HCB Magazine January 2021

M O N T H LY J A N U A R Y

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CROSSING OVER ENERGY TRANSITION FORCES CHANGES ON LOGISTICS SAFETY IN TANK CONTAINER OPERATIONS SHIPPING NEW FUELS TERMINALLING FOR TOMORROW

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I N F O R M AT I O N

D A N G E R O U S

S O U R C E

G O O D S

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T H E

I N T E R N AT I O N A L

P R O F E S S I O N A L

S I N C E

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EDITOR’S LETTER

It is traditional, as the year turns, for columns such as this to

So it seems likely that the pandemic will continue to

look ahead and try to predict how business will fare over the coming

dominate the economic and business environment over

twelve months. Traditional, perhaps, but in this increasingly

at least the first half of 2021. Any return to ‘normal’ –

unpredictable and volatile world, possibly futile. This time last

whatever that will look like – is not going to be here any

year, the novel Coronavirus was a small news item in China and

time soon, so we need to learn the lessons of 2020 if we

we could not have foreseen the extent to which this biggest of

are to be able to continue to operate and be profitable.

all Black Swan events would affect all our lives.

If the Covid-19 pandemic was unforeseen by most of us, it was

The logistics business has been a crucial element in coping under the pandemic and, with its aptitude for

not unforeseeable – and there had been warnings: SARS, MERS,

adapting readily to changing circumstances, the sector’s

bird flu and other viral outbreaks had been headed off before they

expertise has prevented most of us from going cold or

became overwhelming, but there were plenty of alarms issued

hungry and allowed manufacturing industries to carry on

by epidemiologists that the big one was coming for us. Those

getting their products to their customers. Other sectors

warnings failed to reach the general public and, judging by the

have been less fortunate, particularly the hospitality

often confused and confusing responses of the authorities, had

and entertainment businesses, hotels, airlines and

been ignored by many governments.

event organisers.

There are those who say that the increasingly strict measures

That the rest of us have been able to carry on fairly

imposed by authorities in an attempt to slow the spread of the

much as usual has been down to one big factor: digitisation.

virus are disproportionate and are hurting more people more

We work from home, communicating by email, Skype,

acutely than the virus itself – and I think there is some merit

Zoom or whatever, and order our purchases online.

in that argument, especially as the mortality rate thus far has

Digitised systems have also enabled logistics companies

been low compared to some other pandemics (most notably

to operate more efficiently and respond quickly to their

the ‘Spanish flu’ outbreak in 1918/19, which killed upwards of

customers’ changing needs.

50 million people around the world). Nor would I argue that,

The pressure for sustainability, decarbonisation and

for the sake of the planet, it would be no bad thing if there were

a move to more circular economies has not gone away.

a significant cull of the human race – I just don’t want to be one

The pandemic response has forced us into a less energy-

of those to die ahead of my time.

intensive lifestyle, reducing fuel demand; perhaps that

It is also worth remembering that it was the second wave of the Spanish flu that did most of the damage; as we now seem

is a step on the road to achieving the sustainability goals being demanded.

to be in the second wave of Covid-19, with its new mutations, we may not yet have seen the worst of it.

Peter Mackay

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CONTENTS VOLUME 42

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UP FRONT Letter from the editor 30 Years Ago Learning by Training View from the Porch Swing TANKS & LOGISTICS See-through supply chain Tyczka Gase digitises rail tanks The third wave Nexxiot upgrades gateway device New for you Hoyer develops Chempark centre Big red H Essers continues to grow A role for rail BTT provides the links ports need News bulletin – tanks and logistics TANKER SHIPPING Bigger and better BRS looks at the chemship market The great LEAP forward Making plans for methanol fuel Green and blue Planning an ammonia chain Size is everything Introducing BW Epic Kosan

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Age is no barrier Stena stands up for older ships News bulletin – tanker shipping STORAGE TERMINALS Over the worst Product flows again in the US Gulf action Adding to US export capacity A friend indeed TSA helps operators deal with the crisis News bulletin – storage terminals

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

INDUSTRIAL PACKAGING Big in Brazil Schütz expands reconditioning capacity News bulletin – industrial packaging COURSES & CONFERENCES Conference diary New for 2021 GPCA plans a special Forum SAFETY Incident Log Cut the claims ITCO looks at tank container safety Brake in proceedings

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NTSB’s learnings from Hyndman derailment 45 In and out club Cefic’s guidance on butadiene transfer 46 Best against the rest Hoyer’s approach to benchmarking 47 REGULATIONS Catching up Joint Meeting starts work on 2023 texts The big roundup PHMSA responds to petitions Float on Marpol recognises persistent floaters News bulletin – regulations Calendar of regulatory meetings

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BACK PAGE Not otherwise specified

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NEXT MONTH Developments in chemical tankers Focus on drum manufacturing What’s new in labelling and compliance Where the regulations started

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30 YEARS AGO A LOOK BACK AT JANUARY 1991

January 1991 had a big impact on the dangerous goods transport business. After some 15 years in preparation, new rules arrived on packaging specifications, along with the UN specification marking, designed to make it easier for cargo acceptance and enforcement personnel to see if dangerous goods packaging was up to scratch.

HCB offered some useful examples of these new UN markings, along with several advertisements from packaging manufacturers eager to show that they were up to speed with the requirements.

The new provisions arrived during what HCB described as “a lean market” for packaging manufacturers, with the slowdown in client industries following the 1988/89 economic contraction, together with high inflation in some countries, putting pressure both on sales volumes and margins. Perhaps not surprisingly, then, the drum reconditioning sector was doing pretty well. HCB’s January 1991 number included news from an increasing number of companies getting involved in the business and the drive to set some standards.

HCB’s founding editor, Mike Corkhill, still at his desk, had this to say: “The enforcement authorities have nailed their colours firmly to the mast. A new dangerous goods regime is in place which will be

yet received enough ratifications to enter into force, some territories had decided to go ahead and implement it in any case, not least since its requirements were already bound up in the latest revision to the IMDG Code.

Another important but upcoming change was decided by IMO’s Bulk Chemicals Sub-committee, which had met in London in October 1990.

One item on its very busy schedule was agreement on provisions for vapour emissions control systems, a complex issue for maritime regulators since it involves coordination with shoreside operations.

There were many technical difficulties to overcome, though thankfully OCIMF was already on the case and, it was stressed, there was at that time no intention to make the provisions mandatory. Rather, were it the case that local legislation required such controls, then the provisions developed by IMO would offer a standard to measure up to.

Elsewhere, we reported that bulk liquids storage terminals were doing fairly well, despite the slowdown in the chemical industry and the effects of the (first) Gulf War. “The desire to hoard in times of uncertainty has helped,” we said then. The same could be said for the current situation, not least since ‘uncertainty’ and ‘volatility’

rigorously enforced and it behoves shippers and carriers to ensure that they are familiar with the new requirements.” That may have been the case (then and now), though there is still plenty of evidence to show that some shippers are failing to discharge their responsibilities.

January also saw the arrival of Amendment 25 to the IMDG Code which, for the first time, covered marine pollutant hazards. Although Annex III of Marpol, dealing with packaged dangerous goods, had not

are words that are featuring increasingly often in our pages.

Indeed, we have often remarked that storage terminals offer a comparatively reliable cash flow in good times and bad – which has attracted investment funds into the business – though the roundup of construction and expansion activity in the January 1991 issue did include many company names that will be unfamiliar to anyone who has joined the industry in the past five or ten years.

HCB MONTHLY | JANUARY 2021

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LEARNING BY TRAINING

By Arend van Campen

NATURE STRIKES BACK

Is your business thriving or suffering due to the Covid-19 restrictions?

While the world seems to have spun out of control because regulators try to regulate a virus, collateral damage can be felt everywhere. Imagine you are a cruise ship owner or operator, a ship’s cook or crew member? Think about people who lost their job, their businesses, a family restaurant that was founded by parents, a cheese factory that produces cheese, but abandoned by hotels, because they are closed until further notice.

When one starts to think in systems, you can easily observe that a domino effect is unfolding before your eyes. This includes our industry: less demand, fewer buyers, less money to spend, less transport, less storage, less consumption, less profit and so on.

A saying I often us is: “a wise man comes prepared”, so this column is about early recognition of risk, proper preparation and planning to tighten your belts because without being pessimistic - I am a realist - we are in for a rough ride. Even if a vaccine is administered into a vast number of people, and the virus has been ‘regulated’, a fast recovery of the economy can’t be expected anytime soon. Best is to cut costs now, become lean and mean,

to keep warm, teach yourself survival techniques and focus on loving those people who love you. You’ll be fine when you have a feeling that you can do with less. It dissolves stress and thus will boost your immune system.

Fritjof Capra, the physicist, sees the virus as a messenger bringing us a warning. The virus came from somewhere, perhaps it escaped from a bio-weapon laboratory or it jumped from a bat into a Chinese wok, it doesn’t matter. Fact is it is here and will not go away, even by more devastating lockdowns that almost destroyed the usual life we all enjoyed in freedom.

I mentioned it before: a virus can’t be controlled by political regulation or police brutality. We either choose to live without fear or we will die a dreadful death. In a society ruled by fearmongering politicians or virologists, life becomes unliveable. This is harmful to us all.

So what does a collective cognitive dissonance do to our decision making ability? It becomes irrational, scientific facts or arguments are contemptuously rejected. This leaves us, you and me, inside of some kind of void, disrupting safety, security and the ability to rebuild our businesses, companies and life. In such a world, life has become

but also use your creativity to adjust, adapt and overcome these difficult times.

A word of advice: focus on the stuff you truly need, look at how our ancestors survived with a lot less. Don’t depend on technology too much, learn how to live from as little as possible, don’t trade in your car for a newer one just yet, this one is still running and paid for, stock up to have enough food in your cellar, chop wood

painful, a road to serfdom.

But the World Economic Forum has the solution: ‘The Great Reset’.

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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FROM THE PORCH SWING WHEW!

Did you hear about the black pool in Blackpool? About how a huge (an huge) crude oil spill contaminated much of the coastal environment in and around the seaside resort

Did you hear about the nitro that went boom in Nitro? About how on a frigid morning in Nitro, West Virginia, USA, a truck carrying medicinal nitroglycerine in alcohol blew up while crossing a set of railroad tracks?

Chemists say that at very cold temperature nitroglycerine can drop out of solution and become shock-sensitive. Of course you didn’t.

Due to thoroughly excellent Dangerous Goods training in package cushioning requirements, that situation never happened. Even when briefly out of solution, the shock-sensitive nitroglycerine inside the packages was well protected, and the shock of going over the railroad tracks was absorbed.

Did you hear about the paint spill in the Painted Desert? About how a truck driver reported to the television news that she “was driving up a long grade, and I heard some noise from the back. Then, some clanging and sliding, and all of a sudden the truck jumped

town of Blackpool in Lancashire, UK? Of course you didn’t. Due to thoroughly excellent Dangerous Goods training in emergency response information provision requirements, that situation never happened. The oil was contained by properly trained and informed personnel, immediately upon beginning to leak.

ahead like the load was gone. I stopped immediately, but it was too late.” About how the TV newscaster said “hundreds of gallons of paint spilled out of the back of truck, leaving multi-colored streaks down the hillside, literally painting the Painted Desert”. Of course you didn’t. Due to thoroughly excellent

What a year! 2020 was quite something different than the usual, wasn’t it? As I sit on my porch swing and watch fireworks celebrate the arrival of the midnight between December 31st and January 1st, I’m thinking about how so many people are so happy because a year filled with bad news is over. And I, too, hated so much of 2020’s bad news. But, as often happens when pondering takes place on my porch swing, thoughts went elsewhere.

Elsewhere in this case refers to good news in 2020. “What”, you might ask, “there was good news in 2020?”. Well, you didn’t hear about it, but there was. As an old friend used to say before explaining something, “now lemme tell ya…”

HCB MONTHLY | JANUARY 2021

Dangerous Goods training in load securement requirements, that situation never happened.

Even at a steep angle, the pallets of paint were blocked and braced into position, couldn’t move, and never slammed into the back door to force it open, even up a very steep grade.

Did you hear about the petrel chicks killed by petrol? About how a cliff full of nests of an endangered species of petrel was inundated with petrol (gasoline)? The driver came around a curve, noticed liquid in the road behind him, and pulled over to investigate.

Unfortunately, the improperly closed valve continued to leak petrol down the cliffside, killing chicks, and likely rendering any unhatched eggs non-viable. Of course you didn’t. Due to thoroughly excellent Dang Good training in valve closure and loading requirements, that situation never happened.

The valve was securely closed when the tank truck was filled, AND, it was re-checked by the driver for proper closure before the truck left the tank farm property.

Did you hear about the sulfur burns suffered in Sulphur Springs? About how, near the iconic Sulphur Springs tower in the Sulphur Springs neighborhood of Tampa, Florida, USA, ironically a local policeman suffered severe thermal burns and had to be taken to the hospital.

A spilled truckload of solidifying sulfur was still hundreds of degrees in temperature, when the cop tried to kick some of it out of the lane of traffic he wanted to re-open. Of course you didn’t. Due to thoroughly excellent DG training in tanker marking requirements, such as the word “HOT” inside a diamond and a thermometer inside a triangle, that situation never happened. The tank did communicate the heat of the sulphur, and so the cop knew not to kick it.

Did you hear about the BLEVE on Levi’s Levee? About how a railcar of what the railroad reported was “refrigerated flammable gas” unexpectedly blew sky high while crossing Levi’s Levee early one morning. The train had not derailed nor been in an accident. The local HazMat team suggested the gas was in a railcar made of a metal the gas gradually reacts with, causing a huge pressure buildup

UP FRONT 07

in the railcar, which BLEVE’d (boiling liquid expanding vapor explosion) when the railcar finally ruptured. Of course you didn’t. Due to thoroughly excellent Hazardous Materials training in packaging compatibility requirements, a different, and lined railcar was selected for the shipment, so that situation never happened. (BTW, we do know of a similar situation that did happen several years ago: Ethyl Chloride gas in an aluminum/ aluminium cylinder www.youtube.com/ watch?v=9PgpHFMKoLE) Did you hear about the toxic cloud in St Cloud? About how near Minneapolis, MN, a minor spill of a chemical powder from an imported box container caused a major emergency? About how, after the majority of the spill had been shoveled or swept up, a hose was used to wash down the loading dock, liberating a huge cloud of irritating and toxic gas, sending dozens of people from nearby businesses to hospitals and clinics? Of course you didn’t. Due to thoroughly excellent Hazardous Materials training in classification requirements, especially international differences, that situation never happened.

The warning of reaction with water to release toxic gas was accomplished in other ways, not necessarily by 4.3 label. Thus, a simple umbrella sticker and the words “Keep Dry” protected the health of dozens of people.

Did you hear about the radioactivity outside Radio City Music Hall? About how early in the year four city blocks in New York City were cordoned off, with no one allowed in or out?

Teams in HazMat suits rushed in, but for a long time no one said what was going on.

About how some suspected terrorism at the venerable Radio City Music Hall, but a news helicopter finally spotted a truck on its side with a radioactive symbol on a “sign” stuck to its cargo compartment? Of course you didn’t.

Due to excellently thorough HazMat training in

dozen. Just think of it as 12 blows before the point is finally hammered home. ;-)

radioactive route restriction requirements, that situation never happened. The truck went a different route, avoided that accident, and didn’t risk exposing such a high density of people.

milk, but how about spilled beer?) About how in one of the century’s great coincidences, outside the village of Beer, in Devon, England, a truckload of beer suffered a catastrophe, when hundreds of bottles ended up on the motorway? Okay, okay, I do know that Alcoholic Beverages is

Hang in there! Two thirds done on my list. Of course I couldn’t stop until I’d listed a full

Did you hear about batteries causing a crash in Battery Park? About how the USA’s NTSB (National Transportation Safety Board) released a preliminary report from a plane crash in Battery Park, NY? About how the pilot’s heroism in nearly, almost, but not quite landing the plane apparently saved a lot of evidence, which showed the cause to be a shipment of improperly packaged and prepared lithium batteries, which started the fire that eventually brought down the plane? Of course you didn’t.

Due to thoroughly excellent Dangerous Goods training in acceptance checklist requirements, that situation never happened. The inappropriately packaged lithium batteries were rejected when offered and later, after re-packing, shipped safely on a different flight.

Did you hear about the fish killed in Fishkill? About how emergency responders said they could have neutralized a spill of a deadly chemical spill, if they’d known what it was when a train derailed into the Fishkill Creek, a tributary of the Hudson River? About how, untreated though, the chemical killed thousands of fish which washed up on both banks, and floated downstream in huge masses, snarling boat traffic, preventing recreation use, and in general stinking to high heaven? Of course you didn’t. Due to CDGT (Certified Dangerous Goods Trainer) delivered Dangerous Goods training in Marine Pollutant marking and labeling and placarding requirements, that situation never happened.

The chemical was promptly neutralized, saving the lives of thousands of fish, and preventing the disruption of both commercial and recreational use of the waterway.

Did you hear about the beer spilled near Beer? (They say it’s no use crying over spilt

a Proper Shipping Name, but that for practical purposes beer meets an exception and is transported as if non-DG. And I also know that even if it happened (who knows, it may have), hundreds of unbroken bottles of beer on the roadway may have appeared to be manna from heaven to the lucky local residents who were happy to ‘clean up’ the ‘spill’. So, good news either way.

Did you hear about asbestos loose in Asbestos? About how near Asbestos, Quebec, in Canada, dozens of miles of road and adjacent land were contaminated with asbestos, which blew out of an uncovered dump truck which was hauling remediated asbestos insulation from a historic building to a hazardous waste disposal facility? About how municipal officials said at least 10 different accounts of large amounts of strewn asbestos were been reported to them, and how the remediation costs for the wind-blown asbestos were likely to be astronomical?

Of course you didn’t. Due to thorough and excellent Dang Good training (yes, of course, if it was thorough and excellent then the Dangerous Goods training was in fact “Dang Good” training) in bulk solids in open truck bed requirements, that incident was prevented. The loose load was properly covered, protected from the wind, and all the contents stayed inside, rather than being blown out across the countryside.

Yes, I’m glad 2020 is over, and I’m looking forward to a spectacularly good 2021 (my attitude is going to help make it that way), but for all the bad that happened in 2020 there was a lot of bad that didn’t happen. And that’s good. Thank you to all the HazMat and DG trainers and professionals that read HCB and this column. Please know that you have been doing your jobs quite well, and the world was a better place for it in 2020. Keep up the good work, and Happy New Year.

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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SEE-THROUGH SUPPLY CHAIN

DIGITISATION • TYCZKA GASE AND NEXXIOT DEMONSTRATE HOW BETTER DATA CAN IMPROVE THE ENVIRONMENTAL BENEFITS OF RAIL TRANSPORT AS WELL AS ITS SAFETY SPECIALIST GAS TRANSPORT firm Tyczka Gase is to equip its entire compressed gas tank car rail fleet with Globehopper modules from Nexxiot by the end of 2021. The move will provide Tyczka Gase’s customers with full transparency and traceability of their goods across the network, allowing improved planning.

Nexxiot has already fitted its modules to around half of the Tyczka Gase fleet, following a successful test phase that began in 2017.

“We have been investing heavily in the development and modernisation of our fleet for years. By taking the step of completely digitalising it, we are now meeting several challenges,” says Sven Kruck, authorised signatory at Tyczka Gase GmbH. “Firstly, we are interested in making our fleet and processes future-proof. Equipping the tank car fleet with IoT devices is part of our

 GREATER VISIBILITY BRINGS EFFICIENCIES AND HELPS THE MODAL SHIFT TO RAIL

HCB MONTHLY | JANUARY 2021

innovation and sustainability strategy. On the other hand, we are of course responding to the needs of our customers, who want more transparency during transport.”

“Rail plays a major role for us as an environmentally friendly mode of transport,” Kruck adds. “Its share of the transport mix will hopefully increase in the coming years, which is why we are already investing in efficient and modern equipment for our wagons. The solution from Nexxiot supports us and our clients in making data-driven decisions on transports and thus eliminates inefficient processes.”

SAFE AND SUSTAINABLE Bavaria-based Tyczka Group is a major supplier of LPG and distributor of industrial gases with operations in Germany, Austria and Poland. Around half of its transport volumes move by rail, bringing a need for know-how in planning and safety management. An important element in its decision to use the Nexxiot products is that Globehopper modules are

certified by IECEx and approved for use in ATEX IIC and IIIC areas.

“Transparency and safety for our customers - and of course their clients - has always been a major priority for us,” says Stefan Kalmund, CEO of Nexxiot. “Today, we are one of the leading providers worldwide whose hardware can demonstrate such comprehensive safety certification. This ensures that we can deliver real-time data to all parties who need visibility across their supply chains at any time. It does not matter whether the monitored object is moving through a chemical park or through no man’s land.”

In addition to the Globehopper modules, which are attached to the tank wagons, Nexxiot is also responsible for processing and evaluating the generated data for Tyczka Gase. Tyczka’s clients have access to the analyses via the Nexxiot intelligent cloud platform, but integration into in-house ERP systems is also possible.

Nexxiot’s IoT technology has suitable interfaces to enable highly efficient logistics processes.

Since Nexxiot was founded in 2015, Globehoppers have been installed on more than 100,000 rail freight cars, which have now travelled more than 4bn km. “Our goal is to achieve a 5 per cent reduction in global carbon dioxide emissions by shifting traffic from road to rail,” Kalmund explains. “To achieve this, we need innovation pioneers, such as Tyczka Gase, who are taking the bold step of digitising their fleet. Together we will make rail freight transport more attractive in the future.” www.nexxiot.com

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THE THIRD WAVE DIGITISATION • NEXXIOT HAS LAUNCHED THE THIRD GENERATION OF ITS GLOBEHOPPER GATEWAY DEVICE. LONG-TIME CUSTOMER VTG IS THE FIRST TO TAKE ADVANTAGE NEXXIOT HAS INTRODUCED a third generation of its industry-leading Globehopper gateway device, adding an updated Bluetooth lowenergy protocol, which helps when connecting sensors in a modular way. The revamped device also offers the option to connect via 4G and is 5G-ready, which will delivery greater accuracy in localising the unit, and has an upgraded ATEX certification.

VTG, one of Europe’s largest rail car leasing and rail logistics firms, has been equipping its entire fleet with Nexxiot equipment and will be the first to benefit from the upgrade. But it is not just VTG that will benefit: so will its customers and, it hopes, the world at large, if the increased visibility provided by a fully digitised fleet can help deliver the modal shift from road to rail.

Sven Wellbrook, COO of Europe and Chief Safety Officer at VTG, is a great believer in combined transport and in making rail properly aligned with his customers’ needs.

For example, rail can take bulky goods on the longest legs of their journey and road transport can take care of the last mile to the customer. This approach means that the best mode is used for the appropriate part of the journey and the net effect is more sustainable and predictable cargo operations. This is only possible when each rail wagon is equipped with technology to provide data on critical parameters.

To make rail more attractive to shippers, it must become more cost-effective as well as more predictable and dependable for

and can represent a viable alternative to other modes of transport. Furthermore, as the disruption related to the Covid-19 crisis has shown only too clearly, there is an absolute need for flexibility in the supply chain and for all resources to be used to their best abilities.

