Since 1972, the Himalayan kingdom of Bhutan has set its economic and social strategies not on the basis of maximising GDP but according to ‘gross national happiness’. Modernisation and development of the country has been planned to maintain its traditions and social cohesion, rather than to make the maximum profit for business owners.
That all sounds very admirable, though measuring happiness seems to be a rather subjective affair. More fundamentally, though, despite more than 45 years of concentrating on its population’s happiness, Bhutan scores 5.2 out of 10 according to the 2016 World Happiness Report, putting it in 84th place in the world, just behind China but ahead of Kyrgyzstan.
Traditional economic metrics seem to offer a firmer picture of the real world. What could be more objective than counting the aggregate output of all businesses and authorities in a country? Well, for one thing, individual corporations can –and often do – manipulate their accounts in order to reduce their tax liability, or to time one-off costs during a good year (or perhaps a year that is already bad).
Furthermore, the science of economics is founded on the idea that humans are rational beings and respond to market signals (price, especially) in a rational and predictable way. (I don’t know about you but I know plenty of people who could not in any way be described as ‘rational’.)
It seems that economists – some of them, anyway – are beginning to take note. Last December a group of academics posted 33 ‘theses’ to the door of the London School of Economics, in a conscious echo of Martin Luther’s actions on the door of All Saints’ Church in Wittenberg 500 years earlier. The LSE economists also challenged entrenched orthodoxy,
though whether their actions will lead to a reformation of the accepted tenets of economics remains to be seen.
There has, in recent years, been a growing acceptance in the business world of a broader range of metrics than the blunt profit-and-loss and assets-and-liabilities double entries. Many corporations, especially those active in areas of business that are being seen by consumers as ‘dirty’ (such as petrochemicals), are taking corporate social responsibility more seriously and include reporting of sustainability metrics in their annual reports. Many too are adopting the mantra of the ‘triple bottom line’ – People, Planet, Profits – though KPIs in this regard have not yet been established.
Nevertheless, at this time of year, when our inboxes are overflowing with annual results, it is instructive to see that most still focus on traditional financial items. Perhaps that is not surprising: business directors are beholden by law to their shareholders, not to the planet (nor even to their employees, suppliers or other more vaguely defined ‘stakeholders’).
So, we might ask, how have they done over the past year? It is, as might be expected, a mixed bag, but there are some broad trends. Capacity over-supply in many markets (tank containers, chemical tankers and VLGCs, for example) has held back earnings. Even independent storage terminals, normally buttressed against the worst of the market, have mostly had a desultory year.
All, though, are optimistic of an improvement in business conditions, if not this year then in 2019. Fundamentals seem to support that confidence. Perhaps we are at last coming to the end of a decade-long slump. That might make us all a little happier.
Peter Mackay
Cargo Media Ltd
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Peter Mackay
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Letter from the Editor 01 30 Years Ago 04
View from the Porch Swing 06
Into the wind
Vopak waits for the payoff 09 Bank on tanks
Port of Antwerp supports chemicals 13
Shades of Grays NuStar invests in Europe 16
Keep it simple…
Managing the terminal by hand 19
Free market movers
Mexico opens up to oil logistics 21
News bulletin – storage terminals 22
Timing is everything
LPG trades boost smaller ships 25 Catch the wave
LNG sector aims for supply balance 28
Heat through the ice
Latest in small-scale LNG carriers 29
Cleaner and greener
Developing an LNG bunkering network 30 Olefins from shale
Ethylene terminals boost for the US 31 News bulletin – gas shipping & storage 32
Growth perspective
HCB Monthly is published by Cargo Media Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect.
ISSN 2059-5735
Schütz adds to global IBC capacity 33 Built to last Thielmann’s approach to metal IBCs 34 Cute cubes
Greif adds innovative IBC designs 35
Annual listing of IBC manufaturers 36 News bulletin – industrial packaging 36
Good growth ahead
Agility assesses emerging markets 40
All hands together Bertschi invests for the future 42
Trifleet gets into gas tanks 45
A year apart
Stolt sees tank container upturn 46 News bulletin – tanks & logistics 48
Double deal in India
Brenntag expands presence in Asia 52 A bumper year
DKSH benefits from developing markets 53 From red to black
Nexeo enjoys the recovery 55 Man at the top
Univar finalises leadership succession 56 News bulletin – chemical distribution 58
Training courses 60
Learning by training 63 Conference diary 64
SAFETY Incident Log 67 Quis custodiet?
NTSB identifies inspection failings 69 Ask the expert… Chemtrec on propane 71
Next year’s model
Readying for 2019 in Europe 72 Street map for 2019
WP15 nears ADR completion 78
Not otherwise specified 84
Inaugural pharma logistics review
Annual chemical tanker survey Road tankers in Europe Rail regulations for 2019
Sponsored by M&S Logistics
The March 1988 issue of HCB was something of a potpourri of less frequently covered ground for the magazine. The (rather arty) front cover image signalled a feature on the transport of dangerous goods by air, while elsewhere we flagged up items on waste transport and express parcel services.
And while it did not relate to waste transport, our opening article looked at another issue with waste – the practice of dumping wastes at sea. At the time we said such a practice was “under fire” from the environmental lobby; today we can barely imagine that it was ever allowed. We reported that 2.1m tonnes of liquid industrial wastes, 1.6m tonnes of solid industrial waste and 5.0m tonnes of sewage sludge were being dumped into the North Sea alone every year, much of it emanating from the UK. All of this was to be prohibited as from the start of 1989 – unless there were no shore facilities to take the waste.
It is also nice to be reminded that all the work towards reducing discharges at sea was being done by the Scientific Group on Dumping.
In a similar vein, we reported in 1988 that Waste Management Inc, the largest waste disposal company in the US, had abandoned a six-year campaign to get permission to incinerate waste aboard specially designed ships off the US coast. That it intended to incinerate a range of toxic products, including dioxins and polychlorinated biphenyls, perhaps added to its difficulties in securing permission.
Sometimes, though, it is the smaller items in the back copies that make the most interesting reading. We reported thirty years ago, for
example, that BP Shipping had sold its stake in Stolt-Nielsen and that the Norwegian tanker owner’s plans for a stock listing in New York had had to be pulled in the face of ‘Black Monday’ in October 1987.
And Pakhoed had reached agreement with US-based Tenneco to buy Gebr Broere, operator of two small tank terminals in Rotterdam and a fleet of tank barges and coastal tankers. That deal increased profits at Pakhoed – owner of the Paktank International tank storage network – by around 33 per cent, profits that had already been boosted by the sale of its Pandair airfreight forwarding arm. It was perhaps the Broere acquisition more than anything that gave Pakhoed the financial muscle to arrange, some years later, a merger deal with its compatriot chemical logistics specialist Van Ommeren to form Vopak and – once the parties had figures out that it would make more sense to spin off their chemical distribution activities – Univar.
The March 1988 issue also featured some interesting follow-up information on historical incidents. Particularly distressing was the case of the freighter Cason, which suffered a fire in the stern not long after leaving Antwerp for Hong Kong with a mixed cargo that included thousands of drums of dangerous goods. Many of the crew abandoned ship, fearing that the fire would spread, but most of them drowned. The vessel ran aground near Cape Finisterre, Spain, leaving salvor Smit Tak with a difficult job in bad weather, made worse by a series of explosions in the holds. The salvage operation was ongoing at the time and “likely to take several more weeks”. Let’s hope the salvage award was worth the risk.
I mean no disrespect to World War II veterans when I say I fight the battle of the bulge on a regular basis. No capital b’s in my battle of the bulge, it’s just that I’m weight-challenged. That’s a term isn’t it, weight-challenged?
Politically correct, and polite, too? Aww, the heck with it, I’m fat. Some times I’m just a little overweight and other times I’m just plain fat. Hence, the bulge, and my battle against it.
My preferred way to lose weight is fun exercise. Running is slow and boring and not fun. Stumbling and tripping and getting discombobulated at the back of a rhythmic aerobics class is not fun. Trembling and shaking under tiny weights while musclebound youngsters yank around monstrously heavy barbells as if they were feathers is not fun. Fortunately, there are Thursday nights. Because I don’t think any of those involved
read this column, I can tell you how I think of it to myself: Fat Old Men’s Basketball. It’s not really fair nor accurate, as I am both the oldest and the heaviest, but they let me play, and some nights I’m not even the worst player on the court. And, it’s fun.
Afterward, a few of us go out and have some beers, and sometimes something to eat, at one of those places that only provide their waitresses a minimal amount of clothing. Hey, don’t get mad at me, it’s not my decision where we go. It’s overpriced, the food is medium-quality at best, but it’s nearby, smoke-free, and the beer is cold. And after 2½ hours of basketball, cold beer IS better beer.
Lately, though, at least on those Thursday nights I’m not on the road, it seems my basketball buddies have picked up a new habit.
Just when I thought that, with the exception of weddings, toasting had gone out of style, my buddies have started toasting everything. We toast when the beers arrive, again whenever another one of us arrives, again when anyone gets a refill or food, again when anyone says anything we all agree with, again at each early departure, and again and again and again. Kinda funny, and definitely overdone. But still enjoyable. So enjoyable that I may have slipped into the habit at times other than Thursday nights.
Prost, Slainte, and Here’s To:
• Every FIBC user who knows that a ‘permanent’ liner has an expiration date.
• Every person who puts an adhesive sticker with Proper Shipping Name and identification number onto a drum or box and knows they have not just applied a ‘label’.
• Everyone who knows there’s no such thing as a ‘UN-specification box’.
• Every purchasing agent who passes on closure instructions to the warehouse/manufacturing/ shipping personnel who need them.
• Middle management who understand that a commitment to safety and compliance can actually result in improved efficiency and lower costs.
• Students in my classes who have to put up with bad puns, ‘dad’ humor, and the occasional swear word.
• Peter Mackay for having the fortitude to publish this column.
• Any HCB reader who has read From the Porch Swing a second time.
• Any regulator who has endured a pointed question from me when addressing a conference.
• Any regulator who has endured a pointed question from Bob Richard when addressing a conference.
• DGAC, AHMP, COSTHA, SCHC, and Labelmaster for hosting conferences where I’ve learned something new.
• Labeline for inviting me to their Roadshow, where I hope to learn something else new.
• All the various companies that have allowed me to be a contract trainer and keep food on my table the past eight years.
• Regulators who provide outreach but refuse to train.
• IHMM for managing the CDGP certification.
• IHMM for managing the CDGT certification.
• Employees who insist on attempting to stay in compliance even when their bosses refuse to provide them appropriate tools.
• DGTA for welcoming me in as a peer.
• Regulators who take gratuitous abuse from the regulated, and remain calm and professional.
• Enforcement agents who can tell the difference between those trying to comply and those who aren’t, and act accordingly.
• Experts who are willing to truly listen, even when they think they already know the answer.
• Carriers who know the difference between hazard labels and GHS pictograms.
• Andy Altemos for years of excellent reports from UN meetings.
• Tom Ferguson for years of excellent reports from UN meetings.
• SDS authors who know that Section 14 can vary with quantity and with packaging and with mode and with destination and with usage.
• Regulators willing to consider the
possibility that ‘aerosol’ should have a harmonized meaning in transportation regulations worldwide.
• Jeff and Geoff, even though it appears that one of them doesn’t know the proper spelling of his own name.
• Anyone who knows that you can buy HazMat at a grocery store.
• CDGTs, who both know their stuff and how to deliver it.
• Everyone who keeps airplanes safe to fly.
• Everyone who keeps cargo from causing problems on boats.
• The doctor who, in order to prove that I’m healthy enough to have a Commercial Driver’s License with a HazMat endorsement, had to stick his finger in my…, um, uh, well, never mind this one.
• Everyone who thinks that if you have to package to a certain PG level that it’s ridiculous not to put that PG on the paperwork.
• Everyone who keeps the public safe from accidental releases of toxic gases and vapors.
• High Yellow and the Pack Badger for mentoring me.
• Anyone who has ever performed a 6.2 drop test outdoors.
• Morgan for not knowing he’s too young to give me good advice, and giving me good advice anyway.
• Anyone brave enough to write back disagreeing with one of my Porch Swing opinions.
• All DG professionals everywhere, who have prevented uncountable numbers of disasters from occurring.
Any day, every day, and all times of the day, are great for saluting the DG compliance that keeps us all safe. Cheers, Prosit, Salud, Gesondheid, Gan Bei, Na Zdravi, Proost, Sante, Kanpai, Noroc, Sveikata, Na Zdrowie, Saude, Skal, and Lechyd Da, to all DG professionals around the globe. Stay safe, my friends.
This is the latest in a series of musings from the porch swing of Gene Sanders, principal of Tampabased WE Train Consulting; telephone: (+1 813) 855 3855; email gene@wetrainconsulting.com.
ROYAL VOPAK, WHICH operates the most extensive network of independent tank storage facilities in the world, had a comparatively poor 2017, according to its annual financial results. Global revenues fell 3 per cent to €1.31bn and group operating profit, excluding exceptional items, was down 12 per cent at €490.4m.
Nevertheless, CEO Eelco Hoekstra remains upbeat. “Despite challenging market conditions, particularly in the oil markets, and following a strong performance in 2016, we had a satisfactory performance in 2017,” he says, although his comments do not suggest that there will be any immediate upturn: “We aim to identify and seize growth opportunities swiftly, ensure timely completion of projects under development and step up the global roll-out of our new digital systems. These steps will improve our financial performance by 2019.”
The company’s financial performance in 2018 is expected to be influenced by currency exchange movements – particularly in the US and Singapore dollars – and what Vopak describes as a “currently less favourable oil market structure”, which is impacting occupancy rates and price levels in the hub locations in which it has concentrated much of its storage capacity.
“As an infrastructure and service provider, we do not drive market choices but facilitate energy flows,” Hoekstra says, indicating the limited power the company has over the markets in which it operates.
The company has, though, made strategic decision that it believes will, in due course, allow it to benefit from changes in the market. Aside from ensuring that it has the right tank capacity in the major hubs, Vopak’s growth strategy is, Hoestra says, “directed towards
chemical (industrial) terminals and gas markets, while facilitating the increasing demand for fuel in emerging countries”.
In addition, Vopak plans to continue to explore new opportunities in the LNG market and to expand its role as a service provider in the LNG value chain.
Vopak has also taken strategic decisions regarding technology, Hoekstra says: “We are making substantial investments to deliver the full benefits of the digital transformation in future years to our customers and shareholders.”
Those strategic choices were on display throughout 2017. In developing markets, it twice announced expansions of its wholly owned Alemoa terminal in Brazil and also laid plans to expand its operations in South Africa, in partnership with Reatile.
Along with its partners, it announced a major expansion of the independent storage terminal in Pengerang, in southern Malaysia, which will help support development of the local refining and petrochemical cluster.
In gases, Vopak and AltaGas set up a joint venture to develop the Ridley Island Propane Export Terminal on the west coast »
of Canada; and in collaboration with Gasunie and Oiltanking it established a joint venture to look into the possibility of developing an LNG terminal in northern Germany.
Vopak’s strategy, formalised after intensive work in 2014, also saw it divest some holdings, including a share of its Eemshaven joint venture in the Netherlands, in which it will retain a 10 per cent holding, and the decommissioning of the small joint-venture Tianjin terminal in China.
During 2017 as a whole, Vopak increased its global storage capacity by 1.2m m3 to 35.9m m3. This does not include the associated Chemtank terminal in Saudi Arabia, which opened with a capacity of 284,000 m3, nor its operatorship of the Banyan Cavern Storage Services company in Singapore, which offers 990,000 m3 of underground storage. At the end of 2017 Vopak had another 3.1m m3 of capacity additions and expansions in various stages of development. Of that, only 231,000 m3 is due to be in service during 2018.
Since the end of 2017 Vopak has announced a 100,000-m3 expansion of its import/distribution terminal in Jakarta, Indonesia that it owns in a joint venture with PT AKR Corporindo. Vopak says this project will help handle the rapid increase in road fuel demand in the greater Jakarta area. Eight new tanks will be built, together with a new vapour recovery unit and in-line blending facilities. The project is due to come onstream in phases over the course of 2019. Current capacity is just over 250,000 m3
Vopak has also announced a plan to expand storage capacity at its Sebarok terminal in Singapore by 67,000 m3, primarily to handle marine gasoil in order to cement the position of the terminal as a bunkering hub following the introduction of the global sulphur cap in marine fuels that will enter into force on 1 January 2020.
In its home market of the Netherlands, which is the largest operating division, revenues dropped by 5 per cent last year to €471.6m. Operating profit excluding exceptional items was down 22 per cent at €140.5m. Vopak reports “the absence of a positive market sentiment for the storage and handling of oil products”, particularly for fuel oil as a result of the curtailment of Russian exports. In addition, the company suffered higher than usual out-of-service capacity at its chemical terminals. As a result of these factors, average occupancy fell from 95 per cent in 2016 to 90 per cent in 2017.
The Europe, Middle East and Africa (EMEA) division also suffered a fall in its figures, with revenues down 7 per cent at €176.3m and operating profit excluding exceptional items down 23 per cent at €61.9m. The decline largely reflects the divestment of its UK terminals in early 2016, which also impacted on average occupancy, which dropped from 96 per cent in 2016 to 92 per cent. The bottom line figure for the EMEA division was also affected by a €52.0m impairment charge on its Vopak EOS joint venture terminal in Estonia.
Vopak’s Asia division fared somewhat better, with revenues down by 4 per cent at €370.1m and operating profit excluding exceptional items down by 9 per cent at €210.3m. The decline reflects adverse currently exchange movements and lower occupancy rates at its Singapore terminals. Its joint venture and associate terminals in China also fared comparatively weakly, although Vopak says it now expects the Haiteng terminal to restart operations for its main customer in the middle of this year.
The only improvement in results was seen in the Americas division, where revenues were up 4 per cent at €286.0m and operating profit excluding exceptional items rose 9 per cent to €83.4m. Revenue growth would have been closer to 8 per cent had it not been for adverse currency exchange movements and for a fall in average occupancy from 91 per cent in 2016 to 89 per cent. Growth in this division was due primarily to better revenues in Brazil and Mexico and a full-year contribution from operations in Panama. HCB www.vopak.com
it has to offer, witness the many investments that we were able to welcome in 2017. In 2018 we seek to build further on the momentum of the previous year.”
Natie has built a new office building where it has centralised all its departments and this year is working on construction of 32,700 m3 of new stainless steel tankage in two tank pits, due in service at the end of the third quarter. The company is planning to continue to increase capacity through to 2022.
THE PORT OF Antwerp handled 73.1m tonnes of liquid bulk products last year, a 5.7 per cent increase over 2016. Much of this was driven by crude oil throughput, which rose by 50 per cent to 6.0m tonnes on the back of improved refinery economics. Throughput of oil derivatives, which account for nearly 75 per cent of total liquid bulk, continued to increase, rising 3.1 per cent to 52.9m tonnes.
The fourth quarter of 2017 saw the highest ever volume recorded passing through Antwerp. “Finishing the year with such strong growth figures gives us confidence for the future,” says Jacques Vandermeiren, CEO of the Antwerp Port Authority. “The port companies too remain firmly convinced of the advantages of Antwerp and the strengths that
Many of those investments focus on the expanding chemical cluster within the Antwerp area. Recognising the importance of connectivity in the sector, the Port has invested in supporting the industry, acquiring ownership during 2017 of the pipelines that link production facilities and chemical tank storage sites within the port to those in the nearby chemical clusters in Feluy and Geel.
Investment of that nature both supports the competitiveness of existing commercial operations within the port and encourages the construction of new facilities and the expansion of existing activities, both helping to generate additional employment and support the local economy.
Operators of independent tank storage capacity are alert to those opportunities, and the past year has seen some interesting developments within the port. ITC Rubis, for instance, completed construction of a new tank pit with two 10,000-m3 tanks. Noord
Other plans have been announced for future development. SEA-Invest, together with its client Total, is to build eight new 20,000-m3 tanks as part of a €100m project that also includes new loading and unloading bays and a pipeline link to the Total refinery. The Port of Antwerp will support this with dredging to increase the depth alongside the terminal to 15.5 metres. Vesta Terminals is also to expand storage capacity for refined products, with 150,000 m3 of tankage and two new barge berths due in service early in 2019.
There is also interest in the LPG sector. Oiltanking Antwerp Gas Terminal is building a significant new facility to handle LPG for Ineos and in September 2017 Antwerp Terminal and Processing Co broke ground on a new 30,000 m3 storage facility designed to handle ethane, butane, propane and derived products.
The Port of Antwerp says its role is to continue to stimulate new investments in tank storage, to optimise current infrastructure and to focus on new and emerging opportunities, such as LNG, for the long-term benefit of the community. In view of the volume of activity right now, that strategy is paying off. HCB www.portofantwerp.com
ANTWERP • THE PORT AUTHORITY’S SUPPORT IS HELPING THE CHEMICAL CLUSTER TO GROW, ATTRACTING MORE INVESTMENT IN LOGISTICS SERVICES
NUSTAR ENERGY HAS completed the first phase of a £25m investment project at its terminal in Grays, UK. A new jetty, capable of handling tankers of up to 125,000 dwt, received its first vessel on 4 January; a second jetty is due for completion early in the second quarter. NuStar says the new marine loading arms and additional shipping lines will ensure efficient discharge.
