOUS TARGET TO EQUIP ITS ENTIRE TANK FLEET WITH SENSORS

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Covid-19 pandemic, we’re currently installing up to 60 telematics modules per week and we’re confident that most of the European fleet will be equipped with the VTG Connector by the end of the year,” Herbon says. “We will then turn our attention to tank containers overseas,” he continues. “It should, however, be noted that the latest generation of connectors must be used there – in addition to possessing the ATEX certificate, they are also certified for the international market. Where the test cycle for tank containers is concerned, worldwide installation will be completed within two and a half years.” That is, though, not the end of the story. New ideas are being trialled, as Herbon reports: “We’re already testing a number of new applications, as our long-term goal is to run more sensors, such as the latest valve, fill level or heating sensors, using the VTG Connector. In collaboration with our colleagues from Wagon Hire, we’re already conducting the next pilot phase for testing new types of temperature sensors. “We’re also working intensively on optimising customer connectivity and, in this regard, are continuing to press ahead with the use of the traigo digital platform,” he adds. The traigo platform was introduced at the start of this year with the aim of bundling all of VTG’s digital applications and products for smart rail freight transport. VTG reports that traigo has been especially useful during the Covid-19 crisis, helping to provide instant visibility of restrictions on transport movements and on the availability of repair and maintenance capacity. “Particularly in the current situation, rail freight transport plays a decisive role in securing transport flows, and the repair and maintenance plants throughout Europe are an elementary component of the rail system - nothing works without them,” says Sven Wellbrock, COO Europe of VTG and also chief safety officer. “Our aim is to share the information we have with the sector. Because a situation such as the one we are currently in can only be mastered by joining forces.” www.vtg.com

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reliability of cargo arrival times and at the same time reach their sustainability targets.”

SINCE ITS INCEPTION in 2015, Nexxiot has used the services of Swisscom, its local telecommunication provider, as an essential partner in the provision of best-in-class data connectivity, making the link between its mobile sensors and the Nexxiot Connect Cloud platform. This allows Nexxiot to create and apply big data analytics tools to generate critical insights into supply chain processes. As from July, the two companies are working even more closely together in order to deliver this data-driven supply chain intelligence to Nexxiot’s customers around the world. “Swisscom is excited to move forward with

of the most advanced technologies to monitor constantly moving trains and cargo in some of the most remote places in the world,” says Friederike Hoffmann, executive vice-president and head of connected business solutions at Swisscom. “The Nexxiot team successfully scaled their business using Swisscom’s global connectivity services, demonstrating trust and commitment in Swisscom’s global IoT connectivity with its 5G-readiness and strong focus on reliability and security.” Having already captured a large part of the European market, not least in the tank container sector, Nexxiot’s CEO Stefan Kalmund is leading

FOSTERING CREATIVITY Nexxiot’s strategic partnership with Swisscom will focus on providing connectivity and supporting the company’s outreach into new markets through joint communications and a unified global IoT strategy. “Addressing topics like managing data around international borders where connectivity providers are switched over, can add significant complexity and therefore needs careful management,” Kalmund explains. “The important thing is that our customers get seamless visibility and intelligence on performance critical topics like delays and transport interruptions. This means they can rely on us and our world-class algorithms for the processed data they need to manage all their business activities and critical events in the supply chain.” Nexxiot monitors non-powered mobile assets such as rail freight wagons and tank containers, with over a billion individual messages having now been sent from Nexxiot sensors to the Nexxiot platform using Swisscom connectivity. These messages originate from over 160 individual countries via more than 450 Swisscom roaming partners. “While others are talking about ‘Big Data’, it’s been Nexxiot’s daily reality for a long time now,” Kalmund adds. “New customers have recently engaged in North America, Eastern Europe and beyond.” Nexxiot says its ability to innovate in the B2B Internet of Things (IoT) derives from the fact that Switzerland has attracted some of the best data science and computer engineering skills to its technology hubs and universities. “Creating business value may start with great ideas and a radical approach but to deliver meaningful action and favourable outcomes, a combination of

Nexxiot to deliver the benefits from IoT, one

expansion into the rest of the world. “It’s exciting that clients trust us to equip their supply chain assets with our zero-maintenance hardware,” he says. “This opens the door to creating and delivering huge value for fleet operators and cargo owners who require data to improve their transparency around mileage, to increase the

analytics, AI, and machine learning must be integrated and deployed,” the company says. “Creativity needs to be mixed with business domain knowledge and a cutting-edge approach to data science to extract the value and differentiate services from competitors.” www.nexxiot.com

SWISS ON A ROLL CONNECTIVITY • THE DIGITAL TRANSFORMATION RELIES ON EFFICIENT COMMUNICATIONS. NEXXIOT HAS DEEPENED ITS RELATIONSHIP WITH SWISSCOM TO DELIVER SOLUTIONS WORLDWIDE

 SWISSCOM’S FRIEDERIKE HOFFMANN IS EXCITED TO BE INVOLVED AS NEXXIOT AIMS FOR GLOBAL GROWTH

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PORT TO PORT TRADE • SHINING A TECHNOLOGICAL LIGHT ON THE COMPLEXITY OF MARITIME TRANSPORT WILL REVEAL THE POTENTIAL TO IMPROVE EFFICIENCIES, A NEW PROJECT AIMS TO SHOW MARITIME TRADE REPRESENTS one of the most complex supply chains of all, with myriad players both at sea and ashore. As such, it is

of Antwerp, the ePIcenter project aims to support the seamless transport of goods by using the technological and operational

ripe ground for implementing digital systems to enable all participants to keep their eyes on what is happening – and to improve efficiency at all points in the chain. While many such projects are going ahead, they are all targeted at specific applications. There is now a broader project underway, designed to turn the challenges posed by global supply chains – with their increasing length, complexity and vulnerability – into opportunities. Being coordinated by the Port

opportunities offered by the internet, synchromodal operations and new disruptive technologies, such as Hyperloop, Industry 4.0 and autonomous vehicles. The ePIcenter project – derived from ‘Enhanced Physical Internet-Compatible Earth-Friendly Freight Transportation Answer’ - is global in scope, looking to demonstrate how the new technology can improve efficiencies on transatlantic trades, the new Silk Road routes and intra-European trades. It will involve collaboration between technology innovators and environmental experts, as well as logistics specialists. “We are very enthusiastic about kicking off the ePIcenter project, which will allow us to

 ANTWERP IS ONCE AGAIN AT THE CENTRE OF DIGITALISED INNOVATION TO IMPROVE EFFICIENCY

create a transcontinental, integrated and transparent freight corridor by leveraging existing and promising technologies, frameworks and data standards,” says Erwin Verstraelen, chief digital and innovation officer at the Port of Antwerp. “Port of Antwerp and Port of Montreal, both important nodes in the global supply chain, will act as catalyst for symbiosis amongst the different stakeholders,” he adds. ALL JOIN HANDS There are some 35 partners in the project, including leading ports, forwarders, cargo owners, logistics providers, academic institutions and technology firms. One of the logistics firms involved is Den Hartogh, which states: “As world-leading provider of specialist multimodal services for bulk products, Den Hartogh is the ideal end user for this test case of ePIcenter solutions, providing grounded, real-world opinion and feedback on how to work in a global network. Our expertise in transporting dangerous goods and our partnership with MOLCT will be relevant to standards and design of synchromodal optimisation rules and our strong focus on digitalisation and supply chain visibility will contribute to realising innovative solutions for the supply chain of the future.” The Port of Antwerp will host one of the large-scale elements of the project: the ‘Link of the Future’. This will focus on implementing the various ePIcenter innovations in one of Europe’s largest multimodal transport hubs, as well as realising the first transcontinental cyber-secure trade lane. Furthermore, the Port of Antwerp says, its international network will create possibilities for valuable worldwide knowledge sharing and further improvement of the tools developed in the project. “The future of our port and its prosperity goes hand in hand with the power of innovation,” says Annick de Ridder, vice-mayor of the Port of Antwerp. “We are proud to play a pioneering role and to serve as a laboratory for innovation. Today more than ever it is important to make our global supply chain more resilient to an evolving and volatile world with a variety of challenges.” www.portofantwerp.com

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ACROSS THE FIELD Each sector at the event will have its own panel and debate programme with the participation of leading professionals in their field. In total, more than 300 first-rate speakers will participate in 120 sessions. BNEW Logistics will feature debates on the need to promote public-private alliances

BNEW Real Estate will address the needs of new urban planning, the lack of affordable housing despite the abundance of land and money, and the future of brick in 2021 in Europe. In addition, it will also address government measures and the future of the hotel sector and the restoration of the real estate sector after the current health crisis. BNEW Ecommerce will focus on generational change and its influence on consumption, the need to move towards circular, collaborative and sustainable supply chains and the hybridisation of retail and marketplaces. BNEW Digital Industry will bring together industry experts to delve into topics such as 3D manufacturing, Artificial Intelligence and robotics, and global connectivity after the Coronavirus crisis. Likewise, cybersecurity will also gain special strength in the advancement of smart manufacturing and the digital transformation of industry in the new economy, the 4.0 Industry situation in Latin America in the post-Covid-19 era, the industrial relocation after the pandemic, green industry and the impact of 4.0 industry on the UN’s Sustainable Development Goals. Finally, BNEW Economic Zones will analyse the role of economic zones in the new economy, regionalisation, flexibility of customs processes, the security challenge for the new normality and the talent to maintain and generate new jobs in economic zones. Beyond all the knowledge and debate offered by the event, an important BNEW attraction will be its advanced networking program. This tool ensures that all attendees will find a large amount of contacts and business opportunities. The technological platform will cross over all the data of the more than 10,000 attendees from all over

for the development of the sector, the growing problem of cybersecurity in an increasingly digitised and globalised world, which could paralyse world trade, and the great challenge of equality in a sector where too few women are still seen in corporate management positions.

the world who are expected to be gathered at the event, to put supply and demand in direct and concrete contact. Registrations for BDigital are now open and can be made free of charge until 31 August 31 through its website, www.bnewbarcelona.com.

NEW IN BARCELONA PREVIEW • A NEW EVENT ARRIVES IN THE MIDST OF THE PANDEMIC, OFFERING INSIGHTS INTO HOW DIGITISATION AND THE NEW ECONOMY WILL HELP THE WORLD EMERGE IN GOOD HEALTH EL CONSORCI DE la Zona Franca de Barcelona has created the Barcelona New Economy Week (BNEW), to be held from 6 to 9 October. It is a new disruptive and unique event due to its hybrid nature, since it will combine a physical element with an online one, supported by a digital platform that will enable people from all over the world to be present without having to travel to Barcelona. BNEW has been born with an objective to help revive the global economy, with several unique events on the topics of Logistics, Real Estate, Digital Industry, E-commerce and Economic Zones, all of them with one common denominator: the new economy. The event’s knowledge programme will focus on the new economy’s challenges, opportunities and threats as a consequence of the change in the ways of producing, distributing, marketing and relating with each other.

 ONLINE ATTENDEES AT BNEW ARE ASSURED FULL ACCESS TO PRESENTATIONS AND NETWORKING

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The event’s approach is based on knowledge podiums that will allow all participants to develop themselves, expand their knowledge, solve doubts, anticipate the future and get feedback on the opinions of other experts in an unprecedented, agile and innovative format. These podiums will group different formats such as the participation of inspirational speakers, debates, panels and in-depth interviews with high-profile professionals.

DIGITISATION

SOMETHING IN THE AIR AIR CARGO • CSAFE GLOBAL IS ADDING TO ITS TRACK-ANDTRACE SERVICE WITH GREATER VISIBILITY THANKS TO A CUSTOM-DESIGNED PLATFORM DEVELOPED BY CLOUDLEAF CSAFE GLOBAL, AN innovation leader in temperature-controlled container solutions for the transport of pharmaceuticals, has partnered with Cloudleaf to design a custom digital visibility platform to support both its Air Cargo track and trace technology as well as digital tracking for Parcel and Cell & Gene packaging solutions. CSafe has been developing and implementing track and trace technology into its Air Cargo fleet of RKN and RAP containers for nearly two years. As part of the initiative, the company wanted to select a software partner with a robust digital visibility platform that could be customised to its needs. A key element in the search was the ability to integrate multiple tracking devices into the system to offer full visibility to Parcel and Cell & Gene customers as well. “Our team worked for many months evaluating the right partner for our new track and trace product offering,” says Tom Weir, chief operating officer of CSafe Global. “In Cloudleaf we found a strategic partner who shares common values, has a world-class management team, a modern software architecture, a visionary product road map, and laser-like focus on the customer. The synergies between CSafe and Cloudleaf are powerful and compelling. “Together we will provide real-time visibility for life-saving products shipped everyday around the world in CSafe Air Cargo, Parcel and Cell & Gene products,” Weir adds. “This innovative solution will unleash tremendous value for our customers and most importantly ensure that patients receive the medications they need 100 per cent of the time.”

DIGITAL IS VISIBLE Cloudleaf is a leader in next-generation supply chain solutions, providing continuous visibility and intelligence from materials through to customer delivery. Based in Silicon Valley, the company specialises in providing real-time visibility into enterprise supply chain data that enables critical decision-making to ensure regulatory compliance and reduce waste. Cloudleaf solutions deliver the artificial intelligence and advanced analytics capabilities CSafe requires along with a highly customisable cloud-based platform and dedicated team of highly skilled professionals at every level of the organisation. “We are excited to partner and innovate with CSafe to offer its customers a powerful cold chain solution that combines CSafe’s state-ofthe-art thermal shipping solutions with our

Digital Visibility Platform,” says Mahesh Veerina, CEO of Cloudleaf. “Now, armed with real-time visibility into the world’s most critical medical shipments, CSafe customers and support staff have 24/7 access to monitor every shipment and intervene if necessary. With this real-time visibility, CSafe’s customers can dramatically improve their cold chain success rates while expanding their reach into new and remote geographies.” CSafe has already upgraded 20 active containers with active sensors and successfully integrated them with the Cloudleaf platform. The team has completed multiple successful pilot shipment tests to verify hardware performance and integration viability. CSafe is now partnering with select pharmaceutical customers to conduct live user acceptance testing of the new platform before ultimately launching it in the fourth quarter of this year. “These are exciting times at CSafe and we look forward to providing this new technology to our customers and continuing to innovate with Cloudleaf and others in the future to bring the cold chain into the digital world and help our customers ensure patients receive their medications in perfect condition,” says Weir. csafeglobal.com www.cloudleaf.com

 CSAFE’S CUSTOMERS IN THE PHARMA AND COLD CHAIN SECTORS NOW HAVE ACCESS TO FASTER DATA

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GULF IN CLASS MIDSTREAM • MARKET TURMOIL AND THE HEALTH CRISIS WILL NOT STOP US TERMINAL OPERATORS DEVELOPING THE INFRASTRUCTURE THAT IS NEEDED

IN THE SPACE of little more than a decade, the US oil and gas industry has been completely transformed as a result of the intensive exploitation of tight reserves – shale oil and shale gas in particular. The turnaround from the position of the country as a major oil importer to one of the most significant exporters has been dramatic, helped in no small part by a light government touch and massive investment on the part of the midstream sector – often underpinned by fund managers with a keen eye on the prospects. To start with, the immediate need was to install a country-wide network of oil and gas gathering and processing facilities, to collect

the new output and get it to where it was needed. New oil and gas hubs sprang up as the country began to be criss-crossed by new pipeline networks, helping move production out of what were often new territories for the oil and gas industry. Over the past two years, however, the focus has moved very much towards building export capacity, as domestic production is now outstripping local demand. And that focus has, by and large, returned to the oil patch’s old home on the Gulf Coast, and in particular the stretch from Corpus Christi, Texas to the Mississippi Delta in Louisiana. The high-profile developments have been in

crude oil but there have also been interesting investments in the chemical sector and in downstream petrochemical gases. OPEN UP TO CORPUS The new South Texas Gateway (STG) project in Corpus Christi, Texas is just the latest opening. Operator Buckeye Partners put the terminal into operation in mid-July this year, after the first deliveries of crude oil from the Permian basin via one of four pipelines that will serve the terminal. STG is located in Ingleside, near Buckeye’s existing terminal operations in the port, and is a joint venture between Buckeye, which owns 50 per cent, and affiliates of Phillips 66 and Marathon Petroleum, which each have a 25 per cent holding. Once fully operational in the first quarter of 2021, STG will offer 8.6m bbl (1.37m m³) of tank storage, although there is the space to expand capacity to 10m bbl. Two docks will allow loading at up to 800,000 bbl per day and are capable of handling very large crude carriers (VLCCs). “South Texas Gateway represents a significant investment in the Port of Corpus Christi and a long-term commitment to our customers,” says Khalid Muslih, executive vice-president of Buckeye GP and president of its Global Marine Terminals. The opening of STG came three months after Moda Midstream put 10m bbl (1.59m m³) of crude oil export capacity into service at the Moda Ingleside Energy Center (MIEC) in Ingleside and its nearby smaller terminal in Taft, Texas. The two facilities now offer some 12.0m bbl of combined capacity. Construction of another 3.5m bbl at MIEC has begun, which is expected in service later this year, while Moda has permits for more storage at both sites and is in discussion with its customers. Again, the expansion has been enabled by the commissioning of new pipeline connections to bring crude oil from the Permian and Eagle Ford basins. Also in Corpus Christ, EPIC Crude Holdings brought its IGC terminal into service at the end of 2019; this repurposed facility is designed to act as a crude oil export terminal

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while the company is constructing a larger greenfield terminal nearby, capable of handling Suezmax tankers. Pin Oak terminals has also commissioned a new dock at the former Gravity Midstream terminal, which it acquired in early 2019, and is planning more tankage at both this site and its nearby Taft terminal. NuStar Energy is adding 600,000 bbl of new capacity at its North Beach site as part of a long-term agreement with Trafigura. SHIPPING ON THE CHANNEL Houston does, though, remain as ever the heart of the US petroleum industry, and several tank terminal operators have been investing in new capacity to meet the demands of changing product flows, albeit some have curtailed investments in response to uncertainty both in the upstream sector, as a result of volatile oil and gas prices, and the downstream demand collapse brought about by the Covid-19 crisis. Nevertheless, although there have been some delays in construction projects due to the necessity to comply with Covid-19 restrictions, there are several that have recently or are about to come to fruition. For example, Odfjell, which earlier this year identified Houston as a

 CORPUS CHRISTI IS EMERGING AS A MAJOR EXPORT SITE, TYPIFIED BY TERMINAL CONSTRUCTION BY BUCKEYE (OPPOSITE) AND MODA MIDSTREAM (ABOVE) AT ITS INGLESIDE AND TAFT FACILITIES

major focus of ongoing investment, announced in June that three tanks are being brought back into service and that it was to make a decision shortly on a second phase of development, involving the construction of up to 35,000 m³ of new tankage for specialty chemicals, due to enter into service in 2022. It is also looking at building out the terminal into an adjacent area known as The Point, which could accommodate up to 165,000 m³ of capacity, again for specialty chemicals. Enterprise Products Partners has continued development of its hydrocarbon terminal on the Houston Ship Channel, adding refrigerated storage for propylene. A new ethylene storage tank is also under construction, due in service by the end of the year, as the company and its partner in the petrochemical gas export facility at Morgan’s Point, Navigator Holdings, look to improve throughput volumes and efficiency. Enterprise recently revealed that it had carried out two ‘co-loading’ operations at the site, one involving the simultaneous loading of propane and polymer-grade propylene on a very large gas carrier (VLGC) and the other involving ethane and ethylene loaded onto a Handysize gas carrier.

costs and allows US Gulf Coast producers to supply distant markets, such as Asia, more competitively.”

