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EDITOR’S LETTER

AS WE ROLL TOWARDS the end of 2021, it is traditional to look back at the year just gone and consider what we have learned from

exactly what logistics experts are used to dealing with. Meanwhile, shippers and receivers have been changing

it. Unfortunately, the global pandemic but the brakes on a lot of

their behaviour in response to the problems they are facing.

business, especially the business of getting around and meeting

In conversation with executives from both ends of the chain

people. Recently, event organisers have seemed more optimistic

recently, it seems clear that many are looking at existing

that things are changing and that we can begin to get together

sourcing and inventory procedures and finding that they are

again, though the sudden emergence of the Omicron variant of

contributing to greater uncertainty. The result of that review is

Covid-19 has prompted the re-imposition of travel restrictions.

a turn towards on- or near-shoring of supply and, very often,

So, to answer the question posed above: what we have learned

multi-sourcing. Buyers can no longer rely on a single supplier,

from the year 2021 is that we don’t really know what’s round

given the assorted barriers that have grown up, and are

the corner.

seeking active alternatives.

That uncertainty was clearly evident in global supply chains,

Consequently, supply chains have had to adapt and the

disrupted all around the world by a wide range of different factors.

flexibility and expertise that logistics service providers can

Covid restrictions caused closures and personnel shortages,

offer has become more valuable. We are hearing more and

varying from place to place and often creating sudden bottlenecks.

more that the traditional annual bidding round is now giving

There was the well-documented shortage of ocean shipping

way to longer-term relationships between shippers and

capacity, reflecting a significant increase in cargo volumes to meet

logistics firms. That is something that the logistics side of

consumer demand at a time when the measures put in place by

the bargain has been calling for for many years and it is rather

the liner operators to address over-capacity (following the Hanjin

ironic that it has taken such a crisis for the shipper side to see

bankruptcy) were starting to have an effect. There has also been

the other point of view.

the growing impact of the chronic shortage of heavy goods vehicle

Will that sort of relationship last once we get back to

drivers, evident in all the main mature markets; this has been

normal? Will we, indeed, ever get back to ‘normal’? It seems

a threat for decades but it is now reaching a crisis as existing

unlikely in the near term and what the past year has taught

drivers retire or are tempted away to the increasingly well paid

shippers in particular is that just-in-time is no longer

jobs in home delivery transport.

enough to secure their commercial viability: ‘just-in-case’

All this has been going on in an environment of high energy

is the approach to be taken. The balance has shifted now

prices alongside an overriding commitment to sustainability and

and logistics providers at last have an equal place at the

the approaching energy transition. That has given all those involved

negotiating table.

in the supply chain an endless stream of headaches – but that is

Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 42

•

NUMBER 11

UP FRONT

STORAGE TERMINALS

SAFETY

Letter from the Editor 01

Making the chain

Incident Log 40

30 Years Ago 04

GES lays plans for Europoort

Learning by Training 05

All change please

Adding DG to ERP

Vopak ready to hand over

News bulletin – storage terminals

TANKER SHIPPING Up with demand Gas tankers respond to pricing Down in the hole Dan-Unity ready for CO2 shipping Look to the east Odfjell consolidates in deep sea

Take the plunge Hafnia buys CTI fleet

Stolt Tankers reduces footprint

26 28 30

Express delivery Chemical Express opts for IMT

BASF addresses low water shipping

Well equipped

News bulletin – tanker shipping

New kit from Fort Vale

News bulletin – tanks and logistics

TSA INSIGHT Quarterly magazine from the Tank Storage Association after page 15

Managing Editor Peter Mackay, dgsa Email: peter.mackay@chemicalwatch.com Tel: +44 (0) 7769 685 085 Advertising sales Sarah Smith Email: sarah.smith@chemicalwatch.com Tel: +44 (0) 203 603 2113 Publishing Manager Sarah Thompson Email: sarah.thompson@chemicalwatch.com Tel: +44 (0) 20 3603 2103

Not otherwise specified 52

Free at last SNCF sells Ermewa

Stay afloat

BACK PAGE

Now’s the time Labelmaster takes talk to C-suite

The right course

Let’s swap tanks Suttons takes Tanktainer

REGULATIONS UN experts clean up proposals

Listen up! EPCA talks green finance

Leftover dishes

TANKS & LOGISTICS 06

Intelligent freight

NEXT MONTH Storage terminals – equipment and construction Tank container and road tanker equipment

COURSES & CONFERENCES

Sustainability and digitisation

Conference diary 39

Outlook for regulation

Publishing Assistant Francesca Cotton

CW Research Ltd Talbot House Market Street Shrewsbury SY1 1LG

Senior Designer Harrison Tanner Chief Operating Officer Stuart Foxon Chief Commercial Officer Richard Butterworth

ISSN 2059-5735 www.hcblive.com

HCB Monthly is published by CW Research Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect. ©2021 CW Research Ltd. All rights reserved

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30 YEARS AGO A LOOK BACK AT DECEMBER 1991

THE DECEMBER 1991 issue of HCB was something of a blockbuster, its 112 pages boosted in part by the inclusion of a Christmas quiz (that was not very difficult for anyone with a passing interest in the transport of dangerous goods). But that alone did not account for the size of the issue: it was handsomely supported by advertisers, which must have given the publisher a welcome Christmas bonus, and there was also a lot to report on. One of the big talking points at the time was the impending arrival, in January 1993, of the single European market. This was a particular concern to the chemical industry in the UK and its logistics service partners, who perhaps still saw themselves standing apart from continental Europe and were alert to the ambition of the European Commission to fill what it perceived as some gaps in the transport of dangerous goods. These included better training, harmonised marking and labelling, controls on the movement of hazardous wastes, and controls over ships carrying dangerous goods calling in EU ports. The December 1991 issue carried a lengthy report from the Transchem Europe symposium, held in that well known chemical hub, Scotch Corner – a spot in north-east England famed as being the junction of the A1(M) and A66 trunk roads, and little else. During that two-day event, the UK Health & Safety Executive (HSE) suggested that the UK was not aiming for total harmonisation with ADR but, rather, with the UN Model Regulations on which ADR is based. While some moves towards harmonisation with ADR were underway, there were areas where the UK felt it unnecessary to align completely, not

HCB MONTHLY | DECEMBER 2021

least as far as the well established Hazchem marking system was concerned. That, of course, is still the case, along with a number of other important variations contained in the UK’s CDG Approved Derogations document. The main reason for the immense size of the December 1991 issue could be found elsewhere in the magazine: a preview of the upcoming MariChem exhibition and conference in Köln. This once-mighty event had originally been established to provide a forum for those involved in the transport of chemicals in bulk by sea, that is to say the chemical tanker sector. But by 1991 it had also been co-opted as the main meeting for the burgeoning tank container business and so HCB’s preview feature ran through a lot of companies active in that sector: VTG Tanktainer, Consani, P&O Tankmasters, Bond International, Holvrieka Nirota, Nova Tankcontainer, Kube & Kubenz, Nippon Riku-un Sangyo, Haesaerts Containers, Marly Industries, G Magyar, Den Hartogh and many more involved in tank operation, leasing or manufacture. There was also optimism that the new year would bring better trading conditions, not least for tank lessors. That view was supported by the recent entry into the sector of three big players: Stolt-Nielsen Leasing, Transamerica Leasing and Trifleet Leasing. As was traditional in those days, the December number finished with the ‘Yule Log’ a wrap-up of some odd events that failed to make it to the Incident Log. That included the tale of a Soviet airliner that caught fire and crashed in Czechoslovakia with 15 tonnes of American cigarettes on board. Perhaps one of the crew gave into temptation, despite a ban on smoking in the aircraft.

UP FRONT 05

LEARNING BY TRAINING by Arend van Campen

SUSTAINABILITY AND HAZARDOUS CARGO BUSINESS PERHAPS YOU HAVE noticed that we launched the Tank Storage Sustainability Initiative, but just to make sure everyone understands how nature sustains itself, I’d like to share some insights from a research project I did, titled: ‘Information is Physical, Introducing the Realimiteit Principle as a new Law of Physics to measure sustainability and viability’. Niklas Luhmann argued that the basic idea of autopoiesis (selfmaking) also applies to non-biological, social systems (business, industries, corporations), producing their own elements. He understood human-made organisations and society as polycentric collections of interacting social systems through communication - i.e. cognition - and distinguished three types of social systems: interaction by conversation, organisations and function systems of communication. Sustainability can be achieved by using positive (amplifying) and negative (damping or corrective) feedback information in a balanced order. Communication, or the constant gathering and sharing of (new, real-time) information, creates the very basis for adaptation, maximum control and predictability. A continuous learning process is the basis for long-term continuity of all social systems of communication. Valuedriven business ethics and corporate social responsibility are feedback (information) which, along with all relevant information, need to be used to maintain stability. Therefore, an organisation cannot afford to ignore this, because only exchange of all relevant information allows for autopoietic functioning and longevity. Sharing of information confirms the Stakeholder Theory by Edward Freeman, whose systemic deliberation suggests that the value from businesses can’t be created in isolation but in cooperation and communication with all share- and stakeholders.

Gregory Bateson wrote: “We create the world that we perceive, not because there is no reality outside our heads, but because we select and edit the reality we see to conform to our beliefs about what sort of world we live in. The man who believes that the resources of the world are infinite, for example, or that if something is good for you then the more of it the better, will not be able to see his errors, because he will not look for evidence of them.” Bateson confirmed that all ‘living systems’ depend on information feedback mechanisms and com putare, which means reflection by cognitive abilities. ‘Living Systems’ are, including your business: • Social, political, financial and management systems in groups, communities, nations, international relations and corporations • Mental systems: in and between minds, communication, the spread of ideas, the growth of attitudes, ethics, and norms of behaviour • Engineering systems, control of automatic machines, computer theory • Biological systems: processes within cells, organ growth, embryo development, organisms and the process of evolution • Food supply and habitat. Therefore, all we have to do is copy nature. Simple and easy! This is the latest in a monthly series of articles by Arend van Campen, founder of TankTerminalTraining, who can be contacted at arendvc@ tankterminaltraining.com. More information on the company’s activities can be found at www.tankterminaltraining.com. References: David Seidl: Luhmann’s theory of autopoietic social systems (2004) Joachim Monkelbaan: Governance of Sustainable Development Goals (2019) Edward Freeman: Stakeholder Theory (2009) Gregory Bateson: Steps to an ecology of mind (1972) Van Foerster: On Constructing a Reality, in Environmental Design and Research (1973)

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UP WITH DEMAND GAS TANKERS • SHIPOWNERS IN THE LPG SECTOR HAVE FACED SOME SERIOUS CHALLENGES OVER THE PAST YEAR BUT SEEM TO HAVE COME THROUGH WITHOUT TOO MUCH DIFFICULTY SHIPPING FUNDAMENTALS are generally assessed on the basis of the balance between vessel supply and vessel demand. In the gas trades, certainly in the larger vessel segments, there is though another metric to be taken into account: the price of LPG in different parts of the world. For very large gas carriers (VLGCs), which in a normal market work exclusively in LPG, earnings over this year have reflected the generally tight arbitrage between domestic US prices and those available in the major importing countries in Asia.

 LENGTHENING WAITING TIMES FOR PANAMA CANAL TRANSITS ARE HELPING REDUCE EFFECTIVE VESSEL SUPPLY AND SUPPORT FREIGHT RATES FOR LARGER CARRIERS

HCB MONTHLY | DECEMBER 2021

High LPG prices in the US reduce the availability of export volumes and also reduce end-user demand, particularly in the petrochemical sector, depending on the competitive position compared to naphtha prices, and in the propane dehydrogenation (PDH) market, a significant draw for propane imports into China in particular, where margins are currently very tight. These factors tend to unwind but it takes time. High prices in the US are prompting investment in well completion, bringing more NGL volumes into the market and adding to inventories, though these are currently still below the five-year rolling average. That had a noticeable effect during the third quarter, with North American LPG exports up by 16 per cent compared to the same period in 2020. The other issue facing the global LPG

trades over the past year has been the output curbs introduced by the Opec+ nations, primarily to support global crude oil prices. That has meant less associated gas and lower LPG availabilities. That situation does seem to be easing somewhat, although Saudi Arabian LPG exports were also constrained in July due to production issues relating to power outages. On the other hand, Iranian exports have recovered, rising more than 90 per cent year-on-year in the third quarter, with most of that heading, not surprisingly, for China. FEEL IT IN THE POCKET Overall, in fact, the third quarter was a decent one for the major VLGC owners. BW LPG recorded timecharter equivalent income of $104.8m, up from $101.5m in the same period in 2020, with a more even balance between timecharter and spot earnings. EBITDA slipped slightly to $64.5m, though operating profit improved from $32.5m to $39.2m, largely as a result of one-off gains. Dorian LPG posted revenues of $63.1m for its second fiscal quarter to end September, up from $54.7 a year earlier, with operating income well ahead of 2020 levels at $19.1m and net income rising from $0.54m in the same period 2020 to $14.1m. Avance Gas

TANKER SHIPPING 07

saw revenues slip slightly, from $48.7m in the second quarter to $47.4m, though lower depreciation and amortisation helped operating profit improve from $5.75m to $8.08m and net profit rose from $1.47m to $4.22m. Fourth quarter results are likely to show an even brighter picture. Since the end of September, VLGC rates have continued to rise, with timecharter equivalent rates hitting year-high figures of more than $40,000/day by late November. More is expected in 2022, with BW LPG saying it expects US LPG inventories to be back towards average levels by the second half of the year and the still-strong oil price supporting further production growth as well, potentially, more output from Opec+ producers. At the same time, demand remains strong and is likely to continue to rise. There is further growth expected from the retail sector, especially in emerging economies and, while price will remain an issue, the addition of new petrochemical capacity during 2022/23 should also offer additional LPG remand. More particularly, there are several

new PDH plants due onstream in China between now and 2025, which will pull in a significant volume of new propane imports. Avance Gas calculates that six new facilities scheduled to be commissioned by the end of 2023 will add more than 5.0 mta to import demand. SUPPLY-SIDE WORRIES The cloud hanging over the VLGC sector is the current very high orderbook, which stands at some 24 per cent of the existing fleet, according to BW LPG, with a heavy delivery schedule through to 2024. Indeed, compared to a global VLGC fleet of 323 vessels at end-2021, 69 newbuildings are due to arrive by the end of 2024, with 42 of those scheduled for 2023 alone. Absent further contracting and any additional demolition activity, that points to a fleet of 380 VLGCs by the end of 2024. However, there will be some candidates for demolition emerging in the coming few years, partly due to the age profile of the fleet – 10 per cent of which is now older than 25 years – but also as a result of increasingly strict emissions controls. Retrofitting VLGCs

to meet those standards will be an expensive business and owners of older ships may well feel that is not financially viable. Even if they continue trading, operators may have to reduce sailing speeds to achieve emissions targets, effectively reducing carrying capacity. Another factor impacting the availability of VLGC capacity at present is the level of delays for transit through the Panama Canal, where LPG carriers account for some 23 per cent of transits. By the fourth quarter, waiting times for gas ships had risen to around two weeks, with the Canal prioritising LNG carriers, containerships and passenger vessels; VLGCs are currently not able to book slots more than 14 days in advance and the new locks installed in the Canal are restricting its capacity. As most of the growth in LPG demand is expected to be found in Asia, US exports will mostly be routed via the Panama Canal so continued delays will have the effect of taking capacity out of the market, though it may also make Middle East exports look more attractive – as well as those stemming from export facilities on Canada’s Pacific coast. AT THE SMALLER END Matters are different in the smaller gas tanker segments, although these too have benefitted to some extent from rising LPG exports from the US, with BW Epic Kosan (BWEK), the largest player in the sector, noting continued strong demand for services within the Americas but also this year to Africa – and even occasional long-haul voyages to Asia. But the fully pressurised and semirefrigerated LPG tanker sectors also work heavily in petrochemical gases, which VLGCs cannot handle, and these trades have been adversely affected by the Covid pandemic, which has reduced demand in Asian markets. As a result, BWEK notes, all of the smaller LPG tanker sectors are still recovering from long-term market lows and, for the third

 BW LPG HAS BEEN BUSY RETROFITTING EXISTING SHIPS WITH DUAL-FUEL ENGINES TO RUN ON LPG, HELPING TO MEET STRICTER IMO EMISSIONS TARGETS

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quarter 2021, remained below the long-term average. For instance, BWEK’s own timecharter equivalent earnings, on a per-ship, per-day basis, came in at $11,346 for the third quarter as a whole and, while this was 5 per cent up year-on-year, it was still below the long-term market average of $12,100. But the market does appear to be showing some recovery and BWEK says there is further upside ahead. One thing that marks the smaller sectors out from their VLGC cousins is the relative lack of any significant newbuilding activity, with the current orderbook for fully pressurised ships standing at 4.7 per cent of the existing fleet and for smaller (up to 13,000 m3) semi-refrigerated ships at just 2.1 per cent. That indicates an overall fleet growth of less than 1 per cent per year out to 2024, not taking account of the fact that the number of small gas ships aged 30 years or more exceeds the number of scheduled newbuilding deliveries. It is difficult to draw any conclusions from BWEK’s third quarter results, as the company was only formed earlier this year through the merger of Epic Gas and Lauritzen Kosan and the fleet size and cost base has changed considerably compared to a year ago. Nevertheless, it is noticeable that timecharter equivalent earnings were higher than in the second quarter of the year, although like many ship operators in all sectors of the business, operating costs also increased, largely as a result of the difficulties posed as a result of the Covid pandemic in terms of crew changes and the delivery of spare parts. Those difficulties look likely to remain in the near term, along with inflationary pressures in various sectors. However, BWEK says, looking ahead, recovery is already evident. Much of that reflects the imbalance between the modest fleet growth, expected to be some 0.7 per cent this year, and overall demand, where global LPG seaborne trade is expected to end the year 5.2 per cent up on 2020.

 A VERY SMALL ORDERBOOK IS HELPING TO SUPPORT EARNINGS IN THE FULLY PRESSURISED AND SMALLER SEMI-REFRIGERATED MARKET SEGMENTS

HCB MONTHLY | DECEMBER 2021

VARIED FLEET In the mid-size sector, the story of the last year has been on of stability, according to Belgium-based Exmar, with rates remaining at “sustainable” levels. It believes there are reasons to suggest that the sector will remain in a positive sentiment through to the end of 2021 at least, especially as a result of the exceptionally strong energy market. During the third quarter it secured timecharter employment in the range of $750,000 to $800,000 per calendar month, with timecharter cover already at 66 per cent for 2022. Timecharter equivalent rates for mediumsized LPG tankers stood at $23,026 per day at the end of the third quarter, up from $21,412 per day a year earlier. Indeed, according to Exmar’s figures, this was the best performing LPG tanker sector, as only very small pressurised tankers also managed to see any increase, that on the back of improved refinery activity. By contrast, VLGC rates were down almost 10 per cent on the year and, although

they had stabilised, they were at “somewhat disappointing levels”, Exmar says, primarily as a result of low US LPG inventories and the subsequent “challenging arbitrage pricing” for US Gulf loadings. Indeed, timecharter rates were very similar to those for mid-sized vessels of half their capacity. Exmar posted third-quarter operating profit of $4.4m for its shipping activities (including LNG), well up on the $3.6m recorded a year earlier. That figure was boosted by the arrival of its first dual-fuel VLGC Flanders Innovation, which went on a long-term charter to Equinor in August, as well as rising earnings from the mid-size segment. A sister vessel, Flanders Pioneer, arrived in September and will have an impact on Exmar’s fourth quarter results. As this issue of HCB went to press, Navigator Gas had not yet released its third quarter results, which should give a clear indication of the trajectory of the Handysize LPG tanker segment; those results will be reported in HCB’s weekly newsletter once they are published.