In addition, four new road loading gantries have been commissioned, with another one
being added in the second phase. On completion, the terminal will have seven retail and five separate commercial loading bays.
“This upgrade is a strategic investment for NuStar on the Thames and it will provide significant growth potential,” says David McLoughlin, vice-president and general manager of NuStar’s European operations. “Independent supply in the south-east of England is critical to the competitiveness of the region and our clients have been fully supportive of this investment, which will enable the terminal to receive larger cargoes at a significantly faster rate than previously possible.”
The Grays terminal is well located, close to London’s M25 orbital motorway, helping to minimise freight costs. It is one of six facilities in the UK operated by NuStar, which is headquartered in San Antonio, Texas and has an 81-strong network of terminals across the US, Canada, Mexico, the Caribbean and the Netherlands, as well as the UK, with an aggregate storage capacity of more than 96m bbl (15.3m m3).
While NuStar’s terminals in the North America support the developing business of moving shale oil and products around the region, those in the UK are largely designed to support independent fuel distributors, a sector that is only likely to become more significant in the future. NuStar’s head office is, McLoughlin says, highly supportive of that business and is continuing to invest, regarding its European holdings as a long-term position.
NuStar Energy’s 2017 financial results revealed full-year revenues of $1.81bn, up 3.3 per cent on the 2016 figure of $1.76bn. Net income slipped slightly, from $150.0m to $148.0m.
NuStar’s storage terminal operations recorded a 1.1 per cent rise in revenues to $617.0m and a 2.2 per cent increase in operating profit to $219.4m. Much of the increase can be ascribed to the Martin terminal acquisition in December 2016.
NuStar has also announced plans to merge NuStar Energy and NuStar GP Holdings, in an effort to streamline the financial structure in response to changing conditions in the MLP markets. The merger is expected to take effect in the second quarter. “As evidenced by these earnings results, the simplification and [distribution] reset are needed to allow NuStar to compete with the growing number of our peers who have already made such structural adjustments,” says Brad Barron, president and CEO of the partnership. “We are confident that the combination of the simplification and the reset will provide us with the financial strength and flexibility to compete for good projects and position us to increase unitholder value, as we have in the past, and for many years to come.” HCB nustarenergy.com
managing director Stephan Buhre explains: “The new Navigator guides the employee step by step through the entire process – including the clearance of a railcar train, for example. All the information that the employee needs is clearly laid out on the device, while any information that is not required is hidden.” This makes clearance work almost as easy as placing an order in an online shop.
‘SIMPLIFY YOUR BUSINESS’ – it’s a great idea in a complex world, but how does the average tank terminal operator go about it?
Those looking for a solution are invited to stop by the Implico stand at the StocExpo Europe event in Rotterdam later this month, where its technical staff will explain how Implico’s technologies and hardware can help.
The core of Implico’s integrated OpenTAS terminal management system is Navigator. This is used to control all of the logistics processes in the tank terminal, especially those involving goods movements with rail tank cars, ships or any other transport asset.
Implico has been working on making Navigator even more user-friendly, as
The other element Implico offers to improve the efficiency of the system is its latest handheld unit, which combines a rugged input device with a specially designed software package. This solution ensures that all operational activities at the terminal – such as railcar clearance on the platform – can be remotely integrated into the OpenTAS management system.
“Doing away with handwritten notes and manual data entry at a later stage makes the process simpler, quicker and more reliable,” says Implico. “The handheld solution has now been thoroughly tested in the field and is generating a lot of interest from the industry.”
Implico will also be showcasing its latest release of OpenTAS, its all-in-one solution
for terminal administration and automation, at StockExpo. This sixth release, designed specifically for refineries and tank terminals, features improved usability and support for the latest hardware, databases and operating systems; it also works with any kind of field equipment. The release also introduces a significantly more flexible reporting system.
Implico’s iGOS cloud-based service is also making its mark in the terminal sector, the company says. It describes it as “a powerful package of cloud solutions, data services, hosting and housing tailor-made for the downstream industry”. It helps ensure that customers always have the latest functionality at their fingertips, with a minimum of administrative effort. One UK terminal operator has been organising its ship loading process entirely out of the cloud since last year, the company says.
Implico also highlights the case of the MOL Group, which is now synchronising its primary supply processes in eleven countries to improve transparency and control options. During the StocExpo event, Radu Meteescu, project manager of group logistics at MOL, will give a talk on how the company uses cloud-based services to harmonise logistics and optimise business processes.
The Implico Group can be found on stand J10 at the StocExpo Europe event, which takes place from 20 to 22 March at the Ahoy exhibition centre in Rotterdam. More information can be found on the company’s website, www.implico.com. HCB
for refined products,” says Luis Farias, CEO of Avant Energy. “The energy reform has allowed new players such as Avant Energy to participate in open markets, which will allow increased efficiencies to the supply chain and ultimately benefit the consumer.”
Savage Companies is already investing in Querétaro, where it opened a new petroleum transload terminal earlier this year. The facility, also served by KCSM, is initially transferring product directly from rail tank cars into road tankers for local distribution but, following approvals, Savage plans to add tank storage and fixed facilities for highspeed rail unloading, product blending and truck loading.
“We’re excited to leverage our team’s experience operating transload facilities and rail operations to reduce the logistics costs of moving and managing refined petroleum products in Mexico,” says Kirk Aubry, president and CEO of Savage Companies.
“Our strategic location and capabilities, together with our team’s focus on providing safe, efficient and reliable service, will enable customers to have a trusted partner in getting their products to market on time and on budget.”
ENERGY REFORM LEGISLATION passed in 2013 aimed to improve the supply of critical fuels to Mexican consumers. That legislation culminates this year in a fully open downstream market, and a number of established players are intending to take advantage.
Among those ready to play a significant role is the US-based railroad Kansas City Southern, which has an established subsidiary in the country, Kansas City Southern de México (KCSM). Last month it announced a partnership with US logistics group Savage Companies and the local firm Avant Energy, backed by Mexican and US capital managed by Riverstone Holdings.
Avant Energy is planning to build a network of distribution terminals in the Bajio region of northern Mexico, linked by rail to a new marine terminal at the port of Altamira in the province of Tamaulipas. The marine terminal will be able to handle tankers of up to Panamax size and will have a storage capacity of up to 1.2m bbl (190,000 m3) for refined products. An inland terminal is planned at Querétaro, with direct connections to the KCSM network and capable of handling unit trains with a storage capacity of some 450,000 bbl. Construction of both terminals is expected to start in the third quarter of 2018 with commercial start-up planned by the end of 2019.
“We are proud to develop this unique infrastructure network that provides superior logistics solutions to connect the high growth Bajio region with the US Gulf Coast, the largest and most efficient market in the world
“We believe this terminal will facilitate additional refined product exports from US Gulf Coast refineries in support of Mexico energy reform. Savage’s experience and commitment to excellence gives us the confidence that this new refined products terminal will provide additional market options in support of Mexico’s new energy infrastructure,” adds Patrick J Ottensmeyer, president/CEO of KCS.
KCSM is also involved in a joint venture with Bulkmatic Transport designed to expand the capacity to move liquid fuels from the US to Mexico. The partners plan a unit train terminal at Salinas Victoria, near Monterrey. Full start-up is planned for later this year, including storage facilities to enhance delivery of retail fuels for the Monterrey metropolitan area. HCB www.avant.energy www.kcsouthern.com www.savageservices.com
MEXICO • DOWNSTREAM ENERGY LIBERALISATION IS BEGINNING TO DRAW IN INCREASING INVESTMENT FROM LOGISTICS PROVIDERS, WITH A NUMBER OF DEALS ANNOUNCED IN RECENT MONTHS
LBC Tank Terminals is to build a new terminal in Freeport, Texas to serve MEGlobal’s world-scale monoethylene glycol (MEG) plant. The new facility, LBC Freeport, will be an integrated part of MEGlobal’s supply chain and linked to the adjacent production unit, currently under construction at Oyster Creek. It will mainly handle MEG and diethylene glycol.
“We are delighted to enter into this agreement and partner with MEGlobal Americas on this project. With over 30 years of historical experience in handling glycols, this project opportunity fits our portfolio and investment risk models and is aligned with our business strategy to further optimise, build-out and expand our business,” says John Grimes, regional business president Americas at LBC Tank Terminals. “This project very much fits our expertise in constructing, managing and operating chemical terminals and we look forward to a successful business partnership with MEGlobal.”
Construction work has already started, with operational startup planned for 2019 to coincide with the commissioning of the new MEGlobal plant. The terminal will be located on land leased by LBC from MEGlobal
Americas, a wholly owned subsidiary of Kuwait-based Equate Petrochemical. Ethylene feedstock will be sourced from the neighbouring cracker owned by Dow Chemical, a shareholder in Equate. www.lbctt.com
Contanda is planning to build eight new storage tanks at its Grays Harbor terminal in Washington, US. The 1.1m bbl (175,000 m3) of new tankage responds to customer demand for biofuels and low-sulphur grades.
“We heard the community, met with our customers and developed a revised strategy involving the storage of clean products,” says GR ‘Jerry’ Cardillo, CEO of Contanda. “With the highest commitment to safety, our neighbours and the environment, we look forward to this potential expansion which will bring jobs, tax revenue and other economic benefits to the community for the long term.”
In 2013 Contanda (then operating as Westway) sought permission to expand the terminal to handle products other than methanol but this was turned down, largely due to local opposition to the storage and handling of crude oil. www.contanda.com
Magellan Midstream Partners has reported revenues of $2.5bn for the full year 2017, up from $2.2bn in 2016, with net income up 8.3% at $869.5m, despite a difficult fourth quarter that was impacted by the effects of Hurricane Harvey.
“Magellan’s business fundamentals remain strong and the company is well-positioned for future growth, with solid demand for our fee-based transportation and terminals services, a disciplined investment philosophy and an investment-grade financial profile,” says CEO Michael Mears.
During 2018 the company expects to complete 1.7m bbl of new tankage at the Seabrook Logistics joint venture and additional dock capacity at the Galena Park terminal. Construction is also ongoing at the joint venture marine terminal in Pasadena, due for 2019 commissioning, and Magellan is in discussion with customers for further tankage at the site.
Magellan is also reported to be planning a significant expansion of crude oil export capacity at its terminal in Corpus Christi, Texas. The company plans to add four new docks, increase the draft alongside and also replace the harbour bridge to provide extra air draft. The work, due for completion in 2020, will allow tankers up to VLCC size to load crude at a rate of more than 30,000 bbl/hour. magellanlp.com
Unabhängige Tanklogistik is undertaking an optimisation project at its Kiel terminal in northern Germany, adding a new unloading station for rail tank cars delivering heavy fuel oil. This can be adapted to handle gasoil as well, if required. An additional road tanker loading station is also planned.
UTG
UTG says the investment will result in higher unloading and loading capacities for the transhipment of petroleum, oil and lubricants. utg-tanklogistik.de
Zenith Energy has bought a bulk liquids storage terminal in Hamburg, Germany from Royal Dutch Shell. “This is a natural progression in our growth strategy,” Jeffrey R Armstrong, CEO of Zenith, says. “[It] underscores our commitment to expand into key European markets.”
The Hamburg terminal is situated on 55 ha of land and has a potential storage capacity of 480,000 m³. Its acquisition is the third major deal for Zenith in Europe, following its purchase of terminalling assets in Amsterdam from BP in 2016 and the Bantry Bay terminal in Ireland from Phillips 66 in 2015.
Zenith now operates more than 16m bbl of storage capacity, primarily for crude oil, petroleum products and vegoils, in The Netherlands, Colombia and Ireland. The company says it is “pursuing opportunities to buy, build and operate terminals primarily in Latin America, North America and Europe” and that, while it is currently focused on storage and distribution activities, it also expects to acquire and operate logistics assets that support its terminal activities, including pipelines, truck racks and barges.
Zenith’s recent expansion activity, which saw it enter the US market in December 2017 through the acquisition of Arc Logistics, has been underpinned by the support of equity investor Warburg Pincus, which in 2014 led a $600m line-of-equity commitment. www.zenithem.com
ATLHA Terminals has secured the rights to build a 75,000-m3 petroleum terminal in Duisburg, Germany. The operator says the facility, due to open in the second quarter of 2020, will mainly handle distillates, gasoline and gasoline components.
Amsterdam-based ATLHA was formed last year with the aim of offering terminalling and logistics services to major oil traders. It currently has a small terminal in southern Spain and is working on plans to build a 2.5m-m3 greenfield terminal in Europoort, Rotterdam. www.atlha.com
Switzerland-based Alpha Terminals, part of PSB Alpha AG, is planning a €250m investment in a new liquid bulk terminal in Vlissingen. Permit applications will be entered this year for a 500,000-m3 facility, capable of handling chemicals, oil products and new energy liquids, including ammonia. Startup is scheduled for 2020. www.psba.ch
Glencore has completed the sale of a 51 per cent interest in HG Storage International Ltd to HNA Innovation Finance. HGSI is a new vehicle set up to consolidate Glencore’s petroleum products storage and logistics businesses in strategic ports in Europe, Africa, the Middle East and the Americas.
The $775m transaction is being carried out in two phases as the transfer of the interest in Glencore’s three US sites is subject to regulatory approval. Glencore and HNA say they plan to expand the HGSI footprint through acquisition and organic growth. www.glencore.com
Australia-based investment firm Prostar Capital has acquired Socar Aurora Fujairah Terminal. The terminal currently has 350,000 m3 of tank storage capacity for refined products, with a further 315,000 m3 under construction and room for another 150,000 m3
Prostar already had a 40 per cent interest in the nearby Fujairah Oil Terminal. Socar Aurora was established as a joint venture between Azerbaijan’s state oil company, Socar, the local government and a trading house. www.prostarcapital.com
by 10 per cent year-on-year. In India too, the government’s clean energy programme is still increasing LPG connections across the country and demand from the automotive LPG sector is expected to grow as a result of recent tax changes.
Furthermore, while long-haul demand for VLGCs has been tempered somewhat by the shorter route from the US to Asia offered by the enlargement of the Panama Canal, the popularity of the route means that waiting times for transit have increased.
According to Dorian LPG, which has 22 VLGCs in its fleet, the orderbook of new vessels stood at some 13 per cent of the existing VLGC fleet at the start of 2018, with eight new ships due for delivery during the year and another 18 in 2019. It also notes that VLGCs of 20 years of age or more accounted for 14 per cent of the fleet. However, prospects for increased trade volumes have encouraged some owners to go back to the yards with new orders – Dorian says nine contracts were placed in the first two months of the year – and, unless the pace of scrapping picks up, there is a danger that the market will remain over-tonnaged even with trade growth.
GLOBAL SEABORNE LPG volumes reached 91.9m tonnes in 2017, an increase of 4.3 per cent on the 2016 figure. All of the additional material came from the US, where exports grew by 16 per cent to 29.0m tonnes, accounting for 33 per cent of global trade.
The casual observer might think that this would be good news for those involved in the transport of such gases, yet major vessel operators – particularly in the larger size segments – continue to struggle. Avance Gas, for example, which operates 14 mostly modern very large gas carriers (VLGCs) in the spot market, reported a 23 per cent fall in revenues last year, with average timecharter equivalent earnings down 42 per cent at $10,646/day. The company’s bottom line registered a loss of $54.8m and, while that was better than the previous year’s loss of $68.2m, the 2016 figure included impairment
losses of $53.3m to reflect a sharp fall in the value of its seagoing assets.
VLGC owners have pointed unanimously to a surplus of tonnage in the market as the reason for the persistent weakness in the market. The demand for LPG is certainly there: LPG deliveries into China grew by more than 10 per cent in 2017, Indian imports surpassed those of Japan for the first time ever, and even Indonesia, traditionally a major gas supplier, saw demand grow and is now sourcing some of its LPG needs from the Phillips 66 terminal in Freeport, Texas.
Demand is only likely to increase further. Two new propane dehydrogenation (PDH) units are due to open in China this year and, with natural gas in short supply in the country, methanol-to-propylene plants have higher input costs, pushing up the price of propylene and increasing PDH utilisation rates
Bearing in mind that VLGCs, if properly looked after, can easily trade up to or even past 25 years of age, a surge in scrapping purely on the basis of age seems unlikely. On the other hand, the new vessels joining the fleet are far more efficient and are also being designed to meet upcoming restrictions on sulphur oxide emissions.
Looking at the market in late 2017, Drewry Shipping Consultants said that the global LPG fleet expanded at an average rate of 17 per cent in 2015 and 2016, but that 2017 would witness only 9 per cent growth. It expects this to slow to 5 per cent in 2018 and 3 per cent in 2019, barring further orders.
On the basis of its forecasts, Drewry calculated the payback period for four segments of the market, concluding that fully pressurised ships offer the best returns.
A five-year old 3,500-m3 vessel will be paid off in eight years, it says, while in the Handysize segment – semi-refrigerated vessels of 15,000 m3 – the equivalent is 19 years. »
MARKETS • THERE HAS NEVER BEEN SO MUCH GAS AROUND, YET MANY LPG TANKER OWNERS CONTINUE TO STRUGGLE IN WEAK MARKETS. IS IT ALL ABOUT OVER-TONNAGING?
Epic Gas, which operates exclusively in the fully pressurised segment, concurs with Drewry’s assessment. In its financial statement for 2017 it noted that fourth quarter market rates for 3,500-m3 and 5,000m3 vessels were 30 per cent higher than a year earlier, while those for 7,500-m3 carriers were off by 1.9 per cent and those for 11,000m3 ships were essentially flat.
That market performance was a result largely of restrained ordering. Net fleet growth in the fully pressurised sector was 4.1 per cent in 2017, with eight deliveries and two demolitions (excluding Chinese-flagged ships operating exclusively in domestic trades). That figure was down on the 6.4 per cent growth in 2016 and Epic Gas expects the trend to continue.
As 2018 started there were only six vessels due for delivery in 2018 and 2019,
representing a 1.8 per cent increase in existing fleet capacity. This is, the company says, the lowest supply growth in any bulk commodity shipping sector. Moreover, in the existing fleet there are 11 ships aged 28 years or more; if these go for scrap – and the average age of recent demolition sales was 28.5 years – then it will more than compensate for the new deliveries.
Nor is there any significant fleet expansion planned in the smaller semi-refrigerated segment, which can compete with fully pressurised ships; only seven newbuildings were on order at the start of this year while there were 18 demolition candidates.
“We expect that higher operating costs for the older units and probably capital investments required by new legislation will compel owners to strongly consider scrapping these older ships,” Epic Gas says.
While growing US exports work to the benefit of VLGCs, they also help the pressurised segment and Epic Gas says the fourth quarter of 2017 saw a recovery in liftings. “Exports to
the Caribbean and Central America remained firm,” it says, noting that one of its ships made the first ever delivery of pressurised LPG to a new facility in Puerto Sandino, Nicaragua.
The market for small LPG tankers is also strong in Asia, with China the main driver. A 6.8 per cent year-on-year increase in propylene imports in the fourth quarter –despite the rise in PDH output – was behind much of the increased demand for ships and the consequent uptick in rates. Cargoes are moving from Thailand, the Philippines and Indonesia in greater number, adding to tonne-mile demand.
Epic Gas also notes that fully pressurised ships are piggybacking on the VLGC market, undertaking ship-to-ship transfers for final delivery into smaller ports. During 2017 the company carried out 413 such operations, more than double the number carried out in 2016. The market is particularly strong in Singapore, for supplies to Sri Lanka and Bangladesh, and also continues to develop in West Africa as new infrastructure is opening up. HCB
DREWRY SHIPPING CONSULTANTS says that 2018 is likely to be a poor time for LNG carrier operators. “Spot vessel availability will remain high during the first half of 2018, leading to below average charter rates,” says Shefali Shokeen, senior analyst at Drewry, in its latest LNG Forecaster. The consultant calculates that 69 newbuildings, with a total capacity of 11m m3, are due for delivery this year.
That bulge in the delivery schedule has been generated in part by slippage
in deliveries last year, when 16 of the 43 scheduled arrivals were pushed back, partly as a response to low freight rates during the first three quarters of the year.
That process is likely to be repeated in 2018, Drewry thinks, with perhaps only 45 new vessels with an aggregate capacity of 7.6m m3 likely to be delivered. That it still some 12 per cent of the current fleet, and demand growth is unlikely to grow as rapidly – Drewry calculates that LNG trade growth will be around 9 per cent. Nevertheless, that should be enough to prevent charter rates falling to the lows seen last year.
LNG demand is expected to pick up towards the end of 2018 as the pace of conversion
from coal-fired residential heating to gas-fired heating in China has been rapid and base level demand for LNG imports will thus be higher than in previous years.
The message Drewry is sending has been heard by industry. Paul Wogan, CEO of GasLog, said much the same when announcing the order of a 180,000-m3 carrier from Samsung Heavy Industries in January: “We have secured this vessel at a very attractive cost and she will be equipped with the latest propulsion and cargo containment technology which will result in highly competitive unit freight costs. The vessel is expected to deliver into a strong LNG shipping market which, according to our estimates, will be short of capacity by the winter of 2019/2020.”
Indeed, so confident is GasLog of the market position in late 2019 that it has placed the order without a charter already in place. It has, though, taken delivery of two 174,000m3 newbuildings from Korean yards already this year, with both vessels – GasLog Houston and GasLog Genoa – having gone onto longterm charters with Shell. Another two in this series are due for delivery this year and next.