TOOLS FOR CHANGE Head of innovation at VTG, Hanno Schell, is leading the adoption of new technologies within the company. He understands the importance in delivering reliability, transparency and the tools that cargo owners desire. He also knows how fast to move to keep ahead of competitors inside the industry but also to ward off disruption from new players who try to take share of the market.

Schell explains: “Transparency on accurate mileage, impact events, quality of

goods and reliable arrival times (ETA) are all now essential to keep our customers happy.

This year’s pandemic has reminded us of just how critical rail freight’s role in the transportation system is as a whole. We seek every technological advantage to strengthen the position of rail, the eco-friendly mode of transportation, and develop a collaborative schedule for a sustainable mobility transition”.

Rail is unrivalled in its ability to satisfy ecological, economic and social demands, providing it is enabled through technology to address the needs of the market in these times of rapid social change. The Nexxiot technology consists of sensors, communication gateways, connectivity and an intelligent IoT cloud platform to create meaningful actions from the data.

“The new Globehopper 3 device delivers many benefits to the customer that until recently were unthinkable,” says Nexxiot CEO Stefan Kalmund. The devices are all zero maintenance with energy harvesting and low power consumption as standard. Nexxiot is dedicated to increasing transport efficiency by eliminating waste and, thereby, to reducing CO² emissions. www.nexxiot.com www.vtg.com

customers. If these elements are in focus the whole service will be even more sustainable

 THE UPGRADE TO GLOBEHOPPER UNITS WILL ENHANCE CONNECTIVITY AND IMPROVE INFORMATION FLOW

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NEW FOR YOU LOGISTICS • HOYER’S NEWEST FACILITY IN THE DORMAGEN CHEMPARK HIGHLIGHTS ITS EXPERTISE IN PROVIDING A RANGE OF CHEMICAL LOGISTICS SERVICES TWO YEARS IN the building, Hoyer’s new logistics centre at the Dormagen Chempark opened for business in June 2020, the result of

director of Supply Chain Solutions (SCS) in the Hoyer Group. “Extensive analyses, discussions and tightly scheduled project management

an extensive consultation process with Hoyer’s customers, together with an investment of some €25m. The 38,000-m² facility, which features five separate sub-divisions, is among the most complex supply chain projects Hoyer has undertaken from scratch.

“The logistics centre is entirely built and structured according to customers’ differentiated needs,” says Ulrich Grätz, global

formed the basis. Despite minor delays due to the effects of the Covid-19 pandemic, we are very satisfied.”

Around 20 employees now staff the site, which includes a warehouse with storage bays used to store 10,000 metal boxes containing synthetic rubber. Hoyer transports these from the manufacturer elsewhere in the Chempark to the logistics centre, where they are prepared for shipment and loaded onto trucks for onward transport.

The second sub-division is a pallet warehouse with 12,000 high-rack spaces for various raw materials and finished goods. “The tasks we

 HOYER HAS BEEN DEVELOPING ITS EXPERTISE IN NON-TRANSPORT CHEMICAL LOGISTICS

perform for our customers include storagerelated services such as putting packed goods on pallets into storage, warehousing them and retrieving them from storage,” explains Grätz.

GLOBAL COVERAGE A packaging materials warehouse, with more than 3,000 storage spaces, is situated alongside the pallet warehouse. There Hoyer carries out a series of logistics processes such as putting packaging materials into storage, storing them, taking them out of storage and loading them. The comprehensive package of services also includes labelling and packaging materials monitoring, together with various special tasks on request. The services are supplemented by filling and storing polyurethane dispersions, with two filling plants in this area of the logistics centre for this purpose.

The Hoyer team plans and carries out the transport of these dispersions from the production facility to the logistics centre, and fills them into drums and bulk packs.

“We also carry out the handling of full packages, preparation for shipment, orderpicking, loading and shipment,” Grätz adds.

The aim of the new facility, Hoyer says, is to further strengthen Hoyer’s position in supply chain and logistics services, complementing its strengths in intermodal transport and IBC rental. “We have also undertaken this task for the future: to supply solutions and set standards in the market,” says Grätz.

Hoyer’s SCS division offers a range of activities to supplement its customers’ logistics processes, including on-site logistics, filling and blending, operating intermodal terminals, dangerous goods terminals and dry bulk logistics. Hoyer is currently represented in more than 30 different chemical production plants, including several in Germany and others in China and Saudi Arabia.

The SCS division supports and complements Hoyer’s other activities in bulk logistics, with operations in more than 115 countries around the world, focusing on the chemical, food, gas and mineral oil sectors. www.hoyer-group.com

HCB MONTHLY | JANUARY 2021

TANKS & LOGISTICS 11

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BIG RED INVESTMENT • H ESSERS CONTINUES ON ITS RAPID GROWTH PATH, ITS LATEST PROJECT BEING THE PROPOSED ACQUISITION OF THE MEEUS GROUP AND ITS LOGISTICS ACTIVITIES

presence in the market. Moreover, it gives me the opportunity to further focus on the development of the Hartog and Bikker companies.”

The acquired companies have an expected turnover of €57m in 2020, making this H Essers’ largest ever acquisition. “The acquisition of the Meeus Group heralds a new growth phase that will allow us to significantly increase our warehousing footprint in the Netherlands, a phase in which we will be focusing on large, modern European distribution centres,” Bervoets explains. “Currently, it concerns 160,000 m² of warehouse space – with enormous expansion potential – with which to offer our customers integrated logistics solutions ranging from storage, picking and packing, to advanced added-value services such as filling activities.”

The deal will also expand H Essers’ transport and distribution network, bringing with it 100 trucks and 590 trailers and chassis.

“The inland terminal, strategically located between the ports of Rotterdam and Antwerp, represents a geographically important reinforcement of our multimodal services, which are in full growth,” Bervoets adds.

Neither party has revealed financial details of the acquisition, which remains subject to final agreement and approval by the competition authorities.

H ESSERS REPORTS that it is in “advanced negotiations” to acquire the logistics and transport activities of the Netherlands-based Meeus Group. H Essers says the acquisition is in line with its multi-year growth plan, which involves continuing to invest heavily in advanced chemical logistics activities and to expand its footprint in the Netherlands.

“The acquisition of the Meeus Group’s chemical cluster will significantly expand our warehousing footprint as well as our multimodal transport and distribution network in the Netherlands,” says Gert Bervoets, CEO of H Essers. “We look forward to pooling the expertise of our companies: a win-win for both parties and our customers.”

activities, of which one location is in France; Mepavex Logistics, which offers warehousing and value-added services; Meeus Transport, which operates within and between the Netherlands and France; Meeus France; forwarding operations Meeus Freight Management and BGT; Benelux transport operation Darvi Transport; the MCT inland container terminal; and the UTS network of removal companies. Meeus Group’s three Hartog and Bikker companies, which lie outside the chemical cluster, are not involved in the deal.

JOINING FORCES “When we look at our chemicals activities,

SHELLING OUT The major deal follows swiftly on from H Essers’ takeover of Norwegian tank container operator Tank Management A/S this past September (HCB October 2020, page 40).

But that is far from all that has been going on at the Belgium-based logistics firm of late. This past October it opened a new warehouse at its site in Kluizendok, Ghent, specifically to handle chemicals for Shell.

The development is part of the broader trimodal terminal, where warehousing was established in 2018 and now offers some

The acquired assets will include: Meeus Group’s chemical cluster and two removal

we see that our customers are increasingly looking for logistics partners with a broad range of services and a large geographic footprint,” says Toon Meeus, third generation head of the Meeus Group. “Joining forces and integrating our chemical cluster in a company such as H Essers will result in a stronger

50,000 m² of space.

The investment at the Kluizendok location follows the pattern of the new Dry Port Genk terminal, where work also started in 2018, but focusing on synchromodality. This is enabled by the large rail terminal adjacent to the site, certified for handling dangerous goods, as well

 BUILDING ON ITS HOMELAND SITES IN BELGIUM, H ESSERS IS LOOKING FOR GROWTH ELSEWHERE IN EUROPE

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as fast connections by inland waterway to other ports, including Antwerp and Rotterdam.

H Essers built 37,500 m² of warehousing space for two chemical clients and has now expanded that with another 12,500 m² for Shell. “With a total storage capacity of 50,000 m² today and a potential to expand up to 130,000 m², we are able to not only provide our customers with state-of-the-art and personalised warehousing now, but also in the long term,” says Filip Puelinckx, senior project engineer at H Essers. “There is plenty of room for companies looking for new opportunities.

What we have to offer is a sustainable approach and a fully synchromodal supply chain.”

“Kluizendok offers a unique opportunity, because we are currently one of the few players who can provide such facilities on such a large scale and fully compliant at that,” adds Christophe Houpels, business unit manager, West.

H Essers and Shell worked closely together to ensure a complete integration of all processes through electronic data interchange.

“The less manual input is required, the more the process flows are optimised,” notes Puelinckx. “And once you get that right, you gain tremendously in quality and speed.”

Shell is so far impressed with the development, as Jannes Colaert, general

manager of Shell Belgium, explains: “The team proactively thinks about our future, about what our optimised supply chain should look like, and then puts it into practice, step by step.” In addition, the efficiency gains can help reduce the carbon footprint of Shell’s distribution activities through the use of inland shipping. “We not only think about the practical solution our customers need today, but also about green opportunities and growth strategies for the future. For us, that’s the definition of a partnership,” says Houpels.

ITALIAN ACTION Expansion has also been taking place in Italy, where H Essers has positioned itself as a specialist international logistics service provider for the pharmaceutical sector and has recently attracted a number of new customers.

One of those is Fresenius-Kabi iPSUM, a German pharma producer with an Italian branch in Villadose, some 50 km south-west of Venice and close to H Essers’ facility in Monselice. “They needed more warehousing,” comments Lieven Severijns, business unit manager, international expansions at H Essers. “Because of the Corona crisis, which had just begun, there was an urgent need for a large quantity of crucial medicines

and semi-finished products that could prove valuable in the fight against the virus.

Fresenius also wanted to fully secure the collection and delivery of the products, both in terms of planning and protected transportation of the goods.”

On top of that, Fresenius was looking for packaging solutions and the release of non-released goods, those that have not yet been released for sale and use in Italy. The storage and release of active pharmaceutical ingredients (APIs) requires specific licences in Italy. “We applied for and obtained all the required authorisations immediately,” Severijns says. “We now have three pharmaceutical employees who are in charge of managing the pharmaceutical products, including the APIs.” Another request arrived from biopharma multinational UCB, who wanted H Essers to take over its entire Italian supply chain. Since this past November, H Essers has taken over all storage, picking, packaging, shipping and transport management for UCB in Italy.

Specific aspects of these activities include management of narcotics and full tracing and communication of the so-called bollini, the strict identification characteristics of goods which ensure that counterfeit products and alternative sales channels are avoided. This also meant additional licensing and security measures to handle narcotics, as well as the need for further temperature-controlled warehousing space.

Although pharmaceuticals have provided a solid foundation for the Italian operations of H Essers, the company is looking to extend that into the chemicals sector. “The acquisition of Baxter was a big step in that direction, and the bulk operations of Huktra and Tank Management in the region are also in line with this,” says Severijns. “We are currently very active in the pharma segment, but at the same time we are looking for opportunities to create a fully Seveso-certified site in Italy to support chemical customers in their logistical needs.

We are always open to new acquisitions and partnerships that enable us to join forces with other players in the southern European market. And that market really exists: Italy is ready for a logistical breakthrough.” www.essers.com

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A ROLE FOR RAIL

“But it doesn’t have to be like that,” Hore said. Speciality chemicals generally come in smaller parcels and consignees may well lack their own rail facility. In such a scenario, the last mile needs to be a road connection from the terminal to the customer. That is changing, though, with the European single wagon load network allowing movements of, say, a single tank container from hub to hub.

Rail has some obvious advantages, particularly in terms of its environmental impact, Hore said. DB Cargo currently uses 61 per cent renewables in its electricity supply and is aiming to increase that to 80 per cent by 2030. In the move towards a circular economy, rail can be part of the answer, he said, offering flexible and sustainable transport.

currently undertaking some trials using Blockchain technology.

Hore was questioned about the position of rail in an intermodal logistics operation and, in particular, its competitive position compared to inland waterway transport.

This has become more acute during recent low water issues on the Rhine system, which have caused delays in inland waterway traffic. How does rail compete with barges?

The two modes are complementary, Hore said. Low water issues are unlikely to go away and rail has to stand ready to take cargo off the rivers. That means that rail operators need to be involved in planning with their customers and to have sufficient track capacity available. “Customers need an ‘always on’ option,” Hore said, though the big issue is likely to be the provision of rolling stock.

Solutions to that need to come from rail operators, not the authorities, was Hore’s point. Indeed, DB Cargo is now looking at developing inland port hubs where cargo can move off inland barges and onto rail wagons at points where low water can become an issue.

Clearly, planning and visibility – as well as

FIT IN WITH THE WORLD In the modern world, rail also has to fit with its customers’ digital strategies. Rail operators can empower their connected customers and this is an area where DB Cargo is doing plenty of work. It is

vision – will be critical to generating the level of confidence in rail as a flexible option that will be needed if Tarragona is to leverage its other obvious benefits and really make the move to hub status for the chemical industry.

That is up to rail operators to deliver. btt.dbcargo.com

RAIL • HOW DOES RAIL COMPLEMENT PORT ACTIVITIES? AND WHAT DO CHEMICAL CUSTOMERS WANT FROM IT? FLEXIBILITY, RELIABILITY AND ENVIRONMENTAL BENEFITS ARE ON OFFER THE PORT OF Tarragona’s annual Med Hub Day was held in virtual form this past November. One of the port’s main elements in its ambition to become a hub for chemical logistics in the western Mediterranean is greater use of rail to connect it with other nodes in Europe, hampered only by the absence – to date – of a seamless connection with the Euro-gauge rail network.

But why is rail important? What can it bring to the port-based logistics network?

To answer such questions, Patrick Hore, head of the sales and operations centre for chemicals at DB Cargo BTT, had been asked to give his perspective. For a start, he said, rail offers reliability, regularity, connectivity and the ability to scale up. It is ideal for hub-to-hub and cluster-to-cluster movements but that requires similar facilities at either end of the transport chain.

 RAIL TRANSPORT CAN OFFER MUCH MORE THAN IT DOES NOW, IF OPERATORS ADAPT

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NEWS BULLETIN

TANKS & LOGISTICS

SUTTONS BAGS BOC GIG

Suttons Tankers has won a five-year contract with BOC to provide inter-branch trunking services for the movement of full and empty gas cylinders across the UK. Suttons will invest in 30 new trucks to service the contract, which goes live in April 2021. Suttons will use an 80 per cent dedicated fleet model, with 20 per cent of capacity provided by its wider network.

This will allow BOC to use additional trained drivers without over-committing on the core fleet, providing greater flexibility and classleading cost-to-serve metrics, Suttons says.

“We are delighted to announce this major contract win with BOC which is directly aligned to our growth strategy in the gas sector,” says Michael Cundy, managing director of Suttons Tankers. “We were able to be commercially competitive, while providing BOC with a compelling solution that met their requirements and was completely bespoke to their operation. This new business win also secures an extension on our other contracts with BOC, which is a credit to the Suttons employees who have been working on the propellant gas and pentanes contracts.” www.suttonsgroup.com

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LNG BY TANK TO CHINA

Novatek Gas & Power Asia and Saibu Gas have completed their first trial delivery of LNG in tank containers to Tiger Gas for distribution in China. The LNG was delivered from the Hibiki container terminal in Japan to Shanghai in tanks owned by Tiger Gas. “Together with our partners, we have successfully completed our first trial delivery of LNG in ISO containers to China,” says Lev Feodosyev, Novatek’s first deputy chairman of the Management Board. “It is forecasted that ISO containers of LNG will exponentially increase over the upcoming decades, allowing us to diversify our customer base by including small-scale LNG consumers and entering the downstream markets in China and Japan.”

Earlier this year Tiger Gas placed an order for up to ten ships designed specifically for the transport of tank containers carrying LNG, in anticipation of the start of a supply contract with Petronas in 2022. www.novatek.ru KERRY NOW COTAC

Tank container depot specialist Kerry-ITS has agreed to a merger with the cotac Group

and is now known as cotac ITS (Asia) Pte Ltd. Similarly, Kerry-ITS (Thailand) is now cotac ITS (Thailand) Ltd. The deal confirms cotac’s earlier announcement that it is nearly doubling in size by adding depots in Asia and North America. Kerry-ITS says the move will strengthen its position in Asia while improving the range and quality of its tank depot services.

As part of the transaction, William Loh, managing director, has stepped down but will remain in an advisory role for four years; his replacement is Sebastian Loh, who will work with the support of the cotac management in Germany.

Kerry-ITS has also announced that its Shanghai depot has discontinued operations. cotac-its.com ITCO UPDATES ACC

The International Tank Container Organisation (ITCO) has published an updated fourth edition of its Acceptable Container Condition (ACC) inspection guidance document. This revision makes no substantive changes to the original fourth edition, published in 2017, but has made some editorial clarifications and aligns its design with other ITCO Technical Guidance documents.

The ACC Inspection Guidance is designed to help with the determination of the acceptable condition of a general-purpose tank container and when tank components need repair or replacement. It is meant to be used when tanks are inspected at the point when their control moved between one party and another.

The redesigned document can be downloaded from the ITCO website. www.itco.org GATX BUYS TRIFLEET

GATX Corp has acquired Trifleet Leasing Holding BV for some €175m cash.

Netherlands-based Trifleet is the world’s fourth largest tank container lessor with a fleet of more

TANKS & LOGISTICS 17

than 18,000 tank containers under its control.

Its customers include tank container operators as well as producers in the chemicals, industrial and cryogenic gases, pharmaceuticals and food industries.

“Trifleet complements our existing railcar leasing business and shares GATX’s approach of striving for the highest levels of safety, quality, customer service and environmentally responsible performance,” says Brian A Kenney, president/CEO of GATX. “We are committed to strengthening Trifleet’s position in the tank container leasing market by leveraging GATX’s extensive global customer base and experience in managing long-lived, widely used transportation assets.” www.gatx.com HOYER READY FOR ENERGY TRANSITION

The Hoyer Group has combined its Petrolog and Gaslog business units into one operation, the Contract Division, unifying contract logistics for gas and mineral oil supplies. “Combining the highly specialised areas will develop synergies, especially at the organisational structural level,” the company states. The new unit will have some 1,500 vehicles and around 3,500 employees at its disposal.



INCREASING USE OF GASES FOR FUELS HAS PROMPTED AN ORGANISATIONAL CHANGE AT HOYER

The former Petrolog business unit has operations in aircraft refuelling, bitumen logistics and the supply of fuels to service stations and commercial customers. Hoyer sees a growing demand in the supply of LNG, CNG and hydrogen as alternative fuels in this sector, indicating a need for the expertise already evident in the Gaslog unit.

“It not only enables us to develop synergies, but also already positions us to effectively and proactively meet the challenge of the energy transition in the next five to ten years – away from petrol and diesel and towards alternative fuels such as hydrogen and LNG,” says Allan Davison, who has taken over as director of the Contract Division.

The combination of its know-how in handling gases with its soundly based experience of digital, system-supported supplies to service stations will enable Hoyer to offer “forward-looking product inventory management and supply logistics” from a single source in the future, the company adds. Furthermore, bitumen logistics, aircraft refuelling and, in gas logistics, supplies to industrial customers will remain in their customary quality.

Mark Binns, who has worked in the Hoyer Group for 41 years and has headed the Petrolog business for more than 25 years, will move over to concentrate on developing the Sustainable Management area. www.hoyer-group.com

BROEKMAN BUILDS IN BELGIUM

Broekman Logistics has acquired the Belgian activities of freight forwarder Ipsen Logistics, further reinforcing its leading position in supply chain solutions in the Benelux countries. The acquisition will add to Broekman’s chemical warehousing in Antwerp, bringing a number of key accounts in chemicals, pharmaceuticals, industrial and heavy lift activities.

“We are looking forward to become a part of Broekman Logistics,” says Johan Proost, general manager of Ipsen Logistics.

“Broekman Logistics has shown to be an ambitious player in the Belgian market, and we have full confidence and trust that with a smooth and swift integration with the existing forwarding and warehousing activities in the Antwerp region, we can utilise the synergies that will arise.”

“The acquisition should be seen in the light of building on strong global partnerships, optimising our Global Reach, and simultaneously strengthening our Personal Touch by expanding our local footprint in the Antwerp region,” adds Rik Pek, managing director of Broekman Logistics. “We welcome the expertise and experience of the employees of Ipsen Belgium into our organisation and wish them a warm welcome.” www.broekmanlogistics.com

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BIGGER AND BETTER MARKET • CHEMICAL TANKERS DID PRETTY WELL LAST YEAR BUT HOW WILL THE SECTOR RECOVER FROM COVID-19, IMO 2020 AND OTHER CHALLENGES? BRS HAS SOME POINTERS THE COVID-19 PANDEMIC “smashed” the global economy in the first half of 2020 and it will be a long time before it gets back to pre-pandemic levels, especially in the western hemisphere. China is likely to be the only major economy to get back to ‘normal’ this year, with the Atlantic basin probably waiting until the second half of 2022.

These predictions, which underpin any analysis of global chemical trade and the resulting demand for chemical tanker capacity, were made by Andrew Wilson, head of energy and tanker research at BRS Brokers, during the IV Med Hub Day, organised

by Port Tarragona and ChemMed and held virtually this past 19 and 20 November. Wilson had been invited to give his views on the impact of Covid-19 and other disruptions during 2020 on the Mediterranean tanker market, which he felt will be “difficult” over the next year or two.

One important result of the Covid-19 pandemic has been a sharp decline in demand for road fuels; this followed immediately after refiners had been taking advantage of low oil prices to run their assets fast early in 2020, which has left them with high stocks. “A lot of plants are now under

threat,” Wilson said: some that have been shuttered may never re-open, he predicted.

SHIFTING SUPPLIES Ageing refineries in the mature markets in Europe and North America will in any case struggle to compete with new, more efficient plants now opening up – and these are overwhelmingly in Asia. Wilson said that 91 per cent of new capacity due to open in 2021 is located east of Suez. That will follow on from two new 400,000 bpd refineries opening in December 2020, one in Saudi Arabia and one in China, both of which are highly integrated with downstream petrochemical facilities.

In order to balance the market, Europe needs to lose 2m bpd of refinery capacity and older, smaller and less efficient plants will have to go, Wilson said. Those with integrated petrochemical production will remain and others located in strategic hubs will have an advantage.

Significantly for the product and chemical tanker markets, this move towards integrated ‘mega-plants’, especially in the Middle East and China, will mean a move towards larger parcel sizes, a trend that Wilson said will continue over the coming decade.

And significantly for the Mediterranean market, China’s Belt & Road initiative involves a maritime route that ends in the region. Hub ports in the Mediterranean will therefore look very attractive for both Chinese and US petrochemical producers looking for a location in Europe where they can break bulk from larger tankers for regional distribution in smaller parcels.

This points to a need for more storage capacity in the Mediterranean, although it leaves the question as to whether these larger tankers will be able to find backhaul cargoes.

FUELLING THE FLEET The ‘IMO 2020’ rule, mandating a significant reduction in sulphur oxide emissions from ships as from the start of 2020, was “totally

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eclipsed” by Covid-19, Wilson said. But the slump in demand meant that the anticipated problems with supplies of compliant very low-sulphur fuels did not emerge. Wilson reported that very low-sulphur grades are now supplying 70 per cent of global bunker demand, with 20 per cent of demand being met by high sulphur fuel oil. Generally low prices have also reduced the price differential between the two, making scrubber economics look shaky.