SECTION SLUG 09

LOOK TO THE EAST RESULTS • ODFJELL TANKERS REPORTED SLIGHTLY BETTER FINANCIALS IN THE THIRD QUARTER AND, WITH THE FUNDAMENTALS LOOKING GOOD, EVEN BETTER TIMES LIE AHEAD IT IS NO SECRET that many international supply chains, particularly in containerised sector, are currently strained to unprecedented levels, with major congestion at ports around the world. Less well publicised is the fact that similar issues are affecting the deepsea chemical tanker sector too. Speaking on the release of Odfjell Tankers’ third quarter results, CEO Kristian Mørch said this: “The chemical tanker market was strong in the eastern hemisphere, but continued supply disruptions in the west (in particular the US) remain a challenge.” More specifically, ongoing US supply disruptions were exacerbated by additional weather-related shutdowns; those also affected the refining sector, leading to a weak market in the clean petroleum product (CPP) trades and an influx of swing tonnage into the chemicals sector. It was not all bad news, though, as lower US chemical exports were partly offset by strong nominations for Far East liftings, which improved the availability of backhaul cargoes for the deepsea fleet. Overall, Odfjell Tankers reports that volumes were stable in the third quarter, although the cargo mix was less favourable as tankers had to lift CPP cargoes out of the US. Swing tonnage also cut into vegoil volumes. As a result of all this, Odfjell Tankers managed to achieve timecharter earnings of $125.0m in the third quarter, slightly up on the prior quarter but down from $128.5m a year earlier. EBITDA also strengthened

 WITH LITTLE APPETITE FOR NEWBUILDING, THE CHEMICAL TANKER MARKET IS ANTICIPATING TIGHT SUPPLY IN THE FUTURE

HCB MONTHLY | DECEMBER 2021

somewhat from the second quarter and the adjusted net loss improved from ($10m) to ($4m). FLEET ADJUSTMENTS One element in the profit adjustment was a $21m impairment booked in relation to the agreed sale of Odfjell’s last three owned short-sea regional vessels operating in Asia. The sale marks the exit of Odfjell from this segment, with a fourth ship on timecharter also due to be redelivered to owners in January. “These vessels have not been able to deliver satisfactory results and we have consequently taken the decision to exit this niche market,” Odfjell says. Following the closing of the sale in early 2022, Odfjell will focus solely on deepsea tanker operation. Odfjell has also concluded the sale of two

ethylene/LPG carriers to BW Epic Kosan, again marking its exit from the gas tanker sector, although the deal has left it with a small shareholding in BW Epic Kosan. “The exit from gas and our last short-sea vessels operating in Asia concludes the streamlining of our deep-sea platform,” Mørch noted. Mørch was also optimistic about the prospects for the chemical tanker sector, acknowledging that the remainder of this year still looks likely to be constrained. “There are signs of improvements in our markets, but it will take time for a recovery to materialise,” he said. That optimism is grounded in supply-side factors. There is currently little appetite from owners for newbuildings: costs are high and there is a great deal of uncertainty over future environmental restrictions, making it risky to invest now. Meanwhile, the global chemical tanker fleet is ageing, with an increasing proportion of the current fleet now over 20 years old. Those older stainless steel tankers are moving out of core chemical trades into “retirement trades” and, while the overall fleet is still growing slowly, the orderbook has shrunk dramatically and aggregate cargo volumes remain on a positive trend. Tonnemile demand is expected to outpace net fleet growth over each of the next four years, Odfjell calculates. www.odfjell.com

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TAKE THE PLUNGE ACQUISITION • HAFNIA IS BUILDING A SIZEABLE POSITION IN THE CHEMICAL/PRODUCT TANKER SECTOR WITH ITS ACQUISITION OF CHEMICAL TANKERS INC HAFNIA LTD, the BW Group company that currently operates just over 200 product and chemical tankers, has agreed to acquire all the outstanding shares in Chemical Tankers Inc (CTI) in an all-share transaction, adding 32 modern IMO II chemical/product tankers to its fleet. Under the terms of the deal, CTI’s shareholders will receive shares in Hafnia, representing 21.5 per cent of the combined entity. Funds managed by Oaktree Capital Management, CTI’s major shareholder, will then hold some 20.4 per cent of Hafnia. The CTI fleet comprises eco-efficient vessels built between 2015 and 2017,

 HAFNIA BELIEVES THE PRODUCT TANKER MARKET IS SORELY IN NEED OF CONSOLIDATION

consisting of six MR coated tankers of 49,000 dwt, 18 coated Handy tankers of 38,000 dwt, and eight 25,000-dwt stainless steel tankers. “The addition of the CTI fleet will help enhance our resilience in the face of volatile markets and create a more sustainable and future-proof transportation business that will include the ability to transport methanol, in addition to many other cargoes. I am grateful to Oaktree and the deal teams on both sides for their hard work towards the completion of the transaction,” says Hafnia CEO Mikael Skov. CTI was only formed in August this year, after Oaktree bought out its partner in Navig8 Chemical Tankers, established in 2013 with Navig8 Group. Its vessels have until now operated in various tanker pools operated by Navig8 and Odfjell, or on timecharter to third parties.

POOLS WITH BENEFITS Hafnia has long been an advocate of consolidation in the product tanker market and this transaction underscores its commitment to grow its platform to maximise stakeholder value. “Consolidation enables Hafnia to achieve improved earnings capability through the shipping cycle,” the company states. “Most importantly, the transaction will complement Hafnia’s existing commercial activities in the Handy and MR segments whilst enabling enhanced trading flexibility through the ability to carry both clean petroleum products and chemicals, limiting ballast time by optimising triangulation and offering material cost synergies.” “This merger is the culmination of a thorough strategic process,” adds Guillaume Bayol, Oaktree’s managing director. “It will allow CTI shareholders to benefit from the scale and commercial capabilities of Hafnia, while enabling Hafnia to expand its platform with a sizeable and young ECO design IMO II product/chemical tanker fleet. “The addition of the CTI fleet brings with it new trading capabilities which, combined with Hafnia’s existing fleet and platform, will enhance the combined group earnings generation,” Bayol adds. “We believe we’ve identified a best-in-class partner in Hafnia and are excited to embark on a promising journey alongside the BW Group and other Hafnia shareholders.” The transaction remains subject to consent from some of CTI’s existing financiers but Hafnia expects it to close by the end of January 2022. After closing, Hafnia will operate a fleet of 233 product and chemical tankers, making it the world’s largest operator in the segment. The new ships will also reduce the average age of the Hafnia fleet, while also assisting it in its journey to introduce operational efficiencies to improve its environmental performance. chemicaltankersinc.com hafniabw.com

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THE RIGHT COURSE SUSTAINABILITY • STOLT TANKERS HAS PUT IN PLACE OPERATIONAL CHANGES THAT ARE ALREADY DELIVERING LOWER FUEL CONSUMPTION AND, THEREFORE, LOWER EMISSIONS STOLT TANKERS SAYS it has managed to reduce its fuel consumption by 6 per cent since 2020, adjusted for changes to its fleet composition. This has delivered CO2 emissions reductions equivalent to taking 18,000 cars off the roads for a year. Stolt notes that, following the signing of the Glasgow Climate Pact, it is clear that environmental concerns are increasingly pressing for governments and businesses alike. To support the shipping industry’s drive to reduce its carbon footprint, in 2020 Stolt Tankers published its ambition to reduce its own carbon intensity by 50 per cent by 2030 (relative to 2008) and to become a fully

HCB MONTHLY | DECEMBER 2021

carbon-neutral business by 2050. There are two drivers for that: first is a simple ambition to operate more sustainably; but secondly there is also a business imperative in the face of new legislation, such as the upcoming EU Emissions Trading System (ETS). As from 2023, shipowners will be charged for each tonne of in-scope CO2 emitted. This presents a considerable challenge for the shipping industry where costs are already at an all-time high, margins are thin and supply chains increasingly volatile. HOW TO GET THERE Stolt Tankers explains that it has achieved savings in the consumption of bunker fuel by improving operational and technical efficiencies and fleet optimisation. Speed and trim were optimised according to weather conditions and enhanced maintenance programmes – including additional hull and propeller cleaning – also reduced fuel use. In addition, several ships were installed with advanced power-saving propeller fins. The bunker savings directly correlate with

a reduction in CO2 emissions. At a time of high oil prices, and therefore high bunker prices, this also generates a considerable cost saving. Commenting on the need to reduce CO2 emissions and the new carbon tax, Lucas Vos, president of Stolt Tankers, says: “Stolt Tankers has a long history of doing the right thing when it comes to protecting people and the planet. We support requirements for businesses to reduce carbon emissions. We are working hard to meet our new carbonreduction goals and I am pleased to see that we are making good progress towards these ambitions. However, the impact of further regulation, including the EU carbon tax, will be felt all the way through the supply chain as costs must inevitably be passed on to our customers and, ultimately, the end consumer.” Stolt Tankers is also partnering with other leaders in the maritime community to explore new technologies focusing on decarbonisation, emissions reduction and alternative fuels. The company is a member of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping and is seconding staff to the centre to collaborate on decarbonisation projects. Stolt Tankers is one of the three largest operators of chemical tankers in the world, with a fleet of more than 150 sophisticated ships carrying chemicals, acids, edible oils and clean petroleum products. www.stolt-nielsen.com

TANKER SHIPPING 13

STAY AFLOAT INLAND WATERWAYS • BASF MOVES A LOT OF PRODUCT ON THE RHINE BUT VARIABILITY IN WATER LEVELS CAUSES PROBLEMS. IT HAS TAKEN SOME STEPS TO IMPROVE RELIABILITY BASF’S HEADQUARTERS PLANT sits on the banks of the Rhine in Ludwigshafen, Germany. That location, pictured below, gives it easy access by waterway to the main trading and storage hubs in the ARA region and a head start in the modal shift to move freight off the roads. However, in recent years, low water events on the Rhine have caused disruption to the planned movement of goods, which have been compounded by issues on the rail network. So as to achieve some level of dependability, BASF and its logistics partners have been looking at how to design and develop inland waterway vessels capable of coping with low water events, particularly following the

extreme drought in the summer and autumn of 2018. As a first step, BASF has since 2019 chartered in a number of vessels able of transporting significant volumes even in low water, in partnership with various shipping companies. This measure has proved successful and, BASF says, is continuing to be developed. In addition, the company expanded its re-cooling capacity, developed a digital early warning system to give alerts on likely low water levels, in concert with the Federal Institute of Hydrology, and added flexibility to its loading points at selected production plants, allowing it to switch to rail transport when needed. More fundamentally, BASF is planning to

expand its inland waterway fleet with specially designed vessels. One gas tanker has already been built and delivered, operated by HGK Shipping; in collaboration with external partners and Stolt Tankers, a low-water chemical tanker is currently under construction; and another low-water specialised vessel is currently being built by GEFO. “With these three ships, we can once again significantly improve the security of supply and thus the competitiveness of the site, even during critical low-water events,” says Dr Uwe Liebelt, president of European Verbund sites at BASF. PARTNERS IN DESIGN The GEFO vessel is designed for the carriage of special products and will have eight stainless steel tanks, two of which will have special coatings. The 110-metre long tanker, to be named Canaletto, is due for delivery in mid-2022. HGK’s gas tanker, Gas94, is already in service; this has a hull form optimised for buoyancy through a sophisticated arrangement of components such as cargo tanks and propulsion technology, which also makes it wider than usual gas tankers. It is capable of carrying a 200-tonne cargo even when water levels at Kalb are 30 cm. BASF calls the Stolt tanker “the flagship of the new low-water vessels”. It too can pass Kalb in 30 cm of water with a cargo of 650 tonnes and even at medium levels of low water will be able to carry some 2,500 tonnes, twice as much as conventional inland vessels. It will be 135 m long and 17.5 m wide, with a lightweight construction and ten stainless steel cargo tanks, and is due for delivery in late 2022. “We took the initiative for this development in 2018, because there was no such vessel available on the market,” says Liebelt. “I am pleased that we were able to win the shipping company Stolt for the implementation.” “In all three cases, we worked closely with shipping companies and external partners and were able to develop custom-fit models with them that exactly meet our needs,” says Barbara Hoyer, vice-president, Domestic Delivery Services at BASF. www.basf.com

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NEWS BULLETIN

TANKER SHIPPING

ONE DOWN, FIVE TO GO

Proman Stena Bulk has launched the first of its three 49,900-dwt dual-fuel methanol tankers at Guangzhou Shipyard. Final delivery of the new vessel, Stena Pro Patria, is scheduled for first quarter 2022. Proman also has three more similar vessels on order at Guangzhou, all due for delivery by the end of 2023. It is planned that each vessel will use some 12,500 tonnes of methanol per year as fuel. “Using widely available and cost-competitive ‘grey’ methanol produced from natural gas, greenhouse gas (GHG) emissions in the vessels’ normal commercial operations will be significantly reduced compared to conventional marine fuels,” Stena Bulk says. “This includes the virtual elimination of sulphur dioxide and particulate matter, 60 per cent reduction of nitrogen oxide and a cut in carbon dioxide, offering immediate improvements to air quality around ports and coastlines.” All six ships are being built to the same design, using the latest energy efficiency technology, including continually controlled combustion, optimised tuning, and redesigned and aerodynamic hull lines. The will all be fitted with the MAN B&W 6G50ME-C9.6 MW Tier III engine.

HCB MONTHLY | DECEMBER 2021

The new fleet will contributed to the shared vision of Proman and Stena Bulk to dramatically accelerate the energy transition in shipping through concrete commitments and tangible action. “Together, we are working to leverage both companies’ ambition and expertise to make methanol more widely available to vessel owners around the world and help them to join us on the transition to a cleaner shipping industry,” a joint statement says. www.stenabulk.com www.proman.org MOL GOES BIG IN METHANOL

Mitsui OSK Lines (MOL) has acquired a 40 per cent stake in Waterfront Shipping for $145m as part of a broader strategic shipping partnership with Waterfront’s owner, Methanex. The arrangement, involving the world’s largest methanol producer and the largest methanol shipping company, aims to advance the commercialisation of methanol, including renewable methanol, as a viable marine fuel. Waterfront Shipping currently has a fleet of some 30 modern, deepsea tankers dedicated to keeping an uninterrupted flow of methanol moving from production sites to customers around the world. Since the announcement, MOL has taken delivery of Capilano Sun, a 50,000-dwt dual-fuel methanol tanker capable of running

on methanol. The new tanker will be chartered to Waterfront Shipping. MOL is one of the largest operators of methanol carriers, with a current fleet of 18 ships, and also operates four of the existing 13 dual-fuel methanol tankers in service. www.mol.co.jp www.wfs-cl.com THUN ENDS NEWBUILD SERIES

Thun Tankers has taken delivery of Thun Empower (above), the last in the four-strong E-class series of 8,000-dwt newbuildings from Ferus Smit. The series is an evolution of Thun’s existing product and chemical tanker designs, with reduced fuel consumption and carbon emissions, using LNG for main propulsion. The IMO II tankers have epoxy-coated tanks and cargo heating and are employed in the Gothia Tanker Alliance network. Speaking about the finalisation of the current newbuilding programme, Thun Tankers’ CEO Joakim Lund says: “This series of tankers provide our clients with the dynamics of always having climate-smart high quality tankers in the right position at the requested time.” Johan Källsson, managing director of Erik Thun, adds: “We always strive to meet our customers’ various demands with the best solution available for the time being, as their sustainable Swedish partner over generations.” thuntankers.com

TANKER SHIPPING 15

INNOVATING FOR INOVYN

Inovyn, the vinyls subsidiary of Ineos, has set up a partnership with Verenidge Tankrederij (VT Group) to build Europe’s first bulk liquid chemical barge to be powered by hydrogen. The vessel will transport raw materials between Inovyn’s Belgian sites in Antwerp and Jemeppe and will be supplied with hydrogen fuel generated as a co-product of Inovyn’s chemical manufacturing operations. VT Group will retrofit an existing tank barge (right) with hydrogen propulsion technology, replacing its existing gasoil-fuelled engine. This move alone will reduce annual carbon dioxide emissions by some 1,000 tonnes. “This is the latest example of Inovyn driving the decarbonisation agenda as part of Ineos’s €2bn investment programme,” says Wouter Bleukx, hydrogen business manager at Inovyn. “Hydrogen-powered transport will play a critical role in Europe’s journey to net-zero and Inovyn is perfectly positioned to drive down emissions in the transport sector as we are already a producer of low-carbon hydrogen and have significant demand for transportation.” VT Group will own and operate the barge on behalf of Inovyn. Niels Groenewold, CEO of VT Group, comments: “Our strong relationship with Inovyn has always enabled us to innovate. Being able to contribute to a net-zero operation is very valuable to us and is perfectly aligned with our company’s sustainability ambitions.” www.inovyn.com vtgroup.nl STEALTH SPINS OFF PRODUCT TANKERS

StealthGas, which operates primarily in the LPG tanker sector, has decided to spin off its other tankers into a separate company, Imperial Petroleum, and has applied for its shares to be listed on the Nasdaq Capital Market. Imperial will take over three product tankers and one Aframax oil tanker. The transition is expected

to be completed in December. The StealthGas board of directors believes that the move will provide significant benefits to both companies and their shareholders. “The transaction is expected to enable both StealthGas and Imperial Petroleum to increase its business focus, alleviate market confusion and attract new investors, and, with this separation of sectors, give shareholders the flexibility to adjust their holdings according to the sectors in which they want to invest,” the company says in a statement. www.stealthgas.com KIRBY KEEPS AN EYE ON THE WEATHER

Kirby Corp has reported third quarter consolidated revenues of $598.9m, up from $496.6m in the same period last year. However, adjusted net income fell from $27.5m to $10.3m, with a one-time impairment charge related to the firm’s exit from the Hawaii business and the restructuring of its coastal marine business pushing it to a net loss of $264.7m. Early in the quarter, Kirby experienced improving demand in its inland operations, with barge utilisation reaching the mid-80s per cent; by August, though, the Covid-19 delta variant slowed the pace of economic recovery, reducing the demand for refined products, and the inland business was also badly hit by Hurricane Ida, which caused the closure of key waterways as well as refineries and chemical production facilities and disruption that lasted well into October. By the end of October, however, the market had improved considerably. The coastal business showed modest increases in spot market demand and barge utilisation as a result of “modest demand improvements” for refined product and black oil transport services. Revenues from the coastal business in the third quarter were 13 per cent up on the prior year, although much of this represented bunker

fuel surcharges. “Overall, we expect our fourth quarter earnings to sequentially improve,” says CEO David Grzebinski. “In marine transportation, with some major refinery and chemical customers only recently resuming operations post-Hurricane Ida, and portions of the Gulf Intracoastal Waterway still closed, some of the impacts from the storm have carried into the fourth quarter. Despite these headwinds, we have seen steady improvement in volumes and inland barge utilisation during October which we expect will contribute to improved marine transportation revenue and operating income in the fourth quarter.” The fourth quarter is expected to be particularly good for the inland barge sector, with refineries and petrochemical plants in Louisiana restarting after Hurricane Ida and customers boosting production to meet pent-up demand. While ongoing navigational issues in the wake of Hurricane Ida which have resulted in extended closures of key waterways and contributed to some increases in barge utilisation should subside, Kirby expects that the onset of seasonal winter weather and continued economic growth should result in improved barge utilisation. www.kirbycorp.com

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16 STORAGE TERMINALS

MAKING THE CHAIN RENEWABLES • THE ENERGY TRANSITION IS HAPPENING AND ROTTERDAM IS AIMING TO PLAY A MAJOR ROLE. A NEW TERMINAL AND LOGISTICS OPERATOR, GES, IS DOING ITS PART GLOBAL ENERGY STORAGE (GES) has announced its first investment project since it was established earlier this year. It is buying an interest in the Stargate Terminal at Europoort in Rotterdam from Gunvor and will develop more than 20 ha of land in the heart of the port, with the support of the Port of Rotterdam Authority, to develop a state-ofthe-art bulk liquids terminal specifically to handle low-carbon products. GES will install a new jetty and is planning to become part of the logistics chain that will be required to import ‘blue’ and ‘green’ hydrogen into Rotterdam, as part of the port’s plans, announced earlier, to become a hub for

HCB MONTHLY | DECEMBER 2021

hydrogen import and distribution in northern Europe. It will also handle biofuels, gases, ammonia and other hydrogen carriers. “Rotterdam is one of the largest ports in the world and the gateway into Europe, so I’m delighted to be able to announce our first deal here,” says Peter Vucins, CEO of GES. “Our vision is to take an existing oil terminal and develop it into a state-of-the-art low-carbon products terminal. This development is the first stage of our plans for an international network of infrastructure, serving the energy transition needs of our customers.” Gunvor will remain a long-term partner of GES in Rotterdam and plans to update its

facility there to supply Dow’s cracker with feedstocks to produce circular plastics. “We’re pleased to be partnering with GES to further support the development of environmentally responsible projects in the port of Rotterdam,” says Shahb Richyal, global head of portfolio at Gunvor Group. “This deal is in line with Gunvor’s strategy to support the advancement of Energy Transition initiatives at our key asset locations.” QUICK OUT OF THE BLOCKS GES was formed in May this year by Peter Vicuns and Eric Arnold, the management team of Global Petro Storage (GPS), with the aim of focusing on terminal and logistics infrastructure to handle low-carbon commodities, energy transition fuels and, potentially, renewable energy sources. It received backing of up to $250m from Bluewater, whose managing director, Martin Somerville, said at the time: “Peter and Eric are genuine leaders in the sector, and that’s why we’re supporting this new vehicle to build on the continuing success of GPS. GES will allow them to target new markets and opportunities that help deliver new storage solutions for the energy transition.” The Rotterdam project will benefit from the local industrial cluster as well as its deep water access and excellent connectivity to inland waterways and pipeline infrastructure for the onward distribution of products. “The port is ideally placed for this development, which will bring low-carbon technology to one of the world’s great trading hubs that has taken a leading position in the energy transition with very significant and ambitious developments of its own,” Vucins adds. GES is only at the beginning of its life and there is plenty more to come, as executive chairman Eric Arnold explains: “This is the first of what we hope will be many deals. We are looking to develop an international network of storage and logistics infrastructure for low-carbon commodities. You can expect to see a rapid expansion across 2021-22.” GES says it will concentrate on key global hubs, international cross-linked business, and long-term relationships with top-tier energy suppliers. www.global-energy-storage.com

Issue 8

Winter 2021

TSA

Tank Storage Associa on

Tank storage provides an essential interface between sea, road, rail and pipeline logistics.

Page 20

PX G R O U P I S LOOKING TO THE FUTURE: IN C O N V E R S AT I O N W I T H J AY B R O O K S .

The quarterly magazine from the Tank Storage Association

Also in this issue, we look at the transition to Net Zero and the bulk storage and energy infrastructure sector’s focus on supporting the needs of a constantly evolving supply chain.

TSA

Tank Storage Associa on

Insight is published by the Tank Storage Association, the voice of the UK’s bulk storage and energy infrastructure sector. To contact the editorial team, please email info@ tankstorage.org.uk info@tankstorage.org.uk

Peter Davidson Executive Director, TSA

TSA Insight Team Peter Davidson, Barrie Salmon, Nunzia Florio CONNECT WITH US @UK_TSA Tank Storage Association TSA @uk_tsa

CONTACT Tank Storage Association Devonshire Business Centre Works Road Letchworth Garden City Herts. SG6 1GJ United Kingdom Telephone: 01462 488232 www.tankstorage.org.uk

TSA has used reasonable endevours to ensure that the information provided in this magazine is accurate and up to date. TSA disclaims all liability to the maximum extent permitted by law in relation to the magazine and does not give any warranties (including any statutory ones) in relation to its content. Any copying, redistribution or republication of the TSA magazine(s), or the content thereof, for commercial gain is strictly prohibited unless permission is sought in writing from TSA. Claims by advertisers within this magazine are not necessarily those endorsed by TSA. TSA acknowledges all trademarks and licensees.