TMS Cardiff Gas has also placed an order that will expand its existing LNG carrier fleet. It has contracted for one 174,000-m3 unit from Hyundai Heavy Industries for 2020 delivery with an option on a second vessel. The firm order has been placed against a seven-year charter to Total.
TMS says the order represents “the first in the company’s ‘X Carrier’ series”, which will expand the managed fleet to ten LNG carriers – it currently has six, along with four very large LPG carriers. The ‘X’ notation refers to the XDF propulsion system chosen for the newbuildings, which is a low-speed gas/diesel engine designed to meet emission standards below IMO Tier III limits.
Also going back to the yards is NYK, which has ordered a 174,000-m3 unit from Hyundai Samho for April 2020 delivery against a sevenyear charter with EDF LNG Shipping. The carrier will feature a GTT Mark III Flex cargo containment system and a WinGD X-DF dualfuel engine. HCB
ANTHONY VEDER’S LATEST newbuilding, Coral EnergICE, was named at a ceremony in Turku, Finland on 25 January. The naming was carried out by Aino-Maija Luukkonen, mayor of the town of Pori, north of Turku, which will be served by the new vessel.
The 18,000-m3 carrier was built in Germany by Neptun Werft and will operate under a long-term charter to Skangas, delivering LNG to Pori and to the Manga LNG terminal in Tornio, close to the Swedish border.
To do that, the new carrier has been built to Ice Class 1A Super standards, allowing it to break through 1-metre thick ice without icebreaker assistance and operate yearround in the northern Baltic Sea.
Coral EnergICE is the third LNG carrier we have delivered to our long-term customer Skangas in the past five years,” says Anthony Veder’s CEO, Jan Valkier. “The high-tech vessel is capable of serving the northern Finnish harbour of Tornio all year around, even when temperatures reach as low as -25˚C.”
The new vessel also features a number of other innovations designed to provide operational and ergonomic benefits. The engine is powerful enough to break through ice and a cap on deck protects equipment that would otherwise be exposed and subject to icing. Additional shelters have also been built, with warmer platforms for the crew’s feet, as well
as heat tracing on the vessel doors to ensure they will always open, regardless of the external temperature.
In addition, Valkier says: “To ensure that it’s a comfortable and friendly place for our crew to work, we engaged an ergonomic engineer to look closely at the accommodation design. I am extremely proud of the end result.”
“The new vessel’s design is based on Coral Energy, enhanced with technological innovations and construction adaptations for extreme cold weather conditions, thereby giving her the 1A Super ice class classification,” says Raimon Strunck, managing director of Neptun Werft.
The vessel’s construction was funded with the first sustainable shipping loan and is
fully certified in accordance with the Clean Shipping Index Guidelines by Bureau Veritas. It uses LNG boil-off gas as a fuel for both its main and auxiliary engines, making it fully compliant with future emission regulations.
Coral EnergICE represents a further step in the ongoing contractual links between Anthony Veder and Skangas, which is 70 per cent owned by the Finnish gas supplier Gasum and is a leading supplier of LNG in the Nordic markets. “The new vessel supports our goal to develop the Nordic LNG infrastructure and gas market,” says Kimmo Rahkamo, Skangas CEO. “This way, we can offer the end users in the maritime and industry sectors an even more competitive product.”
Skangas has been using Anthony Veder vessels since 2012, with charters on Coral Energy and Coral Anthelia for the distribution of LNG. Last year it took the specially designed Coralius, a 5,800-m3 LNG bunkering vessel, on charter from Veder and co-owner Sirius Shipping, to enhance its maritime distribution network in the Baltic and North Seas. Another Veder-owned LNG carrier, Coral Methane (7,550 m3, 2009), is currently undergoing modification to work as an LNG bunkering vessel on behalf of Shell. HCB www.anthonyveder.com www.skangas.com
NORTHERN EUROPE CONTINUES to lead the way in the development of an LNG bunkering network to feed the growing fleet of LNGfuelled ships operating in regional trades. LNG is seen not only as an appropriate fuel source for isolated communities and industrial users in northern Scandinavia, but also as a relatively clean-burning fuel for goods vehicles and coastal vessels.
LNG is also readily available in the region; global supply is good and there are several large-scale import locations in France, Belgium, the Netherlands, Poland and the UK, as well as a major liquefaction facility in northern Norway. Furthermore, the presence of small-scale fuelling facilities and LNG carriers
creates an integrated supply chain, enhancing the efficiency of delivery to all end users.
A number of new projects are moving ahead. Skangas and Swedegas last month began construction of an LNG bunkering facility in the Energy Port in Gotheburg, Sweden, which is due in service later this year. It will allow LNG bunkering during cargo operations and also supply off-grid consumers by tankers or rail tank cars.
“LNG-fuelled vessels are accounting for a growing proportion of the calls at the Port of Gothenburg,” says Jill Söderwall, head of commercial operations at the Energy Port. “This facility will reinforce the Port of Gothenburg as a sustainable Scandinavian freight hub, and is a crucial step towards achieving a more sustainable shipping sector.”
In Amsterdam, meanwhile, Titan LNG has signed a long-term contract for the ‘home’ location of its bunkering pontoon, FlexFueler001. Due in service before the end
of 2018, the pontoon will be the first of its kind in Europe. Koen Overtoom, CEO of the Port of Amsterdam, comments: “We believe in LNG as a shipping fuel and Titan LNG’s solution fits very well with our strategic focus on becoming a sustainable port and our transition to renewable energy. We strive to connect the port seamlessly to the fast growing metropolitan area, and lowering pollution is a top priority!”
The bunkering pontoon will be located in America Harbour and will be supplied by both vessels and road tankers, making it independent of large-scale terminals. The water depth is sufficient to allow seagoing vessels to take on bunkers during cargo operations.
The move to LNG may also come to Germany; Gasunie, Vopak and Oiltanking have teamed up on a plan to develop a large-scale import terminal, probably in Brunsbüttel, which will both diversify Germany’s supplies of natural gas imports and create a platform for the supply of LNG for commercial vehicles and ships. The partners have launched an open season to gauge likely demand levels and aim to make a final investment decision next year.
But establishing an LNG facility, even on a small scale, is not a straightforward matter, particularly for port authorities. A useful guidance document has recently been published by the European Maritime Safety Agency (EMSA), within the context of the European Sustainable Shipping Forum. It makes clear the benefits of LNG as a marine fuel, particularly in light of the mandatory reduction in sulphur oxides emissions from ships, and lays out the various technical and safety considerations that must be taken into account when planning for an LNG bunkering facility.
The document, Guidance on LNG Bunkering to Port Authorities and Administrations, offers support for authorities involved in such developments, with the aim of ensuring that the safe supply of LNG, established by industry over several decades, is not compromised in the rush to install new bunkering stations. The guidance document can be freely downloaded from the EMSA website at http://emsa.europa.eu/emsadocuments/latest.html. HCB
ENTERPRISE PRODUCTS PARTNERS and Navigator Holdings have formed a 50/50 joint venture to build a new ethylene export facility on the US Gulf. The partners say the new terminal, due in service early in 2020, will be able to handle around 1m tonnes of ethylene a year and will be equipped to store up to 30,000 tonnes in refrigerated tanks to be built on the site.
Enterprise and Navigator first announced the plan in July 2017, subject to interest from potential exporters. They now report that the terminal will be supported by long-term contracts with anchor customers that will include Flint Hills Resources and “a major Japanese trading company”.
“This new ethylene export terminal will support the growing production of ethylene on the US Gulf Coast by providing access to international markets,” says AJ ‘Jim’ Teague, CEO of Enterprise’s general partner. “By 2021, the petrochemical industry is expected to expand aggregate ethylene production capacity in Texas and Louisiana by nearly 50 per cent to approximately 90 billion pounds (41m tonnes) per year. The resulting rapid growth in the supply of US ethylene, combined with increased demand from international markets, like Asia, creates an ideal scenario in which markets abroad are able to diversify their supply by accessing cost-advantaged feedstocks made possible by the shale revolution in the US.”
David Butters, CEO of Navigator Gas, adds: “The strong, broad interest shown by
prospective terminal customers during the initial marketing phase has reinforced our conviction on the critical need for an ethylene export terminal. It is clear that domestic producers value the opportunity to access global markets and international consumers consider the US as a reliable and affordable source of ethylene to fuel their petrochemical manufacturing in Europe and the Far East. We are delighted to work with Enterprise on this project that promises to meet the needs of our customers and enables us to provide the seaborne transportation of the ethylene from producer to customer.”
The location and final investment decisions for the terminal are subject to reaching acceptable arrangements with local taxing
authorities. It will also be sited to maximise logistics efficiencies, taking into account the location of ethylene production and the availability of existing pipeline connections.
“This export terminal will also offer diversification opportunities for domestic petrochemical producers who will not have to rely solely on the export market for derivatives like polyethylene,” says Teague. “We are very pleased to work with Navigator Gas in efforts to commercialise an industry-leading ethylene marine export terminal that offers unsurpassed connectivity to ethylene producers and pipeline and storage infrastructure.”
Enterprise is also developing a highcapacity ethylene salt dome storage facility at its complex in Mont Belvieu, Texas. This storage facility will have a capacity of approximately 600m pounds (27,200 tonnes) with an injection/withdrawal rate of 420,000 pounds (190 tonnes) per hour. The storage facility is expected to begin service in the first quarter of 2019 and will be designed to enable connections to the eight ethylene pipelines within a half-mile of the Enterprise ethylene storage system.
In addition, Enterprise is building a new ethylene pipeline from Mont Belvieu to Bayport, Texas, which is scheduled to begin service in 2020. HCB enterpriseproducts.com www.navigatorgas.com
Dorian LPG has reported revenues of $44.5m for the quarter ended 31 December 2017, up from $35.7m a year earlier, with average daily timecharter equivalent earnings up 28 per cent at $22,833. Net income came in at $1.7m, compared to a net loss of $2.1m for the same period 2017.
“The performance of our fleet reflects the strength of our commercial and technical management platforms as well as the premium our modern ships earn compared to older ships,” says CEO John Hadjipateras. “We have taken further steps to ensure the continued robustness of our balance sheet through a second sale and bareboat charter arrangement. We are cautiously optimistic about the outlook for the LPG tanker sector as industry fundamentals continue to improve.” www.dorianlpg.com
DryShips is planning to spin off its gas tanker operation, Gas Ships Ltd, as a standalone company and has filed a registration statement with the US Securities & Exchange
Commission. Assuming the move goes through, DryShips will retain a 51 per cent stake in Gas Ships, which currently operates four modern VLGCs.
George Economou, DryShips’ chairman/ CEO, comments: “The filing of the Form F-1 Registration Statement is an important step in the process of establishing Gas Ships Limited as a new, standalone company with its own strategic focus, independence and priorities. We believe that this business is well-positioned for success as a separate company.” www.dryships.com
Avance Gas Holding has reported operating revenue of $110.9m for the full year 2017, down from $143.9m in 2016, leading to an operating loss of $30.7m. This compares to a loss of $48.4m in 2016, which was inflated by impairment charges of $53.3m.
Avance says it noted a “marginal improvement” in the VLGC market in the fourth quarter of 2017 and believes the market has now bottomed out. www.avancegas.com
Epic Gas has reported revenues of $139.5m for the full year 2017, up 8 per cent year-on-year, with adjusted EBITDA up 14 per cent at $29.4m. Timecharter equivalent revenues for Epic’s fully pressurised LPG tankers averaged $8,210/day, up 1 per cent on the 2016 figure. Rates were particularly strong for smaller vessels on the back of continued increases in global seaborne LPG volumes.
During the course of 2017 Epic Gas took delivery of three newbuildings from Japanese yards, taking its fleet up to 41 ships in the water. Since the end of the year it has reached agreement to sell its oldest ship, Epic St John (5,000 m3, 1998), a deal that it expected to go through this month.
www.epic-gas.com
The first months of 2018 have seen renewed interest in very large gas carrier (VLGC) construction, with several orders being placed. This confidence is based on forecasts of a tight market emerging from 2020 onwards.
Hyundai Heavy Industries is building two 79,500-m3 units for late 2019 delivery, reportedly for the account of Trafigura, at a price of around $70m each. Hyundai has also won an order for three 84,000-m3 carriers from Kuwait Oil Tanker Co (KOTC), with delivery starting in 2019. Brokers quote a price of around $71m per ship. KOTC had been looking to place the order for some time as part of its fleet renewal efforts.
Japanese yards are still in the market, with Kawasaki Heavy Industries winning orders for an 82,000-m3 tanker from Mitsui OSK Lines for 2020 delivery and a similar vessel for late 2019 delivery to Phoenix Tankers.
China’s Jiangnan Shipyard, meanwhile, won a contract for two 84,000-m3 VLGCs for delivery in first half 2020 from Hong Kong-based Fortune Oil, through its newly established joint venture China Gas Fortune Marine Transportation.
SCHÜTZ HAS SIGNED an agreement to acquire its Mexican licensee, Envases y Laminados (ELSA). Founded in 1960, ELSA, Schütz says, is the country’s “leading supplier of rigid industrial packaging”, producing a wide range of designs, including steel, plastics and fibre drums and assorted smaller plastics systems across six different manufacturing plants. Moreover, since 1997 it has operated as a Schütz licensee, producing Schütz-designed composite intermediate bulk containers (IBCs) and plastics drums. ELSA was also the first Mexican producer of industrial packagings to achieve ISO 9001:1994 certification and in 2012 received FSSC 22000 certification for the production of plastics drums and IBCs.
“We are excited about this unique opportunity to be present in Mexico with a fully owned subsidiary,” says Schütz CEO Roland Strassburger. “ELSA is well established and Mexico offers interesting growth perspectives for our industry as our customers perceive Mexico to be an integral part of the NAFTA region. In addition, we feel very much honoured being entrusted by Carlos Mata with leading his company, which he has built up to be the market leader in Mexico over the last decades, into the future.”
Commenting on the news, Mata, ELSA’s sole manager and owner and who now intends to retire, states: “I am extremely pleased to pass my company on to Schütz, a family-owned business like ELSA, which stands for high-quality products and services worldwide, a long-term business approach and solid financials enabling a strong further development of ELSA in the years to come.”
Headquartered in Selters, near Frankfurt, Schütz operates a global production network spanning all six inhabited continents, most recently opening a new IBC production and reconditioning plant in the Polish town of Zory. Located close to the Czech and Slovakian borders, the 23,000-m2 facility is well served by “excellent infrastructure” linking it not only to the rest of Poland, but also to Austria, Hungary, Romania, Ukraine and Russia. “The factory, which was specifically built as a gateway to central Europe, enables even faster collections and more flexible services thanks to shorter distances,” the company reveals.
Over in Spain, meanwhile, Schütz has executed “one of the largest investments in the company’s history” at its drum and IBC plant in Tarragona. “The investments include the complete conversion and expansion of internal infrastructure, a wide range of new equipment, extensive modernisation of machines and facilities and the complete reorganisation of production and logistics processes to optimise efficiency,” Schütz reports.
“The centrepiece of the current largescale renewal and expansion programme is IBC production and all associated process areas. The entire hall complex for container production was completely redesigned and modernised,” it continues, adding that “the entire existing assembly line” has now been replaced with a cutting-edge new system.
“This,” it says, “has significantly increased the degree of automation in assembly, leading to increased process reliability and productivity as well as improving workplace ergonomics for our employees.”
Furthermore, Schütz has also now installed “a state-of-the-art, six-layer blow-moulding system” for the production of Ex containers, EVOH containers and IBC inner bottles with sight strips. “Building a completely new, fully automatic conveyor, storage and logistics system, including intermediate storage for inner bottles, on an area of more than 1,000 m2 also further increases the performance and flexibility of our production operations,” it states. HCB www.schuetz.net
GERMANY-HEADQUARTERED METAL intermediate bulk container (IBC) manufacturer Thielmann reports a growing market for its high-performance units. This growth, it reports, is due largely to stricter safety regulations, citing, for example, the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation as having “a significant impact on the chemical sector of the IBC market”.
“What has changed [as a result of REACH] is that responsibility has shifted from public authorities to industry for assessing and managing the risks posed by chemicals to their users, human health, the environment and the wider public,” the company explains.
“The legislation impacts the packaging industry in that the right containers must be selected for each chemical product. The container must suit the service conditions and demands of the application in order to keep intact the characteristics of the chemical it contains; the material the container is made out of must be aseptic, highly resistant to corrosion and able to guarantee a long lifespan in heavy use conditions.”
“Thielmann top-quality, high-grade stainless steel containers fulfil all these requirements; they are also inert, hygienic, highly resistant and tough enough to transport many dangerous chemicals without posing a risk to their handlers/users or the environment,” it says, noting that its metal IBCs can have a service life of 20 years or more if properly maintained. Furthermore, in addition to designing and manufacturing units,
Thielmann also has the expertise to arrange the relevant testing required to ensure safe operation, being fully qualified and approved to undertake all necessary repairs, refurbishment, re-equipping and certification.
“Thielmann are the experts in packaging for hazardous goods in the chemical industry – we are selling safety, not just IBCs,” it says. “Thielmann IBCs for hazardous goods are subject to tests and validations to comply with the Pressure Equipment Directive (PED), UN/ADR approval for dangerous goods or any other regulation that the customer has to fulfil.” Indeed, its various designs also boast CE, ATEX and ASME approvals. But that’s not all.
“UN-approved IBCs must be checked and reapproved after 2.5 years by a Qualified Person and after five years by an Approved Testing and Inspection Body,” the company says. “Thielmann is such an Approved Testing and Inspection Body for IBCs. Not every company is allowed to run these approvals. It allows our customers to get the maximum service life out of their IBCs without compromising on quality or safety.”
“Thielmann is a one-stop shop for stainless steel IBCs,” it continues. “Across our product range we have a solution to meet every requirement for both liquid [in filling capacities of between 500 and 3,000 litres] and bulk materials. If the exact product doesn’t already exist in our product range, we are also an engineering house and offer a customised IBC service. Our IBCs can be built to spec with customised volume, dimensions, valves and fittings, tank and frame materials and special features, such as integrated heating and cooling devices.”
Operating a network of locations spanning Germany, the UK, Spain, Switzerland, the US and Mexico, Thielmann also manufactures kegs, pressure vessels, gas and LPG cylinders and ISO tank containers and is able to draw on more than 275 years’ experience in the field of container production and use. “Thielmann is not in the market of applying a one-size-fits-all solution for hazardous chemicals,” it says. “We are closely integrated in the process of meeting our customer’s individual requirements.” HCB www.thielmann.com
THE PAST SIX years have seen USheadquartered Greif investing heavily in its production of intermediate bulk containers (IBCs). Having previously only produced GCube blow-moulded composite units in Italy and Germany, it now also manufactures them in the US, Russia, Sweden, Israel, China, the Netherlands and Spain, with further locations likely to be added in the future.
Similarly, the company also continues to enhance its IBC product portfolio, developing, for example, what EMEA IBC and plastic product manager Luca Bettoni describes as “the first IBC for Ex applications using
antistatic additives directly in the bottle” and which therefore does away with the need for external earthing elements.
“Greif offers a safer IBC thanks to its strong cages, which are able to resist 30 per cent more in stacking compared to the traditional IBCs on the market. Our unique solution of a universally compatible butterfly valve is able to offer one valve suitable for all kinds of liquids with a huge reduction in IBC configurations used by our customers,” he states, noting that the company has “experienced reductions of between 25 and 50 per cent of item codes” as a result.
Moreover, the GCube also offers an easier customer handling experience as “no extra tools”, such as screwdrivers or cutters, are needed to empty it. “Every sealing is easily removable by hand, helping our customers
and offering a higher percentage or reusable IBCs.”
Greif also focuses on achieving the highest levels of cleanliness and hygiene to meet the demanding needs of the food and pharma sectors, both in terms of complete GCubes and GCube spare parts.“Our brand-new production site in Ede [in the Netherlands], a state-of-the-art plant for the production of food containers and the only one with blow-moulders running in clean rooms, is an example of the strong investments by Greif to satisfy the highest levels of food sector requirements.”
In terms of new products, Greif has also unveiled the GCube Shield, “a new concept of IBC” able to reduce the permeation of gases through the IBC bottle. Of particular boon to shippers from the agrochemical, paint, food and flavour and fragrances sectors, the GCube Shield features a threelayer coextruded design that, due to a “a specific mix” of polymers in the middle layer of the bottle’s wall, “offers equal performance against permeation as sixlayer or fluorinated IBCs”.
Reduced permeation, Bettoni observes, “could mean a longer shelf life and a better effectiveness” of the unit’s filling product. However, that is certainly not the only benefit offered by the new unit, with the GCube Shield also boasting “full recyclability” compared to “partly recyclable” six-layer or fluorinated alternatives. Moreover, these new units can be readily supplied with short lead times as they are “available in every country” where Greif produces GCubes.
“The GCube life-cycle is fully supported by the EarthMinded network, a widespread structure of participating reconditioning sites able to offer, in every region of the world. We’re able to offer the simple collection of used IBCs and collection for re-use through washing or rebottling,” he explains, noting that EarthMinded can also provide users with important environmental impact data. “This helps our customers measure their efforts to achieve their environmental targets,” Bettoni states. HCB www.greif.com
Finland’s Kaucon, a producer of UN-approved metal intermediate bulk containers (IBCs), is currently in the process of enhancing the layout of its manufacturing plant in Kontiolahti. It also has a number of new, as-to-be-announced IBC products on its drawing boards.