But shipowners are now having to consider what will be the bunker fuels of the future and how they will need to respond through retrofits or newbuilding. In this uncertainty, owners are reluctant to place newbuilding orders in case those new ships become obsolete before they have paid back their investment. The International Maritime Organisation (IMO) is eager to move to new fuels to reduce the environmental impact of shipping but those fuels are not yet ready, at least not in the volumes that will be required.

 NEW PRODUCTION CAPACITY, SUCH AS THE MASSIVE SADARA PLANT IN SAUDI ARABIA (ABOVE) LOOK LIKELY TO FEED GROWING VOLUMES OF CHEMICAL TRADE INTO MEDITERREAN PORTS SUCH AS TARRAGONA (OPPOSITE)

While Wilson felt that the situation will become clearer by 2022 or 2023, until then we can expect continued slow activity in the newbuilding sector and, as a result, the medium-term outlook for freight rates in most sectors is bullish. Similarly, scrapping remains unappealing. With rates at firm levels already and weak demand (and hence low prices) for scrap, owners are not getting value from the demolition market.

Older tankers, particularly chemical and small product tankers, are more likely to be sold for further trading in roles such as bunkering vessels. Wilson predicted that the demolition sector will not pick up until 2022 to 2024, especially if prices remain weak.

WHAT IT MEANS FOR CHEMSHIPS Looking more specifically at the local market for smaller tankers, Wilson noted that product tanker rates peaked in the second quarter of 2020 but came off the peak quickly. That was not the case for chemical tankers, which retained their firmness and he expected 2020 to prove

Overall, Wilson concluded, chemical tankers are moving up the size range, with larger vessels needed to handle the increase in long-haul trades and the larger parcel sizes being generated by the new breed of bigger petrochemical plants in the Middle East.

There is, though, still room for smaller, specialised owners. The chemical tanker market has plenty of niches where those with specific expertise can prosper. But he also felt that the sector is ripe for consolidation, not necessarily through mergers and acquisitions but rather through pools and joint ventures. “The next few months will see more such deals,” Wilson predicted.

He certainly knew what he was talking about; since then Odfjell has set up a new coated tanker pool and attracted tonnage from Navig8 Chemical Tankers and Transportation Recovery Fund (TRF); Stolt-Nielsen and John T Essberger have formed a joint venture, E&S Tankers, to combine their European parcel tanker fleets; and the Sogestran Group has entered the market with a majority stake in De Poli

to be the best year for 5,000-dwt units since 2016.

However, there are still too many ships chasing too few chemical cargoes in the Mediterranean market and things could remain difficult for the next 12 to 24 months, Wilson said.

Tankers and the acquisition of Team Tankers International’s European fleet.

If Wilson is correct, then these announcements may not be the end of this latest phase of consolidation in the market. www.brsbrokers.com

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THE GREAT LEAP FORWARD METHANOL • UNTIL NOW, METHANOL HAS ONLY BEEN USED AS FUEL ON DEDICATED METHANOL TANKERS. THE DRIVE FOR DECARBONISATION MEANS THAT MAY SOON CHANGE HYUNDAI MIPO DOCKYARD (HMD), MAN Energy Solutions and the Methanol Institute have worked together to develop a product tanker design, fuelled by methanol, that meets all prevailing safety requirements with minimal loss of cargo capacity and low additional build costs. DNV GL reviewed the designs in accordance with the relevant rules and regulations and provided technical advice and recommendations to help enhance the design development.

The resulting design – Low Emission Advanced Products Tanker (LEAP) – has been granted Approval in Principle by classification society DNV GL, which acted as verification body to the project, assessing and approving the design in conformity to its rules and the latest amendments to the International Maritime Organisation’s (IMO) International

The vessel has a service speed of 14.5 knots and effective range of 17,400 nautical miles using methanol as primary fuel or 21,900 nautical miles using very low sulphur fuel oil (VLSFO). Cargo capacity is 54,000 m³ - a reduction of just 300 m³ compared to a diesel-only vessel.

The LEAP design has additional newbuild costs of just 10 per cent compared to a standard tanker of the same size, well below the 22 per cent additional capex for an LNG dual-fuel vessel. Using methanol as fuel would reduce daily CO² emissions from 64.7 tonnes per day from a diesel engine to 54.7 tonnes per day at service speed. The ship would have an approximate 6 per cent improvement in its EEDI Phase 3 rating compared to a diesel-only vessel.

Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code).

A LEAP IN LAYOUT The design uses two slop tanks of 2,600 m³ to store methanol for fuel, positioned aft of the cargo tanks and protected by a cofferdam, with the fuel supply system connecting to the engine room via an on-deck service tank.

Methanol is bunkered by an independent

 THE NEW LEAP DESIGN LEANS HEAVILY ON HYUNDAI MIPO’S EXPERIENCE IN METHANOL TANKERS

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manifold and the design includes tanks for VLSFO and marine diesel storage to provide complete operational flexibility.

“HMD is pleased to have provided initial and detailed design for the LEAP vessel design using the experience accumulated from successful dual-fuel methanol carriers for numerous international owners,” says YH Chung, head of the Initial Design Department at HMD. “This design results in estimated cargo loss of 0.5 per cent for a low construction premium, providing shipowners with the ability to build a low emissions vessel today.”

HMD has extensive experience in building dedicated methanol tankers that use methanol for their propulsion. It recently picked up another order, for eight 49,999-dwt methanol tankers, from leading methanol shipping company Waterfront Shipping.

MAN Energy Solutions provided input to the arrangement of the fuel supply and propulsion system, based on application of its proven ME-LGIM two-stroke methanol-capable main engine. There is no significant additional ‘footprint’ for the methanol fuel system as the service tank, methanol pipelines and methanol fuel supply room are located on deck.

“Methanol ticks the boxes from an emissions point of view, with no sulphur, very low particulate matter and CO² emissions around 15 per cent lower than conventional marine fuel oil,” says Kjeld Aabo, head of marine and offshore sales at MAN Energy Solutions. “To meet IMO NOx Tier III requirements, methanol can be blended with water, which brings the ship into compliance without the need for expensive exhaust gas after-treatment.”

CLASS CONSCIOUS “DNV GL has assessed this design in accordance with its rules and all international standards and is pleased to provide Approval in Principle for a vessel which can make a significant contribution to lower emissions,” says Vidar Dolonen, regional manager of DNV GL Korea and Japan. “In the drive to decarbonise shipping, DNV GL has identified an important role for methanol produced from biomass or renewable energy sources.”

The Methanol Institute believes the next few years will be crucial for the adoption of

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fuels that can begin to have an impact on global carbon emissions from shipping.

Huge investment will be required to produce renewable fuels and owners may have to demonstrate that they have taken steps to address their environmental performance in order to access fresh capital in future.

“Governments, NGOs, policy-makers, academics and technical experts all agree that conventional methanol provides a safe, clean and practical pathway to short-term emissions reductions,” says Chris Chatterton, COO of The Methanol Institute. “This vessel design demonstrates that newbuild or conversion can be straightforward and cost-effective and extends the trading life of the asset as it can use renewable methanol as more becomes available.” www.hmd.co.kr www.dnvgl.com www.man-es.com www.methanol.org

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GREEN AND BLUE

WÄRTSILÄ CORPORATION AND Grieg Edge, the innovation hub of Bergen-based shipping group Grieg Star, have launched a joint project to develop and build an ammoniafuelled tanker by 2024; the design aims to eliminate greenhouse gas (GHG) emissions completely and has attracted support of some €4.4m from the Norwegian government’s Pilot-E scheme to help see the project to fruition.

The MS Green Ammonia project is a result of a collaboration group in the Nordic region, which emerged from the Zero Emissions Energy Distribution at Sea (Zeeds) initiative.

“We regard the funding from Pilot-E as a valuable stamp of approval for our plans.

Both Wärtsilä and we feel confident that this project represents the future for the

the Norwegian Research Council and Innovation Norway is a significant step towards completion,” says Nicolai Grieg, head of Grieg Edge and formerly head of Grieg Star prior to the formation of Grieg Edge this past November.

Norway’s Minister of Trade and Industry, Iselin Nybø, adds: “This year’s grants show that the Norwegian maritime industry is really at the forefront of developing emission-free solutions with great export potential. This is another great example of how we create new green industry and growth in Norway.”

THE BREEDING GROUND The partners envisage a plant being built at Berlevåg in northern Norway, producing

“We see a strong interest from owners of ferries, offshore supply ships, fishing vessels and from energy-producing companies. In total, they require an amount of energy surpassing what we can achieve in this project. The market is there without a doubt,” says Vidar Lundberg, chief business development officer at Grieg Star Group.

“Norway, with its high number of vessels using LNG or alternative fuels, with high volumes of green energy, and the cheapest electrical power in Europe, is probably the perfect arena for the world’s first market for green ammonia.”

Indeed, the existing LNG-fuelled coastal fleet in Norway offers an ideal breeding ground for the take-up of ammonia as a marine fuel, either by mixing it with LNG or by retrofitting engines to run on ammonia alone.

“We are in the midst of a transition to low carbon shipping, and the long traditions we have in Norway for cross-industry cooperation is vital for the successful implementation of a new green value chain,” says Cato Esperø, head of sales at Wärtsilä Norway. “Through fruitful collaboration with customers, Wärtsilä has been at the forefront of developing marine applications for LNG, hybrid systems and fuel cells. We are

maritime sector. To have the support from

carbon-neutral ammonia using renewable energy. The output will be distributed to end users along the coast; the eventual design of the ship itself will depend on the level of demand, though the partners say that letters of intent have already been signed with several “heavyweight industrial partners”.

excited to be contributing to this important demonstration project for green ammonia together with a forward-leaning shipowner such as Grieg Edge, and the other collaborating partners.” www.wartsila.com www.griegedge.com

PROPULSION • NEXT GENERATION BUNKER FUELS WILL LIKELY BE MORE VARIED THAN THOSE OF TODAY. WORK IS PRESSING AHEAD TO DEVELOP A VIABLE AMMONIA CHAIN

 THE PROJECT ENVISAGES AN AMMONIA-FUELLED TANKER DISTRIBUTING GREEN AMMONIA TO INDUSTRIAL AND TRANSPORT CONSUMERS

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SIZE IS EVERYTHING GAS SHIPPING • THE BIGGEST FLEETS HAVE THE BEST PROTECTION AGAINST MARKET VOLATILITY. CONSOLIDATION HAS NOW COME TO THE SMALLER LPG TANKER SECTOR

RECENT CONSOLIDATION IN the chemical tanker sector has been mirrored by the announcement at the end of December that Epic Gas and Lauritzen Kosan are to merge their fleets and business activities in a new company, BW Epic Kosan. The new organisation will control 77 LPG and ethylene tankers, of which 53 will be wholly owned, creating a fleet with “significant commercial and technical capability across pressurised, semi-refrigerated and refrigerated gas and petrochemical transportation,” the partners say.

BW Epic Kosan will be headquartered in Singapore, with offices in Copenhagen, London, Manila and Tokyo. Charles Maltby, currently CEO of Epic Gas, will take the same role at the new firm, as will his CFO, Uta Urbaniak-Sage. Thomas Wøidemann, currently CEO of Lauritzen Kosan, will lead the commercial organisation.

The merger will combine Epic Gas’s 43 pressurised gas ships with 34 from Lauritzen Kosan, in addition to certain other assets, in exchange for which J Lauritzen A/S will receive new shares in BW Epic Gas equivalent to a 27 per cent shareholding. BW Group, which currently controls Epic Gas, will be the largest shareholder with 58 per cent; shipping investment firm Tailwind and Epic Gas’s existing minority shareholders will have smaller interests. As part of the

fleet from a consortium of Scandinavian and French banks. The company’s shares will continue to be traded on Euronext Growth Oslo.

The transaction is expected to close by the end of the first quarter, subject to the customary competition clearances and other conditions.

SENSE IN THE DEAL Speaking about the deal, Andreas Sohmen-Pao, chairman of Epic Gas, says: “This transaction combines two well reputed operators into a strong new entity in the sector. We welcome our colleagues from Lauritzen Kosan and look forward to working together to build a great company delivering

cleaner energy and feedstock to communities around the world.”

Tommy Thomsen, CEO of the Lauritzen Foundation and chairman of Lauritzen Kosan, adds: “We are delighted to be partnering with BW Group and other Epic shareholders. This will help to improve operational efficiencies and deliver an enhanced service offering to our customers.

With a large and modern fleet spanning LPG and other petrochemical gases, BW Epic Kosan will be well positioned to deliver value for customers, while meeting IMO objectives for decarbonisation.”

The merged fleet will be a very significant player in the smaller LPG tanker sectors, with a truly global reach. Epic Gas currently has a portfolio of customers, including leading oil majors and commodity traders, serving trades across Asia, Europe, Africa and the Americas. Lauritzen Kosan, which was established in 1989 when J Lauritzen acquired Kosan Tankers and which was spun into a separate entity this past July, serves a customer base that includes the world’s largest and most demanding energy and petrochemical companies, again with a global reach. www.epic-gas.com www.j-l.com

deal, BW Epic Kosan has secured committed finance of $155m for the Lauritzen Kosan

 BW EPIC KOSAN WILL BE A MAJOR PLAYER IN THE SMALLER LPG TANKER SECTORS

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AGE IS NO BARRIER DISCRIMINATION • ALTERNATIVE FUELS ARE AT THE TOP OF THE MARITIME AGENDA BUT, SAY STENA BULK AND CONCORDIA MARITIME, OLDER SHIPS CANNOT BE LEFT OUT OF THE TRANSITION

BACK IN THE 1990s, in the wake of the US Oil Pollution Act and the high-profile losses of tankers such as Exxon Valdez, Sea Empress, Braer and others, there was a lot of talk about the phenomenon of ‘substandard ships’ and what could be done about it. Keen to make a good impression, several major tanker charterers imposed apparently arbitrary age limits on the tankers they were prepared to hire.

The result of that was the development of a two-tier market, much to the chagrin of those owners who had spent a lot of time and money in keeping their older ships up to the standards expected. Nonetheless, an improvement in safety did result.

Those tankers built in the shadow of OPA 90 are now approaching the end of their working

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lives and, with attention moving on to reducing the environmental impact of global shipping activity, through increasingly strict emissions controls and – eventually – complete decarbonisation of the maritime fuel chain, a similar situation is in danger of developing.

But, argue Erik Hånell, CEO of Stena Bulk, and Kim Ullman, CEO of Concordia Maritime, such thinking is not only mistaken, it also actively jeopardises efforts to achieve the decarbonisation targets. Owners around the world are looking at a range of options when building new tonnage but, they say, decarbonisation of the industry as a whole will not be possible unless owners seize the opportunities to improve the environmental performance of existing tonnage. What concerns them is that, if older vessels are going to find employment harder to come by, or if they generate substantially lower income, then owners will not have the funds to improve their environmental performance.

commitments. Who is willing to invest in a sustainable retrofitting solution if oil companies put unnecessary limitations on tonnage?”

Stena Bulk and Concordia see governmental incentives, green finance and investor pressure as enablers that can put necessary activities in motion. Co-ordinating industry’s efforts to reduce CO² emissions would make research and development of the most promising solutions, such as hydrogen and fuel cells, more cost-efficient.

The owners also note that a number of different fossil-free fuels are being evaluated and they are, to a high degree, compatible with existing equipment aboard tankers.

“Stena’s biofuel tests have proved that realistic alternatives to diesel exist,” Hånell says. “Even if they take limited steps towards a major legal requirement, they demonstrate a positive intention and can become steppingstones towards fossil-free shipping. The main obstacles are availability, standardisation and price.”

ALREADY ON THE JOB “Stena is working hard on minimising greenhouse gas emissions from our operations – and just like many of our competitors, we are making significant progress,” says Hånell.

“This relates both to designing and building new generations of energy-efficient vessels, but also innovations and enhancements to existing tonnage – which are essential to reach the 2050 reduction targets. But the narrowminded age discrimination of oil tankers is

STEPS TAKEN AND PLANNED Stena Bulk has, as Hånell explains, already made strides towards decarbonising its shipping activity. During the second quarter of 2020 it carried out a trial using biofuel derived entirely from waste. A ten-day transatlantic voyage by the 2016-built MR tanker Stena Immortal was fuelled completely by this biofuel and proved the technical and operational feasibility of using biofuel for regular tanker operations, the company says.

It then introduced a range of low-carbon options for its customers, based on an offsetting programme across its fleet. “This allows customers to make use of low-carbon shipping options regardless of fuel availability on the specific route. It also guarantees that operation is performed without any disturbance to the shipment,” Stena Bulk said at the time.

jeopardising the entire industry’s global CO² reduction efforts.”

Developing and implementing new technologies is an expensive undertaking and, Hånell says, “unnecessary age restrictions are, without doubt, sub-optimising the willingness to make the necessary financial

In September 2020 Stena Bulk completed a successful sea trial using a new bio-fuel oil produced by ExxonMobil, the first such fuel to be made commercially available.

“The development of ExxonMobil’s biofuel is an important step towards a broader commercial use of low-carbon fuels and we

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sustainable. This joint venture is taking us in that direction with a partner whom we share many values that we believe will develop the shipping industry with new features driving improved performance and efficiency.”

were happy to be part of the sea trial, which proved to be very successful,” Hånell said at the time. “The fuel performed very well and fitted seamlessly into our technical and commercial operation without the need for engine modifications or additional procedures, while contributing to the development of fuel that significantly reduces CO² emissions.”

Proman Stena Bulk, a joint venture between Stena Bulk and Proman Shipping, has also ordered three methanol-fuelled 49,900-dwt newbuildings. They will feature the new MAN dual-fuel engines that have a revolutionary water and fuel emulsion technology to significantly reduce NOx emissions without the need for catalytic converters. In addition, the ships will also feature the latest energy efficiency technology, including continually controlled combustion, optimised tuning, redesigned and aerodynamic hull lines, and an energy shaft generator, reducing fuel consumption and helping to meet strict emissions criteria.

Speaking about the new order, Hånell said: “It is in Stena Bulk´s objectives to contribute to making the shipping industry more

HOW TO GET THERE Hånell and Ullman agree that advances in vessel efficiency have moved fast and have left current regulations and restrictions behind. “New rules and regulations must be introduced globally to create a level playing field,” they say. “Domestic or regional requirements are steep thresholds for global trading. All of us are familiar with IMO’s decarbonisation ambitions. Now, we need to know how they will be measured. By ship, by company, by country or some other way?”

Stena Bulk also agrees with those who say that the decarbonisation process will require widespread collaboration, something that has been seen in many of the alternative fuel projects recently announced. As Hånell says, “We cannot manage this huge transition by ourselves. The challenge goes way beyond adapting ships for new fuels and technologies.

Reaching stringent emission targets requires cooperation between all stakeholders: authorities, finance institutions, shipping companies and the fuel industry.”

Hånell and Ullman have a call to action, saying: “Age restrictions belong to the past.

Our industry must move away from its legacy and traditional business model; moving the focus to ships that are built to last through several cycles.”

They have some suggestions to offer, too: “Start by removing obstacles that go against the sustainability trend, such as age discrimination, that prevent a greener development. Then, let us replace a fragmented regulatory and technological approach with clear global targets, industrial cooperation and incentives that put the propellers in motion.

“Greater things than our individual businesses and their profitability are at stake.

In the long run, mutual efforts to turn the dangerous tide of global warming will be beneficial both for our planet and ourselves,” they conclude. www.concordiamaritime.com www.stenabulk.com

 ERIK HÅNELL (OPPOSITE) AND KIM ULLMAN (ABOVE) AGREE THT UNNECESSARY AGE RESTRICTIONS RISK DISINCENTIVISING TANKER OPERATORS FROM INVESTING TO IMPROVE THE EFFICIENCY OF THEIR EXISTING VESSELS

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NEWS BULLETIN

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SOGESTRAN TAKES CONTROL

Recent consolidation activity in the chemical tanker sector has continued with the acquisition on 25 November 2020 of a majority stake in De Poli Tankers by the Sogestran Group, which provided the finance for De Poli to acquire the European chemical tanker business of Team Tankers International (TTI), comprising seven 8,000-dwt stainless steel parcel tankers and the Team organisation in Marbella, Spain.

In a statement, TTI says: “De Poli will combine the acquired TTI business with its fleet and will continue to service the existing contracts. Both TTI and De Poli are convinced that the fleets, the geographical trading areas and the type of trades are highly complementary and as such, will provide valuable synergies and further improved service levels to all clients of both De Poli and TTI.” De Poli will also commercially manage three chemical tankers for TTI for a limited period.

Together with its eight existing ships, Netherlands-based De Poli now has 18 chemical tankers under operation, which will form part of Sogestran’s maritime business unit. This now controls some 20 vessels and is one of four business units in the group; its Fluvial unit

operates more than 160 inland vessels on the Rhône, Seine, Loire, Danube and Rhine systems; it also operates multimodal container transport in France, Belgium and the Netherlands; and offers services in the port of Le Havre, including the storage of conditioned dangerous goods. www.sogestran.com www.depoli-tankers.nl LPG FUEL PROVEN BY BW LPG

BW LPG has completed the first LPG-fuelled crossing of the Pacific Ocean, its recently converted VLGC BW Gemini (below) arriving at the Enterprise terminal in Houston in mid-December. The gas tanker loaded 49,000 tonnes of LPG, refuelling with LPG while cargo operations were carried out, significantly reducing its time in port.

On the back of this successful voyage, BW LPG has now committed to retrofit another three of its existing VLGCs to operate on LPG fuel, bringing the total number of conversions to 15 at a combined cost of some $130m.

Speaking about the move, which is seen as a step on the way towards the use of zero-carbon fuels, BW LPG CEO Anders Onarheim says: “We are taking the lead and

advancing technology that will allow us to decarbonise and maximise the value of an asset with a 20-year lifespan as we prepare for a zero-carbon solution. Building new ships can provide the benefits of operating with LPG but comes at a heavy cost. Counting total emissions, a new ship represents about 70,000 tons of carbon dioxide in the materials and building process. Compared to 2,000 tons of carbon dioxide for retrofitting, the sustainability outcome is much better from retrofitting than from building new vessels.”

BW LPG has meanwhile agreed to sell two of its VLGCs: BW Confidence (83,270 m3, 2006) and BW Cedar (82,260 m3, 2007). BW Confidence is due to be delivered to its new owners in the first quarter of 2021, booking a net gain of some $4m for BW LPG. BW Cedar will join three other VLGCs in the joint venture BW Global United LPG India, with all four on timecharter to major Indian oil companies to supply India with LPG. “Committing both vessels for sale is aligned with our strategy to capture growth opportunities,” says Onarheim. “With a strong VLGC freight market, we secured an attractive price for BW Confidence. With BW Cedar, we further strengthen BW LPG’s strong base in India. India is the world’s second largest LPG import market, and our joint venture is now the largest VLGC operator in India.” www.bwlpg.com AVANCE HAS WEAKER THIRD

Avance Gas Holding has reported timecharter earnings of $24.5m in the three months to end September, well down on the $34.3m recorded in the prior period. Net profit fell from $6.7m to $2.3m. The company experienced a higher number of ballast voyages and additional costs as a result of Covid-19 restrictions on crew changes but believes the third quarter will be an exception to the remainder of the year.