One of the most significant developments for the Tank Storage Association over the past few months has been the launch of the first sector-wide Energy Transition Charter, aﬃrming the industry’s commitment to supporting the achievement of the UK’s climate neutrality targets. The Energy Transition Charter has been developed in conjunction with member organisations and is accompanied by strategic commitments to encourage leadership, innovation, skills development, promotion and engagement. In this issue of Insight, we examine the plans, innovations and incentives necessary to unlock future opportunities. We also highlight our sector’s focus on supporting the needs of a constantly evolving supply chain. I hope you enjoy this new edition of Insight and don’t forget to follow us on social media to keep up to date with all our latest news.

Contents

In Focus Tank Storage Association launches new Energy Transition Charter. Unlocking the roadmap for storage and transport of CO2 and hydrogen Key participant in UK’s first Net Zero power station to collaborate with Navigator Terminals to unlock roadmap for storage and transport of CO2 and hydrogen, Mobile Degassing with ENDEGS – No Visible Flame. No Odor. No Smoke. ENDEGS tells Insight about its mission to lower emissions and contribute to protect the wonderful world around us.

Page 14

Page 12 12

You may not know much about molasses but for ED&F Man it is big business Molasses, the co-product from cane sugar production, is big business for ED&F Man.

Oil terminals in transition as Net Zero approaches Campaigns, initiatives and much lobbying and political debate continue to gather pace regarding energy transition, decarbonisation and reductions in greenhouse emissions.

World leader in composite hose technology Dantec is a world leader in composite hose technology, exporting products from its UK factory to over 60 countries worldwide.

Supporting the needs of the evolving supply chain Innovation and agility are at the heart of the UM Terminals business strategy.

px Group is looking to the future: in conversation with Jay Brooks Jay Brooks, Site Director Industrial Parks, discusses px Group’s objectives and ambitions for the future.

Checkers Checking Checkers - Creating Continuous Competence Reynolds Training Services believe it is crucial to not only train people, embedding knowledge and developing skills, but to also assess their competency onsite as an ongoing process.

News: The Tank Storage Association has launched a new Instagram account. Stay up-to-date with all our latest news by connecting with us @uk_tsa.

Online meetings and webinars

TSA’s Annual Review of the UK’s Bulk Liquid Storage Sector is available at www.tankstorage. org.uk/publications

The COVID-19 pandemic has challenged our model of faceto-face meetings. To adapt and respond to the current situation, all of the following meetings will take place online. •

7 December: TSA Technical Committee

•

8 December 2021: TSA Council

•

9 December 2021: TSA Communications Committee

•

16 December 2021: TSA SHE Committee

For more information on TSA’s meetings, write to info@tankstorage. org.uk

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In focus

Tank Storage Association launches new Energy Transition Charter The Tank Storage Association (TSA) has formally launched a new Energy Transition Charter affirming the sector’s shared commitment to supporting the achievement of the UK’s climate neutrality targets. The Energy Transition Charter has been developed in conjunction with member organisations and is accompanied by strategic commitments to encourage leadership, innovation, skills development, promotion and engagement. As the UK transitions to a decarbonised economy, the bulk liquid and energy infrastructure sector is uniquely positioned to lead on the innovations necessary to succeed and has a crucial role in developing the necessary flexibility to manage change. Terminals are critically important in providing the vital interconnection to the various modes of liquid transportation in the UK, such as sea transport, inland barge, road, rail and cross-country pipelines, along with the essential logistics services to transfer bulk liquids from one mode of transportation to another. The industry plays an important role in providing services that are vital to the UK consumer and the blending and transformation of substances that meet the diverse needs of both industry and the public in a safe and cost-effective way. The

bulk

storage

and

infrastructure sector already has some insight into what a changing landscape might mean for its infrastructure and is already active in many of the areas of growth that will drive success going forward. Ultimately, along with significant investment in enabling infrastructure, collaboration and partnership will be key to seize opportunities and enable solutions for change. Peter Davidson, Executive Director of the Tank Storage Association, said: “The TSA and its members are committed to leading from the front in the journey to net zero. With eﬀorts already underway, the Energy Transition Charter highlights the sector’s ambitions to seize future opportunities. By working with regulators and other stakeholders to ensure an eﬀective transition to alternative energy sources, and by supporting the development of future skills, guidance and standards necessary to safely manage changing processes and inventories, our sector is committed to playing its full part in the transformative journey ahead.” For a copy of the Tank storage Association’s Energy Transition Charter, visit www.tankstorage.org. uk/publications/

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UNLOCKING THE ROADMAP FOR STORAGE AND TRANSPORT OF CO2 AND HYDROGEN

Key participant in UK’s ﬁrst Net Zero power station to collaborate with Navigator Terminals to unlock roadmap for storage and transport of CO2 and hydrogen.

avigator Terminals is the UK’s leading independent bulk liquid storage provider. It operates four terminals, each strategically located in major UK ports and serving key demand centres within the UK. Across these locations, Navigator oﬀers its customers unique storage solutions for crude, petroleum, chemical, bitumen, liquefied gas and biofuel products. With extensive knowledge and experience in handling such a wide range of specialist products, Navigator is uniquely positioned to meet the demands of an everchanging market.

1 Ltd, to explore a potential collaboration across the storage and transport of chemicals, gases and liquids in the UK, including CO2, hydrogen, and ammonia by ship. 8 Rivers Capital, a leading clean energy and clean fuels technology developer acting through its UK group, is poised to play a key role in bringing forward the UK’s first carbon capture projects, including the Whitetail Clean Energy Net Zero power station in Teesside, as well as deployments of 8RH2, the 8 Rivers technology which produces clean hydrogen and ammonia with full carbon capture.

With global attention turning towards more ambitious targets to accelerate the transformative journey to clean shipping, consideration must also focus on the ways in which the maritime sector can contribute towards a low carbon transition.

Under the terms of the agreement, the project team will explore the potential for Navigator Terminal’s existing and potential future network of storage assets across the UK to accommodate the growing demand for transport and storage of CO2, hydrogen, and ammonia as part of the wider growth of geological sequestration of carbon emissions. With outstanding supporting infrastructure, including a deep-water jetty and rail handling facilities, the Navigator Terminals’ facility at Teesside is fully integrated into the UK’s largest chemical cluster and can rapidly scale to support deep decarbonisation of these carbon intensive industries.

And it is in this context that Navigator Terminals has recently announced a memorandum of understanding (MOU) with 8 Rivers Capital LLC’s subsidiary, Zero Degrees Whitetail

With CCS progressing through its early stages of development, there is a growing demand for permanent geological storage for CO2 from emitters not co-located near to a

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suitable storage site. 8 Rivers is leading the development of the initial net zero emissions power stations in the UK, such as Whitetail Clean Energy. In these projects, nearly all air emissions, including traditional pollutants and CO2 are eliminated and pipeline-quality CO2 is produced so that it can be captured and stored oﬀshore. Produced hydrogen or CO2 or ammonia can then be transferred to a Navigator Terminals’ location before onward transfer by ship or pipeline to its destination, such as one of the UK carbon storage sites. Jason Hornsby, Chief Executive Oﬃcer for Navigator Terminals, said of the partnership: “We are the UK’s leading transport, storage and handling experts for chemicals, gas, biofuels, and fuels and operate a network of strategically located terminals. We are focused on supporting our regions to decarbonise and utilise the highest quality fuels and energy carriers, as part of supporting the UK to reach Net Zero we are adapting to the changing needs of our local industries. We recognise that in the coming decades there will be significant volumes of CO2 to be shipped for storage and this partnership with 8 Rivers forms the first step in understanding and then deploying the infrastructure needed to help the North East meet its decarbonisation goals, creating significant jobs and supply chain benefits in the process.”

“This partnership signals the latest step in our commitment to support the UK to develop world leading carbon capture capabilities through commercialising innovative power generation projects such as Whitetail Clean Energy, as well as innovative hydrogen technologies, ensuring that near all air emissions are eliminated and pipeline-quality CO2 is produced so that it can be captured and stored oﬀshore, for Net Zero emissions. But once the CO2 is captured, we need to explore, understand, and deliver infrastructure to support these assets to successfully transfer, transport and store CO2 for transport to permanent storage locations. Navigator Terminals is a leading UK terminal operator and has recognised the significant potential of CO2, hydrogen, and ammonia transport in the coming decades.” Navigator Terminals fully supports the recently launched TSA Energy Transition Charter and this partnership is testament to its commitment to work with all relevant stakeholders throughout the supply chain to ensure an eﬀective transition to alternative energy sources. For more information Navigator Terminals, visit navigatorterminals.com

about www.

For more information about 8 Rivers Capital, visit www.8Rivers.com

Cam Hosie, Chief Executive of 8 Rivers Capital, added of the project:

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MOBILE DEGASSING WITH ENDEGS – NO VISIBLE FLAME. NO ODOR. NO SMOKE.

Our mission: lower emissions. We want to contribute to protect the world around us and our technologies give the industry a way to noticeably reduce emissions.

Kai Sievers, CEO, ENDEGS Group

t’s one of those subjects that have preoccupied governments, business and the press year after year – emissions reduction. What for some people is a desirable but perhaps abstract goal, has dominated my life for over a decade. In 2007, I founded ENDEGS and developed the technology for the world’s first mobile degassing system. I was spurred on by the new German Clean Air Act, and by my son. When he was little, I taught him how to swim in local ponds without a second thought. The water quality was good, so even if he swallowed a mouthful, it was safe. That brought home to me how important good water is for quality of life, and it prompted me to wonder if the same might apply to air. Isn’t good air equally important? And if that is the case, why can we smell refineries before we see them? Can’t we do something about that?

Mobile degassing: We make smart and safe combustion possible Yes – and ENDEGS is part of it. So, our mission is, to see that fewer hazardous emissions get into the air. We want to

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contribute to protect the wonderful world around us. Our technologies give the industry a way to noticeably reduce emissions. In 2007, I therefore asked myself as an engineer how it might be possible to design a mobile device for degassing VOC and HAP (Hazardous Air Pollutants) of storage tanks, tanker ships and pipes during maintenance or in case of non-functioning of existing infrastructure, including where this was not possible at the time. It seemed to be absurd to simply accept that gases and vapours had to be released to the atmosphere, thousands of tons of them a year, for lack of a suitable solution. In 2008, we developed the world’s first trailer-mounted, autonomous, fully equipped combustion chamber for burning oﬀ hazardous gases. Since then, our leading-edge and patented technologies have enabled the on-site combustion of hazardous, explosive and/or toxic gas mixtures, safely and very nearly completely. Our systems reduce emissions by over 99,99 percent. Thus, we make a substantial contribution to reducing emissions in Europe, North Africa and soon in Asia. Critical special cases When stationary emissions-reduction systems fail, too often vapours are simply vented into the air until the system has been repaired. This releases large amounts of toxic materials – tonnes each day – into the environment, poisoning the air

Purpose-developed Mobile Combustion Units

for people and nature. Yet it would be so simple to avoid this. We have a solution that can reduce almost to zero the amount of waste released. Innovation: Once you start it’s hard to stop With any invention, you keep seeing ways to improve it. So, we soon developed and patented a process that takes care of other pollutant streams (for example from a vacuum truck or temporary storage tanks) during tank degassing. Shortly thereafter followed a patent that reduces the consumption of operating resources and extends the scope of applications. In 2010 we were the first company in the world to start burning oﬀ ammonia with excellent measured results. Today we’re in demand worldwide for degassing ammonia tanks. Further development work to the combustion chamber allows us to degas substances that tend to polymerize, without smoke or ﬂame and without polymerization, giving us another unique capability. We’ve developed solutions that allow the use of heating oil instead of gas for auxiliary firing, which enables degassing at sites where liquid gas is unavailable. We also developed and certified systems for explosion group IIC products (like hydrogen), so now we’re the only provider of safe degassing for all hazardous substances of explosive classes – IIA, IIB, IIC. One of the things we’ve done recently was build another 10 MW mobile degassing system this year. Now degassing can be done

For more information, visit www.endegs.com

Example of ENDEGS emissions reduction with a substitute VRU unit – mobile, autonomous, safe

I s s u e 8

plugand play with just one trailer

in places formerly needing 2 x 5 MW or 4 x 2.5 MW units. This saves transportation costs and setup time. It doesn’t take up much space. The system is ideal for applications involving high throughput and high concentrations, such as occur with raw gases with high energy density. ENDEGS also has a 20 MW unit available. Remote-controlled Robot for rent – Safe work inside tanks on a next level Motivated by the desire to minimize the health risk to cleaning workers, in 2020 we took a completely new step. We’ve added another pioneering technology to our lineup: Powerful robots, for the remotecontrolled cleaning of storage tanks and pits in the chemical, petrochemical, automotive, food and other industries. Customers can rent them to replace people where health risks are acute. What makes this important is that where previously people had to do the work at great risk, under rigorous safety precautions and wearing

gas masks and hazmat suits, now a robot does it – remote-controlled by an operator. This ADEX Robot is designed primarily for the rough cleaning of flat-bottom tanks. These were formerly cleaned by three workers in chemical resistant suits in several shifts. Our robot is a compact, tough multi-talent of stainless steel that meets all current environmental and safety standards. It features maximum traction on the floor through patented magnetic track plates, and has a strong hydraulically operated arm that can grip in any direction with 2,000 Newton meters of force. It’s a safe, efficient and cost-effective way to remove 24/7 hazardous and nonhazardous materials from industrial tanks. When can we drive up to your place? Contact point: David Wendel, Managing Director: info@endegs.com Tel: +49 (0) 162 24 33 486 For more information, visit www. endegs.com

ENDEGS Remote-controlled Robot – Maximum grip on the ﬂoor; cleaning with hydraulic grab arm

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News

UM Terminals team helps to raise over £32,000 for the British Heart Foundation in Dragon Boat Spectacular A team from UM Terminals helped to raise over £32,000 for the British Heart Foundation by taking part in a Dragon Boat Spectacular. Six members of the Liverpool-headquartered bulk liquid storage company, along with colleagues from the wider United Molasses Group, formed two crews of 12 for the event in Belfast. The UM boats competed against representatives from other divisions of holding company W&R Barnett to celebrate the business’s 125th anniversary. In total, 10 boats took part. The event was held at Bryson Lagan Sports in Belfast, followed by a celebratory dinner. The UM Terminals team members were Managing Director Bryan Davies, Commercial Director Vic Brodrick and colleagues Ben Maynard, Karl Pass, Lewis Chambers and Sophie Ryan. So far, the UM team – supported by match funding by W&R Barnett - has raised £32,950. In total, over £221,000 will be donated to the full range of charities nominated by the various crews taking part. Bryan Davies said: “It was wonderful to be involved in such a spectacularly successful fundraising initiative. I am

incredibly grateful to my colleagues from UM Terminals and the wider UM Group who got involved and, of course, to W&R Barnett for such a generous match funding initiative. The British Heart Foundation is a charity particularly close to our hearts as the father of our colleague, Simon Markham, died from heart disease. The substantial amount of money that we have raised will truly make a diﬀerence to the ongoing outstanding work that the charity is able to do.” The full crews for the two UM Dragon Boats were: Boat 1 – Ben Macer, Jill Pask, Sarah Cripps, Andrew Creasey, Simon Markham, Adam Pierce, Sophie Ryan, Agnieszka Sriskanthan-Reksa, Robbie Flynn, Niall O’Donnell, John Weglarz and Philip Irvine. Boat 2 – Fionn Beech, Vic Brodrick, Geraldine Carroll, Isabel Conde, Nigel Jones, James Ramsden, Karl Pass, Ben Maynard, Bastian Duesing, Lewis Chambers and Bryan Davies. For more information, visit www. umterminals.co.uk

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YO U M AY N O T K N OW M U C H A B O U T MOLASSES BUT FOR ED&F MAN IT IS BIG BUSINESS.

Molasses, the coproduct from cane sugar production, is big business for ED&F Man.

he company has been involved with sugar-rich molasses since 1783 and now operates from deep water terminals across the UK, supplying molasses and added-value molasses blends to feed manufacturers, farmers and a range of industrial customers.

They are now also a premier provider of bulk liquid storage for the animal feed, food and chemical sectors according to Managing Director, Dr. Phil Holder. “Although a niche supplier in total storage terms, we are intimately involved in the supply of food and feed grade liquids which brings its own challenges.”

“We provide receipt, storage, handling, blending and onwards distribution nationwide working closely with customers to deliver high quality tailored solutions. In addition to molasses, we handle vegetable oils, fish oils, fats and distiller syrups for animal feed and food use as well as liquid fertilisers, lube oils and specialist liquids supplying the fermentation, briquetting, chemical processing and transport industries.”

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ED&F Man operates from sites across the country, close to the key markets and import routes. The terminal at Liverpool is ideally suited for connections with the -major molasses producing countries in North and South America and is the biggest facility with a capacity of nearly 27.000 cubic metres. It is also the location of the companies Head Oﬃce. Serving the major ports in Europe, the Hull terminal has tank capacity approaching 26,650 cubic metres while the Grangemouth terminal is one of only a few facilities in Scotland serving the third party bulk storage market focusing on natural liquid products and low hazard chemicals markets in Scotland with a capacity approximately 20,000 cubic metres.

“Storage is just the start of our service oﬀering as we have the capacity to develop bespoke blended products with facilities for batch and in-line blending as well as heating and dispatch quantities from 1000 litre IBCs to full trucks. This allows us to develop balanced feeds for use direct on farm as well as a range of liquid products for use in feed manufacture.” “We are seeing increased focus on sustainability and net carbon reductions across all sectors with livestock production systems particularly under the microscope, and the ﬂexibility of molasses-based blends in seen as a big plus,” Dr. Holder continues. “Being a co-product,

Storage is just the start of our service oﬀering as we have the capacity to develop bespoke blended products with facilities for batch and in-line blending as well as heating and dispatch quantities from 1000 litre IBCs to full trucks.

molasses is a low carbon product and we are seeing increased interest in other application areas. Across our business we are working hard to improve sustainability and reduce our carbon footprint. All our electricity is from renewable sources and we have installed new high eﬃciency boilers and improved heat insulation to reduce our energy usage. Working in the feed and food chains means we are committed to providing a high quality service from all our terminals, working to high levels of environmental and quality accreditation including FEMAS/UFAS and ISO 9001. We are also certified for organic product storage.” About ED&F Man ED&F Man source, store, sell, ship and distribute agricultural products including coﬀee, sugar, molasses, animal feed and pulses. ED&F Man trade those products around the world, and with some, process and brand them for industrial customers and the supermarket shelves.

For more information, visit www.edfmanliquidproductsuk.com

For more information, visit https:// edfmanliquidproductsuk.com/ Author Dr. Phil Holder, Managing Director, ED&F Man.

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OIL TERMINALS IN TRANSITION AS NET ZERO APPROACHES

Campaigns, initiatives and much lobbying and political debate continue to gather pace regarding energy transition, decarbonisation and reductions in greenhouse emissions.

ampaigns, initiatives and much lobbying and political debate continue to gather pace regarding energy transition, decarbonisation and reductions in greenhouse emissions. This is here to stay and oil storage terminals have to actively consider their future strategy as the decline in fossil fuels accelerates in the coming years. system, i.e., its ability to detect liquid product and stop product ﬂow.