Describing itself as a “flexible, smart and reliable” partner to its customers, Kaucon is also further developing its internal management. Reporting generally stable market conditions, the company does not anticipate any “major changes” to this for the foreseeable future. However, while it says that the “chemical industry’s negative image restricts growth”, Kaucon notes that the improving economic situation is encouraging companies to make new investments that are of benefit to IBC producers.
In addition to manufacturing units primarily for the transport of hazardous waste and fuels, Kaucon also provides customers with inspection and maintenance services, being fully approved to do so by the Finnish Safety and Chemicals
Argentina Industrias Termoplasticas
Argentinas (+54 2323) 497 596
Australia Dex Australia (+61 2) 9638 4071
Schütz (+61 8) 9336 2688
Trans-Tainer (+61 8) 8363 9799
VIP Packaging (+61 2) 9876 4822
Belgium Linpac Allibert (+32 6) 789 3790
Brazil Mauser do Brasil (+55 11) 2168 0064
Schütz Vasitex (+55 11) 2436 3760
Canada Hawman Container (+1 705) 424 2196
Promens (+1 705) 324 6701
China Fanshun Mauser (+86 21) 5098 9982
Greif (+86 21) 6712 0088
Schütz (+86 21) 6712 0777
Denmark Horsens Emballage (+45) 7560 2744
Promens (+45) 4497 5133
Finland Finncont (+358 3) 485 411
France Linpac Allibert (+33 1) 4120 0995
Mauser France (+33 1) 4940 7800
Promens (+33 3) 8969 2000
Schütz (+33 1) 6980 5000
Sotralentz (+33 3) 8801 6800
Werit (+33 3) 885 41020
Germany Auer Packaging (+49 8075) 9133 320
Greif (+49 2234) 701 5265
Hessentaler Container (+49 791) 40700
Linpac Allibert (+49 6108) 979 116
MaschioPack (+49 2431) 948 480
Mauser (+49 2232) 781 000
Promens (+49 6205) 20990
Rikutec (+49 2681) 954 618
Schütz (+49 2626) 770
Werit (+49 2681) 80701
India Pyramid Technoplast (+91 22) 427 61500
Sintex Industries (+91 2) 688 9449
Time Technoplast (+91 22) 2857 0302
Indonesia Novo Complast (+62 21) 3333 7510
Schütz (+62 21) 2961 8080
Ireland Schütz (+353) 963 3044
Israel Mobilak (+972 8) 852 1580
Italy Greif (+39 035) 499 4611
Linpac Allibert (+39 011) 397 5759
MaschioPack (+39 02) 9096 9218
Mauser Italia (+39 02) 909 3651
Schütz (+39 030) 977 1611
Japan Kodama Plastics (+81 584) 274 141
Sanko (+81 58) 327 3596
Schütz (+81 463) 821 010
Malaysia ISC (+60 3) 3168 1481
Q Pack Industries (+60 3) 8011 2129
Schütz (+60 6) 798 0899
Mexico Mauser Int. Mexico (+52 722) 216 0875
Schütz ELSA (+52 55) 5888 0899
Netherlands Greif (+31 294) 238 911
Linpac Allibert (+32 67) 893790
Mauser (+31 162) 483700
Schütz (+31 168) 334 600
Agency (Tukes). “We inspect both Kaucon and other manufacturers’ IBCs,” the company states, adding that servicing and inspection can be undertaken on its own premises or on-site at its customers’ facilities as needed. www.kaucon.com
Netherlands-headquartered CurTec has expanded its range of UN-approved plastics drums with the launch of new XXL Nestable units with filling capacities of 120 and 150 litres. “Last year, a large pharma player reached out to CurTec to develop a new package for high end pharmaceuticals,” the company reports. “They were looking for large capacity containers that would reduce the cost of storing empties. Naturally, CurTec accepted the challenge and came up with a fitting solution.”
As well as helping shippers to reduce the cost of shipping and storing empty units, the new XXL Nestable drums also feature an improved the quarter-turn screw lid closure. “Closing and opening a drum is now more easy, safe and straightforward,” it says. www.curtec.com
US-headquartered Snyder Industries has expanded its range of metal, composite and all-plastics intermediate bulk container (IBCs) with the launch of a new doublewalled steel unit. This new design, the company says, offers “more flexibility with Spill Prevention Control and Countermeasure (SPCC) programmes by replacing stationary secondary basins or fixed-wall dike containment with an innovative portable double-wall design with sealed inner and outer steel tanks with capacity to hold the required containment capacity between the walls”.
Norway Schütz (+47) 6282 2750
Poland Mauser (+48 513) 347050
Promens (+48 22) 779 4014
Schütz (+48 22) 846 3405
Werit (+48 71) 336 2595
Portugal Linpac Allibert (+34 93) 574 3529
Teka Containers (+351 234) 329 500
Russia Greif (+7 495) 933 5947
South Africa NCG CSSA (+27 31) 7009 572
Paradigm Packaging (+27 31) 791 0365
South Korea Clover Chemical (+82 2) 735 7575
DongWoo IBC Korea (+82 31) 671 3353
Spain Greif (+35 193) 970 8154
Linpac Allibert (+34 93) 574 3529
MaschioPack Iberica (+34 977) 524 318
Mauser Reyde Iberica (+34 93) 478 7600
Schütz (+34 902) 160 693
Werit (+34 938) 402 256
Sweden Greif (+46 346) 714 600
Taiwan Yung Hsin Contain Ind. (+886 3) 5978 918
Thailand Pack Delta (+66 2705) 41002
Schütz (+66 330) 699 11
Turkey Deren Ambalaj (+90 216) 423 5555
Mauser Turkey (+90 262) 655 6060
UK Francis Ward (+44 1274) 707 030
Gem Plastics (+44 191) 501 4800
Linpac Allibert (+44 121) 506 0100
Mailbox Mouldings (+44 161) 330 5577
Matcon (+44 1608) 651 666
Mauser UK (+44 1706) 754 980
PD Rotomouldings (+44 1691) 659 905
Schütz UK (+44 1909) 478 863
Solitec (+44 1453) 828 727
Werit (+44 161) 776 1414
USA Granger Plastics (+1 513) 424 1955
Greif (+1 740) 549 6000
Hoover CS North America (+1 800) 844 8683
IBC North America (+1 248) 625 8700
MaschioPack North America (+1 843) 290 7811
Mauser (+1 908) 203 9500
Poly Processing (+1 866) 590 6845
Promens (+1 630) 293 0303
Schütz (+1 908) 526 6161
Australia Matcon Pacific (+71 2) 9892 4822
Belgium Linpac Allibert (+32 6) 789 3790
Canada Promens (+1 705) 324 6701
Denmark Promens (+45) 4497 5133
Finland Finncont (+358 3) 485 411
France Matcon France (+33 3) 8989 7502
Promens (+33 3) 8969 2000
Germany Hessentaler Container (+49 791) 40700
Matcon (+49 7621) 970 610
Snyder has also unveiled a new polyethylene-lined stainless steel IBC model with filling capacities of 350, 550 and 793 gallons (1,325, 2,082 and 3,000 litres). Meanwhile, the company’s new all-plastics PolyPayloader IBC, which features as footprint of 40” x 48” (1,016 mm x 1,219 mm) and filling capacities of 275 and 330 gallons, can be safely interstacked with composite units if so required.
www.snydernet.com
Flexicon has unveiled a new mobile flexible screw conveyor with a multi-purpose hood for the dust-free transfer of material discharged from flexible intermediate bulk containers (FIBCs). “Mounted on a frame with locking casters for in-plant mobility, the system improves mobility and reduces cost by eliminating heavy frame components typically employed to support bulk bags, relying on the user’s forklift or plant hoist to suspend the bag above the unit during operation,” the company says. At the same time, an iris valve positioned on top of the dust hood allows for the variable control of flow through the big bag spout while a bag support tray and hinged door facilitate “the manual addition of minor ingredients from handheld sacks”. www.flexicon.com
Promens (+49 6205) 20990
Rikutec (+49 2681) 954 618
Netherlands Matcon (+31 23) 510 1080
Promens (+31 570) 660 706
UK Bison IBC (+44 1623) 798 271
Francis Ward (+44 1274) 707 030
Linpac Allibert (+44 121) 506 0100
Matcon (+44 1608) 651 666
PD Rotomouldings (+44 1691) 659 905
Tycon Container (+44 161) 223 5252
USA Custom Metalcraft (+1 417) 862 0707
Edlon (+1 800) 753 3566
Enpac (+1 440) 975 0070
Hoover CS MH (+1 800) 844 8683
Nat’l Packaging (+1 800) 526 3786
Poly Processing (+1 866) 590 6845
Promens (+1 630) 293 0303
Remcon Plastics (+1 800) 874 7793
Snyder Industries (+1 402) 467 5221
Australia Buschutz Engineering (+61 8) 8581 1073
Trans-Tainer (+61 8) 8363 9799
Canada Hawman Container (+1 705) 424 2196
Stelfab Niagara (+1 905) 356 8683
China CCPM (+86 512) 5268 8171
Denmark Horsens Emballage (+45) 7560 2744
Finland Finncont (+358 3) 485 411
Kaucon (+358 1) 373 2332
France Métal Conteneurs (+33 2) 4749 2026
Nordtole Conteneurs (+33 3) 2721 6990
Stocklin Logistics (+33 1) 4992 1255
Germany Contek (+49 36332) 2890
Schütz (+49 2626) 770
Thielmann (+49 7831) 77269
Werit (+49 2681) 80701
Italy Incon (+39 0183) 36237
Japan Kodama Plastics (+81 584) 274 141
Nippon Steel Drum (+81 3) 5627 2311
Malaysia ISC (+60 3) 3168 1481
Spain Reyde (+34 93) 478 7600
UK Bison IBC (+44 1623) 798 271
Matcon (+44 1608) 651 666
Pensteel (+44 1277) 810 211
Solitec (+44 1453) 828 727
Thielmann (+44 1924) 856 654
USA Custom Metalcraft (+1 417) 862 0707
Greif (+1 740) 549 6000
Hoover CS MH (+1 800) 844 8683
Matcon (+1 856) 256 1330
Servolift (+1 973) 442 7878
Snyder Industries (+1 402) 467 5221
Titan IBC (+1 866) 294 4514
1,000-1,999
sentiment” with regard to such matters as market size, infrastructure, transport connections and business climate.
THE GROWTH PROSPECTS for the world’s emerging markets “look brighter than they have in years”, according to the latest Agility Emerging Markets Logistics Index. Of more than 500 supply chain industry professionals polled, nearly two-thirds agreed with the IMF’s 2018 emerging markets forecast of 4.8 to 4.9 per cent GDP growth. This, Agility notes, “would mark the fastest expansion for emerging markets since 2013 and a second consecutive year of higher growth for developing economies, which have slowed dramatically since a 7.4 per cent GDP gain in 2010”.
Moreover, the bulk of survey respondents (55 per cent) believe that small and mediumsized enterprises (SMEs) are the most likely to benefit from this fresh acceleration of growth as opposed to 22 per cent that said large
companies would be the biggest beneficiaries. “The logistics industry’s optimism comes as a relief,” says Essa Al-Saleh, CEO of Agility Global Integrated Logistics. “In 2018, we are looking at renewed growth overall, although it is likely to be very uneven from region to region and country to country.”
Now in its ninth year, the Index ranks 50 emerging national markets by various factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distribution firms.
Compiled in conjunction with Transport Intelligence (Ti), a UK-based logistics analysis and research firm, the Index’s survey of global logistics executives thus provides what Agility describes as a valuable “snapshot of industry
Perhaps unsurprisingly, China and India once again topped this year’s rankings, occupying the number one and two spots, respectively, although they put more distance between themselves and the third-placed UAE, which gives “a broad gauge of emerging markets’ competitiveness”. At the same time, Russia climbed three spots to seventh, “an indication [that] its economy is stabilising after years of low energy prices, capital flight and US economic sanctions”. Brazil, however, struggling to emerge from political turmoil and its worst recession in a century, slipped two spots to ninth.
Meanwhile, industry executives can’t agree on the future of the North American Free Trade Agreement [NAFTA], which has come under intense criticism from the Trump administration and which is currently being renegotiated between the US, Mexico and Canada. “Logistics executives were sharply split about whether a new pact would help Mexico (24.3 per cent); hurt Mexico (21.8 per cent); or leave trade unchanged (25.7 per cent),” Agility reports.
Logistics executives, though, seem unconcerned, for now, that emerging markets
economies will be harmed by Brexit, the UK’s departure from the EU. Indeed, while nearly 45 per cent of those polled believed emerging markets will be unaffected by the move, some 25.4 per cent say emerging markets could gain from Brexit through expanded market access. This represents something of a sea change from a year ago, when nearly 69 per cent expressed concern that “Brexit and the failure of various trade initiatives were a threat to trade”.
In terms of this year’s biggest gains, Egypt surged six spots to number 14, the largest move by any country in the 2018 Index. Furthermore, the same country rocketed up 26 places to number 21 in the separate ranking of business conditions, or ‘market compatibility’. Also doing well this year were Bangladesh (number 23) and Uruguay (number 25), both of which leapfrogged four spots in the overall rankings.
That said, Nigeria, Africa’s largest economy, tumbled from number 24 12 months ago to this year’s number 31. “In spite of its potential, Nigeria ranks next-to-last in infrastructure and transport connections, or ‘market connectedness’, and 46th in business climate,” Agility notes, adding that Venezuela also “slumped to number 48 and ranked dead last in market size and growth attractiveness”. Over in Asia, Kazakhstan “fell six places [to 20] despite a resumption in economic growth and [the] announcement of a long-term development blueprint”.
Gulf countries, meanwhile, “continue to dominate the top of the rankings” when it comes to business conditions. The UAE, Qatar, Oman and Bahrain, Agility says, “outpaced all other countries” in this particular field, with Saudi Arabia coming in eighth and Kuwait 16th. At the same time, Gulf countries also rank toward the top in quality of infrastructure and transport connections, with UAE (first), Bahrain (fifth),
Oman (sixth), Saudi Arabia (seventh) and Qatar (eighth) all “top performers”.
Focusing in on Qatar, Agility notes that, despite an ongoing political dispute with a few countries in the Middle East, the country improved its overall ranking in this year’s Index, moving up one spot to number 11, while jumping two spots to eighth in the infrastructure/transport category. Retaining the second spot for business conditions, it also overtook Chile to rank as the number two emerging market for countries with an annual GDP of below $300bn, coming in behind only Malaysia, which “remained the leader for smaller emerging markets”.
Moving on to investments, India and China ranked as “the logistics industry’s favourite investment destinations”, with the percentage of supply chain executives whose companies are considering investments in India jumping to 37.4 per cent from 22.8 per cent a year ago. This, Agility observes, follows “the rollout of India’s Goods & Services Tax unification and other reforms”. That said, Vietnam is also proving popular, leading a second group of countries that includes the UAE, Brazil and Indonesia.
In terms of business conditions, Algeria, Ukraine and Ethiopia all made big improvements, although the business climate deteriorated in Sri Lanka, Cambodia,
Tanzania, Lebanon and the Philippines. Cheap labour, the survey found, is also “losing its attraction as a driver of emerging markets growth in the eyes of logistics professionals”, who increasingly rate economic growth, foreign investment, trade volumes, location and transport infrastructure as more important factors.
And when it comes to infrastructure and transport connections, the countries that made the biggest improvements this year were India, Indonesia, Turkey, Egypt, Iran, Pakistan, Argentina and Bangladesh. Conversely, infrastructure and transport rankings fell for Kazakhstan, Sri Lanka, Colombia, Brazil, Thailand and Kuwait. Meanwhile, in SubSaharan Africa, infrastructure, links between economic centres and poor connectivity are all “deepening concerns for the logistics industry”.
“Emerging markets enjoyed favourable market conditions in 2017 with trade growth the healthiest in years,” says Ti CEO John Manners-Bell. “However, there are many storylines yet to fully unfold, such as China’s debt, the renegotiation of NAFTA and ongoing political and economic transition in the Middle East. While the going looks good for now, there are numerous challenges on the horizon.” HCB
The full 2018 Agility Emerging Markets Logistics Index can be freely downloaded as a PDF from the Agility website. www.agility.com www.ti-insight.com
and storage of polymers; further planning is in preparation, the company says, which will involve creation of a logistics hub for a wider range of chemical products.
“The outlook for 2018 is positive,” reports CEO Hans-Jörg Bertschi. “To be able to cope with the growing demand of our customers, we decided to again spend substantial amounts for the expansion of our capacities in 2018.”
“The enhancement of our own software as well as its integration with digital projects of our customers and our own smart devices are in the centre of the planned efforts.”
The company currently employs 40 people in its software development office and plans to expand this headcount this year.
CONFIDENCE IS ONE thing not in short supply at Switzerland-based tank container operator Bertschi. At the end of January it completed the latest expansion of its logistics hub in Singapore, doubling capacity for the storage of dangerous goods to 50,000 pallet positions. Over the course of this year it also plans to add a new cleaning station for tank containers, enhancing the site’s existing service portfolio, which includes drum filling and the storage and distribution of liquid chemicals across south-east Asia.
Closer to home, Bertschi is also working on the reconstruction of an industrial site in the port of Antwerp that it acquired in the middle of 2017. The first phase is already under construction, which will result in an international hub for the import, handling
That investment includes more than 2,000 new tank containers and also expansion of its head office building in Dürrenäsch. Two floors will be added to the building, which was built only six years ago. “The workforce at the headquarters has grown with over 70 new employees over the last four years,” says Hans-Jörg Bertschi. “The expansion of the infrastructure will add space for the group’s future developments. The new canteen, modern office spaces as well as outdoor recreational areas will make the company even more attractive for the employees.”
Another important focus for Bertschi is the digitalisation of its business processes. “Digitised transparency in the logistics chains will enable us to further improve our service quality for our customers and to optimise our internal processes,” says Hans-Jörg Bertschi.
Looking back at 2017, Bertschi achieved turnover of some SFr 900m ($965m), an increase of more than 20 per cent over 2016. That result was achieved despite serious disruption to its European operations from the extended closure of the main Rhine valley rail line after a failed tunnel excavation at Rastatt. That line contributes to around 25 per cent of Bertschi’s European revenues and, the company says, its closure meant that executing rail movements on the north-south axis was “an enormous challenge”.
Bertschi describes the Rastatt incident as “the biggest traffic interruption in its history”. However, with the “extraordinary effort” of its employees it was able to turn the crisis into a business opportunity, demonstrating its flexibility and reliability as a logistics partner.
The importance of its employees is recognised by Bertschi every year, where long service is rewarded. At this year’s event in Dürrenäsch, five – including Hans-Jörg himself – were thanked for 30 years’ service and two, Max Schaffner and Samuel Hunziker, received congratulations for their 40 years with the group. HCB www.bertschi.com
INVESTMENT • BERTSCHI HAS RECENTLY ADDED TO STORAGE CAPACITY IN SINGAPORE AND THIS YEAR WILL ALSO ADD TO ITS NEW LOGISTICS HUB IN ANTWERP AND TO ITS TANK CONTAINER FLEET
NETHERLANDS-BASED TRIFLEET leasing is investing in what it says will be “a significant cryogenic [tank] container fleet” and the ability to offer a “full range of related services”. As a start, it has ordered 20 new 46,000-litre, 40-foot tanks and hired Jaap Kuijpers Wentink as director of cryogenics to lead the business. Both Trifleet, which describes itself as “the world’s largest owner-managed tank container leasing company”, and Wentink have some 25 years’ experience in their respective fields.
The new cryogenic tank business will focus on LNG, with Trifleet aiming to position itself
as a technical partner for its customers’ cryogenic infrastructure. It will not only offer the market state-of-the-art tanks but also related services such as cryogenic pumps, hoses, installation systems and technical advice. This will overlay on Trifleet’s existing infrastructure, processes and expertise.
“We are combining Trifleet’s 25 years of expertise in tank containers with Jaap Kuijpers Wentink’s 25 years of cryogenic experience. Our new cryogenic business is off to a powerful start, with a substantial number of superior tanks and deep cryogenic insights, based on the well-established and structured Trifleet organisation,” explains Philip van Rooijen, managing director of Trifleet Leasing.
The cryogenic service is scheduled to be available from the first quarter of this year.
The new tanks are being designed and manufactured by Cryovat in the Netherlands and GasCon in South Africa. The Trifleet technical team is being trained to work with LNG tank containers and will have the necessary global certifications in place by the time the first tanks are leased out.
“Building up the cryogenic business at Trifleet is like moving forward with the energy and flexibility of a startup that has the stability and professionalism of an established market player. This is the perfect match for bringing the best cryogenic tanks and services to our LNG customers,” says Jaap Kuijpers Wentink.
Prior to joining Trifleet, Kuijpers Wentink was managing director at the Crynorm Group, a manufacturer of LNG integrated systems such as tank systems, LNG/CNG truck fueling stations, LNG liquefaction plants, LNG bunkering systems, marine LNG fuel systems, and vaporisers. Before that he worked as managing director at tank lessor Cryotainer.