In particular, the third quarter saw strong LPG freight rates despite fluctuations in export

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volumes from the US Gulf, where exports of 8.6m tonnes were below the second quarter figure of 9.0m tonnes. Early indications suggest the fourth quarter will be much stronger. Middle East exports continue to decline in parallel with lower oil production.

“Covid-10 and oil price volatility have disrupted LPG trade through temporary lower demand from the petrochemical industry and challenging US-Asia price differential,” Avance Gas says. “With a continued strong Asian retail demand and improving oil prices, the VLGC market has rebounded more quickly than expected and remained strong throughout the fall.” www.avancegas.com MORE METHANOL FOR WATERFRONT

Waterfront Shipping has ordered eight 49,999dwt dual-fuel methanol tankers from Hyundai Mipo. The deal involves the participation of a number of shipowners, including Marinvest, MOL, NYK Line, KSS Line and Meiji Shipping.

The ships will be fitted with MAN B&W’s ME-LGIM two-stroke engines capable of burning methanol as well as conventional fuels.

Waterfront Shipping, a wholly owned subsidiary of Methanex, currently operates 30 tankers in methanol trade, of which 11 are dual-fuel ships, and says its experience so far shows that methanol is a viable marine fuel solution. Compared to conventional fuels, it reduces sulphur oxide emissions by 99 per cent and carbon dioxide emissions by 15 per cent.

Delivery of the newbuildings will begin in 2011 and run through to 2023. wfs-cl.com TWO FOR TITAN

Titan LNG and Fluxys have taken delivery of a second LNG bunkering barge, FlexFueler 002, from Kooiman Marine (above). The barge will be located in the Port of Antwerp from February and Titan LNG says it is confident that it will soon be able to supply both liquefied biogas, made from organic waste, or liquefied synthetic methane derived from green hydrogen and captured carbon dioxide.

The barge will operate from a home berth but will also be able to bunker LNG-fuelled inland waterway and coastal vessels at other berths nearby while they are unloading or loading cargo.

“We would like to thank Kooiman Marine Group for building another landmark LNG bunker vessel,” says Ronald van Selm, CTO of Titan LNG. “We are very anxious to add this vessel to our fleet of owned and chartered LNG bunker vessels. Building on the very fruitful cooperation during the development and building process, we are confident that together with Fluxys, LNG bunkering in Antwerp will be a daily business soon. Jointly with the Port of Antwerp we have already delivered LNG numerous times with the FlexFueler001, so we can guarantee our customers the safety framework is in place and functioning.”

Pascal de Buck, CEO of Fluxys, adds: “We are proud to offer with partner Titan LNG a key logistic link for the shipping industry to switch to cleaner operations in the Antwerp port and region. The prospect of introducing with our newly built bunkering barge fully carbon neutral options in the foreseeable future strengthens us in our commitment to press ahead with the energy transition.” titan-lng.com

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OVER THE WORST

IN ITS REVIEW of the tank storage market in 2020, storage broker Odin-RVB said that, while the volatility induced by the Covid-19 pandemic had both positive and negative effects on the oil, gas and petrochemical industries overall, most of those active in bulk liquids storage, whether as terminal operators or commodity traders, reported good or stable turnover for the year as a whole. This, it said, is a “good sign that the industries active in the tank storage market are resilient and will be there for the years to come”.

The storage market for the year was set by the strong contango that emerged as

along the supply chain was looking for somewhere to be stored – and this included floating storage.

Odin-RVB describes the situation like this: “As countries worldwide strongly advised all to work from home offices, cars idled in the streets and gasoline and diesel consumption collapsed leaving the majors with refineries no other option than to quickly adapt and try to shift production to products with the highest possible margins.”

Even after the major oil exporting countries brought supplies into line with demand and prices began to recover, there was still plenty of oil in stock and the ongoing ‘super contango’

STEADY AS SHE GOES While the contango was most evident in the petroleum product markets, the chemicals sector faced some sharp shifts in the type of demand. For instance, Odin-RVB says, the most sought-after tankage was for the storage of ethanol, which was in short supply.

In addition, there was significant growth in demand for capacity to store bio-feedstocks and, again, a limited supply of suitable tankage.

Terminal operators have responded to those changes, with some new tankage coming onstream during 2020 and more expected this year, especially in the ARA region. This may result in some customers switching terminals, the broker forecasts, especially as some construction projects have been delayed by Covid-19 restrictions.

Odin-RVB also mentions that the effects of the pandemic have made many players in the market aware of their dependability on and vulnerability to a single country, product or trade, prompting changes to business models and the reconsideration of planned investment. That has also come at a time

a result of falling oil prices after the sharp slump in demand for fuels in the February to April period made abundantly clear just how over-supplied the oil market already was. As traders and refiners jumped on the low prices, they met desultory downstream demand, meaning that a lot of product all

sent tank occupancy rates soaring. Odin-RVB reports that traders were looking for any tanks going, noting that diesel was being put into tanks designed for low-flash chemicals, and also that terminal operators have been able in some cases to lock in lease commitments at good rates over the longer term.

when the oncoming energy transition and the need for decarbonisation has also switching their focus towards sustainability and CO² emissions reduction.

Odin-RVB expects that, absent a recurrence of last year’s strong contango, the market will become easier over this year, with more

MARKET • LAST YEAR WAS A STRANGE ONE FOR US ALL BUT TERMINAL OPERATORS, BY AND LARGE, DID REASONABLY WELL. THERE ARE SIGNS OF SOME RETURN TO NORMALITY

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sub-lease opportunities coming along.

Nevertheless, given the volume of expansion and construction activity needed to meet the changing demands of customers, terminal operators look likely to be facing another busy year.

KINDER SURPRISE But in this time of unprecedented volatility, cash has suddenly become king again and many terminal operators are cutting back their capital expenditure plans. That is especially true in the US, where a number of midstream operators have an exposure to upstream weakness. While take-or-pay contracts provide some protection against lower throughput volumes at storage terminals, many midstream players also have pipeline and transport assets that are not earning as much as they did previously.

Kinder Morgan, for example, reduced its expansion capital expenditure plans for 2020 by some $680m, or roughly 30 per cent.

In addition, running expenses and sustaining capital expenditures were cut by some $175m against the original budget, despite spending $12m on personal protective equipment, enhanced cleaning protocols, temperature screening and other measures designed to protect its operational staff.

The company reported in its third quarter figures that volumes on its crude and condensate pipeline network were down by 17 per cent on the previous year, despite some recovery compared to the second quarter, while refined products throughput at its terminals was off by 22 per cent. On the other hand, storage demand remained high.

Some projects already in hand were completed, including at the Pasadena terminal and Jefferson Street truck rack on the Houston Ship Channel. Work concentrated on increasing flow rates on inbound pipeline connections and outbound dock lines, tank modifications to add butane blending and vapour combustion on ten

storage and blending platform. At the nearby Galena Park terminal, construction continues on a new 30,000-bbl butane sphere and inbound pipeline connection, as well as tank and piping modifications to expand butane blending capabilities, with the work due for completion in the first quarter. All this work is supported by long-term agreements.

Kinder Morgan also reported that work is substantially complete to expand the Argo ethanol hub, spanning the Argo and Chicago terminals and including 105,000 bbl of additional ethanol storage capacity and enhancements to rail loading and unloading and barge loading facilities. Work was also nearly complete on an upgrade of the Battleground Oil Specialty Terminal Co (Bostco) terminal on the Houston Ship Channel, in which Kinder Morgan has a 55 per cent interest, to allow for the segregation of high- and low-sulphur fuel oils.

ENTERPRISING PEOPLE Enterprise Products Partners had a similar story to tell, though AJ ‘Jim’ Teague, co-CEO of the general partner, put a positive spin on things. Operating income in the third quarter was slightly below the year earlier level, though net income and adjusted EBITDA were up marginally. Perhaps more tellingly, free cash flow dropped by more than half and cash flow from operations fell from $1.64bn in third quarter 2019 to $1.10bn.

Similarly, pipeline volumes were 9 per cent below the previous year and marine terminal volumes fell from 1.9m bpd to 1.5m bpd. On the upside, there was a significant improvement over the second quarter, with Enterprise’s

petrochemical services segment recording a $124m quarter-on-quarter increase.

Enterprise has also pulled back on some planned investment, in particular by cancelling an $800m pipeline project, with budgeted growth capital expenditure for 2020 and 2021 cut by some $1.5bn. That was enabled by discussions with customers about their changing demands and industry dynamics and will, Teague says, enable the partnership to “better allocate capital during the current economic cycle while retaining long-term, fee-based volumes and revenues for our assets”. Cutbacks have been evident elsewhere, with operating costs for the first nine months of 2020 some $260m below budget and total sustaining capital expenditure down by around $100m.

Teague is also confident that the rebound from the worst effects of the pandemic is already in place and that, with continued population growth, demand for “reliable US energy, petrochemicals and related products” will continue to recover and resume long-term growth.

“This recovery in demand will also ultimately result in a price signal for crude oil,” Teague adds. “Given the combination of the record retrenchment in drilling and completion activities by US producers, refocused capital allocation and the effects of steep decline curves resulting in a decrease in shale production, we believe this price signal for higher crude oil prices could occur as early as the second half of [2021]. In the interim, we believe the midstream industry will be challenged in its producer-facing businesses.

The challenges and opportunities will be different for each producing basin.”

tanks, and expansion of the existing MTBE

 OPERATORS IN THE US (OPPOSITE) ARE CONCENTRATING ON ENERGY EXPORTS, WHILE ARA TERMINALS ARE DEALING WITH THE ENERGY TRANSITION

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GULF ACTION EXPORTS • WORK CONTINUES TO ENHANCE HANDLING CAPACITY FOR HYDROCARBON EXPORTS FROM THE US GULF, WITH TWO NEW FACILITIES THAT OFFER MORE EFFICIENT OPERATIONS LATE DECEMBER SAW the commissioning of two new assets in Texas, designed to further expand export capacity for US hydrocarbons, as producers continue to increase production despite the market uncertainties driven by the Covid-19 pandemic and volatile oil and gas prices.

In the crude oil sphere, Buckeye Partners commissioned the second deepwater dock at its South Texas Gateway (STG) terminal at the mouth of the Corpus Christi Ship Channel and loaded its first cargo onto a VLCC. The terminal can now berth and load two tankers simultaneously, effectively doubling crude oil export capacity. Work is continuing to complete the new tankage at the site, due by the end

 TEXAS REMAINS THE FOCUS OF INVESTMENT IN TERMINAL CAPACITY AND LOADING FACILITIES

of the first quarter 2021, which will expand storage capacity to 8.6m bbl with a throughput capacity of 800,000 bpd.

“We are very excited to have achieved these important milestones at our new facility, enhancing STG’s and Buckeye’s ability to serve global energy markets,” says Buckeye Partners president/CEO, Clark C Smith. “STG’s new terminal, alongside our nearby Buckeye Texas Partners facility, will be instrumental in providing our customers with cutting-edge logistics solutions and in reinforcing the role of the Port of Corpus Christi as a top export location for US energy producers.”

Sean Strawbridge, CEO of the Port of Corpus Christi, comments: “The completion of the second dock and loading of its first VLCC cargo at the STG Terminal are significant milestones for Buckeye and the Port of Corpus Christi. As Texas moves into the next phase of economic

recovery from the Covid-19 pandemic, partnerships like those between the Port of Corpus Christi and its customers such as STG are critical to the continuance of American leadership in the global energy marketplace.”

STG is a joint venture between operator Buckeye (50%), Phillips 66 Partners and Marathon Petroleum (25% each).

GAS FROM THE GULF Meanwhile in Houston, Enterprise Products Partners and Navigator Holding completed their joint-venture ethylene export facility at Morgan’s Point with the commissioning of a 30,000-tonne refrigerated storage tank. The first cargo was loaded aboard the 21,000-m³ ethylene carrier Navigator Atlas on 23 December. The new tank facilitates faster loading and allows the terminal to reach its nameplate throughput capacity of 1m tonnes per year.

“Our fully commissioned Morgan’s Point ethylene export facility is the largest and most reliable supply source for waterborne ethylene in the world,” says AJ ‘Jim’ Teague, co-CEO of Enterprise’s general partner. “The terminal is backed by the supply of the entire US Gulf Coast via our growing ethylene midstream services, which include our open-access storage and market hub in Mont Belvieu. Our ethylene export, storage, and transportation services highlight our vision to provide midstream services for the petrochemicals industry that allow our customers to focus on their unique competitive advantages in the US and in growing international markets.”

“The commissioning of the Morgan’s Point terminal in the face of a year-long pandemic is testimony to the high-quality talent and dedicated team assigned to this project,” adds David Butters, executive chairman of Navigator Holdings. “We congratulate all employees and third-party contractors for the superb job in completing the export terminal on time and under budget. We expect the terminal to operate at capacity, utilising Enterprise’s vast interconnected ethylene platform, and to create strong demand for Navigator’s fleet of specialised ethylenecapable vessels.” www.buckeye.com enterpriseproducts.com

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A FRIEND INDEED ASSOCIATION • TRADE BODIES ARE NEVER MORE VALUABLE THAN IN TIMES OF CRISIS. THE UK’S TSA HAS HAD ITS HANDS FULL OVER THE PAST YEAR HELPING ITS MEMBERS NAVIGATE THE CRISIS THE PAST YEAR, when remote working became the norm and business conditions changed rapidly, was one when communication became a key competitive advantage. Those companies able to switch their operations to take account of the necessary social distancing measures were better prepared to remain active during unprecedentedly turbulent times.

The same could be said of their representative trade bodies, with many associations likewise leveraging the possibilities of today’s advanced and digitally enabled communications systems to keep in touch with their members, to keep them informed of important events and to continue to stand up for their interests. That was particularly crucial as governments around the world reacted in various ways, putting in place

hastily arranged provisions that could be potentially damaging to industries already struggling to keep up with developments.

Writing in the Association’s newsletter, Peter Davidson, executive director of the Tank Storage Association (TSA), which represents the interests of independent bulk liquids storage terminal operators in the UK and Ireland, reflected on the year just gone, which, for his members, presented not only the well documented Covid-19-related challenges but also the big unknown of the UK’s future relationship with the EU. The initial lockdown in the UK was something that no one had experienced before although, as Davidson said, the direct impact on TSA’s operations was minimal as its staff are used to working remotely. But

for TSA members, the lockdown required the rapid relocation of non-operational staff to home working and the implementation of strict measures to protect the health and safety of site workers, who were necessary to maintain operational continuity, especially as bulk liquids terminals were seen as essential assets in keeping the nation working.

ACHIEVING SUCCESS “At such times, information is key,” Davidson said. TSA immediately established a line of communication with the downstream oil team of the UK Department for Business, Energy & Industrial Strategy (BEIS) and has continued to keep its members informed and up to date through a weekly bulletin. Two calls a month were held with BEIS to raise and discuss significant issues, covering aspects such as the changeover to summer-grade gasoline, the relaxation of restrictions on hours of service for road tanker drivers, exemptions for testing and approvals, and extensions to industry initiatives such as the Petroleum Driver Passport (PDP) and Safe Loading Pass scheme.

“Our members have shown incredible planning, resolve and resilience through this challenging time,” Davidson added, “maintaining the flow of bulk liquids into and out of the UK. The response has also demonstrated the sector’s crucial importance to resilience within supply chains by providing additional storage for transport fuels while demand was supressed. I am confident that this response has been noted – and valued – by government.”

And, while its focus has been very much on dealing with the effects of the pandemic since March 2020, TSA has also been active in other areas, responding to consultations on such issues as the UK Global Tariff, the proposed freeports, the challenge of post-pandemic economic growth, ‘red’ diesel, the 2025 UK Border Strategy, and business rates.

Davidson anticipates another busy year in 2021, with industry having to come to terms with the UK having finally left the EU, and the anticipation of a renewed focus on decarbonisation and the energy transition. www.tankstorage.org.uk

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OT OUT OF SA PLAN

Oiltanking Grindrod Calulo has pulled out of the Ngqura project in South Africa, saying that it “has not been able to achieve a commercially viable business case” for the proposed terminal development. “The evolving market and commercial requirements for a reduced terminal capacity and land could not be accommodated in the parameters of the TNPA procurement process,” the company states.

Oiltanking Grindrod Calulo, a joint venture involving Oiltanking, Grindrod and Calulo Investments, was awarded preferred bidder status in 2011 by Transnet National Ports Authority (TNPA) to develop a bulk liquids storage terminal in the port of Ngqura; the plan was that this should replace the existing fuel import terminal in Port Elizabeth. www.oiltanking.com CASH FOR STATIA

Prostar Capital has secured a $15m coinvestment from an unnamed institutional infrastructure investor, building on a previous commitment that will see the investor take a minority shareholding in GTI Statia, the crude oil and refined products terminal on

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the Dutch Caribbean island of St Eustatius (above). The investment will help accelerate a $100m programme to improve the site over the next two years, which includes tank refurbishments and upgrades to marine infrastructure. Prostar and GTI Statia intend to increase the in-service capacity at the terminal to attract several new customers.

The plan aims to improve the facility’s flexibility, a critical factor for storage operators, by enabling the transition to low-sulphur marine fuel as dictated by the IMO 2020 regulations.

The investment is also expected to increase the demand for local skilled labour and to attract a key workforce to the island in order to optimise the terminal.

“We’re excited to receive this ongoing support from our investors as we embark on a shared vision to enhance the performance of GTI Statia’s existing infrastructure and attract new, global long-term customers that recognise the strategic value of this terminal in the global energy trading value chain,” says Steve Bickerton, senior managing director of Prostar Capital. gtistatia.com www.prostarcapital.com

JUBAIL TAKES CHEMTANK STAKE

Sabic and Vopak have agreed to sell a 20 per cent stake in their jointly owned Jubail Chemical Storage and Services Company (Chemtank) to Jubail and Yanbu Industrial Cities Co ( JYIC); on completion, Sabic will retain a 58 per cent holding and Vopak 22 per cent. The transaction is subject to regulatory approvals. JYIC is owned by the Royal Commission for Jubail and Yanbu and the deal is said to be in line with Saudi Arabia’s National Industrial Development and Logistics Programme.

Chemtank operates a 568,000-m3 tank terminal in the King Fahd Industrial Port in Al-Jubail and serves the local petrochemical plants, including Sabic and Sadara. www.vopak.com IMTT CHANGES HANDS

Macquarie Infrastructure Corp (MIC) has agreed to sell its International-Matex Tank Terminals (IMTT) business to an affiliate of Riverstone Holdings for some $2.685bn in cash and assumed debt. The deal is expected to close in early 2021, subject to approvals and other conditions. IMTT owns 19 bulk liquids storage terminals in the US and Canada.

STORAGE TERMINALS 33

“We are pleased with the result of our efforts to sell IMTT against the challenging backdrop created by the Covid-19 pandemic,” says Christopher Frost, MIC’s CEO. “We have achieved a favourable outcome for MIC shareholders consistent with our strategy of unlocking value via sales of our operating businesses.” www.imtt.com KOOLE HOT FOR BOTLEK

Koole Tankstorage Botlek Holding is to build an 80,000-m3 tank storage terminal in Rotterdam to handle oils and fats for Marvesa Supply Chain Services. The development will include offices and garage facilities for the operations of Marvesa Tank Transport and will be located next to the existing Koole terminal in the Botlek area of the port.

“For the Marvesa Group, this is an important next step in realising our growth strategy, having available a fully dedicated tank storage terminal operated by the Koole team, with direct deep water and road access at a unique location in the port of Rotterdam,” says Bart de Bruycker, Marvesa Group CEO (below).

“This will allow us to even better and more efficiently serve our international customer and supplier base. Last but not least, the set-up of the new tank storage terminal fully

supports our base fundamental that our products will always meet the requirements of all relevant quality standards.”

“I am thankful and proud that Marvesa choose Koole Terminals to develop and build this unique terminal project. Using state-ofthe-art technics in our design, that will enhance safety of our operations, but also increase truck loading efficiency, vessel handing and customer care,” adds John Kraakman, CEO of Koole Terminals. “This new Rotterdam terminal fits also very well in our sustainability ambition; this additional capacity enables us to strengthen our position in the storage and handling of feedstock for the production of renewable energy products together with our supply chain partners.” koole.com ODFJELL BUYS KOREA SHARE

Odfjell has agreed to acquire Lindsay Goldberg’s 24.5 per cent shareholding in Odfjell Terminals (Korea) for $19m. On completion, Odfjell will control 50 per cent of the company, which operates a 313,710-m3 chemical terminal in Ulsan, alongside local partner KPIC. Last year it generated a net profit for Odfjell of $0.7m on its $2.2m share of revenues.

“We are pleased to have reached an agreement with LG to acquire their stake

in OTK,” says Kristian Mørch, Odfjell’s CEO. “OTK is a high-quality terminal and represents a good fit with our strategy for Odfjell’s terminal division. As such, this is another milestone in completing the restructuring of our terminal portfolio and our strategy to focus on chemical terminals where we can harvest synergies with Odfjell Tankers or have another angle for further value creation by Odfjell. The acquisition will have a positive effect on results, return and cash flow for Odfjell SE, and also ensure a simple and efficient governance structure for OTK.” www.odfjell.com PHIL COASTAL’S NEW OWNERS

Philippine Coastal Storage & Pipeline Corp (PCS), which operates the largest petroleum products import storage facility in the Philippines, is set to change hands. Current owner Philippine Investment Alliance for Infrastructure (PINAI) has agreed to sell the terminal’s parent company, Philippine Tank Storage International (Holdings) Inc, to Keppel Infrastructure Fund Management (KFIM) and Metro Pacific Investments Corporation (MPIC).

Under the agreed deal, KFIM’s Keppel Infrastructure Trust (KIT) will pay $267.0m for an 80 per cent share, with the remaining 20 per cent going to MPIC, though there is also an option for MPIC to increase its shareholding.

Matthew Pollard, CEO of KIFM, says: “As the largest petroleum products import storage facility in the Philippines, where demand for petroleum products is expected to grow, PCS presents an attractive opportunity for KIT to capture opportunities arising from the strong macroeconomic outlook as well as robust growth fundamentals for imported petroleum products in the Philippines.”

PCS operates three tank farms and one marine terminal in the Subic Bay Freeport Zone and is currently engaged in an expansion project that will take total storage capacity up to some 6m bbl early in 2021. The change of ownership is expected to be completed in January. www.philcoastal.com www.kepinfratrust.com

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BIG IN BRAZIL RECONDITIONING • THE WORLD OF INDUSTRIAL PACKAGING IS NO STRANGER TO THE CIRCULAR ECONOMY CONCEPT. SCHÜTZ VASITEX IS EXPANDING ITS CAPABILITIES IN BRAZIL

drums and canisters at the Schütz Vasitex headquarters, located some 3 km away.

“The investment in this comprehensive plant expansion in Brazil is in line with our strategy of responding to the current requirements of customers from a wide range of industries around the world,” says Schütz.

“Schütz Vasitex offers the right packaging solution for every application. The company supplies the markets with its comprehensive product portfolio of IBCs, drums and a wide range of different types of canisters.

“As an added bonus: Schütz Ticket Service unites the advantages of a manufacturer-led, environmentally friendly collection system for empty containers and their subsequent processing in state-of-the-art facilities.”