Governments have set and are setting increasingly stringent targets for the reduction in greenhouse emissions and have made some industry changing statements. For example, the UK Government has stated that no new gasoline / diesel only cars can be produced after 2030. Many car manufacturers have already stated that electrification is the future; Jaguar Land Rover, Volvo Cars and others have announced that they will only produce electric vehicles from 2025 for JLR and others on dates in the near future. This will have a dramatic eﬀect on oil terminals whose main, perhaps sole purpose, is to receive, store and redeliver ground fuels to

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filling stations. For example, some terminals in the South East of England are distributing as much as 10,000 tonnes each day of gasoline and diesel; electrification of cars and vans will lead to very significant reductions in the demand for these fuels and therefore for the tanks they are stored in at oil terminals. Then there is shipping, which is considered to be a major polluter. Eighty per cent of global cargo is carried by ships, the majority of which are running on fossil fuels stored at oil terminals around the world and if shipping was to be considered a ‘Country’ it would be the world’s sixth largest emitter. As a method of transportation though, ships emit less than 5% of the CO2 than a truck does, on a tonne-km basis. Alternative low carbon fuels seems to be attracting considerable interest in the shipping community. For example Maersk, one the world’s largest shipping companies, along with a consortium including DFDS, Copenhagen Airports, the airline SAS, Logistics Company DSV Panalpina, and Orsted, is throwing its considerable weight behind methanol. E-methanol would still emit CO2 on a tank-to-wake basis, although it avoids sulphur and particulate matter. Crucially, it is liquid at room temperature, no more toxic than diesel and easier to store and handle than ammonia or hydrogen. Manufactured by combining wind energy and energy from carbon capture (CCS) from shoreside fossilfuel powerplants, it would allow

Maersk to run its vessels in a carbonneutral – if not carbon-free – way, exceeding IMO targets. ‘’Our ambition to have a carbon-neutral ﬂeet by 2050 was a ‘moon-shot’ when we announced it in 2018,” said Søren Skou, CEO, A.P. Moller-Maersk, in February. “Today we see it as a challenging yet achievable target”.

a transition/replacement fuel is the low emission alternative to diesel, HVO or hydrotreated vegetable oil. This is already being widely used in trucks and in marine diesel engines and can reduce greenhouse emissions by as much as 90%. This is an example of a breakthrough product in the search for clean renewable fuels. It is produced by hydrotreatment of vegetable oils Ammonia, meanwhile, need only and/or animal fats, and the result is a vegetable oils and/or animal fats, and the result is a premium quality fuel with a chemical structure be cooled to -30⁰C, making it more premium quality fuel with a chemical almost identical to regular diesel and can therefore fully replace fossil diesel. It can also be used in practical than hydrogen or LNG structure almost identical to regular conventional diesel engines with no modifications. The UK Government, seeking to be completely in free terms ofcould storage. Wärtsilä dieselthe and therefore diesel by 2030, therefore meet this targetis by expanding use can of HVO, rather thanfully purelyreplace relying upon electrification of cars. the availability of suchdiesel. fuels is limited in the context developing engines for However, operating on fossil It can also beofused in global fuels demand. ammonia, as well as a possible retrofit conventional diesel engines with no So, the tank storage industry must adapt and invest for the future and seek out new storage contracts package for existing engines which modifications. The UK Government, for the storage of emerging and alternative fuels and embrace innovation, adapting the terminals would allow them flexibility. to burnThe it. terminal’s management seeking to be completely infrastructure to maximise teams should ensure they are at the diesel forefront obtaining e.g. any required licenses, permissions and consents required for thetherefore storage of meet Other of fuels, hydrogen, LNG free by 2030, could alternative fuels and equally ensure that employees are trained and competent and prepared for the and bioLNG are all actively this target byterminal expanding the use of handling of new and different products. Movingbeing from the traditional oil storage model, where there may be a limited of different products little inrather the waythan of product, to arelying multi- upon considered and number used increasingly as andHVO, purely product, frequent product change terminal, requires a different strategy and operating plan. The an alternative to conventional fossil electrification of cars. However, the terminal infrastructure also needs to be adapted to embrace the required flexibility to cope with fuels.products, For example P&O’s new cruise availability of such fuels means is limited in multiple with simultaneous tank, rail, pipeline and truck operations. This typically new capex in additional pipelines and pumps, with of automated control demand. and liner, theinvestments Iona is using LNG as its main the along context global fuels monitoring systems so that individual tanks can be filled and emptied with a wider variety of liquid fuel and shipsthat in energy the P&O ﬂeet products. It is other quite possible transition may lead to a surplus of tanks and terminals, so ‘survival the fittest’ will ed also to likely be on a major consideration to CEO’s their strategic plan must have of been modifi run a range So, the considering tank storage industry over the next decade and beyond. of fuels including LNG. adapt and invest for the future and What are the changes in demand that are likely to affect terminal capacity? The IEA forecast below seek out new storage contracts for the puts this into perspective. Another product gaining popularity as storage of emerging and alternative Changes in primary byregion, fuel and region, 2019-2030. Changes in primary energyenergy demanddemand by fuel and 2019-2030 Source: IEA

fuels and embrace innovation, adapting the terminals infrastructure to maximise flexibility. The terminal’s management teams should ensure they are at the forefront of obtaining any required licenses, permissions and consents required for the storage of alternative fuels and equally ensure that employees are trained and competent and prepared for the handling of new and different products. Moving from the traditional oil storage terminal model, where there may be a limited number of different products and little in the way of product, to a multi-product, frequent product change terminal, requires a different strategy and operating plan. The terminal infrastructure also needs to be adapted to embrace the required flexibility to cope with multiple products, with simultaneous tank, rail, pipeline and truck operations. This typically means new capex investments in additional pipelines and pumps, along with automated control and monitoring systems so that individual tanks can be filled and emptied with a wider variety of liquid products. It is quite possible that energy transition may lead to a surplus of tanks and terminals, so ‘survival of the fittest’ will also likely be a major consideration to CEO’s considering their strategic plan over the next decade and beyond. What are the changes in demand that are likely to affect terminal capacity? The IEA forecast on the left hand side puts this into perspective.

Source IEA

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The biggest reduction in demand is likely to come from OECD countries and it will take longer for the lesser developed world to catch up. The principal shift out of hydrocarbons will be towards electricity. The development of wind and solar is gathering pace and costs have been reduced dramatically from the earlier forecasts. The key determinant of the speed of change will be the price placed on carbon emissions. A simplistic analogy is the price we pay for clearing our garbage should be reflected in the price of clearing the atmospheric garbage of carbon oxides. At present the price for emitting carbon is anywhere between $25 and $55 per tonne of carbon. This is too low to pay for the investment needed for carbon reduction unless a subsidy is paid to corporate investors. Given that the electricity produced by wind and solar is intermittent, one of the major drives in R & D is how to store power effectively without creating massive demands on resources, such as mining for lithium and cobalt. The lithium-ion battery will perform a storage function in the near term but it is an unsustainable model long term. A better method needs to be found and suggestions are currently working towards ammonia or hydrogen as a store of electricity. Both of these, if they prove effective could be outlets for storage installations. The advantage that storage terminals have, be they coastal or inland, is that they are typically permitted to store toxic materials and it should be relatively easy to extend these permits to ammonia and other cooled liquids.

There are already in construction turbines based on stored liquid air. These plants can generate up to 50 MW of electricity and sustain it for a suﬃcient number of hours to act as ‘batteries’ for the grid. We foresee that these plants could be built on storage terminals in place of tanks so long as there is a relatively easy connection to the grid. The majority of terminals have grid connections. Returning to the carbon price issue. We see this as the critical driver of all systems for decarbonising the atmosphere and we fervently hope that COP26 comes up with a global pricing system that gives a financial incentive to all the above mitigating methods. As we argue above, terminals need to get their planning process underway soon if they are to survive and we recommend that a net-zero-planning system be put in place to examine and explore the options so that funding can be gained from the major banks and financial institutions that currently are reluctant to finance anything that does not meet their ESG criteria. Amongst the possible solutions we also list LPG, particularly in countries where cooking is done on charcoal (a tree destroying fuel). The one outlet from hydrocarbons is almost certain to be the chemical industry. Chemical storage requires diﬀerent handling criteria and these need to be explored. As political changes occur it is going to take a regular monitoring of developments if terminals are not to be left behind.

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Authors Martyn Lyons and Charles Daly Charles Daly is Chairman and founder of Channoil Energy and has a wealth of experience in the downstream oil industry through many years in the industry. Martyn Lyons has 33 years’ experience in the tank storage industry and is a highly experienced Chairman, CEO, Main Board Level Executive and NonExecutive Director. Channoil Energy is a specialist consultant in the energy field and net zero solutions. For more information, visit www. channoil.com

News

Dantec is a world leader in composite hose technology Dantec is a world leader in composite hose technology, exporting products from its UK factory to over 60 countries worldwide. The company is committed to innovation, minimizing environmental damage and above all else, safety and eﬃciency. Dantec’s history Starting out as a gasket cutting business in 1969, Dantec has served the requirements of the largest petrochemical complex in the UK, at Ellesmere Port - 10 miles from the Dantec original site. This eventually led to diversification into other industrial products, including hoses. An ever-increasing demand from existing customers, for a reliable supplier composite hose, led to Dantec commencing manufacture. Continuous innovation and development have placed Dantec as the world leader in composite hose technology. To produce the best quality and comprehensive range of composite hose, the company manufactures hoses from the highest specification materials to the most stringent procedures in its purpose build factory in the North of England. Today’s portfolio Product hoses form an integral part of transfer operations. The choice of hose must be based on assessments that cover appropriate use, safety and operational eﬃciency. Due to the uniquely stronger materials in Dantec hoses, the company can manufacture

with less layers of material, making the hose lighter and more ﬂexible than other alternatives. The stronger materials also provide a higher safety factor/burst pressure. Each Dantec product meets all major national and international standards, including: • IMO, IBC and IGC codes • Requirement of the United States coastguard (for Marine hoses) • Type approvals from all major bodies including DNV GL, Lloyds Approval and the Korean Register • ISO9001:2018 Dantec was actually the first composite hose manufacturer to achieve ISO9000 status and has been registered with the British standards institute since 1988. Products for petrochemicals and oil Within the brand’s portfolio are composite hoses created specifically for the transfer of general chemicals as well as Oil, Hydrocarbons and Biofuels, amongst others. For example, The Dantec Danoil 9 range is a polyamide (nylon) lined hose used for products with high aromatic content and biofuels. The inner helix is available in 316 stainless steel, galvanised steel and aluminium, with the outer wire available in 316 stainless steel and galvanised steel. To learn more about Dantec and its composite hoses, please visit www. dantec.com

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SUPPORTING THE NEEDS OF THE E VO LV I N G S U P P LY CHAIN

Innovation and agility are at the heart of the UM Terminals business strategy.

Bryan Davies. Managing Director, UM Terminals

nnovation and agility are at the heart of the UM Terminals business strategy. They are vital if the company is to support and serve the needs of its customers in the face of an everevolving supply chain. This was the theme Bryan Davies, UM Terminals’ Managing Director, addressed in a talk at the recent European Bulk Liquid Storage Summit in Cartagena.

UM Terminals deliberately maintains a broad portfolio of around 40 products that it stores including vegetable oils, industrial, food and feed, chemical, fertiliser, fuels, biofuels and base oils. It achieves this operating out of 8 terminals, strategically located across the UK, with a current capacity of over 300,000 cubic metres of bulk liquid storage, but with an ambition to increase this to around 400,000 cubic metres. This more rounded portfolio means that the business is able to adapt quickly if demand is higher or lower in a particular sector and also plan strategically for the expected increasing demand to store products,

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such as green hydrogen, that will play an important part in the UK Government’s Road to Zero strategy. Bryan said: “While there is an irreversible move towards reducing the world’s dependency on fossil fuels, there remains uncertainty about future product requirements, although there are lots of conversations at the moment about green energy and the role it will play. This uncertainty means that companies like ours need to be agile and ready to meet the needs of our customers to store new, more sustainable fuels. We have a track record of adapting and updating the services we are able to provide and this is no diﬀerent as we move towards products that oﬀer greater sustainability. Once a customer has a product they wish to take to market, it is our job to be ready to support them. While our business is diverse in the range of products we store for our customers, we keep a close watch on market trends so that we are positioned to be a leader in the field of green energy bulk liquid storage.” Bryan said that companies were also looking at various ways to improve their carbon footprint, including strategically storing closer to their end customer. He said: “Supply chains are looking a lot more closely at their last mile delivery, reducing road miles and storing nearer to their customers. It makes sense commercially, operationally and environmentally.” Just over a year ago, UM Terminals launched a strategic growth plan,

consisting of three core pillars. The first concerns maximising its existing UK capability both in terms of current assets and, where appropriate, expanding existing terminals. The second pillar involves optimising the assets of the wider UM Group and its network of facilities in Europe and other parts of the world storing molasses but which could be used to store other products. The third pillar concerns looking for appropriate acquisition targets that would complement the current UM Terminals oﬀer. Bryan said: “We are already seeing the results of the growth plan we put in place, but the plan is ultimately driven by the way we approach new and existing customer relationships. We don’t just talk about being agile and innovative – it is part of the UM Terminals DNA. This extends to investing to meet customer needs if the business case justifies it. This could be part of the continual investment to ensure our existing facilities are bestin-class or investing to meet a new storage requirement. Ultimately, we are investing in long-term customer relationships.” A recent example of responding directly to a customer’s request was UM Terminals becoming Halal and Kosher certified at its Regent Road terminal in Liverpool. Led by Jo Winning, UM Terminals’ Quality Planning & Performance Manager, the company has also successfully completed the accreditation process

for FSSC 22000, the certification scheme for Food Safety Management Systems, for Regent Road and its Gladstone Dock sites. Ensuring the best possible customer service was also integral to the development of the Client Central Services team, providing customers with a wealth of important information including realtime data to make critical business decisions. Based out of Regent Road and headed by Client Central Services Manager Lynn McCoy, the service integrates all weighbridge and administration from across UM’s 8 terminals. A dedicated portal gives clients instant access to essential weighbridge documentation and current stock levels for each tank. They also have a secure log-in and can access their data 24/7, 365 days a year via a desktop, tablet or mobile device. UM Terminals is part of the United Molasses Group, led by CEO Ben Macer, whose history dates back almost 100 years. UM’s founder, Michael KroyerKeilberg, was involved in bulk liquid storage even earlier than this – he constructed his first tank for the storage of bulk molasses in 1911 at Victoria Dock in Hull. The Group’s other services include the international trading of molasses, the sales and distribution of molasses and the procurement and marketing of vegetable oils for use in the animal feed industry. For more information, visit www. umterminals.co.uk

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PX G R O U P I S LOOKING TO THE FUTURE: IN C O N V E R S AT I O N W I T H J AY B R O O K S

Jay Brooks, Site Director Industrial Parks, discusses px Group’s objectives and ambitions for the future.

Jay Brooks, Site Director Industrial Parks, px Group

x Group is an awardwinning, fully i n t e g r a t e d infrastructure solutions business delivering innovative management services for high hazard and highly regulated environments. px Group manages, operates, and maintains some of the UK’s largest industrial facilities, and owns the world-renowned Saltend Chemicals Park at the heart of the UK’s Energy Estuary.

px Group has been recently named as one of Britain’s fastest-growing companies. What are px Group’s objectives and ambitions for the future? We’ve been growing steadily for a few years now, and that’s down to several factors, one of which is our reputation for eﬃciently, reliably, and safely operating critical UK national infrastructure. This reputation is borne out year after year. Another factor is creating and maintaining honest and transparent relationships with our clients, which has allowed us to develop long-standing partnerships – we’ve been operating some assets on

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behalf of clients for decades! What we take the most pride in, though, is the emphasis on treating our people properly. px Group’s people-first mantra is implemented from the very top of the company, and it’s this approach that has allowed us to attract, trust and retain some brilliant people. So, when the pandemic hit, we didn’t have to make wide-reaching changes to the way we operate – we knew everyone could get on with the essential job we do! It has undoubtedly been a transformational year for px Group. Earlier in 2021, we were acquired by Aksiom Services Group, a partnership between US-based Ara Partners and the Aksiom Group. We’ve been taking stock since then, but we haven’t stood still – we’re looking at new projects and new markets all the time. One of the things we’re concentrating on is renewable energy and impacting the energy transition. We own the Saltend Chemicals Park, which is central to the Zero Carbon Humber (ZCH) and East Coast Cluster (ECC) decarbonisation plans recently awarded Track One funding by the UK Government to accelerate emissions reductions in the UK. We see Hydrogen (also a crucial part of ZCH ECC) and renewable wind energy as potential major growth areas for us in the coming years. What is your outlook on the global bulk liquid storage market? In the

context of the energy transition, how can the bulk storage and energy infrastructure sector ensure that the opportunities of tomorrow can be seized? There is an increasing demand for storage capacity. To meet this demand, the industry and governments should work closely to minimise any barriers to this growth. Looking ahead, we may start to see a shift away from the storage of traditional hydrocarbon-based fuels to other liquid energy sources. This will result in a broader range of substances being stored, providing the essential components for future blended fuels. In addition, there is likely to be a focus on the storage and distribution of hydrogen in the longer term, with recent reports estimating that this could meet 24% of energy world demand by 2050. The UK’s bulk liquid storage sector supports growth and prosperity by moving, storing, and blending many modern products, feeds, and chemicals integral to our daily lives. However, the transition will be crucial. Reducing emissions will require partnership, significant investment, and well-coordinated eﬀorts by all parties involved, including businesses, supply chains, consumers, and other stakeholders. As essential partners in the energy transition, we are committed to the innovation and evolution necessary to succeed.

px Group has achieved a flurry of awards in the internationally renowned Royal Society for the Prevention of Accidents (RoSPA) Health and Safety Awards for its Health & Safety performance. It is, of course, a cliché for any company involved in energy to say that safety is their number one priority – we understand that! However, you must prove it repeatedly. Our experience and knowledge of operating Top Tier COMAH sites are applied to every other asset we operate in the UK. We are naturally delighted that RoSPA has consistently recognised our efforts with several awards over the years. This year, for example, we received a Patron’s Award for our health and safety efforts at Teesside Gas Processing Plant – which goes to those that have implemented and overseen very high levels of health and safety management for 25 years consecutively. I think health and safety performance and implementation are about culture and encouraging people on-site to take ownership and responsibility of their operations and remits – no matter how big or small. One of the things we benefit from at px Group is that, across all our operations, we’re dynamic enough to identify and fix any issues quickly, which can sometimes take larger organisations longer to do. That’s, of course, not to say that we don’t have strict quality controls and processes,

but we’re able to identify and speak to the right people at the drop of a hat if something needs seeing to. Good health and safety can sometimes be taken as a given – and of course, in our industry, it really should be – but it’s always worth doing something that little bit different to keep everyone on their toes! So, for me, I’ll adjust our meeting agendas to kick off with a health and safety update, which serves as a useful reminder to everyone that safety takes precedence over everything else. px Group is an integral part of the H2H Saltend project, part of the Zero Carbon Humber partnership, which is building a world-leading clean hydrogen plant with Carbon Capture and Storage (CCS). Tell us more about this project. We are incredibly excited about the Zero Carbon Humber (ZCH) development, which is part of the wider East Coast Cluster decarbonisation efforts. ZCH will be anchored by H2H Saltend, which will see a large-scale clean hydrogen plant developed and constructed at Saltend Chemicals Park. The plant will produce hydrogen from natural gas, with the emissions generated from that process captured, and then transported for storage (more generally known as Capture and Storage, or CCS) in the North Sea, resulting in a significant reduction in harmful emissions released back into the atmosphere.

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All the partners on site at Saltend will be able to switch to hydrogenfuelled energy, and emissions going into Saltend’s gas-fired plant will be reduced dramatically. Ultimately, we’ll be cutting emissions by 900,000 tonnes of CO2 per year. The Humber and the Northeast more generally has been a hub for energy for so long – we’re really delighted that the region will continue to play a huge role in the next phase of energy in this country. The ZCH developments bring in some huge names in the industry that are all working together – and it’s only by working together on a scale such as this can the country reach Net Zero and really have an impact on climate change.

The Humber, and the Northeast more generally, has been a hub for energy for so long – we’re really delighted that the region will continue to play a huge role in the next phase of energy in this country.

We were thrilled to hear in late October that the ECC was award Track One funding from the UK Government, which will allow all involved to power ahead and now make good on plans to decarbonise the Northeast. It’s a truly interesting time to be involved in energy and industry in the UK, and we encourage everyone to learn about the eﬀorts to cut emissions – not just through ZCH developments (HyNet, another intriguing project, in the Northwest was also awarded Track One funding) – through all the other research and innovation that is taking place right across the country.

px Group is an integral part of the H2H Saltend project, part of the Zero Carbon Humber partnership.

For more information, visit www. pxlimited.com

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Tank Storage Conference & Exhibition 2022 Presented by TSA

The UK’s leading event for the bulk liquid storage sector

22 September 2022 Coventry Building Society Arena, Coventry, UK Discover the event

www.tankstorage.org.uk/conference-exhibition

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Tank Storage Association - The Voice of the Bulk Storage and Energy Infrastructure Sector

CHECKERS CHECKING C H E C K E R S - C R E AT I N G CONTINUOUS COMPETENCE

ere in the bulk liquid and gas storage sector, there is an obvious need for competence. The simple fact is: more competent workers are more eﬃcient and more eﬀective.

In the bulk liquid and gas storage sector, there is an obvious need for competence. The simple fact is: more competent workers are more eﬃcient and more eﬀective.

For more information, visit www. reynoldstraining.com

This is why we, at Reynolds Training Services, believe it is crucial to not only train people, embedding knowledge and developing skills, but to also assess their competency onsite as an ongoing process. This circular process of developing then maintaining and updating (as needed) competence is based on a bedrock of appropriate formal qualifications. And that’s a process that begins with Ofqual. Ofqual and the awarding bodies

The Oﬃce of Qualifications and Examinations Regulation (Ofqual) is the oﬃcial regulatory body for qualifications and exams in England. They are the authority which manages and accredits exam boards and awarding bodies under the direction of the UK government. One of their key concerns is standardisation so, whether you

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get a qualification from City and Guilds or GQA (for example) it will have been subjected to the same scrutiny and quality control. It’s worth mentioning that the awarding body GQA has recently taken over all the duties of PAA\VQ-SET, as of April 2021, which concentrates on awarding qualifications around Industrial Logistics, involving supply chains, warehousing and transportation. This is reﬂected in our delivery of a range of GQA courses, covering subjects as diverse as our Level 2 Diploma in Jetty Operations through to our Level 5 Diploma in the Practice of Process Safety Management. Qualifications of this nature are the best way for a person to embark on a career in our sector, or to steer their existing career down the path they want it to take. Developing career pathways in this way is at the very core of the TSA’s ambitions, and it is what we, at Reynolds Training, are also striving to do. The TSA and Developing Career Pathways

The TSA serves as a fundamental link between equipment and service providers and the wider industry, providing an essential communication exchange in technical, safety and competency topics. In our experience, one of the key contributions the TSA makes is in its ability to see where an industry in transition is going now and, importantly, needs to go in the future. The TSA helps in steering

industry and learning providers towards building a better, more responsive, more competent future. This helps build the foundations for career pathways that are in the longterm interest of both our workers at every level and of our industry as a whole. This is especially true given that we, in the energy industries, are in transition - as we travel towards a carbon zero future. While the politicians may argue about exactly when this will happen - there is no hiding from the fact that it will, eventually, happen and we, as a sector, have to be ready for that. There is already a drive towards diﬀerent energy sources, be it ammonia for ships or hydrogen fuel cells for cars and buses, to name but two. This will change our sector in terms of processing, storage and transportation. We have to be ready for that because each new energy source will bring with it new processes, new technology and new challenges - which will require competent people. And, unlike the energy that people are used to using, competence isn’t something that we can turn on at the ﬂick of a switch - it is something that develops through training and experience and continuous vigilance. Our mission is to ensure that the people working in our sector now, and entering our sector in the near future, are capable of continuously updating their competence, of learning these new processes and new technologies so that they can come safely and

successfully on-stream. We always instill in our learners the importance of this continuous development. Learning to learn is a key skill in our sector, as it continuously evolves and transitions. Checkers Checking Checkers

Qualifications have to evolve accordingly. This is why we, at Reynolds Training, are continuously developing new qualifications - as we see a need - in conjunction with industry bodies such as Cogent Skills and the TSA. We then submit that proposal to our awarding body, be it IOSH, NEBOSH, QUALSAFE or GQA, who will then work with Ofqual to ensure that the proposal meets the required standard. If it doesn’t, we begin a process of refinement. In this way, our qualifications directly plug-in to the energy policies and strategies of central government. To ensure that our courses evolve as needed - and that our centre maintains appropriate standards our learners’ work is assessed by our Assessors who, in-turn, are assessed by the Internal Quality Assurer (IQA). Then, the IQA’s work is assessed by the External Quality Assurer (EQA) - who is our independent link to the awarding body. Having that external oversight for our centre is, of course, a requirement of Ofqual, to ensure continuous quality and relevance. This ongoing circle of checkers checking checkers is

essential to maintaining continuous development and continuous competence. It is also the keystone to quality assurance - in that the sector needs to be reassured that, when an Assessor has signed oﬀ a worker as competent, that worker can be trusted to be exactly that. And, it is important that this is as true for learners who are taught at Reynolds Training’s centre as it is for those who are taught in our industry-based satellite centres. We manage their Competence Assurance Programmes for them, we train their Assessors and their IQAs - or supply our own IQAs and then co-ordinate and check with the External Quality Assurer. This process ensures that satellite centres are abiding by the same principles of Assessment Standards as we do as a Learning Centre. This allows employers to have Assessors on-site, without them having to go through the process of registering as a Learning Centre. They are then bound by our quality assurance and competence. This ensures that standards are maintained and that no learner receives a lesser quality of training, no matter where they study. In the next issue of TSA Insight, we’ll expand on this subject and look at the wider RQF (Regulated Qualifications Framework) and the role of bodies like Cogent Skills, TSA, UKPIA and IChemE in maintaining that unbreakable link between training and industry, to ensure we all enjoy a safe and secure future.