“This landmark accomplishment was made possible by our integrated midstream network, as well as the creativity and determination of our employees,” said AJ ‘Jim’ Teague, co-CEO of Enterprise’s general partner. “Loading ethylene and propylene on larger vessels from the US Gulf Coast substantially lowers freight

While some projects may not meet their original onstream date and several major operators have cut back on projected capital expenditure this year, there is plenty of work out there for engineers, designers and equipment suppliers and it looks like the good times are here to stay for a few more years yet.

FLOAT DOWNSTREAM More investment in chemical storage includes LBC’s new 100,000-m³ terminal in Freeport, dedicated to handling feedstocks and production from MEGlobal’s new monoethylene glycol plant. Vopak is also busy, currently adding 33,000 m³ of additional tankage at its Deer Park terminal in the Houston Ship Channel, and it has also started work on the nearby Vopak Moda Houston terminal, a new 50/50 joint venture with Moda Midstream. The first phase will include 46,000 m³ of gas tanks and a new jetty to handle chemical gases. It is due to enter into service in phases starting in late 2020 and running through to the second half of 2021, and has been fully committed under long-term contracts. Vopak has also been selected to design, build and operate a new industrial terminal at Corpus Christi, where Gulf Coast Growth Ventures, a joint venture between Exxon Mobil and Sabic, is building a new 1.8 mta ethane cracker. The terminal will have a capacity of 130,000 m³ and is due onstream in 2022.

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A CAREER IN STORAGE MEMOIR • KEITH JACKSON, RECENTLY RETIRED FROM HIS ROLE AS OPERATIONS DIRECTOR AT INTER TERMINALS, LOOKS BACK OVER A NEAR 34-YEAR CAREER IN THE TANK STORAGE INDUSTRY

MY INTRODUCTION TO the world of bulk liquid storage was when I was in the British Merchant Navy and sailing the world in various tankers. During my eleven years’ service my primary duties as navigator were regularly interspersed with operating the cargo systems and maintaining deck

in the early 1980s. Having spent a sleepdeprived week discharging vegetable oils in Vlaardingen before sailing a stormy North Sea in ballast to Teesside, we arrived at Simon’s Seal Sands terminal to load caustic soda. At that stage I didn’t appreciate the challenge of operating a loading terminal.

and Marketing with a day-release option, which was just as well because shortly after I spotted a vacancy for a trainee manager for Simon Storage at Seal Sands. I applied, got the job and that was the start of my career with Simon Storage, latterly Inter Terminals.

equipment, as well as managing the deck crew after becoming Chief Officer on chemical carriers. On reflection this was excellent training for what was to become my career of nearly 34 years. My first real encounter with what was then Simon Storage was from a chemical tanker

All I thought they had to do was get the product into my cargo tanks - how wrong was I! Following redundancy from the Merchant Navy aged 30, I sought to equip myself for a shore-based career. This led me to enrol on post-graduate diplomas in both Management

TOMORROW’S WORLD In my early years with Simon Storage I was introduced to the different facets of the business and in 1988 was asked to compile a paper on what the 21st century terminal would look like. I still have a copy and it’s interesting to reflect on how much

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of my ‘Tomorrow’s World’ vision actually happened. For example, I considered how regulation would become increasingly coordinated across Europe, with a growing focus on environmental and personal welfare. I concluded that the business had to evolve and develop new markets in order to survive and generate return on investment. How true this all turned out to be. At that time the discussion around the decline of European commodity chemicals had already started, along with the volatility of oil prices and the influence of OPEC – even in those days figures of $7/bbl were being mooted. Technology, IT and associated control systems were seen as rapidly emerging factors in the storage sector, as was the value of data to our business and to our customers. Unlike now, however, the concept of cyber security did not feature in the thinking of 1988. UK terminals were then operating under CIMAH regulations. COSHH had not yet arrived but the concepts of demonstration and risk assessments were clearly starting to form. Emission controls were being introduced in California and the Netherlands was actively contemplating the introduction of controls. Jumping ahead 30 years, air emission control is a serious and costly business and air quality and its impact on human health is a high priority. The change in approach over the last 30 years is quite staggering given current regulations. At that time the chemical industry on Teesside - and indeed elsewhere in the UK - was very different from today. Terminal procedures were brief and given to operators to read and then follow – their involvement in creating or criticising these was certainly not encouraged. Today, the active participation

 KEITH JACKSON HAS SEEN A LOT AND MADE A DIFFERENCE IN HIS CAREER IN THE STORAGE TERMINAL INDUSTRY, AND BELIEVES THAT GREATER DIVERSITY IN THE WORKPLACE IS THE NEXT CHALLENGE

“THE ACTIVE PARTICIPATION OF OUR PEOPLE AND THE SKILL AND KNOWLEDGE THEY HAVE IS A DEEP VEIN TO BE MINED”

of our people and the skill and knowledge they have is a deep vein to be mined. In 1988 I had pondered on how skills and competence within the industry would have to improve to meet changing demands and I believe we have embraced the need to upskill our employees such that they are equipped to deal with both technical demands and the wider challenges of process and personal safety expectations coupled with the need for ‘unease’ in their daily work life to recognise potential hazards and risks. However, one area where I feel that as a sector we have not progressed as rapidly as some is gender balance, particularly within operations, engineering and maintenance, where a female is still a rare sight. It was a good day when Inter Terminals started a programme for mechanical and EC&I apprentices. The lack of these skills in the

BUNCEFIELD AND AFTER One cannot reflect on over 30 years in this industry without mentioning Buncefield and other international disasters like Texas City, which have shaped irrevocably the way we manage and structure our businesses. On the positive side, they have engendered new relationships and cooperation with regulators and were the catalyst for implementing process safety leadership within our industry. In my view as a senior manager with over 30 years’ experience, it has never been more important for management to be engaged at all levels of the organisation to ensure risks are understood and well managed and for employees to be active rather than passive in this process. Summing up, I’m pleased to say that the management trainee scheme I joined when I took my first job at Simon Storage all those years ago continued and evolved to attract

sector was becoming, and indeed remains, an issue. In conjunction with local training agencies we have found and developed some talented young people, including a young woman, who have been mentored by an enthusiastic team into well-qualified technicians for the future.

a broad range of talented individuals into the business. Making that long-term investment has assured future generations of leaders equipped with the skills to meet the challenges of the future. I think this all helps to leave the business in safe hands for the future. www.interterminals.com

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TREAD CAREFULLY RESULTS • VOPAK HAS MANAGED TO NAVIGATE THE COVID-19 CRISIS WITHOUT ANY GREAT IMPACT ON ITS FINANCIAL AND OPERATIONAL PERFORMANCE, AND IS LAYING PLANS FOR GROWTH VOPAK HAS REPORTED a decline in its first-half financial figures, with revenues down 8 per cent compared to first-half 2019 at €589.3m and adjusted EBITDA down 5 per cent at €402.6m. Operating profit fell 6 per cent to €256.8m and net income dropped 4 per cent to €166.1m. However, adjusted for currency movements and the divestment of three terminals in Europe last year, Vopak calculates that EBITDA improved by 4 per cent, reflecting resilient business performance including the effect of contango oil markets, IMO 2020 converted capacity and reduced chemicals throughput.

Divestments resulted in a 17 per cent fall in revenues in Vopak’s Europe and Africa division, and revenues were also down by 8 per cent in the Asia and Middle East division, as a result of lower revenues from chemical terminals and out-of-service capacity in Singapore, which was partly offset by improved performance of its oil terminals as a result of the contango and IMO converted capacity. Performance in China and North Asia was flat on first half 2019, though the Americas division delivered a 7 per cent increase in revenues following the commissioning of new capacity in Mexico, Brazil and Panama.

“In the first half of 2020, we delivered good financial performance in a more volatile business environment,” says CEO Eelco Hoekstra. “We captured opportunities in our oil storage portfolio, resulting in improved occupancy rates. At the same time, we experienced reduced throughput for chemicals, in particular in Houston and Singapore. “We initiated a further response in cost management to protect earnings. Relative to our original plan, we missed some contributions due to delays in growth projects and out of service capacity as construction work was restricted in the second quarter. The value of these growth projects are not affected,” Hoekstra adds. RESPONSE TO THE VIRUS Vopak’s figures include a second quarter that covers the main period of the Covid-19 pandemic thus far. Its results actually show an improvement in profitability in the second quarter compared to the first, with net profit (including exceptional items) rising from €81.0m to €116.4m and overall capacity utilisation up from 84 per cent to 88 per cent. Referring specifically to the impact of the Covid-19 pandemic, Vopak says: “Our main focus is on the health of the people working for our company in all locations and to limit the spread of the Coronavirus, to manage the impact on our business and to assess the impact on the economy and society. Therefore, we have put global and local measures into place to protect our employees, their families and our operations based on information provided by the World Health Organisation, national and local health authorities. To date, we have observed a limited impact on our operations. All our 66 terminals are operational and there have been no significant disruptions to business continuity.” Eelco Hoekstra adds: “I am proud of all people working for Vopak and appreciate their extraordinary efforts and commitment to safely serve our customers and society by storing vital products with care during the Covid-19 pandemic. We remain focused on ensuring the health, safety and well-being of our employees and to keep our company performing well.”

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“An effective control and governance structure to respond to the impact of the global pandemic, with continued decisionmaking to support business execution and well-being of people, has been put in place,” the company explains. “Operational and financial performance, cash flows and our financial position have not been significantly affected. Our financial results reflect our resilient business performance. Timing of some growth projects execution is affected by generic local lockdown measures in various countries. “Our focus in these circumstances is on the short-term delivery and protection of longterm value. Vopak plays an important role within society by storing vital products with care. We are doing our utmost during the Covid-19 pandemic to continue to fulfil this role in all our locations around the world. “Although the pandemic brings a lot of uncertainty and the estimates remain subject to future events, we expect to continue to manage our performance in line with our original business plan and unchanged strategy.” Indeed, Vopak says it has implemented cost control measures to see it through the current crisis; it has already achieved some €295m and it is aiming for €600m by the end of the year. LOOKING AHEAD That business plan and strategy have, Hoekstra says, proven to be robust. “The delivery of our strategy has progressed well in 2020 and we continue to invest in 2020 and 2021 with confidence. Complementary to our investments in growth, service and IT capex, we continue executing our share buyback program to increase distribution to shareholders,” he says. “To meet new customer demand and support our portfolio transformation we have taken new capacity into operation in Malaysia, Panama

 EELCO HOEKSTRA, VOPAK’S CEO (ABOVE), SAYS THE FOCUS DURING THE PANDEMIC MUST BE ON SHORTTERM DELIVERY AS WELL AS THE PROTECTION OF LONG-TERM VALUE

and Vietnam and completed the divestment programme of some of our European assets. This year, we announced the construction of a new chemical gases terminal in the US [in a joint venture with Moda Midstream in Houston] and capacity expansion for an industrial terminal in China [the Caojing terminal in Shanghai], both fully rented out under long-term contracts with reputable customers. We are further upgrading our chemical terminals in the port of Rotterdam and Antwerp to continuously improve our service capabilities. “Good progress has also been made with the development of our LNG and industrial terminal portfolio. Our digital transformation is progressing well. The roll-out of our new cloud-based system for our terminals has

somewhat due to work restrictions during the Covid-19 crisis, with new capacity at Veracruz, Mexico now expected onstream early in 2021 rather than this year. The new Lesedi oil products terminal in South Africa, in which Vopak has a 70 per cent holding, is also scheduled to start operations by the end of the year, rather than mid-year, while the first phase of the Vopak Moda Houston chemical gases terminal should be ready later in 2020. Looking slightly further ahead, the Vopak Moda Houston terminal is due for completion in 2021, as is a new 290,000-m³ industrial terminal in Qinzhou, China, in which Vopak has 51 per cent interest. A 130,000-m³ industrial terminal in Corpus Christ is scheduled to be finalised in 2022. Next year

continued in an efficient virtual manner,” Hoekstra concludes. For the rest of this year, Vopak has new capacity due onstream at its sites at Jakarta and Merak in Indonesia, Rotterdam-Botlek and Vlissingen in the Netherlands, and Durban, South Africa. Completion dates have slipped

will also see the arrival of new tankage at the Deer Park chemicals terminal in Houston, Texas; at the oil products terminal in Sydney, Australia; at the Linkeroever chemicals terminal in Antwerp, Belgium; and at the Altamira chemicals terminal in Mexico. www.vopak.com

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BUBBLE BUSTER PUMPS • BLACKMER HAS FOUND A SOLUTION TO THE PROBLEM OF CAVITATION IN THE SHAPE OF A SUPPRESSION LINER, AS GEOFF VANLEEUWEN* EXPLAINS CAVITATION AND NET positive suction head (NPSH) issues are common detriments to effective pump operation that are often misunderstood. Entire plant systems can fail unexpectedly as a result of a mechanical seal or pump component failure. Plant operators may observe: “it sounds like gravel is being pumped through our pipe” or “the pipe is shaking” or even “the pump components have dissolved into nothing”. When such failures are assessed further, operators often conclude that cavitation and NPSH are ultimately to blame for the seal and pump failure. As a result, all process engineers know that pump-suction design is most critical to ensuring reliable operation of any piping system. Although NPSH sometimes seems confusing, it can be simplified when viewed as a part of a monetary budget. In the same way that a company may default if withdrawals exceed deposits, a pump may be destroyed if it withdraws more NPSH than the NPSH budget provided by the piping system. In short, a pump

should not withdraw more NPSH than what is provided by the piping system. If the pump has a surplus of NPSH, then vapour is not formed and there is no potential for cavitation. Conversely, if the system has an NPSH deficit where the pump withdraws more than what the system provides, then vapour will form and destructive cavitation will occur. THE ISSUE EXPLAINED What is cavitation? Cavitation is the implosion of vapour bubbles within the pump’s pressure stages. Cavitation occurs only if vapour exists. So where does vapour form? Vapour can form upstream of the pump, within the pump, or both. Pump operators know cavitation as noisy and destructive. When vapour implodes, the liquid walls collapse and produce shock waves of incredible force that cause destruction upon impact. Like a small jack hammer striking a surface at a rate of 10,000 times per second, cavitation shock waves damage all surfaces, no matter their hardness or thickness.

These shock waves can cause excessive vibration and noise within the pump, which can result in significant damage to internal components. This cavitation damage will set off a chain reaction of negative effects that can include loss of operational efficiency, elevated maintenance and part replacement costs, pump downtime and, in the worst-case scenario, total pump failure. Cavitation can affect the performance of all pumps. This article illustrates how a specific type of pump technology – positive displacement sliding vane – incorporates a revolutionary technology known as the Cavitation Suppression Liner, that mitigates and even eliminates the harmful effects of cavitation. WHAT IT SOUNDS LIKE Plant operators and process engineers often focus attention on the pump’s NPSH required. After all, cavitation can be avoided if a pump requires less NPSH than the system’s NPSH budget. Unfortunately, this misses the potential for vapour to be formed upstream of the pump. This is especially true when transferring fluids with high vapour pressures, such as LPG, anhydrous ammonia, gasoline, acetone, various types of refrigerants and condensates, and those that are highly viscous. The vapour pressure of these liquids is greater than any NPSH provided. In other words, these applications operate at a deficit from the start: the liquid demands more than what the system could ever provide. Even in low vapour pressure liquids like water, lube oil or diesel fuel, the physical system layout may require poor conditions such that the NPSH budget provided by the system is so low that no pump could operate within the allowance. An NPSH deficit is created in either of the above scenarios. A portion of the fluid transitions to vapour and creates a multiphase or “boiling” fluid. The vapour concentration and size increases as the level of NPSH deficit increases. However, regardless of the vapour concentration or size, the vapour will implode during a pump’s pressure stage, causing violent reactions that are the root cause of cavitation’s destruction.

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There are a number of pumping setup conditions that can result in a dangerous NPSH scenario. These conditions include: •E xcessive suction-lift requirements •L ong piping runs •F low restrictions at the inlet, such as the presence of a piping elbow •A clogged strainer •P artially closed valves that can restrict flow •U nnecessarily high flow velocities that are caused by undersized piping An operator hears destructive cavitation as elevated noise levels during system operation. Vapour-bubble implosions within the pump will make it sound as if the pump is filled with bits of gravel. If these conditions are present and allowed to persist, damage to the pump and its components is almost certain to occur. Dynamic components are especially sensitive to cavitation. Specifically, the pump’s mechanical seal faces will briefly separate as the implosions occur. The shock-wave

 EQUIPMENT DETERIORATION (OPPOSITE) RESULTING FROM CAVITATION CAN BE AVOIDED BY THE USE OF A LINER THAT ELIMINATES CHATTERING BY BREAKING VAPOUR BUBBLES DOWN

pulsations create a condition known as “chattering,” which leads to premature wear and failure of mechanical seals. Additional failure should be expected in other wetted parts, such as bushings, impellers, back covers, volutes, casings, heads, gears, idlers and vanes. While we know that cavitation can be minimised by optimal system design, system engineers should familiarise themselves with a technology that is well-suited for continuous cavitation service. Such technology would minimise or eliminate the destructive effects of cavitation and provide better performance and long pump life. HERE’S THE SOLUTION As mentioned, the key to eliminating pump cavitation and its harmful side effects is to eliminate vapour. No vapour means no cavitation. Alternatively, system engineers can set operational parameters in such a way that the NPSHa (budget) will always meet the NPSHr (consumption). However, most systems require a bulletproof solution designed for the worst conditions – a one-of-a-kind technology designed for unforgiving physical constraints and inevitable vapour formation. Blackmer has improved the operation of its sliding vane pumps with the invention

of the Cavitation Suppression Liner, which allows them to better transfer multi-phase liquids with high vapour pressures and zero NPSH. The Cavitation Suppression Liner defeats cavitation through a design that defuses or mutes destruction before vapour implodes. This unique feature creates internal recirculation jets that break apart vapour bubbles before implosion. While the vapour levels are not reduced, the size of each vapour bubble becomes a fraction of what it would have been. The fact is this: smaller bubbles yield smaller implosion reactions. The Cavitation Suppression Liner also allows a controlled amount of fluid at discharge pressure to bleed back toward the suction of the pump. This breaks the larger vapour bubbles apart into smaller bubbles before they have a chance to implode. The net result is less noise, less vibration and less wear, which Blackmer verified by conducting side-by-side tests of one of its sliding vane pump models with and without Cavitation Suppression Liners. Blackmer offers its Cavitation Suppression Liner as a component on its CRL, LGL, SGL, XL XLW and TLGF Series Sliding Vane Pumps, which are available for use in the handling of a wide variety of fluids in both stationary and transport applications. Each of these pumps is rated to operate under continuous cavitation without any negative effect on pump-component life. This unmatched technology from Blackmer allows for continuous operation in extreme environments. Unchecked cavitation will harm pumps in many ways, among them excessive wear of internal components, breakdowns, product leakage and compromised operation. Blackmer found the solution to the negative effects of cavitation through the creation of its Cavitation Suppression Liner, which can be paired with its rotary vane positive displacement pumps. The portfolio of Blackmer cavitation-duty products provides unmatched reliability in tough NPSH and high-cavitation applications. * Geoff VanLeeuwen, PE, is Director of Product Management for Blackmer® and PSG®. He can be reached at geoff.vanleeuwen@psgdover.com. More information on Blackmer’s pumps and compressors can be found at www.blackmer.com

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NEWS BULLETIN

STORAGE TERMINALS

RUBIS SWOOPS FOR TEPSA

Rubis Terminal is to buy Terminales Portuarias (TEPSA), pending approval from authorities in Spain. The deal, which Rubis describes as a “transformational acquisition”, will be the first since Rubis sold a 45 per cent interest in Rubis Terminal to I Squared Capital in April 2020. “This acquisition shows the strength of the partnership between a large industrial group and an independent, global infrastructure investment manager,” says Sadek Wahba, chairman and managing partner of I Squared. “We are growing the size of Rubis Terminal by a third, while diversifying its activity, and opening up to other very promising markets. This is just the start: we have great ambitions for our French company, Rubis Terminal, to join the world leaders in the sector in the months and years to come.” “This acquisition is only the first step in a strategy which further consolidates Rubis Terminal’s leadership position, while diversifying its activities and its footprint,” agrees Gilles Gobin, founder and managing partner of Rubis. “This first acquisition demonstrates the positive dynamism brought by our Franco-American cooperation, based on the common objective to drive long-term growth.”

