HCB Magazine March 2022 by Enhesa Product

M O N T H LY

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WAGONS ROLL TANK CONTAINERS HELP KEEP CHEMICALS MOVING PRICE RISES BOOST DISTRIBUTOR SALES SHIPPING LEADS SUSTAINABILITY SURGE ADR 2023 NEARS COMPLETION

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UP FRONT 01

EDITOR’S LETTER

Two years on from the arrival in the world of the Covid-19

and the first week of March. Future planting is also at real risk,

pandemic, we were beginning to see a light at the end of the

meaning this will not be a short-lived phenomenon.

tunnel: falling infection rates in most countries, better treatments

Indeed, the business fallout from the Russia-Ukraine crisis

for those infected and a milder form of the disease becoming

will continue. Energy companies have been scrambling to get

dominant. The attendant problems in global supply chains were

out of Russia, giving up interests in oil and gas projects; those

also beginning to ease, though that is not to say they have gone

supplies will have to be made up elsewhere. Germany is highly

away altogether and there are still issues in terms of labour

reliant on Russian gas and is taking steps to start importing

shortages in various industries.

LNG – but from where? There is competition from other

That light at the end of the tunnel now seems to be an oncoming train, following the invasion of the Ukraine by Russian forces. It is,

importers and prices will inevitably increase yet further. In terms of supply chains, China’s much vaunted attempt

first and foremost, a humanitarian disaster, with thousands already

to link itself to European markets by rail across Asia seems

dead and millions displaced and – at the time of writing – no

destined to fail, as there is no option but to cross Russia. That

indication as to how it might all be brought to a close.

means that those goods already going by rail will have to shift

It is also a disaster for many businesses, especially coming

to maritime transport – and at a time when capacity is already

on top of two years of major disruptions to established business

tight and freight rates are at all-time highs. The container

patterns. There are already some issues emerging, not least the

lines are trying to increase capacity but building new ships is

effective closure of the Black Sea to international shipping. Road

difficult, given the uncertainty over future energy efficiency and

haulage companies in Germany and elsewhere in eastern Europe

emissions control regulations, as other shipping sectors have

report that their drivers from Ukraine and Belarus have been

already experienced.

heading home, for understandable reasons, compounding the existing shortage of drivers. These and other disruptions are already impacting trade.

This could all point to an acceleration in the move towards alternative energy sources, though again it will need a big shipbuilding effort if products such as ammonia, hydrogen

In particular, there are concerns that the blockade on exports

and green methanol are to be moved around the world. It will

from the Ukraine will lead to a big reduction in the availability of

also take a huge investment in infrastructure and technology,

ammonia and ammonia-based fertilisers, which could reduce

at a time when many countries are financially weak from the

global food production and push up prices. Ukraine is also a major

Covid crisis.

source of wheat and prices for that vital commodity have already

We will all be paying for this for years to come, so dig deep.

shot up, rising by almost 70 per cent between the start of the year

Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 43

•

NUMBER 03

UP FRONT

TANKS & LOGISTICS

REGULATIONS

Letter from the Editor

Bring it on home

Diversion ahead

30 Years Ago

Dachser’s help for industry

Learning by Training

Fast and flexible H Essers leverages Dutch assets

ADR 2023 nearly there

Making progress on the Orange Book

STORAGE TERMINALS

It’s cold out there

Facing forwards

Good news for Klinge

BACK PAGE

News bulletin – tanks and logistics

Not otherwise specified

Exolum speeds up the change

CHEMICAL DISTRIBUTION

News bulletin – storage terminals

Buying power

Vopak in transition

Questions, questions 48

The future’s green

Acquisitions boost IMCD

TSA INSIGHT

Going to plan

The quarterly magazine of the Tank Storage Association

DKSH thrives in Asia

News bulletin – chemical distribution

SUSTAINABILITY

COURSES & CONFERENCES

Corpus at the Apex

Conference diary

Corpus Christi plans hydrogen hub

Another league Terntank goes emission-free

16 19

News bulletin – tanker shipping

Publishing Manager Sarah Thompson Email: sarah.thompson@chemicalwatch.com Tel: +44 (0) 20 3603 2103

Incident Log

The roots of NCB

Tank container fleet review A brief history of safety rules

Change was needed

Solvang looks at carbon capture

Advertising sales Sarah Smith Email: sarah.smith@chemicalwatch.com Tel: +44 (0) 203 603 2113

NEXT MONTH

SAFETY

Change the game

Managing Editor Peter Mackay, dgsa Email: peter.mackay@chemicalwatch.com Tel: +44 (0) 7769 685 085

More from the UN experts Regional chemical distribution

Publishing Assistant Francesca Cotton Designer Petya Grozeva Chief Operating Officer Stuart Foxon Chief Commercial Officer Richard Butterworth

CW Research Ltd Talbot House Market Street Shrewsbury SY1 1LG

ISSN 2059-5735 www.hcblive.com

HCB Monthly is published by CW Research Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect. ©2022 CW Research Ltd. All rights reserved

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30 YEARS AGO A LOOK BACK AT MARCH 1992

THE CONCEPT of the tank container really began to take off in the late 1980s, even if growth at the time now looks puny compared to the output of the major Chinese manufacturers each year. At that time, tanks made sense to a wider range of shippers looking to control costs during the global recession. But, as is the nature of things, that sudden emergence of tanks being used to move chemicals in sizeable parcels around the world encouraged the growth of an independent tank cleaning and repair sector. And, almost inevitably, that led to an over-abundance of depots looking for work as the ongoing downturn started to cut into trade volumes. That prompted many to widen their market, offering cleaning and repair services for road tankers, rail tank cars and even IBCs, as well as tank container storage and inspection. Independent depot operators therefore focused their attention very much on where the business was, meaning that operators moving tanks into less well represented areas were left with dirty or faulty units. This was the time when some of the major operators began to open their own facilities, primarily to keep their own tanks working. Of course, that left little incentive for independents to broaden their networks.

warehouse standards found that the UK had too many warehouses storing dangerous goods that were poorly designed and operated. As it happened, the UK Health & Safety Executive (HSE) was already on the case, developing new guidance on the subject, which was discussed by specialist inspector Alan Tyldesley. He concluded his discussion of the subject by saying: “There are no simple answers as to what precautions are needed for any combination of dangerous goods in any pack size in any location. What is needed is a realistic assessment of the risks by a competent management and action taken on the basis of that assessment, backed up by a regulatory regime that can enforce improvements when and if necessary.” Tyldesley also noted that, while it would seem a worthwhile aim to establish harmonised storage regulations across the European Community, there are so many complex factors involved at each particular location that such an effort might prove counter-productive. Further, any ‘one-size-fits-all’ legislation could prove overly prescriptive, hindering technical innovation and forcing individual sites to try to adapt themselves to the rules, rather than responding to a risk assessment.

We still see echoes of that situation today; Van den Bosch, for example, is opening two new cleaning and repair depots in West Africa this year to provide services for its expanding tank container operation in the region. Elsewhere in the March 1992 issue, HCB looked at the storage of dangerous goods in warehouses – now suddenly a hot topic in the wake of the 2020 disaster in Beirut. Back then, a European survey of

Those words are worth remembering; last month’s HCB included a report on the UN/OECD webinar on the lessons learned from the Beirut explosion, citing among other factors the overlapping and often unhelpful regulations found in many parts of the world, as well as the importance of proper land-use planning. As Tyldesley said 30 years ago, the responsibility has to be put where it belongs: squarely with the warehouse operator.

HCB MONTHLY MARCH 2022

UP FRONT 05

LEARNING BY TRAINING by Arend van Campen

WELCOME TO E-LEARNING TODAY I WOULD like to write about learning. All living systems - people, animals, but also companies, organisations and even governments - can sustain themselves for the long term only if they keep learning. For our industry we have built a Moodle-based, customised Learning Management System or LMS to enable anyone from anywhere to log on to our training programs for an attractive fee fitting everyone’s budget. People can learn at their own pace. This opens the door to teaching even the less fortunate how to become the best. Our platform was built for everyone willing to learn. No one will be left behind! I have met many managers who seem not to be too keen on learning new things, because an attitude of ‘I ran this terminal successfully for 30 years, so I already know how to do my job’ prevents adaptation by learning. The LMS is a science-based learning platform. Our training programs are designed by scientific method based on the first law of risk management: the Law of Requisite Variety (aka Ashby’s Law) and Information Theory. A refinery or marine storage terminal needs to develop internal requisite variety to be able to absorb (counter balance) ‘outside’ variety. This means having the people with the combined

Online student/trainer interaction and Q&A sessions are scheduled regularly and on request so students can discuss their work and ask questions. This is a very important ability, which delivers improved insight and teaches the teacher to learn. If you choose to train your staff on several subjects, please know that we offer attractive subscription packages. We made it easy for students to register and pay for the courses online. For organisations we comply with procurement requirements and invoicing standards. Attractive subscription packages are negotiable. Sometimes you may need to be trained on a specific subject. We design training modules to order. We offer training on each of the ISGOTT chapters and from other publications such as Hydrocarbon Management (HM) or SIGTTO. Live training, on the job on location anywhere in the world remains available too. Also you may choose to attend our online training programs in real time. Despite the trend for online learning, we recommend that we train your staff ‘live’ on location. This permits our instructors to observe the people on the job, assess possible learning gaps and efficiently improve your HSE and operational excellence. Our mission is to preserve and pass on our knowledge and skills to the next generation – we make people better!

knowledge, experience, expertise, tools, skills and influence to do so, using all relevant information. Operational excellence depends on the quality and quantity of available information. Prevention of risks can be achieved by the flexibility of learning and using ‘real time’ information to adjust the system. Our training programs are in English. Should you need them to be translated into your language just let us know.

For full details, please go to www.courses.tankterminaltraining.com. This is the latest in a monthly series of articles by Arend van Campen, founder of TankTerminalTraining, who can be contacted at arendvc@ tankterminaltraining.com. More information on the company’s activities can be found at www.tankterminaltraining.com.

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STORAGE TERMINALS 07

RESULTS • VOPAK FINISHED 2021 WELL AS IT FACES A LIFE UNDER NEW LEADERSHIP AND WITH PLENTY OF WORK TO DO TO PREPARE FOR THE COMING ENERGY TRANSITION

“We realised good progress on our portfolio and growth agenda by actively positioning ourselves towards the future,” Richelle adds. “We reached new milestones in industrial terminals, mainly on the US Gulf Coast and China. We delivered new storage capacity and infrastructure in main industrial clusters in Belgium, Mexico, USA, the Netherlands and Australia.” That growth included the addition of 124,000 m3 of new storage capacity at its terminals in Sydney, Australia and Deer Park, Texas during the fourth quarter. Vopak is not alone in facing up to a future where offering tankage for liquid hydrocarbons will not be sustainable, though it is better placed than many other terminal operators, as a result of its financial heft, in dealing with the changes. “Gate terminal, our successful joint venture with Gasunie for LNG in Rotterdam, is making an important contribution to the security of natural gas supplies in the Netherlands and north-west Europe, supplying the equivalent of 25 per cent of the Netherlands’ gas needs,” Richelle notes. “Gate terminal will add 12.5 per cent additional sendout capacity to serve increased demand by the end of 2024. “On sustainability, we are ambitious and performance-driven,” Richelle adds. “We updated our sustainability roadmap to navigate us in the coming years. Our roadmap establishes a balanced approach with 12 key topics focusing on care for people, planet and profit. On safety, the cornerstone of our sustainability policy, we had no major incidents in 2021 and continued to improve our performance versus previous years recording our best year yet.”

IN A YEAR marked by volatility and uncertainty as well as rising costs, Royal Vopak performed well during 2021, finishing with group revenues of €1.28bn, up from €1.19bn in 2020. Excluding exceptional items, group EBITDA increased

“2021, like 2020, was an atypical year due to the pandemic, with high volatility and lower demand for storage across the industry due to tight supplies,” says Dick Richelle, who has recently assumed the role of CEO. “Vopak has

ALL AROUND THE WORLD Overall, average tank occupancy at Vopak’s wholly owned sites was 87 per cent in 2021, slightly down on the 88 per cent achieved in 2020 as a result of softer market conditions in the oil and chemicals markets in the

by 6 per cent to €826.6m, while net profit was essentially unchanged at €298.3m. Vopak did, however, take an €84m exceptional loss on the year, largely attributable to an impairment on its Panama terminal, leaving net profit at €214.2m.

again proven its resilience and ability to continue delivering while adapting to change and further improving our performance in safety and service to our best level yet. We delivered close to record high EBITDA and continued the delivery of the growth projects.

Netherlands and Singapore. Overall capacity increased by 0.6m m3 over the course of the year to reach 36.2m m3, with another 1.8m m3 currently under construction. The increase in group revenues, by 3.9 per cent on a currencyadjusted basis, reflects the contribution of

FACING FORWARDS

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new capacity, mainly in the Americas and Europe & Africa divisions. Revenues in the Americas division rose by 1 per cent to €326.6m, which was affected by a significant negative currency translation effect amounting to €11.2m. The increase mainly reflected newly commissioned capacity at the Veracruz terminal in Mexico (79,000 m3 for oil products) and the Corpus Christi site in Texas (130,000 m3), which opened in October to serve the new ExxonMobil/Sabic plastics plant. The new Vopak Moda Houston site, mainly handling ammonia, came into full operation late in the year and has not had time to impact the results, but additional capacity at Deer Park and the Altamira site in Mexico is due onstream early this year and all are expected to generate additional revenues for the 2022 year’s figures. The Asia & Middle East division returned revenues of €284.1m, down 2 per cent on 2020, reflecting the soft market conditions in Singapore. There were no changes in capacity last year, though the new joint venture with Aegis in India, due to be finalised in the first quarter, will add some 738,000 m3 of capacity for LPG and chemicals.

 VOPAK CONTINUES TO INVEST AS IT REPOSITIONS ITSELF TO FACE A FUTURE WITHOUT TRADITIONAL FUELS BUT WITH A MUCH GREATER FOCUS ON CHEMICALS, GASES AND RENEWABLE PRODUCTS

HCB MONTHLY | MARCH 2022

There has been more activity in the China & North Asia division, where revenues last year grew by 6 per cent to €44.7m, largely as a result of good performance in chemical distribution terminals, although average occupancy rate was down sharply at 75 per cent. Last year included the commissioning of the 290,000-m3 Qinzhou industrial terminal in China, in which Vopak has a 51 per cent shareholding; an additional 85,000 m3 of capacity is due onstream in the second quarter of this year at the Caojing terminal in Shanghai, where Vopak is a 50 per cent partner. Later in the year, the LNG Hong Kong facility is scheduled for commissioning, where Vopak has a 49.99 per cent holding alongside its partner Mitsui OSK Lines. Vopak’s largest regional division, Europe & Africa, posted a 6 per cent increase in revenues to €566.0m, following expansions in South Africa, the Netherlands (63,000 m3 for chemicals at Botlek) and Belgium (50,000 m3 for chemicals at the Linkeroever site in Antwerp). Vopak is currently working on a 64,000 m3 expansion of the Vlaardingen site in the Netherlands to handle renewable feedstocks, due to be commissioned in third quarter 2023. LOOKING AHEAD The future looks like being very different for Vopak as it faces the energy transition and government ambitions for decarbonisation around the world. As Richelle says: “We

contribute to a more sustainable world by actively innovating and investing in infrastructure for the introduction of the new vital products of the future. As the pace of change accelerates, we are excited about our positioning towards the many opportunities ahead. In 2021, we continued our progress of infrastructure solution opportunities and resource allocation to hydrogen, ammonia, CO2, flow batteries, biofuels and sustainable feedstocks. “Building on our experience in storing and handling ammonia at five other locations around the world, we commissioned ammonia operations in the new Vopak Moda Houston terminal with VLGC shipping capacity,” Richelle adds. “This positions us well to contribute to future flows of ammonia, which can be used as a hydrogen carrier, a shipping fuel or a feedstock. We also work with various partners on setting up new hydrogen supply chains via various technologies - liquid organic hydrogen carriers to enable hydrogen imports from various potential locations into Northern Europe, and liquefied hydrogen in the long run to, for instance, Singapore. “For 2022 and beyond, we will remain true to our purpose: storing vital products with care. In doing so, supported by our financial performance, we will continue to make a meaningful contribution to our customers and to society,” Richelle concludes. www.vopak.com

SECTION SLUG 09

distribute Silberline’s RC-65 and L-1015 pigments to the country’s roof coatings sector. “We are excited to expand our relationship with Silberline, one of our long-term strategic partners. This will enhance our ability to bring quality products and solutions to our customers,” Gullion reports. “Our customers will benefit from Nexeo Solutions’ service and logistics excellence,” adds Frank D Nataro, Silberline’s vice-president of sales and marketing, Americas and Europe. “Their ability to promote the benefits of Silberline’s products along with their uncompromising commitment to customer satisfaction will greatly enhance Silberline’s value proposition for our customers.” NEW CHANNEL TO MARKET Sticking with the CASE market, Nexeo has also been named as Solvay’s new channel-to-market for its Rhodoline® defoamer product line in the US, Canada and Mexico. This decision, Nexeo explains, is “a result of consolidation and rationalisation



efforts that will help Solvay focus on the continued development of solutions for the coatings and emulsion polymerisation markets”, with the principal continuing to supply product “with the same manufacturing location, process and sales specifications”. Commenting on the news, Gullion states: “The Rhodoline defoamer product line is highly complementary to our product offering as well as our customer base. We are looking forward to both servicing and growing this important product line.” On the personal care front, Nexeo has been named as Colonial Chemical’s exclusive distribution partner in the US north-east region. “We believe Nexeo’s dedicated personal care sales and technical teams along with their outstanding logistical and customer service capabilities offer a solid growth platform for our products,” says Colonial sales manager David Anderson Jr. “We are excited to be able to promote Colonial’s unique ingredients to the market,” adds Joshua Hicks, Nexeo’s personal care business director. “Their commitment to develop environmentally safe and naturally derived solutions resonate very well with customers’ formulating needs.”