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18 STORAGE TERMINALS

ALL CHANGE PLEASE STRATEGY • VOPAK WILL BE LOOKING TO CONTINUE ON ITS STRATEGIC PLAN UNDER NEW LEADERSHIP NEXT YEAR, AS CURRENT CEO EELCO HOEKSTRA IS STEPPING DOWN ROYAL VOPAK, WHICH operates the world’s largest network of independent bulk liquids terminals, is entering a significant period of change as it continues to work through its strategic plan with a focus on allocating investment towards industrial, chemicals, gas and new energies infrastructure. Another big change coming soon is a new CEO, after Eelco Hoekstra, who has been chairman of the executive board and CEO for 11 years, announced he is to step down at the end of this year to become a member of the executive board of the major Dutch trading company SHV. Vopak’s supervisory board accepted the resignation, saying it “respects his decision and congratulates him with his new role”. The supervisory board has already announced that Dick Richelle will succeed Hoekstra; Richelle joined Vopak in 1995 as a management trainee and has held a variety of management

roles in Latin America and Europe, most recently heading the company’s global commercial and business development activities. “We are very grateful for Eelco’s long-term contribution to Royal Vopak during his 20-year career at the company and most specifically his last 11 years as CEO,” says Ben Noteboom, chairman of the supervisory board. “Under Eelco’s leadership, the foundation of the company has strengthened, guiding Royal Vopak to leading global positions. We all wish Eelco the very best for his future. Dick has shown strong leadership and people skills in his current and former roles. His extensive experience in nearly all geographies in a variety of functions at Royal Vopak will enable him to be an effective CEO leading Royal Vopak in the coming periods.” PURSUE THE PLAN Meanwhile, as part of its new focus on specific activities, Vopak has announced a strategic review of its terminals in Australia and says it is “investigating options” that may include continued operations or divestment. No further details are being disclosed at present but updates will be announced once decisions are taken. Vopak notes that its current strategy means that any new investment in oil infrastructure is likely to be reduced and be targeted on existing hub facilities. Vopak has two terminals in Australia, one in Sydney and one in Darwin, both operating as petroleum import and distribution facilities.

 DICK RICHELLE IS TAKING OVER AS CEO OF ROYAL VOPAK AT A TIME OF SIGNIFICANT CHANGE IN THE SECTOR AND WILL HAVE SOME CHALLENGING DECISIONS TO MAKE

HCB MONTHLY | DECEMBER 2021

Also reflecting Vopak’s strategy to invest in industrial terminals, it has now opened its new terminal on the US Gulf Coast in Corpus Christi, Texas. The 144,000-m3 facility has been built to serve the world-scale Gulf Coast Growth Ventures (GCGV) polymer plant in San Patricio County, a joint venture between ExxonMobil and Sabic, under a 20-year commercial agreement and is wholly owned by Vopak. The terminal has pipeline links to the new petrochemical plant. “We are very excited to have successfully and timely delivered this new industrial terminal to support GCGV in the US This new terminal fits well into our growth strategy for industrial terminals,” says Hoekstra. “We are proud of our expertise and long track record of storing vital products. We have high standards on safety and environmental care and we are looking forward to being part of the Coastal Bend community.” THIRD QUARTER ACTIVITY Among other activity during the third quarter, Vopak added 57,000 m3 of new tankage at the Likeroever site in Antwerp and the Botlek terminal in Rotterdam, and started ammonia operations at the Vopak Moda Houston joint venture terminal. Vopak also took a strategic decision to discontinue its active participation in the German LNG project, booking an exceptional loss of €11.1m, though it says it remains optimistic in other LNG project in which it is involved. Vopak achieved revenues of €309.5m in the third quarter, a 4.2 per cent improvement over last year, although net profit (including exceptional items) dropped from €79.5m to €71.6m. Tank occupancy was down, from 92 per cent to 88 per cent, for the period as a whole. The company says it now expects its investment in growth projects this year to come in at around €275m, below the forecast €300m to €350m range, assuming that the planned Aegis Vopak transaction in India closes early next year. On the other hand, capital investment in IT systems this year is expected to be at the high end of the indicated range, at close to €50m, and Vopak says that some 60 per cent of its joint ventures have committed to the new in-house terminal management system, which is ahead of plan. www.vopak.com

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NEWS BULLETIN

STORAGE TERMINALS

VTTI BUYS IN FUJAIRAH

VTTI has acquired IL&FS Prime Terminals (IPTF), which operates a 333,500-m3 terminal in the heart of Fujairah; VTTI will take a 90 per cent holding, with the Fujairah government retaining its 10 per cent share. The holding has been acquired from India-based investment group IL&FS, which says that there is room to expand the terminal to a capacity of some 600,000 m3. “Fujairah is one of the four key oil hubs in the world,” VTTI notes. “Its long-term strategic importance is underpinned by large-scale refining and advantaged crude economics. The acquisition of this high quality facility puts FTL in a unique position in handling all petroleum products with the most flexible configuration, while increasing operational synergies within its existing terminal in the Port of Fujairah.” VTTI currently has a 1.9m-m3 terminal handling crude oil and refined products, along with an associated refinery and processing units, in Fujairah. www.vtti.com

HCB MONTHLY | DECEMBER 2021

ODFJELL UPS THROUGHPUT

Odfjell Terminals achieved third quarter revenues of $17.9m, slightly behind the prior quarter but up on the $16.3m recorded in third quarter 2020. Odfjell’s terminals experienced strong growth in throughput, with the third quarter ending with the highest levels seen since first quarter 2019 following continued recovery in business levels in Houston and high activity at the Noord Natie joint venture terminal in Antwerp, after the construction of additional tankage. Another 35,000 m3 of stainless steel capacity is due onstream in Antwerp during 2022. The terminals in the US noted a strong quarter, with high demand for storage capacity and increased activity levels. “The US market is still experiencing disruption in production and low inventory levels resulting in reduced exports and a focus on meeting local demand. With a build-up of inventory levels, we expect to see a continued recovery in export activity,” Odfjell says. The expansion of the Houston site has been delayed following weather-related interruptions; subject to a final investment decision, the new tankpit is now scheduled for completion in fourth quarter 2023. Odfjell’s Ulsan terminal in South Korea

(above) experienced another weak quarter, caused by a combination of lower regional chemical production and weaker demand for petrochemicals and base oils caused by the ongoing Covid-19 pandemic. The region also suffered from port congestion and bottlenecks in several key ports in China, Odfjell notes. www.odfjell.com STOLT’S CEYHAN PLAN

Stolthaven Terminals is planning to develop a new greenfield terminal in Ceyhan, Turkey in a joint venture with Rönesans Holding, which is behind the Ceyhan Petrochemical Industrial Zone. In the first phase, the terminal will provide services to Ceyhan Polipropilen Uretim, the first project being developed in the Zone, which plans to produce 450,000 tonnes of propylene per year by propane dehydrogenation. Plans for the terminal include the construction of additional storage capacity, which will likely be added during the first phase of the project, to serve customers who have expressed an interest in the import and storage of LPG. A final investment decision is expected before the end of this year, subject to final internal and external approvals.

STORAGE TERMINALS 21

“The terminal will initially focus on the safe and efficient handling and storage of industrial gases, but early market studies also indicate that there is potential to develop chemical storage capacity to service the eastern region of Turkey, which is currently serviced mainly by trucks from the west of the country,” says Guy Bessant, president of Stolthaven Terminals. “The investment in Turkey, a country with a growing economy and strong demand for chemicals, would be complementary to our existing global network and increase the reach of the supply chain solutions that we are able to offer our customers.” www.stolt-nielsen.com KOOLE TO HANDLE AMMONIA

Koole Terminals and Horisont Energi have signed an MOU to collaborate on the development of a terminal and storage facility in Rotterdam to handle ammonia shipped from Norway. The agreement will also cover technical and commercial conceptual models for storage of ammonia products, services solutions and technologies for further distribution, to meet forecast demand in north-west Europe. Horisont Energi recently announced a cooperation agreement with Equinor and Vår Energi, the two largest offshore oil and gas producers in the Barents Sea region, on the joint development of the Barents Blue project, Europe’s first large-scale production facility for blue ammonia, in Hammerfest in northern Norway. “I’m excited to announce this agreement,” says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi. “As Horisont Energi and our partners work towards developing Europe’s first world-scale clean ammonia project, it is essential to establish relationships with key storage, handling and transport partners in the region, to ensure our clean ammonia can reach all potential clients.” “We are eager to work with Horisont Energi to materialise their European distribution hub

for blue ammonia,” adds John Kraakman, CEO of Koole Terminals. “We consider ammonia as one of the important future liquid energy carriers, and as such this project fits very well with Koole’s sustainable energy strategy.” koole.com PACIFIC TERMINAL SWITCH

TransMontaigne Partners has acquired SeaPort Financing, which, like TransMontaigne, is owned by funds managed by ArcLight Energy Partners. As part of the deal, TransMontaigne has acquired the SeaPort Sound Terminal in Tacoma, Washington, a 51 per cent interest in SeaPort Mistream Partners, which owns liquid products terminals in Seattle and Portland, Oregon, and a 30 per cent interest in a local pipeline. “This transaction enables us to expand our geographic reach to the US Pacific Northwest through critical and highly contracted infrastructure assets, while also accelerating TransMontaigne’s progression as a leader in the growing renewable fuels logistics space,” says Fred Boutin, CEO of TransMontaigne. “This group of high‐quality assets position TransMontaigne as the only independent terminal operator with operations in every major market within the Pacific Northwest,”

Boutin adds. “Notably, the SeaPort Sound Terminal owns the only independent end‐ market unit train facility in the Puget Sound and has a critical role in the growing renewables supply needs of the region.” www.arclight.com www.transmontaignepartners.com BROTHERS IN BREMEN

UTG Unabhängige Tanklogistik, independent operator of tank storage terminals in northern Germany, has been sold to DS EnergieHolding, a wholly owned subsidiary of Diersch & Schröder (DS), which is also headquartered in Bremen. Subject to regulatory approvals, the transaction is expected to close next month. UTG’s managing partner Jens Janssen will step down on completion of the sale, with leadership taken up by Ian Petri, managing director of DS unit Weser-Petrol Seaport Tank Farm. UTG will continue to operate as an independent storage company, with a specialisation in vessel bunkering and slop reception. Following the acquisition, DS will expand its portfolio to more than 730,000 m3 of tank space at ten locations in northern Germany. utg-tanklogistik.de www.ds-bremen.com

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LISTEN UP! CONFERENCE REPORT • ACCESS TO FINANCE WILL BE CRUCIAL FOR THE TRANSITION TO NET ZERO, EPCA’S 2021 ANNUAL MEETING HEARD. LEADERSHIP WILL BE VITAL TO SEE THE PROCESS THROUGH THE EUROPEAN PETROCHEMICAL Association’s (EPCA) 55th Annual Meeting, held this past October in virtual form, took the theme of ‘Future Reimagined’, taking advantage of the pause occasioned by the Covid pandemic to think about how the industry will look in a future after the energy transition, when decarbonisation and the circular economy will be the norm. The first part of HCB’s report on the meeting (HCB November 2021, page 7) highlighted the main learnings to be taken from the discussions, featuring executives from the highest levels in the European (and broader) petrochemical manufacturing sector, their logistics service

 ARKEMA IS FUNDING ITS NEW SINGAPORE BIO-PLANT THROUGH A GREEN BOND

HCB MONTHLY | DECEMBER 2021

partners and, for the first time at the EPCA event, those with experience in the downstream industries. Those learnings included the firm belief that there is no longer any question about the need to change manufacturing practices, to reduce carbon emissions and to minimise the environmental footprint of the wider chemical industry. The question now is: how is that future to be realised? There are many pathways and not all will be suitable for each player in the value chain. There will be inevitable mistakes along the way but there is no going back now. Fundamentally, though, the industry needs to be able to invest in the new systems and processes that will be needed, at the same time as remaining competitive. There is, as many speakers stressed, no value in legislating the sector out of business,

especially as it is the petrochemical industry that will be the source of many products that will be vital to reducing the carbon intensity of other industrial, commercial and domestic activities. Who will pay for it all, especially at a time when the petrochemical industry is targeting much of its investment in the growth markets in Asia? WHO’S GOT THE MONEY? There are ways to tap into investors with the appetite for sustainable projects, as MarieJosé Donsion, CFO of Arkema explained in a panel session on ‘Finance Reimagined’. In October 2020 Arkema successfully placed its first ever ‘Green Bond’, raising €300m to fund its new bio-based Singapore plant. The issue was more than ten times oversubscribed, investors being keen to improve the sustainability of their activities in just the same way as petrochemical manufacturers. “Such issues are becoming increasingly important to investors,” Donsion noted. The aim of the Green Bond was to create a link between the company’s corporate strategy and its financial strategy, Donsion explained. But achieving that link took effort. “Internally, it requires more work, with additional reporting and a different framework,” she added. “We have to be able to track our sustainability performance,

TANKS & LOGISTICS 23

since the return on the bond is linked.” And that means independent verification of environmental performance. There are now a lot of agencies claiming to be able to track performance against environmental and social governance (ESG) metrics. That is a brand new service and it is still bedding in but Donsion noted that some of them are becoming more sophisticated, asking for more information to be able to provide reliable audits. But that is good for the company, she said: the organisation is required to focus on the substance of what it is doing in the realm of sustainability. Prof Dr Andreas Barckow, chair of the International Accounting Standards Board (IASB), agreed, saying that there are more than 800 initiatives in the market that claim to be setting standards and giving ratings for sustainability performance. The aim now must be to get to a single standard, along the lines of those provided by the International Financial Reporting Standards (IFRS) Foundation and the Financial Accounting Standards Board’s Generally Accepted

 THE PORT OF ANTWERP IS TAKING THE INITIATIVE IN FOSTERING A CULTURE OF SUSTAINABILITY ACROSS OPERATIONS IN THE PORT AREA, INCLUDING THE PROVISION OF SHORESIDE ELECTRIC POWER

Accounting Principles (GAAP). Perhaps, Dr Barckow said, there is a need for an international body like IASB – indeed, perhaps this is something IASB should take on. The IFRS Foundation, which manages the standards set by IASB, is the only example of a private organisation that has set a standard that has been accepted around the world, Dr Barckow said. It is now being asked to do the same thing for sustainability and ESG reporting. [In fact, subsequent to the EPCA Annual Meeting, the COP-26 conference in Glasgow agreed to establish an International Sustainability Standards Board (ISSB), which will set sustainability disclosure standards, similarly managed by the IFRS Foundation.] SAME SONG SHEET The development of common standards is becoming urgent, if investors are to have confidence in the sorts of bonds that Arkema has used. “The world is at different speeds on ESG,” Dr Barckow said. “Global convergence cannot wait for the last one to join the process.” IASB had already looked at the subject and identified the main issues that need to be addressed and reached out to those organisations that are already active in the field; most have agreed to come onboard, Dr Barckow added. ISSB will start with

climate reporting, where it is easy to get agreement as the scope is clearer; other ESG areas may prove more problematic, he noted. The panel session also heard from Yair Reem, a partner at Extantia Capital and also a member of EPCA’s Digital Advisory Body. “ESG reporting does not lead change,” he began. “A lot more companies are doing it – but emissions have continued.” From the point of view of an investor, Reem said his role is to help find those technologies that will make a change. Those technologies that will take the world to meet the 2030 emissions reduction targets are out there, he said, and they need to be deployed. The 2050 targets will be harder: the technology is either not there or is too expensive. Capital needs to select those startups that show promise in being able to address carbon problems. Access to capital will be vital to fund the transformation of the petrochemical sector but, as was repeated several times during the course of the EPCA Annual Meeting, effective and clear leadership will be required to steer corporations in the right direction. One of those leaders who will need to be up to the job is Jim Fitterling, chairman/CEO of Dow, who was given a slot to explain how he is personally reimagining the future. FIVE PILLARS OF WISDOM Fitterling identified five priorities that need to come into focus to secure a future for the industry. Firstly, industry must transition to net-zero and demonstrate to others that petrochemicals can help them do the same. “Unless we act now, we will have actions forced upon us,” he warned. “We need to show the world that we are the solution – and need to be transparent about it. We must accelerate across the board.” Dow has committed to be carbon-neutral by 2050, Fitterling stressed; but it will also need to continue on its growth strategy. This will spur the development of new products and processes. “Companies that make this transition will have a competitive advantage,” he predicted. Secondly, the sector must commit to a circular economy, especially when it comes to plastics. “Plastics are universal and will be

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crucial in the move to net-zero,” Fitterling said, adding that “global recycling has a long and expensive development future”. He felt that taxes on plastics are regressive so industry has to act first. “We need to be bold, both in our laboratories and with consumers and politicians,” he said. “This will not appear magically: it needs the workforce to fuel the journey.” Thirdly, people will be key. Organisations have to become more diverse and inclusive. “We need fresh thinkers,” Fitterling said. “We can’t succeed by doing things the same old way.” The Covid pandemic has increased the urgency of this change, he noted, saying that Dow is working with all stakeholders – in top-down and peer-to-peer relationships – to increase diversity. ESG participation goes a long way to fostering inclusion, Fitterling said. “Industry can take a leading position – indeed, it must!” Fitterling’s fourth priority follows on from the third: attracting new talent to the industry. That will involve more diversity to generate better ideas, that will lead to better sustainability and economic performance. “The pandemic has hampered the process, reducing the access to higher education for women and disadvantaged communities,” he added. Dow is stepping up to address this, committing to invest $10m to fund science, technology, engineering and mathematics (STEM) education in a number of traditionally Black colleges in the US. Finally, corporations need to engage with their stakeholders, more than ever. Industry needs their support to press ahead with change and, Fitterling said, “We have to remind the public what the petrochemical industry is doing.” Individual companies do not have all the answers so they must reach out and listen to others. “We must accelerate across the board on all fronts,” Fitterling concluded. “You may think you’re already doing a lot but we all need to do more – and do it faster. Time is not on our side!”

 DOW’S CEO, JIM FITTERLING (ABOVE) STRESSED THAT THE PETROCHEMICAL INDUSTRY MUST BE TRANSPARENT ABOUT WHAT IT IS DOING

HCB MONTHLY | DECEMBER 2021

LEADER OF THE PACK EPCA had, as it had promised, brought in some views from outside the mainstream of the petrochemical industry. One completely alternative view was provided by Emmanuel Faber who, in his time as CEO of French dairy food company Danone, had implemented some very far-reaching changes that demonstrated the level of leadership that will be needed to make the transformation happen. “Governance of the transition is crucial,” Faber began. But there may also be surprises: shareholders may already be onboard with the ideas proposed – and are probably ahead of the board on this! The food industry was, he said, as much a part of the problem as part of the solution and he had to work hard to reposition Danone as an environmental leader. “This took leadership and transparency,” he said. “We explained where the cost of

carbon was found in the P&L accounts.” He felt that he could not be defensive about this strategy: it might look bad at first but, over time, can demonstrate progress. But going alone on this journey is not viable: “we have to move together as an industry,” he advised. Faber picked up on Jim Fitterling’s comments, predicting that it will be very hard to get the right talent. Bright new people out there are not looking at the food or petrochemical sectors. Companies need to show good ESG performance if they want to be attractive. Another viewpoint was offered by Jacques Vandermeiren, CEO of the Port of Antwerp, who gave an illustration of how his organisation has also been transformed. “Ports were once passive landlords, not really connected with the world,” he began. “That seemed like a lost opportunity. Antwerp has

TANKS & LOGISTICS 25

the largest integrated chemical cluster – and lots of brains.” All of those companies operating within the port area were faced with societal challenges so the Port of Antwerp decided to act as a community builder and facilitator or, as Vandermeiren put it: “the glue that forges partnerships”. Once this approach was taken, it suddenly started making a difference. There are now lots of new sustainability projects underway in Antwerp, not only involving carbon capture and usage/storage (CCUS) and hydrogen. “We can show the world that this is feasible,” he added. Again, it is not possible to do this alone and, as others had remarked, northern Europe is short of renewable power. Antwerp is therefore talking with partners in places such as Oman, Egypt and Chile, where renewable electricity is more easily available, on the import of ‘green’

 EUROPE’S PETROCHEMICAL INDUSTRY NEEDS TO BE A FRONTRUNNER IN THE TRANSITION TO NET ZERO AND TO LET THE PUBLIC KNOW ABOUT ITS SUCCESSES

molecules to enable the energy transition. “We need to have the whole community ‘Fit for 55’,” Vandermeiren insisted. “And it will take a lot of human resources.” Wherever there is a challenge there is an opportunity too and Jean-Marc Durand, senior vice-president of refining and base chemicals at TotalEnergies, stressed that industry has to identify those opportunities and action them when it is appropriate. He cited the example of the planned transformation of TotalEnergies’ Grandpuits refinery, located south-east of Paris, from a traditional oil refinery to a zero-oil platform by 2024, to produce renewable diesel for the aviation industry and bio-plastics, and to carry out plastics recycling. The plan raised a lot of concerns among employees, the local community, contractors and others. It is vital, Durand said, to work with those people, not against them. Wrapping up the EPCA Annual Meeting, EPCA president Hartwig Michels, also president of BASF, said it had been an exciting three days. “I have been truly impressed by the progress and collaboration. Change is not only possible, it’s happening!”