As an alternative to oil-based products, LNG is considered to be the most environmentally friendly fuel. In the rapidly growing gas market, there is an increasing need for transport and storage capacity in the form of intermodal tank containers. And, as an alternative fuel for ships and trucks, demand for LNG is soaring.
The supply of LNG requires flexible storage, which Trifleet believes can be achieved by operational leasing of tank containers. Such applications can also avoid the heavy investment involved in building LNG installations, while leasing tanks shifts capital costs into operational expenditure.
“It is the stable foothold of Trifleet combined with Kuijpers Wentink’s expertise that provides the new cryogenic business with the ability to determine and develop superiorly designed tanks with detailed technical specifications to enable operational advantages for customers,” Trifleet says.
Trifleet currently controls a fleet of some 13,500 tank containers through its headquarters in Dordrecht and offices in Houston, Singapore, Shanghai, Hamburg and Paris, and agents in Italy, Brazil, South Africa and Japan. HCB www.trifleet.com
STOLT-NIELSEN LTD has posted revenues of $1,997.1m for the 12 months to end November 2017, 6.2 per cent up on the previous year. However, operating profit dropped 16.1 per cent to $194.4m and net profit fell by 55.7 per cent to $50.1m. Much of that fall in profits was felt in the fourth quarter, with CEO Niels G Stolt-Nielsen commenting, “SNL’s fourthquarter results reflected the negative impact of one-time charges related to impairments and extraordinary events. The chemical tanker market continued to soften in the quarter, driven by oversupply of tonnage, combined with the impact from Hurricane Harvey.”
Of Stolt-Nielsen’s three main operating division in the chemical logistics business, Stolt Tank Containers had the best year, with rates and margins firming towards the end of 2017. The division’s full-year operating profit came in at $54.5m, up 13.1 per cent on 2016.
Stolt-Nielsen reports that, despite a seasonal decline in shipments in the final quarter of the year, tank utilisation was down only slightly, while freight revenue per shipment increased by 3.9 per cent. It also increased demurrage revenue by $3.3m in the fourth quarter. During the final quarter Stolt Tank Containers also took advantage of low lease rates to boost its fleet by 1.4 per cent to 35,396 units at the end of the financial year.
Stolthaven Terminals, meanwhile, had a solid if unspectacular year, with operating profit up
by 2.3 per cent at $54.2m. That included a one-time $8.4m asset impairment charge, booked in the fourth quarter, relating to the forthcoming expiry of land leases at two sites in New Zealand and the impact of weaker local market conditions. It also reports lower income from its joint-venture terminals in Lingang, China and Antwerp, Belgium.
Stolt Tankers remains the most fragile division in the current trading environment, with full-year operating profit down almost 20 per cent from the 2016 figure at $111.0m. Fourth-quarter revenues were well down, reflecting a decrease in average rates and volumes under contracts of affreightment (COAs), although spot rates were up slightly. Hurricane Harvey impacted both the deepsea and Caribbean regional fleets.
Nevertheless, Stolt Tankers is proceeding with its fleet renewal programme. The last in a series of eight 33,000-dwt stainless steel newbuildings at New Times Shipbuilding, Stolt Palm, was delivered in January 2018; these eight ships form the Hassel Shipping fleet, in which Stolt-Nielsen acquired a 50 per cent interest along with its takeover of Jo Tankers. It also has one newbuilding from Hudong due for delivery in the first quarter of 2018 for its joint venture with NYK.
Stolt-Nielsen’s initial move into the small-scale LNG business is due to see the delivery of two 7,500-m3 LNG carriers from Keppel Singmarine next year. During thefourth quarter it also boosted its shareholding in Higas to 66.25 per cent; Higas is developing shore-based LNG storage and regasification assets in Sardinia to supply local industry.
Looking ahead, Niels G Stolt-Nielsen expects little change in the near term. “Our outlook for the first half of 2018 remains essentially unchanged. We do not anticipate any substantial improvement in the chemical tanker market until 2019 when the orderbook reduces and the supply/demand balance improves. For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by operational improvements and better utilisation. At Stolt Tank Containers, we expect continued strength in rates and margins. HCB www.stolt-nielsen.com
Hoyer Petrolog has won a contract from BP to provide aviation fuel transport and logistics services throughout the UK. The contract includes responsibility for stock progression, scheduling, despatch and physical delivery.
“This agreement with BP provides another important step for Hoyer in the UK to achieve its strategic growth objectives in the aviation fuels market,” says Allan Davison, operations director of Hoyer Petrolog. “The contract award also builds on the already existing relationship between the Hoyer Group and BP’s fuel retail business, who are one of our most important corporate customers.”
Over at head office, Dr Philip Nölling has taken over as CFO of the Hoyer Group as from 1 February, replacing Gerd Peters. He has previously held the same post at the Hermes Logistik Gruppe and DPD. “Not only are we convinced by the specialist know-how of Dr Nölling, we have also gained the impression that he understands the requirements that Hoyer as a family business asks of a CFO, and
that he will identify with our values and exemplify them,” says Thomas Hoyer, chairman of the advisory board. www.hoyer-group.com
Wascosa is investing in more than 1,700 new freight wagons of various types to expand its European fleet. The additions, drawn from a number of manufacturers, will make Wascosa the fifth largest wagon leasing company in Europe. Moreover, Wascosa says, it has the youngest fleet in Europe, with an average wagon age of 13 years; by the end of this year that is expected to fall to 10 years.
“The benefits of Europe’s youngest fleet are evident to our customers: low noise, safe and highly efficient,” says CEO Peter Balzer. Wascosa is also pressing on with equipping its entire fleet with telematics systems. Balzer adds: “Digitalisation has definitely taken hold in the freight wagon industry and the trend is unstoppable.”
Wascosa has also expanded its leasing fleet with the acquisition of 200 chemical and
pressurised gas tank cars from Hamburg-based Kurt Nitzer. Existing contracts with customers will be unaffected by the move. www.wascosa.ch
Odyssey Logistics & Technology has opened a new Engineering Technology Center in Katy, Texas that, the company says, “will be instrumental [in] innovating and developing new solutions for logistics and transportation challenges”.
Commenting on the news, president and CEO Bob Shellman states: “Odyssey is committed to creating solutions and options in today’s capacity constrained environment. Strategically located in Houston’s Energy Corridor and near a major logistics hub, the centre allows our engineers to focus on providing safe, cost-effective and sustainable transportation solutions.” www.odysseylogistics.com
Leschaco has taken a majority stake in its Indian joint venture, Global Saga Leschaco, which has been renamed Leschaco India Pvt Ltd. “The new company name underlines our business targets based on sustainable growth in the strong association within the internationally successful Leschaco group with approximately 2,500 employees,” says managing partner TK Ram.
Leschaco has also established directly owned offices in France (Paris) and Spain (Valencia). Until now the company had been represented by agents through the Eurteam strategic alliance. “France and Spain are among the European logistics growth markets and offer a lot of future potential,” says Jörg Conrad, owner and CEO of the Leschaco group. “Against this background, the strengthening of our own local presence is a consistent step in our global expansion strategy.”
Leschaco now has 71 offiecs in 22 countries, each of which handles all core business segments – sea and air freight, tank containers and
contract logistics. The Bremen-headquartered company plans to open more offices this year, including one in Chicago and two in Brazil. www.leschaco.com
Albatross Tank-Leasing is expanding its range of specials during the first quarter. It is adding reefer tanks equipped with Klinge’s cooling/ heating system, a series of baffled 22.5-m3 T22 tanks and, for carrying products not compatible with stainless steel, a series of 17.5-m3 (T20) and 24.0-m3 (T14) units lined with APC’s ChemLine coating.
All the new tanks can be equipped with the Albatross Sky application, which provides real-time logistics information, including cargo temperature and other essential data to help drive supply chain efficiency.
Investment in these new tanks follows on from last year’s moves into high-pressure gas tanks and 30-m3 and 35-m3 swap body tanks for the European market. albatross-tanks.de
Suttons Group is currently in the middle of a £10m investment in new tank containers; 500 have already arrived with the remainder due to
join the fleet over the next six months. These new tanks are all baffled and, once they are all with Suttons, will mean that more than half its 7,000 tanks will be baffled.
The move, Suttons says, responds to growing demand for the movement of a wider range of products. “These new isotanks being added to the deep-sea fleet and deployed around the world, give us greater flexibility and the ability to carry a broader range of products,” says Andrew Baird, technical services director at Suttons Group. “Our success in winning new business and ongoing commitment to our existing customers means we are continually updating our fleet.”
www.suttonsgroup.com
NEW BLOOD FOR TALKE Talke has promoted Markus Glöckler and Christoph Grunert to its executive board; they succeed Armin Talke and Norbert Talke, who both move to the advisory board. Alfred Talke will remain as group managing director.
“This change in the senior management team is part of Talke’s long-term programme aimed at creating the conditions necessary for the next stages of the group’s development,” the company says. “By filling the two Executive Board positions from within its own ranks and retaining two family members as active participants on the Advisory Board, Talke is also strengthening the foundations for the group’s strategy of continuous and sustainable growth, which it has been pursuing for a number of years.”
www.talke.com
Mainfreight has put into service a new logistics centre in Ghent, Belgium. The 8,500-m warehouse can handle ambient products and foodstuffs as well as dangerous goods. Expansion of the new centre to 30,000 m2 is possible, Mainfreight says.
“From this new location, situated in the heart of the industrial area of Belgium with good access to sea and inland waterways as well as the Belgian main roads, we can offer customers an even higher performance and service level,” the company adds.
Mainfreight’s Ghent office is responsible for logistics, distribution and value-added services; it also has existing logistics and distribution sites in Ostend and Genk and offices for air and ocean freight services in Brussels and Antwerp. www.mainfreight.nl
LAG Trailers has helped develop a driver training tool in collaboration with Total Belgium. In developing a new training programme, Total had identified a need for a practical way of introducing drivers to the technical aspects of road tanker deliveries and loading and approached LAG to build a mobile test unit. The completed unit takes the form of a miniaturised testing centre, housed on a trailer, that simulates the loading and unloading of liquids.
Total Belgium has now taken up the concept and is in talks with other organisations to make the unit available on a broader basis. www.lag.eu
BRENNTAG HAS OFFICIALLY opened its first self-managed warehouse in India. Located around 50 km from the company’s Mumbai office, the 9,300-m2 facility features a general storage area for food and pharma as well as a segregated dangerous goods zone. In addition to providing air-conditioned (16-25°C) and cold-room storage, the site also offers drumming via an automated PLC machine, with a blending unit planned for the future. As such, this new facility, Brenntag says, “will assist in meeting the changing demands of local customers and ensure the integrity and quality of products while reinforcing personal and environmental safety”.
“Before, we used five different warehouses to fulfil our needs for storing and handling our goods,” says Brenntag India’s managing director L Balakrishna. “This consolidation into a single warehouse will efficiently improve our [quality, safety, health and environmental] standards and will bring cost savings to the company. It is exciting for us and we have eight Brenntag employees to manage it, supported by 15 contractual employees. It is an energysaving warehouse, where natural lighting is used until sunset, except in the cold rooms. [The] requirement for cooling is much less, thus adding to the energy efficiency of the facility.”
“India is a strategic priority for Brenntag and a country in which we have invested significantly in for many years,” adds Brenntag Asia Pacific’s chief operating officer Knud
Mohr. “We have always believed in setting higher than normal standards for supply chain excellence and warehousing because we believe quality is important for our customers and supplier partners. Once again, we make a leap forward to maintain the high standards we have set for ourselves and we are proud to see this level of warehouse in India, which is completely on par with any other country in which Brenntag is operating.”
Headquartered in Singapore, Brenntag Asia Pacific currently employs a staff of around 2,000 across a regional network of locations spanning 16 countries from India all the way to New Zealand. Offering what it describes as “a complete line of industrial and specialty
chemicals”, the business further bolstered its Indian operations this past December through the two-stage acquisition of Raj Petro Specialities. A distributor of petroleumrelated products across India and various other countries throughout Asia Pacific, Africa and the Middle East, Raj expects to finish its current financial year with sales of around €180m. Initially taking a 65 per cent stake in the company, Brenntag will acquire the remaining 35 per cent of shares within the next five years.
In a similar move, Brenntag also purchased a 51 per cent controlling stake in the Hong Kong-headquartered Wellstar Group this past June as part of a deal that will seeing taking over full control in 2021. Distributing pigments, resins and kaolin to customers from a broad range of sectors, Wellstar operates three subsidiaries in Shenzhen, Guangzhou and Shanghai and closed its 2016 books with revenues of approximately €27.6m. “Wellstar Group represents a competent and well-established specialty chemicals organisation,” says Brenntag Management Board member and Asia Pacific CEO Henri Nejade. “The company has an experienced sales team with broad experience in the relevant industry and offers strong technical competency and support to customers.” HCB www.brenntag.com
SWITZERLAND’S DKSH, WHICH describes itself as “the leading market expansion services provider with a focus on Asia”, has announced a 2017 post-tax profit of SFr 213.3m ($227.2m). While this figure, the company notes, is “slightly above last year’s level” of SFr 213m, net sales rose 4.8 per cent, from SFr 10.5bn to just over SFr 11bn, its highest annual total to date. At the same time, company EBIT increased by 1.4 per cent from SFr 293m to SFr 297m.
“In 2017, we again exceeded the key figures of the previous year,” says CEO Stefan P Butz. “We achieved this in a year in which we had successful leadership changes and despite external headwinds in some markets. Again, DKSH’s business model proved to be both robust and broadly diversified. We diligently executed our proven strategy with a focus on organic growth and developed new growth opportunities. In addition, we made valueadded acquisitions, expanded our digital footprint and continued to invest in our people and infrastructure. We will pursue this path into the future and are confident for further growth in 2018.”
Organic growth, the company reveals, “constituted the greater part” of this improved result, with DKSH generating “strong growth” in Vietnam, Laos, Cambodia and Myanmar in particular. Overall, the company’s consumer goods, healthcare and technology business units all put in strong showings, despite such issues as “muted consumer demand in Thailand caused by political developments”. Meanwhile, its Business Unit Performance Materials (BUPM) chemical distribution arm succeeded in boosting sales by 2.7 per cent, upping them from SFr 870.6m to SFr 894.1m.
Nevertheless, the BUPM finished 2017 with an EBIT of SFr 73.2m, a figure that was “slightly below” the previous year’s tally of SFr 77m. However, this was largely the result of wider factors beyond the company’s control. “In 2016, EBIT was positively impacted by the appreciation of [the] euro and [the] yen,” DKSH explains.
“Costs for specialty raw materials – converted into euro and yen – decreased in 2016 due to the appreciation of these currencies, resulting in a higher operating profit back then. Adjusted for this effect, EBIT would have increased slightly in 2017.”
Looking to the future, DKSH expects to see “further improvements” this year. “All key growth drivers are intact,” it says. “The strategic position of DKSH remains strong and sustainable.
Our important market Thailand seems to be improving. The performance of our 32,000 specialists, a promising business development pipeline from clients around the world and the opening of further distribution centres in Asia will drive DKSH’s expansion. DKSH is therefore overall confident and expects an increased net sales and profit growth rate for 2018.”
Meanwhile on the management front, DKSH reports that Rainer-Marc Frey is to step down from its Board of Directors at the company’s forthcoming Annual General Meeting. At the same time, the company has expressed its hopes that shareholders will duly elect Prof Dr Annette G Köhler and Eunice Zehnder-Lai to the Board. “On behalf of the entire Board of Directors and management, I would like to thank Rainer-Marc Frey for his highly-appreciated services and important contributions as [a] director over the last 10 years,” says DKSH chairman Dr Joerg Wolle. HCB www.dksh.com
increased due to strong execution leveraging the company’s centralised pricing platform to effectively manage supply constraints,” the company explains.
Meanwhile, Nexeo’s other main business activity, the distribution of plastics, notched up a quarterly gross profit of $41.9m from revenues of $462.2m. This compares favourably to respective prior-year figures of $36.0m and $412.5m. “The increase in revenue was primarily attributed to a 12.3 per cent increase in average selling prices, resulting from supply constraints in various product lines in North America and line card expansion in [Europe, the Middle East and Africa],” the company says.
US-HEADQUARTERED NEXEO Solutions has posted a first-quarter net income of $26.5m, compared to a net loss of $8.3m 12 months previously. Sales and operating revenues rose 17 per cent year-on-year, climbing from $794.8m to $929.6m, while adjusted EBITDA jumped 31 per cent from $33.8m to $44.2m.
“The strength of our team and the quality of our value proposition to suppliers and customers is allowing us to win in the market,” says president and CEO David Bradley. “We made significant progress on our strategic objectives of accelerating organic growth and expanding specialty mix, which is a testament to our focus on commercial execution and is resulting in improved profitability.”
In terms of its Chemicals division, the company closed the quarter with revenues worth $431.9m, up from $352.4m this time last year. This figure, the company reveals, was helped to the tune of $20.5m by revenues stemming from its April 2017 acquisition of Ultra Chem, a Mexico City-headquartered speciality chemicals distributor serving the needs the local industrial chemicals, plastics, personal care, coatings and food sectors among others. “Excluding the impact from Ultra Chem, the increase in revenue was driven by a 12.2 per cent increase in average selling prices as well as a 4 per cent increase in volume,” Nexeo notes.
The Chemical division’s gross profit rose from $42.7m 12 months ago to $58.4m. “The increase was driven primarily by improved specialty mix compared to the same period in the prior fiscal year. Additionally, gross profit
In other news, Nexeo has signed a new contract with BASF Personal Care in Mexico for the distribution of its Actives, Emulgin, Tinosorb, Emulgade, Uvinul, Cetiol, Z-Cote, Cosmedia, Tocopherol Care, Gluadin, Nutrilan Keratine and Luviset lines. These ingredients, Nexeo reveals, have numerous applications for the formulation of various skin care, hair care and sun care products. “We are pleased to deepen our relationship with BASF by adding their personal care products to our portfolio,” says Brian Herington, Nexeo’s senior vice-president of chemicals. “This authorisation continues to broaden our specialty line card as part of our overall chemicals strategy.”
“In the ever-evolving and demanding personal care market, brand-name manufacturers must constantly innovate and create products that fulfil consumer needs,” adds Alejandro Iniestra, Nexeo’ commercial director for Mexico. “We are excited to bring this product line to our customers.”
Established in April 2011 following the spin-off of Ashland’s distribution business, Nexeo was acquired by WL Ross in 2016 and subsequently listed on the US Nasdaq Stock Exchange. Headquartered in the Woodlands, Texas, the company operates a staff of around 2,500 across 170 locations worldwide and supplies some 28,000 customers with more than 24,000 products sourced from over 1,400 suppliers. HCB www.nexeosolutions.com
FINANCIALS • NEXEO SOLUTIONS HAS POSTED A POSITIVE RESULT IN ITS FIRST QUARTER OF THE NEW FINANCIAL YEAR, PROVING THE VALUE OF ITS FOCUS ON COMMERCIAL EXECUTION
DAVID JUKES HAS been named as Univar’s new president and CEO. He will take over the reins on 9 May from current chairman and CEO Stephen D Newlin, who will then become executive chairman of the company’s Board of Directors. “I am proud to have served as Univar’s chairman and CEO during this pivotal period in our company’s history,” Newlin says. “Our business transformation is well underway and we are moving toward becoming a high-performance, innovative, growth company that consistently delivers unsurpassed value for all our stakeholders.”
When appointed CEO in April 2016, Newlin was given three key areas on which to focus
by the Board of Directors: to develop a strong global strategic plan; to reverse the company’s downward financial trend; and to find and develop a suitable CEO successor.
With regard to this latter activity, Newlin states: “The Board and I conducted an extensive search, led by a renowned executive search firm. Through this robust process, we reviewed numerous external candidates and interviewed several outstanding individuals.”
“As the process continued, it became clear that David is uniquely qualified to lead Univar,” he continues. “He is a 35-year veteran of the chemical distribution industry and has held multiple leadership positions within Univar.
He designed and executed a successful go-tomarket strategy yielding double-digit growth in Europe, the Middle East and Africa (EMEA).
He is a transformative leader who shares my
vision and goals for Univar and has earned the respect of our employees, supplier partners and customers. He is undeniably the best leader to continue our success.”
Since joining the company in 2002, Jukes, Univar says, “has been recognised for his leadership and business acumen, holding various roles of increasing responsibility”.
After being named president of Univar EMEA in 2011, he then became president of Univar USA and Latin America in 2015 before taking on his current post of overall president and chief operating officer this past May.
A graduate of the London Business School, he also serves on the board of DCC, a £12.3bn international sales, marketing and support services group headquartered in Dublin and listed on the London Stock Exchange.
“I am looking forward to leading Univar and I am honoured that the Board of Directors has entrusted me with the opportunity to build on the success and profitable growth that Steve has set in motion during his tenure as chairman and CEO and will support as executive chairman,” Jukes says. “Over the last two years, we’ve defined our three strategic priorities: commercial greatness, operational excellence and working as one Univar. I am committed to these and firmly believe they provide the foundation for growth and high performance that will create tremendous value for our shareholders, employees, customers and supplier partners.”