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Jacques Nahmias, chairman of Pétrofrance, which owns TEPSA, says: “The sale of TEPSA represents an important milestone in the company’s history. This transaction allows TEPSA to join a group with an international presence, with common values and which will support its continued development in Spain as well as outside its natural borders.” TEPSA operates four coastal terminals in Spain, located in Barcelona, Tarragona, Valencia and Bilbao, with a total storage capacity of some 912,000 m3. Its revenues in 2019 amounted to €52m and, Rubis says, it has significant growth potential as a result of its strong position in the Spanish market and expansion plans that are already underway. www.rubis-terminal.com DIALOG EXPANDS LANGSAT

Dialog Group has announced an 85,000-m3 expansion of its Langsat terminal in Johor, Malaysia. The new clean product tankage is due to be in service late in 2021, taking total capacity at the site to more than 850,000 m3. More land is available that could be developed to expand capacity to 1m m3.

“Today, we are the second largest terminal owner-operator in the region with a current total operating capacity of 4.6m m3,” says Dialog Group executive chairman Tan Sri Dr Ngau Boon Keat. “We would like to sincerely thank all our stakeholders and partners for their unwavering support, as the continued development of Terminals Langsat and Pengerang Deepwater Terminals will attract more long-term investments, and help us achieve our aspiration of creating a regional oil, gas and petrochemical storage and trading hub in the south of Johor.” www.dialogasia.com WIBAX PLANS BALTIC BUY

Wibax Logistics has signed an agreement to acquire Baltic Tank, one of Finland’s leading companies in the storage and handling of chemicals and biofuels. The transaction is part of Wibax’s vision to build a leading chemical supplier and logistics group and to strengthen its position to offer services along the full value chain in the Nordic region. “The acquisition of Baltic Tank (above) is a strategic investment in Wibax’s future growth outside Sweden’s borders,” says Jonas Wiklund,

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group CEO at Wibax. “Baltic Tank’s extensive network of terminals along the Finnish and Baltic coasts will contribute to an expansion that will increase the geographical reach of Wibax’s service offering for our current and future customers. Baltic Tank, just like Wibax, is a family owned business with strong values that is in line with our own and we are now looking forward to welcoming them into the Wibax family.” “Together with Wibax, Baltic Tank will be able to further support its customers by offering a wider range of services throughout the Nordic region,” says Tero Väyrynen, CEO of Baltic Tank. Antti Laaksonen, representative of the controlling owners of Baltic Tank, adds: “We feel very confident turning over the business to another family owned business whose values so closely match our own.” wibax.com TRISTAR EXPANDS IN JAFZA

Tristar has begun construction of 10 new storage tanks at its chemical terminal in Jebel Ali Free Zone, Dubai, which it acquired from Shell last

year. The new tankage will increase capacity at the site from 5,500 m3 to 25,000 m3. “When we acquired the facility, we invested in the UAE’s vision and its position as a significant logistics hub,” says Eugene Mayne, Group CEO of Tristar. “The upgraded facility will be a turnkey and fully integrated distribution centre that has the ability to handle bulk imports and packed chemical products at high volumes.” www.tristar-group.co STRONG DEMAND FOR INTER’S TANKS

Inter Pipeline reports that its European bulk liquids storage business, Inter Terminals, generated “strong” financial results for the second quarter of 2020, with overall storage utilisation up at 98 per cent, compared to 83 per cent a year earlier. Funds from operations rose from C$26.9m to C$34.2m, with the Danish terminals continuing to experience demand for refined products storage. Demand is expected to remain strong through the rest of the year.

Inter Pipeline’s projected divestment of Inter Terminals remains on hold pending normalisation of business conditions. www.interpipeline.com TSA FOCUSES ON SAFETY IN STORAGE

The UK Tank Storage Association (TSA) has formally launched a new Safety Leadership Charter, reaffirming its commitment to the original principles of Process Safety Leadership. The Charter, available at www.tankstorage.org. uk/assets/tsa-safety-leadership_charter.pdf, has seven pledges that demonstrate commitment to managing major hazard risks by promoting an engaged, positive, informed and cooperative safety culture. “TSA is committed to ensuring that safety lessons and best practice are shared across the sector wherever possible,” says Peter Davidson, TSA’s executive director. “Our dedicated Safety, Health and Environment (SHE) committee is key to achieving this, and we remain a driving force in a number of industry safety forums, including the Process Safety Forum and the COMAH Strategic Forum.” Martyn Lyons, CEO of Inter Terminals, adds: “High standards of leadership are essential to ensure effective control of major hazard risks. The Safety Leadership Charter, developed by TSA in conjunction with sector’s leaders, is a testament to our strong commitment to strive for the highest standards and continue leading from the front.” Meanwhile, TSA has gained a new member in the shape of Stanlow Terminals. The company, formed earlier this year, owns two bulk liquids terminal facilities in the north-west of England, largely supporting the Essar Oil refinery. However, it sees itself as part of the independent tank storage sector and, as CEO Patrick Walters says, “TSA is an important organisation for companies engaged in the storage of bulk liquids and the provision of products and services to the sector. It provides an excellent platform to collaborate across the sector in the UK and abroad. The team at Stanlow Terminals looks forward to playing an active membership role.” www.tankstorage.org.uk

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STRONG AND STABLE FINANCIALS • STOLT-NIELSEN HAD A GOOD SECOND QUARTER, ILLUSTRATING THAT UNCERTAINTY AND VOLATILITY ARE NOT ALWAYS BAD FOR LOGISTICS OPERATORS

The financial markets are clearly comfortable with this approach: a NKr 1.25bn ($130m) unsecured bond issue in mid-June was significantly oversubscribed.

STOLT-NIELSEN LTD IS always the first to release its quarterly results, so the publication of its second quarter figures, which cover the three months to end May, offered the first opportunity to assess the impact of the Covid-19 crisis on operations and profitability. And, on the surface at least, it would appear that, if anything, Stolt-Nielsen has benefitted from the changing conditions. The sole exception is the Stolt Sea Farm business, which has suffered from the closure of its restaurant and catering customers. Group revenues for the quarter came in at $503.5m, ahead of the $497.1m reported

our businesses, excluding Stolt Sea Farm, has so far been relatively modest. That said, we are seeing indications that the third quarter will be more challenging.” Given the uncertainty resulting from the pandemic, the company has taken “extensive actions” to reduce costs and improve liquidity. “We have thus far improved our cash position by $83m through cancellations or delays of capital expenditures, as well as reductions in operating and administrative and general expenses,” Niels G Stolt-Nielsen says. “In addition, the Board of Directors temporarily cut board fees by 50 per cent, and our senior

TALKING TANKERS Stolt-Nielsen’s largest division in revenue terms is its tanker shipping operation, Stolt Tankers. Revenues here rose from $280.7m in the first quarter to $293.9m, driven in no small part by an increase in chemical exports from the US Gulf to China and India following the reopening of markets in the region. Cargo volumes in deepsea operations increased by 8.8 per cent over the quarter, with an increase in both operating days and capacity utilisation, although this had little impact on spot rates. Revenue growth was held back by a swing in bunker surcharge revenue as bunker prices dropped sharply compared to the first quarter. Stolt’s regional fleets enjoyed higher fleet revenue but this was offset by the drop in bunker surcharges

for the prior period but slightly down on the year-earlier figure of $518.0m. Operating profit of $49.4m was, though, well ahead of the first quarter’s $17.6m and also up on the prior year’s $43.3m. Niels G Stolt-Nielsen, CEO, says: “The net financial impact of the Covid-19 pandemic on

management team took a voluntary salary cut of 20 per cent, both effective April 1. We are also diligently working to protect our revenue base, which includes working closely with customers to create solutions to help them adapt in this constantly changing environment.”

and lower demurrage revenue. The fall in bunker prices did, though, improve profitability, with operating profit rising from $4.7m in the first quarter to $20.0m. “At Stolt Tankers, overall volume improved in the second quarter, driven mainly by strength in deepsea shipments, reflecting less MR tonnage

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operating in the chemical trade,” notes Niels G Stolt-Nielsen. However, he adds: “While we enjoyed a stronger chemical tanker market in the second quarter, we expect the third quarter to be more challenging due to the combination of a weaker MR market and a slowing economy. To counter the impact of a possible slowdown, we have taken steps to protect our revenue base by increasing our contract coverage at improved rates.” INTERMODAL ACTIVITY There are also glimmers of concern at Stolt Tank Containers (STC), despite an increase in revenues in the latest period, rising from $129.4m in the first quarter to $135.2m. Transport revenue was largely unchanged but there was higher demurrage revenue and ancillary charges, resulting from growing use of tank containers for temporary storage at a time of weak end-user demand for some chemical products. The number of shipments was steady compared to the first quarter, though utilisation improved by 1.7 per cent.

 STOLT-NIELSEN HAS ENJOYED FIRM DEMAND FOR ITS TANKER SHIPS AND TANK CONTAINERS BUT IS WARY OF THE THIRD QUARTER

Second quarter operating profit almost doubled to $13.0m compared to the first quarter, following a surge in empty tank repositioning costs after the abrupt shutdown of business in China early in the year. Ocean freight costs also fell as a result of lower bunker prices. In addition, the company says, actions by STC to reduce operating costs and administrative and general expenses had a positive impact across the business. Niels G Stolt-Nielsen comments that operating income for the quarter overall was “on target”, although, after a record number of shipments in March and continued strength in April, shipments slowed in May. “We are seeing signs of a slowdown in certain regions, which we suspect may be a result of consumption declining, but also the beginning of a seasonal summer slowdown,” he says. TERMINAL ZONE At Stolthaven Terminals, Stolt-Nielsen’s bulk liquids storage unit, tank capacity utilisation rose from 90.5 per cent in the first quarter to 95.2 per cent, mainly on the back of increased activity in Australia and Singapore. Revenues declined slightly, from $61.7m in the first quarter to $59.7m, partly due to adverse currency exchange movements and partly to lower utility revenue in the US as a result of

warm weather. Average marketable capacity remained steady at 1.74m m³. Second-quarter operating profit rose from $18.9m in the previous period to $19.2m, which included a $1.3m accrual related to an incident at the Moerdijk terminal. Equity income from joint ventures improved by $0.5m, driven by reduced expenses at the Ulsan terminal and higher utilisation at the Lingang terminal following the reopening of markets in China. “Results at Stolthaven Terminals were stable,” observes Niels G Stolt-Nielsen. “Demand for chemicals used in packaging and healthcare has remained strong, offset by weak demand for products bound for the automotive and construction sectors. We continue to see healthy demand in most regions and expect continued improved performance from our terminals.” Stability is a regular feature in the bulk liquids storage business, acting as it does as a fulcrum around which the rest of the supply chain circulates. But the early indications of weakening demand in Stolt-Nielsen’s other operations do raise some concerns. It will be interesting to see how things develop and the company’s third-quarter figures will be eagerly awaited. www.stolt-nielsen.com

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STEAM CLEAN PROPULSION • THE GLOBAL SHIPPING INDUSTRY IS SEARCHING FOR THE BEST WAY TO MEET FUTURE ENVIRONMENTAL LEGISLATION, WITH SEVERAL OPTIONS BEING EXPLORED

A YEAR AGO the global maritime industry was in a panic, desperately trying to figure out how it was going to meet the new restrictions on sulphur oxide emissions from its ships being imposed by the International Maritime Organisation (IMO) and due to come into effect on 1 January 2020. Despite the ‘IMO 2020’ rule being flagged up some years beforehand, it seemed that many in the industry did not believe that the deadline would be met and were slow to figure out how they were going to meet it. In the end, it came down to three options for ship operators: burn low-sulphur fuel oil, which was expected to be in short supply and more expensive than standard intermediate fuel oil; install exhaust scrubbers to meet the emissions limits, with the attendant cost of installation and having to take vessels out of operation; or to switch to alternative fuels.

LNG has been the focus of much of the attention on alternative fuels, despite the technical issues concerning its use in engines and the need to retrofit the specific fuel tanks needed to handle a cryogenic liquid. The comparative lack of a bunkering network is also being gradually addressed, particularly in regions of the world where environmental considerations are high on the agenda (particularly in Scandinavia) or for regular, shortsea operations where a scheduled bunkering operation is easy to arrange. Some cruise operators, keen to promote their ‘green’ credentials, have also taken to LNG. LNG has long been used in LNG carriers as a supplementary fuel – the methane that boils off the cargo can be diverted to the main engine – and LPG tanker operators have also been looking to take a similar approach, with BW LPG in particular investing heavily in

retrofitting some of its very large gas carriers (VLGCs) to be able to burn LPG in their engines. However, the IMO 2020 rule is only a step on the road to decarbonisation in the maritime industry as IMO seeks to implement the UN’s global sustainability goals. And it is becoming apparent that all carbon-based fuels, including LNG and LPG, are only a temporary stage on that road. LET’S WORK TOGETHER The maritime industry as a whole has seen how IMO 2020 worked and is looking to be better prepared when the ‘IMO 2030’ and ‘IMO 2050’ restrictions arrive. These will focus on reducing the carbon intensity of marine fuels, with the ultimate aim of achieving a carbonneutral position. The industry has already taken steps to address decarbonisation, as a recent report from Shell and Deloitte reveals. The report, Decarbonising Shipping: All Hands on Deck, sets out the views of senior shipping executives from across the sector and presents a roadmap of solutions. “We know that shipping is one of the harder sectors to decarbonise, which is why we are working with our customers and the wider industry to identify possible solutions,’’ says Huibert Vigeveno, downstream director of Shell. “In conducting this unique study involving detailed interviews with more than 80 of shipping’s top executives, we have been able to better understand the views of our customers and the broader shipping sector,” adds Grahaeme Henderson, vice-president of Shell Shipping & Maritime. “The research identified the barriers the industry faces, solutions that will drive progress, and how we can work to help accelerate change. We want to catalyse progress towards a net-zero emissions shipping industry and working together will be crucial to implementing these solutions.” The report certainly identifies a pressing need for cross-industry collaboration and a commitment on the part of charterers (such as Shell itself) that will involve long-term charters of ‘green’ vessels. It urges company partnering to develop zero- or low-emission fuel solutions through joint R&D efforts,

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leaning on the experience of onshore sectors, and accelerated implementation of operational measures, including fuel and lubricant quality, digitisation, and the use of data and smart navigation strategies. A number of current projects illustrate how that collaborative approach is being used to make progress towards cleaning up the environmental impact of maritime activities. FORK IN THE ROAD There are two routes to reach the decarboniation target: either to use noncarbon fuels, which indicates hydrogen, ammonia or directly supplied electricity from renewable sources; or the use of carbonbased fuels from renewable sources. Biofuels clearly offer an easier route: they can be burned in the same engines and use the same supply chain to reach consumers as do current, traditional fuels. But they will also have to meet the existing IMO 2020 restrictions on sulphur emissions, so the two leading contenders in this sector are bio-methane in the form of liquefied biogas (LBG) and methanol. Again, methanol has an advantage in that it is widely available and has historically been used as a fuel in dedicated methanol tankers. Methanol itself is a tricky cargo to carry, as it is easily contaminated, not least by water and salt (both very common during sea transport); it is also toxic to humans, as an endless history of poisonings of those assuming it has similar properties to ethanol testifies. But it is a simple molecule and easy to manufacture. Its carbon footprint can also be reduced through the application of sustainable processing. The Methanol Institute (MI) has been promoting and supporting the wider use of methanol as a marine fuel for some years now; a report published in 2015 noted the potential for methanol to be produced

 JUST LIKE IN THE PRIVATE CAR SECTOR, BOTH FULLY ELECTRIC (OPPOSITE) AND HYBRID SOLUTIONS ARE BEING PROPOSED AS A WAY TO REMOVE CARBON FROM THE MARITIME FUELS CHAIN

from recovered carbon dioxide as well as its increasing use as a fuel for heavy trucks. More recently, and partly in anticipation of wider use of methanol in the marine sector, MI has published an updated version of its technical bulletin on the safe handling and berthing of methanol-powered ships, along with an accompanying video. It has also joined in on a study being led by the China Waterborne Transportation Research Institute, part of the Ministry of Transport, on the technical and operations issues involved. The study is supported by Methanex, the world’s largest methanol producer, and Shanghai Huayi Energy Chemical. METHANOL FOR EUROPE This past June, a consortium of European maritime and technology companies launched the Fastwater project, which aims to demonstrate the feasibility of methanol as a fuel for ships – both on newbuildings and as a retrofit to existing vessels – as a way to achieving a carbon-neutral shipping sector. The project, which has financial support from the European Commission, aims to commercialise medium and high-speed methanol-fuelled engines for shipping. Consortium members, including original engine manufacturers, shipyards, naval architects, ship owners/ operators, port and maritime authorities, classification societies, fuel producers and research institutes, will demonstrate feasibility

on three vessels running on methanol fuel: a harbour tug, a pilot boat, and a coast guard vessel. In addition, Fastwater promises to provide training programmes for vessel crew and portside staff, develop rules and regulations for methanol marine fuel use, demonstrate the complete value chain for bunkering methanol – including net carbon-neutral renewable methanol – elaborate a business plan, and identify CO² and conventional pollutant reductions facilitated by the next generation methanol propulsion systems. “The Fastwater consortium members bring a strong track record with methanol projects to this effort, which will address current bottlenecks that are hindering the use of methanol as a fuel for waterborne transport,” says project manager Prof Sebastian Verhelst of Lund University and Gent University. “Fastwater will put more methanol-fuelled vessels on the water and showcase retrofit technologies that will serve as lighthouse projects supporting wider commercial introduction.” A BIT OF BOTH The LBG route to clean marine power is being examined by Denmark-based tanker operator Terntank, which has recently ordered two 15,000-dwt product/chemical tankers from China Merchants Jinling Shipyard (formerly AVIC Dingheng). The new ships are designed primarily to transport biofuels and will be