Michels echoed others in saying that the transition cannot happen if the petrochemical industry in Europe cannot remain competitive on the global stage. That needs regulatory support – not in restricting industry’s response but in providing an open framework within which the transition can be managed, in whatever form it comes. Michels admitted that the industry has not always been its own best friend. “We need to create a new narrative,” he added. “The petrochemical industry is a frontrunner in the transition and we need to highlight that.” That will also help with the other fundamental problem facing the industry: attracting new talent. “The key to success is our people,” Michels concluded. “Industry has to be much more attractive to get and to keep people.” EPCA is hoping that its 56th Annual Meeting, which is scheduled to take place in the first week of October 2022, will be able to be an in-person event. Details of that meeting have not yet been finalised but will be announced on the EPCA website, epca.eu, in due course.

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26 TANKS & LOGISTICS

LET’S SWAP TANKS M&A • SUTTONS IS EXPANDING ITS GLOBAL TANK CONTAINER OPERATION, FOLLOWING AN AGREEMENT TO ACQUIRE VTG TANKTAINER’S INTERNATIONAL ACTIVITIES SUTTONS GROUP IS planning to propel itself into the top ten list of tank container operators, having signed an agreement with VTG to acquire the international activities of its subsidiary VTG Tanktainer. Suttons International will, through the deal, further increase its capability to serve its customers and extend its global reach. John Sutton, managing director of Suttons International and CEO of Suttons Group, says: “This acquisition will strengthen our geographical scale and give us a strong presence in new markets to better serve our customers, as well as provide greater opportunities for all staff. It will firmly establish our business amongst the top 10 global tank container operators and will be integrated into our existing, robust management structure.” Suttons will take control of the acquired business in the coming months. In the interim, VTG will continue to manage the tank containers, personnel and customer contracts. The deal includes the VTG joint venture with Mission Line in Brazil but not the COSCO VTG Tanktainer joint venture in China, although the three firms will be working to develop a closer partnership in that market. For VTG AG, the sale of its overseas activities will result in a strategic realignment of VTG Tanktainer business unit, with a focus on the global leasing of tank containers, flanked by integrated logistical services. “Our broad spectrum of fleet offerings, our extensive logistical network and the expertise embodied by VTG Tanktainer – especially in the transportation of chemicals and hazard goods – lay the ideal foundation for a global footprint built around focused logistical

HCB MONTHLY | DECEMBER 2021

services in Europe and Eurasia,” says Klaus Wessing, head of the VTG Tanktainer Business Unit. BACK TO BUSINESS Selling off its international tank container business also swings VTG’s core activities back towards leasing and the rail sector, where it has the largest privately owned fleet in Europe. “This sale refocuses and aligns our asset business with the strategy of the whole VTG Group,” says Oksana Janssen, COO Eurasia & Far East at VTG AG. “It also ensures the operating business meets our long-term profitability expectations both during and beyond the coronavirus crisis.” In particular, VTG has lately been expanding its rail activities in eastern Europe. In November it announced the establishment of a new company in Bulgaria, which is a key transit point for traffic heading for Greece,

Turkey and adjacent countries. VTG Rail Logistics Bulgaria is a full-service rail forwarder with an international reach and, integrated into VTG’s existing pan-European network, will allow the group to optimise and harmonise national and cross-border leasing and rail logistics activities in the country. “VTG Rail Logistics boasts exceptional expertise in rail transport and multimodal logistics, offering a full spectrum of services across the entire transport chain,” says Stelios Archontakis, managing director of VTG Rail Logistics Bulgaria and VTG Rail Logistics Hellas. “In the future, we will be able to offer reliable transport solutions and further develop the market in Bulgaria and the adjacent regions.” VTG Rail Russia, meanwhile, is making a significant addition to its fleet with 250 platforms for the transport of containers and tank containers from Transportnoye Mashinostroyeniye (Transmash). “We have found a credible strategic partner represented by Transmash, who guarantees development of our company even in the current volatile market conditions,” says Olga Yakimova, general director of VTG Rail Russia. “We decided to replenish our fleet with the railcars produced by Transmash due to their optimal ratio of price and quality. We hope to improve our cooperation both in Russia and on the international level.” www.suttonsgroup.com www.vtg.com

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THE FUTURE OF RAIL? SAFE WITH US. At Fort Vale, we’ve never felt at ease fulfilling ‘existing requirements’ - we prefer to think years ahead, so that when you buy our equipment, you know it will still be viable in 10 or even 20 years time. You could call it future-proofing - we just call it common sense. Available from 2022, the Fort Vale LPG Rail Product Range is made to the highest standards, ensuring quality, safety and security well into the 21st century. Manufactured in stainless steel (anything less increases the likelihood of corrosion) ensures longevity of equipment whilst minimising down time and M&R costs. The Y-valves have a lockable handle function for security and safety, whilst they are bellows operated and are rated to a MAWP of 30Bar - higher than any others on the market (see what we mean about future-proofing?). Safety, reliability and significantly increased flow rates - all with global support from Fort Vale. Not every company can do this. Not every company is Fort Vale. FORT VALE. FOLLOW THE LEADER.

Visit us at www.fortvale.com WWW.HCBLIVE.COM

NOW’S THE TIME CONFIDENCE • SUPPLY CHAIN STRESSES HAVE AFFECTED ALL INDUSTRIES BUT THOSE THAT SHIP DANGEROUS GOODS HAVE ADDITIONAL PROBLEMS TO DEAL WITH. CAN THEY COPE?

LABELMASTER’S ANNUAL DANGEROUS Goods Confidence Survey, carried out in collaboration with the International Air Transport Association (IATA) and HCB, regularly highlights the lack of confidence that dangerous goods professionals have that their managers and top-level executives understand exactly what it is they do, the hazards inherent in their companies’ activities and the need for funding and engagement. This year’s survey also showed that many fear that things will get worse, with an ongoing restriction in investment to fill the gaps in technology, training and data management. At this year’s DG Symposium, Labelmaster gathered a group of executives to gauge their views on the issues and to address the fears expressed in the survey. Opening the session, held this past 15 September, Rob Finn,

HCB MONTHLY | DECEMBER 2021

vice-president of marketing at Labelmaster, stressed that organisational awareness is the biggest hurdle to overcome in changing matters. “What we want is the day when your boss finally remembers what ‘DG’ stands for,” he said. Given the stresses on supply chains during the pandemic, logistics professionals have been presented with a wide range of new challenges. Is this the best time to try and shift the conversation on dangerous goods compliance? Perhaps counter-intuitively, it may well be, according to the panel. During the past two years, the supply chain has been in the news a lot and, said David Crist, president of Brother Mobile Solutions, that has made many people a lot more aware of logistics. It’s no longer just a matter of “where’s my stuff?” There have been daily, even hourly interruptions to supply chains,

meaning logistics providers have had to be a lot more nimble. The old supply chain models are no good any more, Crist said. They need to be more resilient and less linear. “This won’t be the last shock,” he predicted. “We have had to redefine the supply chain.” NEW MODEL ARMIES RJ Romano, global supply chain executive at BDO, agreed that there has been quite a change. Before the pandemic, supply chain management was all geared around cost reduction, including strict just-in-time inventory management. Now it’s also about service and resilience to risk or, has he put it: “How can we make the supply chain disruption-proof?” Customer expectations are rising constantly, Romano added. This brings another stress on the supply chain: can those expectations be met without adding cost? Companies are having to rethink how to spend their supply chain dollars. But in the current environment, cost is not always at the forefront of concerns. Bruce Samuelson, chief executive of Chemtrec, said we are currently at an inflexion point in supply chain design. Dangerous goods specialists need to look at how to navigate the change and reduce the level of stress in the system. “We need to change the narrative,”

TANKS & LOGISTICS 29

he said. “We need to become part of the solution rather than a cost centre.” Bill Schroeder, president of ProShip, agreed, pointing out that the changes in the supply chain have brought new partnerships and new models. Manufacturers are now shipping direct to consumers, which brings new players into the supply chain – some of them new to the details of dangerous goods compliance. Shippers are using local and regional less-than-truckload (LTL) or gig economy delivery companies to get stuff to the consumer, overcoming the last-mile problem. Whereas in the past the compliance function may have been left to UPS, FedEx or whoever, shippers are now using networks that don’t have their experience. “We need to pause and consider the ramifications of this change,” Schroeder said. MANAGE THE RISK Finn asked the panel how important dangerous goods management is for best-in-class companies. Crist said it is very important – but a rather small element.

 DANGEROUS GOODS PEOPLE HOPE THAT THE SPOTLIGHT PLACED ON SUPPLY CHAINS DURING THE PANDEMIC WILL SHIFT THE CONVERSATION AWAY FROM COST AND PRICE TOWARDS SERVICE AND CORPORATE REPUTATION

“But if it goes sideways it can mess everything up,” he added. Companies need to view dangerous goods in the same way as high-value goods, where there is a similar risk of “diversion”. Dangerous goods constitute just one of a family of goods that need more careful treatment and shippers need to take a holistic, lifecycle view. Good shippers are proactive and try to get ahead of the problem, Samuelson noted. They look at what they do all the way through the system. And when you put it all together, Crist agreed, it makes a difference to the ROI. It’s a bigger job but it carries a lot of value. New technologies can help with compliance and therefore help mitigate risk. Schroeder said he has seen a wide range of different approaches, with some logistics providers doing a lot all the time, while others do only a few things and miss the overall picture. They may be onboarding new customers at an increasing pace and find it hard to keep up with compliance. Romano added that BDO is reaching out to its shippers’ C-suites to try and identify and prioritise risk; “It’s a critical part of the job,” he said. “In dangerous goods, the margin for error is small, supply chain constraints are tighter. You can’t just call any old carrier. This means the supply chain is at greater risk – sometimes you need to help the C-suite understand that.”

Crist returned to the issue Schroeder had already raised, of what he called ‘turnover risk’. Those making supply chain decisions at shippers’ facilities may not be aware of the risk of moving to another logistics provider and using new staff. Training has to be good – especially as there is a lot of competition for good people. GOING BEYOND Bringing the discussion back around to the original point about raising awareness among the C-suite, Samuelson said that managers need to be aware of the limits of their service providers. That means it becomes a throughput problem not a dangerous goods problem. More thought needs to be put towards onboarding new, experienced staff, or training new hires to bring them up to speed quickly. One problem is that dangerous goods compliance is invisible until something goes wrong. “The cost of compliance is like buying insurance,” Schroeder said. “You don’t see a lot of benefit when things are going ok, but it becomes evident when there’s an incident.” But, as Finn said, that can lead managers to bring out the regular comment: “Nothing’s happened, so why am I spending all this money?” It should not be a conversation about cost, Crist insisted, it’s about keeping your promise to your customer and about corporate reputation. “Compliance is a pass/fail environment,” Samuelson added, “You can’t be just ‘ok’, it will end in incidents – and that can have an impact on the stock price. You want to stay off the front page of the paper!” Can this conversation be had now, amidst the pandemic stresses? Romano certainly thought so: “Now is the easiest time to have the conversation,” he said. “Risk messages are getting traction with the C-suite across the country. “There’s a benefit in identifying those risks that are out of your control and those that you can do something about. Define solutions and options for both,” Romano advised. “You need more control and visibility. Look to convert from ‘tactical’ to ‘strategic’. Go beyond cost.” Readers who missed the Labelmaster DG Symposium can catch up on presentations via www.dgexchange.com.

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30 TANKS & LOGISTICS

oriented solutions, and will go intensified with the support of CDPQ and DWS.”

FREE AT LAST INTERMODAL • SNCF’S DIVESTMENT OF ERMEWA DEMOSTRATES ONCE MORE THAT THERE IS APPETITE AMONG INVESTORS FOR RELIABLE INCOME FROM TRANSPORT ASSET LEASING

SNCF, THE FRENCH rail conglomerate, has finalised the anticipated sale of its Ermewa division, which offers leasing services in the tank container and rail sectors. Ermewa, which includes the Eurotainer and Raffles Lease tank container leasing companies, has been sold in a 50/50 deal to Germany-based DWS Group and the Canadian investment group Caisse de dépôt et placement du Québec (CDPQ). The two buyers have paid a total of €3.2bn, which includes assumed debt. Ermewa has a total of 100,000 assets in rail and intermodal service and more than 1,000 clients in 80 countries. It operates from 40 offices around the world, specialising in the

HCB MONTHLY | DECEMBER 2021

design, optimisation and management of strategic assets for the global supply chain. Based in France, it serves a range of clients in the steel, energy, construction, chemicals, food and beverage industries, as well as logistics providers and freight forwarders. Speaking at the announcement of the divestment, Jean-Pierre Farandou, chairman/ CEO of SNCF, said: “The sale of Ermewa is fully in line with the SNCF Group’s strategy to become a world leader in sustainable mobility for passengers and goods.” He also noted that Ermewa will remain an important commercial partner of SCNF and will benefit from the support of long-term partners. The cash received from the sale will also, Farandou said, “help achieve the objective of maintaining the SNCF Group’s financial trajectory”. David Zindo, president of Ermewa Holding, said: “With CDPQ and DWS now effectively on board, Ermewa is set to fully express its potential in the coming years. Robust and decarbonised logistic chains are vital, and we believe our rail car and tank container leasing and maintenance services will play an important role. Our strategic focus remains on growth, innovation, safety, and customer-

WHAT THE BUYERS WANT The acquisition is the fourth under DWS’s Pan-European Infrastructure Fund III. Hamish Mackenzie, head of infrastructure at DWS, said: “We look forward to working with Ermewa’s highly experienced management team alongside our active partner CDPQ to unlock Ermewa’s full potential and ambitions in the European railcar and global tank container markets. We are pleased to continue our strong relationship with SNCF through this transaction, demonstrating trust in our ability to drive value through active asset management and partnership approach.” The transaction also demonstrates CDPQ’s continued commitment to rail mobility in Europe and internationally. Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ, said: “CDPQ is excited to get to work with DWS and Ermewa’s talented teams in order to propel the company into the next phase of its growth. As Ermewa consolidates its leadership, it will play a key role in the transformation and decarbonisation of freight transport, a priority consistent with our commitment of reducing the carbon intensity of our portfolio and more broadly of the economy. We also thank SNCF for its trust and are looking forward to continuing our durable partnership.” www.ermewa.com | www.sncf.com

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32 TANKS & LOGISTICS

EXPRESS DELIVERY DIGITISATION • INTERMODAL TELEMATICS HAS GAINED ITS FIRST CLIENT IN ITALY, AFTER CHEMICAL EXPRESS CHOSE ITS TELEMATICS SOLUTION TO DIGITISE ITS ENTIRE TANK FLEET VISIBILITY AND TRANSPARENCY throughout the whole supply chain have become essential in measuring tank container operators’ performance, as well as providing data on punctuality and accuracy of service, and improving asset flexibility. Giuseppe Avallone, CEO of Italy-based intermodal operator Chemical Express, says: “In order to have a tool that would allow us to have all the parts of our internal process under control, we started looking for an experienced telematics partner that could provide the right telematics solution. Intermodal Telematics (IMT) came to our attention through the IMT magazine Telematics taking over, in which it described the company and the services offered.” Chemical Express is the first Italian company in the liquid chemicals bulk transport sector that will use IMT’s telematics solutions. “The main goal of deploying telematics was to have better control of our transports,” Avallone continues. “When Chemical Express decided to have the integrated telematics system, a team of specialists composed of the IT manager, quality manager, technical manager and sales, verified the products available on the market, compared the services, the support offered and, last but not least the cost. “We chose IMT as a telematics partner for their professional approach and for their experience and good reputation in the market. Moreover, the possibility of having a photovoltaic panel battery, which would allow

 THE TEAM AT CHEMICAL EXPRESS IS EAGER TO LEVERAGE THE INFORMATION IMT’S SYSTEMS WILL PROVIDE

HCB MONTHLY | DECEMBER 2021

a solution with a lower environmental impact, was certainly a very important element in the decision making too. Last but not least, the flexibility shown by IMT during video calls led us to sign an important partnership that will surely last for many years.” WHAT THE CUSTOMER WANTS Chemical Express is aware that it needs to accelerate the digitisation process to provide a service that is up to date and meets its customers’ needs. By partnering with IMT it also can choose from a range of equipment that delivers the tools its customers demand. For instance, it is mainly using IMT’s temperature (WT19-Ex) and heating (HS19-Ex) sensors, along with the solar-powered CLT20-Ex tracking solution. “Thanks to these,

we now have the opportunity to optimise certain processes and to save time and money, for example by being able to check product temperature remotely,” Avallone says. “We always try to have all the telematics information integrated into our IT system, so it is immediately available for all the operators. We expect that this information will help us to monitor and to keep under control our transports, especially when our tank containers are handled by our subcontractors or when we want to monitor the heating process at (third party) depots for example,” Avallone adds. “Our expectations regarding the improvement of fleet management, times and costs are very high. We are now using both the IMT web application as well as the IMT Fleets App. We have been using the new technology for a few weeks now, and for the moment we prefer to operate by using the web application as there are more options. When the use of this Fleets app will be extended to all the operators, we expect a greater use of it, especially outside business hours. We expect that in the near future telematics services will be increasingly requested by the customers, allowing them to have total control of their merchandise.” www.chemicalexpress.it www.intermodaltelematics.com

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NOTE:

BELGIUM Inge Karlberg

SWEDEN Steve Govers

+32 475 28 20 77 inge.karlberg@mimu.be

+46 739 37 08 75 steve.govers@mimu.be

IF THERE IS A ONE PAGE FEATURE (LEFT HAND SIDE) NEXT TO AN

ADVERT THEN YOU NEED TO MOVE TANK LEASING THE “SECTION SLUG” OVER TO THE

OTHER SIDE SO THE READER KNOWS WHAT SECTION THEY ARE IN. IF TWO ONE PAGE FEATURES ARE SIDE BY SIDE, BUT THEY BELONG TO DIFFERENT SECTIONS THEN YOU NEED TO HAVE A “SECTION SLUG” ON BOTH SIDES

For all your specialty tank container needs www.mimu-tankleasing.com WWW.HCBLIVE.COM

34 TANKS & LOGISTICS

WELL EQUIPPED EQUIPMENT • FORT VALE HAS DELIVERED ON ITS PROMISES TO COME UP WITH SOME EXCITING DEVELOPMENTS IN VALVES FOR TANK CONTAINERS AND RAIL TANK CARS OVER THE PAST year, tank container equipment specialist Fort Vale has been hinting at major product developments at its base in the north of England. Recently, those hints have turned into new products on the market, all designed to improve safety and efficiency in the intermodal transport of dangerous goods in tanks. The most significant launch is a new product range for the transport of LPG by rail, which will be rolled out over the coming year. The new range, Fort Vale says, “represents a substantial increase in corrosion resistance, flow rates and overall effectiveness”. It includes a hydraulic bottom discharge valve, bellow-operated Y-valves, bottom discharge with hydraulic or mechanical indicator, hydraulic pump, and bottom discharge

HCB MONTHLY | DECEMBER 2021

and pump assembly. All equipment is manufactured from stainless steel, offering improved corrosion resistance and longevity compared to competing systems. “This equipment has been through extensive cycle testing over the last 12 months and we’ve also added a hydraulic vent valve to the range for specific customer requirements on the liquid tanks,” explains Ashley Leach, technical sales engineer at Fort Vale. “We like to think years ahead, so that when you buy our equipment, you know it will still be viable in 10 or even 20 years time, so even though current regulations give an allowance of 25 bar MAWP, our equipment is rated to 30 bar, giving customers the reassurance that their equipment will not become obsolescent as a result of future rule changes.”

BALLS IN THE AIR Fort Vale has also responded to industry requests with an update to its Firesafe and Lethal Service ball valve range, improving safety and sealing performance. These valves are designed to contain product and limit any leaks to the environment if the seals perish in a fire or hazardous chemical situation. They are suitable for standard T11 tank containers and for higher pressure tank requirements, such as the T22 and others, as well as most road tankers. The valves are available in 1-, 2and 3-inch sizes in stainless steel as standard, though Fort Vale can also manufacture them from exotic materials on a bespoke basis. “We were approached by a number of our customers to enquire if we could modify our existing ball valve range and adapt it for extreme hazard situations,” explains Jonathan Parker, business development manager at Fort Vale. “After rigorous testing over the last year, we are very happy with the result – and so are our clients.” Finally, Fort Vale has introduced a new ultra-low profile DN80 ball valve that is compact, lightweight and slimmer than existing models by 30 mm. The design allows customers to use a DN80 connection for loading or unloading on top of a tank container where space is limited. The valve is manufactured from 316 stainless steel for maximum corrosion resistance and features an integrated syphon tube and seal carrier design, improving sealing performance when connecting heavy hoses and pipework. Instead of operators being forced to use smaller equipment to work within the restrictions of the fixed tank container size, the DN80 ball valve allows for a flow of maximum capacity - even at its reduced height - thus allowing for unloading without impediment or loss of time, Fort Vale explains. “We’ve been aware of this operational restriction for some years now and are proud that we have found a simple, workable solution to the problem,” says Andrew Paterson, technical sales account manager at Fort Vale. “It goes to the heart of what we do at Fort Vale - same quality, same performance - but small enough to make a big difference, problem solved.” www.fortvale.com

SECTION SLUG 35

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thresholds) can serve as a trigger for alert notifications. ON BOTH SIDES

IMT is the independent telematics solution partner for the tank container and rail car industry andis the world’s leading telematics company. IMT also develops hardware and software in-house and sets the standard in smart sensor technology. All to take your tank telematics and your businessto the next level.