“We are deeply grateful to Steve for accepting this unplanned responsibility and taking on the role of chairman and CEO for the last two years,” adds William S Stavropoulos, lead director of the Univar Board. “He leveraged his experience, intellect and leadership to achieve the objectives the Board gave him and we are pleased that he will continue to provide support as executive chairman of the Board. We are confident that this is the right time to transition responsibility to his successor and David is the right leader with the right team behind him to continue executing Univar’s strategy and vision.” HCB www.univar.com
Germany’s Krahn Chemie has bolstered its presence in France through the acquisition of Memolex, a distributor of chemicals and additives to the local plastics sector with headquarters near Paris. Founded in 1986 and boasting a list of principals that includes various “renowned international suppliers”, Memolex will now be rebranded as Krahn France, with its existing staff transferring to the new entity to ensure “a smooth continuation and the ongoing development of the business”.
“This strategically important acquisition gives [the Krahn Group] the opportunity to expand in the French market,” says Krahn’s managing director Axel Sebbesse (above). “Based on the successful business the Memolex team has established over the last years, we are proud of getting the chance to further develop these activities. I am very happy that we as the Krahn Group can – from now on also in the French market – offer our partners the same Krahn service they already know from other countries.”
“The new affiliation with the Krahn Group provides us with a strong and solid basis for our future business development,” adds Franck Louichon, who established Memolex’s PVC additives business in 1992 and who has now joined the management team of Krahn France. “I am delighted to now be part of a group which also strongly believes that a deep industry and market knowledge is the key to creating value for both sides – our customers and suppliers.” www.krahn.eu
Netherlands-headquartered Caldic has signed an agreement to acquire Acatris, a distributor of speciality chemicals with a focus on the Dutch and Belgian food sector. “Recently, Caldic Belgium and Caldic Ingredients in the Netherlands joined forces by forming one Benelux team to guarantee an even better service to customers and a stronger route to market for suppliers,” says Caldic CEO Olav van Caldenborgh. “The addition of the tailored and innovative Acatris solutions perfectly aligns with this. It strengthens our position in the market and I’m convinced that both our customers and suppliers will benefit from it.” www.caldic.com
France’s Safic-Alcan has extended its ongoing agreement with Orion Engineered Carbons to include the distribution of speciality and rubber carbon blacks across Portugal, Spain, Poland, the Czech Republic, Slovakia, Hungary, Romania, Moldavia, Slovenia, Croatia, Bosnia Herzegovina, Serbia, Montenegro, Macedonia and Bulgaria. The deal builds upon “a long-standing and successful partnership” between the two companies covering France, the UK, the Benelux countries, Germany, Austria and Switzerland.
“This is a new step in our cooperation with Safic-Alcan,” says Udo Engels, Orion’s EMEA vice-president of sales, rubber carbon black.
“With this further agreement, we underline our commitment to the rubber industry and are confident that the excellent service offered by Safic-Alcan is ideally suited to the performance of our products.”
“We are delighted to further extend our longrunning partnership with Orion Engineered Carbons,” adds Safic-Alcan CEO Philippe Combette. “We are confident that this new agreement will further strengthen our relationship with Orion and will allow us to enhance our product portfolio and product offering in the allocated territories and thus to satisfy a wider range of customers.”
www.safic-alcan.com
Germany’s Bodo Möller Chemie has been chosen to distribute Huntsman Advanced Materials’ various product lines throughout North America. “The focus will be on structural adhesives for industrial manufacturing, as well as potting and casting systems for the electronics industry,” Bodo reports, adding that its “deep product and application knowledge” as well as its “comprehensive lab testing services as a solutions provider” will prove a significant boon to customers.
“In the age of e-mobility and extreme lightweight construction, we help manufacturers from the transportation and electronics industries to solve new and challenging demands in bonding and sealing,” says CEO Frank Haug.
As part of its ongoing global expansion, Bodo recently opened a US subsidiary in Atlanta, Georgia and a Mexican subsidiary in Puebla. “Now close to key transportation manufacturers and Tier 1 suppliers”, Bodo, the company says, “can strategically provide knowledge and its product portfolio all over the US”. At the same time, its two new local arms will focus on the distribution of Huntsman products, something Bodo has successfully undertaken across Europe and Asia for a
number of years. As such, the new deal, says Andreas Moser, Bodo’s director of formulated systems, is “a natural expansion of our successful European business and distribution model to the NAFTA region.”
“Bodo Möller Chemie has been an outstanding representative of our specialty brands in Europe and Asia,” adds Michael Quinn, Huntsman’s sales director, Americas.
“We hope that Bodo Möller Chemie can expand their expertise with our products in the North American market and we believe that this will be a successful venture for both companies.” www.bm-chemie.com
Casper Clausen and Emmanuel Kann-Tsavaris have been named by Germany’s TER Chemicals as the new managing directors of TER Nordic. “The managerial change comes in light of the new strategy, driven by the momentum we have witnessed within the Nordic region in 2017,” says TER CEO Andreas Früh. “We as the
management board are very satisfied with the development of TER Nordic, as it exceeds our initial market expectations within the set timeline. Within phase one of our strategy, reputable principles have already assigned their distribution rights to our new subsidiary, allowing us to further expand the business model.” www.terchemicals.com
Ted Saltzman has been named by US chemical distributor Hubbard-Hall as its new market manager for Texas, Oklahoma and Arkansas.
“I am excited to join the team at Hubbard-Hall in the role of market manager and look forward to providing a strategic, solution-oriented approach to the metal finishing industry in this area,” Saltzman says. “I have a very diverse background and feel that I can use these experiences to be of service to the HubbardHall customers in Texas, Oklahoma and Arkansas. The culture at Hubbard-Hall is a great fit for me and I’m eager to meet our
customers and use the resources we have to make their business more profitable.” www.hubbardhall.com
Airgas has announced plans to build a new air separation unit (ASU) in Mebane, North Carolina. Expected to come on stream in 2019, the facility will bolster Airgas’ capabilities in North Carolina’s Research Triangle area while also strengthening its East Coast merchant gases network.
“Airgas continues to expand its gas production and distribution capabilities throughout the US and looks forward to meeting the growing needs of gas customers in the thriving North Carolina market and throughout the region,” says CEO Pascal Vinet. “We look forward to working closely with the Mebane community and the state of North Carolina to bring new opportunities and growth for many years to come.” www.airgas.com
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Oxford OX1 9QG, UK T (+44 333) 210 2427 www.chcs.org.uk
EU Classification for Supply –Substances
• May 15 – Manchester
EU Classification for Supply –Mixtures
• May 16 – Manchester EU Labelling for Supply
• May 17 – Manchester
Advanced preparation of SDSs
• May 23 – Manchester
COMMERCIAL OPERATOR TRAINING SOLUTIONS
Unit 6, Queensway
Swansea West Business Park Swansea SA5 4DH, UK T (+44 1792) 587250 www.cotsolutions.co.uk
ADR All Classes and Tanks
• March 19-23 – Swansea
• April 23-27 – Swansea
10400 NW 33rd Street, Suite 230 Doral, FL 33172, USA
T (+1 305) 871 3313 www.dga4u.com
Initial IATA & HMR Air
• April 2-4 – Doral
• May 7-9 – Doral
Recurrent IATA & HMR
• April 10– Doral
• May 15 – Doral
IMDG Code & HMR Ocean
• May 14 – Doral
PO Box 140
Botany, NSW 1455, Australia
T (+61 8) 8234 1622 http://dgair.com.au
DG by Air – Initial
• April 9-11 – Sydney
• April 16-18 – Brisbane
• May 7-9 – Sydney
DG by Sea – Initial
• April 12-13 – Sydney
• April 19-20 – Brisbane
• May 10-11 – Sydney
Hermes House, St John’s Road Tunbridge Wells TN4 9UZ, UK
T (+44 1892) 526171 www.fta.co.uk
Dangerous Goods Safety Adviser
• May 14-18 – Leeds
ADR – Initial
• March 19-23 –Tunbridge Wells
• April 9-13 – Leeds
• April 23-27 – Leamington Spa
Dangerous Goods Awareness
• March 19 – Leeds
• April 6 – Coventry
• May 10 – Tunbridge Wells
ICC COMPLIANCE CENTER
2150 Liberty Drive Niagara Falls, NY 14304, USA
T (+1 888) 442 9628 88 Lindsay Avenue Dorval, QC H9P 2T8, Canada T (+1 888) 977 4834 www.thecompliancecenter.com
Shipping Dangerous Goods by Ground in Canada: Initial
• March 20-21 – Toronto
• May 8-9 – Toronto
Shipping Dangerous Goods by Ground in Canada: Refresher
• March 20 – Vancouver
• April 17 – Vancouver
• April 17 – Toronto
• May 15 – Toronto
Shipping Dangerous Goods by Ground in Canada: Drivers & Handlers
• April 9 – Toronto
• April 13 – Montreal
• May 11 – Montreal
Shipping Dangerous Goods by Air: Initial
• March 21 – Vancouver
• April 18 – Vancouver
• May 16 – Vancouver
Shipping Dangerous Goods by Sea: Refresher
• April 17 – Montreal
Shipping Hazardous Materials by Ground and Air: Initial
• May 8-9 – Niagara Falls GHS Classification
• March 21-23 – Toronto GHS Supervisor/Manager
• April 11-12 – Toronto
PETER EAST ASSOCIATES 504 Centennial Park Centennial Avenue Elstree, Herts WD6 3FG, UK
T (+44 20) 8953 6721 www.petereast.com
Carriage of Dangerous Goods by Air – Certification
• April 9-11 – Heathrow
• April 9-11 – East Midlands
• April 16-18 – Manchester
• April 23-25 – Southampton
• May 8-10 – Heathrow
Carriage of Dangerous Goods by Air – Revalidation
• April 12-13 – Heathrow
• April 12-13 – East Midlands
• April 19-20 – Manchester
• May 11 – Heathrow
Carriage of Dangerous Goods by Road & Sea
• April 9-11 – Stansted
• April 23-25 – Manchester
• May 8-10 – Heathrow
Carriage of Diagnostic & Infectious Substances by Air
• May 15 – Elstree
Carriage of Lithium Batteries by Air, Road & Sea
• April 19-20 – East Midlands
• May 21-22 – Northampton Carriage of Excepted & Limited Quantities by Air, Road and Sea
• April 16-18 – Elstree
Lancaster Environment Centre, Lancaster University Lancaster, Lancs LA1 4YQ, UK.
T (+44 1524) 510278 www.thereachcentre.com 3-Day Hazard Communication Package
• May 15-17 – Lancaster Safety Data Sheets Workshop
• May 16 – Lancaster Extended SDSUnderstanding & Implementing Exposure Scenarios
• May 16 – Lancaster Understanding REACH Authorisation and Development of Mitigating Strategies
• April 18 – Lancaster An Overview of Chemical Regulations in Asia Pacific
• April 4 – Lancaster
SAF-T-PAK 17827 – 111 Avenue Edmonton, AB T5S 2X3 Canada 7466 Candlewood Road, Suite E Hanover, MD 21076, USA
T (+1 800) 814 7484 www.saftpak.com Shipping Division 6.2
Infectious Substances
• March 28 – Raleigh
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• May 1 – St Louis
• May 2 – Kansas City
12 Gleneagles Court, Brighton Road Crawley, West Sussex RH10 6AD, UK
T (+44 1293) 536943
www.trainingteam.co.uk
Dangerous Goods by Air (Initial)
• April 9-11 – Gatwick
• April 16-18 – East Midlands
• April 16-18 – Heathrow
• April 23-25 – Manchester
• May 14-16 – Gatwick
Dangerous Goods by Air –Revalidation
• April 9-10 – East Midlands
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• April 24-25 – Bristol
• May 10-11 – East Midlands
• May 15-16 – Gatwick
Radioactive Materials by Air
• March 22-23 – Heathrow
Carriage of Lithium Batteries by Air
• March 19-20 – East Midlands
• May 9-10 – Gatwick
Dangerous Goods by Road
• April 25-26 – Bristol
• May 16-17 – East Midlands
Dangerous Goods by Road –‘Top-Up’
• April 13 – Gatwick
• April 20 – East Midlands
• April 20 – Heathrow
• April 27 – Manchester
Dangerous Goods by Sea
• April 23-24 – Bristol
• May 14-15 – East Midlands
Dangerous Goods by Sea –‘Top-Up’
• April 12 – Gatwick
• April 19 – East Midlands
• April 19 – Heathrow
• April 26 – Manchester
The Legion, Wigshaw Lane Culcheth, Warrington WA3 4LY, UK
T (+44 151) 488 0961 www.transchemtraining.com
ADR Initial
• March 19-23 – Warrington
• April 16-20 – Wakefield
• April 23-27 – Warrington
• May 14-18 – Wakefield
I am writing this column in Mombasa, Kenya. I’m here to teach and train two groups of loading masters who work for a national energy distribution company.
Now that major energy companies are divesting and withdrawing from downstream and midstream exposure by selling their physical assets like oil terminals and petrol stations, joint ventures are being formed with investors such as trading firms that refurbish, rebuild and, in some cases, operate them. This needs an assessment of the quality, not only of the hardware, but more importantly of the ‘software’ i.e. the people who work there.
And that is where TankTerminalTraining comes in. We take a look at the competency levels of the people by using the OCIMF guidelines and our global operational experience to assess awareness, knowledge and skills. This can be done in limited time. With that tool in hand, we are able to create ‘made to order’ training programs that focus on possible gaps of knowledge. By doing that in this manner, people can be upgraded in no time to the levels of professionalism required.
I usually work as follows: At the beginning of the course a number of questions are asked in the form of a ‘pre-test’. From the answers I can analyse the current level of competence and then during the ongoing assessment a competency profile can be made of each person. The training program is adjusted accordingly in order to not ‘lose’ the person by too much technical or operational details at once.
Our Loading Master program works approximately the same, but is not a class for beginners. Controlling and managing the ship/shore interface requires experience and advanced awareness, knowledge
and skills. Again, systems science and cybernetics are used to train the candidates, because information is what it’s all about. The students are requested firstly to learn how to pre-plan and prepare before any tanker comes alongside. This pre-arrival, pre-berthing and pre-load or discharge protocol is very important. They are required to obtain a maximum amount of information.
According to cybernetical principles there is a law which I explained in an earlier column: ‘information reduces uncertainty’. When you take a closer look, that makes sense. People can be shown how, when, or where to get this information from. But of course, they first need to be able to ask the proper questions, which means that they must be taught all the details and aspects of how to manage the ship/ shore interface.
What we use is a reference, or if you will, leverage. We look at what a Chief Officer of a tanker had to learn before he was allowed to be in charge of cargo operations. He or she had to go to maritime college for four years and then needed to build sea-time and understand everything about loading and discharging, which is a complex operation. So, we apply systems theory to teach a new way of thinking to our students in order to realise that information gathering through learning reduces complexity. This new level of competence gives them maximum control and reduces HSE risk.
This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.
MARCH 13-15, DALLAS 12th global conference on air cargo www.iata.org/events/wcs/pages/index.aspx
MARCH 13-15, SÃO PAULO
International exhibition on intermodal logistics, cargo transport and international trade, focusing on Latin America www.intermodal.com.br/en
MARCH 13-15, LONDON
Triennial conference and exhibition for the European oil spill response sector www.interspill.org
MARCH 14-15, CAPE TOWN
Conference on the prospects for LPG market growth in Africa www.argusmedia.com/events/argus-events/ europe/argus-africa-lpg/home/
MARCH 15-16, SYDNEY Conference and workshops on business continuity issues www.marcusevans-conferences-australian.com
MARCH 19-21, MELBOURNE
Workshop on optimising dangerous goods management processes www.marcusevans-conferences-australian.com
MARCH 20-22, SHANGHAI
Fifth annual exhibition for the Asian intermodal sector www.intermodal-asia.com
MARCH 20-22, AMSTERDAM Chemical supply chain and logistics conference logichem.wbresearch.com/
MARCH 20-22, ROTTERDAM
The main annual exhibition and conference for the European tank terminal industry www.easyfairs.com/stocexpo-europe-2018/ stocexpo-europe-2018/
MARCH 20-23, PARIS
Annual transport event, including Dangerous Goods Logistics Pavilion www.sitl.eu/en/Home/
MARCH 20-23, HOUSTON
16th annual convention for LNG buyers and sellers
lngamericas.cwclng.com
MARCH 22, NORTHAMPTON
Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/event-2685411
MARCH 25-27, SAN ANTONIO
AFPM’s annual International Petrochemical Conference www.AFPM.org
MARCH 26-29, KUWAIT
Sixth annual meeting on crisis resilience in the Middle East crisisandriskmanagement.iqpc.ae/
MARCH 27-29, ORLANDO
National Institute for Storage Tank Management’s 20th annual international aboveground storage tank conference and trade show www.nistm.org
APRIL 4-5, PROVIDENCE, RI
Meeting for code coordinators and others
subject to Responsible Distribution www.nacd.com/meetings/workshops/
APRIL 8-12, PORTLAND, OREGON
Meeting for industry, regulators and enforcers to improve commercial vehicle safety cvsa.org/eventpage/events/cvsa-workshop/ LogiPharma
APRIL 10-12, MONTREUX
Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com
APRIL 15-17, TORONTO
70th annual conference and exhibition of the National Tank Truck Carriers www.tanktruck.org/meetings/
APRIL 15-20, OTTAWA
18th conference of the Chief Inspectors of Explosives, alongside EPP Working Group of IGUS riskom.com.au/index.php/explosives/ international-conference
APRIL 16-19, BARCELONA
Sixth meeting on custody transfer and process metering efmws.eu
APRIL 17-18, DUBAI
Annual conference and exhibition for the Middle East tank storage sector www.easyfairs.com/stocexpo-middle-eastafrica-2018
APRIL 18-19, LIVERPOOL
Annual exhibition for the fuel distribution sector in the UK and Ireland www.fpsshow.co.uk
APRIL 22-25, WESTON, FL
Annual forum and expo of the Council on Safe Transportation of Hazardous Articles www.costha.com
Date Location Vehicle Type Substance Details Source
3/12/17 Umuahia, road tanker heating oil Road tanker carrying ‘black oil’ (possibly storage tank) exploded in grounds of mission school; burning oil Vanguard Abia, Nigeria (?) set fire to building, which was destroyed; neighbours ran in case it spread further; no casualties reported
4/12/17 Charleston, road tanker gasoline Up to 3,000 gal (11.4 m3) gasoline spilled from tank truck after it overturned on on-ramp to I-26, rupturing AP S Carolina, US one compartment; hazmat team contained 100 gal; evacuated residents took shelter in a bus
5/12/17 Barnum, freight train ethanol Six tank cars with ethanol from Valero Renewables in Ft Dodge derailed north of the city during switching; Ft Dodge Iowa, US no reports of leak; no injuries; faulty switch gear blamed Messenger
6/12/17 Accra, road tanker LPG LPG tanker ran off Accra-Tema motorway near toll booth, overturned; fire crews closed valve, preventing Joy News Ghana significant escape of gas; westbound lanes closed until vehicle could be recovered
11/12/17 Dubuque county, road tanker ethanol Tank truck lost control on curve, ran into ditch and overturned; some 1,500 gal (5.7 m3) ethanol leaked from Des Moines Iowa, US rear compartment; fire crews built dam in field to prevent spill reaching waterway; driver injured in crash Register
11/12/17 Franklin county, road tanker heating oil, Dead River tank truck collided with empty tractor-trailer that jack-knifed on icy road; tanker driver killed in WGME Maine, US kerosene crash; some 2,800 gal (10.6 m3) fuel spilled from ruptured tank
12/12/17 Sakleshpur, rail tank car LPG Leak found in one of 40 gas tank cars on arrival at station from Mangalore Refinery, en route Bengaluru; Deccan Karnataka, India fire crews sprayed water to dampen vapours until refinery personnel arrived to plug leak; no injuries reported Herald
13/12/17 Lagos, road tanker gasoline Tanker detached from truck after rolling backwards trying to cross Festac bridge; tanker overturned; leaking This Day Nigeria fuel was later ignited by passing bus, destroying 20 cars; only one minor injury reported
15/12/17 Idanha, road tanker gasoline Tank truck hit ice, lost control and overturned, 11,600 gal (44 m3) gasoline spilled, some reaching nearby Seattle Oregon, US North Santiam River; nearby Salem shut off water supply from river; driver killed in crash Times
18/12/17 nr Rockhampton, road tanker fuel Road tanker overturned after collision with car on Bruce Highway; police concerned about nearby explosives SMH Qld, Australia factory; traffic was halted until fuel could be transferred to another tanker; no alternative route available
18/12/17 Bachupally, road tanker waste Worker badly injured as he opened manlid on tanker with chemical waste; tanker had been lying idle for Deccan Telangana. India dome days prior to repairs; ambient heat or heat from welding had increased pressure, which forced lid open Chronicle
20/12/17 Ypsilanti, road tanker diesel I-94 had to be closed for several hours after tank truck overturned, spilled diesel across road; tanker had MLive Michigan, US hit unattended vehicle on shoulder; driver unhurt
24/12/17 Traverse City, road tanker gasoline SUV crossed centreline and crashed head-on with tank truck with 13,000 gal (49 m3) gasoline, diesel; up to RecordMichigan, US 5,700 gal gasoline believed to have spilled to road, nearby field; three homes evacuated Eagle
25/12/17 Phrae, road tanker gasoline Road tanker with 42,000 litres gasoline heading for Laos overturned on highway, burst into flames; driver Bangkok Thailand killed in crash; driver in second tanker in convoy said flames spread too quickly to be able to help Post
28/12/17 Mandeville, road tanker sulphuric Fire broke out in rear axle of Quality Carriers tank truck on Lake Pontchartrain Causeway; driver managed to The Louisiana, US acid clear bridge but was unable to put out fire before responders arrived; tank not breached, no spill Advocate
28/12/17 West Palm Beach, road tanker kerosene 8,000-gal (30-m3) tank truck overturned while turning in to deliver at Palm Beach International Airport; The Florida, US crews removed 1,600 gal from tanker, 200 gal from nearby storm drain; streets blocked, traffic diverted Ledger
2/1/18 nr Brescia, road tanker Truck crashed into car as traffic slowed on A21 motorway, shunting car into rear of tanker, which exploded; BBC Lombardy, Italy truck driver and five people in car killed in incident; no indication as to tanker’s load
Date Location Vessel Substance Details Source
31/12/17 Terrigal, barge fireworks Technical mishap during firework display from barge 150 m off Terrigal beach caused explosion in remaining SMH NSW, Australia fireworks; two on barge dived into water to escape; crowd on beach evacuated as precaution
31/12/17 off Den Helder, Elsa
Product tanker (5,300 dwt, 2013), cargo unknown, collided with disused, unmanned oil rig in North Sea; FleetMon Netherlands Essberger tanker proceeding at full speed, suffered bow damage but no pollution reported; tanker brought to anchor
31/12/17 Sevilla, Amber beet Fire broke out in hold of general cargo vessel berthed at Esclusa terminal; ship was loaded with beet from FleetMon Spain Latvia; thought that beet had fermented, emitting flammable gases; port and city fire crews dealt with blaze
Date Location Plant type Substance Details Source
4/12/17 Geelong, oil refinery hydrofluoric One person hospitalised after leak of acid at Viva Refinery; advice message sent to community but no bay939. Victoria, Australia acid evacuations needed; fire crews secured site, gave all-clear com.au
4/12/17 Lingbao, chemical plant sulphuric Acid leak from ageing 1,000-tonne storage tank after base of tank gave way; workers sealed off the area SCMP Henan, China acid while spill was neutralised; some reports said acid got into sewage system
4/12/17 Cold Lake, oilwell crude oil Spill of oil and produced water at well site was largely contained, with less than one barrel released off lease Imperial Alberta, Canada area; operator Imperial Oil notified authorities; air and water monitoring in place Oil
6/12/17 nr Loving, pipeline crude oil Explosion on pipeline south of Carslbad led to 2-mile evacuation while responders assessed incident; CurrentNew Mexico, US initial reports revealed uncertainty about nature of explosion or ownership of line affected Argus
6/12/17 Helena-W Helena, chemical plant benzoyl Three workers at United Initiators were injured in incident involving decomposition of benzoyl peroxide; WREG Arkansas, US peroxide plant involved in manufacture of peroxides; nature of incident unclear; production halted
8/12/17 Baltimore, sewage magnesium More than 850 gal (3,200 litres) magnesium hydroxide leaked to Patapsco River from broken line on tank at AP Maryland, US treatment unit hydroxide sewage treatment facility; spill reported to MdDEP
13/12/17 Glasgow, hospital formalin Fire crews were called to New Victoria Hospital after container of formalin was found to have been damaged BBC UK during transport; some spillage at hospital site; two staff were checked for contamination
15/12/17 San Lorenzo Octeyuco, fireworks fireworks Four killed, five injured by explosion in fireworks factory that damaged four of six buildings at site; factory AP México, Mexico factory was busy ahead of Virgin of Guadelupe festival
18/12/17 International Falls, fuel depot heating oil Massive fire at Rainy Lake Oil depot, sparking explosions in tanks with methanol and propane; tank trucks Int’l Falls Minnesota, US with lube oils also destroyed; company reassured customers that heating oil supplies would continue Journal
28/12/17 Beech Grove, post office mercury Post office was closed indefinitely for cleanup after package shipped from Michigan leaked mercury; health WISH Indiana, US department seeking customers who may have been exposed after noticing mercury footprints on floor
That testing had been carried out by a local firm, H&W Tank Testing Company.