LOWER PRODUCT PRICES IN MOST SECTORS HAVE IMPACTED NEXEO’S FINANCIAL RESULTS BUT ITS SPREAD OF ACTIVITIES AND NEW DISTRIBUTION DEALS OFFER OPTIMISM FOR A NEAR-TERM RECOVERY

NORDIC NEWS Over in Europe, Nexeo reports that it has entered into an agreement with Germany’s

Expanding horizons

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Europe’s leading bulk liquid logistics provider

KD Feddersen to acquire inventory and to serve customers currently provided with DSM products from KD Feddersen Norden in the Nordic region. This agreement, Nexeo says, “has DSM’s support and reflects Nexeo Solutions’ continued focus and commitment to optimise service and enhance their strategic position in the Nordic region”. In line with this, the US distributor has recently expanded its local team in the region “to better position the company for growth in this area”. “We see a lot of development opportunities in the Nordics with DSM’s growing product line card,” says Nexeo’s senior vice-president of plastics, Shawn Williams. “We believe these new customers will be pleased with Nexeo Solutions’ project development service and expertise that comprehensively addresses all key applications for engineered plastics.” Turning to the company’s growing trophy cabinet, Nexeo has been named as the Sherwin-Williams’ Product Finishes Group 2016 Supplier of the Year. “Our partnership with Sherwin-Williams has grown significantly over the years and being honoured with this award for the third time is a wonderful way to highlight the successes we’ve achieved together,” says Brian Herington, Nexeo’s senior vice-president of chemicals. “We’ve worked with Sherwin-Williams on projects from storage, pricing and marketing programmes to regional business building and packaging and all have become successful endeavours due to the teamwork between our companies.” Headquartered in The Woodlands, Texas, Nexeo currently offers more than 23,000 products sourced from over 1,300 world-class suppliers to customers within North America, Europe, Asia, and the Middle East. Operating around 170 locations and a private fleet of more than 1,000 units, the company offers “broad logistics and supply chain capabilities” with a 95 per cent on-time delivery rate. Its logistics infrastructure means it can also offer a same day/next day service to 99 per cent of its customers, which are themselves drawn from a broad cross section of industries, including chemical manufacturing, oil and gas, coatings, adhesives, paints, personal care, automotive and healthcare. www.nexeosolutions.com

To find out more visit exolum.com WWW.HCBLIVE.COM

THE FUTURE’S GREEN STRATEGY • ONE YEAR ON FROM ITS REBRANDING, EXOLUM’S PLAN TO PREPARE ITSELF FOR THE COMING ENERGY TRANSITION IS GOING WELL, SAYS NWE HEAD NACHO CASAJÚS WHEN CLH BECAME Exolum a year ago, it was more than just a change of name. It was symbolic of the diversification of the group, originally based around hydrocarbon logistics but increasingly, in light of its own acquisition of 15 bulk liquids storage terminals from Inter Terminals in November 2020 as well as the looming energy transition, becoming involved in alternative energies. As Nacho Casajús, head of Exolum’s North West Europe (NWE) business unit and the person in charge of its terminalling activities outside Spain, explains, the change of name

reflected the group’s repositioning to be part of the solution to tackle the challenge of the energy transition, through innovation and the application of digitised systems. “We are still operating in oil – for now,” Casajús says, “but we have a focus on growth in other areas – hydrogen, chemicals, gases, biofuels, waste-to-X and the circular economy, for instance.” But the change of name was also accompanied by a broader corporate reset. “We changed the way we operate internally,” he adds. “We are now a much more agile organisation.”

That reorganisation process has involved the integration of the acquired Inter Terminals sites in the UK, Ireland, the Netherlands and Germany, a process that is going “pretty well,” Casajús reports. “We had a clear vision from the beginning: we wanted it to be one organisation, one team, and a single entity with one set of procedures.” That process involved every department in Exolum, not just the newly acquired businesses. Exolum has introduced a new company-wide ERP system but, Casajús says, it is important that business is not disturbed by these changes. “Safety is the number one priority.” Exolum now has a simple structure with three business units covering Spain, NWE and new ventures. A system is in place to share best practices across these three units, which form a tightly focused group. “That’s important for growth,” Casajús says. “It’s still highly efficient and we are really pleased with progress so far.” PEOPLE AND PLACES What do all these changes mean for Exolum’s bulk liquids storage business? It has three points of focus at present: people, growth and maintaining competitivity. As far as people are concerned, Exolum is not alone in finding it difficult to attract new talent, not least in the UK. “We have to make the business attractive to young people,” Casajús says. “They have to see it as part of the solution rather than part of the problem.” In order to overcome resistance, Exolum has put in place apprenticeship schemes and partnered with colleges; internally, it has increased its investment in training and personal development, as well as in the technology needed to develop its workforce’s skills and to encourage diversity. Secondly, there is a clear mandate to grow the business, especially within the chemical industry. “But we are also focusing on new technologies,” Casajús adds. “We are agnostic on which is the fuel of the future but there is a very clear mandate from our shareholders to grow in these areas.” Meanwhile, existing business is still growing and Exolum is picking up new clients in current areas of operation. It

HCB MONTHLY | MARCH 2022

STORAGE TERMINALS 11

is also open to further acquisitions, especially in Europe. This makes it an exciting time for Casajús. “It’s an amazing industry we’re in at the moment,” he says, “and we have a unique opportunity to lead the change. Industry has to show everyone that we are the solution. This is the only way to achieve a structural transition to net-zero. We can be the bridge.” Exolum has, for example already been at the forefront of change in the UK aviation fuel sector, introducing sustainable aviation fuel (SAF). “The chemical composition of SAF is identical to that of conventional paraffin and can be used in the aircraft engine without any drawbacks. It also means a significant reduction in emissions, which helps to meet the UK’s decarbonisation target for the aviation sector,” says Casajús. A big step towards getting SAF accepted in the commercial sector was when the UK Ministry

 AS A ‘TORCH-BEARER’ FOR ALTERNATIVE ENERGIES, EXOLUM IS DEVELOPING SOLAR POWER AT SOME OF ITS SITES IN SPAIN, WHILE ALSO DEVELOPING GREEN HYDROGEN AND WASTE-TO-X PROJECTS AT OTHER LOCATIONS

of Defence started using it after an agreement was signed between the two parties this past August, he adds. BRING ON THE TRANSITION Exolum sees itself as a torch-bearer for new fuels, Casajús adds. It is already producing third-generation biofuels at its sites in the UK at Immingham and Seal Sands and, in addition, is building a hydrogen plant in Spain to generate green hydrogen for mobility through solar energy. That facility near Madrid will be fully operational in the second half of this year, with a planned output of some 60 tonnes per year of green hydrogen for fuel for trucks and buses. Exolum is rolling out more solar power at its other sites, which Casajús sees as a relatively easy way to start generating hydrogen on a large scale. Exolum believes that, by putting volumes of hydrogen on the market, it can help break the cycle of demand availability, which has slowed

Such projects also help Exolum to reduce its own carbon footprint: a new photovoltaic solar plant installed in February this year in fields at its Mora facility in Toledo, Spain will supply 30 per cent of the fuel needs of the pumping facility, reducing CO2 emissions by some 835 tonnes every year. A smaller array is already in use at the Barcelona plant and another is planned for Algeciras, with three more on the drawing board. In addition, in Spain Exolum is planning the construction of a waste recycling plant in the port of Algeciras, which will transform waste water into fuel for ships. It is taking these initiatives itself and, Casajús says, it is important that regulators adopt a technologyneutral approach so that industry can develop its solutions naturally. This will help speed the energy transition, he believes. “There is no single solution,” he adds. Ultimately, despite the challenges of the energy transition and the relatively short time

development in the renewable fuels sector. It is also vital to implement projects that include new technologies and equipment to help scale up output while reducing production and marketing costs, thus ensuring that the energy transition can be effected without a massive cost to society.

span envisaged, Casajús says he is optimistic. “The future looks bright,” he says, “especially for companies like Exolum. We have the capability and knowledge to succeed. And we need to let everyone know about that – it will help attract the talent we need.” exolum.com

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STORAGE TERMINALS 13

NEWS BULLETIN

STORAGE TERMINALS

NUSTAR IN TRIMMER CONDITION

NuStar Energy has reached an agreement to sell its Point Tupper terminal in Nova Scotia, Canada to EverWind Fuels for $60m. “This divestiture, at an attractive valuation in line with prior transactions, is yet another step in our strategic plan to continue optimising our business, building our financial flexibility and strengthening our balance sheet,” says Brad Barron, president/CEO of NuStar. The Point Tupper, located near Port Hawkesbury, offers 7.8m bbl (1.24m m3) of storage capacity for crude oil and refined products and has two mooring points capable of handling tankers of up to 350,000 dwt. NuStar Energy has meanwhile reported 2021 revenues of $1.62bn, up from $1.48bn in 2020, though this increase largely reflected higher product prices; in contrast, service revenue was slightly down. Operating income rose by 13 per cent to $236.5m and net income came in at $38.2m – last year’s loss of $199m reflecting financial adjustments. Adjusted net income rose from $206m to $212m. Storage throughput was down by some 10 per cent and revenues from storage activities were off by around 15 per cent at $494.4m. Impairment losses drove operating income in this segment down from $189.8m last time to $24.8m. That largely reflects the divestiture of NuStar’s terminals in the eastern US and in Texas City, although those deals helped the company to reduce debt and therefore interest expenses. NuStar is continuing to focus on developing its West Coast Renewable Fuels Network; last year, storage assets in the Network generated more than 27 per cent of segment revenue, more than one third of which related exclusively to renewable fuels and related services. “In addition to the growing financial contribution of our West Coast Renewable Fuels Network, we believe the network also demonstrates NuStar’s ability to anticipate and

find profitable, innovative ways to thrive as we navigate through our nation’s evolving energy priorities,” says Barron. www.nustarenergy.com RUBIS EDGES UP

Rubis Terminal achieved revenues of €237m in 2021, up 2 per cent on the prior year, with fourth quarter figures flat on the 2020 numbers. Excluding the Turkish assets, which were sold in January 2022, revenue growth was 5 per cent in both full-year and fourthquarter 2021. Increasing traffic in France helped storage revenue rise by 4 per cent in the fourth quarter, while the fast growing biofuels market in Spain helped it to post a 6 per cent increase in revenues in the same period. The Antwerp joint venture saw high throughput and demand for ancillary services, ending in an 11 per cent year-on-year increase in revenues. Rubis Terminal notes that, with the divestment of the Dörtyol site in Turkey and the acquisition in 2020 of Tepsa, it has reduced its exposure to fossil-based fuels from 60 per

cent in 2019 to 45 per now, with biofuels accounting for 10 per cent, chemicals 39 per cent and the remainder foodstuffs. www.rubis-terminal.com GES GETS GUNVOR TANKS

Global Energy Storage (GES) has completed its first acquisition, buying part of Gunvor’s Stargate terminal in Rotterdam. The acquired assets include four Class 1 storage tanks with a combined capacity of more than 212,000 m3, along with a long-term offtake agreement with Gunvor, and the rights to develop some 20 ha of vacant land. “This is an important milestone for GES,” says Peter Vucins, CEO of GES. “The location of this first investment in the heart of the Port of Rotterdam positions us perfectly to significantly contribute to our client’s needs to develop the new storage and logistics infrastructure to facilitate the Energy Transition which is upon us and accelerating. Our partnership with Gunvor Group and Port of Rotterdam is vital to our strategy to realise these expansions, as are other strategic

WWW.HCBLIVE.COM

partnerships we currently are in discussions with. We hope to revert with some further positive news relatively soon.” www.global-energy-storage.com MARTIN SELLS HIGHER

Martin Midstream Partners has reported 2021 revenues of $882.4m, up from $672.1m in 2020, with operating income rising from $46.5m to $57.3m. The partnership achieved a net income before taxes of $3.17m compared to a net loss of $5.04m last time. Much of the improvement in its revenues derived from higher selling prices, especially in the NGL sector, though its revenues from transport services were also up by 9 per cent at $144.3m. “The rebound in the global economy and strengthening commodity prices resulted in solid annual results across all segments, and particularly in our fertiliser, land transportation and butane optimisation businesses,” reports president/CEO Bob Bondurant. “As we focus on 2022, I remain confident in our diversified refinery services asset base which has performed well through the last two years of economic instability. Our priority remains on maximising investor value through our continued emphasis on capital discipline and niche organic growth projects with our long-term business partners.” mmlp.com GIBSON GETS THE GO

Gibson Energy has reported 2021 revenues of C$7.21bn, up 46 per cent over the 2020 figure as a result of higher commodity prices and volumes. Gibson’s infrastructure segment recorded a 17 per cent increase in adjusted EBITDA to C$436m, following “strong performance” at its Hardisty and Edmonton

 NAVIGATOR TERMINALS IS PLANNING TO ADD MORE BITUMEN HANDLING CAPACITY AT ITS SITES IN NORTH-EAST ENGLAND IN A DEAL WITH TOTALENERGIES

HCB MONTHLY | MARCH 2022

terminals, as well as the influence of new tankage at Hardisty and the opening in December 2021 of the diluent recovery unit (DRU). During the year Gibson entered a long-term agreement with Suncor Energy at its Edmonton terminal, which includes the development of biofuels blending capacity. It has also sanctioned a 435,000-bbl expansion at the Edmonton terminal, underpinned by a long-term, take-or-pay contract. www.gibsonenergy.com CROWLEY OPENS IN ALASKA

Crowley has put into service a new aviation fuel storage facility near Fairbanks, Alaska to supply nearby US Air Force bases on behalf of the US Defense Logistics Agency. Crowley was awarded a multi-year contract in 2020 and work began in August of that year. As well as tankage, the site has dedicated pipelines, tank truck and rail car loading facilities and an on-site additivation capability. “We are honoured by the continued trust and confidence DLA Energy places in Crowley to support US military installations and operations here in the US and abroad,” says Sean Thomas, vice-president of Crowley

Solutions. “The successful delivery of these fuel management services, five months ahead of schedule, is a strong testament to the leadership of [Crowley’s director of terminal operations] Scott Mulvihill as well as the collaborative team effort between DLA Energy, Crowley and our project partners.” www.crowley.com NAVIGATING THE BITUMEN BUSINESS

Navigator Terminals is to expand bitumen storage and handling capacity in the Teesside area in north-east England, under an expanded agreement with TotalEnergies. Navigator plans to install additional ancillary equipment and new tankage, due onstream in 2023. “Extending our relationship with Navigator, a key business partner, is a natural step,” says Alex Grant, general manager, bitumen at TotalEnergies. “This long-term commitment will allow us to create an additional supply point, expanding our footprint and complementing our existing positions. It will give us further flexibility and security in our supply chain. This move demonstrates our planning for the long term and our commitment to the market and to our clients.” www.navigatorterminals.com

Issue 9

Spring 2022

TSA

Tank Storage Associa on

O I KO S S T O R A G E ’ S T R A N S F O R M AT I V E J O U R N E Y: I N C O N V E R S AT I O N WITH ARUN S R I S KA N D A

The quarterly magazine from the Tank Storage Association

Also in this issue, we look at the transition to Net Zero, the European Green Deal and careers in the bulk storage and energy infrastructure sector.