•

www.intermodaltelematics.com Tel.: +31 76 231 02 00

info@intermodaltelematics.com

NEWS BULLETIN

TANKS & LOGISTICS

IMPERIAL WASHES BETTER

Imperial Logistics has opened a new tank cleaning and storage facility in Terneuzen, the Netherlands, to replace its smaller site at Axel. The new depot (right) has two standard chemical cleaning bays and a third with a recirculation cleaning system for heavy duty cleaning applications involving substances such as latex and synthetic resins. The new site can also clean intermediate bulk containers (IBCs) and extended steam facilities allow tank heating out of hours and at weekends. A significant upgrade is provided by an on-site tank container depot for storage of empty and uncleaned units, which increases the flexibility of the cleaning services. “Our new, state-of-the-art tank cleaning station accommodates the increasing demand for third party cleaning and storage facilities, provides even higher standards of quality, and enhances worker safety as the need for entry into tanks can now be virtually eradicated,” says Robert Libbers, site manager. “Furthermore, we are now more closely aligned with our group´s sustainability objectives, having minimised water consumption through the sophisticated re-circulation system. Existing and new customers will greatly benefit from our newly-expanded cleaning and storage services.” “The investment in the new cleaning station at Terneuzen supports our policy to continuously increase our services and raise safety to the highest level – in line with our other tank cleaning sites, at Krems (Austria) and Salzgitter (Germany),” adds René van de Ven, Imperial’s managing director, Netherlands. www.imperiallogistics.com DEN HARTOGH EXPANDS IN ASIA

Den Hartogh Logistics has merged its operations in South Korea, Thailand and Malaysia with the MUTO group of companies. The move is another step in realising Den Hartogh’s ambition to be a leading tank

HCB MONTHLY | DECEMBER 2021

container operator in the Asia Pacific region in both deepsea and intra-regional trade. It will add five offices, giving direct access to the local markets. As a result of the merger, MUTO Global Thailand and MBT Global Malaysia will be rebranded as Den Hartogh Thailand and Den Hartogh Malaysia, respectively. The MUTO Logix Korea branding will be retained, with the additional mention of it being a member of Royal Den Hartogh Logistics. “With this merger, Den Hartogh is confident of further increasing customer satisfaction by providing tanks at the right place, right time and right quantities,” the company states. “Den Hartogh will be positioned to serve its customers better now in Seoul, Bangkok and Klang with more personalised and innovative logistics solutions.” www.denhartogh.com ITCO ON SUSTAINABILITY

ITCO, the International Tank Container Association, has published new guidance on tank sustainability, with a focus on repurposing and recycling. This aims to help ITCO

members with environmental processes to enhance the tank container industry’s cradle-to-grave-to-cradle sustainability and also to raise awareness of the tank container as the superior transport mode in terms of environmental performance. “Intermodal tank containers are widely recognised as a safe and reliable means of global transport of liquids and liquified gases in bulk,” ITCO says. “The tank container is also an environmentally sustainable mode of transport. A core environmental advantage of the tank container is that it is manufactured from sustainable materials, designed for continued re-use over a period of 20 years or more; and, in due course, it is proven to be suited to repurposing and recycling.” The new guide, number TG-08 in ITCO’s series of technical guidance, can be downloaded by ITCO members here: https://international-tankcontainer.org/en/publications. HG OPTS FOR BROEKMAN

HG, one of the largest suppliers of cleaning products in the Benelux countries, has decided to outsource its warehousing to Broekman

TANKS & LOGISTICS 37

Logistics’ Venlo site. “Outsourcing a part of our supply chain is a big step for us,” says Jeroen Mustert, CEO of HG. “We have always decided to keep the supply chain in our own hands as much as possible. This to have optimal control over the production process. However, in line with safety rules and regulations and our growth ambitions, the option to outsource certain aspects of the supply chain became increasingly attractive. It took time to find the right partner who could provide solutions to the processes, standards and service levels we maintain. In the end we found our partner and location in Broekman Logistics Venlo.” “Our warehousing location in Venlo is specifically designed for combined ADR and non-ADR storage,” says Ron Kuijpers, director of business development at Broekman Logistics. “HG was looking to outsource the storage and part of the inbound logistics of their cleaning products. Their need for these logistics services and centralisation of their supply chain within one strategic location seamlessly fits with the warehousing &

distribution solutions Broekman Logistics offers.” www.broekmanlogistics.com BOASSO BUYS REES

Isotank Services, a wholly owned subsidiary of Boasso Global, has completed the acquisition of PM Rees & Sons and its affiliate Atlantic Tank Clean Barry from owner Peter Rees. PM Rees is the leading provider of tank container services and transport in Wales, UK. “We are tremendously excited about the acquisition of PM Rees, which helps continue to build out our international footprint with a strong position in the strategically important chemical manufacturing hub in southern Wales,” says Joe Troy, chairman/CEO of Boasso Global. “More importantly, we are fortunate that Peter Rees has agreed to stay on with us in a leadership role, providing Boasso Global with his enormous depth of knowledge of the tank container services and transportation space, and his unparalleled customer relationships.”

Peter Rees will work directly with Colin Garnett, senior vice-president of European operations at Boasso Global. “I have known Colin for many years and I look forward to working with him to grow our collective UK business and find ways to enhance services to our customers,” Rees says. www.boassoglobal.com www.pmrees.com MILKYWAY ADDS EXPERTISE

Milkyway has acquired Shanghai Chemical Transportation ( Jiaoyun Chemical), a former subsidiary of Shanghai Transportation Group. Jiaoyun specialises in the road transport of hazardous chemicals, wastes, explosives and radioactive substances. Jiaoyun is also a key enterprise, taking part in the development of standards and regulations, and undertakes the transport of hazardous and radioactive wastes for disposal. The acquisition will tie in with Milkyway’s recently won transport and loading contract from Shanghai Nuclear Engineering for lithium and hydrogen logistics. www.mwclg.com JOST BUYS BE-TRANS

Jost has acquired Be-Trans, based in Geel, Belgium. The firm was founded in 1998 and specialises in the one-way international transport of containers. It has ISO 9001 and SQAS certification, operates 200 tractors and a fleet of 350 containers, curtain-siders and flatbed semi-trailers. Be-Trans has also long experience in the loading and unloading of containers and tankers. Jost is taking over the entire company, which will continue to be run by its current managers. “The managers at Jost are delighted with this acquisition, corresponding to the strategic decision of the European group, to bring even greater added value to its containers division,” Jost states. jostgroup.com be-trans.be

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38 COURSES & CONFERENCES

Get your complimentary ticket

8 - 10 March 2022 Ahoy, Rotterdam

Place yourself at the heart of the leading bulk liquid storage event

COURSES & CONFERENCES 39

CONFERENCE DIARY The ongoing global Covid-19 pandemic continues to cause 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.

DECEMBER GPCA Forum December 7-9, Dubai 15th annual meeting of the Gulf Petrochemicals & Chemicals Association www.gpcaforum.net

JANUARY NorShipping January 10-13, Oslo Biennial exhibition for the global maritime industry http://nor-shipping.com/ INMEX-SMM India January 19-22, Mumbai Biennial maritime exhibition for the south Asian shipping industry www.inmex-smm-india.com COHMED January 24-28, San Diego Annual conference of the Cooperative Hazardous Materials Enforcement Development (COHMED) programme https://cvsa.org/eventpage/events/cohmedconference/ European Oil & Energy Storage Conference January 25-26, Amsterdam Platts’ 15th annual conference on oil markets for terminal owners, ports, oil traders, financiers and analysts https://plattsinfo.spglobal.com/european-oilenergy-storage-conference#/summary

MARCH

Tanks and Terminals 2022 March 21-23, Dubai Third annual conference and workshop on integrity management of aboveground storage tanks www.marcusevans-conferences-middleeastern. com/marcusevans-conferences-event-details. asp?EventID=26765&SectorID=42#.YZvCdlPLdMA

PPC Spring Meeting March 6-8, Tucson Bi-annual meeting and tradeshow of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php

Hazards Asia Pacific March 22-23, virtual Annual process safety conference www.icheme.org/career/events/hazards-asiapacific/

StocExpo 2022 March 8-10, Rotterdam The main annual exhibition and conference for the European tank terminal industry www.stocexpo.com/en

2+2 March 22-25, San Francisco Joint event by the International Air Cargo Association (TIACA) and Transport Logistic to discuss innovation in the logistics sector www.aircargoforum.org/conference/2plus2/

International Energy Week February 22-24, virtual/London Annual week of meetings, conferences and seminars (formerly ‘IP Week’) www.ieweek.co.uk

AFPM Annual Meeting March 13-15, New Orleans AFPM’s annual meeting for refiners and marketers www.afpm.org/events/2d323f000003c1 Intermodal South America March 15-17, São Paulo/hybrid 26th annual international exhibition on intermodal logistics, cargo transport and international trade www.intermodal.com.br/en

FEBRUARY

Hydrogen & Fuel Cells Energy Summit March 16-17, Porto Conference to discuss innovations in hydrogen and fuel cell technology, production and transport www.wplgroup.com/aci/event/hydrogen-fuel-cellsenergy-summit/

Internationale Gefahrgut-Tage Hamburg 2021 February 14-15, Hamburg 37th annual conference on dangerous goods transport (German language) www.ecomed-storck.de/Veranstaltungen/

LNG Congress Russia March 16-17, Moscow Eighth annual congress and exhibition on developments in Russian and Arctic LNG www.lngrussiacongress.com/en

Battery Recycling Europe February 16-17, London Conference for the battery recycling and manufacturing sectors www.wplgroup.com/aci/event/battery-recyclingeurope/

AHMP National Conference March 19-23, Las Vegas Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/events/EventDetails.aspx

BADGP March 24, Coventry Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/ AFPM IPC March 27-29, San Antonio AFPM’s annual International Petrochemical Conference www.afpm.org/events/2d321600000fbc ChemCon Europe March 28-April 1, London Platform for discussion on international chemical legislation https://chemcon.net/ LogiChem March 29-31, Rotterdam Chemical supply chain and logistics conference http://logichem.wbresearch.com/

APRIL COSTHA 2022 April 4-8, virtual Annual forum and expo of the Council on Safe Transportation of Hazardous Articles www.costha.com

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Vehicle Type

Substance

Details

Source

hydrochloric acid

Several tank cars of UP train derailed; most tank cars were empty but one with residue of hydrochloric acid cargo leaked, prompting local evacuation, highway closure; air monitoring showed it safe for locals to return

CBS

28/9/21 Johannesburg, road tanker — South Africa

Empty chemical tanker crashed on N1 motorway after tyre burst; two other vehicles were caught up in the crash, one ramming into tanker and catching fire; two killed in car, tanker driver, one other injured

Sowetan Live

11/10/21 nr Worcester, road tanker bitumen Worcs, UK

Road tanker with bitumen caught fire on M5 motorway between Worcester and Droitwich, cause unknown; motorway had to be closed for several hours; no injuries reported

BBC

11/10/21 Nsawam, road tanker fuel Eastern, Ghana

Road tanker crashed, overturned on Nsawam bypass of Accra-Kumasi highway; pictures showed leak of fuel from tanker but no fire; one lane of highway closed during cleanup; no injuries reported

Modern Ghana

13/10/21 Yellapur, road tanker benzene Karnataka, India

Road tanker with benzene from Mangaluru to Ahmedabad suffered ‘mishap’ on NH 63, spilling cargo to farmland; spill ignited, burning crops; highway closed for three hours; chemical agent used to mitigate impact

Deccan Herald

13/10/21 Mubi, road tanker gasoline Adamawa, Nigeria

Fire broke out during discharge of gasoline from road tanker to jerrycans at filling station; at least five people, including three brothers, were killed in the fire; investigation underway, as discharge operation was suspicious

Punch

13/10/21 Revere, road tanker diesel Massachusetts, US

Some 10,000 gal (38 m3) diesel spilled after Goguen tank truck rolled over at entry to Sunoco filling station, puncturing all tank compartments; some fuel reached nearby water courses; police investigating

Boston Globe

14/10/21 Thane, road tanker furnace oil Maharashtra, India

Road tanker ran into road divider, rupturing tanker and spilling furnace oil to both sides of major road; fire crews sprayed water, spread sand on spill but massive traffic disruption until wreck had been cleared

Times of India

17/10/21 Abeokuta, road tanker gasoline Ogun, Nigeria

Road tanker with 40,000 litres gasoline overturned on roundabout; tank barrel was damaged, leaking fuel to road; fire crews cordoned area off; traffic disrupted for several hours; no fire or injuries reported

Daily Trust

18/10/21 West Oakland, freight train California, US

Six cars derailed near Port of Oakland, four with sulphuric acid; fire crews called in hazmat teams in case of leak of acid but none of the tank cars was badly damaged

SFist

22/10/21 Pune, tank container solvent Maharashtra, India

Driver lost control of truck carrying tank container with thinner, side-swiping bus and other vehicles before overturning; some leak of product; three people killed in bus, 12 injured; traffic disruption during cleanup

Times of India

27/10/21 Fairmont, freight train ethanol Minnesota, US

Eight tank cars derailed, four of which overturned; all were carrying ethanol; road blocked by wreck; police cordoned off large area, fearing fire, but no indication of leak, fire or injuries

KSTP

26/9/21 Smithville, freight train Texas, US

sulphuric acid

MARINE/INLAND WATERWAY INCIDENTS Date Location

Vessel

Substance Details

Source

26/9/21 nr Wuhu, Hua Hong 18 Anhui, China

dangerous goods

River tanker, moored in Yangtze River near Wuhu for cargo operations, suffered explosion, possibly due to hot work on deck; three crew near site of explosion were badly injured, died in hospital

FleetMon

27/9/21 Zhoushan, Sang Shin Zhejiang, China

carbon dioxide

Three crew were killed, two more injured by release of CO2 in engineroom of car carrier; accident happened during inspection of firefighting system; failure to follow procedures cited as cause

FleetMon

30/9/21 Chittagong, Grand Ace8 diesel Bangladesh

Oil/chemical tanker (46,200 dwt, 2008), arriving at Chattogram oil terminal with diesel cargo, contacted jetty, causing heavy damages; accident said to be caused by faulty anchoring mechanisms

FleetMon

30/9/21 Laccadive Sea

Containership (13,800 teu, 2013) interrupted voyage from Singapore to Suez after one or more containers were found leaking; nature of cargo not known; berthed in Colombo for damaged containers to be discharged

FleetMon

2/10/21 off Orange county, pipeline crude oil California, US

Major oil spill after rupture of pipeline from offshore platform; suspected that vessel had dragged anchor, damaging line (which was said to have been moved without changes to charts), while waiting for a berth

LA Times

7/10/21 Lena River, Irkutsk, Russia

Two crew were injured by apparent ignition of petroleum vapours in cargo tank of tanker (possibly icebreaker) near Petropavlovsk; no spill reported and no further damage to vessel

Tass

10/10/21 nr St Goar, unknown diesel RP, Germany

Inland tanker with 1,300 tonnes diesel hit rocks, grounded in Rhine, reportedly as a result of navigation error; vessel remained stuck overnight until it could be freed; fairway closed; no leak of cargo reported

Berliner Zeitung

20/10/21 Ploce, Mehmet Unlu scrap Croatia

Fire broke out in cargo of scrap metal during loading onto general cargo ship (8,100 dwt, 2000); some cargo had to be discharged before crews could get to seat of fire; thought cargo spontaneously ignited

FleetMon

Thalassa Patris

hazardous materials

Semyon petroleum Dezhnev

HCB MONTHLY | DECEMBER 2021

SAFETY 41

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

Details

Source

28/9/21 Bintulu, LNG terminal — Malaysia

Five workers were injured at the Petronas liquefaction and LNG export terminal when fire broke out in the sea cooling water outfall channel, outside process area; site team dealt with fire; operations unaffected

Offshore Energy

1/10/21 Kairana, UP, India

Four people were killed in explosion at illegal firecracker plant in Shamli district; excavator had to be used to clear rubble to find the dead and injured; factory formerly made pickles; police investigating

NDTV

6/10/21 Texas City, oil refinery crude oil Texas, US

Crude oil storage tank at Marathon’s Galveston Bay refinery suffered major leak due to pump seal failure; all spilled oil was contained on site; air monitoring showed no off-site risk; Marathon investigating incident

ABC

9/10/21 Ruzsky, oil depot diesel Moscow, Russia

Fire broke out in storage tank with diesel at oil depot 100 km west of Moscow; major response by fire crews managed to extinguish fire within an hour; no injuries reported

Sputnik

11/10/21 Zahrani, oil depot gasoline Lebanon

Fire broke out in gasoline tank at army-owned section of Zahrani Oil Installation, close to major power plant; witnesses reported hearing blast in 300-m3 tank before the fire started; fire out in four hours

BBC

18/10/21 Mina al-Ahmadi, oil refinery crude oil Kuwait

Fire broke out in desulphurisation unit at KNPC refinery, injuring a number of workers, though none seriously; site fire team had blaze under control promptly; locals reported hearing blast before fire broke out

Al Jazeera

20/10/21 nr Homs, Syria

Five killed, four injured by explosion in Syrian army ammunition depot along Homs-Hama M5 road; reports said blast happened during routine maintenance work

Jerusalem Post

At least 20 people believed killed by explosion, fire on petroleum product pipeline; locals said youths had tapped into line to steal fuel, which is reportedly common in the area; not known who owns the pipeline

Guardian (Lagos)

fireworks firecrackers factory

ammunition ammunition depot

21/10/21 Emohua, pipeline Rivers, Nigeria

petroleum products

21/10/21 Benoni, Gauteng, South Africa

chemical chemicals plant

Major fire broke out at Shield Chemicals plant, involving benzene, alcohols and finished products; no casualties reported; cause of fire unknown

The South African

22/10/21 Alxa League, I Mongolia, China

chemical chemicals plant

Four killed, three injured by explosion at chemical plant in Bayan Obo industrial park; ensuing fire took two days to extinguish; production halted; regional government to investigate incident

Xinhua

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INTELLIGENT FREIGHT SOFTWARE • COMPLEXITY IN THE DANGEROUS GOODS SHIPPING CHAIN CAN BE SMOOTHED WITH EFFECTIVE SOFTWARE, AS LABELMASTER’S DGIS IS PROVING COMPLIANCE SOFTWARE IS nothing new: systems have been around for decades that help shippers and carriers to verify the accuracy of packaging, labelling, marking and documentation. Such systems have, though, become more sophisticated, especially in the past few years. Nowadays, in an increasingly digitised and integrated world, there is also the potential to embed the compliance function within other business systems, such as enterprise resource planning (ERP) platforms. The idea is that such integration allows a seamless flow and verification of data without repeated re-keying and with the assurance that all regulatory and compliance information is up to date. Furthermore, with the progress made by IT systems in the past decade, users are now

 INTEGRATING DG COMPLIANCE SOFTWARE INTO ERP SYSTEMS CAN STREAMLINE SHIPPING PROCESSES

HCB MONTHLY | DECEMBER 2021

expecting a straightforward means of managing their operations, something that has always been difficult in the complex and ever-changing world of dangerous goods compliance. Ashok Vasan, president and chief revenue officer of Chennai-based Pando, which offers a transport management system (TMS), explains it like this: “Shippers around the world are looking for out-of-the-box solutions for managing freight but many of the transportation management systems lack the necessary dangerous goods management capabilities.” INTEGRATED SOLUTION To get over the shortfall, Pando has integrated Labelmaster’s Dangerous Goods Information System (DGIS) into its TMS. This now provides a seamless, integrated solution for planning and executing the shipment of dangerous goods and ensures compliance with global

shipping regulations. “By integrating DGIS with Pando’s TMS, we can now give our customers access to best-in-class DG shipping software, on a single integrated interface,” Vasan says. The aim of Pando’s TMS is to help businesses digitise, monitor and optimise their supply chain operations. By means of a networked TMS, Pando helps enterprises of all sizes automate and manage their transport planning and execution and connect to logistics vendors through a central control tower. Through the integration of Labelmaster’s DGIS, Pando’s TMS can offer shippers access to up-to-date hazmat tables, compliant shipping papers and more. DGIS also validates all dangerous goods data against the latest rules and regulations, reducing the chance for a rejected shipment or fines due to noncompliance, and helping maintain a smooth supply chain. “Shipping dangerous goods involves complex rules and regulations but, unfortunately, the process is often highly manual, and can be cumbersome to manage and update and highly prone to errors,” says Alan Schoen, president of Labelmaster. “Integrating the two systems enables organisations to automate and streamline their shipping processes by providing all of the necessary dangerous goods shipping forms and rules within the Pando TMS. Pando

SAFETY 43

customers can be confident that their shipments are compliant with the latest regulations and reduce the risk of supply chain delays and expense.” GOING TO SEA When it comes to ocean shipping, particularly for groupage cargo, the complications mount. Compliance with the International Maritime Dangerous Goods (IMDG) Code requires complex stowage and segregation calculations. “The complex, ever-evolving nature of hazmat regulations makes shipping those goods challenging and timeconsuming,” says Joseph Cabrera, managing partner of ShipERP, which describes itself as the leading SAP-integrated shipping solution, providing advanced shipping management functionality to users of the SAP ERP system, and helping businesses seamlessly integrate more than 250 shipping carriers to realise a more efficient shipping operation while reducing freight costs.