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able to run either on liquefied biogas (LBG) or ‘conventional’ LNG, or on hybrid electric power. They will also be equipped with shore power connections in order to eliminate emissions generated by auxiliary motors while the ships are in port. The design concept is the result of a collaboration between Terntank, the shipyard, designer Kongsberg and the Port of Gothenburg. Terntank had already built four dual-fuel tankers at the yard and, as senior adviser Tryggve Möller explains, it saw “a will and a potential” in the yard and “our customers, crew and the owners” have been very satisfied with those ships. “Our goal of reducing carbon dioxide emissions by 40 per cent through reduced fuel consumption and LNG operation was achieved through the first series,” Möller continues. “Now we continue our journey towards fossil-free operations with hybrid technology and over time also by biofuels.” The idea of providing a connection to draw power from ashore while in port seems simple enough but, Möller says, there were technical challenges, not least since the connection is in a potentially explosive atmosphere. It was here that the collaboration with the Port of Gothenburg came in: the ships will work

can be charged at the quay and can drive both the main engine and the bow thruster. In addition, energy consumption will be optimised at all times through the use of new digital solutions. Steel-cutting for the two new ships took place in late June, with delivery scheduled for November 2021 and February 2022. Terntank already has one tanker under charter to Preem that runs on an LBG/LNG blend. Making LBG more widely available will be a key element in its wider use in the marine sector. Netherlands-based Titan LNG, which already supplies LNG to the marine and industrial sectors, announced in July that it had received EU support for its Bio2Bunker project, which aims to make BLG available in the ports of Rotterdam, Zeebrugge and Lübeck. Titan LNG is also looking at synthetic liquefied gas (SLG), produced from green hydrogen and captured CO². “Our customers in the shipping sector are facing a choice for the future: run on marine gasoil, heavy fuel oil with scrubbers, or go for (bio)LNG, the only proven alternative fuel that is scalable right now,” Titan says. ALL-ELECTRIC ALTERNATIVE

powered by large-capacity lithium ion batteries, as early as March 2022. The project addresses some particular local issues, as the Consortium explains: “Coastal shipping in Japan faces structural issues such as a shortage of mariners due to the ageing of the seagoing workforce, not to mention the ageing of the vessels. In addition, the ocean shipping industry has urged the coastal shipping industry to reduce emissions of greenhouse gases (GHGs) as one of Japan’s measures to address climate change. “The seven e5 Consortium corporate members are focusing their attention on fulfilling the potential of electric vessels to solve these urgent issues. The consortium aims to establish a platform that offers innovative ocean shipping infrastructure services based on electric vessels bringing to bear the strength, technological knowhow, networks, and other advantages of each member company.” The e5 Consortium involves Asahi Tankers, which itself has committed to building two electric-powered tankers, Idemitsu Kosan, Mitsui OSK Lines (MOL), Mitsubishi Corporation, Tokyo Electric Power (Tepco), Tokio Marine & Nichido Fire Insurance and

in the Baltic and North Seas and Gothenburg will be an important port in their operation. “We hope and believe that Port of Gothenburg will make an investment decision later this fall and plug green electricity at the quays in Skarvikshamnen,” Möller adds. The ships are equipped with a battery pack that

In Japan, seven companies have recently established the ‘e5 Consortium’, with the aim of establishing a new ocean shipping infrastructure and developing, realising and commercialising zero-emission electric vessels. It currently plans to launch the world’s first zero-emission electric tanker,

Exeno Yamamizu Corp, which is running the e5 project office. terntank.com titan-lng.com www.asahi-tanker.com www.methanol.org www.shell.com/DecarbonisingShipping

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QUIET RIVERS INLAND • THE CURRENT HEALTH CRISIS HAS HAD A SIGNIFICANT IMPACT ON DEMAND FOR FUELS AND CHEMICALS, WITH A RESULTING FALL IN DEMAND FOR TANK BARGE SERVICES KIRBY CORPORATION, THE largest domestic tank barge operator in the US, has reported a sharp decline in revenues and profits for the second quarter, reflecting lower production from the nation’s oil refineries and petrochemical plants in light of reduced end-user demand during the current Covid-19 pandemic. Quarterly revenues of $541.2m were 30 per cent down on the figure for second quarter 2019, with net earnings down 47 per cent at $25.0m. The biggest falls were recorded in Kirby’s Distribution & Services segment, with its exposure to the oil and gas market; in Marine Transportation, on the other hand,

revenues were only 5.7 per cent off, with the operating margin actually higher than in the previous year. In the inland market, average barge utilisation was in the mid-80 per cent range in the second quarter 2020, compared to the mid-90 per cent range a year earlier, as a result of reduced demand for refined products and petrochemicals. This lower utilisation translated into lower spot rates, though term contract pricing held stable, Kirby says. This fall in revenues was partially offset by the impact of the acquisition of the Savage Inland Marine fleet, which was completed on 1 April. In the coastal market, lower demand for refined products and black oils cut barge utilisation from the mid-80 per cent range a year ago to the mid-70 per cent range. Spot market activity declined but both spot and term rates remained stable. Revenues in this segment were down 17 per cent year-on-year as a result of this fall in demand, along with the retirement of two large-capacity vessels and planned shipyard activity.

DEMAND SLUMP David Grzebinski, president/CEO of Kirby Corp, comments: “The dramatic economic slowdown associated with the Covid-19 pandemic in the second quarter was felt across our marine transportation and distribution and services businesses. We responded by aggressively lowering costs across the company and were able to generate solid earnings and strong cash flow. Although the demand impacts have continued into the third quarter, activity appears to have bottomed and is starting to slowly improve. “In marine transportation, with demand for many liquid products down significantly during the quarter, refiners scaled back their utilisation levels into the high 60 per cent range before it gradually improved into the mid-70 per cent range, and chemical plant utilisation fell to near 70 per cent,” Grzebinski continues. “To offset the impact of these activity declines, we aggressively implemented additional cost reductions across the business, significantly reducing horsepower, operating costs, and general and administrative expenses. Despite a 6 per cent sequential reduction in segment revenue, our cost reduction efforts contributed to a sequential improvement in segment operating margins from 12.6 per cent to 13.5 per cent.” In inland marine, although refinery and petrochemical plant utilisation rates have started to improve, Kirby expects a slow recovery going forward until economic activity rebounds more significantly. In the coastal market, with 85 per cent of revenues under term contracts, much of its business is expected to be stable through the end of the year. “Given the risk of future spikes in virus cases and governments issuing new restrictions, the timing and magnitude of a material recovery remains unclear,” Grzebinski says. “Until we see a significant improvement in demand, we will continue to aggressively manage our costs, restrain capital spending, and focus on cash generation.” www.kirbycorp.com

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RAISE THE BAR TRAINING • BERNHARD SCHULTE HAS ADDRESSED THE GROWTH OF THE LNG SHIPPING INDUSTRY BY INVESTING IN A NEW TRAINING FACILITY FOR ITS OWN CREWS AND THIRD PARTIES BERNHARD SCHULTE SHIPMANAGEMENT (BSM) has opened a new liquid cargo training facility at its Maritime Training Centre (MTC) in Cyprus. The new unit is aimed specifically at LNG operations, both for LNG carriers and for the new breed of LNG-fuelled vessels. Combined with a structured career progression model, BSM says the facility will ensure that its crews are highly training and competent to support its growing LNG shipping operations around the world. “The new immersive environment is part of a wider boost to LNG training across the

demand and more LNG vessels entering the market,” BSM states. Demand has increased enormously in recent years with a growing number of vessels being converted to LNG and significant orders for new LNG vessels placed with shipyards in Asia following the implementation of the IMO sulphur cap in January 2020. The Cyprus centre has been equipped with a new Liquid Cargo Simulator (LCS), designed in-house by BSM’s technical team. It uses GTT Training software to provide realistic training on a wide range of vessel

whole company, reflecting increasing industry

types, cargo containment systems and propulsion systems.

 MANY SHIP MANAGERS ARE LOOKING FOR EFFECTIVE LNG TRAINING FOR THEIR CREWS

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RANGE OF COURSES BSM has rolled out the GTT Training software to its MTCs in Mumbai, Manila and Poland, where crews will be able to complete the

training in a classroom environment with the simulator displayed on screens. However, the MTC in Cyprus is the very first to have a dedicated designed simulator room, which offers a far more realistic and immersive experience, complementing the existing training offered. It makes the centre - which will be open to seafarers from other companies and organisations - a valuable gas training hub for the whole region and will benefit new LNG seafarers, many of whom are expected to come from eastern Europe. “Bernhard Schulte Shipmanagement has over 45 years of experience in the management of gas carriers, and currently manages more than 100 gas carriers, all staffed by our highly trained specialised gas fleet teams,” notes Andrew Hall, general manager HR marine at BSM. “We are committed to our seafarer training at all levels. The new Liquid Cargo Simulator will ensure that the technical and operational expertise, the understanding of key processes and knowledge of management best practice, of our seafarers working onboard gas carriers and LNG-fuelled ships is both industry leading and comprehensive. “By only satisfying the minimum industry requirements we do not necessarily produce the best LNG crews, so we have added tailored development programmes to our range to ensure that we provide the best possible opportunities and to ensure we have highly competent seafarers onboard our LNG vessels.” The Cyprus MTC offers a number of courses to meet the requirements of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), including advanced and basic liquefied gas tanker operations, and advanced and basic training for service on ships subject to the IGF Code (for ships fuelled by gas or other low-flash fuels). It also offers LNG tanker operations management training according to the recommendations of the Society of International Gas Tanker and Terminal Operators (SIGGTO), alongside a range of in-house and client-specific training. www.bs-shipmanagement.com

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NEWS BULLETIN

TANKER SHIPPING

DORIAN ON THE UP

Dorian LPG has reported revenues of $73.2m for its first fiscal quarter to end June 2020, up from $61.2m a year ago, with average timecharter equivalent rates for its very large gas carriers (VLGCs) up by 39 per cent at $41,249/day. Adjusted net income came in at $12.7m, slightly up on last year’s $12.1m. “I am grateful to our seagoing and shore staff for their contribution in achieving a good financial result for this quarter during which the company faced challenges particularly relating to crew movements and the drop of the Baltic [Index] from [$50/tonne] at the beginning of April to [$30/tonne] at the end of June,” says John C Hadjipateras, chairman, president and CEO. “The market has since recovered to over 60 and I believe the company is strongly positioned as global conditions begin to normalise.” Dorian LPG reports that global seaborne LPG liftings during the April-June period amounted to 26.8m tonnes, down 2.7 per cent

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on the year-earlier figure, though liftings for the first six months were slightly ahead. US exports were 5.2 per cent higher in the second quarter, while Middle East exports dropped by 8.1 per cent on the back of oil production cuts. “A return to more favourable commodity price relationships, the ongoing increase in secular demand for LPG as a more environmentally friendly alternative to other forms of energy and forecasted high levels of US exports as evidenced by export capacity and pipeline investments are expected to provide long-term support for VLGC demand,” Dorian LPG says. www.dorianlpg.com SHORT-TERM BOOST FOR EPIC

Epic Gas, a leading player in the fully pressurised LPG tanker sector, has reported second quarter revenues of $45.9m, up 13 per cent year on year, with EBITDA jumping 73 per cent to $16.6m and net income swinging from a loss of $1.6m to a profit of $4.5m. The results reflect a larger

fleet and also reduced operating costs, due in no small part to the inability to perform crew transfers during Covid-19 lockdown conditions. Those benefits are likely to be short-lived, though. Epic Gas expects growth in seaborne LPG trade for the year as a whole to be around 0.8 per cent, well down on earlier expectations of a 5.0 per cent growth and also below the projected 1.5 per cent growth in the pressurised fleet. “Operational challenges caused by Covid-19 are escalating and include an inability to fully deploy and repatriate crew, delays to spares and dry docking, and quarantine issues in some ports,” says CEO Charles Maltby. “Despite our strenuous efforts, we expect these challenges to remain with us for the rest of the year, and to lead to increasing [operating] costs. We fully endorse the work of international organisations and industry bodies to unlock the global log jam on safe crew transfers and are grateful to our seafarers for their forbearance.

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“We observe the increasing industrial activity in some economies, and our core customers in the residential LPG markets are in the most resilient sector of the LPG market,” Maltby continues. “However, this is likely not sufficient to continue the positive market momentum, especially for the smaller vessels. We remain opportunistically focused on the fine tuning of our asset base and costs, with our fleet being supplemented by the addition of a modern 7,500 m3 vessel later this year.” www.epic-gas.com MISC, SATELLITE PAIR UP IN ETHANE

Zhejiang Satellite Petrochemical has secured a sale and charter-back agreement with MISC for the six 98,000-m3 very large ethane carriers (VLECs) it has on order at Hyundai Heavy Industries and Samsung Heavy Industries. MISC says it will pay some $726m for the vessels, which will be timechartered to Satellite Petrochemical for 15 years through MISC’s Singapore-based subsidiary Portovenere & Lerici. Delivery of the new ships is due to start in the fourth quarter of this year. Zhejiang Satellite Petrochemical, the largest acrylic acid producer in China, is reported to be looking to double its newbuilding order. Indeed, when the original contracts were placed, it said that this was the first phase of a project that foresaw the use of Chinese yards to build further vessels. Local sources suggest these too will be passed on to an operator and chartered back. The new ships, the largest ethane carriers yet built, will be used to carry ethane from the US to Satellite’s new ethylene cracker in Lianyungang, due to open later this year. Brokers report that the first of the six has been launched and named Chang Xiu. www.satlpec.com www.misc.com.my

“We now have a clear and durable structure, where each of the two businesses can use their strong market presence to compete efficiently and grow in their respective segments,” says Tommy Thomsen, chairman of J Lauritzen. Having seen the deal through, current group CEO Mads P Zacho will leave the company. “As owners of both Lauritzen Kosan and Lauritzen Bulkers we are pleased to see these plans fall into place and we give thanks to Mads Peter Zacho for leading this strategy to completion,” Thomsen adds. www.j-l.com ARDMORE KNOCKS BACK HAFNIA

Ardmore Shipping has declined an unsolicited acquisition proposal from Hafnia Ltd, saying that the all-stock offer “was highly opportunistic, substantially undervalued Ardmore and its future prospects, and did not constitute a basis for engaging in discussions with Hafnia”. In response, Hafnia described itself “disappointed” by Ardmore’s response and said it continued to believe that combining the two product/chemical tanker fleets would be in the best interests of Ardmore shareholders. “We believe that large and well-capitalised shipping companies can be more cost-competitive in operations and financing, better equipped to make the necessary environmental investments to meet new regulations, and better able to provide public shareholders with scale and liquidity,” it stated.

Hafnia says it remains open to further discussion. ardmoreshipping.com hafniabw.com ODFJELL’S FLEET RENEWAL

The last phase of Odfjell’s current fleet renewal programme has begun, with the recent launch of Bow Explorer, the first of two 38,000-dwt stainless steel chemical tankers building at Hudong Zhonghua. The new ships are smaller than the previous 49,000-dwt vessels built at the yard but have more tanks; their 40 cargo tanks in Duplex 2205 will add flexibility in deployment and offer customers more options. Odfjell notes that delivery dates at Hudong have slipped somewhat as a result of the Covid-19 crisis and its impact on working schedules but that construction has started and delays will only be minor. Odfjell has also taken delivery of the 36,000-dwt chemical tanker Bow Persistent from Fukuoka shipyard in Japan, under bareboat charter from Taihei. Like its sistership Bow Prosper, the new tanker is designed specifically for the carriage of propylene oxide and has thermal oil heating capacity. This completes the current newbuilding programme at Fukuoka. Further ahead, Odfjell has two 25,700-dwt stainless steel chemical tankers booked at Asakawa for 2022 delivery. www.odfjell.com

KOSAN ALONE

J Lauritzen has completed the separation of its two businesses into independent companies, Lauritzen Kosan A/S, which operates LPG tankers, and Lauritzen Bulkers A/S. Long-term financing has been arranged for both. Thomas Wøidemann has been appointed CEO of Lauritzen Kosan and will report to a newly constituted board.

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TRAINING FOR REALITY

IT SEEMS SENSIBLE to assume that all training should aim to ensure that students are properly equipped with the knowledge and skills

not always deliver the desired outcomes. Time after time, accidents and incidents are put down to poor training or a lack of training

to be discharging other responsibilities in accordance with the requirements. So the idea of ‘competency-based training and assessment’ (CBTA) is really nothing new: all it does is to offer a framework and format to ensure that training, effectively delivered, provides those desired outcomes and that the student, at the end of the training process, is indeed properly equipped to carry out the tasks for which he or she is responsible. Nonetheless, when the International Civil Aviation Organisation (ICAO) announced a few years ago that it was planning to introduce CBTA concepts to cover the air transport

they need to carry out their responsibilities. That is the case whatever the trainee is doing, whether it is refilling the coffee machine at Starbucks or packaging dangerous goods for shipment. There has, though, long been a feeling that training in the dangerous goods arena does

altogether. There is a suspicion that some operators in the supply chain see training as an unwelcome cost or simply a box-ticking exercise. We also know that enforcement officials, when inspecting facilities, often ask first for training records. If those are complete and up to date, the facility in question is likely

of dangerous goods – expanding on existing CBTA approaches in other areas of air transport – it aroused consternation in many quarters. Operators along the chain feared added costs and existing training providers were alert to the fact that they would need to re-tool their training programmes.

CBTA • COMPETENCY-BASED TRAINING AND ASSESSMENT IS COMING FAST. IATA HAS SOME GUIDANCE AND SERVICES TO OFFER TO HELP THE AIR TRANSPORT INDUSTRY MEET THE DEADLINE

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HERE IT COMES While introduction of CBTA in the dangerous goods chain has been delayed, the time is now nearly upon us. The International Air Transport Association (IATA) will introduce new CBTA training requirements in the 62nd edition of its Dangerous Goods Regulations (DGR), which takes effect on 1 January 2021. On that date, therefore, not only will training providers need to have their courses updated to the latest amendments that also take effect, but they will also need to have their programmes in line with CBTA requirements. IATA says it recognises the challenges faced by many organisations in transforming traditional instructional programmes to meet the CBTA approach and is ready with a number of tools to help. In particular, the DGR has long included a table showing the various training topics applicable to the various roles in booking, checking, handling and transporting dangerous goods by air; this has been moved from Section 1.5 to Appendix H and is much enlarged, providing more guidance on the relevant tasks applicable to various job functions. Indeed, Appendix H, which has been made available to all relevant parties ahead of publication of the new DGR, sets out in some detail the underlying principles of CBTA and stresses that it is the responsibility of the employer or training provider to tailor the material to ensure that trainees reach the level of competency required for each function as described in Appendix I.1.5. It also reminds industry of some basic principles: - The goal of CBTA is to produce a competent workforce by providing focused training, through the identification of key competencies and the level of proficiency

 THERE ARE MANY PERSONNEL WITHIN THE AIR TRANSPORT INDUSTRY THAT WILL NEED TO DEMONSTRATE THAT THEY HAVE THE CAPABILITY TO DISCHARGE THEIR DUTIES WHEN HANDLING OR CARRYING DANGEROUS GOODS

required, and by determining the most effective way of achieving them and evaluating that achievement. - Personnel must be trained commensurate with the functions for which they are responsible, which is not necessarily determined by their job title. Concentrating on functions and responsibilities rather than job titles means that the training provided can ensure that the trainee is competent. - Competency is defined as “a dimension of human performance that is used to reliably predict successful performance on the job” and is manifested and observed through behaviour that mobilises knowledge, skills, attitudes and experience.

on-the-job performance. Feedback from trainees is therefore crucial to ensure that training is effective. IATA also notes that there are important differences in the way that regulators would oversee a CBTA programme compared to traditional training. It is no longer sufficient to know that all trainees have passed a test; regulators must oversee the training programme to ensure it produces competent employees.

ROLES AND RESPONSIBILITIES IATA is alert to the fact that, in smaller companies, individuals may perform a range of functions. Other entities, such as ground service providers and freight forwarders, may need personnel to perform some functions that are typically carried out by shippers or operators. In such cases, training needs to prepare personnel for all eventualities. Employers therefore need to determine the purpose and objective of CBTA training programmes based on the functions for which their personnel are responsible. In the CBTA approach, they also need to ensure that training is designed and developed to establish clear links among the various competencies that are to be achieved, the learning objectives, assessment methods and course materials. IATA advises that employers should liaise directly with their responsible regulator to ensure that CBTA courses are developed in line with their requirements. CBTA also introduces changes for trainees,

IATA ON YOUR SIDE To support industry implement the move to CBTA, IATA has developed an range of guidance and assistance. It has, for instance, already developed its own CBTA programmes and e-learning courses for well-established operational job functions and also offers customised training for in-house delivery. IATA has also set up a certification programme that enables organisations across the aviation industry to assess and improve their training programmes, instructional material and content. That programme offers a Certificate of Validation to attest that the training given to employees meets the standards set by the CBTA requirements in DGR. Organisations meeting the certificated standard will be able to provide employees with co-branded IATA course certificates. IATA’s training consultancy services are also being expanded to meet the CBTA approach. With its in-house expertise and wide experience around the world enables it to effectively engage with clients, listen to their training needs and provide targeted knowledge-transfer solutions to enhance training effectiveness and performance. Organisations active in the air transport of dangerous goods have had plenty of time to get used to the idea of CBTA but any

who now become active participants in the learning process rather than merely passive recipients of knowledge. A CBTA programme should provide them with a clear view of their learning path towards competency, both during the training process and beyond, and should directly contribute to improving their

that have not yet begun to develop the appropriate tools are going to have to move fast. More information on IATA’s approach to CBTA and the services it provides can be found on its website at www.iata.org/en/training/validationprograms/consultancy/cbta-dgr/.