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

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TSA

Tank Storage Associa on

Insight is published by the Tank Storage Association, the voice of the UK’s bulk storage and energy infrastructure sector. To contact the editorial team, please email info@ tankstorage.org.uk info@tankstorage.org.uk TSA Insight Team Peter Davidson, Jamie Walker, Nunzia Florio CONNECT WITH US @UK_TSA Tank Storage Association

TSA @uk_tsa

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

Peter Davidson Executive Director, TSA Welcome to the first issue of Insight of this year. Our world is now in an almost constant state of change with technology, processes and systems all evolving and transforming day by day. In this issue of the magazine, we explore how the bulk storage and energy infrastructure sector is positioning itself for the future to ensure that it can play its full part in the Energy Transition. Within this fast-evolving landscape, career prospects in the sector are also expanding. As national and international efforts to tackle climate change by reducing carbon emissions gather pace, the bulk liquid storage industry will not only continue to grow in the coming years but invest in innovation and knowledge as critical inputs for change. I hope you enjoy this new edition of Insight and don’t forget to follow us on social media to keep up to date with all our latest news.

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

Contents

In Focus The TSA has named Jamie Walker as its new Technical Specialist. Mobile emissions and vapor control – at the highest level of safety By 2050, Europe is to become climate-neutral – in other words, no more greenhouse gases (GHG) are to be released into the atmosphere that are not otherwise compensated. UM Terminals sets sights on global markets UM Terminals is moving its strategic growth plan to the next level. The business also continues to invest in delivering the best possible customer service.

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Oikos Storage’s transformative journey: in conversation with Arun Sriskanda Arun Sriskanda, Commercial Director, discusses Oikos Storage’s transformative journey and future ambitions.

Re-Gen Robotics scales up for next growth phase 2022 has seen Re-Gen Robotics hit the ground running, as yet another oil major engages them for their crude oil tank cleaning solutions.

Natural capital and environmental drivers for business Companies may have made net zero pledges and commitments at a corporate level, but what does it really mean for the operational parts of the business?

European Green Deal: a challenge for industry The Green Deal is the EU’s main growth strategy to transition the EU into a modern, resourceefficient and competitive economy. And large scale transformation requires new solutions.

The pathway to the future There is a recognition, within our industry, that we need a new generation of workers who can lead our sector into a safe, profitable, low-carbon future.

Traditional steel grating v GRP Glass Reinforced Plastic (GRP) is lightweight, anticorrosive, non-slip and nonspark. It does not require a hot work permit to install and maintain, and is produced in a wide range of access products.

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

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Online meetings and webinars

TSA’s Energy Transition Charter is available at www.tankstorage. org.uk/publications

of the following meetings will take place online.

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•

6 April 2022: TSA Council

Epudae doleste cullit liae lati tem • 7 April 2022: TSA SHE fugia dellame niendic tem inum Committee voluptam et optatur rempos nimet • 26 April 2022: TSA HR et officit, totatem quaepudist utas conseCommittee nost qui accus dolupis rehentis res aut inimet acest, qui nemporpos adipidus ea volupta quaecti optam For more information on TSA’s fugitae quaesto tatquid endelia meetings, write to info@tankstorage. acia volor re, sanisit hicia aut rem org.uk quiandae vent quae eum quaspere plam qui omniet a net aut et rem. Tem asperov itatioreptam essundesti dolorum re dereicate doluptatibus int de nos volenis volo mo blaboribus dolorumque dus excearuptio. Maximpero vel moluptatusa dolupta eperrum qui volupta simusciis archica boribus maio. Et asimi, corepelis porerum etur, volorunt ipsanda epeles iundis que debitiam eum quoditatus

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In focus

New Technical Specialist for the Tank Storage Association The Tank Storage Association (TSA), the trade association for the bulk storage and energy infrastructure sector, has named Jamie Walker as its new Technical Specialist. He succeeds Barrie Salmon who retired in December 2021, having led the Association’s technical streams since 2012. Working with TSA members, Jamie will use his expertise to facilitate dialogue in key policy-making forums and champion industry’s needs in safety, health, environmental and technical matters. Commenting on the role, Jamie Walker said: “The bulk storage and energy infrastructure sector plays an absolutely critical role in providing the vital interconnection to the various modes of liquid transportation in the UK. It is also leading on the innovations needed to succeed as we look ahead to Net Zero. There has never been a more exciting time to work in this industry, and I am delighted to have the opportunity to drive forward the Association’s technical work through standards development and information sharing as part of our on-going effort toward continuous improvement”.

number of TSA’s member groups and committees, he holds several roles focusing on health and safety matters providing independent advice to the Energy Institute, the Downstream Oil Distribution Forum as well as several storage terminals both in the UK and abroad. Peter Davidson, Executive Director of the Tank Storage Association, added: “As we continue to support our members with the issues pertinent to their businesses, from building on existing technical standards and guidance necessary to safely manage changing processes and inventories, to promoting safety and dialogue with key stakeholders, I look forward to working closely with Jamie on the exciting opportunities ahead for our industry. With the Tank Storage Association playing a leading role in several industry, regulatory and Government forums, Jamie will be a great asset to our technical workstreams”.

safety years’

TSA represents the interests of over 60 member companies engaged in the storage of bulk liquids and the provision of products and services to the bulk liquid storage sector. TSA is tailored to serve its membership so that member organisations can have direct input on the issues most important to them.

experience in the terminal and downstream oil industry, having formerly worked as a Terminal Manager for Murco Petroleum Ltd and, latterly, for Puma Energy. Alongside leading the work of a

For more information on the Tank Storage Association and its work on safety, health, environmental and technical matters, visit www. tankstorage.org.uk.

Jamie is an independent consultant with over 15

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MOBILE EMISSIONS A N D VA P O R C O N T R O L – AT T H E HIGHEST LEVEL OF SAFETY

By 2050, Europe is to become climateneutral – in other words, no more greenhouse gases (GHG) are to be released into the atmosphere that are not otherwise compensated.

Kai Sievers, CEO, ENDEGS Group

missions are caused by transportation, power generation, industrial processes, agriculture, and many other activities. However, by 2050, Europe is to become climate-neutral – in other words, no more greenhouse gases (GHG) are to be released into the atmosphere that are not otherwise compensated.1 As the European Environment Agency states, the EU is on a good path: it markedly surpassed its 2020 emissions reduction target of 20%. According to recent estimates, greenhouse gas emissions in the EU Member States were 31% lower in 2020 than they were in 1990.2 The internationally active company ENDEGS contributes to environmental protection with its solutions for mobile emissions treatment.

affected.3 New technologies for sustainable emissions reduction Because we are confronted with it ourselves every day, the first thing we probably think of in terms of improving air quality is the switch from diesel and petrol engines to electric vehicles. What many don’t see but smell are industrial odours – from gases that harm people and the environment. In the last years, people have started to react sensitively to industrial odours, which are seldom harmless and never healthy. The days when smoke pouring out of smokestacks was welcomed as a symbol of prosperity are over. When stationary emissions reduction systems fail, too often vapours are simply vented into the air until the system has been repaired. They release large amounts of toxic materials – tons each day – into the environment, poisoning the air for people and nature.

As climate change progresses, improving air quality is becoming an increasing priority. Air pollutant emissions from a wide variety of

That is why ENDEGS developed the world’s first fully equipped, autonomously operated, trailermounted vapour combustion unit4, making mobile emissions treatment possible for the first time. In the beginning, the combustion units were viewed sceptically or even

sources affect air quality, can form acids in the environment or drive the excessive accumulation of nutrients (eutrophication) in ecosystems. Human health can also be adversely

seen as safety hazards. But now, the people in the different industries like chemical, petrochemical, oil and gas, food and fertilizer industries realize the added value of the equipment:

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ENDEGS Mobile VCU and Robot

the technologies provide more safety. They protect the environment and protect employees – because a substance that is not emitted can do no harm. Today, ENDEGS is the only company in Europe operating portable vapour control units (VCU) that burn all kinds of gases, gas compounds and vapours of the explosion groups IIA, IIB and, more recently, IIC (products like hydrogen). These units are used to reduce emissions in all types of tanks, containers and pipelines, so that they can be reused, loaded or unloaded. This way, the company helps its customers to prepare for downtime and maintenance, and offers temporary replacement of vapour recovery units (VRUs), flares and vapour processing systems. With its patented technologies, ENDEGS guarantees a combustion rate of nearly 100 percent and no open flame. The performance of the VCU is scalable from 0.1 to 50 MW, with units available in 5, 10 or 20 MW capacity.

VRU replacement

Safe work inside tanks on a next level In addition to climate neutrality, the issue of occupational safety is also becoming increasingly important. With the generational change in companies, there is often a rethinking of environmental and employee protection. Processes are reconsidered, new directives are introduced and measures implemented. So, motivated by the

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desire to minimize the health risk to cleaning workers, in 2020 ENDEGS took a completely new step to implement a safe, efficient and cost-effective way to remove 24/7 hazardous and non-hazardous materials from industrial tanks. The company added ATEX Zone 0 robots (ESOT system)5 for the remotecontrolled cleaning of storage tanks and pits in the chemical, petrochemical, automotive, food and other industries to its line-up. Customers can rent the robots to mitigate health and safety risks. What makes this so important? Where people previously had to do the work at great risk, under rigorous safety precautions and wearing gas masks and hazmat suits, now a remote-controlled robot operates. For more information, visit www. endegs.com. References 1. ‘The EU should be climateneutral by 2050’, available: https://www.bundesregierung. de/breg-en/issues/climateaction/more-climate-protection-

in-eu-1797114 ‘Total greenhouse gas emission trends and projections in Europe’, European Environment Agency (2021), available: https://www. eea.europa.eu/ims/totalgreenhouse-gas-emissiontrends ‘Emissions of air pollutants’ German Environment Agency (Umweltbundesamt – UBA) (2021), available: https://www. umweltbundesamt.de/daten/ luft/luftschadstoff-emissionenin-deutschland#entwicklungder-luftschadstoffbelastung‘Scalable combustion capacity to 50 MW & a combustion rate of almost 100 Percent’, ENDEGS,

available: https://www.endegs. com/en/technologiesservices/ ATEX Zone 0 robot (ESOT system), ENDEGS, available: https://www.endegs.com/en/ endegs-adex-robot-en/

Purpose-developed Mobile Combustion Units

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News

Petroleum Driver Passport Update The Petroleum Driver Passport (PDP) is an industry initiative, backed by the UK Government, aimed at ensuring that all tanker drivers in the UK are trained and assessed to a high standard. It was created by the Downstream Oil Industry Distribution Forum (DODF), a partnership of employers, industry bodies and trade unions. From its implementation in January 2014, it has grown to over 11,500 cards issued. The DODF retains overall responsibility for the PDP Scheme, which is managed by Scottish Qualifications Authority in conjunction with the PDP Management Group. The PDP applies to drivers loading, transporting and off-loading the following products: • • • •

UN 1202 - Gas oil / diesel fuel / heating oil, light UN 1203 - Gasoline / petrol / motor spirit UN 1223 - Kerosene UN 1863 - Fuel / aviation / turbine engines

The passport is renewed every five years, but also has an annual practical assessment and an annual classroom training requirement. UK terminals are the primary point of enforcement for the PDP Scheme. The terminals issue site-specific loading cards to suitably qualified individuals,

and have agreed that drivers with PDP card are demonstrably trained and competent. Therefore, the terminals require drivers to have their PDP card to load, and carry out spot checks on annual validity. The DODF has recently announced that a dispensation issued in September 2021, allowing all Petroleum Driver Passport cards due to expire between 27th September 2021 and 31st December 2021 to remain valid until 31st January 2022, expired at the end of January. From 1st February 2022, all drivers are required to hold a valid 5-year PDP card. To maintain the validity of PDP cards, all drivers are expected to complete the PDP Annual Refresher classroom training and yearly practical assessment. Drivers now have the whole of 2022 to complete their Annual Refresher for this year. Until further notice, any driver who has taken and passed their Annual Refresher in 2021 and/or 2020 should be treated as having a valid PDP card and be permitted to load normally. For more information on all latest developments, visit www.pdpassport. com.

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UM TERMINALS SETS SIGHTS ON GLOBAL MARKETS

UM Terminals is moving its strategic growth plan to the next level.

Bryan Davies. Managing Director, UM Terminals

M Terminals has started 2022 with a focus on moving its strategic growth plan to the next level.

Since launching the growth plan towards the end of 2020, the bulk liquid storage specialist has made significant progress. The three key pillars of the plan were to: 1. Maximise existing UK capability both in terms of current assets and, where appropriate, expanding existing terminals. 2. Optimise the assets of the wider UM Group and its network of facilities in Europe and other parts of the world storing molasses but which could be used to store other products. 3. 3Look for appropriate acquisition targets that complement the current UM Terminals offer. One of the most important areas of focus is on continually identifying new customers, specifically those who are seeking more of a long-term partnership.

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For the right customers, there are currently a small number of opportunities to take storage at UM Terminals’ Gladstone Dock deep sea facility in Liverpool. The Gladstone terminal has two berths allowing for multiple ship and barging operations to run simultaneously. Further storage opportunities are currently available at the company’s Regent Road facility, also in Liverpool. The tanks available range from 10,000 – 15,000 cubic metres. Bryan Davies, Managing Director of UM Terminals, said: “It is relatively unusual for storage of this nature to become available and presents a great opportunity for the right customers. The deep sea facility provided at Gladstone is likely to be of particular interest and we have already had several enquiries from potential customers. In addition, we are able to offer excellent road and rail links across the UK from Liverpool.” Bryan added: “One of our primary goals for this year is to explore new global markets including Asia and the United States. We are continually investing in our facilities and one of our key messages to the market is that for the right project, we will undertake bespoke investment to meet the exact requirements of the customer. We are seeking to build long-term partnerships with our customers, so we are willing to demonstrate our total commitment to ensuring that the storage capability we provide is best

able to meet the future supply chain requirements of customers.” UM Terminals maintains a broad portfolio of around 40 products that it stores including vegetable oils, industrial, food and feed, chemical, fertiliser, fuels, biofuels and base oils. It achieves this operating out of 8 terminals, strategically located across the UK, with a current capacity of over 300,000 cubic metres of bulk liquid storage, but with an ambition to increase this to around 400,000 cubic metres. Vic Brodrick, UM Terminals’ Commercial Director, said: “The product flexibility we offer is one of our key USPs. It allows us to adapt to meet the precise needs of a customer, even if this means investing in our facilities to handle a new product type.” The business also continues to invest in delivering the best possible customer service through its dedicated Client Central Services team. Based out of Regent Road and headed by Client Central Services Manager Lynn McCoy, the service integrates all weighbridge and administration from across UM’s 8 terminals. A dedicated portal gives clients instant

desktop, tablet or mobile device. Bryan added: “We are starting to see the benefits of the strategic growth plan we put in place just over a year ago, particularly in terms of maximising our existing UK capability while also playing to the inherent strengths of being part of the larger UM Group.” UM Terminals is part of the United Molasses Group, led by CEO Ben Macer, whose history dates back almost 100 years. UM’s founder, Michael Kroyer-Keilberg, was involved in bulk liquid storage even earlier than this – he constructed his first tank for the storage of bulk molasses in 1911 at Victoria Dock in Hull. The Group’s other services include the international trading of molasses, the sales and distribution of molasses and the procurement and marketing of vegetable oils for use in the animal feed industry. About UM Terminals UM Terminals provides storage facilities for a wide range of products including vegetable oils, industrial, food and feed, chemical, fertiliser, fuels, biofuels and base oils. For more information, visit www. umterminals.co.uk.

access to essential weighbridge documentation and current stock levels for each tank. They also have a secure log-in and can access their data 24/7, 365 days a year via a

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O I KO S S T O R A G E ’ S T R A N S F O R M AT I V E J O U R N E Y: I N C O N V E R S AT I O N WITH ARUN S R I S KA N D A

Arun Sriskanda, Commercial Director, discusses Oikos Storage’s transformative journey and future ambitions.

ikos has been operating a bulk liquid storage facility on Canvey Island, in the East of England, since 1936. The company’s facility on the River Thames estuary is recognised as a nationally significant marine fed oil, fuel and bulk liquid import and storage facility, with a total tank capacity of 300,000 cubic metres. Operating 24/7, 364 days a year, the Canvey Island terminal is also one of the most technologically advanced storage facilities in Europe and the only independent facility in the South East connected to the national fuel distribution pipeline networks.