During its investigation, NTSB found evidence that contradicted the test reports. A brittle manway gasket, missing bolts on the baffles, corrosion on the tank head and over-age pressure relief devices all strongly suggested that no internal visual inspection had been carried out in June 2011, despite the documentation that said it had.
THE US NATIONAL Transportation Safety Board (NTSB) has issued a number of recommendations designed to beef up the oversight of cargo tank inspections, following its investigation into a crash in March 2016 involving a cargo tank semitrailer carrying propane.
The incident itself, which happened near Stroud, Alabama, was nothing out of the ordinary: the driver had allowed the truck to wander out of its lane on a curve and overcorrected, causing the tractor and the trailer to separate. The cargo tank hit a rock, breaching the front head of the tank and releasing its contents. The propane caught fire and caused a deflagration in a nearby wooded area, where the tank came to rest. The tractor was severely damaged, badly injuring the driver.
The MC330 cargo tank semi-trailer was built in 1962 by North Texas Tank Company and had a capacity of 10,500 gallons (40 m3).
NTSB’s investigation found no problems with the condition of the tank that could have contributed to the incident. However, it identified safety issues in the loading practice at Enterprise Propane Terminals & Storage, the inspection and testing of MC330/MC331 cargo tanks, and the certification and training of cargo tank inspectors.
The cargo tank involved in the incident, owned by River City Propane, had been subjected to the required tests according to the schedule set down by the US Pipeline and Hazardous Materials Safety Administration (PHMSA).
NTSB also queried H&W’s use of a mobile inspection truck, which suggests that the inspector likely had no way of removing the upper coupler assembly from the semi-trailer in order to inspect its underside for cracks and corrosion.
FMCSA had conducted a review of the H&W cargo tank facility in August 2015 and identified four violations of the Hazardous Materials Regulations (HMR). H&W was advised to take corrective action, including the training of its registered cargo tank inspectors in the HMR.
FMCSA repeated its investigation of H&W after the Stroud crash and found further shortcomings. One of H&W’s inspectors told FMCSA that he did not enter cargo tanks to perform visual inspections.
NTSB concludes that, in light of these failings, the cargo tank inspections performed
by H&W were not adequate and resulted in potentially unsafe cargo tank vehicles continuing to operate on public roadways.
Unusually, FMCSA issued a safety advisory in April 2016 urging operators whose tanks had been inspected by H&W between April 2011 and March 2016 to have them immediately re-inspected and/or re-tested by another registered facility. This affected some 230 cargo tanks, of which 144 were re-inspected. Three of those failed the reinspection, each of which had been inspected by H&W within the previous 12 months. In June 2016 FMCSA imposed a $35,750 fine on H&W for two violations of HMR. The company now appears to be out of business.
It does not appear that H&W is alone in failing to perform its duties; FMCSA inspectors told NTSB that the practice of ‘licking and sticking’ – falsifying cargo tank test reports and applying qualification stickers to insufficiently inspected cargo tanks – is a widely known problem. FMCSA’s own inspection data show that, during 2015 and 2016, 19 per cent of inspected facilities had failed to train their inspectors every three years, 22 per cent had failed to perform a pressure re-test, and 55 per cent had not filled in all the required information on a test/inspection report.
On the basis of FMCSA’s data, NTSB concludes that there is a consistent pattern of safety-critical violations across the cargo tank inspection industry.
Despite this, in response to a petition from the National Propane Gas Association, PHMSA had issued a relaxation of the fiveyear requalification period for cargo tanks in propane service, extending the interval for ten years for the visual inspection and pressure testing of MC330/331 tanks in dedicated propane service with a water capacity of less than 3,500 gallons. NTSB warns that this
relaxation “may not have been warranted”, on the basis of the FMCSA inspection data. It recommends that FMCSA implement a compliance programme for all cargo tank inspection facilities to enhance enforcement of the cargo tank requalification procedures.
FMCSA data also indicate that there is a systemic problem with the training and qualification of cargo tank inspectors. Consistent issues with Incomplete documentation and failure to perform the required inspections and tests suggests that many inspectors are inadequately trained.
NTSB has focused on the definition of ‘registered inspector’ in HMR, which includes a grandfather provision to allow those working in the industry prior to September 1991 to continue to do so. This clause was introduced at the request of the National Tank Truck Carriers in 2003 by PHMSA’s predecessor agency, the Research & Special Programs Administration, as industry was concerned about attracting and retaining qualified tank maintenance personnel.
NTSB is concerned about this provision and the rationale behind it. It also expressed concern at FMCSA’s lack of oversight of the qualification of inspectors.
NTSB has recommended to PHMSA that it remove the grandfather provision and “develop and implement a process to ensure that all persons certified to inspect cargo tanks have the necessary knowledge, skills and abilities to adequately perform inspections of cargo tanks to verify their safety”.
There is further concern over the inadequacy of the training of inspectors;
the requirement for retraining every three years appears to be widely ignored. NTSB notes that the National Board of Boiler and Pressure Vessel Inspectors has an Inspection Code (NBIC), which includes training qualifications for registered inspectors that go beyond those in the HMR. While HMR does reference NBIC, it does not reference it in respect of the training and qualification of inspectors. NTSB therefore recommends that FMCSA and PHMSA make sure that it does.
The Stroud incident led to H&W exiting the cargo tank inspection business. However, NTSB notes, individual inspectors formerly employed by H&W may continue to work for other companies or on their own. It says that allowing inspectors who have performed inadequate inspections to continue to perform inspections increases the risk to operators and the travelling public.
There is a mechanism for suspending or revoking cargo tank inspector registrations, although this is cumbersome and lengthy, involving the US Attorney General and a district court. FMCSA appears never to have used the process. NTSB recommends that PHMSA revise HMR to permit the suspension or revocation of the registrations of highway cargo tank inspectors, something that has already been recognised by the Federal Railroad Administration. HCB
The NTSB report on the Stroud accident and the reasoning behind its recommendations can be found at www.ntsb.gov/investigations/ AccidentReports/Reports/HAR1801SUM.pdf.
HCB: What should responders bear in mind when dealing with a propane cargo tank incident?
JM: Any time that you approach a propane cargo tank incident you should always assume that it’s leaking and could be flammable until you know otherwise. Emergency responders should always refer to the Emergency Response Guidebook (ERG) when first approaching the scene. Responders should immediately secure the area surrounding the incident and make sure that the area is evacuated. According to the ERG, the initial isolation perimeter for propane incidents should be 330 feet (100 metres).
Propane is a gas normally compressed and stored as a liquid. It is colourless and virtually odourless, but an identifying odour is added so it can be detected. Any type of heat or flame could easily cause an explosion. Contact with the unconfined liquid can cause frostbite by evaporative cooling. It is easily ignited. The vapours are heavier than air and a flame can flash back to the source of the leak very easily. The leak may be either a liquid or vapour leak. The vapours can asphyxiate by the displacement of air. Under prolonged exposure to fire or heat the containers may rupture violently and rocket.
Any type of ignition source (anything not intrinsically safe such as machinery, vehicles in the area and other electronics) as well as people in the area lighting cigarettes or using tools or machinery may create sparks. If there
is a leak gas may build up in low lying areas (sewers, ditches, basements).
If there is a fire involving a propane tank, responders should fight the fire from the maximum distance or use unmanned hose holders or monitor nozzles. Cool containers with flooding quantities of water until well after the fire is out. Do not direct water at the source of the leak or safety devices as icing may occur. Withdraw immediately in case of rising sound from venting safety devices or discoloration of the tank, which could indicate an imminent boiling liquid expanding vapour explosion (BLEVE). ALWAYS stay away from tanks engulfed in fire. For massive fire, use unmanned hose holders or monitor nozzles; if this is impossible, withdraw from the area and let the fire burn.
JM: Emergency responders call Chemtrec when they arrive at the scene of an incident to obtain more information regarding the shipper of the product, details on the product(s) involved and to receive guidance for proper procedures when responding to an incident. Responders give Chemtrec information that they find on the tank’s shipping papers or on a label on the outside of the tank. With this information, Chemtrec provides responders with details from the product’s Safety Data Sheet (SDS) or even sends the SDS electronically to the scene.
Depending on the situation, Chemtrec may call the shipper or carrier of the product to connect them with the responder or to deploy a team to clean up the spill. Chemtrec may also connect responders with medical specialists if someone at the scene has been exposed to the product.
If the shipper or the carrier is unknown Chemtrec has resources and links to other producers, specialists and networks that can provide expert technical assistance to responders for this type of emergency.
*Joe Milazzo is operations center director at Chemtrec, based in Falls Church, Virginia. More information on Chemtrec’s work can be found at www.chemtrec.com. HCB
lead to these placards and marks becoming detached from the tank.
After discussion and some revisions, the Joint Meeting adopted additional text at the end of 5.3.1.1.1 (for placards) and at the end of the second paragraph of 5.3.3 (for marks). The text added to 5.3.1.1.1 reads: The placards shall be weather-resistant and shall ensure durable marking throughout the entire journey.
THE AUTUMN 2017 session of the Joint Meeting of the RID Committee of Experts and the Working Party on the Transport of Dangerous Goods (WP15) of the UN Economic Commission for Europe (ECE) was held in Geneva from 19 to 29 September. It was chaired by Claude Pfauvadel (France) with Helmut Rein (Germany) as vice-chair.
The meeting was attended by representatives of 22 states, an observer from the Democratic Republic of Congo, the European Commission, the EU Agency for Railways (ERA), the Central Commission for the Navigation of the Rhine (CCNR), the Organisation for Cooperation between Railways (OSJD) and 11 nongovernmental organisations.
An extensive agenda aimed to discuss, as far as possible, all the main changes that will appear in the 2019 editions of the
RID, ADR and ADN regulations. Agenda items relating to transport in tanks, revised standards and harmonisation with the UN Model Regulations were discussed by their respective working groups, as detailed in the first part of this report (HCB February 2018, page 60). Discussions in plenary then moved on to a number of proposals for changes to the regulatory texts.
The International Union of Railways (UIC) continued with its efforts to extend the weather-resistance provisions, currently applicable to orange-coloured plates, to hazard warning placards and other marks. Its paper explained that adverse weather conditions, headwinds and the length of transport chains involving a rail leg often
France sought an extension to 30 June 2021 of the transitional provision relating to the new requirement in 5.2.2.2.1.1 for the width of the line inside the edge forming the diamond to be 2 mm. This had been raised at an earlier meeting and also at the July 2017 session of the UN Sub-committee of Experts on the transport of dangerous goods (TDG). The Joint Meeting agreed with the proposal and invited WP15 and the RID Committee of Experts to do the same, on the understanding that this might have to be revisited at the March 2018 session of the Joint Meeting.
MULTIMODAL • THE RID/ADR/ADN JOINT MEETING MADE A LOT OF HEADWAY WITH THE CHANGES THAT ARE LIKELY TO APPEAR IN THE 2019 REGULATIONS, THOUGH NOT WITHOUT SOME ISSUES
THE JOINT MEETING IS THE FORUM THAT CONSIDERS MATTERS OF IMPORT ACROSS THE MULTIMODAL TRANSPORT CHAIN
Switzerland considered that the first paragraph of special provision 666 is too complicated and unnecessarily long, in view of the fact that it applies only to UN 3166 and 3171. The Joint Meeting agreed with the comment, if not the text offered in the Swiss paper. Instead they adopted the following revised first paragraph for SP 666:
Vehicles and battery powered equipment, referred to by special provision 388, when carried as a load, as well as any dangerous goods they contain that are necessary for their operation or the operation of their equipment, are not subject to any other provisions of RID/ADR/ADN, provided the following conditions are met:
Sweden felt there was a lack of information about the language to be used on marks on packages; this is addressed in respect of documentation in 5.4.1.4.1 but, despite the various different marks that have crept into the regulations, primarily for safety reasons, there is a lack of instruction on what language(s) they should use.
The Joint Meeting acknowledged the safety issue but could foresee problems if such marks had to be in all the languages through which an international consignment might move. The Swedish representative offered to present a revised proposal, taking into account the comments received.
Germany proposed adding flammable corrosive gases of Class 2 to the list of high consequence dangerous goods in Table
1.10.3.1.2. That Table lists flammable gases of Class 2 in quantities of more than 3,000 litres in tanks and it was unclear why flammable corrosive gases should not be treated the same. After clarifying that this proposal did not relate to non-toxic gases, the Joint Meeting adopted the change. The first line for Class 2 in that Table is amended to read: Flammable, non-toxic gases (classification codes including only letters F or FC)
Another paper from Germany addressed a tricky issue relating to the marking of cargo transport units (CTUs). According to 5.3.6.1, CTUs containing packages with substances of Classes 1 to 9 that have environmentally hazardous properties as well as other hazards (i.e. not UN 3077 and 3082) still have to bear the environmentally hazardous mark, although the packages themselves do not have to be so marked. This seems inconsistent and is also at odds with the provisions of the International Maritime Dangerous Goods (IMDG) Code.
Although there was some opposition, particularly on the grounds that removal of the mark might have an impact on local water protection measures, the proposal was adopted on a vote with a large majority. The solution to the problem is to add at the end of 5.3.6.1:
This does not apply to the exceptions listed in 5.2.1.8.1.
Austria sought clarification of the meaning of ‘gross mass’, found inter alia in »
the definition of maximum total quantity in 1.1.3.6.3. Its paper noted that this probably meant the mass of the articles but, as it stands, it seems to indicate that the mass of the packaging is also included, especially as the same paragraph refers to ‘net mass’ in terms of explosive substances.
The Joint Meeting entertained the proposal but baulked at including the proposed reference to ‘handling devices’. It was made clear that handling devices for which provision is made in the packing instructions should not be taken into account for the calculation of the gross mass, unlike devices attached to the articles, such as handles. (This argument seems to make it likely that another proposal for clarification will be forthcoming somewhere down the line.)
The result of this is that, in the first indent in the text after the table in 1.1.3.6.3, “gross mass in kilograms” is replaced by “total mass in kilograms of the articles without their packagings”.
The Russian Federation had identified a number of paragraphs that deserved clarification, as it felt they were open to misinterpretation. In some cases, the Joint Meeting felt that the proposed changes should be sent up the line to the UN TDG Sub-committee, as they dealt with text drawn from the UN Model Regulations. One proposal
was dealt with by the Working Group on tanks and two more were withdrawn. Two other proposals were adopted:
• 2.2.9.1.3 was revised to remove crossreferences to redundant sub-paragraphs; and
• The wording of 6.1.1.1(b) was amended for clarity.
An informal document from the UK addressed the carriage of prohibited dangerous goods in the mail; it noted that the Royal Mail intercepts some 100,000 postal items containing prohibited dangerous goods every year, of which around 60 per cent are lithium batteries. The UK noted that both the UN Model Regulations and the ICAO Technical Instructions include a reference to the Universal Postal Union (UPU) Convention and Acts and felt that the adoption of a similar reference in RID/ ADR would improve modal harmonisation and raise awareness of the restrictions on dangerous goods in the mail.
Several other delegations shared the UK’s concerns. However, it was also noted that the rapid increase in online shopping has meant that a lot of dangerous goods are now being carried by express courier companies, which are not obliged to comply with the UPU Acts.
The question thus arose of why such services, which are generally in the private sector,
should be placed at an advantage over public sector postal services, when the problem in essence is how to ensure that the transport of dangerous goods, under whatever service, comply with the applicable safety regulations. As such, merely referencing the UPU Acts would have only limited effect. The UK representative promised to take another look at the issue in light of those comments.
Germany felt that the text of 6.2.3.6.1 is being interpreted as applying only to refillable pressure receptacles; in fact it applies equally to non-fillable pressure receptacles. The Joint Meeting agreed and amended the first paragraph to make it clearer: For refillable pressure receptacles, the conformity assessment of valves and other demountable accessories having a direct safety function may be carried out separately from the pressure receptacles. For nonrefillable pressure receptacles, the conformity assessment of valves and other demountable accessories having a direct safety function shall be carried out together with the assessment of the pressure receptacles.
Three papers from the secretariat contained various necessary changes to the texts to update references to external amendments and to amend or delete expired transitional provisions, which were all accepted.
Germany sought the Joint Meeting’s opinion of the meaning of ‘equipment used’ in 7.5.1.1 (ADR) and 7.5.1.2 (RID/ADR), in terms of the visual inspection of equipment used in loading and unloading. Should this be taken to refer to all the equipment specified in 8.1.4 and 8.1.5? Opinions differ within Germany as to the extent of the requirement.
The Joint Meeting was split on this issue; some delegations thought that, yes, the provision does apply to all equipment that is or could be used during loading and unloading, including personal protective equipment and fire extinguishers. Others felt that it refers only to the equipment needed to load or unload the goods. There were also questions about who is responsible for carrying out the visual inspection, especially in cases where it is the driver who conducts the unloading operation.
The representative of Germany said a revised proposal would be drawn up, taking into account the comments made.
Romania had spotted that the definition of ‘carriage’ in 1.2.1 includes a mention of the transport document showing “the place
of dispatch and the place of reception”. However, 5.4.1.1 requires that the transport document show “(g) the name and address of the consignor; (h) the name and address of the consignee(s)”, which are not necessarily the same as the physical location of dispatch and reception.
The Joint Meeting did not agree that an amendment was necessary; the place of dispatch and place of reception should be deduced from other transport documentation, such as a CIM or CMR consignment note.