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REMOTE CONTROL ONLINE TRAINING • DURING THE COVID-19 LOCKDOWN, ONLINE TRAINING HAS COME INTO ITS OWN. CAREFULLY CONSTRUCTED, IT CAN MEET ALL THE REQUIREMENTS OF IATA’S DGR THE INTERNATIONAL AIR Transport Association’s (IATA) Dangerous Goods Regulations (DGR) already specify that “personnel must be trained in the requirements appropriate with their responsibilities”. The prospect of a competency-based training approach should, therefore, not come as a surprise to the dangerous goods training community. The categories of training defined in the IATA DGR have always been intended to provide guidance to cover certain job roles and areas of training required. Reviewing older versions of the Regulations, it mentions that “depending on the responsibilities of the person, the aspects of training to be covered may vary from those shown in Table 1.5.A e.g. it may be more appropriate for a packer to cover the aspects with which a shipper

As the concept of competency-based training arrives in the DGR, the removal of the training tables will force the development of new bespoke training programmes, presenting a challenge to those who currently provide off-the-shelf open courses. The main purpose of a competency-based training approach is to provide training covering the knowledge and skills needed to allow employees to perform their job function at the required performance level that satisfies safety and is commensurate with their responsibilities. IATA will be introducing new text covering the requirements of competency-based training into Section 1.5 of the 62nd edition of the DGR and moving Table 1.5.A to Appendix H. This will be introduced with a two-year transition period, allowing sufficient time for training providers to adapt their current programmes to meet

may be familiar”.

the new requirements.



ONE STEP BEYOND Dangerous Goods Online Training Ltd is one step ahead of other training providers. With their innovative approach to training, they have already begun to embrace this concept.

ALL THOSE ACTIVE IN HANDLING DG BY AIR NEED TO BE TRAINED APPROPRIATELY

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Even though their online training courses are presented in a modular approach, personalised learning regularly takes place for their students, ensuring that the courses fit the needs of the trainee - trainees are not expected to fit the course, as can happen with the traditional classroom approach. By monitoring students’ progress, they are able to pick up on the gaps in the students’ knowledge as well as identify areas where the training needs to be adapted and improved. The courses are regularly updated in real time, unlike classroom-based training courses, using examination analysis to feed into course delivery and regular improvements to training materials. Students can ask personalised questions, relevant to their job role, to consultants on hand through either email or phone, seven days a week. Testing competency will be the employer’s responsibility but they too can approach Dangerous Goods Online Training Ltd for ideas of how to do this. Having to adapt their training options due to the Covid-19 pandemic, Dangerous Goods Online Training Ltd is continuing to meet the needs of the industry. Approval from the UK Civil Aviation Authority to offer one-to-one remote examinations has been a real lifeline for many students, particularly those requiring initial shipper training in remote locations across the UK and in Europe. Dangerous Goods Online Training Ltd is pleased to offer HCB readers a 10 per cent discount on all of their online training courses using discount code DGOTHCB. For further details visit www.dgonline.training, call +44 (0) 800 649 6799 or email info@dgonline.training.

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unless PHMSA extends the phase-out period before the end of the year. After that, packages previously shipped as ORM-D will require different markings. A hazmat training course – whether online or in-person – that fails to address this change will misinform shippers and lead to supply chain confusion.

THE NUMBER OF US-based industry professionals who rely on online dangerous goods training had been rising since before the Covid-19 pandemic began. Now, given the social distancing requirements and limits on in-person gatherings faced by many due to the pandemic, online training has become a must-have tool to inform employees and maintain compliance. Many have speculated this year that online meetings, events and training may be the “new normal” for schoolkids and professionals alike. If this is the case, finding an effective online training platform is crucial for organisations

ACCURATE AND UP TO DATE Dangerous goods regulations are not written in stone. The requirements for highway, rail, air and vessel shipments change frequently. Outdated training can misinform and confuse employees, leading to unforced errors, rejected shipments, and even civil penalties for avoidable violations. When regulatory compliance is part of your job, reliable, up-to-date training is a must. There are three questions to ask about any online course: • When was the course created or last updated?

CONVENIENCE AND ACCESSIBILITY Online learning has one key advantage over in-person training: you can access it anywhere you want. At least that’s the idea. In the real world, your experience of any internet-based service may vary depending on factors like your device, operating system, web browser, connection speed, security settings, and so on. When evaluating online training options, ask if technical support is available for trainees who run into predictable hiccups that every computer user experiences from time to time. Also, keep in mind the devices your employees will likely use. Is the course compatible with desktop computer only? Or can employees use tablets, smartphones or other mobile devices to complete it? When we talk about ‘online’ anything, we generally mean the internet we all use at work, at home, and on the road. The internet we can access pretty much everywhere. Training that is only available via an internal corporate learning management system or intranet limits how, when and where employees can access training. Dangerous goods regulations are not very user-friendly. But that’s no reason to expect dangerous goods training to be complex or frustrating. Easy-to-use navigation tools are an important part of online learning — especially when the content itself is dense and difficult to understand, like dangerous goods regulations are.

involved in dangerous goods transportation. Employers should not have to choose between quality and convenience when they incorporate online learning into a dangerous goods training programme. These four key factors will help you capitalise on the benefits of online learning and avoid its major drawbacks.

• Does the provider have a reputation for quality training? • Will the provider answer trainees’ questions about the course content? Consider this concrete example: In the US, the ORM-D classification for ground shipments will not be permitted after 31 December 2020,

Before you purchase an online course, ask for a demo so that you can get acquainted with the training you expect employees to complete. You should know what to expect before you purchase any online training especially for subjects as consequential as dangerous goods transport.

THE NEW NORMAL? TRAINING • IN THE AGE OF SOCIAL DISTANCING, THE BENEFITS OF ONLINE TRAINING HAVE COME TO THE FORE BUT, SAYS LION TECHNOLOGY’S ROGER MARKS*, THERE ARE DRAWBACKS

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LEARNING TOOLS AND TECHNOLOGY We all learn in different ways. We learn by hearing, by seeing, by reading and by doing. Training personnel with responsibilities for dangerous goods compliance is most effective when it includes interactions, exercises and periodic knowledge checks. These tools not only keep employees engaged during the training, they reinforce the content and help ensure employees can apply their knowledge to real-world situations. Closed captions or subtitles have been shown to help those with and without hearing loss to learn more from a computer-based experience. Captioning is also invaluable to workers who take training in loud environments like warehouses or factories, and non-native English speakers. Some online courses are limited to a text-only experience or a single audio/visual presentation. Effective training should include resources that supplement the course content and lay out they key elements of each online lesson or module. Workbooks, manuals, flow charts, infographics and exercises serve as valuable resources after the training is complete. An employee who needs a refresher on specific requirements, or wants more details about a unique situation, should not have to repeat an entire course to get it.

provider has the expertise and staff needed to answer student questions. Whether employees submit questions from the online course interface, via email, or through a live chat application, the answers they receive will help them better comprehend and retain what they learn. Does your online training provider employ real, live trainers who can answer questions or provide clarification when needed? Or are employees on their own once the sale is complete? Another question to ask of any training provider is this: What happens after the course is complete? Learning doesn’t stop when we leave the classroom. When we apply what we learn in the real world, it’s common for questions to arise that don’t have clear, obvious answers—even for regulatory experts. Seek out dangerous goods courses that offer resources to support your team as you apply what you learn on the job. This might include features like updates for your training materials, alerts on major regulation changes, or a compliance helpline for answers from instructors and experts.

TILL WE MEET AGAIN There will always be a need for in-person, instructor-led training. For now, employers can replicate some of the benefits of in-person training using live webinar training and self-paced online courses. When you evaluate online training solutions using the four factors in this article, you help ensure the training your employees receive is reliable, useful, and engaging. We all share the hope that, when it’s safe to do so, governments can relax remaining social distancing mandates and restrictions on in-person events that help control the spread of Covid-19. When that happens, dangerous goods professionals around the world will convene again in conference rooms and event centres to share ideas, sharpen their expertise and learn together. If virtual learning is the new normal, at least for now, employers must seek out training partners who make online learning effective and offer as many benefits of in-person learning as possible. *Roger W Marks is content writer at Lion Technology. For more information go to www.lion.com.

FOLLOW-UP SUPPORT Since the days of Socrates and Plato, question-and-answer has been a crucial part of the learning experience. During in-person training, employees can ask questions at any time by raising a hand. Employees should not have to go without this crucial element of training just because they train online. Before you purchase online training, you should be confident that your training

 CURRENT TRAVEL RESTRICTIONS HAVE HIGHLIGHTED THE POTENTIAL AS WELL AS THE SHORTCOMINGS OF ONLINE LEARNING

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LET’S MEET REAL SOON EVENT PREVIEW • LABELINE HAS SWITCHED ITS BIENNIAL ROADSHOW TO A ‘WEBSHOW’. ALL THE IMPORTANT PRESENTATIONS WILL STILL BE MADE – JOIN US ONLINE IN SEPTEMBER! AS WITH MOST industry seminars scheduled this year, Labeline’s Biennial Dangerous Goods Roadshow has succumbed to the Covid-19 restrictions. Since 2016, the ‘Biennial’ has evolved to become one of Europe’s most important regulatory update seminars for those involved in the transport of dangerous goods and HCB has been the media partner for the event. All is not lost, however, as Labeline will be bringing the event online and hosting it as three half-day webinars. The Biennial Dangerous Goods ‘Webshow’ is timed to coincide with the release of the multimode dangerous goods regulations that will take affect from 1 January 2021. Each webinar will include a session focused on the forthcoming regulatory updates to the dangerous goods regulations.

HCB MONTHLY | SEPTEMBER 2020

As Richard Shreeve, compliance manager at Labeline International explains: “This will be one of the very few international events of its type this year, so attendance is allimportant for those involved in the transport of dangerous goods.” A PACKED AGENDA All three learning sessions will be free to attend for delegates from around the world and each event will start at midday BST. Attendees will learn from highly respected speakers, all knowledge leaders in the field. They can also pick and choose which talks to attend over the three days. The first day, on Tuesday 15 September, will cover road and sea regulations. Caroline Raine of the National Chemical Emergency

Centre (NCEC), will give an update on the changes coming into effect in ADR in 2021, while Gene Sanders of WE Train, based in Tampa, Florida, will provide an update on the US Hazardous Materials Regulations (’49 CFR’) as well as the latest amendments to the International Maritime Dangerous Goods (IMDG) Code. Complementing those regulatory presentations, Terry Harvey and Jason Dearsley will represent the UK’s CDG Practitioners Forum, speaking about police enforcement of the regulations. Chris Barker of Exis Technologies will speak on online training and discuss dangerous goods detection systems; and Philip Rice of Abloy will talk on security. The second day, taking place a week later on 22 September, will focus on air transport. The upcoming changes to the International Air Transport Association’s (IATA) Dangerous Goods Regulations will be covered by Dave Brennan from IATA, with his colleague Nick Carlone discussing product development at IATA. Geoff Leach of The Dangerous Goods Office will speak about lithium batteries as well as remote classroom training; Scott Dimmock, a partner in Dangerous Goods Online Training, will provide an update on

COURSES & CONFERENCES

what is possible to achieve with online training. The third and final day, on 29 September, will offer an overview, led by HCB’s editor-inchief Peter Mackay, who will summarise the main changes in the 2021 regulations that dutyholders need to be aware of. Herman Teering of DGOffice will look at developments in terms of software and digitisation in the dangerous goods supply chain. The day will also include presentations on Level 1 emergency response requirements and expectations by a representative of NCEC, with Level 2 and 3 being covered by representatives of Ambipar (talking about Europe) and Ouray Environmental (for the US and Asia-Pacific). The day also includes a talk on dangerous goods packaging by Mark Spence, representing the British Association of Dangerous Goods Professionals (BADGP). EXPERIENCED SPEAKERS There will be opportunities to ask questions to the presenters throughout the event and attendees will receive an informative programme produced in PDF format. The speakers are all highly experienced and include suitably qualified experts who can explain not only the changes to the regulations but also the reasons behind them: • Dave Brennan is IATA’s assistant director, Cargo Safety Standards and, as the lead editor for the Dangerous Goods Regulations, he will highlight the changes in the 62nd edition of the DGR. • Caroline Raine, from NCEC, is the former chair of BADGP and has an in-depth knowledge of the ADR regulations; she will explain the forthcoming amendments for road. • Gene Sanders is an accomplished speaker at regulatory seminars around the world. He was an expert witness in the MSC Flaminia trial and is the top trainer for the Certificate of Dangerous Goods Professionals (CDGP) qualification. Gene will update us on the IMDG Code and the rules Stateside (49 CFR). • Geoff Leach is the former head of the UK Civil Aviation Authority’s (CAA) Dangerous Goods

 COVID-19 NOTWITHSTANDING, DANGEROUS GOODS PROFESSIONALS NEED TO BE UP TO SPEED WHEN THE NEXT ROUND OF REGULATORY CHANGES LAND AT THE START OF 2021

Office and former chairman of the ICAO Dangerous Goods Panel. He is the current Chair of the IATA Lithium Battery workshops. • HCB is the media partner for the event and our own Peter Mackay, a qualified DGSA, will take a holistic look at the more significant amendments across all modes. LEARNING AND TEACHING However, it’s not just about the regulatory changes that are on the horizon; the Biennial DG Webshow will have a strong emphasis on learning for both the attendees and the companies that they represent. Indeed, the Roadshow that was originally planned had received CPD accreditation and the same approval is being sought for the virtual event. As the whole of the logistics industry becomes more digitised, the future of DG will be discussed in presentations introducing smart technology such as new software, security systems and specialised detection equipment to seek out undeclared DG. Delegates will also hear from the developers of novel online and virtual training solutions for dangerous goods practitioners, some of which have already become available and enabled staff to achieve the required qualifications during the Covid-19 crisis. One of the important talks in the first session will be from DGSA police officers who will give an insight into the UK’s new national strategy that is being adopted when checking vehicles for non-compliance. With the subject matter also including emergency response, dangerous goods packaging and lithium batteries, this event is a must for anyone involved in dangerous goods, including packers, consignors, procurement personnel, forwarders and DG professionals. ABOUT THE HOSTS Labeline International has for nearly 30 years been at the forefront of dangerous goods compliance, supplying publications, labels, documentation and software. Keith Kingham, managing director of Labeline International, says: “We are on target to be IATA’s best performing DGR distributor for 12 consecutive years. We are also one of the leading authorised distributors worldwide for both ADR and the IMDG Code. I am proud of our

small, hard-working team and grateful to our many thousands of loyal customers.” Labeline also publishes the Guide to Exemptions from CDG - the ideal reference book to help consignors and shippers determine if their consignments fall within the scope of ADR. Labeline also distributes DGOffice software, which simplifies the classification process and makes the calculations to enable users to quickly produce dangerous goods documentation that will always be in compliance with current regulations worldwide. DGOffice is an online service that is updated automatically and quickly, ensuring users are always up to date, and can be integrated into SAP and other enterprise systems. “If you are involved in the shipping of dangerous goods you need to have the reassurance that the labels and marks you use to show the hazards of the products that make up a shipment are correct and compliant,” says Richard Shreeve. “Labeline has an extensive stock of over 2 million labels, marks and placards ready for next day delivery. Labeline’s labels comply with the latest regulations and they have the adhesion, abrasion resistance and colour retention properties to exceed the requirements of the IMDG Code.” Labeline stocks a range of UN approved boxes and offers bespoke solutions for all dangerous goods packaging requirements. Labeline also offers a range of training options for the transport of dangerous goods by all modes. The company’s trainers include the former head of the CAA’s Dangerous Goods Office and the CAA’s former DG Policy Specialist. They both represented the UK at UN meetings and are, therefore, ideally placed to not only deliver training in the requirements but also to explain the thinking and decisions behind them. Uniquely, Labeline offers both remote classroom dangerous goods training and online courses for shippers and operators. Labeline also offers the full range of function-specific courses for IMDG compliance. Labeline offers free worldwide shipping and will price-match on selected items to ensure customers are always getting the best service available. Fast delivery to more than 160 countries has established Labeline as one of the world’s leading suppliers of the complete dangerous goods range. www.labeline.com.

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HCB MONTHLY | SEPTEMBER 2020

COURSES & CONFERENCES 69

CONFERENCE DIARY The global Covid-19 pandemic has caused the cancellation or postponement of many events planned for the next few months. A number of events have also been transformed into ‘virtual’ meetings. HCB has been trying to keep on top of developments but readers should check the dates and locations shown below as things are still changing rapidly.