As it looks to the future what are Oikos Storage’s objectives and ambitions?

and development roadmap for the site have meant that, from storing products such as tallow for many years, the facility has gone through a transformative journey which has seen significant infrastructure upgrades. Indeed, just over ten years ago, Colin Horton, Oikos’s previous Managing Director, secured funding to effectively redevelop the site the site. This phased process started with the redevelopment of Compound 2 – under the Sirius and Orion projects - followed by the redevelopment of Compound 4 – under Project Aeris – as well as the rebuilding of Jetty 2 in 2018. Jetty 2 is a deep-water jetty with the capacity to accommodate larger vessels, including LR2 tankers, up to 120,000 mts deadweight with a 14.5 metres draft. This undoubtedly adds a degree of differentiation on the Thames. As part of our commitment to long-term storage, we also invested in the redevelopment of our road gantries as well as in our connections to cross-country pipelines. In this context, Oikos is a unique ingress point for both the UKOP and Exolum pipeline networks, providing our customers with pipeline access to major airports including Heathrow, Gatwick and Stansted.

A facility with over 85 years of history, the Canvey Island terminal is now recognised as a nationally significant marine fed oil, fuel and bulk liquid

Looking ahead, and in my role as Commercial Director, I see great value in the progression of our roadmap for

import and storage facility, with a total tank capacity of 300,000 cubic metres. Looking back at the history of the terminal, with particular regard to the past decade, a new strategy

the future of the site, both in terms of transformational projects, such as the Oikos Marine & South Side Development, as well as smaller projects, as we strive to continuously

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improve our service offer to our clients.

pandemic.

The Oikos Marine & South Side Development (OMSSD) is a major transformational project consisting of the installation of new import and export infrastructure, including

up to 33,000m3. The extra storage capacity will not only complement the jetties’ access more efficiently but also enable us to manage safety and operational stocks and futureproof our site for years to come. The OMSSD project will come on stream in a phased manner, with the first phase focusing on the marine asset infrastructure such as the provision of additional marine loading arms to improve discharge rates and optimise operational flexibility. The second phase will see the installation of new storage tanks and associated infrastructure on the landside part of the Oikos facility to provide suitable storage capacity for the additional bulk liquid products to be imported and exported. This is particularly important as the bulk liquid and energy infrastructure sector looks ahead at managing the energy transition while bolstering resilience and security of supply. This also entails trying to strike a balance between existing services and those of the future to best serve our customers. The project’s statutory consultation has now closed, and the responses are being analysed with a view to submitting the application to the Planning Inspectorate early in 2022. As this progresses, we continue to work closely with the local community on their feedback and looking forward, it is the pace of this transformational project that will be a

marine loading arms and pipelines on the existing operational jetties and the construction of new storage tanks across the southern part of the terminal ranging in capacity

key focus, both in the context of the energy transition and as we navigate the path ahead following what has been a challenging commercial environment due the Covid-19

the impact on tankage infrastructure with regard to transport fuels in the context of light-duty vehicles. With regard to long-distance heavy-duty transport and aviation, the future

Back in May 2019, Aberdeen Standard Investments (abrdn) acquired Oikos. Their long-term commitment to the site, and to Oikos Storage’s roadmap for the future, will undoubtedly enable us to seize the vast opportunities ahead. For example, we have recently introduced a road discharge point to one of our tanks to accommodate the blending of Hydrogenated Vegetable Oil (HVO) which is received at the terminal by ship for onward dispatch by road. As we look to the future, we are certainly focused on performing safely, sustainably and remaining commercially viable. With regard to our ambitions, our aim is to grow and develop with our client base to ensure that they have the right service offering. As part of an ongoing investment programme to upgrade and enhance its operations, Oikos is currently proposing to develop the operational efficiency of its existing harbour facility on Canvey Island. Tell us more about this project.

In the context of the Energy Transition, how can the bulk storage and energy infrastructure sector ensure that the opportunities of tomorrow can be seized? From the media to our customers, the energy transition is undoubtedly front and centre. In terms of what the future for the bulk storage and energy infrastructure sector might look like, the Tank Storage Association (TSA) has provided an important forum for the discussion of these all-important questions as well as a platform for the sharing of views and information in this very context. Indeed, a problem shared is a problem halved: the peer support has been great and the range of views extremely valuable for discussions. More generally, the first phase of the transition is quite supportive of our sector in that first and second-generation renewable fuels are bulk liquid fuels and therefore lend themselves well to our asset infrastructure. However, there certainly has been more dislocation of fuel grades which has resulted in a slight change in the tankage profile and a move towards more smaller tanks to accommodate more niche grades. For example, with the proliferation of EVs, there are ever important questions about

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uncertain. Against this background, we need to ensure that we are commercially ready to manage change and able to plan ahead with confidence. In order to do that, it is critical that we have confidence in the policy and legislative framework in place and that timescales engender investor confidence. A clear policy roadmap will be key and can begin to be provided with the outcome of the UK Government’s Downstream Resilience Bill as well as mandating levels of SAF in the jet fuel pool. Planning ahead for our sector will also mean wider considerations about safety, environmental standards and regulatory requirements in the context of new energy vectors. What kind of policy and industry initiatives will be required? I always remember the phrase “necessity is the mother of invention”. A clear and mandated needs case, as we look to the future, would bolster the pace of engineering ingenuity. The UK government has already announced a ban on the sale of new diesel and petrol cars and vans from 2030, and that all new cars and vans must be fully zero emission at the tailpipe from 2035. Looking ahead, a clear roadmap with regard to alternative fuel vectors would help our sector plan with confidence and realign to respond to changes, while seizing opportunities. It would also ensure that we can continue to seamlessly respond to consumer demand and provide the necessary resilience, in terms of fuel supplies, now and well into the future, particularly in light of our connection to the UK’s national fuel distribution pipeline networks and unique access

to the deepwater navigable channel of the River Thames. What is your outlook on the global bulk liquid storage market, its potential and growth drivers vis-àvis other markets across the world? Looking back to 2020, to varying degrees, the pace of recovery has been widely underestimated. For 2022, we are taking a conservative view on recovery. Currently, demand for road transport fuels is holding up while jet fuel demand has been muted as a result of a sluggish aviation sector in the context of Covid-19 and restrictions on air travel. At the time of writing, we are one month into the USUK travel corridor having reopened which has resulted in some positive movements in jet fuel demand. In terms of a wider outlook for our sector, we have seen that in the US and parts of Northern Europe the obligation for holding oil stocks has reduced which has resulted in downward pressure on the requirement for storage, making 2022 quite challenging on that front. However, I believe that there are always opportunities to be seized. Along with the introduction of HVO in 2021, at Oikos we have been able to focus on the energy transition and in future-proofing our assets to enable us to respond to changes in the market and fully realise our infrastructure. As we look ahead, we want to continue creating value for our customers. For more information, visit www.oikos. co.uk.

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News

The National Security and Investment Act 2021 The National Security and Investment (NSI) Act has fully commenced on 4th January 2022.

wishing to understand the Act and notify the government about acquisitions.

The NSI Act, which received royal assent on 29th April 2021, marks the biggest upgrade of investment screening in the UK in 20 years and brings the government’s powers in line with those of many other countries. It replaces the national security provisions of the Enterprise Act 2002.

While the Act’s substantive provisions have entered into force on 4th January 2022, the government will have retroactive powers to call in for review as of that date, or potentially up to five years thereafter, any qualifying transaction completed between 12th November 2020 and the commencement date.

The Act gives the government the powers to scrutinise and intervene in acquisitions of entities and assets that may pose risks to national security. All sectors are within scope of being assessed under the Act and some acquisitions of entities that carry out particularly sensitive work in 17 areas of the economy, such as in civil nuclear, transport, energy, quantum technologies, and defence, will have to notify and receive approval from the government before completing their acquisition. For other acquisitions of entities and of assets, any notification will be voluntary but notifying gives the benefit of a binding decision from the government on whether an acquisition will be called in for scrutiny.

On 2nd November 2021, the Business Secretary published a statement setting out the risk factors that he will take into account when making a decision about calling in an acquisition, and the areas of the economy where a call-in is more likely to take place. Businesses and investors can use the statement to assess how likely it is that their acquisition may be called in.

The Investment Security Unit – a dedicated hub that sits within the business department – will run the investment screening and provide a single point of contact for businesses

The government has also published comprehensive guidance to help businesses and investors to understand their obligations under the new rules, including how to assess whether the government must be notified of an acquisition, and what to expect when going through the NSI notification and assessment process. To know more, visit, https://www. gov.uk/government/collections/ national-security-and-investmentact.

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RE-GEN ROBOTICS SCALES UP FOR N E XT G R OW T H PHASE

2022 has seen Re-Gen Robotics hit the ground running, as yet another oil major engages them for their crude oil tank cleaning solutions.

Fintan Duffy, Managing Director, Re-Gen Robotics

alero’s Pembroke Refinery in Pembrokeshire, southwest Wales is the latest terminal to utilise Re-Gen Robotics’ award-winning Zone 0, EX certified, remote controlled, 100% ‘No Man Entry’ robotic tank cleaning system, to tackle their crude oil tanks. The fully submersible robots are designed to operate in the most inhospitable environments and with specialised access cranes, remote camera systems and engineering expertise, any size or shape of oil, gas or chemical tank can be cleaned, whether they’re tackling heavy fuel oil, crude oil, or sludge. Each robot has an auger system capable of breaking down heavy sludge without using water, meaning that it produces less waste. It is equipped with front and rear ATEX CCTV and lighting for easy internal tank navigation and inspection and the entire robot, CCTV, and lighting system are waterproof. The sludge is extracted by an ADR-certified jet vac tanker, with an impressive 4,800 C/m3 per hour vacuum capacity. Using high pressure, low flow jetting systems

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and the powerful vacuum, the heavy fuel oil tank cleaning robotic system has been designed to fit through a standard 600mm manway, using externally fitted hydraulic ramps. The system has an offset suction head to allow meticulous cleaning underneath heating coils. The lowprofile tool can access underneath pipes and remove waste from below heating coils. It can also operate offset on the left, right, and straight-ahead positions. This tool alone can decrease tank cleaning time by a remarkable 10 to 12 per cent. The self-contained system includes vacuum, jetting, cranage, and robotics and there is no capital outlay for oil terminal operators which simplifies the entire tank cleaning process. Productivity is enhanced and tanks are brought into operation again more quickly. The entire tank cleaning system can be set up in two hours, which is a fraction of the time required for human crews to prepare to enter a tank. Once cleaning is complete, the robot safely exits the container via its ramp and is returned to the control unit. Upon completion, clients receive a recording of the operation. All files are date and time stamped to ensure the process is traceable for auditing purposes and a record of gas detection readings is issued on completion of each clean. The truck telemetry system provides real time information to clients, so they can monitor energy consumption and waste generation.

Robotic Tank Cleaning

Four main robotic tank cleaning services are available to a range of companies across the UK and Europe. These include Fixed Roof, Floating Roof, Coned Floor and Heavy Fuel Oil Tank cleaning. A recent 50m Fixed roof, cone-up floor crude oil (black) tank clean for Phillips 66 at their Humber Refinery, demonstrates how ReGen Robotics has established a new era in safety and efficiency for tank cleaning. In total, 536T of sludge was removed from the tank, with 92T of water consumed during the entire tank clean. Traditionally it would have taken a team of six men 95 days to complete the clean, in comparison Re-Gen Robotics’ three-man team took, 43 days i.e., 1,520 robotic hours, to do the job. Thirty of those days were spent on sludge removal alone. Overall, man hours onsite were reduced from 12,160 to 1,032 and the standby rescue team was not required. Re-Gen Robotics is classed as a medium risk contractor therefore less paperwork and permits were necessary, there was also no requirement for capital outlay or spading of the tank, which can take a full day to complete.

Control Room

Upon completion of the tank clean, client feedback was extremely positive. This was the first tank to be completely cleaned and inspected by the company, worldwide, without the need for human presence in the tank. Phillips 66 has acknowledged

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the success of the no man entry tank clean because the system could be adapted to suit their individual needs and time frames - a one stop shop for safer, faster, and cost-effective tank cleaning, with measurably better results than the man entry method.

robotic tank cleaning solution. The patent covers its all-in-one mobile vacuum tanker and apparatus, integrated cranage system, custom designed external and internal adjustable hydraulic ramps, and ancillary equipment for its robots.

Re-Gen Robotics was the first company to tackle, head on, the rising number of confined space deaths in the oil industry, by offering clients 100% no man entry robotic tank cleaning. They have single-handedly revolutionised safety in tank cleaning and there has been a fundamental shift in attitudes toward safety.

As the sole authorised provider of this innovative technology and service in the UK, what they have created is a market leading offering, supported by a fully equipped team with the expertise and confidence to take their business to global markets. Re-Gen Robotics fully patented their equipment to protect their intellectual property because the company, as the sole authorised provider of this innovative tank cleaning technology in the UK, has unilaterally revolutionised safety and the service method in

In May ’21, Re-Gen Robotics was granted a UK Patent No.2585331B, ‘Zero entry sediment removal from storage tanks’, for its fully contained

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this sector. Safety and protection of personnel during tank cleaning services are of the utmost importance to the team at Re-Gen Robotics. At no time during the cleaning process is there a requirement for human presence in the confined storage container. Their patented equipment simplifies the entire tank cleaning process. The closed loop cleaning system reduces cleaning time by up to 80 per cent, significantly decreasing downtime and loss of production whilst oil tanks are not operational. The patent sets them apart from competitors who have traditionally paid lip service to safety while allowing personnel to carry out manual tank cleaning services, where they were

exposed to dangerous, physically, and psychologically demanding shifts, ultimately risking injury and fatalities. The team is working hard on several new patents that will allow them to carry out more and more diverse tasks remotely, including a tank mapping localisation system and plans are in place to develop existing robotic equipment further to accommodate green fuel storage. Managing Director, Fintan Duffy says his patented tank cleaning service is transforming safety within the tank cleaning industry and is adding value to his clients’ reputations and bottom line. “We are loaded with cutting edge technology and expertise with proven results guaranteeing maximum quality, reliability, and safety. “For the last three years our equipment and service have been meeting the highest safety standards and with our exclusive knowledge of robotic tank cleaning, we’re able to develop solutions that are tailored to generate added value for our customers. “From our innovative robotic technology to our first-class service delivery, clients benefit from our unrivalled experience and pioneering expertise.” Most recently the company announced the completion of their £1million headquarters. In addition to

high specification offices, a hi-tech engineering and robotics hub has been designed to house the company’s research and development facility with bays installed to service their growing number of robots and tankers. Mr Duffy said the expansion marked the continuation of a fast-moving three years in the company, he said: “The last few of years have been an exciting time for our business. We’ve made over £7 million investment across several key areas including our people, tech and service offering, in preparation for significant international growth.” Staffing levels at the company doubled last year taking headcount to twelve, with more Design Engineers, Robot Operators and Project Managers being recruited in Spring 2022, to meet demand. In December 2021, the company was recognised with three awards at the Energy Industries Council Awards, including the Innovation Award, the Sustainability Award and the prestigious Company of the Year Award.

Additionally, the company has been shortlisted in the Safety Technology and Outstanding Achievement categories for The Global Tank Storage Awards 2022. Re-Gen Robotics intends to double head count again this year and by Q3 will also double capacity as they head into mainland Europe. By the end of Q4, they hope to have negotiated their first international tank cleaning contract. In less than three years, Re-Gen Robotics has eliminated 10,000+ hours of CSE cleaning in tanks. Over 30 tanks have been cleaned and the first worldwide, 100% no man entry tank cleans for oil majors such as Shell, P66 and Vermilion, with Valero’s scheduled to be completed ahead of time. The success of their service has led oil majors to commit to end manned tank cleaning across their operations by 2025. For more information, visit www. regenrobotics.com

The EIC praised Re-Gen Robotics for applying their 100% no man entry robotics technology to ‘reduce the personal risk of a routine activity that many people are not aware of but is an essential industry task’.

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N AT U R A L C A P I TA L A N D E N V I R O N M E N TA L DRIVERS FOR BUSINESS

Companies may have made net zero pledges and commitments at a corporate level, but what does it really mean for the operational parts of the business?

transition and decarbonisation. Companies may have made net zero pledges and commitments at a corporate level, but what does it really mean for the operational parts of the business?

he Environment has become an increasingly important topic for all businesses over the last two years, as there is more data that supports our understanding that we are depleting the earth’s resources in an unsustainable way, and also partly COVID related and partly due to the Attenborough and Thunberg effect. Extreme weather events and more recently commitments from the COP26 summit and the Environment Act receiving royal assent have all continued to drive the importance.

The concept of Natural Capital isn’t new: the term was first used nearly 50 years ago. However it is only in the few years that it has increased in prominence and been recognised as increasingly important in considering the real value that the environment has in business decision making.