ShipERP has now likewise integrated Labelmaster’s DGIS into its system, allowing its clients to create compliant shipping documents, labels and more within a single interface, while DGIS validates dangerous goods data against the latest rules and regulations, including carrier variations that may differ from other industry or government regulatory bodies. “Integrating DGIS with ShipERP will help automate the process and reduce the risk of fines or delayed shipments by ensuring shipments are in full compliance with the latest regulations,” Cabrera adds. “This not only helps take the guesswork out of transporting hazardous goods, but also streamlines the shipping process to create a more efficient supply chain.” ShipERP’s system enables businesses to fulfil their shipping requirements, whether that is for small parcel consignment, less-than-truckload (LTL) shipments or a combination of the two, using integrated

carrier real-time rate quoting, tracking, proof of delivery, transport planning, shipping compliance and many other functionalities. ShipERP says it is dedicated to increasing supply chain efficiencies for businesses looking to transform their order-to-cash process via shipment optimisation. “Maintaining a smooth and efficient supply chain is more important than ever as businesses around the world are working hard to navigate a range of supply chain challenges and disruptions,” says Kristen Dapore, director of business strategy at Labelmaster. “Shipping hazmat adds another level of complexity and risk to the supply chain, so we’re excited to partner with ShipERP to provide a best-in-class DG shipping software that will enable its users to better manage shipping operations and further promote a safe and compliant supply chain.” www.labelmaster.com www.pando.ai www.shiperp.com

LEFTOVER DISHES MULTIMODAL • THE FIRST SESSION OF THE UN TDG SUBCOMMITTEE OF THE NEW BIENNIUM FEATURED A LOT OF WORK TO WRAP UP OUTSTANDING ITEMS FROM 2020 THE 58TH SESSION of the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG) opened on 28 June for one week with Duane Pfund (US) in the chair and Claude Pfauvadel (France) as vice-chair. It was attended by delegations from 23 states, observers from Latvia, Luxembourg, Moldova and Turkey, and representatives from the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the UN Food and Agriculture Organisation (FAO), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the World Health

 THE NEW BREED OF FRP PORTABLE TANKS IS CAUSING HEADACHES FOR THE UN EXPERTS

HCB MONTHLY | DECEMBER 2021

Organisation (WHO) and 29 non-governmental organisations. As explained in the first part of this report on the meeting (HCB November 2021, page 56), the Sub-committee’s work was hampered by Covid restrictions, budgetary constraints, ongoing reconstruction of the UN’s offices in the Palais des Nations in Geneva, and difficulties in accessing live interpretation. Nevertheless, in this first of four sessions planned for the 2021/22 biennium, the experts did manage to get some work done on the amendments that will appear in the 23rd revised edition of the UN Model Regulations, which is due to be published in 2023 and will inform the amendments that are made to the modal, regional and national regulations that will appear from 2025. That first part of the report covered

discussions by the Working Group on Explosives and matters relating to listing, packaging, classification and electric storage systems. This second and final part covers the remaining discussions, which ranged widely across several topics. TRANSPORT OF GASES The Council on Safe Transportation of Hazardous Articles (COSTHA) returned to a topic that had been discussed during the previous biennium, namely a proposal to increase the limited quantity (LQ) limit for certain Division 2.2 gases. COSTHA and the European Industrial Gases Association (EIGA) had proposed that the UN Model Regulations adopt provisions consistent with special provision 653 of ADR, a proposal that received a mixed reception. COSTHA now returned with a revised proposal to increase the LQ limit for all Division 2.2 gases that do not have subsidiary hazards from 120 ml to 1 litre. COSTHA was agnostic about changing the limit for refrigerated liquids and it did not include Division 2.2 articles, since these are subject to specific special provisions. There was general support for the idea, though there were still concerns. The

REGULATIONS 45

proposal, for instance, did not address pressure limits and it might also be necessary to retain requirements for the construction and testing of cylinders up to this new limit, which would require consequential amendments in Chapter 3.4. The Subcommittee agreed that the proposal needed further review and additional supporting data. COSTHA will submit a revised document for consideration at a forthcoming session. EIGA was successful in its proposal to amend 4.1.6.1.8 to align its provisions with those of the ISO 11117 standard for valve protection caps and valve guards for transportable gas cylinders. This standard explicitly excludes those protection devices that are an integral part of the shell, which is not reflected in the UN Model Regulations. The Sub-committee agreed that this made sense, clarifying the terminology used in sub-paragraphs (b) and (c) of 4.1.6.1.8 and revising the paragraph after the indents to read: For pressure receptacles with valves as described in (b) the requirements of ISO 11117:1998, ISO 11117:2008 + Cor 1:2009 or ISO 11117:2019 shall be met. Requirements for shrouds and permanent protection attachments used as valve protection under (c), are given in the relevant pressure receptacle shell design standards, see 6.2.2.1. Valves with inherent protection used for refillable pressure receptacles shall meet the requirements of clause 4.6.2 of ISO 10297:2006 or clause 5.5.2 of ISO 10297:2014 or clause 5.5.2 of ISO 10297:2014 + A1:2017, or in case of self-closing valves, of clause 5.4.2 of ISO 17879:2017. For valves with inherent protection used for non-refillable cylinders, the requirements of clause 9.2.5 of ISO 11118:2015 or of clause 9.2.5 of ISO 11118:2015 + A1:2019 shall be met. On the topic of standards, the International Organisation for Standardisation (ISO) arrived with a list of revised standards that are referenced in the Model Regulations. The Sub-committee agreed to update those references, involving: ISO 11114-1, now in a 2020 edition; ISO 16148, which has an additional Amd.1:2020; ISO 13088, which again has a new Amd.1:2020; and ISO 11118, which is referenced in special packing provision PP89 under P206, and now reads: “clause 1 of ISO 11118:2015 + Amd 1:2019”.

Germany reported on the work of the intersessional working group on the pVproduct limit for pressure receptacles. The group has been attempting to establish a permissible limit for injuries to people and damage to buildings as a result of a catastrophic failure of a pressure vessel and to determine how to define limits of pressure and/or volume in pressure receptacles. A very lengthy and highly detailed informal document explained how the working group was addressing the issue and the Sub-committee encouraged the group to continue. PACKAGING PROPOSALS Germany followed up on its proposal at the previous session to amend the criteria for passing the top lift test for wooden large packagings and fibreboard large packagings, in view of the comments that were made. Currently the criteria given in 6.6.5.3.2.4 apply only to metal, rigid plastics and flexible large packagings and it was generally agreed that this should be extended. Germany’s solution was simple and was agreed: at the start of 6.6.5.3.2.4(a), “Metal and rigid plastics” is replaced by “All types of large packagings other than flexible”. Belgium similarly followed up on the previous session and its proposal to clarify the text relating to the non-combustibility testing of packages intended to transport defective lithium cells and batteries (P908, LP904) or prototype/limited production cells and batteries (P910, LP905). Some experts considered that the provision means that the packaging as a whole needs to be assessed, whereas the correct interpretation limits the non-combustibility test to the thermal insulation and cushioning material. Belgium had worked up a revised proposal taking those comments into account, while also noting that it should be specified that the country that certifies the packaging is a country that can recognise standards for testing noncombustibility. There was some reluctance to adopt this latter point, though it was felt it would be worth pursuing. The Sub-committee also declined to include reference to ISO 1182 as a standard for assessing non-combustibility. However, it was agreed to clarify the text in the

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packing instructions mentioned and, as a result, “Non-combustibility” is replaced by “The non-combustibility of the thermal insulation material and the cushioning material” in P908(5), P910(1)(e), LP904(5) and LP905(1)(e); in P910(2)(d) and LP905(2)(d), the new text reads “The non-combustibility of the cushioning material”. Spain noted that ISO 535:1991, which deals with the use of the Cobb method for determining the water absorptiveness of paper and board, has been updated. It felt that should be reflected in the Model Regulations and the Sub-committee agreed, changing the reference to ISO 535:2014 in 6.1.4.12.1, 6.5.5.4.16, 6.5.5.5.3 and 6.6.4.4.1. Belgium invited the Sub-committee to consider the role of recycled plastics material in transport packagings and the way that such material is addressed in the Model Regulations. In an informal document it posed some questions, such as:

 ISSUES AROUND DIVISION 2.2 GASES AND PRESSURE RECEPTACLES FEATURED ONCE AGAIN ON THE AGENDA

HCB MONTHLY | DECEMBER 2021

Can the concept of ‘suitable plastics material’, which is taken to exclude recycled plastics, be more tightly defined? Depending on that definition, is it necessary then to revise what is understood as ‘recycled plastics material’? Is a performance-based approach, using prototype testing, sufficient, or should criteria be included for the source material? Should all types of plastics packaging be considered equal when it comes to the use of recycled plastics material or should only certain types or uses of packaging be allowed to use it? Should packagings manufactured from recycled plastics material be marked to distinguish them from packagings made from virgin material? Is this even a matter for the UN Model Regulations or should it be left to competent authorities to decide? The Belgian paper drew a range of responses and its expert also noted that there is not yet enough data on the experience with recycled plastics material and that the trust in quality assurance management of

manufacturers is not sufficient to ensure safe transport of dangerous goods. He volunteered to organise, if deemed appropriate, an intersessional meeting to further discuss this subject. The Sub-committee agreed this was a useful way forward and encouraged all delegates to share their comments with Belgium. PORTABLE TANKS Another topic to make a reappearance was the interpretation of the need for an internal examination of portable tanks as part of the intermediate periodic inspection. Germany had gathered the comments made at the previous session and arrived with a formal proposal to clarify the conditions under which the requirement may be waived. This was also met with a division of opinion, as it was felt the proposed text did not clear up the potential for different interpretations. Germany agreed to revise its proposal for further discussion at the next session. The International Dangerous Goods and Containers Association (IDGCA) sought some changes in Chapter 6.7, specifically regarding

REGULATIONS 47

the testing of portable tanks. This currently points to ISO 1496-3:1995 but, IDGCA argued, this applies only to tank containers, which are just one type of portable tank, and this could be misleading. It offered two proposals but again the Sub-committee wanted more clarity on the implications. IDGCA will prepare a more detailed proposal for the next session. There were three separate papers addressing the emerging issue of portable tanks with shells manufactured from fibre-reinforced plastics (FRP). Russia felt that the current position, following the adoption of the new Chapter 9 on FRP tanks, does not fully address the issue of the valves, relief devices and manholes on such tanks; these are currently manufactured of metallic materials but, in its experience, Russia has found that these devices have a shorter life than the tanks themselves, especially when handling corrosive substances. It argued that using FRP materials in the construction of such service equipment would lead to a longer service life and a reduction in the costs of repair and replacement.

Russia has had some experience in the matter and has found that FRP equipment functions well; it invited discussion on the development of a new 6.9.3 that would lay out requirements for the design, construction and testing of such equipment, perhaps through a new informal working group, bearing in mind that the existing working group on FRP tanks has concluded its work under its current mandate. The Sub-committee accepted Russia’s offer to lead the new informal working group on FRP service equipment for portable tanks and the terms of reference that Russia had drawn up. The UK expressed concern that the newly adopted provisions for FRP tanks in Chapter 6.9 do not require the resilience of such tanks to accidental and in-service damage to be equivalent to (or better than) that of conventional metallic tanks. It invited comments, with the intention of developing proposals for amendment, if necessary. The International Tank Container Organisation (ITCO) also noted that Chapter 6.9 lacks any requirement to demonstrate an equivalent level of safety for the shell material

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when compared to the resilience required for metallic shells in Chapter 6.7. In a very detailed paper, it described how impact resilience in FRP materials can be measured and proposed new text for 6.9.2.4.2 on the minimum thickness of the FRP shell. Some experts were of the opinion that the “minimum equivalent thickness” needs to be further discussed and that the referenced test method according to standard EN 13095 is inappropriate. The Sub-committee welcomed the offer by ITCO to prepare, together with interested parties, an updated proposal for the next session. Meanwhile, Steve Webb (US), chair of the informal working group on FRP tanks, provided some feedback on the June meeting of that group, where it had discussed the issues raise in the UK’s paper. It noted that both the RID/ADR/ADN Joint Meeting and the IMO’s Sub-committee on Carriage of Cargoes and Containers (CCC) were in the process of considering the inclusion of the amendments on FRP tanks in the 22nd revised edition of the UN Model Regulations and that, therefore, it is vital that they have the most correct text

available. Some of the UK’s comments, the working group believed, should be adopted in a corrigendum to the 22nd revised edition of the UN Model Regulations; the Subcommittee concurred and adopted the amendments, which are mostly editorial in nature and clarify the intent of the provisions. MISCELLANEOUS PROPOSALS The UK proposed adding a Note to 1.1.1.7 to clarify the position regarding the use and interpretation of standards referenced in the Model Regulations. It had already done the same at the RID/ADR/ADN Joint Meeting (where the requirement is found in 1.1.5), after its proposal to replace the word ‘conflict’ with ‘contradict’ was turned down. The Sub-committee agreed that some clarification was useful and added a new Note to the end of 1.1.1.7: A standard provides details on how to meet the provisions of these Regulations and may include requirements in addition to those set out in these Regulations. The International Air Transport Association (IATA) was concerned that the recently

adopted provisions for articles containing dangerous goods, nos, allow for the inclusion of lithium batteries that are integral to the article’s shell but also provide for lithium cells or batteries that are pre-production prototypes or small production run units to be excluded. IATA felt this was erroneous, since the intent of special provision 310, which refers to such cells and batteries, is to cover their transport for the purposes of testing. It proposed a revision to 2.0.5.2 to remove them from scope. Most experts supported the intent of IATA’s proposal but not the solution offered, noting that further clarification on the precedence of classification and test requirements was needed. IATA will present a revised proposal at the next session. COSTHA arrived with a problem relating to the mixed loading of vehicles in 7.5.2.3 of ADR. It felt that the provisions are contradictory and, on investigation, found that this paragraph conflates two separate provisions from ADR prior to its restructuring in 2001, one relating only to Class 1 articles and the other to all other classes. The Working Group on Explosives had put itself on the case and was planning to further clarify the position. COSTHA said it would prepare a revised proposal once the Working Group has provided guidance. The Secretariat presented a paper that collated some suggestions for editorial amendments made by the Ad Hoc Working Group on the Harmonisation of RID/ADR/ADN with the UN Recommendations on the Transport of Dangerous Goods. These were mostly adopted by the Sub-committee and will appear as part of a corrigendum to the 22nd revised edition of the Model Regulations. IDGCA had been alerted, following the adoption of Chapter 6.9, to the need to address what the Model Regulations mean when they talk about “quality”, arguing that terms such as “quality system”, “quality assurance system”, “quality assurance programme” and “quality management system” have different

 IT WILL BE CLARIFIED THAT ROLLING HOOPS ON STEEL DRUMS ARE NOT MANDATORY

HCB MONTHLY | DECEMBER 2021

REGULATIONS 49

interpretations and understanding in different chapters. It proposed the establishment of an informal working group to analyse the requirements for quality systems in the Model Regulations and develop a unified understanding of the requirements. Most of the experts who spoke felt that there is currently no need to set up an informal working group on quality. The Sub-committee confirmed that the requirements on quality assurance shall be considered as mandatory. It was emphasised that this is crucial for the adoption of the provisions of the new Chapter 6.9 and also those of Chapter 6.2. Canada sought some clarification of the requirements for rolling hoops on steel drums and, in particular, 6.1.4.1.4, which says that drums with a capacity greater than 60 litres “shall, in general, have a least two expanded rolling hoops”. The use of “shall” implies that this is a mandatory requirement, which seems to be inconsistent with the objective of the performance-based packaging regime; in addition, what is meant by “in general”? Canada noted that similar clarification is needed in 6.1.4.2.3 and 6.1.4.3.3 for other metal drums. The International Confederation of Drum

Manufacturers (ICDM) welcomed Canada’s informal document and took the opportunity to review national requirements in Canada and the US, as compared to the UN text. It offered a solution that aligned more closely with the provisions in the US Hazardous Materials Regulations, by replacing “shall, in general, have” by “may have”. The Sub-committee’s general opinion was that the purpose of rolling hoops is to facilitate handling rather than to improve safety and recalled that there was no intention of making their use mandatory. Canada and ICDM will present a joint paper for the next session. EXTERNAL RELATIONS AND INTERPRETATION IMO provided the report on the 34th session of the Editorial & Technical Group working on the next round of amendments to the International Maritime Dangerous Goods (IMDG) Code, which will include those necessary to align with the 22nd revised edition of the UN Model Regulations. The only point of action for the Sub-committee was to consider replacing “and” by “or” in 6.4.24.4 of the IMDG Code, which had been discussed previously in relation to radioactive designs. The International Atomic Energy Agency (IAEA)

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was invited to confirm the proposed change. The Responsible Packaging Management Association of Southern Africa (RPMASA) and the International Confederation of Plastic Packaging Manufacturers (ICPP) proposed adding explanatory wording to the Guiding Principles to take account of the new entry for UN 3550 Cobalt dihydroxide powder. Some experts did support the intent of the idea but felt that more work was needed. Interested parties were invited to send comments to RPMASA. RPMASA also sought the inclusion of a definition for ‘toxic’, noting that it is often misconstrued as meaning ‘fatal’. Its paper noted a number of different definitions from other sources. The Sub-committee felt that toxic endpoints are clearly defined in the classification criteria and no further explanation is necessary; if the word is not well understood, particularly in developing nations, then more training and capacity building could help. Another informal document from RPMASA provided details on the implementation of dangerous goods regulations in South Africa, following discussions at the previous session when it was felt that it would be useful to have a consolidated database of regulations in

HCB MONTHLY | DECEMBER 2021

effect. The Sub-committee welcomed the information provided. The US presented a discussion paper on the possible merits of providing a system for giving unified interpretations of provisions contained in the UN Model Regulations, along the lines of those offered by ADR, the IMDG Code and the US Hazardous Materials Regulations. After an informal lunchtime discussion, the Sub-committee felt there was general support for the idea and that discussion should continue at the next session. There was also discussion of the work done to investigate and follow up on lessons learned from the catastrophic ammonium nitrate explosion in the port of Beirut in August 2020. RPMASA reported that the South African Department of Transport had established a task force along with a wide range of authorities and industry groups, which had delivered a set of key outcomes and will continue to work with a wider remit to encompass all classes of dangerous goods. It aims to strengthen relationships to fill gaps and reduce the replication of efforts, strengthen operational practices, improve access to quality training, and extend its experience to other countries in the region. RPMASA was keen to hear what others were

doing to help guide the programme. France noted that the Conseil général de l’environnement et du développement durable (CGEDD) had recently published a report on risk management related to the presence of ammonium nitrate in harbours and maritime ports. The Secretariat also reported that the UN ECE Convention on the Transboundary Effects of Industrial Accidents was planning a seminar on 14 December to look at the lessons learned, experiences and good practices of ammonium nitrate storage and handling, and related accident prevention, preparedness and response (further information on which can be found at https:// unece.org/environmental-policy/events/ unoecd-seminar-follow-2020-beirut-portexplosion-lessons-learned). The Sub-committee closed its 58th session with a tribute to Erwin Sigrist, who was due to retire in November 2021 and will no longer attend the meetings. The Sub-Committee thanked him for his contributions and wished him a long and happy retirement. The 59th session of the UN Sub-committee was scheduled to take place from 29 November to 8 December 2021; a report on that meeting will feature in the pages of HCB early in the new year.

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NOT OTHERWISE SPECIFIED KIDS WILL BE KIDS We all know how teenagers like to let off steam – indeed, some of us even remember doing so ourselves. So the annual jamboree of summer music festivals always draws an eager and excited crowd of youngsters (as well as some not so young). In recent years, though, there has been growing concern over the environmental footprint of such events, especially when accompanied by press photos of fields strewn with rubbish, empty bottles (many of them plastic) and discarded tents. But evidence is emerging that their environmental impact is even larger than that. Researchers at Bangor University in Wales have found that the Whitelake River, which runs through the site of the Glastonbury festival in Somerset, now contains extremely high levels of residue of cocaine and MDMA (aka Ecstacy). It seems that this problem is nothing new and, in fact, is not particular to the Glastonbury event. Indeed, the traces of the narcotics come from the urine discharged by festival-goers, something that happens at every music festival. Glastonbury’s location, though, means that wildlife downstream might be getting high. The leader of the Bangor study urged those who attend outdoor festivals to stop peeing in the rivers and to use official toilet facilities instead (good luck with that one). And, while some festivals have made efforts to reduce the amount of plastic generated, more needs to be done to raise awareness of drug and pharmaceutical waste – what the research leader termed “hidden yet devastating pollutants”. A spokesperson for the Glastonbury

HCB MONTHLY | DECEMBER 2021

festival said in response to the report: “Peeing on the land is something we will continue to strongly discourage at future festivals.” Fortunately for the rare eels living in the Whitelake River, the Covid pandemic gave them a couple of years off. FOLLOW THE FUEL And apologies to UK readers, who will undoubtedly have seen this story before. For others, it is a salutary reminder that half the population has an IQ of under 100. Back in September, the UK suffered a sudden and baseless shortage of gasoline and diesel at its filling stations. It was not that there was a shortage of fuel in the country, but that a surge in demand at the pumps meant that there were not enough tankers (and drivers) to get supplies to retail outlets. And, of course, once there was a shortage at the pumps, then there was a mad rush of motorists looking to get the car filled up. In no time at all there were queues of desperate drivers all round the country, spending hours waiting for a topup – or wasting what fuel they had by driving around to try and find a place to refuel. Indeed, things got so bad that some drivers, on spotting a road tanker, would follow it so they could get in line once they found where it was being delivered. That happened to one tanker driver, who left Wolverhampton for Northamptonshire and, on arrival, discovered 20 cars in line behind him. Except that he wasn’t carrying gasoline at all – and it wasn’t even a fuel tanker, but a bulk tanker carrying mortar to a building site. When the driver turned in, some of those who had been following him got quite irate, blaming him for taking them on a wild goose chase.

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HCB December 2021

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