SEPTEMBER ChemEdge September 1-3, virtual Conference for the North American chemical distribution sector www.nacd.com/education-meetings/meetings/2020chemedge/ LogiChem September 8-10, virtual Chemical supply chain and logistics conference http://logichem.wbresearch.com/ Labelmaster DG Symposium September 9 onwards, virtual 15th annual Dangerous Goods Symposium hosted by Labelmaster’s DG Exchange www.labelmaster.com/symposium Labeline Biennial Dangerous Goods Roadshow September 15/22/29, virtual Biennial conference to provide a regulatory update to industry www.labeline.com/dangerous-goods-webshow/ Virginia Hazmat Conference September 15-18, Norfolk 37th annual networking and training meeting sponsored by the Virginia Association of Hazardous Materials Response Specialists www.virginiahazmat.org/annual-hazmatconference/ Pumps & Valves Asia September 23-26, Bangkok Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com European Bulk Liquid Storage Summit September 30-Oct 1, Cartagena Eighth annual conference on the European market for bulk liquids storage www.wplgroup.com/aci/event/european-bulkliquid-storage/

OCTOBER EPCA Annual Meeting October 4-7, virtual 54th annual meeting of the European Petrochemical Association www.epca.eu

IPANA Annual Conference October 6-8, virtual Annual meeting of the Industrial Packaging Alliance of North America www.industrialpackaging.org/#events Tank Truck Week October 6-8, Dallas NTTC’s Annual Tank Truck Show & Maintenance Seminar https://tanktruck.org/Public/Events/Tank-TruckWeek/Public/Events/Tank-Truck-Week.aspx Flame October 12-13, virtual 26th annual conference on natural gas and LNG in Europe https://energy.knect365.com/flame-conference/ LNGgc October 12-14, virtual 10th annual conference on LNG shipping and trade https://energy.knect365.com/lnggc-london/ Hazmat 2020 October 13-14, Stratford-upon-Avon 13th annual conference for hazmat specialists https://the-ncec.com/en/events-en/hazmat-2020 Dangerous Goods Operations & Hazardous Substances 2020 October 14-16, Melbourne Workshop on chemical safety and dangerous goods compliance http://www.marcusevans-conferences-australian.com Oil & Non Oil October 21-23, Verona Trade show on fuel and non-oil storage and distribution in Italy and Europe www.oilnonoil.it Cryogenic Storage Tanks October 22-23, Munich Second technical conference on liquefied gas storage www.tuvsud.com/de-de/store/academy/ conference-management/tank-storage-systems/ cryogenic-tanks ChemCon Europe October 26-30, London Conference on global chemicals regulation https://chemcon.net/upcoming.shtml

DGAC Members Conference October 28-29, virtual Annual conference of the Dangerous Goods Advisory Council www.dgac.org/dgac-meetings-0

NOVEMBER NACD Annual Meeting November 9-12, La Quinta, CA 49th Annual Meeting of the National Association of Chemical Distributors www.nacd.com/education-meetings/meetings/ annual-meeting/nacd-annual-meeting-2020/ Chemspec Europe November 11-12, Köln International exhibition for fine and speciality chemicals www.chemspeceurope.com/2020/english/press/ downloads/ LogiPharma November 11-13, virtual Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com ILTA November 16-18, Houston 40th annual operating conference and trade show of the International Liquid Terminals Association www.ilta.org Argus LPG Moscow November 19-20, Moscow 15th annual event for the regional LPG sector www.argusmedia.com/en/conferences-eventslisting/lpg-2020 Med Hub Day 2020 November 19-21, virtual Fourth annual workshop on regional tank storage issues www.hubdaytarragona.com all4pack November 23-26, Paris Biennial trade fair for the packaging and packaging machinery industries, incorporating Emballage www.all4pack.fr

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS

Date

Location

18/5/20

East Aurora, freight train New York, US

27/5/20

Takoradi, road tanker diesel Ghana

Ghana Railway loco crashed into GOIL fuel tanker at level crossing near container terminal, causing large Modern spill of diesel; tanker driver arrested but said vehicle stalled; locals rushed to collect fuel; fire crews intervened Ghana

27/5/20

Pune, tank container Maharashtra, India

Leak of acetic acid from tank container after accident; locals reported eye irritation, breathing problems; responders neutralised spill with ammonium bicarbonate; remaining acid transferred to another tank

The Indian Express

28/5/20

Mwakamogho, road tanker gasoline Karonga, Malawi

Road tanker with 42,000 litres from Tanzania to Lilongwe had tyre fire that spread to tanker; driver escaped; fire caused locals to stay clear of accident

Malawi NA

5/6/20

Mineral county, truck Montana, US

trimethylbenzene

Semi-truck with three trailers overturned on ramp off I-90 near Superior, spilling load of 2-gallon containers of herbicide; driver unhurt; ramp closed for cleanup; operator investigating if load was properly secured

KPAX

6/6/20

Screven, freight train Georgia, US

hydrogen peroxide

Seven cars of 200-plus car CSX train derailed at Highway 84 crossing; two cars had hydrogen peroxide, of which some 11,000 gal (42 m³) spilled; water used to dilute spill; EPA on site to ensure proper cleanup

WTOC

6/6/20

Indianapolis, road tanker diesel Indiana, US

Brown’s Oil Services tank truck with 3,000 gal (11.4 m³) diesel caught fire on I-465; some fuel spilled to creek; driver unhurt but one firefighter suffered minor injury; road closed for several hours

IndyStar

10/6/20

Raigarh, road tanker diesel Chhattisgarh, India

Four workers were injured when diesel tanker exploded during cutting at scrap yard of steel plant; police said some fuel may have been left in tanker and ignited when gas cutter was used

Times of India

13/6/20

Taizhou, road tanker LPG Zhejiang, China

At least 19 people killed, more than 170 injured when LPG tanker exploded at highway exit, crashed into nearby workshop; fire engulfed other cars, debris destroyed buildings; operator had poor safety record

Xinhua

13/6/20

Rock Springs, freight train ethanol Wyoming, US

26 cars of UP train derailed near Rock Springs; 10 cars had ethanol, which led to major fire, explosion; two people suffered injuries; FRA on site and opened investigation into cause of derailment

CBS4

13/6/20

Wynnewood, freight train Oklahoma, US

sodium Freight train derailed, two cars leaking sodium hydrosulphide; nearby residents evacuated; cause of hydrosulphide derailment under investigation

News9

21/6/20

Debert, truck Nova Scotia, Canada

gas cylinders

Truck carrying more than 1,000 propane cylinders caught fire; responders arrived to find cylinders flying in all directions; crews had to keep away until fire cooled; fire started in brakes; blaze spread to nearby woods

CBC

21/6/20

Kara, road tankers gasoline Lagos, Nigeria

Two road tankers collided on Kara Bridge on Lagos-Ibadan Expressway, causing fire, explosion; fire spread to another tanker, other vehicles; at least four killed; reckless driving by one driver blamed

Business Day

28/6/20

Toba Tek Singh, road tanker gasoline Punjab, Pakistan

Road tanker from Karachi overturned on Lahore-Abdul Hakim section of M-3; cause unclear; both drivers badly hurt, one died of injuries; road closed, area sealed off to avoid risk of fire

The Int’l News

6/7/20

nr Pueblo Vieja, road tanker gasoline Magdalena, Colombia

At least 11 people were killed, more than 50 injured by explosion in road tanker that had overturned after swerving to avoid caiman in road; locals rushed to loot gasoline with police unable to control the crowd

Noticias RCN

6/7/20

Betong, road tanker oxygen Sarawak, Malaysia

Road tanker with liquid oxygen collided with gravel truck on Pan Borneo Highway; valve on tanker leaked; responders allowed cargo to vent; both drivers unhurt; investigation underway

The Star

11/7/20

Bloomfield township, road tanker gasoline Michigan, US

Tank truck overturned on off-ramp from I-75; fire broke out, consuming almost all of 13,500-gal (51 m³) load; ramp closed indefinitely for repairs; driver suffered minor injuries

Detroit Free Press

13/7/20

Colbert county, road tanker asphalt Alabama, US

Tank truck with 6,300 gal (24 m³) asphalt from Pelham to Tuscumbia was involved in crash; driver rescued from cab with injuries; some 500 gal asphalt spilt to road; other traffic diverted during cleanup

WAAY

14/7/20

Haifa, road tanker LPG Israel

Road tanker with 20 tonnes LPG was in collision with car, sparking fire; both drivers escaped; fire crews managed to prevent explosion, using newly delivered fire truck with high-pressure water cannon

Jerusalem Post

14/7/20

Routt county, road tanker methanol Colorado, US

Tank truck overturned on Highway 40 near Rabbit Ears Pass, spilling methanol cargo; westbound lanes closed, local evacuation ordered

9News

27/7/20

East Brunswick, truck New Jersey, US

flammable liquids

Fire broke out in box truck with unidentified flammable liquids in parking lot of Porcelanosa store; fire damaged utility poles, power lines; dense black smoke over area; leaking fuel contained

Daily Voice

29/7/20

Tempe, freight train Arizona, US

cyclohexanone

UP freight train derailed on bridge over Tempe Town Lake; three tank cars, two with cyclohexanone, fell off bridge, at least one leaking product; not thought that lake was impacted by spill; bridge badly damaged

Fox10

HCB MONTHLY | SEPTEMBER 2020

Vehicle Type

Substance

Details

Source

LPG, crude oil

17 cars of 98-car Genesee & Wyoming train derailed near Main Street; two derailed cars were loaded but operator reluctant to provide details; known that some cars were tanks with crude oil, propane, butane

WKBW

acetic acid

SAFETY 71

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Details

Source

30/6/20

Rodman, Sea Lion fuel oil Panama

Vessel

Substance

Bunker barge reported to have spilled unconfirmed quantity of fuel oil at port of Rodman, at Pacific entrance to Panama Canal; no official confirmation of spill from authorities

Ship & Bunker

3/7/20

Iloilo City, barge bunker fuel Panay, Philippines

Explosion on power generation barge caused spill of some 40,000 litres bunker fuel; sheen reached shore; locals evacuated; Coast Guard believed hot work with acetylene torch caused explosion

Maritime Executive

4/7/20

Rotterdam, Dimitris S scrap Netherlands

Fire broke out in cargo hold of bulker moored at Waalhaven; vessel had arrived from Dordrecht with cargo of scrap, which is thought to have self-ignited; one crewman hospitalised after smoke inhalation

FleetMon

19/7/20

Barranquilla, Colombia

Tanker (16,000 dwt, 2006), arriving from Cartagena, possibly in cargo, grounded on rocky bottom at entrance to Barranquilla; no leak reported; vessel anchored for inspection; possible that repairs will be needed

FleetMon

Details

Source

Nordic — Wolverine

MISCELLANEOUS INCIDENTS Date

Location

Plant type

27/5/20

Baghjan, gas well natural gas Assam, India

Two firefighters were killed during response to major fire after blowout at gas well; nearly 2,000 people living nearby were moved to relief camp; fire fed by gas and condensate burned for several days

Hindustan Times

29/5/20

Norilsk, power plant diesel Krasnoyarsk, Russia

At least 20,000 tonnes diesel leaked from Nornickel plant in Arctic Russia after storage tank collapsed; leak ran into Ambarnaya River; state of emergency declared; operator criticised for slow report of spill

RSOE

1/6/20

Baton Rouge, Louisiana, US

ExxonMobil plant experienced release of sulphuric acid, cause not specified; release was contained on-site with no reported off-site impact; some employees reported possible effects of exposure

The Advocate

9/6/20

Faisalabad, oil depot fuel Punjab, Pakistan

At least four workers were killed when major fire broke out at unlicensed oil depot; authorities were unaware NIE of the site, which lacked all safety measures; site owner absconded

14/6/20

Abbotsford, pipeline crude oil BC, Canada

Up to 1,200 bbl light crude oil spilled from TransMountain Pipeline at Sumas pump station; spill was confined to property with no impact on waterways; authorities “deeply concerned” at the incident

CBC

22/6/20

Okinawa, air base hazmat Japan

Severe fire broke out in “hazardous materials facility” in Kadena Air Base, occupied by USAF; several reports of chlorine causing inhalation problems but no official explanation of nature of materials at the facility

Stars & Stripes

28/6/20

Ghaziabad, UP, India

chemical chemicals plant

Fire broke out, possibly due to short-circuit, at chemical factory in Pandav Nagar area; fire engulfed entire factory, threatened nearby residential area as flames were fed by unspecified chemicals in drums

Hindustan Times

29/6/20

Visakhapatnam, AP, India

pharmaceutical benzene plant

Two people killed, four injured by leak of benzene gas at Sainor Life Sciences plant in Parawada; leak during pumping of benzene into reactor; authorities closed plant

The Hindu

30/6/20

Tehran, clinic gas Iran

Leak from medical gas tanks at clinic in northern Tehran caused explosion that killed 19 people; fire crews rescued another 20; fears of further blasts as fire threatened other tanks

30/6/20

Gloucester City, asphalt plant asphalt New Jersey, US

Fire broke out in storage tank at Blue Knight Energy asphalt mixing plant, caused tank to explode; some Fox29 damage to tank roof but no report of spill of asphalt; nearby homes briefly evacuated; cause under investigation

2/7/20

Cape Town, oil refinery oil W Cape, S Africa

Two killed, six injured by explosion at Astron Energy refinery during startup after maintenance; significant damage to plant; all production stopped, fire out within a few hours; investigation underway

SAPS

3/7/20

Hendek, Sakarya, Turkey

fireworks fireworks factory

At least six people died after massive explosion at fireworks factory in north-west of country; locals reported that the plant had suffered previous blasts; cause not immediately known

4/7/20

Mahshahr, Khuzestan, Iran

petrochemical chlorine plant

At least 70 workers at Karun petrochemical plant were sickened by a release of chlorine; most were released AP after medical treatment; no explanation of incident or further details available

12/7/20

Mahshahr, Khuzestan, Iran

petrochemical oil plant

Widespread fire damage at Shahid Tondgooyan petrochemical plant after leak of hot oil; operator said extreme Al heat in July makes such incidents more likely; latest in a series of mysterious incidents in Iran Arabiya

12/7/20

Dudinka, pipeline Krasnoyarsk, Russia

14/7/20

Cairo, pipeline crude oil Egypt

chemical plant

Substance

sulphuric acid

aviation fuel

Some 45 tonnes aviation fuel leaked from Norilsktransgaz pipeline due to depressurisation; line owned by Nornickel, already being criticised after diesel leak (see above); fuel pumping suspended, cleanup underway

Reuters

Oil leaking from Shuqair-Mostorod pipeline alongside busy road was ignited by passing vehicles; locals said some cars were gutted by fire after being abandoned, some people were injured; cause of leak not known

Reuters

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CHART A COURSE

It is generally reckoned that around 10 per cent of all containers moving by sea contain some form of dangerous goods but the risk is greatest when those dangerous goods have been declared wrongly or gone undeclared altogether, whether out of ignorance or wilful avoidance of the applicable regulations. There are also dangers from properly declared dangerous goods that have been poorly secured within the container or have been badly packed or stowed. “The link between undeclared, misdeclared or poorly stowed dangerous cargoes and the increased incidence of catastrophic containership fires is hard to ignore,” says Ian J Lennard, president of the National Cargo

READ THE PAPER With its long-standing experience as an authorised inspection body in the US, NCB recognises that these diverse factors will require a similarly diverse approach to resolving the problem. It has set down a number of recommendations in a white paper, A comprehensive holistic approach to enhance safety and address the carriage of undeclared, misdeclared and other non-compliant dangerous goods. The white paper details 12 recommendations as part of a holistic approach, ranging from embracing a safety culture for dangerous goods compliance to practical measures for container and vessel inspections and monitoring. “Because of the clear and present risk predominantly to safety of life but also to ships, their cargoes and the environment, we are calling for all supply chain participants to work on a solution together,” says Lennard. NCB is, in the white paper, calling for urgent reform while offering

Bureau (NCB). “The reasons for issues with dangerous cargoes are diverse and include a challenging regulatory environment; cargo prohibitions; more complex supply chains; and varied levels of understanding and processes. Because of this, it is important that the stakeholders work together and

a way forward for enhancing industry-wide compliance and safety. It recommends a comprehensive, holistic dangerous goods programme that sets a high, minimum bar for achieving regulatory compliance requiring a robust internal safety culture with strong management backing.

CONTAINERSHIPS • NCB HAS WEIGHED IN ON THE DEBATE OVER CONTAINERSHIP FIRES WITH SOME PERSUASIVE DATA AND RECOMMENDATIONS FOR A HOLISTIC APPROACH AS CONTAINERSHIPS GET ever larger – the current record-holder is the newbuilding HMM Algeciras, which can carry almost 24,000 boxes – the risks posed by dangerous goods grow as well. Yet, while there have been many highprofile incidents over the years involving fires and explosions caused by dangerous goods, it has proved impossible to address the problem. And the problem seems to be getting worse. TT Club has calculated that, on average, there is a major fire aboard a containership every 60 days, but in 2019 there were nine such incidents, indicating that their frequency is increasing. Such events inevitably result in damage to cargo and the vessels themselves but can also result in fatalities aboard the ships and damage to the marine environment.

 AS CONTAINERSHIPS GET EVER BIGGER, THE RISKS INVOLVED ARE ALSO MAGNIFIED

HCB MONTHLY | SEPTEMBER 2020

adopt a range of measures that will address all potential causes.”

SAFETY 73

SIZE OF THE THREAT As a measure of the problem, NCB reports that in 2019 it inspected 32,387 containers (dry and tank) with dangerous goods in the US; of those, 2,569 (7.9 per cent) were found to be noncompliant because of poor stowage/ securement, misdeclared cargo or other issues. In addition, NCB recently spearheaded a Container Inspection Safety Initiative (CISI), that looked at 500 containers, including dangerous and non-dangerous import loads to the US from Latin America, Europe, Asia and the Middle East as well as US export loads involving shippers that had not previously been exposed to container inspections. CISI aimed to quantify the level of danger that exists on every voyage caused by misdeclared or insufficiently secured cargoes. It found that 55 per cent of the containers inspected were non-compliant in some way, with poor securing of goods within the container in 43 per cent. Of those containing dangerous goods, 6.5 per cent had misdeclared cargo. For export cargoes from the US, the overall failure rate was 38 per cent; NCB reports that its regular inspection activity finds an average failure rate of 7.9 per cent, and suspects that the much higher rate found during CISI indicates that shippers and consolidators are more likely to comply with applicable regulations if there is a reasonable chance their shipment will be inspected. Over the past three years, NCB also conducted 3,286 dangerous goods compliance reviews on board container vessels on behalf of vessel operators. Of these, 24 per cent identified some type of stowage or segregation error, including those related to regulatory requirements and/or the vessel’s document of compliance. In addition, 71 per cent also uncovered discrepancies on the vessel’s dangerous cargo manifest such as missing stowage positions or emergency response information, incorrect proper shipping name or identification number, or missing signatures to signify that the dangerous cargo manifest had been reviewed and found correct.

 THE FIRE ABOARD MAERSK HONAM CONCENTRATED THE MINDS OF SHIPOWNERS AND INSURERS

“The levels of non-compliance observed indicate a system ripe for the type of disasters the industry has experienced over the last several years,” NCB says. “This will continue unless a comprehensive holistic approach is adopted by the industry to attack the root of the problem and minimise non-compliance by all supply chain participants.” REASONS FOR NON-COMPLIANCE In order to reduce or eliminate non-compliance on this level, it is necessary first to understand why it is happening. NCB says that part of the problem is the sheer size and extent of global trade: demands for faster, just-in-time deliveries have created complex supply chains requiring more interdependency among participants and has resulted, in many cases, in a lack of visibility. In this environment, many shippers are finding it challenging to keep pace with the regulations – especially those who view dangerous goods compliance as simply a regulatory mandate rather than an integral part of their safety culture. Many organisations offer insufficient training and, as a consequence, standards are low. The increasing adoption of e-commerce is also creating the potential for non-compliant dangerous goods as many of these new types of shipper have limited knowledge of the applicable regulations – or simply don’t realise the items they are moving are regulated as dangerous goods. This complexity is being exacerbated by

a lack of harmonisation between the various modal and national regulations, while many countries do not have the resources to effectively enforce compliance. NCB also says that shipping lines themselves are amplifying the risk of misdeclarations when they ban or limit the carriage of certain dangerous goods, as has happened with, for example, calcium hypochlorite and fireworks. Calcium hypochlorite, an oxidising agent classified under Division 5.1 in the International Maritime Dangerous Goods (IMDG) Code, has been implicated in a number of major fires over the years and some carriers will no longer accept it. But global demand remains high and producers sometimes misdeclare it under names such as calcium chloride, bleaching powder, disinfectant, chloride of lime or chlorinated lime, purely in order to be able to ship it to their customers. Port restrictions can have a similar effect. Many ports drastically tightened their dangerous goods guidelines after the Tianjin explosion in August 2015, with some even prohibiting dangerous goods altogether. One shipping line, using an algorithm to interrogate cargo bookings for undeclared dangerous goods, reported a surge in suspicious bookings in the aftermath of that incident. INTERNAL AFFAIRS Other complications arise from the way that shipping lines organise their business. The proliferation of vessel sharing agreements