There are likely to be significant

Natural Capital revolves around the concept that non-human life produces the goods and services that are essential for our survival. In Figure 1, you can see that Natural Capital can be split into 2 key areas, these being stocks of our natural resources - these physical ‘stocks’ also provide flows of benefits called ‘ecosystem services’. These provide us, the population, with the means for healthy lives and underpin all economic activity. However we are using our

challenges ahead for all businesses; related to climate change as well as business resilience and climate adaptation. In addition there will be challenges associated with energy

natural resources in an unsustainable manner, we are depleting our natural resources in such a way that is we’ve never seen before in human history. Natural resources provide ‘benefits’

Previously there was an awareness of climate change but many people didn’t expect that it would have an impact within their lifetime. Increasingly, we are now seeing climate related impacts with extreme weather conditions globally, together with wildlife and species in decline.

There’s a further fundamental impact that is becoming increasingly important for businesses to consider and that is the depletion of Natural Capital and ecosystem services and the benefits that these provide for human life.

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zero. For all businesses, the focus upon environmental performance is increasing, driven by a number of environmental drivers which are challenging for businesses. These are: Climate Risk and Resilience, Energy Transition, Circular Economy and Natural Capital.

Figure 1 - Natural Capital

which are essential for the survival of human life. Figure 2 below lists ecosystem services, such as Provisioning, which is the production of food, water, fibre, soil etc. Interestingly, there is also a ‘wellbeing’ aspect to the benefits we derive from our natural resources. Looking at this from a business perspective, if you’re a business which doesn’t have large areas of undeveloped land as part of your Figure 2 - Ecosystem Services

business assets, the importance of Natural Capital may be less obvious. However, Natural Capital, and your impact upon this, is still a really important consideration and all businesses will need to understand their impacts and dependencies on natural capital in the future. Halting and reversing the depletion of our Natural Capital, delivering nature based solutions and biodiversity net gain are at the heart of trying to limit climate change and achieving net

Climate risk and resilience Climate risk and resilience is an important issue for all businesses. How are businesses going to protect their operations and assets from the impacts of climate change, extreme weather events, supply chain shortages or disruption? If you consider the climate impacts on assets, supply chain and businesses, there is potential for a big financial impact. Energy Transition How can businesses with fleets of diesel vehicles move to low carbon transport? How costly will this be to businesses? What will the supply chain impacts and associated costs be? Circular economy and Resource Efficiency How do businesses achieve circularity? And how do they achieve supply chain sustainability? Natural Capital Previously Natural Capital and biodiversity was very much regarded as being separate from corporate reporting requirements. However, natural capital is now at the heart of

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environmental drivers and increasingly being seen as an integral part of these as well as being introduced to corporate reporting. The World Economic Forum’s annual global risk report in 2021 found that the top three risks by severity over the next ten years are all environmental: climate action failure, extreme weather and biodiversity loss. The diagram below demonstrates that there is a wide range of increasing environmental drivers from corporate reporting, such as TCFD, to new legislation such as the Environment Act, to understanding the business risks associated with declining biodiversity and natural capital. If your business measures and reports through Carbon Disclosure Project, from this year (2022) that reporting will include a module on biodiversity. Businesses will have to provide details of board-level oversight of biodiversity related issues in addition to details of the impact of the value chain on biodiversity and report on actions to progress biodiversity related commitments, and for Figure 3 - Environmental Drivers

many businesses this will be a real challenge. Environmental and Social Governance (ESG) Increasingly, investors are using ESG reporting to understand that business’ environmental impact and performance, and businesses are now using a Natural Capital approach to create a ‘baseline’ of environmental impact and more importantly identify how to reduce their environmental impact. Environmental performance is increasing becoming important to investors. Taskforce for Climate Related Financila Disclosure (TCFD) At present, this is voluntary. However, from April 2022, it will be mandatory for very large businesses. Taskforce on Nature-related Financial Disclosures (TNFD) This is being developed. The TNFD will likely have a similar impact to the TCFD, but from the perspective of nature and biodiversity. The beta framework for TNFD will be released in March 2022. Key SDG - United Nations Sustainable Development Goals TCFD – Taskforce for Climate Related Financial Disclosure CDP – Carbon Disclosure

Science Based Target Network Increasingly, businesses are signing up to Science Based Target Network, and the criteria for science based targets is tightening. Therefore, businesses will have to create action plans for the short and medium term. The Science Based Targets Network is an expansion of climate-related reporting and targets to broader nature-related disclosures and strategy. What about the challenges for those companies who are part of the supply chain? You may not be reporting to Science Based Targets, if your customer is reporting to Science Based targets, they’ll increasingly be looking to their supply chain to have carbon reduction plans for example and to report emissions. The environmental landscape is changing rapidly and business are having to get to grips with a wide range of issues and reporting requirements, those that embrace this early, take proactive steps and start working on this will definitely be in an advantageous position. Much of this is emerging and there is often not a ‘right’ way to do this or a one size fits all approach. Often the starting point is starting to establish a baseline data, this will not always be straightforward but this can be improved and refined over time. Those business that don’t start to understand their impacts and dependencies are likely to face increasingly greater challenges as their competitors start to see the advantages of being on top of this.

Project ESG – Environmental and Social Governance TNFD – Taskforce for Nature Based Financial Disclosure

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To know more, contact Stewart Lenton (slenton@slrconsulting.com) and Sue Swain (sswain@slrconsulting. com). Visit www.slrconsulting.com

News News

News Jo raises headline vital money new headline to help new people headline affected new byheadline spinal cord injuries Debit UM Terminals’ od molorae Quality nam,Planning sandist,& quiatem Performance necabo. Manager Itatur, que Jo Winning in ped quas has successfully ma voluptat completed ut moluptiisa id charity ma adit swim quasiti challenge il maximand laturiraised dolorepe vital con money rerum to adic support to consed peopleeum, affected sectoby earume spinal cord coriassimin injuries. Between praectem October qui tes andparchicae Decemberporiatiunt last year, liquam Jo took qui part ommolo in the Channel berende Swim nderum Challenge vellitae – the etaimunte beingmod to swim moluptat the length excepro of the rrorissusci English Channel doluptur (22simaximus miles) in 12aut weeks. pa dolo Jo, ainvent, keen velicabo. swimmerEt who venis is based nos amat dolentus. UM Terminals’ Liverpool head office, completed the challenge at her local Archil pool eturi in Shrewsbury sum ipsam, in just ni beri over resed eight quas weeks. doluptae Jo raised nossit, £1150 estibus. in donations Sequidi from family, genihillum friendsipsus and the etUM amGroup rati berum charityque committee suntore with perias W&R elibus Barnett ut dolupta – UM Terminals’ sint dolent holding imporescompany tiusciis evel – contributing ipissunt alitat a maximetur? further £650. Aspire ensures that everyone with a spinal Adicid cord injury quohasello the opportunity corecti officil to live iberiatempor an independent sita and quefulfilled delesed life.mos The doloratet charity receives res earchil no statutory liquunt destrum funding, quo so every elestiur, penny consed raisedeum through volest, the illendae Aspire Channel nosam doluptis Swim helps sit asperum with its dolupta important tquiati work. onetur One person aut modi every ipsusam four hours et is ommodi paralysed re voloreptas by a spinal solorio. cord injury. Axim qui sum iur, sinimus dandae percipid ut exceat. IsJoium said:sum “The Aspire quo disciet Charity laboribus, is a brilliant tem organisation res moles and qui the fundraising acimoluptati it rereceives derspid from ma events doluptatis such autendu as the cipsandios Channel Swim voluptis Challenge alibus qui aredit vital autin quae supporting voluptatus the work eationsed it is able ma todis do with people affected by spinal cord injuries. I was delighted to complete the challenge in just over eight weeks and really enjoyed the experience. It was also great to get back into a routine after all the lockdowns

magnis and I found eos molorror it greatserrum for mysumque general nimoluptat wellbeing. Ique made quia a point sant of ratiusdam blogging quibus after every atemswim faceres to keep es miliquis peoplesunt who aut so arum kindlyaccuptatiur donated updated simolor roratatia as to my volorrum progress. Involuptibus addition to the invenemodit donations eos fromsinfriends poreped andquo family, corpora I am hugely quam nosseque grateful natet to my quiatur, colleagues aboreres ateum UM laboria Terminals nemand eosae to the quistor W&R epelect Barnett emporio charity committee quibus sam forsin their pelent generous que aut contributions.” est omnisitatem. Bus verovidusant as atet, et aperchic tempelectiam arit aute Jo added: conetus “I found re odi the comnis swimming repudae to be plabo. quite Optatem therapeutic, quidebis but I also sapisbecame parum resti quite volorempor competitive rem with exereium myself – haruptatur? wanting to Excestorem push myself sitat. to achieve quicker targets week by week. It’s Bore certainly maiorem something quuntio I’ll be keeping nsequat up urestrum with, hopefully acepewith rerferiosa more challenges dolorem porpore to come.hendis Wild swimming et ad quaspiet is next! dit, I’ve sintibus timed myself repudam, at acorem 48-minute lam fuga. mile Equatus now, which eaprobably nimi, tem isn’t very rempele quick, niminctibus but I’m hoping a quitocullabo. get quicker Endande and con complete pos cus qui another occatem challenge la corrorepe this ipsam year.” diciis eum utenis am is ulpa quatis eum facearum res quaspedicita ipsapiteniet Bryan Davies, mos re venditat. UM Terminals’ Managing Director, said: “We were Ga. onlyDelectet too happy inimus, to support temporrJoovidus in her deria fantastic porecta fundraising quiamus aerunt efforts. velibus, As a voluptatiate business we quam have a audae. strong charitable Uptatus aperem ethos and arum lookquam to support Equo aeatur, range in of remporiam worthy causes.” sit ium ni unt que sum quiam eos quiscidebis si asperciat volorep UM Terminals taepro dolori is one dolupta. of the UK’s leading bulk liquid storage specialists, operating out of 8 terminals, strategically located across the UK, handling over 40 different products.

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EUROPEAN GREEN DEAL: A CHALLENGE FOR INDUSTRY

The Green Deal is the EU’s main growth strategy to transition the EU into a modern, resource-efficient and competitive economy. And large scale transformation requires new solutions.

he European Union has unveiled its strategy towards a “green economy”, and by mid-century, human activity on the continent is to become environmentally neutral. The new directives, plans and statements are very ambitious: but how will they be implemented in practice?

€1.8 trillion on transformation Several years ago, the European Union unveiled its path towards a green economy. The goal is for zero environmental impact of human economic activity by 2050. Against the backdrop of changing climate, brand-new environmental drives have now emerged: from reusing and recycling clothing to upcycling and, crucially, changes in technology at large industrial facilities.

that will leave no-one behind. ‘Not one person and not one place will be left behind,’ the European Commission emphasised when unveiling the plan. Indeed, against this background, the NextGenerationEU Recovery Plan and the EU’s seven-year budget envisage a package of €1.8tn for transformation. This investment is meant to radically change the everyday life of all across the continent: from the end to the sale of internal combustion engines to the transition to electric cars and hydrogen-powered vehicles as well as large-scale changes in industry. However, unlike some of the changes toward the energy transition, when it comes to the transition of the processes occurring in industries, much more needs to be done in order to raise awareness of the scale of the challenge ahead. In fact, it is usually easier to build new facilities using cutting-edge technologies than to overhaul existing sites, and the European Union is a global factory for processing and producing literally everything.

The “Green Deal’’ concept has a large-scale goal behind it: to turn the EU into a modern, resource-saving,

PKN Orlen: Transformation in a decade ‘We know full well that the business segments that are our strengths today will require profound changes — for which we are well prepared. In recent years, we have taken consistent

and competitive economy. This plan rests upon three key pillars: zero net greenhouse gas emissions by 2050, economic growth decoupled from resource use, and a transformation

steps to effectively strengthen the Group, preparing it for the upcoming transformations. We will spend a total of about PLN 140bn (€3.06bn) on the implementation of our strategic

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Product sedimentation is a significant issue for many manufacturers. Firstly, this means physical loss of the product. Secondly, the tanks require cleaning — a lengthy, cumbersome and expensive process.

goals,’ reports the press service of PKN Orlen, a Polish oil industry corporation. Indeed, the company has unveiled its own incremental strategy to 2030. By then, around a half of the Group’s profits from crude oil processing will be derived from the petrochemical business. The company is set to ramp up its capacity in olefins and other base products, and at the same time strengthen its position in the production of polymers (a business line with attractive growth potential, the concern noted) by extending the value chain and entry into compounding and concentrates. At the same time, the share of specialty high-margin products (such as phenol and aromatic derivatives) will grow from 16% to approximately 25%. Recycling and biomaterials will become new branches of the petrochemical segment. ‘By 2030, the Group will expand its waste processing capacity (mainly plastics) to 0.4 million tonnes, while introducing advanced closed-cycle technologies,’ the PKN Orlen press release explains. New standards Such large-scale transformation requires new solutions. ‘We recycle waste, residues and innovative primary products into renewable fuels and eco-friendly raw materials to make plastics and other materials,’ says the Finnish Neste. For example, renewable and processed raw materials become part of crude refining. The French oil and gas company TotalEnergies

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company TotalEnergies has also presented its vision of EU energy by 2050. And the ultimate result will require adaptation of the processing capacities. Such adaptation — which is essentially a transformation — is highlighted in the company’s strategy. ‘Total’s sales mix will become 30% oil products, 5% biofuels, 50% gas (including biomethane and lowcarbon hydrogen) and 15% electrons, essentially renewables,’ said Patrick Pouyanné, head of TotalEnergies, presenting the strategy. Against this background, new industry standards are now emerging. Shell, for example, has joined several of them: the Science-Based Goals Initiative, the Transition Pathway Initiative and others. ‘We have to transform the area of our refineries from the current 13 sites to six highly profitable energy and chemical “parks,” and cut the production of traditional fuels by 55% by 2030. We plan to increase the volume of the chemical products portfolio and boost cash generation by our chemical business by 2030, compared to the medium-term perspective, by $1–2 billion annually. Chemicals will be produced from recycled waste (circular chemicals), and we intend to process 1 million tons of plastic waste per year by 2025,’ the Shell press service reported. Royal Vopak N.V., a Dutch multinational

company that stores and processes products ranging from chemicals, oil, gases and LNG to biofuels and vegoils, implements technical solutions at its terminals that reduce emissions of volatile organic compounds (VOCs). ‘VOCs can cause air pollution and may pose a health risk; we therefore assess not only the emissions themselves, but also their overall social impact — which we aim to reduce by at least 20%. We work hard to make our carbon footprint smaller and our ambition is to be climate neutral by 2050,’ the company said. Strategies alone won’t help However, the energy transition will not only present opportunities, but challenges too. European Environment Commissioner Virginijus Sinkevičius, whose portfolio includes environmental issues, water resources and fisheries, has noted that ‘the issue of climate change is multifaceted: unsustainable agriculture, industry, excessive extraction and use of resources and many other human activities impact biodiversity, ecosystems and the climate.’.

them, the Green Deal goals will not be achieved,” says the European Commissioner. For instance, waste accumulation is inevitable during the production, storage and transportation of any complex liquid products. Responsible companies recycle and properly dispose of them. This, however, remains a challenge even for the most cutting-edge businesses. For example, cleaning a crude oil or fuel oil storage tank requires specialist equipment. The surfaces are washed at pressure values so high that they could even crush rocks. For companies such as Ekovalis, a Mažeikiai-based specialised cleaning company, whose services include the removal of blockages and cleaning various containers from lime, solid deposits, fats, oils and petroleum products, day to day work involves the use of vacuum hydrodynamic machines and special chemicals. However, a key challenge is represented by the disposal of hazardous waste.

This also applies to sectors such as those involved in the accumulation, recycling or disposal of production waste. And for the Green Deal to succeed much more will be needed.

Avoiding losses Yet another challenge is that represented by losses. Before the course toward a green economy, they were included in the “inevitable losses” line.