EXTENSIVE INVESTMENT OVER recent months has doubled reconditioning capacity at Schütz Vasitex, the Brazilian wing of industrial packaging giant Schütz, based in BonsucessoGuarulhos near São Paulo. The work not only involved the expansion of the site itself but also optimisation of internal logistics, the production of high-quality HDPE recyclate from used inner bottles of composite intermediate bulk containers (IBCs), reprocessing of steel cages and base plates of IBCs and the loading of reconditioned containers. All this is helped by the Schütz Ticket Service, which ensures the return of used IBCs. In addition, a new automated three-layer blow-moulding machine is used to produce new inner bottles, which are fitted into

Schütz notes that the site, which is certified according to ISO 14001 and OHSAS 18001, is also the only facility in Brazil so far to be authorised by the country’s environmental authorities to recycle unrinsed, contaminated agrochemical packaging. Another part of its operations is to produce F1 RECO tight-head drums, manufactured from 100 per cent recycled materials. This too has been recognised by the Brazilian National Institute of Metrology, Standardisation and Industrial Quality as complying with national regulations and safety standards.

THE RIGHT PACKAGING The investment allows Schütz Vasitex to

DOUBLE WALLS Schütz has also been working on improving the safety of its IBCs used in the food supply chain, adding an integrated liner that ensures maximum purity; this is also suitable for industrial users who have particular cleanliness and hygiene requirements.

The new ‘Dualprotect’ system is used in

reconditioned cages and returned to the market as Recobulk IBCs.

pool its most important reconditioning and recycling activities, expand its capacities for sustainable packaging and increase flexibility and supply security for its customers in one of South America’s most important industrial regions. The reconditioning plant also complements production of new IBCs, plastics

the Ecobulk IBC to complement the Foodcert and Cleancert labels.

Liners are pre-installed at the factory and IBCs are UN-approved for use with dangerous goods. The liner is welded to the container’s outlet valve and consists of a high-quality LDPE film that includes an ethylene vinyl

 SCHÜTZ IS INVESTING HEAVILY IN NEW RECONDITIONING FACILITIES AROUND THE WORLD

HCB MONTHLY | JANUARY 2021

INDUSTRIAL PACKAGING 35

alcohol (EVOH) permeation barrier. Used in conjunction with the standard inner bottle, this provides double leakage protection.

Together with an additional mantle, the filling product is almost hermetically sealed, effectively preventing a skin from forming on the product and removing the need for a nitrogen blanket. For use in the food, pharmaceutical and personal care sectors, the liner and outlet valve can be gammaradiated for additional hygiene protection.

Liners are adapted for specific filling products and applications. The IBCs can be filled via the outlet valve, eliminating the need for a large top opening, or through the top opening using a special hose attached to the liner. In such cases, a filling lance is not necessarily required.

If necessary, the liner can be replaced by the user. Schütz has produced an extensive video to help with this process, as well as to explain the other novel features in the design, available at www.schuetz.net/instructions.

When removing the liner from below through the outlet opening, the outlet valve should be closed. The liner can then be pulled out together with the valve, which is welded to it. If the liner is being removed from the top, the outlet valve and adapter flange must first be pulled out of the IBC slightly and the liner sealed with a cable tie. This prevents product leakage when the foil is cut between the

valve and the cable tie. The IBC is then tilted backwards and the liner is pulled out through the filling opening.

In keeping with Schütz’s commitment to sustainability, these new Dualprotect IBCs can be returned through the Schütz Ticket Service for environmentally friendly reconditioning after use. www.schuetz.net

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HCB MONTHLY | JANUARY 2021

INDUSTRIAL PACKAGING 37

NEWS BULLETIN

INDUSTRIAL PACKAGING

MAUSER ENHANCES REUSABILITY

Mauser Packaging Solutions has completed the first phase of expansion at its Erkelenz site in Germany, with new productions space having been completed in the summer. This is now home to a new IBC wash line and an automated IBC rebottling line, providing sustainable IBC cleaning services in close proximity to major customers in the region. In addition, Mauser has increased post-consumer resin (PCR) production capacity, with the Recolene produced in-house now used in the manufacture of the Infinity series of IBCs, drums and other containers.

Work has now started on another phase of expansion, with an additional IBC manufacturing line and IBC cage production unit due to be fully operational by the end of the third quarter 2021.

Elsewhere, Mauser reports that the DrumGuard® load securing system, developed in partnership with Strauch GmbH, has received an Honorable Mention for Advancement in Industrial Distribution Systems from Dow at its recent Packaging Innovation Awards. The DrumGuard system, which consists of only two components, secures four steel drums on a pallet by connecting them at the chime. It reduces the time needed by 95 per cent compared to

traditional load securing methods, Mauser says, and avoids the need for single-use plastics such as stretch wrap and strapping.

“The quality of innovations we saw in the 2020 Packaging Innovation Awards is remarkable, especially considering that the entry process had virtual components this year for the first time,” said Diego Donoso, business president for Dow Packaging & Specialty Plastics. “I’m inspired that the packaging industry continues to move sustainability and innovation forward even during complicated times. All winners should be proud of their accomplishment.” www.mauserpackaging.com GREIF LOOKS GOOD

Greif has reported net income of $44.4m for the three months to end September, down from $65m a year ago. For Greif ’s fiscal year, net income dropped from $171.0m in 2019 to $108.8m with adjusted EBITDA down $16.3m at $642.6m, despite an increase in both net cash generation and free cash flow.

“Through our focus on customer service excellence and disciplined operational execution, the team delivered solid financial results, strong cash flow and significant debt reduction in

a challenging operating environment,” says Pete Watson, Greif ’s president/CEO. “I am particularly pleased with our team’s results in reducing working capital, which created a strong source of cash in the fiscal fourth quarter that helped drive our fiscal 2020 adjusted free cash flow well higher than our previously announced forecast.”

Greif ’s Rigid Industrial Packaging & Services division (below) saw annual sales fall by $39.9m to $579.1m, as a result of both lower volumes and lower average sale prices, reflecting a fall in raw material costs. Gross profit was only lightly impacted and adjusted EBITDA actually rose by $4.2m to $65.3m.

“Looking ahead,” Watson continues, “while downstream industries are gradually ramping back up, there remains lingering uncertainty in the global economy. We are committed to managing those areas within our control to navigate successfully through these uncertainties.

Greif is well positioned to benefit as the economy further recovers.” www.greif.com THIELMANN JOINS THE ULTRAS

Thielmann has introduced an innovative double-wall drum designed for highly dangerous and corrosive goods. It consists of an outer drum constructed from 316L stainless steel and an inner drum made of a nickel-copper alloy that is extremely resistant to corrosion. Between the two layers in an inert shock absorbing material, which ensures the protection of the contents and satisfies the requirements of packing instruction P804, applicable to the transport of UN 1744 bromine and bromine solution.

“Thielmann’s Ultra Secure Dangerous Goods Container comes in many industry-ready formats and can also be customised to meet our customers’ unique requirements, such as with different fittings and size options,” the company states.

Thielmann also says this ‘first of its kind’ UN-approved packaging meets all the criteria for the storage and transport of highly toxic and extremely flammable substances, including highly corrosive chemicals, acids and corrosive agents, listing such chemicals as UN 1738 unstabilised benzyl chloride, UN 1752 chloroacetyl chloride, UN 1939 phosphorus oxybromide and UN 1808 phosphorus tribromide. thielmann.com

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38 COURSES & CONFERENCES

CONFERENCE DIARY The global Covid-19 pandemic has caused the cancellation or postponement of many events planned for the next few months and many organisers are taking their events online. HCB is doing its best to keep on top of developments but readers should check the dates and locations shown below as things change rapidly.

JANUARY

MARCH

European Oil Storage Conference January 21, online Platts’ 14th annual conference on oil markets for terminal owners, ports, oil traders, financiers and analysts https://plattsinfo.spglobal.com/

Tanks and Terminals 2021 March 16-18, Dubai Conference and workshop on integrity management of aboveground storage tanks www.marcusevans-conferences-middleeastern.com/

COHMED January 25-28, virtual Annual conference of the Cooperative Hazardous Materials Enforcement Development (COHMED) programme https://cvsa.org/eventpage/events/cohmed-conference/

FEBRUARY SMM February 2-5, virtual 29th biennial exhibition and conference for the global shipping industry http://smm-hamburg.com/en NACD Regulatory Trade Workshop February 9-11, online Webinar on trade issues for North American chemical distributors www.nacd.com/education-meetings/meetings/ regulatory-workshops/ GPCA Forum February 10-11, Dubai 15th annual meeting of the Gulf Petrochemicals & Chemicals Association www.gpcaforum.net Battery Recycling Europe February 17-18, London Conference for the battery recycling and manufacturing sectors www.wplgroup.com/aci/event/battery-recyclingeurope/

LNG Congress Russia March 17-18, Moscow Seventh annual congress and exhibition on developments in Russian and Arctic LNG www.lngrussiacongress.com/en BADGP March 25, online Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/event-4095748

APRIL AFPM Annual Meeting April 11-13, San Antonio AFPM’s annual meeting for refiners and marketers www.afpm.org/events/292be90000010c CVSA Workshop April 18-22, Louisville Meeting for industry, regulators and enforcers to improve commercial vehicle safety www.cvsa.org/eventpage/events/cvsa-workshop/ AFPM Security Conference April 19-21, Houston Conference on security at fuel refining and petrochemical plants www.afpm.org/events/292d4a0000075d

MAY

IOSC 2021 May 10-14, virtual International Oil Spill Conference iosc.org Bulk Tanker Day May 11-12, Brisbane 12th annual road tanker event hosted by the National Bulk Tanker Association www.nbta.com.au/tankerday/ ChemUK 2021 May 12-13, Birmingham Supply chain expo and conference for the UK chemical industry https://www.chemicalukexpo.com/ Pumps & Valves Asia May 12-14, Bangkok Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com World LNG Series: Asia Pacific Summit May 17-20, Kuala Lumpur 12th annual meeting for LNG buyers and sellers https://asiapacific.cwclng.com/ International Transport & Logistics Week (SITL) May 18-20, Paris Annual transport event, including Dangerous Goods Logistics Pavilion www.sitl.eu/en-gb.html Chemspec Europe May 19-20, Frankfurt International exhibition for fine and speciality chemicals https://www.chemspeceurope.com/2021/

International Petroleum Week (IP Week) February 23-25, virtual Annual week of meetings, conferences and seminars www.ipweek.co.uk

NTTC Annual Conference May 2-4, Washington, DC 72nd annual conference and exhibition of the National Tank Truck Carriers https://www.tanktruck.org/Public/Events/ Annual%20Conference%20and%20Exhibits/Public/ Events/Annual-Conference---Exhibits.aspx

UKIFDA Expo 2021 May 19-20, Liverpool Annual exhibition for the fuel distribution sector in the UK and Ireland (formerly FPS Expo) https://ukifda.org/ukifda-expo/

PPC Spring Meeting February 28-March 2, Tampa Bi-annual meeting and tradeshow of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php

Transport Logistic May 4-7, Munich Biennial exhibition for logistics, IT and supply chain management http://www.transportlogistic.de/index-2.html

AFPM IPC May 23-25, San Antonio AFPM’s annual International Petrochemical Conference www.afpm.org/events/2926d800000001

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COURSES & CONFERENCES 39

NEW FOR 2021 FORUM • GPCA IS HITTING THE POST-PANDEMIC GROUND RUNNING, WITH A HIGH-PROFILE LINE-UP OF SPEAKERS DUE TO DISCUSS THE FUTURE AT ITS 15TH ANNUAL FORUM THE GULF PETROCHEMICALS and Chemicals Association (GPCA) has announced a special edition of the 15th Annual GPCA Forum, taking place on 10 and 11 February 2021 at the Madinat Jumeirah in Dubai, to look at how the industry will go forward in a post-pandemic world. Under the theme ‘Leadership in the New Reality – Catalysing Sustainable Growth in the Chemical Industry’, the event is set to attract senior industry executives from more than 50 countries to discuss the opportunities that lie ahead.

The Covid-19 pandemic led to plunging petrochemical prices, eroding margins, and depressed demand during the first two quarters of 2020. The regional chemical industry in the Middle East started to bounce back in the third quarter but has not recovered fully yet. Despite earnings being negative, the third quarter closed with net income growth for the majority of listed chemical producers in the Gulf Cooperation Council (GCC) area, which posted an average net income growth of 78 per cent.

As the chemical industry emerges from the devastating impact of the coronavirus pandemic, leadership in the new reality will become front and centre to companies’ journey towards success in 2021 and beyond.

The Annual GPCA Forum will provide renewed perspectives from across the world on key issues that remain at the

leveraging technology post-crisis, what value creation will look like in a changing landscape, the need to upskill the workforce of the future, build supply chain resilience and drive positive sustainability results.

WHO’S WHO Over the last decade and a half, the Annual GPCA Forum has established itself as the most anticipated downstream industry event and it promises to deliver again with a compelling programme featuring an impressive line-up of speakers from all over the region and the world.

Confirmed speakers include Yousef Al-Benyan, CEO of Sabic and chairman of GPCA; Ilham Kadri, CEO of Solvay; Dr Markus Steilemann, CEO of Covestro and chairman of PlasticsEurope; Dominic Waughray, managing director of the World Economic Forum (WEF);

Ahmed Saleh Al Jahdami, downstream CEO of OQ; Dr Faisal Al-Faqeer, CEO of Sadara; Mosaed Al Ohali, CEO of Ma’aden; Dr Ahmed Ali Attiga, CEO of Apicorp; and Rayan Fayez, managing director and CEO of Banque Saudi Fransi.

Dr Abdulwahab Al-Sadoun, secretary general of GPCA, says: “The Covid-19 pandemic has presented unimaginable challenges to the chemical industry the world over and redefined the priorities, business strategies and metrics for success for today’s organisations. How can chemical companies safeguard their competitiveness in 2021 and beyond? How can Arabian Gulf producers remain in the driving seat of innovation and global market leadership? What is the recipe for success on sustainability, digitalisation, workforce development and value creation for shareholders with long-term returns?

“The Annual GPCA Forum will provide a platform to debate and answer these key questions and more, and share lessons learned from the region and the world as we come together to navigate through the new reality in the post-pandemic era and build a more resilient future for our industry, society and planet.”

Full details of the event can be found at https://gpcaforum.net.

forefront industry leaders’ thinking, including

 THE ANNUAL GPCA FORUM WILL ONCE AGAIN ATTRACT THE VERY HIGHEST LEVEL OF SPEAKERS

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40

INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Details

Source

29/10/20

Nong Ki, road tanker fuel Buriram, Thailand

Vehicle Type

Substance

Road tanker with 40,000 litres fuel ran into rear of truck after driver fell asleep; tanker exploded, spilling burning fuel into drains, spreading fire to homes, shops over 1 km; road closed for 5 km; many injuries

Bangkok Post

29/10/20

Mauriceville, freight train chemicals Texas, US

25 cars of freight train derailed, 15 with chemicals; four cars leaked petroleum products; responders more concerned with tank car leaking corrosive chemical; nearby schools, businesses evacuated

Ft Worth Star-Tel

5/11/20

Panjgur, road tanker oil Balochistan, Pakistan

Road tanker skidded after hitting motorcycle rickshaw on national highway, overturned, caught fire and exploded; fire spread to surrounding area; two people on rickshaw injured; fire out after a few hours

Xinhua

7/11/20

Lagos, road tanker gasoline Nigeria

Road tanker crashed on Kara Bridge section of Lagos-Ibadan Expressway, exploded; driver said tyre blew; two people died, 29 vehicles destroyed in fire; police chief called for fitting of safety valves on tankers

This Day

7/11/20

South Toledo, rail tank car styrene Ohio, US

Leak of styrene during loading of tank car at Global Chemical Resources plant; spilt product ran into sewers, was flushed out to treatment plant; locals urged to ventilate their homes

Toledo Blade

11/11/20

Covington, truck Kentucky, US

Truck carrying 110 lb (50 kg) potassium hydroxide collided with another truck on Brent Spence Bridge over Ohio River; responders found both trucks engulfed in fire; drivers escaped unhurt; road closed for days

CDL Life

12/11/20

Delmas, truck explosives MP, South Africa

Truck carrying explosives caught fire on R50; driver pulled up and warned other motorists to keep away; truck then exploded, leaving large crater in the road; no injuries, though some were shaken by the blast

The South African

12/11/20

Mkuranga, road tanker fuel Coast, Tanzania

Road tanker struck minibus stopped to pick up passengers; three killed, including two primary school pupils, Xinhua 19 injured; no indication of fire on tanker

16/11/20

Nayarit, road tanker LPG Mexico

Double tanker carrying LPG lost control, overturned on highway, caught fire and exploded; at least 12 people, including driver and those in other vehicles, were killed; debris was blown into nearby fields

AP

16/11/20

nr Vladimir, freight train crude oil Russia

35 tank cars of oil train derailed, spilling oil over area of 12,500 km²; one person reported killed; nearly 300 people, 46 pieces of equipment deployed in response and cleanup; police opened criminal case

TASS

16/11/20

Turaif, road tanker LPG NB, Saudi Arabia

Road tanker overturned on international highway in Northern Borders province; no injuries reported; some release of LPG cargo; local police investigating

Gulf News

20/11/20

nr Satsuma, road tanker hazmat Louisiana, US

Tank truck with unidentified hazmat suffered tyre blowout on I-12, crashed into rear of police car carrying out KATC speed monitoring; tanker exploded; driver and one state trooper injured; no evacuations necessary

23/11/20

nr Goshen, freight train California, US

Six tank cars in UP train derailed; four had butane, two hydrochloric acid, at least one of which leaked; nearby Highway 99 closed, homes evacuated; no injuries; cause under investigation

Fresno Bee

24/11/20

Tongchuan, road tanker chemicals Shaanxi, China

Road tanker with unidentified chemicals was involved in a crash with 40 other vehicles on Baomao highway in icy, foggy conditions; fire did not reach tanker; three people killed, six injured in crash

SCMP

26/11/20

Ghimpati, road tanker caustic soda Giurgiu, Romania

Bulgarian road tanker carrying caustic soda overturned on exit on DN 5 B highway, spilling load to road; driver not badly hurt; area secured by fire crews; police investigating

Romania press.com

28/11/20

Vadodara, road tanker Gujarat, India

Road tanker overturned on NH-48 after driver braked to avoid passing coach; 4 tonnes of 50-tonne acid cargo leaked; driver suffered acid burns to leg; area cordoned off by responders until wreck could be moved

Times of India

potassium hydroxide

hydrochloric acid

sulphuric acid

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Vessel

Details

Source

24/10/20

Azov Sea, Russia

General Hazi — Aslanov

Three crew missing after explosion on tanker (6,440 dwt, 2005), in ballast, en route Rostov; blast thought to have happened during maintenance work, possibly involving welding, that ignited residual vapours

TASS

30/10/20

off Ashkelon, SBM crude oil Israel

Several cubic metres light crude were released to sea after malfunction on single-buoy mooring during hose decoupling from tanker Rava (114,400 dwt, 2017); response team sealed leak, applied dispersants

Maritime Executive

1/11/20

Yalova, Sri Asih — Turkey

Five workers injured by explosion aboard tanker (109,600 dwt, 2005) during repair work; thought that hot work in tank may have ignited vapours from oil residues

FleetMon

10/11/20

Terneuzen, Somtrans XX unknown Netherlands

Inland tanker collided with similar Ursula Valentin, both heading towards Vlissingen; not clear what caused collision; water police started investigation; salvage teams not required

AD

HCB MONTHLY | JANUARY 2021

Substance

SAFETY 41

MISCELLANEOUS INCIDENTS Date

Location

Details

Source

30/10/20

nr Samawa, pipeline natural gas Iraq

Plant type

Substance

Three killed, 51 injured by explosion in natural gas line near military base in southern Iraq; supply was shut down and fire crews put blaze out; investigation underway; had been previous incidents in that region

Reuters

2/11/20

Tieshan, LNG terminal unknown Guangxi, China

At least five contract workers were killed by fire that broke out in LNG storage tank under construction as part Xinhua of second phase of PipeChina’s Beihai terminal; port was closed; not clear if existing operations were affected

3/11/20

Lanzhou, Gansu, China

Huge explosion badly damaged chemical plant; casualties unknown; images showed collapsed storage tank on fire, other tanks damaged

RSOE

4/11/20

Ahmedabad, warehouses chemicals Gujarat, India

At least 12 killed, many injured by explosion in godown used to store drummed chemicals; part of building collapsed, trapping workers; fire spread to nearby factories; owner suspected of illegal processing

PTI

5/11/20

Khalapur, Maharashtra, India

Two killed, eight badly hurt after explosion in reactor at Jasnova pharma plant; casualties were workers at adjacent factories; fire gutted entire plant, took five hours to extinguish

Times of India

5/11/20

Apapa, tank farm fuels Lagos, Nigeria

Fire broke out at OVH Energy’s Oando fuel depot, reportedly during maintenance on storage tank, possibly involving welding work; responders worked to prevent fire spreading to other storage tanks

Vanguard

12/11/20

Wuji, Hebei, China

At least seven workers killed in explosion at expanded polyethylene factory; blast led to major fire; county government instigated investigation; no other details provided

AP

19/11/20

nr El-Arish, pipeline natural gas N Sinai, Egypt

Islamic State group claimed responsibility for explosion on export pipeline carrying gas from Egypt to Israel; fire was quickly extinguished and officials said supply was not badly impacted

AlMonitor

23/11/20

Ikarama, oil fields Bayelsa, Nigeria

Unknown parties carried out attack on Shell and Agip facilities, including gas pipeline; locals reported several Premium explosions, resulting severe oil pollution; facilities were shut in immediately after attack; investigation started Times

3/12/20

Avonmouth, Bristol, UK

chemical unknown plant

pharmaceutical chemicals plant

polymer chemicals plant

crude oil, natural gas

water treatment chemicals plant

Three workers, one contractor killed by explosion in storage tank at Wessex Water treatment plant; victims were said to be on tank roof when it blew; tank was used to treat biosolids, possible build-up of gas

BBC

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42

CUT THE CLAIMS TANK CONTAINERS • ALL INDUSTRIAL ACTIVITY RAISES RISKS AND DEPOT OPERATIONS ARE NO DIFFERENT. ITCO’S LATEST WEBINAR OFFERED SOME INSIGHTS AS TO HOW THOSE RISKS CAN BE MANAGED

AS THE COVID-19 pandemic shows no sign of easing, representative trade associations around the world continue to leverage the possibilities offered by online meeting apps to keep in touch with their members. The International Tank Container Organisation (ITCO) is no exception and, following the formation of four work groups in 2019, held its third webinar this past 18 November, this time concentrating on safety in the use of tank containers and in depot operations.

introducing Mike Yarwood, managing director of loss prevention at TT Club, who put things into perspective, noting that the Club has insurable interests in around half of the global tank container fleet, both owned and leased. Overall, he said, tank containers have a very good safety record, with very few claims.

On the other hand, bodily injury claims can come expensive. While they represent only 2 per cent of claims by tank operators, they

ITCO secretary Patrick Hicks welcomed the more than 100 registrants to the event,

are often outside their control, taking place at depots or on the road, or involving third parties.

They typically involve people falling from height, being sprayed with product, or being involved in a road traffic accident. Still, TT Club has received only 21 such claims in the ten years to 2020.