France returned to the question of the implications of 1.8.1 for competent authorities, which had been discussed at the previous session. This section aims to replicate in RID and ADR the concept included in article 4(3) of the ADN Agreement, according to which Contracting Parties are bound to monitor the observance of prohibitions of carriage and conditions of carriage.
This is a topic that splits the Joint Meeting; there are those that do not like the idea of obligations being placed on competent authorities, while others feel that it is completely justifiable that competent authorities should check that transport operations starting on their territories meet the provisions of RID/ADR and that those in the countries of transit and destination could also legitimately check on their conformity. »
Others feared that the provision as proposed could be interpreted as placing an obligation to carry out systematic checks rather than spot checks.
The representative of France promised to go back and have another think about the issue and to return with a revised proposal.
France reported on the progress of modelling work being done by the National Institute on the Industrial Environment and Hazards (Ineris) in the context of the work of the informal working group on reducing the risk of a boiling liquid evaporating vapour explosion (BLEVE) during the transport of dangerous goods. The Joint Meeting welcomed the progress being made and the usefulness of the modelling tool being used. It asked the informal working group to continue the next session was due to be held in Madrid in February. The Joint Meeting also stressed the need to look at dangerous goods other than LPG that have the potential to generate a BLEVE.
France, Germany and Italy had been making preliminary moves to use the solutions proposed by the informal working group on telematics, decentralising the functions of ‘Trusted Party 1’ (TP1) to accredited bodies, leaving international organisations to manage the list of authorised TP1s
rather than get involved in managing the systems themselves. Austria, Belgium, the Netherlands and the UK said they were interested in taking part in the next meeting, due to take place in Bonn in November 2017.
The European LPG Association (AEGPL) reported on the work of the informal working group on alternative methods for periodic inspection of refillable pressure receptacles, which had met in Paris in May 2017. That meeting discussed some of the concerns that had been expressed at the spring Joint Meeting and came up with two specific proposals.
After discussion by the Joint Meeting and some amendments to the proposals, they were adopted. They include a new 6.2.3.5.3, General provisions for the substitution of dedicated check(s) for periodic inspection required in 6.2.3.5.1, which includes subsections on non-destructive and destructive testing as alternative methods.
In response to earlier concerns, the informal working group also came up with specific provisions for over-moulded cylinders, including a new 6.2.3.5.4: Over-moulded cylinders subject to 6.2.3.5.3.1 shall be subject to periodic inspection and test in accordance with special provision 674 of Chapter 3.3.
A new definition is added in 1.2.1: “Over-moulded cylinder” means a cylinder
intended for the carriage of LPG with a water capacity not exceeding 13 litres made of a coated welded steel inner cylinder with an overmoulded protective case made from cellular plastic, which is non-removable and bonded to the outer surface of the steel cylinder wall;
A new special provision 674 deals specifically with the conditions for alternative test methods for over-moulded cylinders, and is assigned in column (6) of the Dangerous Goods List to UN 1011, 1075, 1965, 1969 and 1978.
ERA presented a report on the tenth workshop of the road map on risk management in the context of rail, road and inland waterway transport of dangerous goods, along with details of the second phase of work and an overview of the future framework of guides on risk management. The workshop had finalised a framework guide on risk management, a risk estimation guide, a decision-making guide and a framework glossary. A guide on data was also envisaged, but it had not yet been possible to finalise it.
The ERA representative explained that, once the guides are finished, a second phase might involve the development of a risk calculation engine, if sufficient budget is available.
Some delegations expressed reservations about the scope of the use of the guides and tools in the future; in particular, they did not like the idea of transport operators having to carry out systematic and mandatory preliminary risk analyses based solely on the tools being developed. ERA said that any interested parties would be at liberty to use the guides and their use is not an end in itself; in addition, they will not address Chapter 1.10.
ERA planned to hold a further meeting in October and expected that the text of the guides would be available for the spring 2018 session of the Joint Meeting, at which point it might be able to make a decision on the second phase of work.
ONGOING WORK ON THE RISK OF A BLEVE DURING TRANSPORT SHOULD EVENTUALLY RESULT IN ADDITIONAL PROVISIONS TO PREVENT SUCH INCIDENTS, INVOLVING NOT ONLY LPG
The European Industrial Gases Association (EIGA) reported on progress being made towards mutual recognition of pressure receptacle approvals between the US and RID/ADR/ADN contracting parties. The Compressed Gas Association (CGA) had entered a petition for rulemaking with the US Department for Transportation (DOT), which was being considered, and EIGA promised to keep the Joint Meeting updated on the passage of this petition.
The Joint Meeting hoped that these moves would lead to the simultaneous alignment of US regulations and RID/ADR/ADN from the beginning of 2021.
An issue had emerged in respect of corrections to the 2017 texts; at its May 2017 meeting, WP15 had adopted corrections to ADR 2017 on the basis of decisions taken by the Joint Meeting in March 2017. However, the UN Office of Legal Affairs had found that a number of these did not meet the criteria for ‘correction’ as opposed to ‘amendment’. The chair of WP15 submitted proposals for amendment so that those corrections could be adopted as soon as possible. The EU then noted that member states were authorised to accept only “formal and minor” changes to the 2017 texts of ADR and ADN, but not the new amendments that were proposed.
The secretariat reported that, of the 13 proposals grouped together, six had been accepted by the Treaty Section as being corrections; the secretariat felt that another three were corrections but were not urgent. However, three other corrections relating to the transport of radioactive substances, which had been ordered by the UN TDG Subcommittee, were important both from a safety standpoint and for modal harmonisation. Another correction concerning the marking of packages containing lithium cells exempted under SP 188 was also modally significant.
The Joint Meeting noted that there are alternative ways to implement the corrections, including the use of multilateral agreements. However, it did seem desirable for a correction procedure to be available and also that the EU procedures should offer a degree of flexibility when considering corrections or changes to the regulations already in force.
Claude Pfauvadel and Helmut Rein were reelected as chair and vice-chair, respectively, for the 2018 sessions; Mr Rein, however, announced that he intended to retire during 2018 and that it might be necessary to elect a new vice-chairman for the autumn session.
The next session of the Joint Meeting was due to be held in Bern from 12 to 16 March. A report on that meeting will appear in HCB in due course. HCB
The Working Party also discussed the problems surrounding the desired corrections to the 2017 text of ADR, which the UN Office of Legal Affairs had deemed to lie outside the criteria for ‘corrections’ and which had already been discussed by the earlier Joint Meeting (see page 72). The Working Party stressed that, while it would limit the adoption of amendments outside the biennial deadlines wherever possible, delegations should only propose corrections if they meet the UN’s criteria.
The Working Party endorsed the amendments adopted by the Joint Meeting at its autumn 2017 session, with some changes.
ROAD
The UN Economic Commission for Europe’s (ECE) Working Party on the Transport of Dangerous Goods (WP15) held its 103rd session from 6 to 10 November 2017, with JA Franco (Portugal) in the chair and Arianne Roumier (France) as vice-chair.
The meeting was attended by representatives from 22 countries, the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF) and five non-governmental organisations.
The meeting’s main task was to consider the outcome of the Joint Meeting of RID/ ADR/ADN experts and a number of other proposals specific to the road mode, and to agree the amendments that will appear in the 2019 edition of the regulations annexed to the ADR Agreement.
Before getting on with those matters, however, the Working Party once again considered a proposal from the secretariat to drop the word ‘European’ from the title of the ADR Agreement. ADR is open to countries other than those of the ECE and its applicability has gradually extended, not least into central Asia and North Africa; in addition, several other countries in Latin America and south-east Asia base their domestic regulations on ADR.
There were no objections to the proposal, although the representative of Germany was concerned that some potential contracting parties might not be technically able to apply the requirements of ADR in full. Nevertheless, the Working Party asked the secretariat to consult with the UN’s Office of Legal Affairs about the best way to effect the change.
Germany referred to the amendment to special provision 660 and proposed that list of UN entries to which it should be assigned should be shorter. The Working Party agreed, and added ‘660’ in column (6) of the Dangerous Goods List to UN 1002, 1006, 1013, 1046, 1056, 1058, 1065, 1066, 1080, 1952, 1956, 2036, 3070, 3163, 3297, 3298 and 3299 (inert gases of Group A, without ammonia solution).
Noting that 5.3.1.1.4 requires Class 9 placards affixed on cargo transport units (CTUs) to correspond to model no 9, and that SP 389 exempts batteries inside a CTU from the marking and labelling requirements, the UK proposed replacing ‘9A’ with ‘9’ in column (5) of the Dangerous Goods List for UN 3536. This proposal was adopted.
Latvia raised a question as to the proper classification of swine carcasses infected with the African swine fever virus. The general consensus was that these should be assigned to UN 2900, whether they are in cultures or not, until 31 December 2018. After that, amendments already adopted for ADR will require carcasses to be classified according to the pathogens present; carcasses naturally infected with the African swine fever virus will then be classified under UN 3373, Category B.
Sweden was of the opinion that the arrangement of the sub-paragraphs in 4.3.3.5
PROVISIONS OF
MODEL REGULATIONS FOR THE REAL WORLD OF ROAD
A MOVE TO AN INTERNATIONAL REGULATION MAY MEAN ADR HAVING TO ADDRESS SOME NEW HAZARDS
could pose problems if they were to be crossreferenced. Ireland proposed dividing 4.3.3.5 so that the second paragraph, starting “Tankcontainers shall not be offered for carriage”, is 4.3.3.6. This suggestion was adopted.
The Working Party noted that some of the new and revised standards referenced by the Joint Meeting had not yet been published. It set a deadline of the next session (in May 2018); if they are still awaiting publication, they will not be referenced in the 2019 text.
The UK challenged a proposed change to 5.3.2.1.6, designed to clarify the existing text, that had been placed in square brackets at the previous session of WP15 and left undecided by the Joint Meeting. The change relates to the use of orange-coloured plates on Class 7 consignments carried under exclusive use. The UK felt that the change would impact a large number of shipments moving in regular trucks and vans, which was not the intention. Several delegations felt the text is clear as it stands and would like more time to consider the change, so the proposed amendment remains in square brackets pending a final decision.
The Working Party did, however, confirm a number of other amendments that had been left in square brackets at the previous session, while noting that the Joint Meeting may yet have other ideas.
The Working Party adopted the new section 7.1.7, which deals with special provisions for the carriage of self-reactive substances stabilised by temperature control, including phrases taken from the existing text of special provisions S4 and V8 in ADR. However, it noted that some measures included in the new text are meaningless without thermal protection and thought this should be brought to the attention of the UN TDG Subcommittee so that the Model Regulations can be amended accordingly.
A little more housework was applied to the Notes to 2.1.5, on the basis of a joint paper from the UK, Switzerland and Sweden. Note 2 is deleted and Note 1 is reworded: For articles which do not have a proper shipping name, other than UN 3537 to 3548, and which contain only dangerous goods within the permitted limited quantity amounts specified in
Column (7a) of Table A of Chapter 3.2, see UN No 3363 and special provisions 301 and 672 of Chapter 3.3.
The UK reported that it has been experiencing delays in processing vehicle test applications. To get around the problem, authorisation has been issued to allow the first inspection of EX, FL and AT vehicles and mobile explosives manufacturing units (MEMUs) to be delayed until the first anniversary test. Positive results with this process led it to propose a similar waiver in ADR. The proposal generated some discussion and the Working Party as a whole was not comfortable with the amendment as it stood. The UK will present a revised proposal at the next session, taking those comments into account.
Switzerland proposed an amendment to 9.2.2.2.2, specifically the use of the term ‘panel van’. It felt the term ‘lorries with box-shaped self-supporting bodies’ explained the intention more clearly. Some delegations felt that ‘panel van’ is equally »
applicable to covered vehicles of more than 3.5 tonnes and therefore the amendment was unnecessary, but others agreed that it would be useful to have a clearer definition of the types of vehicles covered by the provision, ideally using terms already defined in ADR. Switzerland will return with a revised proposal at the next session.
Switzerland also proposed expanding the table under 9.2.1.1 to enable users to make more effective searches for the provisions applicable to each type of vehicle. There was sympathy for the idea, although it was noted that Chapter 9.2 applies to base vehicles and is chiefly of use to vehicle manufacturers; provisions specific to different types of vehicle are found in Chapters 9.3 to 9.8 so, were all the references to be included in a single table, it would mean a reorganisation of Part 9.
However, the Working Party agreed that a global, consolidated table would be of use; this could be prepared at the next session and made available as a guideline using the UN ECE website. The delegate from Romania
remarked that such a checklist is already available in his country and is used for technical inspections; this list will be made available to WP15 to help in the process.
Germany had experienced problems in applying the standards agreed during 2015 with respect to the use of electrical equipment on vehicles, specifically as regards cables. It proposed deleting the second paragraph of 9.2.2.2.1, which refers to ISO 16750-4 and ISO 16750-5, as the requirements for temperature and fluid resistance contained in ISO 6722-1 and ISO 6722-2, referenced in the third paragraph, are regarded as sufficient.
The Working Party agreed with the sentiment but retained the second paragraph, merely deleting the specific reference to ISO 16750.
Switzerland sought clarification of the conditions for the use of vehicles powered by electric engines intended for the transport of dangerous goods in 9.2.2.7. The Working Party welcomed the initiative, noting that the current provisions of 9.2.2 had not been drawn up with the use of electric vehicles in mind and that they should be considered for amendment. It invited the Netherlands to work up its accompanying informal paper for an official proposal, so that the two papers could be considered together at the next session.
Germany returned to a topic discussed at the previous session: clarification of the requirements in 9.3.4.2 for thermal protection of EX/II and EX/III vehicles. To avoid confusion and differences in interpretation, Germany proposed a more prescriptive text. Some delegations agreed with the need for clarification but called for a more descriptive approach.
It was decided that the best way to proceed would be through an informal working group, led by Germany, which planned to meet in January 2018. In the meantime, it was confirmed that sandwich panels could be used, so long as their heat and flame resistance satisfy the requirements in EN 13501-1:2007+A1:2009.
Switzerland had found problems in determining which safety measures should be applied during the carriage of asphyxiant gases when additional provision CV36 applies. The issue is a particular problem in the French text, which uses undefined terms.
Switzerland made two proposals, the first of which sought amendment of CV36 itself. While most delegations supported the proposal, it was felt that this is a multimodal matter and
should be discussed by the Joint Meeting. The second proposal resulted in amendment of the French text.
Another proposal from Switzerland sought explicit mention of the suitability of online refresher training for drivers of vehicles carrying dangerous goods, in accordance with 8.2.2.5. This caused a lot of disagreement: many felt that in-person participation is valuable and should remain obligatory, even for refresher training; in Russia and the Netherlands, on the other hand, it is already possible to use online training for the theoretical part of the course; Austria had also implemented a similar system but abandoned it because of a high failure rate.
Further discussion of this topic seems inevitable, especially given the increasing use of online and video-conference courses in other fields. WP15 noted that the subject also relates to the training of experts under Chapter 8.2 of ADN; presentations should be
made to the Joint Meeting so that a consistent approach can be determined.
Germany, while welcoming the agreed reference to the new IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) in a footnote to 7.5.7.1, felt that the current text is too limited, referring specifically as it does to chapters 9 and 10 of the Code. There are useful recommendations elsewhere in the Code and, while it is not mandatory, a broader reference would not cause problems. The Working Party agreed with the argument and amended the footnote accordingly. As a consequence, it was felt that the reference to the CTU Code in the note to 7.5.7.6.1 had become redundant, and it was deleted.
An informal document from Germany addressed what it saw as an inadequacy in the certificate of approval for vehicles carrying certain dangerous goods, seeking expansion of sections 12 and 13 in the certificate and a number of consequential amendments. The proposal received little
support, fearing that the change would complicate administrative procedures during checks and tests. Furthermore, the proposal had arrived late and there had been little time to study it in detail. Germany will submit an official proposal at the next session.
The secretariat proposed deletion of some expired transitional provisions. The Working Party agreed with the deletion of 1.6.1.21 and 1.6.1.35; however, 1.6.1.36 should remain, as some driver training certificates issued prior to 1 January 2014 might still be valid in 2019. While on the topic of transitional provisions, France proposed some changes to 1.6.5.4, deleting reference to OX vehicles and extending its validity by two years; this was adopted by the Working Party.
An informal paper from Ireland suggested inserting in ADR provisions for the transport of waste gas cartridges, similar to those in place for waste aerosols. This was felt to be a multimodal issue that should be discussed first by the UN TDG Sub-committee. »
Concerned with the potential for vehicles containing dangerous goods to be used by terrorists, Sweden opened a discussion of the meaning of the supervision of vehicles, as required by Chapter 8.4 of ADR. What does ‘supervised’ mean, and under what circumstances might a vehicle be left unsupervised?
The ensuing discussion revealed a difference of opinion, specifically about whether a vehicle parked in accordance with 8.4.1(b) or (c) should be supervised and about the ways of meeting the obligation to ‘constantly supervise’ vehicles and loads. It was also recalled that the requirements in Chapters 8.4 and 8.5 had been prepared a long time before Chapter 1.10 and the concept of ‘security’ had appeared in ADR.
The Working Party agreed that those chapters could be reviewed, not just to clarify the situation but also to take account of technological developments.
Sweden’s representative reported that multi-sector consultations are under way in the country on the subject and might come back to the topic depending on the outcome of those consultations.
Sweden also sought clarification on how the requirements regarding precautions against electrostatic discharge in 7.5.10, 9.7.4 and 9.8.3 of ADR should be understood and applied. In particular, its paper felt there was some confusion over the terms ‘earthing’ and ‘bonding’, which are different concepts – although ADR seems to use ‘earthing’ for both.
The Working Party confirmed that, in the case of 7.5.10, a connection to earth –either direct or indirect – is required. It also confirmed that the provisions in 9.7.4 and 9.8.3 require bonding, although the text refers to ‘earthing’. An official document to change that was promised for the next session.
Belgium asked how to fill in item 5 on the ADR driver training certificate, which indicates the holder’s nationality, in cases where the driver has no nationality or more than one. It was noted that the same problem could apply to other official
documents and information will be sought from the EU and other bodies.
Romania and France both reported on incidents involving the transport of gas cylinders; in both cases the cause of the accident was linked to a technical problem on the vehicle. The Working Party noted the ideas put forward for preventing any repetition, though ideas for active means of protection might involve participation by the UNECE World Forum for Harmonization of Vehicle Regulations (WP29).
France will submit a proposal for a future session that automatic fire extinguisher systems be required in engine compartments of vehicles used for the carriage of gas cylinders, as is already the case for MEMUs and EX/III tank vehicles.
The Working Party asked the secretariat to prepare a consolidated list of all the amendments adopted for entry into force on 1 January 2019. This should be issued no later than 1 July 2018. A consolidated version of the 2019 text should be available in good time so that industry could prepare for its implementation.
The 104th session of WP15 will be held from 14 to 18 May 2018. A report on that meeting will be included in HCB as soon as is practicable. HCB
Staff at a crematorium in Bolton, UK were alarmed by an explosion in January, we hear. It turned out that the relatives of the deceased had put a coconut inside the coffin; the heat of the oven caused it to explode.
Leaving aside the obvious question of why a coconut should be thought an appropriate item to accompany the crematee to the other side, it appears that the problem is not uncommon – and getting more common all the time. Indeed, Bolton Council has had to urge mourners not to slip items into coffins.
“We have seen a rise in things like e-cigarettes, bottles of whisky and vodka, golf balls – sometimes golf clubs – and mobile phones,” Donna Ball, assistant director of community services, told the BBC. “Mobile phones in particular are a real issue for us.”
It is not only the explosion risk of batterypowered items that is a problem – they also push crematorium emissions up to “unacceptable levels”, Ms Ball said.
Speaking of mobile phones, we are repeatedly warned against using them at a filling station in case the phone ignites flammable fumes. “Whilst the risk of sparking from mobile phones is low, they are not intrinsically safe devices and should not be used in those hazardous areas that exist on a forecourt,” the UK Petroleum Industry Association warns.
Which makes it all the odder that two of the largest fuel retailers in the UK – BP and Shell – have both recently introduced phone apps that allow drivers to pay for fuel at the push of a mobile phone button, without having to queue to pay. That may sound a little like balm
for the idle, but the oil companies highlight the advantages of the system for those with children in the car.
BP has now warned customers only to use the app when they are inside the car. A representative from BP said: “It is safe to use a mobile phone from inside your car on a forecourt, but not outside the vehicle.”
Glad that’s cleared up.
Here on the back page, we always tried to find a way to be sick on school sports day and a sad tale from Vellore supports our suspicions of the event. Last month a 17-year-old student was killed and another seriously hurt when a gas cylinder exploded during sports day in the Indian state of Tamil Nadu.
Reports say that the school had organised the day at a private sports ground and had engaged a gas balloon seller, presumably to add a bit of jollity to the event. At some point in proceedings, the cylinder used to fill the balloons exploded. Police said the cause of the explosion has yet to be ascertained.
Unfortunately, the main witness to the event, the balloon seller himself, fled the scene after the explosion and, at the time of the last report, was still on the lam.
Local reports also suggest that school can be a pretty dangerous place for Indian children. Several cases have been reported when students died after falling into septic tanks on school premises and only last November a three-year-old died after allegedly falling into a sump tank at a play school.
Home schooling has never seemed so attractive.