“We can diligently come up with strategies and action plans, but unless the public cares, if the changes proposed by politicians are alien to

For instance, sheer storage of fuel, chemicals, oils (namely, any complex liquid product) results in volume loss

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of up to 5%. This, however, varies among different products and each case is unique. Nonetheless, all these products lose their qualities during transportation and storage. Heavy particles settle to the bottom, lighter ones rise and evaporate. The same processes occur with vegetable oils. During storage, a precipitation appears. All these physical processes affect most ordinary products, leading to losses in both quantity and quality. ‘What is 5%? For large enterprises, this represents tens of millions in losses. Just 5–6 of the EU’s major refineries have a capacity of 2 million barrels of crude oil per day. That’s crude alone. Let’s even say it’s one million barrels daily. And 5% of that is lost. Even a loss as small as 1% still equals 10 thousand barrels per day, which translates to $860K lost daily and $309 million annually. And that’s just the 5–6 top refineries in Europe. In addition to losses, there’s also sedimentation in the tanks — that sediment must be cleaned, transported and disposed of properly. That means extra costs,’ says Andrejs Višņausks, Member of the Board at SABER EVNAT (Latvia). ‘We asked the question: what can be done? Any product is affected by physics. The solution we have come up with is a device that prevents the very physical process of disintegration into fractions. This technology has existed for a while now — jet mixing. It involves creating a flow inside the tank that would move in a certain direction

and at a certain speed to enable mixing the liquid. However, back then, there was no computing power or computer modelling or the knowhow that we have now implemented into our product. Our technological solution is more than mere washing away bottom sediments or reverting the product to its original quality. Our product prevents decomposition in the first place. The problem doesn’t even arise,’ Andrejs Višņausks explains. Mixing technologies come in many flavours. Product sedimentation is a significant issue for many manufacturers. Firstly, this means physical loss of the product. Secondly, the tanks require cleaning — a lengthy, cumbersome and expensive process. The sediment must then be taken out for disposal or recycling. And disposal as such cannot happen anywhere. Companies are constantly looking for solutions. The transformation challenge However, the biggest challenge in this global transformation for businesses will be inaction. The entire European Green Deal doctrine can only become a reality if businesses take action. Indeed, it is businesses that will have to practically implement the ambitions and plans to enable the transition. However, this will present

European Green Deal concept note that there are some hurdles still with regard to the introduction of new and innovative technologies in some quarters. On the one hand, there are company executives generally interested in both transformation and lower losses/bigger profits that come with the adoption of new solutions. On the other hand, there are technical specialists who are busy with their routine affairs. They don’t always have the time to discuss something new: they have enough on their plate as is. For many, natural losses are inherent to all processes and products, there is a budget, an established system, processes are working, and there are instructions. Everything is fine already as it is — there is no point in changing something today. Maybe sometime in the future. And this future — since EU industry has agreed that 2030 will be the turning point, and the net zero goal is to be achieved by 2050 — will come tomorrow.

challenges but opportunities too. Some developers of advanced solutions fully compliant with the

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T H E PAT H WAY T O THE FUTURE

ur industry is in transition, as we begin to leave behind the ‘legacy liquids’ we have been processing, transporting and storing for a century, and introduce the new, more sustainable fuels which will bring with them new processes, new challenges and, of course, new opportunities. Therefore, it has never been more important for us to turn our attention to the future.

There is a recognition, within our industry, that we need a new generation of workers who can lead our sector into a safe, profitable, low-carbon future.

For more information, visit www. reynoldstraining.com

How are industry bodies and qualification awarding organisations working in concert with the industry as a whole and training providers such as ourselves, to help equip the workers of today with the skills they need to pursue a career pathway into a successful tomorrow? People entering our industry today need to be assured that they have the skills and abilities they need to adapt to a changing work environment, to ensure they can continue to have a successful career for decades to come. And their employers need that same assurance to ensure their businesses can continue to function and grow.

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M AG AZ I N E

IChemE and our Apprenticeship Pathway When we created the pioneering Bulk Liquid Storage Apprenticeship, we worked with GQA and Ofqual to develop our Level 3 Bulk Storage Operator Technician qualification, that not only underpins the programme, but also can be undertaken as a standalone qualification for experienced personnel looking to develop their career. We then worked with the standards body, IChemE, to ensure that learners who have completed this qualification would be eligible to apply for Engineering Technician Status and, therefore, be equipped to continue along their chosen career pathway. This helped ensure that learners who have completed this course either as part of their Apprenticeship or as part of their CPD (Continuous Professional Development) - will be able to demonstrate professional status and standards; thus openingup wider career opportunities in the fields of not only operations, but also maintenance, engineering, management, safety and quality control. All of this helps workers continue down their career pathway ultimately leading, if they want to take it that far, to achieving Chartered status. This IChemE Engineering Technician approval process requires learners to be able to

demonstrate their use of process related knowledge as well as their technical and practical skills. These include the ability to: •

• •

•

Review, select and use appropriate techniques, procedures, and methods Use appropriate principles Identify problems and their causes, achieve solutions and evaluate the result. Identify, organise and use resources effectively, with consideration for cost, quality, safety, security, and environmental impact. Accept responsibility for your work or that of others

These core behaviours, and others, show what qualities workers need to demonstrate, as an individual, working in a professional environment. Those behaviours can adapt and evolve to any storage environment - they ensure that workers can continuously adapt and evolve, without losing sight of the basic principles that underpin safe and effective processes. IChemE and other organisations, such as Cogent Skills, UKPIA and, of course, the TSA, oversee and maintain these standards within the industry, to ensure businesses continue to thrive in a safe and sustainable way. TSA and Career Pathways As part of its important leadership

role in this, the TSA has issued a Careers Guide which states, in its introduction: “The bulk liquid storage industry offers a diverse range of career opportunities in business, operations, engineering, safety, marketing, science, IT, supply and trading and many other disciplines … Whatever skills you have, chances are the bulk liquid storage industry needs them.” It then goes on to list a wide range of careers that candidates could pursue within our sector - from the obvious engineers and terminal operators, through to software developers, lawyers and tax accountants. Beyond this, the TSA works with its member companies through a dedicated Human Resources Committee to identify career pathways within the sector and promote these externally. The TSA also acts as an authoritative source of information for those who wish to work in the bulk liquid and energy infrastructure sector. The TSA is an Association and, as such, also works with other key stakeholders, such as trade associations and skills bodies, to identify skills challenges and opportunities, and collaborates on addressing any changes or new developments required.

Reynolds Training and Career Pathways At Reynolds Training Services, our ultimate goal is to train workers who not only have the skills and competencies to enter the workplace as competent and safe employees, but who also have the tools they need to ensure a continuing career pathway within the sector. We’re providing careers, not just qualifications. To that end, we offer a range of ‘entry level’ qualifications that open the door to those who want to enter our industry. Then, once they’re on the road to success, we offer a range of avenues individuals can pursue, depending on their interests and aptitudes. In conclusion, there is a recognition, within our industry, that we need a new generation of workers who can lead our sector into a safe, profitable, low-carbon future. These young people will bring with them a lifelong concern for the environment, an energetic imagination and an innovative spirit that will help our sector find new ways to flourish, whilst creating everhigher standards of performance, efficiency, environmental protection and workplace safety. This is the challenge we face; this is the opportunity we must take.

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Traditional steel grating v GRP s we all know, steel is widely used for access equipment such as ladders, stepovers, walkways and bund covers etc, in tank storage facilities. Steel is strong and durable however it can also be labour intensive in corrosive environments, generally requires lifting equipment due to its weight and maintenance can be time restrictive, due to the hot works permit system. Steel can also bend on impact, often resulting in damage which requires replacement.

A growing alternative to steel for these products, is Glass Reinforced Plastic (GRP). GRP is lightweight, anticorrosive, non-slip, non-spark, does not require a hot work permit to install and maintain, and is produced in a wide range of access products. GRP also deflects impacts returning to its original form which reduces the need for costly repairs & replacement.

John Bell Pipeline is the market leading supplier of Linepipe, Pipe-fittings, Valves & Steel requirements. For more information, visit https://www. jbpipeline.co.uk/

TSA Associate Member JBP are one of the UK’s largest stockists of GRP grating and GRP structural products, with an in-house cutting and fabrication facility, producing barriers, handrails, stepovers, inspection platforms, gantries and walkways. For more information, visit www. jbpipeline.co.uk

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Tank Storage Conference & Exhibition 2022 Presented by TSA

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

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

www.tankstorage.org.uk/conference-exhibition

I s s u e

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

TSA

Tank Storage Associa on

The voice of the bulk storage and energy infrastructure sector

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

T. +44 (0)1462 488232 Follow us

TSA Insight Magazine - Issue 9

info@tankstorage.org.uk

SUSTAINABILITY 15

CORPUS AT THE APEX HYDROGEN • CORPUS CHRISTI IS PLANNING TO BECOME THE MAJOR SOURCE OF RENEWABLE HYDROGEN IN THE US, IN PARTNERSHIP WITH TECHNOLOGY LEADERS AND TERMINALS APEX CLEAN ENERGY, backed by funds managed by Ares Management Corp, has signed a non-binding memorandum of understanding (MOU) with the Port of Corpus Christi Authority (PCCA) and Epic Midstream, with the aim of developing a leading green hydrogen production, storage, transport and export operation, including a newly constructed dedicated pipeline and a green fuels hub to be located at the Port of Corpus Christi on the Texas Gulf Coast. As currently envisaged, the project will produce green hydrogen and other derivative green fuels in volumes not yet seen in the US, with additional scale possible by the end of the decade end. Apex expects to use its industryleading portfolio of wind and solar projects currently in development in Texas to power facilities producing green hydrogen and derivative green fuels products. In addition, Epic Midstream will leverage its pipeline construction and operating expertise to accelerate the development of a new, dedicated green fuels pipeline. The project would also aim to leverage and develop existing and new storage, processing and export infrastructure sited on land owned by PCCA. “Together with Ares, Epic and the Port of Corpus Christi, Apex would leverage the highest-quality wind and solar resources in Texas to help decarbonise difficult-to-abate

shipping, fertiliser, chemical and refining sectors - and include optionality for global export. This would be green fuel production at gigawatt scale,” Apex said in a statement at the announcement of the MOU. ONGOING BATTLE This MOU, signed in late February, builds on a previous MOU between Apex and PCCA, signed in May 2021, to develop renewable energy infrastructure on PCCA-owned property to support the production of green hydrogen and optionality to provide renewable power directly to the port and its customers. “We are excited to build on our existing relationship with PCCA to develop and build what we believe will be one of the largest green hydrogen projects in the country to date,” says Keith Derman, partner and co-head of Ares Infrastructure and Power. “The project demonstrates the type of

innovative, broad and collaborative approach across industries and stakeholders that we believe can deliver novel energy solutions that help accelerate the transition to a low-carbon economy and combat climate change. Further, this underscores Ares’ leading capabilities in providing differentiated solutions to a growing asset class as we seek to drive returns for our investors through opportunities aligned with their sustainability goals.” “This initiative is exactly the type of interdisciplinary collaboration that would enable scalable projects that move the needle on diversification of the energy marketplace,” adds Jeff Pollack, chief strategy and sustainability officer at PCCA. “This monumental potential project would directly contribute to the burgeoning clean hydrogen hub at the Port of Corpus Christi and would directly support our ambitions to cultivate world-scale hydrogen exports as our part in national decarbonisation and energy balance of trade objectives.” For Epic Midstream, the project offers the opportunity to build on its existing pipeline and terminalling network, which included some 700 miles (1,250 km) of pipelines bringing crude oil and NGLs from the Permian and Eagle Ford basins to the Corpus Christi market, as well as its own and third party export terminals. www.apexcleanenergy.com www.epicmid.com www.portofcc.com

industries - including the transportation,

 CORPUS CHRISTI’S GREEN HYDROGEN PLAN WILL LEAN ON EXISTING INFRASTRUCTURE BUT PROMOTE FURTHER DEVELOPMENT OF PIPELINES AND TERMINALS

WWW.HCBLIVE.COM

16 SUSTAINABILITY

ranges from engine and piston performance, hull build-up, to even contact with ice. This data is then used to allow efficient and proactive maintenance, leading to a further reduction in emissions.

SWEDISH TANKER OPERATOR Terntank has added two new 15,000-dwt chemical/product tankers to its fleet that are already making a big difference to the carbon footprint of its operations in northern Europe. The two ships, Tern Island and Tern Fors, were built by China Merchants Jinling at its yard in Yangzhou and are equipped with dual-fuel power plants capable of running on LNG or liquefied biogas (LBG) as well as traditional fuels; moreover, they are also equipped with a battery pack and

operate virtually emission-free during port operations when shore power is available. The new ships, designed by Terntank and Kongsberg Maritime, are also fitted with Kongsberg’s digital solutions that optimise voyage operations by constantly adjusting the vessel’s speed and, through slow steaming, to meet its agreed time of arrival and move directly into port, instead of dropping anchor and waiting to berth. This also ensures compliance with the BIMCO clause on slow

DO THE RIGHT THING “The delivery of Tern Island and Tern Fors mark our ongoing journey to evolve and learn, in respect of continuously developing sustainable shipping across all range of our operations,” says CEO Claes Möller. “The innovative ship design of Tern Fors and Tern Island unites technical and digital solutions that optimise voyages, achieves a drastic decrease in emissions and most significantly assists our crew onboard in daily operations. “We are passionate and our philosophy is that it should be easy to do the right thing, especially for our crew which are the core of our business,” Möller adds. “To make this a reality, it takes a lot of hard work behind the scenes and the enhanced insights which the digital solutions provide help us to further achieve this.” The ships use what Terntank calls its Hybrid Solution®, consisting of a battery pack, shore power connection and a DC-Link System, which not only enables the ships to perform fossil-free port operations but also enables peak shaving to reduce emissions even further. The battery packs also act as reserve to provide an energy reserve for power generation, limiting unnecessary parallel running of generators and provides a blackout prevention function that keeps the electrical network alive. Terntank has been working with the Port of Gothenburg on the shore power project as part of Gothenburg’s Energy Port Initiative, the first of its kind in the world. When complete, it will enable a reduction in carbon emissions from vessels in the port by 1,800 tonnes per year. Similar projects underway in Gävle and Pori will further reduce emissions from shipping in the Baltic Sea area. Both new ships will work alongside other

onshore power connection, allowing them to

steaming and tracks real-time savings. This digital solution offers enhanced their ‘just-In-time’ management, providing vessel-to-cloud data infrastructure capturing and aggregating quality data in respect of the vessel’s overall operation. The data gathered

Terntank vessels in a pool under the commercial operation of charterer North European Oil Trade (NEOT), a Finland-based fuel supplier, and will work mostly carrying bio products in and around the Baltic. www.terntank.com

ANOTHER LEAGUE MARITIME • TERNTANK IS CONTINUING TO REDUCE SHIPSOURCED EMISSIONS, WITH ITS LATEST TWO NEWBUILDINGS FITTED WITH A RANGE OF CARBON REDUCTION TECHNOLOGIES

 TERNTANK’S NEW SHIPS HAVE ALREADY CARRIED OUT THE WORLD’S FIRST ZERO-EMISSION PORT OPERATIONS IN GOTHENBURG USING SHORE POWER

HCB MONTHLY | MARCH 2022

WWW.HCBLIVE.COM

What’s on at StocExpo?

Women in Tanks

Networking

Find out why these inspiring women believe the tank storage sector is a great industry to be a part of

Meet old and new industry peers and create new business opportunities in a relaxed environment

Industry trends

Forty Under 40

Cutting-edge solutions and insights in important topics and trends within the bulk liquid industry

Recognising those with potential to become industry leaders in the future and those who have achieved greatness

Conference

The awards

Join the leading conference for terminal operators worldwide during StocExpo with industry experts

The prestigious awards highlight those that excel in a range of different categories

23 - 25 May 2022 | Ahoy, Rotterdam

HCB MONTHLY | FEBRUARY 2018

SUSTAINABILITY 19

never been done before. Furthermore, initial indications are that the CO2 captured is very pure, with little or no product contamination”, says Endresen.