 THE TANK CONTAINER SAFETY RECORD IS GOOD - BUT CAN ALWAYS BE BETTER

HCB MONTHLY | JANUARY 2021

Just under half of those claims represent road traffic accidents, and involve drivers or third parties being injured. Other claims show the risks that arise when people fail to follow procedures. Personnel being sprayed with product, for instance, rarely results from equipment failure; rather, such incidents happen when personnel do something they should not have done.

Two other persistent issues are injuries arising from working at height, where Yarwood said there has been no discernable improvement in the accident rate, and confined space entry; although there only a few of the latter incident, they can have significant consequences.

INFORMATION IS VALUE But, Yarwood continued, notified insurance claims give only part of the picture; what is needed is data on near-miss events.

He appealed to the industry to provide information so that a clearer picture can be created, which would help to drive safety improvements. He also noted that tank container operators have a duty of care and that they could be liable if a tank is not in good condition and causes an incident, for instance at a depot. Conversely, operators should also ensure they carry

SAFETY 43

out due diligence and check third-party facilities, such as depots, to ensure that their procedures comply with industry best practice.

Yarwood also warned that, in the event of a serious incident, it is vital to get insurers involved early. They need to have evidence and to be able to talk to the people involved, before they forget what happened.

Colin Rubery, ICTO’s technical secretary, asked if it would be useful to have a database of incidents. Yarwood said that knowledge drives the desire for change and, yes, such as database would be a good idea. There were no immediate volunteers to help establish such a database, however.

But there are some useful resources already available. Yarwood mentioned two of ITCO’s Technical Guidance documents on working at height (TG04) and safe tank entry (TG05); TT Club also has guidance

on working in confined spaces. These are “valuable resources”, Yarwood said, summing up with some questions that tank operators need to bear in mind.

Firstly, can working at height be avoided?

If not, how can it be made safer? A ‘permit to work’ system can help, especially in confined space operations – and remember that 60 per cent of fatalities in confined space incidents are would-be rescuers.

During depot operations, are all the necessary pieces of equipment – ladders, breathing apparatus, etc – and personal protective equipment available? Are they fit for purpose and well maintained? Have personnel been trained in their use?

Indeed, training is vital across the board.

All personnel need to be confident and competent to do their jobs. Rescue drills, especially for working at height and confined space entry activities, are also vital, as a fast response is important.

VIEW FROM THE DEPOT A valuable perspective on safety in tank depots was provided by Faris Al-Shali, HSE manager for Kanoo Tank Services (Sahreej), a joint venture between YBA Kanoo and Stolt Tank Containers that operates three depots in Saudi Arabia. He has a big job on his hands, he said, to keep on top of safety procedures, and to maintain Sahreej’s ISO 45001, 14001 and 9001 certifications, as well as the provisions of ‘Gulf SQAS’, the regional version of the Safety and Quality Assessment for Sustainability audit scheme.

Al-Shali agreed that working at height is a major issue. Sahreej employs a number of different controls, including full control harnesses for its personnel and easy access to tank tops via a platform. Its workers are also issued with shoes without laces, to reduce the trip hazard, and chemicalresistant, non-slip boots.

During tank entry procedures, two people are always present: one to enter the tank and one to keep watch; both have harnesses.

During tank heating, personnel do not need to spend much time on the tank, Al-Shali said, but they nonetheless are provided with a platform and harness. Sahreej facilities are also equipped with tank rotators to avoid the need for working at height during tank repair operations.

Importantly, employees must not only be physically fit but also mentally fit – it is no use expecting someone who is afraid of heights to work on top of a tank, Al-Shali said. In addition, Sahreej has a behaviourbased safety (BBS) training programme. It has also put in place a training programme that covers emergency drills, to help its workforce get used to the idea of using breathing apparatus while working at height or entering tanks – and, quite importantly, how to get in and out of a manhole while wearing such apparatus.

Continuous training aims to address unsafe behaviour during working at height, Al-Shali continues. This also gives employees the opportunity to raise problems and suggest improvements to work practices.

New employees are not allowed to work at height until they have completed this

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training. It is also important to remember that the trainers themselves need to be trained, and Sahreej has a programme of out-of-house train-the-trainer courses in place.

Al-Shali is often seen out and about in the company’s depots: he said it is important to observe employees in action to ensure they are complying with the established procedures. One-to-one training is offered to those who need remedial action.

“Has this programme made Sahreej more efficient?” Al-Shali asked. Management can see that its employees respond well to in-house training and, though there is a cost, it is seen as worthwhile. “We don’t take safety lightly,” he said. But tank container operators have their part to play: provide a safe tank and don’t rush the process, he urged.

THE OPERATOR’S EYE Responding to that call was James Rawlinson of M&S Logistics, who noted that cleaning stations operate daily with a certain element of risk. Tank container operators

expect those risks to be managed. In general, he said, most cleaning stations have good health and safety standards in place and these standards have improved immensely over the years. Unsafe practices have largely become obsolete. It is now not unreasonable to assume that cleaning stations are operating safely – but operators cannot afford to be complacent. Tank depots vary widely in design and also in terms of their standards.

The design of the best cleaning stations is based on what has been learned from mistakes made in the past, Rawlinson said. Good facilities generally have a safety manager, a quality manager and ISO and/or SQAS accreditation.

There are, though, still some parts of the world where it is impossible to find cleaning stations that meet the standards expected, Rawlinson continued. This places the operator at risk and creates a liability.

Operators need to proactively manage their use of cleaning stations and balance the need for cleaning with the risk involved.

If nothing of a good standard is available,

then the operator must be able to demonstrate that a full risk assessment and risk mitigation has been carried out if the liability is also to be mitigated.

Echoing Al-Shali’s closing words, Rawlinson noted that good, clear communication between the tank operator and the depot is vital. Full information, including a current and accurate safety data sheet (SDS) must be provided in advance. Responsible operators do this, and establish an open communication chain with the depot.

Operators also need to be aware that all cleaning stations have restrictions on what they can handle and, again, this information needs to be available to the tank operator. Thankfully, Rawlinson said, wilful misdeclaration of a tank’s last load to get around such restrictions is very rare.

Having established the liability that tank container operators have when it comes to depot operations, Rawlinson had this to ask: How can the operator check? All operators should carry out regular audits, he advised.

Is the handling equipment – forklifts, cranes, etc – appropriate to the work to be done and in good condition? Such equipment should be inspected annually by a verification body, he noted. Operators should check and review SQAS audit reports but, Rawlinson added, be aware that these take a fairly narrow approach and may not cover all the elements relevant to each operator.

Rawlinson considered that ISO 9001 represents a good foundation but that ISO 45001 provides a better indication of a depot’s safety management procedures.

The tank operator may still, though, need to carry out its own audit in order to fulfil its own risk management processes.

Bringing proceedings to a close, ITCO president Reg Lee reported that more than 4,000 tank container e-learning courses have now been delivered. ITCO members are, he said, taking the opportunity provided

by Covid-19 restrictions to get their people trained remotely. Finally, wishing attendees a ‘Happy New Year’, he noted that the fourth ITCO webinar, focusing on efficiency, will be held in January; more details can be found on the ITCO website, www.itco.org.

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THE US NATIONAL Transportation Safety Board (NTSB) has concluded its investigation of the August 2017 derailment of a CSX Transportation freight train on a grade crossing near Hyndman, Pennsylvania and determined that the probable cause was the inappropriate use of hand brakes on empty rail cars to control the train’s speed, together with the placement of blocks of empty cars at the front of the consist.

The train consisted of five locomotives and 178 cars, of which 50 were empty. Of the loaded cars, 70 contained hazardous materials and the train was classified as a Hazardous Material Key Train. Three derailed tank cars with hazardous materials were breached in

injuries or fatalities, a one-mile evacuation zone was established, affecting some 1,000 residents, and several grade crossings were closed.

It was determined that the fire started in a propane tank car that was involved in the derailment and had been punctured in several places, causing response personnel to move away from the site. Molten sulphur spilled from another car, which was also burning, and molten asphalt spilled from an open bottom outlet valve on another. Other hazmat cars contained ethanol, heptane, sodium chlorate and phosphoric acid.

HOW IT HAPPENED

air leak on one car towards the rear of the train and CSB sent two mechanics to fix the problem. A relief crew took over and told CSX’s office that they would release the hand brakes when the train reached the bottom of the grade; NTSB notes that CSX is the only Class 1 railroad that allows its engineers to use hand brakes to control a train’s downhill descent.

In the event, the train’s crew found they needed to release 25 of the hand brakes before the train would move. The train then continued downhill at a speed of between 20 and 30 mph until the 35th car derailed on a grade crossing.

NTSB found that the placement of blocks of empty rail cars at the front of the train consist generated elevated longitudinal forces and increased lateral forces at the wheel/rail interface and tread build-up on the 35th car.

NTSB also says that an effective risk reduction or system safety programme would have likely led CSX to identify the risks that led to the accident and provide an opportunity to mitigate those risks.

The Federal Railroad Administration’s (FRA) recently enacted requirement for risk reduction and system safety programmes provides a similar opportunity, although NTSB says FRA has not yet provided sufficient guidance to railroads on the development of those programmes, which the railroads are due to submit to FRA for review and approval by 16 August 2021.

NTSB also says: “The railroad industry would benefit from an industry-led effort to develop best practices and implementation guidance for risk reduction programmes.”

One of the recommendations arising from its investigation is that the Association of American Railroads (AAR) should take a lead in this process.

NTSB also recommends that CSX revise its rules for building train consists so that large blocks of empty cars are placed towards the rear of the train, and to prohibit the use of

the derailment, leading to a fire that damaged three nearby homes. While there were no

NTSB’s investigation found that, on the day prior to the derailment, the train’s engineer had experienced an increase in brake pipe pressure, indicating an air leak. The train was stopped and the conductor applied hand brakes on 58 cars, as required by CSX operating rules. The conductor also found an

hand brakes on empty cars for the purpose of controlling train movement in grade territory.

NTSB’s investigation also highlighted some hidden hazards caused by fire-exposed jacketed pressure tank cars and has asked the Security and Emergency Response Training Center to look at the issue.

BRAKE IN PROCEEDINGS INVESTIGATION • NTSB’S REPORT ON THE 2017 HYNDMAN DERAILMENT HIGHLIGHTS THE NEED FOR RAILROADS TO TAKE ACTION TO DEVELOP RISK REDUCTION AND SYSTEM SAFETY PLANS

 NTSB’S INVESTIGATION REVEALED AREAS WHERE SAFETY CAN BE IMPROVED

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IN AND OUT CLUB PRODUCT TRANSFER • BUTADIENE MUST BE HANDLED WITH CARE. CEFIC HAS BEEN LOOKING AT REDUCING THE RISK OF EXPOSURE DURING THE LOADING AND UNLOADING OF TANK CARS

BUTADIENE IS A starting point for a number of value chains, not least synthetic rubbers, and as such is produced and transported in large volumes. Data from the European Chemical Industry Council (Cefic) put crude C4 output from steam crackers in the EU-15 countries at some 6.4m tonnes in 2015, with production of 1,3-butadiene put at 1.9m tonnes. Of that, around one quarter of the butadiene output – 0.5m tonnes – was transported by rail.

Butadiene is considered to be carcinogenic, mutagenic and a persistent bio-accumulating toxic product. As such, the European Commission included butadiene – not just

revised Carcinogenic and Mutagenic Directive (CMD). This placed a community-wide occupational exposure limit (OEL) of 1 ppm, although some countries are more restrictive – Sweden, for instance, has an OEL of 0.5 ppm.

In the production process, butadiene is handled in closed systems to limit the risk of exposure to workers. However, operators can be directly exposed to butadiene when connecting or disconnecting rail tank cars.

Cefic’s Lower Olefins Sector Group (LOSG) has been looking at the risks and, in a guidance document issued this past September, lays out some recommendations on the best types of couplings to be used

pure 1,3-butadiene but any stream containing more than 0.1 per cent by volume – in the

during product transfer.

 AS WITH MANY OTHER PRODUCTS, IT IS DURING TRANSFER OPERATIONS THAT THE RISKS OF BUTADIENE EXPOSURE ARE AT THEIR GREATEST

HCB MONTHLY | JANUARY 2021

WHAT ARE THE OPTIONS Cefic notes that there are three types of coupling used in Europe on tank cars for butadiene. In France and Belgium, screwtype couplings (Weco-ACME) are common,

whereas further east flange couplings (DN80/DN50) are typically used.

Cefic says both these couplings have inherent issues that can lead to an operator being exposed to butadiene. Flanges are a good solution if they are permanently attached but they are often installed and removed. Furthermore, they are cumbersome to handle and time-consuming to use, with each loading or unloading operation requiring up to 72 screw connections. Moreover, errors can be made in terms of bolt tension, worn gaskets and missing bolts. Such errors can result in the leakage of product and the exposure of workers to butadiene vapours. LOGS says it recommends that flange connections should not be used.

Its members have committed to phase them out by the end of 2025.

Weco couplings avoid the need for bolts and connection is a simple task; in the event of leakage, it is often sufficient to tighten the coupling by screwing it in a little more.

On the downside, a special wrench is required, which may not always be available.

Further, there are two different types of screw connector on the market, so sometimes there is an incompatibility. The dead space between the shut-off valve and the valve on the loading arms is larger than with the flange system, so in the event of a leak more material will be released. While appropriate measures can be used to overcome these disadvantages, in the real world mistakes can be made.

A third option is to use dry-disconnect couplings; these are more expensive but are simpler and faster to use, freeing up operators for other tasks and increasing throughput at the loading station.

Cefic’s guidance advises that Weco and dry-disconnect couplings both offer advantages over flange couplings. Whichever is chosen, Cefic also recommends the use of a breakaway coupling on the loading arm.

LOSG members plan to evaluate the benefits of eliminating flanges in butadiene transport before extending the guideline to cover other C3 and C4 olefinic streams; that will also give the opportunity to take into consideration current technological developments in product transfer operations.

SAFETY 47

In a common direction. On the other hand, and maybe even more important, this is only possible because Hoyer has a management who not only understands the importance of a well established quality management system but also drives and supports all employees in undertaking their daily duties. This is rarely seen with such clarity in other companies.”

OVER THE PAST three decades, systems have been put in place that aim to encourage continuous improvement in safety performance. In Europe, chief among these is the Safety and Quality Assessment for Sustainability (SQAS) scheme, developed by the European Chemical Industry Council (Cefic). SQAS allows assessed companies active in chemical logistics and related services to compare their performance over time and against other operators.

The Hoyer Group has kindly shared with HCB some details of its recent SHEQ performance benchmarking meeting, where it noted that

and even more difficult to compare. This is despite Hoyer’s commitment to public transparency and its development of more demanding and precise definitions concerning incidents. “Hoyer’s management focus is on being competitive against ourselves,” it said, both in terms of safety improvements over time and between different parts of the organisation.

The results of that focus were evident in Hoyer’s recertification last year to ISO 9001.

Eric Schlichter, the group’s SHEQ Forum manager, said that, “Considering the complexity of our business, the variety of controlled processes and interfaces and the

MEASURING PERFORMANCE ISO 9001 certification is a fundamental requirement for all companies active in the sector but does not provide any comparative performance indications. To do that, it is necessary to look elsewhere. For instance, during 2020, Hoyer’s tank cleaning affiliate, cotac, decided to measure itself against the key performance indicators (KPIs) used

by BG Holz und Metall, the representative organisation to which many of its employees belong. By July 2020, four of cotac’s seven European sites had been assessed against those KPIs, with some wide variations being recorded. This does, though, provide a clear indication of where changes need to be made.

More broadly across the Hoyer Group, SQAS ‘scores’ offer a clearer comparison. For instance, the average European tank cleaning SQAS score in 2019 was 79 per cent; the six Netlog cleaning stations assessed during 2019 recorded scores of between 81 and 92 per cent, all better than the industry average.

Likewise the average European chemical warehousing SQAS score in 2015 was 84 per cent; Hoyer’s two warehouses achieved scores of 92 and 94 per cent. The average chemical transport SQAS score in 2019 was 74 per cent, compared to results from six Hoyer Chemilog sites assessed during the year that ranged from 80 to 93 per cent.

Other recognitions are available and Hoyer was one of four supply chain operators (alongside Bertschi, Den Hartogh and H Essers) to be recognised by Dow under its 4Star award programme in 2020.

reliable and comparable SHEQ performance information is hard to find, difficult to interpret

network of many Hoyer locations all over the world, the potential for a big variety of non-conformities is very high. Yet there were only three minor non-conformities identified.”

Furthermore, Schlichter continued, “This success is only possible with a workforce who understands the business and pulls, as a team.

Hoyer’s performance benchmarking shows how complex the notion of measuring safety can be but, happily for the company, it also shows how well Hoyer is doing against its competitors. www.hoyer-group.com www.sqas.org

BEST AGAINST THE REST BENCHMARKING • TRAINING AND LEADERSHIP ARE FUNDAMENTAL TO GOOD SAFETY PERFORMANCE BUT KNOWING HOW AN ORGANISATION COMPARES IS NOT ALWAYS EASY

 EMPLOYEE PARTICIPATION IS A CRUCIAL PART OF CONTINUOUS SAFETY IMPROVEMENT

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CATCHING UP MULTIMODAL • THE JOINT MEETING’S AUTUMN 2020 SESSION HAD A LOT TO GET THROUGH. SOME DECISIONS WERE TAKEN BUT SEVERAL PROPOSALS WERE HELD OVER TO MARCH 2021 THE AUTUMN SESSION of the Joint Meeting of the RID Committee of Experts and the Working Party on the Transport of Dangerous Goods of the UN Economic Commission for Europe (WP15) took place between 10 and 18 September 2020, with a longer meeting to take account of the loss of the spring session due to Covid-19 restrictions. The decisions that were due to be made at the spring session and were held over to the autumn meeting were therefore too late for inclusion in the 2021 texts of RID, ADR and ADN, the regulations that govern the transport of dangerous goods by rail, road and inland

The meeting was chaired by Claude Pfauvadel (France) with Silvia Garcia-Wolfrum (Spain) as vice-chair. It was attended by representatives of 25 countries as full members and representatives of the European Commission, EU Agency for Railways (ERA) and 18 non-governmental organisations.

The first part of this report on the autumn Joint Meeting (HCB December 2020, page 58) concentrated on the discussions of the Working Group on Tanks and the decisions that it made that were approved in plenary. This second part of the report covers progress made by the Working Group on Standards and a number

waterway, respectively, and will have to wait until 2023.

of papers and proposals on the interpretation of the regulations and for their amendment.

 THE JOINT MEETING EXISTS TO ENSURE MODAL HARMONISATION IN EUROPE

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STANDARDS HCB readers may be aware of concerns expressed by the Joint Meeting that lack of funding is threatening the good cooperation

between it and the standards-setting organisations. The European Committee for Standardisation (CEN) and the European Committee for Electrotechnical Standardisation (CENELEC) now proposed to amend the procedure of cooperation, mainly to reflect the replacement of the CEN Consultant with a ‘Standards Adviser’, appointed by the Joint Meeting to provide assessments of draft CEN-CENELEC standards. John Williams has been appointed to act in this role, with funding provided by the European Cylinder Makers Association (ECMA), European Industrial Gases Association (EIGA) and Liquid Gas Europe (LGE), highlighting the importance of referenced standards to the gas cylinder industry.

It was stressed that all participants of the Joint Meeting are permitted to participate in the Working Group on Standards, whether or not their country is a member of CEN-CENELEC. CEN provided two papers summarising the recent activities of the Standards Working Group, including decisions reached at a virtual meeting on 2 September. Together with the report of that meeting, provided by the UK, a number of amendments were adopted in plenary.

In Note 2 to 6.2.3.5.1, “EN ISO 16148:2016 + A1:2020” replaces “EN ISO 16148:2016”.

In 6.2.4.1, under “for closures”, the end date

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for EN 13175:2019 (except clause 6.1.6) is changed from “Until further notice” to “Between 1 January 2021 and 31 December 2024” and a new row is added immediately after for EN 13175:2019 + A1:2020. The same change is made under “for equipment” for ADR only.

Also in 6.2.4.1, under “for design and construction” a new row is added for EN 17339:2020 Transportable gas cylinders – Fully wrapped carbon composite cylinders and tubes for hydrogen.

In the same table, the expiry deadline for EN 13953:2015 is changed from “Until further notice” to “Between 1 January 2017 and 31 December 2024” and a new row is added for EN 13953:2020.

At the end of 6.2.5.4.2, “EN 1975:1999 + A1:2003” is replaced by “EN ISO 7866:2012 + AC:2014”.

In the first row of the table in 4.1.6.15, “EN ISO 11114-1:2012 + A1:2017” is replaced by “EN ISO 11114-1:2020”.

EIGA arrived with a proposal to amend Note 3 to 6.2.3.5.1, regarding the rejection criteria for seamless gas cylinders and tubes, as per the newly adopted EN ISO 18119:2018, which appears in the 2021 versions of ADR and RID. Some delegates opposed the idea and others felt it was too early to make changes and that more information was necessary. EIGA promised to take the views of delegates into account in the framing of a follow-up proposal.

INTERPRETATION OF RID/ADR/ADN Finland sought to clarify the meaning of provision AP8 as it concerns UN 2794, Batteries, wet, filled with acid, waste or used. It requires that the design of the load compartment of vehicles/wagons or containers shall take account of any residual currents and impacts from the batteries. Both special provision 598, which applies to both new and used batteries, and packing instruction P801 require such batteries to be protected against short-circuits.

welcomed Finland’s questions and agreed to refer the matter to the working group on the transport of hazardous waste for further consideration.

Poland sought some guidance on 3.4.7.1, which requires the centre area of a label to be “white or a suitable contrasting background”.

What should this area contrast with? With the black surrounding line or the background colour? The provision, Poland suggested, is ambiguous.

Most comments felt that emphasis should be on the word ‘contrasting’ and, as originally drafted, the provision was intended to allow the use of single-colour printing. It was also noted that any amendment to the wording would need to be approved by the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG).

Spain sought an exchange of views on the responsibilities of the various participants during an international carriage of empty uncleaned tanks. Its paper used an example: if a full tank is transported from A to B in international trade, and then the same tank is moved empty from B to C, either to take up a new load or to return to the carrier’s depot, who should issue the new (or modified) transport documents for the trip from B to C? In this movement, who are the consignor and consignee?

Spain offered four different solutions, that most favoured by the Joint Meeting being that the movement from B to C is a new transport process and the carrier is both the consignor and consignee and is responsible for creating the transport documents. The Joint Meeting did agree that some clarification would be useful and invited all delegations to submit their comments to Spain for a possible future proposal.

France sought clarification on the appropriate placarding of removable skips, particularly in relation to the transport by road of waste in bulk. Such skips are sometimes

Is there any other way, Finland wondered, to protect against residual currents other than by preventing short-circuits? Can used (waste) batteries be carried safely in bulk without such protection? Is carriage in bulk forbidden by 7.3.1.12 if the possibility of short-circuits cannot be ruled out? The Joint Meeting

used to facilitate operations but do not meet the specifications of the BK or VC provisions.

However, skips are mentioned in the list of examples given in the definition of ‘bulk container’ in 1.2.1. This raises the question of whether such skips should be placarded in accordance with 5.3.1.2 or with 5.3.1.4.1. »

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Most delegates who took the floor were of the opinion that, according to the provisions of RID/ADR, the placarding of removable skips should be similar to that of containers in accordance with 5.3.1.2. Although there was no consensus on this, it was noted that this was the usual practice in some countries.