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means that it is almost inevitable that cargoes booked with one line will be carried by another at some point. While one carrier may have robust dangerous goods processes in place, the level of safety overall is established by the weakest link in the chain. Furthermore, the increasing complexity of supply chains has encouraged some carriers to widen their offering to include full, in-house, door-to-door solutions comprising freight forwarding, warehousing, consolidation, intermodal, trucking and other logistics services in addition to ocean transport. This opens the possibility that the dangerous goods function will get lost in the mix. Most, if not all, container vessel operators have developed processes and procedures for the review, approval, acceptance and carriage of dangerous goods. However, NCB says, management support, resources, tools, processes/procedures and training can vary greatly and may not be in line with industry best practice. Corporate structures may result in silos and a lack of clarity as to where the responsibility for dangerous goods compliance resides; the use of manual systems or legacy software may not be able to deliver accurate and reliable information; and undisciplined cut-off times can lead to issues with the verification of information. TWELVE-STEP PROGRAMME Taking all these factors into account, and recognising that container shipping lines carry

a disproportionate level of risk in the carriage of non-compliant dangerous goods, NCB’s white paper offers twelve recommendations to lines. 1. Key to establishing a robust culture is the creation of an awareness of the importance and responsibility for all employees to comply with applicable regulations and company policies. This requires company management’s commitment to dangerous goods regulatory compliance. A corporate dangerous goods policy should be developed that clearly delineates the functions and responsibilities of each business unit and employee roles related to the acceptance and handling of dangerous goods cargo, reinforcing best practices and fostering rigorous dangerous goods compliance and training. 2. Establish a dangerous goods department with full authority, and backing from senior management, on all matters concerning acceptance and transport of dangerous goods shipments. This dedicated department should receive thorough training in the requirements of IMDG Code Chapter 1.3 as well as all applicable local requirements, periodically supplemented with refresher training to take account of changes in regulations and practice. 3. Establish a compliant dangerous goods training programme that includes mandatory general awareness training for shore-based personnel throughout the company, where applicable, with function-specific training

where necessary. This should go beyond just ‘checking the box’ and include training that ensures employees can apply the necessary regulatory knowledge to their specific job function. 4. Establish disciplined cut-off times for booking and acceptance of dangerous goods cargo for receipt of final, certified and signed shipping papers/declarations and for physical receipt of dangerous goods containers. This provides time to review documentation, resolve any discrepancies and carry out container inspections, proper planning and terminal staging for loading dangerous goods to assigned positions on the vessel. 5. Incorporate integrated digital tools that automate critical compliance functions. This would include a tool to screen initial booking data and subsequent documentation such as dangerous goods declarations and bill of lading shipping instructions for key words or phrases to detect undeclared or misdeclared dangerous goods before cargo is accepted; a tool to automatically check booking data for compliance with international regulatory requirements under the IMDG Code (and domestic or local requirements where applicable); as well as a centralised portal for validation of data elements against specific port restrictions, in-house restrictions and partner restrictions for vessel sharing agreements. There should also be a process in place to ensure that these tools are kept up to date with regulatory changes. 6. Establish a dangerous goods documentation process that requires certified and signed shipping papers to be in hand, reviewed for acceptance and validated against approved booking information before shipments are loaded on a vessel. This would include review of preliminary and final hazmat shipping papers or dangerous goods declarations for regulatory compliance and comparing Bill of Lading or Shipping Instruction information against approved booking information and shipping papers to ensure consistency of information provided and to capture any misdeclared cargoes. 7. Establish a dangerous goods planning process that is strictly controlled. Planners should only plan and load shipments included

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on a load list approved by the dangerous goods department. Any changes to the load list or stowage plan should be approved by the dangerous goods department. Dangerous goods stowage and segregation checks should be incorporated into an automated planning tool. However, these checks should not substitute for a properly trained planner’s knowledge to ensure all stowage and segregation requirements are accounted for in accordance with national and international regulations (where applicable) and the vessel’s Document of Compliance. 8. Adopt a risk-based strategy for stowage of dangerous goods that enhances safety on board containerships. This strategy would not replace the SOLAS and IMDG Code requirements for stowage and segregation and should complement, but not substitute, ship operators’ existing measures for the carriage of properly declared dangerous goods. 9. Establish a receiving in-gate process for dangerous goods cargo that incorporates a centralised database to provide automatic display of correct container marking and placarding during inspection and review of dangerous goods cargo at the gate to avoid errors, increase compliance and speed of the in-gate process. In-gate process should include a physical external inspection of containers for damage, signs of leakage and proper placards and marks. Container placards and marks should be reviewed against booking information to ensure they match. Any container that does not match booking information and documentation or that does not pass physical external inspection should be placed on hold; responsible parties advised; and deficiencies rectified before cargo is accepted. 10. Establish a dangerous goods container inspection programme to validate integrity and ensure proper marking and placarding of the container; to ensure compatibility and proper securing of cargo stuffed in the container; and to check, where possible,

 ALL PARTICIPANTS IN THE SUPPLY CHAIN NEED TO TAKE PART IF PROGRESS IS TO BE MADE

for proper package labelling and marks, the existence of damage, leaks or spills or potential undeclared cargo. 11. Establish a vessel inspection process for dangerous goods cargo that fosters good communications between vessel, terminal planners and assigned shipping line planner during loading operations. The stowage plan should be reviewed prior to commencement of operations and during loading to review for any updates and upon completion to ensure final stowage and segregation complies with applicable requirements. 12. Create one common, centralised dangerous goods database that the industry can access and update on an ongoing basis. This database should include details that can be analysed to determine trends, improve standards and better target resources to address recurrent issues and their root causes. THE RATIONALE NCB stresses that the incorporation of digital tools and centralised databases will be a critical component of any programme and

should result in better detection of undeclared and misdeclared cargo before loading on to vessels; increased efficiencies and a reduction in unnecessary administrative functions and associated costs; a decrease in human error and faster turn time on dangerous goods booking approvals; and the production of valuable data to be used for analysis to determine trends and better target resources to address recurrent issues and bad actors in the supply chain. Industry should also work together in order to address dangerous goods regulatory issues, NCB says. This may best be accomplished by establishing working relationships between relevant organisations to consider the way forward, engage with regulators as appropriate, and arrest the disturbing and costly trends in recent years involving the carriage of undeclared, misdeclared and other noncompliant dangerous goods. The NCB white paper can be freely downloaded from its website at www.natcargo. org/Holistic-Approach-For-UndeclaredMisdeclared-And-Other-Non-compliantDangerous-Goods_White-Paper-by-NCB.pdf.

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LESSON LEARNED PROCESS SAFETY • ANY INCIDENT OFFERS A CHANCE TO LEARN BUT NOT EVERYONE TAKES THAT OPPORTUNITY. CSB APPLAUDS AIRGAS FOR HAVING LEARNED, AND LEARNED QUICKLY ANYONE CAN MAKE make a mistake. What’s important is what happens afterwards - a proper response often leads to greater respect. It’s a similar situation with accidents: even a well run company can suffer an accident but what marks them out from poorly run companies is how they deal with it. To highlight this, the US Chemical Safety and Hazard Investigation Board (CSB) has recently issued a Safety Spotlight, focusing on the actions taken by Airgas in the aftermath of a fatal accident at its manufacturing facility in Cantonment, Florida in August 2016. Those actions support CSB’s belief that the implementation of safety management systems is key to ensuring a safer chemical industry. The incident happened during the loading of a tank truck with nitrous oxide. The vehicle exploded, killing the only Airgas employee on

 RAPID REACTION BY AIRGAS HAS LED TO IMPORTANT CHANGES TO PROCESS SAFETY MANAGEMENT

site and causing severe damage to the plant. CSB’s investigation determined that the most likely cause of the explosion was that, during the loading, a pump heated the nitrous oxide above its safe operating limits, starting a decomposition reaction that propagated from the pump into the trailer. CSB’s investigation also found that Airgas did not have an effective safety management system to identify, evaluate and control process safety-related hazards. However, it quickly embarked on a comprehensive initiative to review the safety programmes at its nitrous oxide production facilities, trucking fleet, and cylinder-filling operations. That initiative included 17 different areas for process safety improvements. As a result of that proactive work initiated by Airgas while the CSB investigation was still underway, the Board issued only a single recommendation to the company, which was to complete its post-incident actions and to continue to implement safety initiatives for its nitrous oxide operations.

WELL DONE AIRGAS CSB applauds Airgas for having embraced this challenge and aggressively pursuing actions to close out its recommendation. “These actions resulted in an approach that now exceeds the quality of a number of similar company safety programmes where such operations are covered by the OSHA Process Safety Management (PSM) standard,” it says. Those actions included the creation of a new industrial risk management programme, a process hazard analysis methodology, a management-of-change procedure, and a project risk identification process. These are now included in written procedures that have been added to the company’s safety manual and incorporated into company operations. Several components of the CSB’s recommendation required literature reviews, third-party engineering assessments, policy development, senior level hiring, audits, training for operations personnel, and the application of new approaches. “Despite the scope and breadth of these activities, Airgas met with the CSB investigation team and members of the CSB Office of Recommendations in March 2019 to discuss status of the recommendation and then provided a formal written presentation. In May 2019, Airgas responded formally to the CSB documenting the successful close-out of the actions taken in response to the CSB’s recommendation,” CSB notes. In a little more than two and a half years, Airgas reengineered its entire approach to managing process safety in its nitrous oxide business. Airgas also increased its efforts to share the lessons learned and good safety practices, both inside the company and with the broader compressed gas industry. In addition, Airgas implemented new information-sharing practices internally, which connected to ongoing engineering assessments, audits, and training for operations personnel. “CSB acknowledges Airgas’s actions to advance chemical safety by identifying and implementing important safety changes even before the CSB investigation concluded,” CSB says. “As a result, Airgas exceeded CSB’s recommended actions by developing and rapidly executing comprehensive process safety changes that have broadly applicable lessons for the entire compressed gas industry.”

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BACK ON TRACK HARMONISATION • PHMSA HAS AT LONG LAST CAUGHT UP WITH INTERNATIONAL REGULATIONS, ALTHOUGH AS EVER IT HAS CHOSEN TO OMIT SOME NEW PROVISIONS THE CURRENT US administration in Washington, DC does not look kindly on regulation, seeing it as too often representing a burden on industry, and has pressed the various departments and agencies to refrain from additional regulation and, when new regulation is thought necessary, to provide justification for it. Under this environment, the various agencies of the US Department for Transportation (DOT) have sometimes struggled to implement safety-critical changes to the provisions contained in the Hazardous Materials Regulations (HMR).

Hazardous Materials Safety Administration (PHMSA), the multimodal agency that has primary responsibility for maintaining HMR. Its HM-215O rulemaking, designed to keep US regulations in step with international rules (insofar as is deemed necessary) was published as a final rule only on 11 May 2020, despite the fact that the international regulations it mirrors took effect at the start of 2019 and that the notice of proposed rulemaking (NPRM) was published on 27 November 2018. That NPRM drew many comments, not

So it has been with the latest biennial harmonisation rule from the Pipeline and

least from those concerned that any delay to publication of the final rule would cause problems in international intermodal transport, since HMR would then be out of step. PHMSA understood their concerns and, on 18 December 2018, issued a Notice of Enforcement Policy authorising the use

 PHMSA’S HQ (OPPOSITE) HAS STRUGGLED TO GET THE HARMONISATION RULEMAKING SIGNED OFF

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of the applicable international standards, viz the International Civil Aviation Organisation’s (ICAO) Technical Instructions 2019-2020 for air transport and Amendment 39-18 to the International Maritime Dangerous Goods (IMDG) Code for sea transport. In the final rule, those two sets of regulations have been incorporated by reference into HMR, along with the 20th revised edition of the UN Recommendations on the Transport of Dangerous Goods (the ‘Model Regulations’), Amendment 1 to the 6th revised edition of the UN Manual of Tests and Criteria, and the 7th revised edition of the Globally Harmonised System of Classification and Labelling of Chemicals (GHS). In addition, PHMSA has updated its incorporation by reference of Transport Canada’s Transportation of Dangerous Goods (TDG) Regulations to include amendments made in 2016 and 2017, and is also adopting a number of updated standards published by the International Organisation for Standardisation (ISO). MAIN CHANGES The amendments to HMR included in HM-215O are broadly in line with those contained in the UN Model Regulations, including additions, revisions and deletions in the Hazardous

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Materials Table (HMT) in §172.101. These include the new UN numbers and classification system for articles containing hazardous materials that do not already have a proper shipping name. Other important changes relate to lithium batteries. There is a new requirement to make available the ‘test summary’ to subsequent distributors. HMR now requires lithium battery manufacturers to subject lithium batteries and cells to appropriate UN design tests to ensure they are classified correctly for transport, and to develop records of successful test completion, called a test report. The test summary includes a standardised set of elements that provide traceability and accountability, thereby ensuring that lithium cell and battery designs offered for transport contain specific information on the required UN tests. In response to concerns expressed in some comments, PHMSA has extended the compliance date for this measure to 1 January 2022. PHMSA is also amending the aircraft passenger provisions to take account of baggage that is equipped with lithium batteries

that power features such as location tracking, battery charging, digital weighing or motorised wheels. Such ‘smart luggage’ must be carried in the cabin of the aircraft unless the batteries are removed, unless the batteries do not exceed 0.3 g lithium content (for lithium metal batteries) or 2.7 Wh (for lithium ion batteries). PHMSA is also adding requirements to segregate lithium cells and batteries from certain other hazardous materials, notably flammable liquids, when offered for transport or transported on aircraft. This is consistent with the ICAO Technical Instructions and also implements a recommendation from the National Transportation Safety Board (NTSB) arising from the loss of Asiana Airlines Flight 991 in July 2011. Another major revision applies to the classification of corrosive materials, where PHMSA is now allowing alternative methods to determine the classification and packing group assignment for such materials, without carrying out physical tests. PHMSA has, however, varied from the UN Model Regulations in terms of provisions for the transport of polymerising substances, »

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delaying entry into force until 2 January 2023. This will give PHMSA time to conduct research and analyse comments and data, and allow it to evaluate the most appropriate provisions for such materials. This change responds in particular to a number of comments on the four new entries that were added in HMT in January 2017, including some critical of PHMSA’s use of Test Series E. PHMSA has addressed a problem relating to the use of ‘NA’ entries in HMT, revising §172.101(e) to clarify that these are for use within the US only. Transport Canada made a change to the TDG Regulations as long ago as 2001, limiting the use of NA entries to materials classified as consumer commodities and HMR had not been revised to reflect this. While there was one comment against the change, PHMSA simply states that Canada does not allow NA numbers and therefore HMR cannot suggest that they can be used for cross-border transport. ITEMS NOT ADOPTED As usual, PHMSA has chosen not to adopt some of the changes included in the UN Model Regulations. For instance, it did not pick up on the new provisions to allow the transport of vehicle fuel gas containment systems containing certain gases, such as LNG and LPG, for disposal, recycling, repair or delivery to a vehicle assembly plant. It felt that the measure, which applies to vehicles meeting certain European automotive standards, was not appropriate for domestic transport in the US (and, it has to be said, the likelihood of transatlantic transport of such items must be slim). PHMSA did invite comments on its decision and the Council for Safe Transportation of Hazardous Articles (COSTHA) took the opportunity to challenge it, as there is a need to regulate such movements within the US and domestic motor vehicle manufacturers apply

 ‘SMART LUGGAGE’ MUST BE CARRIED IN THE AIRCRAFT CABIN UNLESS THE BATTERIES ARE REMOVED

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other global standards to achieve compliance with equivalent Federal Motor Vehicle Safety Standards (FMVSS). PHMSA noted, though, that FMVSS is not incorporated in HMR and to adopt its requirements would need coordination with other agencies. It invited COSTHA to file a petition for rulemaking if it believed that this particular provision should appear in HMR, noting that a more comprehensive review of current standards might be appropriate to reflect existing practices in industry. PHSMA also declined to adopt the UN’s new provisions for the transport of damaged or defective lithium cells and batteries liable to rapidly disassemble, dangerously react, or produce a flame, a dangerous evolution of heat, or a dangerous emission of toxic, corrosive, or flammable gases or vapours under normal conditions of transport. PHMSA felt that this is already covered in the existing packaging and hazard communication requirements; one comment addressed the subject and supported PHMSA’s position. COSTHA also appealed for consideration of safety devices in dedicated handling devices, urging alignment with the IMDG Code and authorising the transport of unpackaged articles to, from or between the place of manufacture and an assembly plant. PHMSA once more felt that this

is already adequately addressed in §173.166(e)(4)(i) and (ii) and declined to take the matter further. One outstanding issue is the introduction of the principles of competency-based training, which had been delayed by ICAO and will now be included in the next round of regulatory updates. PHMSA received several comments on this topic, which it welcomed; these will be used by PHMSA to inform its position on the topic at various international regulatory fora. CHANGES IN THE TABLE The final rule is extremely lengthy, containing not just the amendments adopted to HMR but also PHMSA’s rationale behind its decisions. This will be helpful to all dutyholders but also makes the document difficult to get through. Nevertheless, all those with responsibilities under HMR are urged to read it carefully to determine if any of the amendments affect their operations. The rest of this article concentrates on some of the major issues, most of which derive from the 20th revised edition of the UN Model Regulations. There are several new entries in HMT, most of which relate to the newly adopted UN 3537 to 3548 for articles containing dangerous goods of the various classes. These were

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designed to cover situations where dangerous goods or their residues are present in articles above the quantities authorised for dangerous goods in machinery and apparatus, and also to avoid the need to create new entries to deal with emerging technologies. There are numerous consequential additions and amendments throughout HMR. Two other new entries are UN 3535 Toxic solid, flammable, inorganic, nos and UN 3536 Lithium batteries installed in cargo transport unit. The first of these addresses toxic solids with a flammable subsidiary risk of packing groups I and II; the second covers lithium metal or lithium ion batteries installed in a cargo transport unit (e.g. a freight container) and designed only to provide power outside that unit, such as in portable battery banks or for collecting solar energy. There are numerous other changes in HMT. For UN 3302, the word ‘stabilized’ is added after the proper shipping name, 2-Dimethylaminoethyl acrylate, as the substance has been determined to polymerise under certain conditions. For UN 3316 Chemical kit or First aid kit, the packing group assignments are removed, in recognition that there are cases where the materials in the kits are not assigned to a packing group. There were some omissions in the NPRM under HM-215O relating to special provisions for air transport. The final rule reinstates the changes that had been removed in earlier rulemakings, involving the removal of special provisions A6, A3 and A51 from a number of UN entries. There is also a lengthy list of other changes to the special provision assignments, mainly stemming from the UN Model Regulations. A number of amendments have been made in column (10) of HMT, which relates to vessel stowage and segregation requirements. One significant change involves the stowage codes assigned to explosive articles to allow under-deck stowage when they are not in closed cargo transport units. The Institute of Makers of Explosives (IME) commented that US ports require explosives to be containerised regardless of whether they are stowed on

“THE HM-215O RULEMAKING IS DESIGNED TO KEEP THE US ALIGNED WITH INTERNATIONAL REGLATIONS, INSOFAR AS IS DEEMED DESIRABLE”

or under deck; however, PHMSA says the change will allow the shipment of large and robust articles that may be too large to fit in a standard container but are instead crated appropriately. The change does not open up the possibility of breakbulk stowage. A new stowage provision 154 has been adopted and assigned to NA 0124, NA 0494, UN 0124 and UN 0494 Jet perforating guns. This allows their stowage in accordance with the provisions of packing instruction US 1 in §173.62. A large number of other changes to the stowage and segregation codes have been made to align with Amendment 39-19 of the IMDG Code. Likewise, 1-dodecene has been removed from the list of marine pollutants in Appendix B to §172.101. SPECIAL PROVISIONS There are many significant amendments to the special provisions in §172.102, as follows. 132 is revised to reflect changes to the Manual of Tests and Criteria relating to UN 2071 Ammonium nitrate-based fertiliser, Class 9. There are parallel amendments elsewhere, notably in terms of the assignment of packing groups. »

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150 is similarly revised to clarify that UN 2067 may only be used for ammonium nitrate-based fertilisers. 238, applicable to neutron radiation detectors containing boron trifluoride, is revised to align with special provision 373 in the UN Model Regulations. 325 is adopted from the UN Model Regulations to help shippers identify the classification of non-fissile or fissile-excepted uranium hexafluoride. 369, applicable to UN 3507 Uranium hexafluoride, radioactive material, excepted package, is amended for editorial clarity. 383, which specifies a size limit for metal drums used to transport certain high-viscosity flammable liquids, is removed, since amendments elsewhere now permit additional packaging options. 387 and 421 are revised to extend the sunset date for provisions concerning the transport of polymerising substances from 2 January 2019 to 2 January 2023. 388 is adopted from the UN Model Regulations and contains requirements for lithium batteries containing both primary lithium metal cells and rechargeable lithium ion cells that are not designed to be externally charged and which the existing provisions for lithium batteries do not adequately address. 389 is added to expand on the provisions for the new UN 3536 entry for lithium batteries installed in cargo transport units. It includes provisions that were formerly contained in special permits.