THERE ARE PLENTY of options emerging as the global maritime industry seeks to play its role in the energy transition – as other pages in this issue of HCB illustrate. However, none is anywhere close to providing the zerocarbon option at the scale that is required. The use of exhaust scrubbers can go some way to reducing the emission of environmental pollution from ships but, following advances in carbon capture and storage (CCS) technology, some are looking at applying this to shipboard use. Norway-based gas ship operator Solvang has spent the past two decades looking at ways to reduce its environmental impact,

remove NOx, SOx and other pollutants from its ships’ exhausts. But the problem with carbon dioxide remains: there can be no combustion without a carbon output. “There are no easy solutions,” says CEO Edvin Endresen. “So we are looking for the big game changer: to avoid CO2 emissions by means of capture and storage.” In autumn 2021, Solvang set up a vesselscale CCS project in collaboration with Wärtsilä at the latter’s facility in Moss, Norway. A full-scale test rig sought to capture CO2 from main engine combustion before it reaches the exhaust outlets; a carbon separation process in the smokestack

INTO THE REAL WORLD The plan is now to move onto shipboard trials. An up-scaled version is to be fitted on Solvang’s ethylene carrier Clipper Eos, serving the 7 MW main engine. By the middle of this year, an electrostatic filter will be installed in the ship’s exhaust gas cleaning system in a first-of-itskind experiment. If all goes well, a carbon absorber and stripper unit will be installed later in 2023, together with modified liquefaction systems to cater for the deck tanks. Over 2024 and 2025, a complete CCS system will operate alongside the existing scrubber and exhaust gas cleaning systems, which will provide live data on the performance of the CCS unit. “The scheduled combination of CCS, scrubber and Solvang´s low-pressure EGR system will handle CO2, NOx, SOx, particles, CO and unburnt fuel from the heavy fuel oil (HFO) combustion. If applied to deep sea shipping as a sector, it constitutes a great step towards net-zero emission,” says Tor-Øyvind Ask, Solvang’s fleet director. Solvang puts it this way: without carbon capture, the best that can be achieved in terms of reducing greenhouse gas emissions from fossil fuels (including LNG and LPG) is between 10 and 15 per cent. This will not meet the net-zero climate goals. Indeed, if methane slip is included in the calculations, LNG may score particularly badly. With the application of CCS, HFO looks like the best bet on a well-to-wake basis, depending on the carbon input to any e-fuel and biofuel alternatives. And there will be competition for decarbonised fuels. “To expect all sectors to plunge emissions at the same time will not work. Air traffic will place the highest bid for e-fuel, leaving shipping to opt for other fuel types,” Ask says. “CCS is something we can do

putting in place equipment and systems to

removes CO2, which is liquefied and transferred to deck tanks, where is can be kept ready for injection into long-term storage or for reuse in industrial processes. So far, the tests have been successful. “The system already runs up to 60 per cent carbon capture on some engine loads, which has

within a few years. When the world has sufficient green energy, the captured CO2 can be transformed into electro fuel. Summed up, we offer a bridge into decarbonised deepsea shipping, thereby contributing seriously to our common future.” solvangship.no

CHANGE THE GAME CARBON CAPTURE • CCS TECHNOLOGIES HAVE A ROLE TO PLAY IN DECARBONISING DEEPSEA SHIPPING, SAYS SOLVANG, WHICH IS ALREADY LOOKING SERIOUSLY AT ITS POTENTIAL

 SOLVANG SEES ONBOARD CARBON CAPTURE AS OFFERING A BRIDGE BETWEEN CONVENTIONAL FUELS AND FUTURE, ZERO-CARBON ALTERNATIVES THAT ARE NOT YET AVAILABLE AT SCALE

WWW.HCBLIVE.COM

NEWS BULLETIN

TANKER SHIPPING

KIRBY COOL ON COVID

Kirby Corp has reported fourth-quarter net earnings of $11.0m, slightly less than half that posted for the same period in 2020, although there was a $5.7m one-off charge related to changes in Louisiana tax law. For the full year, consolidated revenues rose by 20 per cent to $591.3m. “Kirby’s fourth quarter adjusted earnings sequentially increased driven by improved results in the marine transportation businesses,” says David Grzebinski, president/CEO of Kirby. “Our inland business experienced improved market fundamentals due to strong refinery and petrochemical plant utilisation and increased customer volumes. As a result, our barge utilisation steadily increased during the quarter with an average in the mid-to high 80 per cent range. Favourable market dynamics also led to increased sequential and year-onyear spot market pricing, as well as higher rates on term contract renewals for the first time since the start of the pandemic. However, the quarter was not without its challenges as poor weather conditions yielded a 55 per cent sequential increase in delay days. In December, escalating cases of the Covid-19 Omicron variant contributed to crewing challenges.” Grzebinski is optimistic that 2022 will see a continuation of the recovery in economic and industrial activity, with a parallel impact on the inland barging market. He expects an increase in capital spending this year to meet that growing demand. However, growth in the inland marine business in the first quarter is expected to be “modest in the low single digit percentage range due to the impact of winter weather and the Omicron variant, which is resulting in crewing challenges, lost revenue, and incremental costs”. kirbycorp.com AVANCE ENJOYS INEFFICIENCIES

Avance Gas, one of the major VLGC owners, has reported timecharter equivalent earnings of

HCB MONTHLY | MARCH 2022

$143.0m for 2021, down slightly on the $144.1m posted in 2020. Operating profit remained stable but net profit fell by more than half to $32.1m. The VLGC freight market finished the year strongly, Avance reports, though much of this was due to inefficiencies in vessel operations. Congestion in the Panama Canal continues to absorb capacity through increased waiting times and also prompted many operators to shift the ballast leg from Asia to the US Gulf via Suez or around the Cape, which adds at least ten days to the journey. There is also growing congestion at discharge ports in Asia. Looking ahead, Avance says that US LPG production is strong and exports are predicted to grow by some 10 per cent this year, along with additional volumes from the Middle East. Much of this will be taken up by new propane dehydrogenation plants due onstream in China this year. Avance is also continuing with the sale of its 12-year-old VLGCs as it takes delivery of new dual-fuel units, the second of which is due for delivery this month. Sale of the 2008-built Thetis Glory was completed at

the start of March, netting a book profit of some $6m. www.avancegas.com BW SPENDS FOR THE FUTURE

BW LPG has reported 2021 timecharter equivalent income of $465.6m, down 15 per cent compared to 2020. EBITDA was down 25 per cent at $311.7m and after-tax profit fell 24 per cent to $186.4m. Spot voyage income was well down and finished the year in a weakening VLGC market, although some of this decline was compensated for by an increase in timecharter income. The company has also had a number of vessels in drydock over the year for retrofitting with LPG-capable engines and now has 12 dual-fuel ships on the water. Over the year as a whole, BW LPG invested some $92m in fleet upgrades. Looking ahead, BW LPG says geopolitical uncertainty clouds the VLGC market for 2022. Near-term rate volatility could be triggered by factors such as bunker price shocks, changing trading patterns, unexpected LPG inventory management and changes to shipping

TANKER SHIPPING 21

inefficiencies. “For 2023 onwards, despite the uncertainties from the heavy newbuilding delivery schedule and the implementation of IMO EEXI regulations, we remain confident on the long-term VLGC market as LPG remains a viable transition fuel towards decarbonisation and the use of cleaner energy,” the company states. www.bwlpg.com BIG BUCKS FOR BWEK

BW Epic Kosan, a specialist in small gas tankers, has reported 2021 revenues of $329.1m, almost 80 per cent up on the 2020 figure following the merger of the Epic Gas and Lauritzen Kosan fleets. EBITDA was up 58.5 per cent at $92.7m and net profit, before exceptional items, rose 76 per cent to reach $19.2m. Charles Maltby, CEO, puts the improvement down not only to the increased scale of the fleet but also to improved market conditions and effective cost management. For the year as a whole, average daily timecharter earnings rose 11 per cent compared to 2020 to reach $11,126, although average operating costs rose by 16 per

cent following the arrival in the fleet of semi-refrigerated and ethylene tankers from the Lauritzen Kosan merger. “It has been a year of delivering under pressure,” Maltby says. “We are not immune to global inflation, with our OPEX impacted in areas such as crew costs and lube oils. Covid-19 OPEX increases related primarily to crew change expenses and freight forwarding costs for spares, and increased offhire for our fleet as we positioned vessels to facilitate crew changes and meet quarantine requirements. We are grateful to our seafarers for their loyalty and perseverance. “2022 has begun with good signs for demand growth in residential LPG, increasing Asian and US petrochemical exports, and increased activity in European refining and petrochemical plants,” Maltby continues. “We anticipate 2.9 per cent growth in LPG seaborne trade over 2022, whilst smaller gas vessel fleet growth forecasts are 1.9 per cent before any scrapping, which should result in positive earnings momentum.” bwek.com

HGK TO GROW LOW-WATER FLEET

HGK Shipping has ordered another low-water gas tanker from Dutch yard TeamCo for its Rhine system fleet. The new Gas 95 vessel, due for delivery in the second half of 2023, will again feature a diesel-electric drive system, helping to further HGK’s plan to provide innovative and sustainable inland waterway shipping. “We’re continuing our journey towards sustainability with great determination with the Gas 95. At the same time, we’re arming ourselves to face the challenges of climate change by expanding our fleet that is able to operate in shallow waters,” says Steffen Bauer, CEO of HGK Shipping. “As a result, we’ll be in a position to safeguard supplies of raw materials for the industry despite increasingly frequent low-water periods on European rivers.” HGK Shipping expects to place an order for a third ship in the series this year, with four more planned over the next few years. hgkshipping.de FIRST DUAL-FUEL FOR IINO

Iino Kaiun Kaisha has taken delivery of Calluna Gas, its first dual-fuel VLGC, from Kawasaki HI. The new vessel will work on a charter contract to Equinor. “We will strengthen our relationship with Equinor by adding this new environmentally friendly vessel to our new timecharter contract with the company, and we will continue to strengthen our partnerships with important customers in Japan and overseas,” the company states. Iino has put sustainability as a core element in its strategy to 2030 and the construction of this dual-fuel vessel is part of that effort. The new vessel, which has a capacity of 87,200 m3, has an LPG fuel tank on the upper deck, separate from the cargo. Using LPG fuel will allow the ship to comply with the IMO 2020 regulation on sulphur oxide emissions and also significantly reduce emissions of CO2, NOx and particulate matter. www.iino.co.jp WWW.HCBLIVE.COM

22 TANKS & LOGISTICS

BRING IT ON HOME SUPPLY CHAINS • DACHSER REPORTS ON HOW IT IS HELPING ITS CHEMICAL INDUSTRY CLIENTS FACE THE CURRENT CHALLENGES IN LOGISTICS AND WHAT IT EXPECTS FOR THE NEXT FEW YEARS THE GLOBAL CHEMICAL industry has faced enormous challenges over the past two years, with the ongoing restrictions imposed to deal with the Covid-19 pandemic compounded by disruptions to trade caused by port congestion, rocketing ocean freight rates, labour shortages and geopolitical concerns. Those challenges have also come at a time when the chemical sector is growing but also facing greater demands for increased sustainability. Dealing with those challenges requires agility, which is something that a competent logistics partner can offer. “The chemical industry has been put under considerable strain over the past two years due to disruptions to supply chains, shortages of materials, and capacity bottlenecks,” says Michael Kriegel, department head of Dachser Chem Logistics. “It’s now a matter of using predictive planning to manage these difficulties so that global supply chains in the chemical industry run without interruption. “Companies are currently in crisis mode,” Kriegel adds. “They’re focused entirely on procuring capacity at affordable rates and working with their logistics partners to find solutions for maintaining their supply chains. But in the medium to long term, companies will begin making structural changes to their supply chains. Last summer, we conducted an internal survey that revealed that 70 per cent of the customers polled were considering regionalising their supply chains.” That is already causing a shift in production to be closer to the main markets for chemical

 A CAPABLE LOGISTICS PARTNER CAN HELP SUPPLIERS ENSURE THE STABILITY OF THEIR NETWORKS

HCB MONTHLY | MARCH 2022

products. “But this will take some time and in no way heralds the end of globalisation,” Kriegel says. “Reshoring or regionalising the supply chain completely would be sub-optimal as well as risky. However, this is about more than just regionalism. Ensuring the stability of logistics networks and uninterrupted supply chains calls for logistics networks with flexible structures. Our job as a logistics provider is to respond with alternatives while also expanding our own transport capacity, for instance through air freight charters.” AND KEEP IT CLEAN Chemical manufacturers, themselves keep to boost their ‘green’ credentials, are increasingly demanding lower carbon activities on the part of their logistics partners. Dachser is already using some electric vehicles and is investing in that sector. But few suitable electric trucks are yet available. “So, the main lever we have to

make chemical logistics more climate-friendly is still to optimise transport capacity,” Kriegel says. “At the end of the day, there’s nothing worse for the climate than empty runs.” Dachser is taking the same innovative approach to its warehouse operations, with one project involving the use of ground conveyors powered by lithium ion batteries and another using more efficient LED lighting. Furthermore, since the start of 2022 Dachser has only been buying electricity generated from renewable sources. “We’re also expanding our own production of power from renewables, for which we’re investing in expanding and adding new photovoltaic systems on the roofs of our logistics facilities and office buildings in Europe,” Kriegel adds. We have not seen the end of these challenges and changes, Kriegel says. “In addition to the topics we’ve already touched on — such as sustainability — important topics for us will be the driver shortage, digitalisation and supply chain resilience and the corresponding network mindset. “The current bottlenecks are giving many companies a wake-up call. They want to and must position themselves to be more resilient if they want to better protect their supply chains against potential dangers. IT security and IT resilience will also be among the top priorities, because secure data and the exchange of that data are what’s keeping the physical supply chain going,” Kriegel concludes. www.dachser.com

SECTION SLUG 23

KEEP YOUR POWDER DRY. The Drybulk relief valve is designed for use on ISO drybulk tank containers - so if you regularly transport flour, cement or indeed any powdered product, this is for you. Carefully manufactured in stainless steel for maximum corrosion resistance, the Drybulk relief valve will ensure that your products will flow out of your tank container as easily as they flowed in. Not only that, but like all of our valves it’s easy to maintain and service, with spare parts available globally through the Fort Vale offices and distribution network. So keep your powder dry and your profits healthy. Successful and profitable tank operation relies upon the technical integrity of each and every component. That’s why we ensure precision throughout, so that you can rely on the performance of our valves and your tanks.

FORT VALE. FOLLOW THE LEADER.

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24 TANKS & LOGISTICS

situated along the busy Scheldt-Rhine canal. In this way, Bergen op Zoom will more than ever become a crucial logistical hub between Antwerp and Rotterdam,” van Steenweghen adds. “This position is comparable to the Port of Limburg, the inland shipping terminal we are currently developing in our home town of Genk. The major European ports can also more easily be reached from there. With the arrival of the new Markiezaat Container Terminal, we will soon have multimodal corridors from Genk to Antwerp and from Antwerp to Rotterdam.”.

the limitations of the narrow lock passage. And above all, it offers perfect inland shipping access to the ports of Antwerp and Rotterdam. This will give our synchromodal network a strong boost and add an important hub to our European routes. This site opens up opportunities for faster and more flexible responses, which also benefits our ecological footprint.” Construction of the new container terminal will start in 2023 and it is expected to be operational in 2024. It will be much quicker to reach by water and will be further away from residential areas. The terminal should be able to handle about 140,000 TEU per year – twice the volume of the current location. In ten

THE BIGGER PICTURE The investment in this new site matches H Essers’ long-term strategic plan to further expand its synchromodal solutions, making optimal use of the different transport modes. “For several years, H Essers has been investing in concepts, networks and systems that allow us to organise synchromodal transports, as well as in an adapted fleet,” van Steenweghen says. “Today, more than 50 per cent of our towed fleet is already multimodal. But we go even a step further and also invest in infrastructure, with our own rail and barge terminals. The expansion potential of our warehouses, the new terminal and the strategic location between Rotterdam and Antwerp make Bergen Op Zoom an important logistics location.” This interest in the Netherlands is demonstrated by H Essers’ various investments in the country, such as the recent acquisition of Verheul to strengthen its infrastructure segment and the current integration of the acquired part of Meeus Group. “The acquisition of Meeus Group’s chemical logistics and moving business was an important milestone in our multi-year growth strategy and the largest in our company history,” says van Steenweghen. “H Essers welcomed not only 400 professionals but also a reference in Dutch

years’ time, this could increase to some 250,000 TEU. In addition, a total of 220,000 m² of warehousing space will be built within the diked area. The project also meets the demand of major seaports for more consolidated inland navigation. “The new location is ideally

multimodal chemical logistics. These expansions give us strong assets. We offer our customers a one-stop shop in which warehousing, value-added activities and multimodal transport for import and export all come together.” www.essers.com

FAST AND FLEXIBLE TERMINAL • H ESSERS IS TO INVEST IN A NEW CONTAINER TERMINAL TO HELP IMPROVE EFFICIENCY IN THE MOVEMENT OF CHEMICALS AND OTHER PRODUCTS IN AND FROM THE ARA PORTS H ESSERS HAS signed an agreement to buy a plot of land on the outskirts of Bergen op Zoom, the Netherlands. It will use it to build the new Markiezaat Container Terminal, directly on the Scheldt-Rhine canal between the seaports of Antwerp and Rotterdam. This will replace its existing container terminal and build on its acquisition in late 2020 of the Meeus Group’s chemical cluster. “Today, we are capitalising on our presence in the Netherlands,” explains Bob van Steenweghen, corporate affairs manager at H Essers. “The relocation of the existing container terminal to a larger, better suited location on the outskirts is a solution for the noise pollution suffered by local residents and

 THE RATIONALE BEHIND H ESSERS’ ACQUISITION OF THE MEEUS GROUP’S CHEMICAL CLUSTER IN THE NETHERLANDS IS BECOMING CLEAR WITH ITS LATEST GROWTH PLANS

HCB MONTHLY | MARCH 2022

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26 TANKS & LOGISTICS

IT’S COLD OUT THERE EQUIPMENT • THE SURGE IN NEW TANK CONTAINER CONSTRUCTION LAST YEAR WAS A BOON TO SUPPLIERS OF EQUIPMENT, WITH KLINGE CORPORATION REPORTING ITS BEST YEAR EVER KLINGE CORPORATION, A leading manufacturer and supplier of temperature control equipment for containers and tank containers, reports it enjoyed its best year ever in 2021. “It’s been a challenging time,” says company president Allan Klinge, “but we have grown. We have used these challenges to force ourselves to grow and to increase efficiency.” Those challenges are no secret and have been faced by all those companies supplying the freight and tank container business since the pandemic arrived two years ago. There was, Allan Klinge says, a “significant slowdown” in business in the first three to six months of the pandemic, with a lot of companies seeking to conserve cash in an uncertain time. But by August 2020 Klinge was back to “full steam ahead” and was “busier than ever,” Allan Klinge says. “We never shut down.”