The Joint Meeting felt that the provisions could be modified and invited France to prepare a proposal for the next session.

PENDING PROPOSALS Germany came back to the classification of lead sulphate with not more than 3 per cent free acid which, by virtue of special provision 591, is not subject to the requirements of RID/ ADR/ADN. However, this clashes with the EU’s Classification, Packaging and Labelling of Chemicals (CLP) Regulation, which points to its classification as an environmentally hazardous substance with Aquatic Acute 1 and Aquatic Chronic 1 hazards. Earlier discussions had considered whether the substance (UN 1794) should be deemed an environmentally hazardous substance for transport.

The Joint Meeting agreed with Germany’s proposal to amend the wording of special provision 591 to specify that the substance is not subject to the requirements for Class 8 materials, rather than the entirety of the regulations. However, its listing under the CLP Regulation should also be checked and the UN Sub-committee of Experts on the Globally

Harmonised System of Classification and Labelling of Chemicals (GHS) should also be informed.

Portugal returned to its earlier proposal to purge the list of definitions in 1.2.1 of all abbreviations and acronyms and to place these in a new 1.2.3; the justification for this suggestion is that those abbreviations and acronyms are not really defined in 1.2.1, therefore complicating consultation of the document. Portugal offered a list of abbreviations and acronyms, which was welcomed by the Joint Meeting. The idea was accepted in principle but the change remains in square brackets while other delegations examine the draft and note any omissions.

Portugal will then prepare a new document for the March 2021 session.

In September 2019 the Joint Meeting had accepted that packagings for Category A medical waste of UN 3549 should be subject to the same requirements as those for Category A infectious substances of UN 2814 and 2900. However, its solution – an amendment to 4.1.8.6 – was not picked up

by WP15 and the RID Committee of Experts’ standing working group, pending further discussion at the Joint Meeting (scheduled for the March 2020) session and the TDG Sub-committee’s December 2019 session.

At the latter meeting, two experts expressed reservations about the idea of allowing the use of plastics packagings for the transport

of hospital waste of UN 3549 beyond the five-year period, although they understood the situation that hospitals could find themselves in if they had unused stocks of packaging that were past their expiry date.

Taking note of these and other comments, Switzerland took it upon itself to prepare a revised proposal, this time based on a revision to packing instruction P622.

In particular, this proposed to exclude the applicability of 4.1.1.15 to drums and jerricans used exclusively for the carriage of UN 3549.

There was an exchange of views by the Joint Meeting, after which Switzerland volunteered to submit a revised proposal to the TDG Sub-committee.

The European Chemical Industry Council (Cefic) resumed its investigation of the use of the phrase “structural serviceability” of cargo transport units (CTUs). The UN Model Regulations uses it in 7.1.3.3.1 for CTUs used for the carriage of explosive substances and articles of Class 1 only, which is copied in 7.1.2 in the International Maritime Dangerous Goods (IMDG) Code. RID/ADR, on the other hand, use it in 7.1.4 where it is generally applicable for all classes of dangerous goods.

Cefic has been expressing its concern about this lack of harmonisation since 2017, when the Joint Meeting asked it to take the matter to the TDG Sub-committee.

The UN experts agreed that harmonisation was desirable and adopted changes to the UN Model Regulations.

Cefic is also concerned that the definition of “structurally serviceable” in RID and ADR needs revision to reflect recent technical developments. It could see no justification for certain elements of the definition and said that the definition also conflicts with IMO’s recommended interpretation of the International Convention for Safe Containers. Cefic offered alternative texts for the relevant paragraphs.

The Joint Meeting welcomed Cefic’s continued work on this topic and, after discussion, the Cefic representative said that more work would be done on the proposal, which could then be submitted to the April 2021 meeting of the ad hoc Working Group on Harmonisation of RID/ADR/ADN with the UN Recommendations, or to the Joint Meeting’s autumn 2021 session.

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Spain returned to the problems encountered with the use of the UN 1043 entry for fertiliser ammoniating solution with free ammonia, which is regulated only through special provision 642, unique to this UN number.

This states that, except as authorised under 1.1.4.2, this entry shall not be used for the carriage of fertiliser ammoniating solutions with free ammonia, meaning it is only available if the carriage involves a transport chain that includes a maritime or air leg.

Under ADR, UN 1043 is identified as a dissolved gas with asphyxiating properties and, per 2.2.2.2.2, cannot be transported.

As a result, three other UN entries are used (2672, 2073 and 3318), each of which have a specified ammonia concentration range.

At the September 2019 session of the Joint Meeting, Spain presented an informal document setting out three options for resolving the problem and, after discussion, it had been

The fifth indent of 2.2.2.2.2 is amended to read: - Dissolved gases which cannot be classified under UN Nos. 1001, 1043, 2073 or 3318.

For UN No. 1043, see special provision 642; A new sentence is added at the end of special provision 642: Otherwise, for carriage of ammonia solution, see UN Nos. 2073, 2672 and 3318.

For RID only, “4A” is added in column (3b) of the Dangerous Goods List against UN 1043.

Pending the approval of the ADN Administrative Committee, “642” has been added in square brackets in column (6) of the Dangerous Goods List in ADN and the text of that special provision has similarly been inserted in square brackets.

Spain also returned with a formal proposal to amend the proper shipping name of UN 1345 Rubber scrap or Rubber shoddy, which in RID/ADR differs from that in the UN Model Regulations by leaving out the words “not

invited to present a formal proposal, which it now did. The Joint Meeting adopted most of its suggestions, as follows.

exceeding 840 microns and rubber content exceeding 45%”. This wording restricts the applicability of the entry to the more hazardous substances.

The Joint Meeting agreed to insert that text in the proper shipping name of UN 1345, aligning RID and ADR with the UN Model »

 THE USE OF SKIPS TO CARRY DANGEROUS GOODS IS AMBIGUOUS

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Regulations. It did not, however, feel the need to include a new special provision as proposed

by Spain, to highlight that substances outside those specified limits are not subject to the regulations.

A similar paper from Spain addressed UN 2015, which in the UN Model Regulations has the proper shipping name “Hydrogen peroxide, stabilised or Hydrogen peroxide, aqueous solution, stabilised, with more than 60% hydrogen peroxide”. RID/ADR have two entries, both relating only to the aqueous solution of hydrogen peroxide, and which have specific ranges for the hydrogen peroxide content. The Joint Meeting agreed that the first of these, relating to material with more than 70 per cent hydrogen peroxide, should include “Hydrogen peroxide, stabilised” as the first element of its proper shipping name.

Spain also took issue with the apparent conflict between special provision 593 and the provisions for gases used for cooling and conditioning purposes in 5.5.3. In particular, SP 593 includes requirements that are not contained in 5.5.3. Spain noted that SP 593 was introduced in the 2001 edition of RID/ADR and had probably not been modified when 5.5.3 was introduced in the 2013 texts.

Spain proposed aligning the two provisions by amending the text of SP 593 to remove the additional requirements. However, following discussion by the Joint Meeting, it was acknowledged that this is a complex issue and Spain was invited to prepare a revised proposal in light of comments made.

Yet another paper from Spain sought the harmonisation of the name and description of UN 2426 Ammonium nitrate, liquid (hot

concentrated solution), which in RID/ADR has a specified concentration range of 80 to 93 per cent that is missing from the UN Model Regulations. There are further differences between the conditions of carriage and special provisions in ADR, RID and the IMDG Code.

Spain’s paper offered some fairly straightforward means of resolving at least some of the differences but it also revealed some concerns among the experts at the Joint Meeting. Spain will work further on the proposal for a new submission at the next meeting.

Germany returned to the topic of the classification of UN 1872 Lead dioxide, which in RID/ADR has a Division 6.1 subsidiary hazard that does not appear in the UN Model Regulations or IMDG Code. The reasons for this are unclear and, as there is no reliable evidence of acute toxicity, there seems to be no justification for this subsidiary hazard.

At the previous session, the UK had queried the situation regarding carriage in bulk but Germany was of the opinion that there are no additional hazards.

The Joint Meeting agreed with Germany’s proposals, removing “+6.1” from column (5) of the Dangerous Goods List against UN 1872.

In addition, in column (3b), “OT2” is changed to “O2”. In RID and ADR only, in column (12), “SGAN” is changed to “SGAV”; in column (17), “VC1 VC2 AP6 AP7” is inserted; in column (18), “CW28/CV28” is deleted; and in column (20), “56” is changed to “50”. ADN will require an amendment to special provision 802 and Germany volunteered to submit the relevant proposal to the ADN Safety Committee.

NEW PROPOSALS FOR AMENDMENT Germany proposed to change the table in 4.1.6.15, which lists standards applicable to valve protection devices for UN pressure receptacles, adding a cut-off date in a new right-hand column, corresponding to that used in the tables in 6.2.2.1.

 THERE WILL BE CHANGES TO THE PROPER SHIPPING NAME OF HYDROGEN PEROXIDE AND TEST PERIODS FOR BUNDLES OF CYLINDERS

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However, CEN saw some drawbacks in Germany’s proposal and arrived with an alternative suggestion, which found more support, although EIGA spotted that CEN’s proposal did not include the standards on shrouds. EIGA will prepare a proposal for the next session but, in the interim, the Joint Meeting adopted CEN’s idea, which involved some changes within the table and an amendment of 4.1.6.15 itself to read: For UN pressure receptacles, the ISO standards and EN ISO standards listed in Table 1, except EN ISO 14245 and EN ISO 15995, shall be applied. For information on which standard shall be used at the time of manufacturing the equipment, see 6.2.2.3.

For other pressure receptacles, the requirements of section 4.1.6 are considered to have been complied with if the standards in Table 1, as relevant, are applied. For information on which standards shall be used for the manufacture of valves with inherent protection, see 6.2.4.1. For information on the applicability of standards for manufacturing valve protection caps and valve guards, see Table 2: The International Road Transport Union (IRU) followed up on earlier discussions with a proposal to include in Chapter 8.2 of ADR a provision to allow the use of e-learning for refresher training for dangerous goods drivers.

While there was once more general support for the idea, some delegations felt it premature. It was thought best to establish an informal working group to elaborate on the proposal and asked IRU to prepare draft terms of reference; those delegates interested in taking part were invited to contact IRU. EIGA reminded the Joint Meeting that the 2015 edition of RID/ADR included an amendment to extend the test periods for cylinders and bundles of cylinders used under the P200 packing instruction from 10 to 15 years. At the time it was decided not to extend this to the elements in battery vehicles until experience had been gained. Since then, EIGA has not received any reports of cylinders or

The European Cylinder Makers Association (ECMA) saw some holes in the idea, not least the proposal to mention EN 13385, which is not referenced in RID/ADR and, furthermore, dates back to 2002 and is ripe for revision.

Most delegations felt that more work is needed on the proposal and, once more, suggested forming an informal working group under the leadership of EIGA. Hopefully this will be able to report in time for a decision to be made at the spring 2021 Joint Meeting.

Switzerland proposed the insertion of a special provision to exempt machinery and apparatus powered by lithium cells or batteries, along the lines of special provision 363 that applies to machinery and apparatus powered by flammable liquid or gaseous fuel. Its paper included a proposed text.

However, while there was support from some delegations that felt the existing provisions warrant clarification, most delegates did not think a new special provision was the way to go. Switzerland will reconsider its proposal with a view to putting together a revised paper at the next session.

Switzerland also raised the idea of including new requirements for the transport of vehicles assigned to UN 3171 that contain damaged or defective lithium batteries, corresponding to those in place for vehicles of UN 3166 for vehicles powered by flammable liquid or gas. It suggested an amendment to special provision 667(b)(ii) and a new section in Chapter 6.11. However, most delegates did not support the proposal and some believed that, if the damaged or defective battery cannot be removed, then special provision 666 applies.

The matter is likely to return in the shape of a revised proposal.

On the topic of special provision 666, Switzerland also felt there is an inconsistency between that (and SP363) and special provision 669. The latter applies to equipment installed on a trailer that is carried as a load, when intended for use during carriage; SP666

bundles of cylinders being rejected after the longer test interval. It now proposed that the 15-year test period be introduced for battery vehicles carrying UN 1046 Helium, compressed or UN 1049 Hydrogen, compressed, as this covers the vast majority of products transported in battery vehicles.

applies to equipment installed on a towing vehicle that is carried as a load. The proposal was to add the words “and when intended for use during carriage” to SP666.

The Joint Meeting agreed there is a need to clarify the scope of special provisions363, 666 and 660 and Switzerland was invited »

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to prepare a new document, taking into account comments received. Discussions will resume at the March 2021 session.

While on the topic, Switzerland also sought to add text to special provision 363 to clarify that, labelling and placarding is allowed on engines and machinery that have a capacity of more than 450 litres of liquid fuel but only contain 60 litres or less. There was some support in principle but several delegations felt the provision could be included as a note rather than an amendment to the special provision. A revised proposal will be forthcoming.

Switzerland also thought it worthwhile to introduce a general rule to authorise the transport of empty packagings (up to large packaging size) for disposal, recycling or recovery of their material, regardless of whether or not they are in compliance with the provisions of RID/ADR/ADN. It suggested

requirements of 4.1.1.3 by dint of the special packing provisions assigned, although Switzerland’s paper suggested that the

amending the text of special provision 663.

This proposal had already been seen by the TDG Sub-committee, which suggested it should be dealt with on a regional basis.

The Joint Meeting, however, felt that no action was needed. Packagings shipped under UN 3509 do not have to meet the

position is not entirely clear.

Poland sought to clarify special provision 643, which relates to asphalt. Its paper pointed out the significant differences between mastic asphalt, which is carried in a liquid state, and aggregate asphalt, which is carried at a much lower temperature and is not really liquid.

HCB MONTHLY | JANUARY 2021

“THE DECISIONS MADE AT THE AUTUMN SESSION CAME TOO LATE FOR INCLUSION IN THE 2021 TEXTS OF RID, ADR AND ADN”

It though that an amendment to the text was necessary to differentiate the two products.

Some delegations recalled an earlier discussion about the types of asphalt that fall outside the scope of UN 3257 and others were concerned that the proposed change could restrict the scope of the exemption.

Poland will revise the proposal for consideration at a future session.

Switzerland felt that more work was needed on 5.4.0.2 on the use of telematics equipment and the guidelines on its application, particularly the sections relating to the transitional phase. The Joint Meeting preferred to pass the matter on to the working group on telematics which could discuss it in light of experience gained by those member states that are already implementing the guidelines.

Yet another paper from Switzerland highlighted the differences in the exemptions provided in the note to 5.3.2.1.5 for the orange-coloured plate marking requirements for wagons, covered or sheeted vehicles, and open wagons and vehicles. Furthermore, it does not extend to small bulk containers.

The Joint Meeting agreed and adopted new text: NOTE:This paragraph need not be applied to wagons/vehicles carrying bulk containers, tanks and MEGCs with a maximum capacity of 3 000 litres.

ERA thought it was about time that a footnote was inserted into RID/ADR/ADN to highlight the Inland TDG Risk Management Framework, in whose development the Joint Meeting had taken part. While some delegations felt this premature, on a vote ERA’s proposal was adopted. New footnotes will be added in 1.9.3 (RID) and 1.9.4 (ADR and ADN) with a link to the EU Directorate General for Mobility and Transport website.

 CLARIFICATION OF THE RULES ON ASPHALT TRANSPORT IS POSSIBLE AT THE NEXT SESSION

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Returning to lithium batteries, Switzerland sought the extension of the exemptions in 1.1.3.6 to UN 3536, which covers closed CTUs containing a very large lithium-ion storage battery. The applicable provisions do not distinguish between these large units and other types of CTU containing smaller batteries, installed on trailers or in vehicles to supply power external to the vehicle.

There were several comments on the proposal and one aspect of it was remitted to the ad hoc Working Group on the Harmonisation of RID/ADR/ADN with the UN Model Regulations. The Joint Meeting did, however, adopt some changes as a result.

In the table in 1.1.3.6.3, for Transport Category 2, second column, Class 9, “and 3481” is replaced by “, 3481 and 3536”. In

the Dangerous Goods List, column (15), against UN 3536, “-“ is replaced by “2” on the first line. For ADR only, in special provision 389, “Except as provided in 1.1.3.6” is inserted at the beginning of the last sentence.

Clearly flagging by this point, the Joint Meeting did not have time to deal with three proposals that arrived in the shape of informal documents; these were held over until the March 2021 session, where they will be treated as official documents.

The third and final part of this report on the autumn 2021 Joint Meeting will wrap up the reports from working groups and other business.

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THE BIG ROUNDUP

between February 2015 and March 2018. In passing, it also withdraws the enforcement discretion on the phase-out of mobile refrigeration systems issued in September 2017.

The changes range far and wide across HMR, taking in such diverse subjects as rail tank cars, fireworks and other explosives, paper bags, waste materials and gas cylinders.

This article provides a summary of the changes but those in scope of HMR are urged to check the original rule carefully for any amendments that might affect them.

(PIH) materials. AAR claimed that such steel is susceptible to brittle fracture at low temperatures. PHMSA agrees with AAR and notes that it had already considered mandating a phase-out of non-normalised steel tank cars in PIH service but had been informed that industry was already voluntarily removing such tanks from service.

Indeed, AAR has itself implemented a phase out of legacy non-normalised steel tank cars in PIH service and, as any similar action

by PHMSA would have no additional costs, the Administration felt it would provide regulatory certainty for industry and merely reflect what industry is in any case already on the way to achieving. As a result, §173.31 is amended to require such tank cars to be removed from PIH service by 31 December 2020.

AAR and other industry associations also petitioned PHMSA to convert the interim rail tank car specifications issued in January 2009 as part of the HM-246 final rule into final

RAIL ADJUSTMENTS The Association of American Railroads (AAR) asked for an amendment to §173.31 to prohibit the use of tank cars with shells or heads manufactured of non-normalised steel for the transport of poisonous-by-inhalation

specifications for tank cars in PIH service.

The joint petition noted that tank cars built in compliance with the interim specifications had proven themselves in service with no noteworthy safety concerns.

The HM-246 rule was the result of industry consensus that an updated regulatory standard

US • PHMSA HAS MADE A LARGE NUMBER OF CHANGES TO THE HAZARDOUS MATERIALS REGULATIONS IN RESPONSE TO PETITIONS FROM INDUSTRY AND UPDATES TO STANDARDS THE US PIPELINE and Hazardous Materials Safety Administration (PHMSA) published its final rule under docket HM-219C this past 25 November; the rule includes a wide variety of amendments to the Hazardous Materials Regulations (HMR) that appear in Title 49 of the Code of Federal Regulations (49 CFR), which took effect on 28 December. Compliance is required from 26 November 2021.

The final rule includes PHMSA’s response to the 49 comments it received on the notice of proposed rulemaking (NPRM) published in August 2019. It addresses 24 petitions for rulemaking submitted by various stakeholders

 PHMSA HAS WORKED LONG AND HARD ON THE HM-219C FINAL RULE, MAKING NUMEROUS CHANGES TO HMR

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was necessary to improve accident survivability, while research continued into a long-term solution. The Advanced Tank Car Collaborative Research Program (ATCCRP) has since found that those interim specifications – which include stronger tanks made from normalised steel and capable of withstanding higher tank test pressures, fittings, tank head-puncture resistance protection, and thermal protection for some commodities – do indeed provide significant safety improvements over legacy designs and says that there is little in the way that could be added. In addition, PHMSA received supportive comments from two major shippers (Dow Chemical and Chemours) and other bodies noting that, by making the interim specifications permanent, PHMSA would provide regulatory certainty and long-term confidence in the construction of tanks to that specification. Further, on the back of a suggestion from AAR, PHMSA has worked closely with its counterparts at Transport Canada to assign a unique designator – DOT-105H600W – so that the tanks can be used easily in cross-border transport.

In the final rule, therefore, PHMSA is amending §§173.314(c) and 173.244(a)(2) to make the specifications laid out in HM-246 permanent for the transport of PIH materials.

AAR further petitioned that PHMSA include a six-year phase-out period for tank cars that do not meet the HM-246 specifications.

PHMSA had not specified a phase-out period in the HM-246 final rule, in the belief that voluntary efforts by many fleet owners would deliver the phase-out even more rapidly than it was considering. As the situation developed, however, it appears to AAR that such a voluntary phase-out has not thus far eliminated legacy tanks from PIH service entirely.

Since then, PHMSA has been in discussion with the Federal Railroad Administration (FRA), AAR, major PIH shippers and other industry bodies, who again felt that regulatory action would provide market certainty.

which will be adopted as an amendment in §173.31.

UPDATES TO STANDARDS PHMSA had received a number of petitions to update standards and other material referenced in HMR. Firstly, a number of Compressed Gas Association (CGA) standards, incorporated by reference in §171.7, were well out of date. On the basis of petitions and supporting comments, the final rule updates: - CGA C-6.3, Standard for Visual Inspection of Low-Pressure Aluminium Alloy Cylinders, replacing the first edition (1991) with the third (2013) - CGA S-7, Methods for Selecting Pressure Relief Devices for Compressed Gas Mixtures in Cylinders, replacing the fourth edition (2005) with the fifth (2013) - CGA C-11, Practices for Inspection of Compressed Gas Cylinders at Time of Manufacture, replacing the third edition (2001) with the fifth (2013) - CGA C-6.1, Standards for Visual Inspection of High-Pressure Aluminium Compressed Gas Cylinders, replacing the fourth edition (2002) with the new 2013 edition.

It was noted by three commenters that there are even more recent editions of these standards. However, PHMSA has declined to reference those as it has not yet evaluated them. It has, though, encouraged industry to petition for inclusion of these newer editions.

Trinity Containers petitioned for the incorporation by reference of certain sections of the 2017 edition of the American Society of Mechanical Engineers’ (ASME) Boiler and Pressure Vessel Code (BPVC), which included significant revisions. Trinity said that, if HMR is not revised to recognise these new standards, ASME certificate holders would be obliged to comply with obsolete standards.

There were a number of comments, mostly supportive but noting other necessary changes. PHMSA has therefore incorporated by reference the revised versions of Section II, Parts A and B, Section V, Section VIII, division 1, and Section IX. It has not, though, made any change to the ‘design margin’ for DOTspecification cargo tanks, following a similar decision when the 2015 edition of BPVC was incorporated. An additional editorial change amends reference to standard UG-32(e) to UG-32(d).

The Institute of Makers of Explosives (IME) petitioned PHMSA to update §171.7(r) to incorporate by reference the AESC/IME jet perforating gun (JPG) standard, the Guide to Obtaining DOT Approval of Jet Perforating Guns, version 02 dated September 2017, and to include a new §173.67 codifying PHMSA’s current practice of excepting JPGs that conform to the standard from the testing normally required.

PHMSA notes that it has used this standard in its review of applications since 2008 and »

PHMSA proposed a phase-out deadline of 31 December 2027, backed by AAR rules,

 INDUSTRY HAD PETITIONED FOR REGULATORY CLARITY ON RAIL TANK CAR SPECIFICATIONS

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has not found the practice to be unsafe.

Furthermore, the new edition is potentially more conservative. It is, therefore, adopting the changes suggested by IME in the final rule.

The American Pyrotechnics Association (APA) petitioned for the incorporation by reference of the 2018 edition of its Standard 87-1, Standard for the Construction and Approval for Transportation of Fireworks, Novelties and Theatrical Pyrotechnics, to replace the outdated reference to the 2001 edition. The Standard has been significantly revised and restructured, reflecting advances in product safety and design over the intervening period.