391 is added to prohibit certain high-hazard materials from being covered by the new entries for articles containing dangerous goods. 422 is revised to remove the transition period for the use of plain Class 9 labels with lithium batteries. A56 is revised to align with the requirements in special provision A78 in the ICAO Technical Instructions for radioactive materials with subsidiary hazards. A105 is revised to require approval for the transport by air of machinery or apparatus containing hazardous materials in excess of the limits set down in §173.222. B136 is added to authorise non-specification closed bulk bins for certain solid substances, including copra, seed cake, fish meal, aluminium silicon powder and some ammonium nitrate-based fertilisers. TP10, assigned to UN 1744, is revised to authorise a three-month extension for the transport of bromine portable tanks to perform the next required liner test. W32 is deleted, following discussions by the International Maritime Organisation (IMO) on the use of hermetically sealed non-bulk packagings; W31 is assigned in its place. DESCRIPTIONS AND MARKS PHMSA has revised §172.203(o)(2) to require that the words ‘TEMPERATURE CONTROLLED’ be added, where appropriate, to the proper shipping name for substances of Divisions 4.1 and 5.2, if not already indicated in HMT. PHMSA points out that this applies to

the entries assigned to special provision 387, not just to those identified as polymerising substances in their prior shipping names. On the other hand, it bowed to pressure not to make a similar change relating to the use of the word ‘SAMPLE’ as this would cause disharmony with the IMDG Code. PHMSA did, though, add polymerising substances to the list of the types of materials to which the additional documentation requirements in §172.203(o) apply. Consistent with changes to the IMDG Code and ICAO Technical Instructions, PHMSA has removed the requirements in §172.407(c)(1) that the width of the solid line forming the inner border of labels must be at least 2 mm; in addition, the width of the solid line inner border, currently specified as 5 mm, will now be “approximately 5 mm”. The general placarding requirements for bulk packagings specify that they must be placarded on either side and at each end; this is not practical in the case of flexible bulk containers so HMR will follow the IMDG Code in requiring them to be placarded on two opposite sides. PACKAGING ISSUES Earlier harmonisation rulemakings (HM-215H and HM-215N) removed packing group assignments for organic peroxides, self-reactive substances, explosives and specific articles containing dangerous goods. The newly adopted UN entries for articles containing dangerous goods are also not assigned a packing group. This has had the unintended consequence of also removing those substances and articles from the materials for which the ‘material of trade’ (MOT) exception can be used. To clear this up, PHMSA has added a new §173.6(a)(7) to clarify that materials and articles for which column (5) in HMT does not indicate a packing group are authorised

 LEFT: PROVISIONS FOR BATTERIES IN CTUS HAVE NOW BEEN FORMALISED

OPPOSITE: PHMSA HAS PICKED UP ON CHANGES IN THE IMDG CODE RELATING TO STOWAGE AND SEGREGATION

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to use the MOT exception as applicable. PHMSA has picked up on recent changes to the IMDG Code relating to the size limit for packagings used for viscous flammable liquids, which recognise that the low flow rate and lower level of solvent vapours mean that such substances (paints, enamels, varnishes and the like) present a lower fire risk than non-flammable viscous liquids. The maximum packaging capacity is therefore increased from 30 litres (vessel) and 100 litres (road and rail) to 450 litres. For consistency with the ICAO Technical Instructions, the limits for air transport remain at 30 litres (passenger aircraft) and 100 litres (cargo aircraft). The IMDG Code has also amended the packaging requirements for shipments of stabilised fish meal and fish scrap and PHMSA is following suit. Previously, such substances had to be stabilised by ethoxyquin but research has indicated that two specific alternatives, butylated hydroxytoluene and tocopherol-based antioxidant are also

used and that contact with other electrically conductive materials must be prevented. During the adoption of the new entries for articles containing dangerous goods, PHMSA noted that the quantity limits for dangerous goods in equipment, machinery or apparatus in §173.222 were inconsistent with some international standards, being aligned with the ICAO Technical Instructions, while the UN Model Regulations and IMDG Code authorise up to the limited quantity amount. PHMSA has now resolved the problem, which dates back to 1999, and has increased the quantity limits for liquids and solids (but not gases) in transport other than by air. For consistency with the UN Model Regulations, PHMSA has revised §173.224(b)(4) to authorise the transport of self-reactive substances packed in accordance with packing method OP8 (non-bulk packaging authorisation) where transport in intermediate bulk containers (IBCs) or portable tanks is permitted in accordance with § 173.225, provided that the

effective. In the final rule, the required level of ethoxyquin has been reduced and reference to the other two antioxidants has been included. The requirements in §173.159 applicable to the transport of wet batteries have been amended to specify that electrically nonconductive packaging materials must be

control and emergency temperatures specified in the instructions are complied with. A similar change is made in §173.225(e) and (g) relating to organic peroxides. A new §173.232 contains requirements for the new entries for articles containing dangerous goods of various hazard classes »

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and divisions. It requires packing at the PG II performance level, although non-specification packaging and unpackaged or palletised transport is also authorised, providing that the hazardous materials are afforded equivalent protection by the nature of the article in which they are contained. OTHER HARMONISATION ISSUES PHMSA has amended §174.50, which deals with the movement of non-conforming or leaking packages (including bulk packaging such as tank cars) by rail, including the possibility of securing one-time movement approvals (OTMAs). Transport Canada has a similar programme, offering Temporary Certificates to deal with the same situation. Until now, operators moving non-conforming tank cars from Canada to or through the US would have to obtain both an OTMA and a Temporary Certificate. PHMSA has now recognised Temporary Certificates issued by Transport Canada as equivalent to OTMAs,

 VARIOUS PROVISIONS ON THE TRANSPORT OF CLASS 9 BY AIR HAVE BEEN REVISED

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removing the need to duplicate the process. Transport Canada has indicated that it may do the same in reverse in a future rulemaking. PHMSA has made several revisions to §175.10, which details the specifies the conditions under which passengers, crew members, or an operator may carry hazardous materials on board an aircraft. These changes are consistent with those in the latest edition of the ICAO Technical Instructions and cover issues such as lighters powered by lithium batteries, medical devices containing radioactive materials, non-spillable batteries, the carriage of lithium batterypowered wheelchairs and other mobility aids, portable electronic devices in checked baggage, electronic smoking devices and ‘smart’ baggage. Other amendments for harmonisation with the Technical Instructions are made in §175.33, which covers shipping papers and

a position that would allow interaction with, packages or overpacks containing other hazardous materials in Class 1 (other than Division 1.4S), Division 2.1, Class 3, Division 4.1 and Division 5.1. In a similar manner, there are a number of amendments in §176.84 on the stowage and segregation of dangerous goods on vessels, based on changes to the IMDG Code. There are also several changes to the references to ISO standards, mostly relating to gas cylinders and multiple-element gas containers (MEGCs). PHMSA has followed up on changes in the UN Model Regulations on the test procedures for non-bulk packagings and packages, including the requirement to include the water temperature used in the hydraulic pressure test for plastics packagings (§178.601(l)(2)(viii)) and for rigid plastics and composite IBCs (§178.801(l)(2)(viii)).

the notification of the pilot-in-command (NOTOC). These also largely refer to lithium batteries. Similarly, there is a new requirement that packages and overpacks containing lithium cells and batteries that bear the Class 9 label must not be stowed on an aircraft next to, in contact with, or in

The full text of HM-215O, together with PHMSA’s comments on the amendments adopted, can be found in the Federal Register at www.federalregister.gov/ documents/2020/05/11/2020-06205/hazardousmaterials-harmonization-with-internationalstandards.

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THE INTRODUCTION OF the Chemical Facilities Anti-Terrorism Standards (CFATS) in 2007 by the US Department of Homeland Security (DHS) was one strand of a wide range of security legislation developed in the wake of terrorist attacks on the US. It was initially regarded with some suspicion by companies operating in the chemical supply chain but, over the years since, it has become regarded as a very useful piece of legislation that provides a clear framework for operators to protect their assets. So there was no little concern within the US chemical industry when the deadline

As it happened, Congress wavered in late March, agreeing a three-month extension to the programme, although this only served to push further back any meaningful reauthorisation. At the time, Eric R Byer, president/CEO of the National Association of Chemical Distributors (NACD), said: “CFATS is vital to ensuring the chemical industry and regulators work together to keep our nation’s chemical facilities secured against potential acts of terrorism, and its continuation is a critical component of the broader US national security strategy. While

CUTTING IT FINE As the revised 23 July deadline approached, lobbying picked up again but the process went to the wire, and it was only on 20 July that the House of Representatives passed the necessary legislation. Byer said at the time: “NACD is thrilled the House unanimously passed legislation reauthorising CFATS for another three years. Since 2007, this programme has been woven into the fabric of the chemical distribution industry, ensuring high-risk facilities work with DHS regulators to put measures in place that protect against potential acts of terrorism. “Over the years, NACD and its member companies have worked tirelessly not only to implement CFATS, but also to ensure it remains a fixture in the United States’ national security strategy. The programme has given chemical distributors the certainty needed to make important security investments at their facilities, which is both good for business and an important component in keeping our communities secure.” Indeed, the legislation was signed into law by President Trump only on 22 July. Byer’s words were echoed by Kathryn Clay, president of the International Liquid Terminals Association (ILTA), who said: “CFATS plays a critical role in maintaining our nation’s security, and ILTA’s members appreciate the diligence with which the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) administers this vital programme. Maintaining the security of our nation’s chemical facilities is a critical mission, and ILTA encourages future Congresses to consider even longer-term reauthorisations for the CFATS programme. “ILTA members and CISA share the common goal of ensuring chemical facility security by guarding against potential terrorist threats. CFATS works to set appropriate standards for all high-risk chemical facilities, helping to

for reauthorising the CFATS programme in April 2020 crept closer. The current US administration is averse to imposing an unnecessary regulatory burden on industry and representative trade associations had to lobby hard to try and persuade Congress to reauthorise CFATS.

NACD welcomes a CFATS extension of three months and five days to get us beyond the April 18 programme deadline, our industry needs a much longer programme authorisation to ensure both regulators and industry leaders alike have the certainty needed to administer this programme.”

keep facilities and communities safer. ILTA looks forward to continued work with CISA to ensure that these standards are based on the best science available related to the physical properties of covered chemicals.” Attention will now turn to 2023, when further reauthorisation will be required.

DOWN TO THE WIRE CFATS • ACHIEVING HIGH LEVELS OF SECURITY AT CHEMICAL FACILITIES NEEDS INDUSTRY AND GOVERNMENT TO WORK TOGETHER, SOMETHING THAT CONGRESS HAS STRUGGLED WITH

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BULK BARGAIN RAIL • PHMSA HAS RECENTLY ISSUED TWO RULEMAKING ANNOUNCEMENTS THAT WILL BE OF VALUE TO THOSE SHIPPING OIL AND LNG IN BULK BY RAIL WITHIN THE US

in rail tank cars, whereas the rulemaking as proposed would have covered all Class 3 material transported by any mode in both bulk and packaged form.

THE US PIPELINE and Hazardous Materials Safety Administration (PHMSA) has been rather quiet this year in terms of new rulemakings, and with an election in the offing in November there is little chance of any significant new activity in the near future. It has, however, issued two regulatory notices over the past few months of interest to those involved in the movement of flammable liquids in bulk by rail, both of which should benefit industry. The first of these was actually the withdrawal of a proposed rulemaking. PHMSA had,

involved in the transport of crude oil derived from oil shales and shale oil, in the wake of the fatal accident in Lac-Mégantic, Quebec in July 2013 and other incidents involving the transport of crude oil from the Bakken fields, which lie largely in Montana and North Dakota but also across the border in Canada. One concern was that the entrained natural gas in the oil could lead to an increase in vapour pressure and make the oil more susceptible to explosion in the event of an accident. On 18 January 2017, PHMSA issued an advanced notice of proposed rulemaking

TEST THE THEORY In the face of these and other comments, the US Department of Transportation (DOT) and Transport Canada engaged Sandia National Laboratories to conduct a study to better understand the risks associated with the transport of tight oil by rail. Part of that study involved an analysis of physical, chemical and combustion characteristics of a range of North American crude oils, with differing composition and vapour pressure. Sandia’s study concluded that, despite the wide variation in vapour pressure, all the crude oils tested had very similar calculated thermal hazard distances with respect to pool fire and fireball combustion. Furthermore, they were also found to have thermal hazard

in concert with its colleagues in Transport Canada, started to look at the safety issues

(ANPRM) seeking comments on its proposal to place a limit on vapour pressure for unrefined petroleum crude oil and other Class 3 flammable liquids during transport. Many in industry saw this as an example of ‘regulatory creep’: the problem the rulemaking sought to address related to the transport of crude oil

parameters consistent with the known thermal parameters of other alkane-based hydrocarbon liquids, some of which had a higher vapour pressure than those shown by the Bakken crude. Based on these data points, the Sandia Study concluded that vapour pressure is not

 PHMSA IS KEEN TO BALANCE SAFETY WITH THE NEED TO MOVE LIQUIDS IN BULK BY RAIL

HCB MONTHLY | SEPTEMBER 2020

REGULATIONS 87

a statistically significant factor in affecting the thermal hazard posed by pool fire and fireball events that might occur during crude oil train derailment scenarios. Therefore, placing an upper limit on the vapour pressure of crude oils transported by rail would have no impact on the severity of pool fire or fireball scenarios. In light of this unequivocal conclusion by Sandia, on 20 May 2020 PHMSA withdrew the ANPRM. It also noted that its decision likely pre-empts non-Federal laws on the same issue. Both North Dakota and Washington already have laws in place setting vapour pressure limits for crude oil and a number of others have been considering similar rules. PHMSA invites anyone affected by those rules to apply for a determination that the law is pre-empted.

LNG BY RAIL The second rulemaking relates to the transport of LNG in bulk in rail tank cars. PHMSA issued a final rule on 24 July this year under docket HM-264, with an effective date of 24 August. In the final rule, PHMSA authorises the transport of LNG by rail in DOT-113C120W tank cars, which it says have an established safety record in cryogenic service, enhanced with an outer tank that is thicker and has greater puncture resistance to provide additional crashworthiness. The rule also calls for operational controls in the form of enhanced braking requirements, remote monitoring and route analysis. PHMSA notes that it regards the transport of LNG (‘Methane, refrigerated liquid’ according to the Hazardous Materials Regulations) by rail

in bulk as a safe alternative to road transport. Until the publication of the final rule, this was only permitted on an ad hoc basis via special permits or approval by the Federal Railroad Administration (FRA). Recent expansion in US natural gas production has made it necessary to formulate a permanent provision. The rule also satisfies a directive in Executive Order 13868, issued on 19 April 2019, to “treat LNG the same as other cryogenic liquids and permit LNG to be transported in approved rail tank cars”. Further detail on the specific technical requirements for tank cars for LNG service can be found in the final rule, published in the Federal Register and available at www.federalregister.gov/ documents/2020/07/24/2020-13604/hazardousmaterials-liquefied-natural-gas-by-rail.

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88 BACK PAGE

NOT OTHERWISE SPECIFIED BEWARE OF THE WATER Here on the Back Page we’re not expecting to go on holiday any time soon. And when we do, we’re unlikely to be going to Las Vegas, though we understand that plenty of people enjoy it. However, we have a word of caution for them: be careful if you’re thinking of a dip in the hotel pool. We came across a warning, delivered in Twitter form by a specialist in biological and chemical warfare. Right at the end of the 20th century, the chap – named Dan Kaszeta – took a call from a federal agent looking to have something tested. He passed the enquiry on to a lab that tested the sample along with two controls: local tap water and water taken from a swimming pool at “a major Vegas hotel”. After analysis, the suspicious sample turned out to be relatively harmless and the tap water was fine. But the pool water… The analysis showed that the pool water had “alarming” levels of giardia and cryptosporidium, both of which can cause diarrhoea and are resistant to chlorine. It also had metabolites from human urine, faecal matter (human, mammalian and avian), campylobacter, adenoviruses and trace amounts of cocaine, ketamine and several different opiates. Samples taken from other hotel pools showed similar results – indeed, Kaszeta said, water taken from the Potomac River was cleaner.

ARRIVAL ANNOUNCED It’s not just swimming in pools that can be dangerous but cleaning them too. In Massachusetts at the end of June, emergency responders were called to a neighbourhood in Forsyth after reports of an explosion. It emerged that a young couple, who had only recently moved to the area, were cleaning their swimming pool. They had some pool shock – an oxidiser, often containing chlorine, used to keep the water clean – and found some more that the previous homeowners had left behind. Deciding to use it up, the young man mixed the two brands and started feeding it into the pool. Once wetted, it started to smoke and bubble, and then the bucket with the rest of the shock exploded. The man was hospitalised for checks. “All the neighbours know us now,” his girlfriend said, “so it should be interesting meeting them after this.”

Apparently, swimming pools are the source of almost half the illnesses resulting from faecal-oral transmission, but on the other hand most people who use pools don’t get ill. So the best advice, if you use the hotel pool, is this: don’t think about it, and keep your mouth shut.

very intoxicated. In order to prevent potential contamination, the police wrapped the drunk in a spare hazmat suit and pulled him out. Once slightly less drunk, the perpetrator said he had been out partying with his brother and was aware he was incapable – he just thought he’d got into his brother’s car.

HCB MONTHLY | SEPTEMBER 2020

DRESSED FOR THE PARTY Last month we reported on people taking public transport in London wearing full hazmat suits during the Covid-19 pandemic. We now hear that such PPE is being used for other purposes. Or at least it was on one occasion. In Forsyth, Georgia back in June police were called to the Circle K, where a drunk had got into someone else’s car and was refusing to get out. While there he vomited all over himself; police said he was also incoherent – and clearly very,

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HCB Magazine August/September 2020

Articles inside

Changes to US rail rules

CFATS reauthorisation passes

PHMSA catches up with the world

CSB applauds Airgas for action

NCB has ideas on container fires

Conference diary

Incident Log Chart a course

Labeline takes roadshow online

Lion discusses online training

Online training from DGOT

IATA introduces CBT-A

News bulletin – storage terminals

Stolt-Nielsen sails on through

News bulletin – tanker shipping

Schulte adds LNG training

New ideas in ship propulsion

Blackmer gets rid of cavitation

Kirby sees demand slip

Vopak navigates the pandemic

Keith Jackson’s 34 years at Inter

Building export capacity in the US

CSafe hooks up with Cloudleaf

Nexxiot pairs with Swisscom

BNEW’s insights on digitisation

Join the dots with ePIcenter

VTG adds more sensors

News bulletin – tanks and logistics

News bulletin – chemical distribution

Highway Transport adds depot

Digital Container Summit is coming

Bertschi shows the way

Twinstar innovates in chassis

Tank leasing the specialty way

Univar streamlines for success

Brenntag opens Ohio location

Letter from the Editor

View from the Porch Swing

VOLUME 41 • NUMBER

DHL invests in pharma logistics

30 Years Ago

Learning by Training Business in crisis

NACD members help the community

Covid’s impact on Suttons