PHMSA received plenty of comments on the proposed changes, both supporting and opposing the amendments, and many of them going into detail regarding specific articles.

Having considered these comments, it has decided to refer to the updated Standards 87-1A, B and C along with their respective lists of permitted and restricted chemicals in Appendix I. It will not, though, reference other appendices. PHMSA says it expects the updated standard to provide clarity to

the fireworks industry while ensuring the safe transport of fireworks and streamlining the EX approval process.

LIMITED QUANTITIES Steris had petitioned PHMSA to extend the limited quantity provisions to UN 2014 Hydrogen peroxide aqueous solution, to harmonise with the UN Model Regulations and other international regulations. Having looked into the matter, PHMSA could find no reason to deny the petition, which if nothing else will make international transport of small quantities of UN 2014 simpler.

URS Corporation had submitted a broader petition asking for the limited quantity provisions to be extended to 45 additional entries, noting that these too are permitted for carriage under the limited quantity provisions in international regulations and that inconsistency causes confusion.

PHMSA had conducted a technical review and in the end identified 114 entries in the Hazardous Materials Table that are not in alignment with the UN Model Regulations as far as limited quantity provisions are concerned, including the 45 noted by URS.

In addition, 64 of those entries also diverge from the provisions of the International Civil Aviation Organisation’s (ICAO) Technical Instructions in this regard. In a comment on the NPRM, the Council on Safe Transportation of Hazardous Articles (COSTHA) and the International Vessel Operators Dangerous Goods Association (IVODGA) had also spotted that, while packing group II material of UN 3170 Aluminum smelting by-products is permitted for carriage under the limited quantity provisions, packing group III material is not, which PHMSA agreed was an oversight.

PHMSA has therefore agreed to amend the Hazardous Materials Table by extending the limited quantity provision to all 114 entries that were out of step with the UN Model Regulations.

A similar problem of disharmony had been noted by Evonik, which had petitioned PHMSA to revise how the word ‘stabilized’ should appear when providing the shipping name of a hazardous material. HMR does not currently allow ‘stabilised’ as part of the proper shipping name, putting it at variance with the International Maritime Dangerous Goods (IMDG) Code, which requires its inclusion when stabilisation is required prior to transport.

Evonik said this situation causes needless discrepancies. Comments were made in support of Evonik’s position.

Again, PHMSA had conducted a technical review, which confirmed that materials that have some instability but that are not specifically identified or classified as selfreactive substances or organic peroxides cannot be shipped in compliance with both the IMDG Code and the HMR as currently written. It has, as a result, amended §172.101(c) to clarify that the word ‘stablized’ must be included as part of the proper shipping name when HMR requires stabilisation before transport.

EXPLOSIVES On similar lines, IME had petitioned for the removal of special provision 103 from four

 REFERENCES TO SEVERAL CGA STANDARDS HAVE NOW BEEN UPDATED

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entries for detonators, UN 0361, 0365, 0255 and 0267, to harmonise with the UN Model Regulations. This proposal received only supporting comments. On review, PHMSA felt that special provision 103 is now outdated, as the UN Model Regulations now requires that detonators must pass the Test Series 6 requirements in the Manual of Tests and Criteria in order to be classified as Division 1.4B. HMR has in other areas been aligned with the UN performance-based classification method for explosives and it would seem that special provision 103 is no longer widely used.

As a result, PHMSA agreed with the petition, removing reference to SP103 from the four entries in the Hazardous Materials Table and deleting the special provision altogether from §172.102.

Ford Motor Company had petitioned for the addition of special provision 166 against UN 0503 Safety devices, pyrotechnic, in line with the packaging exceptions already authorised for other safety devices. Since the NPRM was published, PHMSA had asked stakeholders for information and data regarding the classification of safety devices and is still processing the responses. For now at least, it has not made any changes as a result of Ford’s petition but may consider it in a future rulemaking.

MARKING AND LABELLING A private petition sought the revision of §172.302(b)(2) to align with 5.3.2.0.2 of the IMDG Code and allow a minimum height of 12 mm for proper shipping name markings on portable tanks with a capacity of less than 3,785 litres (1,000 gallons). The current requirement is for markings to have a height of at least 25 mm (1 inch). PHMSA considers that alignment with the IMDG Code would not cause a reduction in the effectiveness of hazard communication or safety and has agreed to make the change.

Matson petitioned PHMSA to amend

PACKAGING The Reusable Industrial Packaging Association (RIPA) petitioned PHMSA for a revision of §173.28(c)(1)(i), which requires the complete removal of labels and coatings from metal drums during the reconditioning process, arguing that it is practically impossible. PHMSA responded in the NPRM with an alternative wording but RIPA felt that the wording was too specific, arbitrary in its requirements and difficult to enforce.

After further consideration, PHMSA agreed that its proposal was impracticable and that alternative wording offered by RIPA would achieve the ends it sought. As a result, the wording of that paragraph will be changed to: Cleaning to base material of construction, with all former contents, internal and external corrosion removed, and any external coatings and labels sufficiently removed to expose any metal deterioration that adversely affects

liners for fibreboard boxes. The Association based its justification that the two processes use the same or technically equivalent machines.

Reviewing the technical data provided in the petition, PHMSA agreed that such a move would not affect the safety of packaging and would generate not insignificant cost savings for industry. One comment received on the NPRM proposed extending the change to 11G packagings but, while this idea may have merits, it would require further stakeholder engagement before being adopted. For now, though, PHMSA is making the change as requested for multi-wall shipping sacks.

Veolia petitioned for the amendment of §171.8 by adding a definition of ‘waste material’ to allow for all waste material to be managed in accordance with the lab packs exception in §173.12, regardless of whether it meets the Environmental Protection Agency’s (EPA) definition of ‘hazardous waste’. The lab pack exception for waste provides relief from some packaging requirements in HMR to facilitate the transport for disposal of certain waste materials.

An earlier letter of interpretation from PHMSA explained that the lab packs exception applied only to those wastes meeting the EPA definition; however, in reviewing the petition, PHMSA noted that this was not specified in the final rule of December 1990 that codified §173.12(b). It agreed that opening the exception up to other wastes would make it easier for regulated entities to dispose of waste in a way that is consistent with HMR. It has therefore included a new definition of waste material that implements that change.

CGA petitioned PHMSA for a modification of §§171.23, 173.302 and 173.304 to permit the transport of European ‘pi-marked’ pressure receptacles in the US; currently this is allowed only through the use of special permits.

The petition sought a change to HMR to allow the import, storage, transport, discharge and export of filled cylinders as well as the import

§173.308(d)(3) to remove the requirement for a warning to be placed on the access door of a closed transport vehicle or a closed freight container when lighters are transported by vessel, once more for the sake of harmonisation with the IMDG Code.

transportation safety.

The Paper Shipping Sack Manufacturers Association had petitioned PHMSA to amend §178.521 to revise the basis weight tolerances for liners and mediums used in the multi-wall shipping sacks from ±5 per cent to ±10 per cent, in line with a change made earlier to

of empty cylinders for filling, storage and export, without the need for a special permit.

Entegris commented on the petition, requesting additional changes to allow the shipment of adsorbed gases in pi-marked cylinders.

PHMSA noted that more than 3,000 shipments of such pressure receptacles »

“THE FINAL RULE ADDRESSES 24 PETITIONS FOR RULEMAKING SUBMITTED BETWEEN FEBRUARY 2015 AND MARCH 2018”

PHMSA considered the matter and could find no compelling safety justification for the presence of the requirement in HMR and is therefore removing it.

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have taken place under special permits and, also, that there is extensive operational experience of their safe transport in international trade. PHMSA also felt that, by making the change, it would not increase the number of pi-marked cylinders transported in the US. It has therefore agreed the changes proposed by both CGA and Entegris and, to align with similar provisions in ADR, will require a notation on the shipping paper to certify compliance with the pi-marked cylinder requirements.

OTHER ISSUES The International Institute of Ammonia Refrigeration (IIAR) petitioned for a revision to §173.5b to allow the continued use of mobile refrigeration units, as commonly used in the US produce industry, that were placed into service prior to 1991, provided that they are tested to a service pressure of 250 psig. As currently written, HMR requires that these refrigeration units be phased out by 1 October 2017, although PHMSA issued an enforcement discretion permitting their continued use just before that deadline.

PHMSA explains that the purpose of §173.5b was to eliminate the use of systems with a maximum allowable working pressure of 150 psig and that, therefore, requiring them to be tested to a service pressure of 250 psig achieves that aim. It is therefore adopting the change asked for by IIAR and also withdrawing its enforcement discretion as it will no longer be needed.

Polar Service Systems petitioned PHMSA to remove the words “manufactured before September 1, 1995” from §180.417(a)(3), so as to allow the use of an alternative report in lieu of obtaining the manufacturer’s certificate of compliance for those cargo tanks manufactured after that date. Some manufacturers have gone out of business over that period and it can be impossible for cargo tank owners to obtain replacement certificates. PHMSA acknowledged that there can be challenges in obtaining the required documentation for cargo tanks and cargo tank motor vehicles, irrespective of the timeframe set down in HMR. In addition, testing and recordkeeping requirements would provide much of the same information. PHMSA also

says that its experience in administering similar alternative reporting requirements under existing HMR provisions shows that the flexibility provided does not adversely affect safety. As a result, it is amending the language in that paragraph to remove any reference to the date of manufacture.

CYLINDER REQUALIFICATION PHMSA published a rather briefer final rule under docket HM-219B on 30 October 2020, amending the requalification periods for certain DOT 4-series specification cylinders in non-corrosive gas service. This rule responded to a petition from the National Propane Gas Association (NPGA). PHMSA notes that there have been a number of changes to the initial and subsequent requalification periods for both volumetric and proof pressure testing, set down in §180.209(e), over recent years and NPGA asked PHMSA to restore the periods shown prior to the HM-233F final rule, which took effect in February 2016 and sought to align the periodicity with the international regulations. However, NPGA said, changing the requalification period from 12 to 10 years had increased costs and caused confusion, especially as such cylinders are usually stamped with the next due test date and employees were being expected to ignore those markings.

Several comments were received on the NPRM under HM-219B and, after reviewing them, PHMSA determined that the amendments proposed would be adopted. As a result, the requalification periods in §180.209(e) are now amended to allow for a 12-year initial requalification by volumetric expansion testing or proof pressure testing, and 12-year subsequent requalification periods by volumetric expansion testing. It does not disturb existing HMR provisions providing for 10-year subsequent requalification periods for proof pressure testing. In addition, it makes clarifying and conforming editorial changes to the requalification table in § 180.209(a).

 IMPORTANT CHANGES WILL ALLOW THE USE OF EUROPEAN CYLINDERS IN THE US

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FLOAT ON

OPERATIONAL RESTRICTIONS Marpol will now require control of the discharge of residues containing persistent floaters.

This is established in a new paragraph 7.1.4 in Chapter 5, Regulation 13. It requires a prewash procedure, as specified in Appendix VI of Annex II, to be carried out and the residue/ water mixture generated by that procedure to be discharged to a reception facility at the

Celtic Sea, English Channel and approaches), Baltic Sea area, Western European waters and Norwegian Sea. In Appendix IV, Section 4, paragraph 4.4.5 is amended to specify that procedures relating to the cleaning of cargo tanks, discharge of residues, ballasting and deballasting should contain instructions on how to deal with tank washings of persistent floaters, identified by the presence of ’16.2.7’ in column ‘o’ of Chapter 17 of the IBC code, when operating in the areas specified in Regulation 13.9.

A new Note 4 is added to Addendum A to Section 4, which contains the flow diagrams for the cleaning of cargo tanks and disposal of washings and ballast containing residues of category X, Y and Z substances, highlighting the addition of the requirements for persistent floaters.

Finally, a new section C is added after paragraph 21 in Appendix VI on prewash procedures. This reads: Persistent floaters with a viscosity equal to or greater than 50 mPa.s at 20˚C and/or a melting point equal to or greater than 0˚C, shall be treated as solidifying or high-viscosity

port of unloading until the tank is empty. Any water subsequently introduced into the tank may be discharged into the sea.

A new paragraph 9 defines the areas to which this provision applies, giving coordinates for the limits of the North West European waters (North Sea, Irish Sea,

substances for the purposes of the prewash.

Where it is determined that the use of small amounts of cleaning additives would improve and maximise the removal of cargo residues during a prewash, then this should be done in consultation and with prior agreement from the reception facility.

MARINE • AFTER MANY YEARS OF DISCUSSION, THE TREATMENT OF ‘PERSISTENT FLOATING PRODUCTS’ WILL BE INTRODUCED INTO MARPOL, BRINGING NEW OPERATIONAL CONTROLS IN MAY 2019, the International Maritime Organisation’s (IMO) Marine Environment Protection Committee (MEPC) adopted Resolution MEPC.315(74), amending Annex II of the International Convention for the Prevention of Pollution from Ships (Marpol).

Those amendments bring into Marpol Annex II new restrictions on the discharge of cargo residues and tank washings of persistent floating products, which take effect on 1 January 2021.

The amendment addresses in particular the noxious problem of waxy residues that have washed up on shores around Europe; it has been a long time in development and, in this amendment, has been restricted to European waters, with non-European states feeling there is no need for it to be applied.

What does MEPC mean by ‘persistent floater’? That is dealt with in a new paragraph

 PROBLEMS POSED BY PERSISTENT FLOATERS APPEAR TO BE A PURELY EUROPEAN ISSUE

23 in Chapter 1, Regulation 1, which defines them as slick-forming substances with a density less than or equal to sea water, a vapour pressure of less than or equal to 0.3 kPa, solubility less than or equal to 0.1 per cent for liquids and less than or equal to 10 per cent for solids, and kinematic viscosity greater than 10 cSt at 20˚C.

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62

NEWS BULLETIN

REGULATIONS

amendments contained in the final rule are deemed non-substantive, the public comment period was not necessary. Those in scope of HMR should check the changes closely; the final rule is available on the Federal Register website at www.federalregister.gov/ documents/2020/12/21/2020-23353/hazardousmaterials-editorial-corrections-and-clarifications.

IATA UPDATES BATTERY GUIDANCE

PHMSA’S CYLINDER ACTIONS

The US Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a final rule this past 28 December, in response to petitions for a review of the compressed gas cylinder provisions in the Hazardous Materials Regulations (HMR). Apart from updating and expanding the list of Compressed Gas Association (CGA) publications referenced in HMR, the rule, under docket HM-234, also amends the filling requirements, expands the use of salvage cylinders, and revises and clarifies the manufacture and requalification requirements for cylinders. The rule is effective as from 27 January and will be mandatory from 28 December.

The rulemaking has a lengthy history, starting with an advance notice of proposed rulemaking issued in 2012, followed by an NPRM issued in 2016. Both notices generated extensive comments from industry, which are discussed in full in the preamble to the final rule, which can be found in the Federal Register at www.federalregister.gov/ documents/2020/12/28/2020-26264/hazardousmaterials-miscellaneous-amendments-pertainingto-dot-specification-cylinders.

HCB MONTHLY | JANUARY 2021

On a similar topic, PHMSA has recognised the challenges facing industry in requalifying cylinders during the Covid-19 emergency and on 30 December issued an enforcement discretion, for road transport only. The enforcement discretion applies to those filling a DOT-specification cylinder used to transport a Division 2.2 non-flammable gas and that has exceeded its periodic requalification testing date by no more than 12 months. The enforcement discretion will expire on 30 June.

PHMSA TIDIES UP

US PHMSA also issued a final rule under docket HM-260A this past 21 December, making various editorial corrections and clarifications in the Hazardous Materials Regulations. The rule ranges widely across each Section of HMR and results from PHMSA’s annual review of the rules.

The final rule corrects typographical errors and erroneous references and citations, addresses inconsistent use of terminology and inadvertent omissions of information, and generally aims to make HMR clearer for users, in order to improve compliance and reduce misunderstandings. As the

The International Air Transport Association (IATA) has issued an updated version of its Lithium Battery Guidance Document. The 2021 edition includes revisions to reflect new provisions included in the 62nd edition of the IATA Dangerous Goods Regulations concerning definitions, classifications, exceptions and prohibitions.

While those involved in shipping or carrying lithium batteries by air still need to have a copy of the latest DGR to hand, the Guidance Document provides a useful summary of the complex rules involved. It can be downloaded from the IATA website at www.iata.org/en/publications/store/lithiumbattery-shipping-guidelines/.

CLP CHANGE TO HELP INDUSTRY

The second amendment to Annex VIII of the EU’s Classification, Labelling and Packaging of Chemicals (CLP) Regulation entered into force on 14 November. The amendment addresses in particular some concerns raised by industry on the administrative burden for companies on providing information to Poison Centres, while still meeting those information requirements. The main changes concern reporting on the composition of mixtures, such as fuels and petroleum products, as well as certain construction products which may be highly variable or sometimes unknown.

The European Chemicals Agency (ECHA) is currently working on an update to its guidance on harmonised information on emergency health response. In the meantime, more information about the amendment and full details about Poison Centres can be found on a dedicated area of ECHA’s website at https://poisoncentres.echa.europa.eu.

REGULATIONS 63

MAJOR INTERNATIONAL REGULATORY AGENCY MEETINGS, 2021 MEETING AGENCY

VENUE

DATE

MEETING AGENCY

Editorial & Technical Group (IMSBC Code) 33rd meeting

IMO

remote

January 18-22

Dangerous Goods Board, 119th meeting IATA Geneva* August 30 Sept 2*

Joint meeting of Experts on the Regulations annexed to ADN (WP15/AC2), 37th session

ECE

Geneva

Jan 25-29

Sub-committee on Carriage of Cargoes and Containers (CCC), 7th session

IMO

*

Sept 6-10

Administrative Committee of ADN, 25th session

ECE

Geneva

January 29

Editorial & Technical Group (IMDG and IMSBC Codes), 35th meeting

IMO

*

Sept 13-17

Working Group on Annex 2 to SMGS

OSJD

Warsaw

February 9-12

ECE/OCTI Geneva

Editorial & Technical Group (IMDG Code) 34th meeting

IMO

remote

March 15-19

Joint meeting of the RID Committee of Experts and the Working Party on the Transport of Dangerous Goods (WP15)

Joint meeting of the RID Committee of Experts and the Working Party on the Transport of Dangerous Goods (WP15)

ECE/OCTI Bern

March 15-19

Dangerous Goods Panel (DGP), 28th session ICAO Montreal* September 20 October 1

Sub-Committee on Pollution Prevention and Response (PPR), 8th session

IMO

Dangerous Goods Board, 118th meeting

IATA

remote

Dangerous Goods Panel (DGP), WG/21

ICAO

Montreal* May 3-7

Maritime Safety Committee (MSC), 103rd session

IMO

remote

Working Party on the Transport of Dangerous Goods (WP15), 109th session

ECE

RID Committee of Experts’ standing working group (13th session)

OCTI

RID Committee of Experts, 56th session

OCTI

Bern*

May*

Marine Environment Protection Committee (MEPC), 76th session

IMO

remote

June 10-17

remote

Geneva*

Bern*

VENUE

DATE

September*

Maritime Safety Committee (MSC), 104th session

IMO

tbc

October 4-8

Working Group on the Evaluation of Safety and Pollution Hazards of Chemicals (ESPH), 27th session

IMO

tbc

October 11-15

Marine Environment Protection Committee (MEPC), 77th session

IMO

tbc

Nov 8-12

Working Party on the Transport of Dangerous Goods (WP15), 110th session

ECE

Geneva

November*

RID Committee of Experts’ standing working group (12th session)

OCTI

*

November*

March 22-26

April 12-15

May 5-14

May*

May*

ECOSOC Sub-committee of Experts on the ECE Geneva Transport of Dangerous Goods (58th session)

June 28July 2

ECOSOC Sub-committee of Experts on the Globally Harmonised System of Classification and Labelling of Chemicals (40th session)

ECE

Geneva

July 5-7

Joint meeting of Experts on the Regulations annexed to ADN (WP15/AC2), 38th session

ECE

Geneva*

August*

Administrative Committee of ADN, 26th session

ECE

Geneva*

August*

ECOSOC Sub-committee of Experts on the ECE Geneva Transport of Dangerous Goods (59th session)

December*

ECOSOC Sub-committee of Experts on the Globally Harmonised System of Classification and Labelling of Chemicals (41st session)

December*

ECE

Geneva

GENERAL NOTE: Due to restrictions on travel and meetings during the Covid-19 pandemic, the calendar of meetings is less certain than usual, with many sessions awaiting confirmation. HCB will endeavour to keep readers informed of further relevant meetings as and when they are called.

ECE – UN European Commission for Europe; IATA – International Air Transport Association; ICAO – International Civil Aviation Organisation; IMO – International Maritime Organisation; OCTI – Central Office for International Rail Transport; OSJD – Organisation for Cooperation of Railways * Details to be confirmed

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64 BACK PAGE

NOT OTHERWISE SPECIFIED FRIED FOOD IS BAD FOR YOU The Back Page has been lucky enough to be invited on a few occasions to join American friends in London for Thanksgiving dinner.

It soon become apparent, though, that the invitation was not just another example of Americans’ well-documented hospitality.

Rather, they needed someone who knew how to carve a turkey and make gravy.

We have always been happy to sing for our supper in this way, and enjoy the largely orange-themed dinner that results. It was rather alarming, though, to arrive and not only be put in charge of carving and gravy making but also to check whether the bird was properly cooked. So where is it? Not in the oven – but out in the back yard on the propane grill.

We cannot claim to have never bought a turkey for Christmas that turned out to be too big to fit in the oven but it would appear that the choice of the outdoor grill is just one of those American things and we can sort of understand the logic.

We were, though, somewhat surprised by a report of a house fire in Massachusetts in November, sparked by a man cooking the family’s Thanksgiving turkey out on the back porch. In this case, though, he was using a deep-fat fryer. It raises a number of questions, not least: is it possible to buy a deep-fat fryer large enough to accommodate a whole turkey? Also, whoever thought fried turkey

Jon Mitchell, mayor of New Bedford, said that cooking incidents are common at that time of the year - after all, for many Americans it is the only time they cook for themselves. “This may well be a reminder of the perils of frying a turkey,” he told the New York Post. “This is not the first time this has happened – not just here but in many places across the country.” Indeed, fire chief Scott Kruger said his team attended four other cooking mishaps on the same day.

is a good idea?

Neighbours reported that there was an explosion – thought to be the propane tank going off – before fire spread through the house and those on either side. One woman was seriously hurt and 27 people were evacuated from their homes – on Thanksgiving, too!

November and one firefighter was injured in the response. The cause was determined to be an improperly installed solar array on the roof, which was being used to power an illegal cannabis growing operation. The fire started in batteries in the basement, where there was also a stock of ethanol.

HCB MONTHLY | JANUARY 2021

CHECK THE LABEL Celebrations went badly awry in Siberian Russia the same week. A party in Tomtor ran out of booze (in Russia, really?) and nine desperate tipplers reached for the only alcohol left: hand sanitiser. Not ideal in most cases, we suspect, and certainly not if the sanitiser is 69 per cent methanol. Seven of them died and two were left in a coma.

The same thing happened in New Mexico in June, where three people died, one went blind and three others were hospitalised in a critical condition after drinking methanolbased sanitiser.

GONE TO POT There are other ways of getting high than alcohol, of course, but they too can come with their own hazards. Fire broke out at a house in Greenfield, Massachusetts in early

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