 HOYER IS PARTNERING WITH LOCAL INTERESTS TO LEVERAGE DIFFERENT EXPERTISE IN CHEMICAL LOGISTICS

HCB MONTHLY | MARCH 2022

He acknowledges that supply chains have been an issue and also that the company has had to adapt to make itself more attractive in order to retain its staff and attract new employees. One of those adaptations was to move to a three-day weekend, with staff doing four 10-hour days – an initiative that came from the workforce itself. BUILD BACK BETTER Klinge Corporation has also taken the opportunity to look at its product portfolio in response to changes in demand. In particular, Allan Klinge says, there has been a lot of demand for redundant equipment from the pharmaceutical sector. “This is the main focus of new market growth at present,” he notes, adding that this market is looking for equipment that can keep goods colder than standard refrigeration units can handle.

On the chemicals side, there is a lot of interest from the lithium battery sector, as well as for equipment to meet the needs of larger tanks. Elsewhere, there is still strong interest from the foodgrade sector and also more demand for Ex-proof equipment for both tank containers and for reefer boxes. This has meant a lot of work on achieving certifications, Allan Klinge adds. Still, as he says, “Necessity is the mother of invention.” Alongside all this activity, Klinge Corporation has had to deal with many of the same stresses as its customers. Port congestion has been delaying exports from the US, while higher import freight costs need to be passed along the chain, along with higher fuel costs. “We are aware that our customers have to pass those costs onto their customers,” Allan Klinge says. “We have to be fair along the chain – but everyone sees the same thing.” These issues have generated a lot of stress in the logistics field, with all players along the chain being affected and, Klinge adds, causing some people to leave the industry. “We have to be aware of that and keep talking to our customers,” he says. And all are aware that there could be another upsurge in infections, causing further problems. But for now, at least, Allan Klinge is happy with the way things have been going. “We’re doing just fine,” he concludes. klingecorp.com

SECTION SLUG 27

2022 AND BEYOND

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TANKS & LOGISTICS

TANK CLEANING IN AFRICA

Van den Bosch has opened a new tank cleaning facility in the port of Tema, Ghana (right), in cooperation with local partner Amaris Terminals. Van den Bosch says the facility, which opened in January, is already running at full capacity. It is built within a 40-foot highcube container and fitted with the latest equipment from Gröninger Cleaning Systems. “In addition, the cleaning station is built in full compliance with European quality standards for foodgrade, Kosher and Halal cleaning protocols,” says Mark Ashton, commercial director of Van den Bosch DMCC. “With this, we support the innovative character of Van den Bosch. The new technology enables us to focus on providing sustainability and allows us continue our focus on the development of import & export, and liquid bulk solutions, amongst other things.” The new cleaning facility replaces the company’s first depot in West Africa, opened in 2016. Van den Bosch is now working on a second cleaning facility in the region, in Abidjan in Ivory Coast. www.vandenbosch.com SPANISH HOME FOR ECOLAB

H Essers will this month bring online a dedicated warehousing facility for Ecolab, a specialist in water and hygiene chemicals, in Spain. The two companies have been working together since 1995 in Belgium and H Essers has since added facilities for Ecolab in Denmark and Romania. Ecolab was looking for a similar facility in the Iberian peninsula, which H Essers has been able to provide following its acquisition of Coral Transport & Stocks last year. “The right licences had already been granted and Coral had a Seveso warehouse that would be perfect for Ecolab,” says Lieven Severijns, business unit manager south at H Essers. “The added value of the takeover became

HCB MONTHLY | MARCH 2022

immediately apparent with these assets: both the knowledge and the infrastructure were readily available.” “Our years of experience with H Essers and their acquisition of Coral created a perfect symbiosis between the local expertise and licences on the one hand and H Essers’ extensive knowledge of customers, systems and processes on the other,” says Joachim Giesler, director of warehousing EMEA at Ecolab. “Thanks to their customised approach, the integration went very smoothly and it allowed us to take a major step into southern Europe, practically risk-free.” www.essers.com MORE FOR RHENUS IN INDIA

Rhenus India has extensive plans to expand its transport and logistics portfolio this year, in response to continued annual business growth of 20 to 30 per cent since 2010. It will focus particularly on environmentally sustainable products and services, as well as new airfreight and cross-border road freight routes in the region.

In the chemicals sector, Rhenus India opened a new warehouse in Gurugram, some 30 km south-west of New Delhi, last month and is scheduled to open another chemical warehouse in May in Bhiwandi, near Thane in Maharastra. This follows the opening of a new multi-user chemical warehouse in Chennai last year. “Customers lie in the forefront of our strategy,” says Vivek Arya, managing director of Rhenus India. “Rhenus India will continue to invest in people, resources and infrastructure, while keeping a long-term view of growth in mind. Digital Excellence, HR Excellence and Customer Centricity will be the pillars of our future growth.” www.rhenus.group GREEN AND GOLD AT VAN MOER

Van Moer Logistics has achieved a golden rating from Ecovadis for its bulk and tank container division, reflecting its investment in initiatives to improve sustainability in its operations. In particular, Van Moer last year spent some €2.8m in the renovation of its tank

TANKS & LOGISTICS 29

cleaning facility in Zwijndrecht, Belgium, making use of the most recent technologies to improve performance and reduce energy and water consumption. Van Moer’s transport division received a silver rating. It is continuing to reduce its environmental impact, having introduced its first dual-fuel hydrogen truck at the end of 2021. It now has has 10 per cent of its fleet running on natural gas, while the rest of its vehicles have Euro 6 engines. Its planning department has upgraded its planning system to minimise empty runs and introduced coaching for drivers to encourage them to work economically. vanmoer.com PREMIER SITE FOR QUEBEC

Premier Bulk Systems, a subsidiary of Heniff, has partnered with KIK Carrier to open an operating terminal in Boucherville, Quebec, expanding its bulk liquid chemical transport business into the Quebec market. KIK’s Karl Fillion has been appointed as regional manager.

“This transaction enhances our customers’ ability to leverage the resources and services of our organisations across the North American liquid chemical supply chain,” says Kevin Berry, president/CEO of Premier Bulk Systems. “Premier has been actively seeking terminalisation in the Quebec market for some time now and with the partnership of Karl and his group, we feel strongly that we’ll be able to grow market concentration and be able to better service our customers. Quebec has a very strong and reliable chemical network that requires capacity. With the structured background that Premier offers, we will be able to effectively grow our service offering quickly and efficiently.” www.heniff.com GREIWING EXTENDS BASF DEAL

Greiwing has taken over in-plant logistics at BASF’s site in Schwarzheide under an initial five-year deal. “We have been implementing successful on-site projects at various locations

for years. The fact that BASF has entrusted us with this at one of their largest production sites in Europe shows a great deal of trust in our competence and makes us very happy,” says managing partner Jürgen Greiwing. Under the contract, Greiwing is now responsible for the supply of raw materials, filling and decanting, and container handling. In addition, it handles the storage, loading and shipping of BASF products. Greiwing has hired 69 staff for the job, who have all received full training in the handling of dangerous goods and who operate around the clock, 365 days a year. “With Greiwing we have found a very competent contract logistics provider with whom we were able to set up our production much more flexibly,” says Oliver Fuchs, project manager at BASF Schwarzheide.”I am convinced that both BASF in Schwarzheide and Greiwing will be able to draw valuable synergies from the partnership in a short space of time.” www.greiwing.de SWISS COMBINATION

Giezendanner Transport has acquired the business of Lehnherr Transporte, which like Giezendanner is a family-owned, Switzerlandbased transport company specialising in the movement of dangerous goods in tanks and packaged form. Lehnherr is now nearly 100 years old, while Giezendanner is approaching its 90th anniversary. “Despite its constantly growing size, Giezendanner Transport is and will remain a classic family business. Personality, flexibility and a high quality standard describe our company philosophy,” Giezendanner states. “Just like Lehnherr, the Giezendanner name also stands for decades of experience in the field of road transport. With our additional knowledge and the appropriate infrastructure in the field of combined transport, we will reach new milestones together.” www.giezendanner-rothrist.ch

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30 CHEMICAL DISTRIBUTION

BUYING POWER ACQUISITIONS • IMCD HAD A RECORD YEAR IN 2021, AS A RESULT NOT LEAST OF ITS AGGRESSIVE EXPANSION POLICY. THAT EXPANSION HAS CONTINUED IN 2022 WITH THREE DEALS ALREADY DONE IMCD HAS REPORTED full-year revenues of €3.44bn for 2021, up 24 per cent on the 2020 figure, with gross profit ahead by 29 per cent at €836m and net profit up 73 per cent at €207m. “I am pleased to report a year of record growth: operating EBITA increased by 54 per cent and cash earnings per share by 53 per cent,” says CEO Piet van der Slikke. “In 2021, all our regions and business segments showed strong growth, both organically and as the result of strategic acquisitions. I want to specifically mention the strengthening of our business in Mexico,

 CONTINUED EXPANSION THROUGH ACQUISITION IS HELPING BOOST IMCD’S SALES AND PROFIT GROWTH

Central America, China and Indonesia, that position us well to serve our customers and suppliers in these attractive markets,” van der Slikke adds. “Our teams have worked tirelessly to maintain supply to our customers, overcoming challenges that persisted in 2021. The economic environment is still favourable for us and we are quite optimistic about further growth for our Group.” That further growth will be delivered at least in part through continued expansion via acquisitions. Already this year IMCD has concluded three deals in different parts of the world. In Europe, IMCD has agreed to acquire Polychem Handelsgesellschaft, a leading provider of chemical raw materials and additives in Austria and south-east Europe. “The acquisition of POLYchem provides us an excellent platform to better serve customers and partners throughout southeast Europe,” says Johann Milchram, managing director of IMCD Southeast Europe. “Besides broadening our global network of technical centres by establishing the first laboratory in this region, it provides us the opportunity for further regional development in SEE emerging markets.”

“The coatings and construction industry in south-east Europe shows an increasing demand for more performance-driven sustainable solutions and formulations. This acquisition of POLYchem strengthens IMCD’s position to realise these opportunities for our local customers and global partners,” adds Frank Schneider, business group director, IMCD Coatings & Construction. AMERICAS ACTIVITY Meanwhile, IMCD has expanded its Latin American operations with the acquisition of Quelaris Internacional, a regional distributor of raw materials with offices in Colombia, Costa Rica and Peru. “Following IMCD’s acquisition of Andes Chemical nine months ago, the Quelaris acquisition further enhances IMCD’s presence and offering in North LATAM,” says Marcus Jordan, Americas President, IMCD. “The addition of Quelaris further reinforces our approach of creating growth opportunities for our supply and customer partners, and we are delighted to embark on this new adventure with the Quelaris team.” Quelaris, which recorded 2021 revenues of some $52m, was founded in 1993 and operates in 14 countries in the region, with a strong presence in the polyurethane, coatings, adhesives and rubber sectors. The transaction is expected to close this month. Further south, IMCD Brasil has agreed to acquire Polyorganic Tecologia, a São Paulo-based distributor of household, industrial and institutional (HI&I) chemical products established in 1993. It is also involved in the water treatment and other industrial sectors and last year generated revenues of some €12m. “Polyorganic’s technical capabilities, market expertise and strong product portfolio are an excellent fit with IMCD and complements our growing presence in the HI&I market,” says Nicolas Kaufmann, managing director of IMCD Brasil. “The addition of Polyorganic to IMCD Brasil will allow us to accelerate growth, plus offer more solutions to help manufacturers keep up with market trends and demand.” www.imcdgroup.com

HCB MONTHLY | MARCH 2022

SECTION SLUG 31

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32 CHEMICAL DISTRIBUTION

GOING TO PLAN RESULTS • ANOTHER SOLID YEAR FOR ASIA-FOCUSED DKSH REFLECTS ITS ROBUST BUSINESS MODEL AND THE BREADTH OF ITS PRODUCT COVERAGE SWITZERLAND-BASED DISTRIBUTOR DKSH has posted what it calls “strong” results for the full year 2021. Net sales grew by 5.4 per cent at constant exchange rates, with operating profit up by 13 per cent. That growth was concentrated in its Consumer Goods and Performance Materials business units, both of which delivered double-digit profit improvements. “Given the challenging market environment and lockdowns seen in the third quarter, I am pleased with our 2021 results including double-digit EBIT growth and strong cash generation,” says CEO Stefan P Butz. “We continued being the trusted partner for our stakeholders and reliably supplying essential products and services through and in response to the pandemic. In addition, we completed seven acquisitions and increased

eCommerce sales double digit. While visibility on external factors remains limited, we are confident that we will continue building a better company with EBIT growth in 2022.” Net sales came in at CFr 11.1bn ($11.2bn) in 2021, ahead by 3.4 per cent. Of that, organic growth contributed 4.6 per cent and acquisitions 0.8 per cent, though this was tempered by a 2.0 per cent negative effect from currency exchange movements. Operating profit was CFr 284.6m, up from CFr 257.5m last time, with a slight increase in margin from 2.4 per cent to 2.6 per cent. After-tax profit rose strongly from CFr 164.8m in 2020 to CFr 230.1m, though that included a one-time revaluation gain of CFr 34.8m. DKSH has a strong focus on operations in Asia, so its results for 2021 were affected by

supply chain issues as well as the ongoing effects of the Covid-19 pandemic. Perhaps surprisingly, its Healthcare business unit – the largest division in the group - did not see any major growth, with net sales ahead by only 3.0 per cent at CFr 5.59bn. Despite the impact of Covid-19 on the healthcare industry in Asia, the lockdowns seen in the third quarter, and the situation in Myanmar, DKSH expanded its outsourcing services as well as business development, and successfully closed the acquisitions of MedWorkz (Singapore) and Hahn Healthcare (Australia). INDUSTRIAL ACTIVITY DKSH’s Performance Materials business unit performed much better, with net sales up 15.6 per cent at CFr 1.28bn and operating profit ahead by 25.8 per cent at CFr 115.4m. “The strong technical expertise, value-added services, wide market coverage, and focus on digital marketing helped overcome supply chain constraints,” the company says. The industrial business increased sharply and the life sciences business performed well across key markets, it adds. DKSH also closed the acquisitions of SACOA (Australia) and HTBA (Spain), and signed the acquisition of Right Base Chemicals (China), taking further steps toward consolidating the specialty chemicals distribution industry in Asia Pacific and Europe. DKSH now expects further growth this year, assuming economic growth in Asia Pacific, exchange rates at current levels, and barring unforeseen events. “A robust business model, large share of daily consumption items, and strong balance sheet provide resilience and offer growth opportunities,” the company says. “The group will continue developing its business through diligent strategy implementation, digitalisation, sustainability, and M&As, while focusing on operational excellence and cost discipline. DKSH is confident about Asia’s long-term potential and is well-positioned to benefit from favourable market, industry, and consolidation trends.” www.dksh.com

 WITH A BROAD RANGE OF OPERATIONS ACROSS ASIA, DKSH SEES A HEALTHY FUTURE AHEAD

HCB MONTHLY | MARCH 2022

SECTION SLUG 33

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CHEMICAL DISTRIBUTION

BM ON THE UP

The Bodo Möller Chemie Group has recorded a 40 per cent increase in revenues in 2021, despite shortages of raw materials and “enormous” price increases for certain products. “This development impressively confirms our strategy to link the distribution of technologically leading products of well-known manufacturers with extensive in-house expertise for their application and use,” says Frank Haug, chairman of the board. “In addition, we have our own products, which we produce in our own locations. We are very thankful that in spite of the problematic global situation, which is also related to the Covid-19 pandemic, we were able to achieve this growth.” Bodo Möller Chemie has intensified its collaboration with Henkel, expanding its distribution relationship to cover materials used for processing electronic and electrical components. This provides a focus on emerging technologies in e-mobility and 5G applications. “With this intensification, we are in the position to already keep expanding our very wide product range for the electro and electronics sector and we offer our customers completely new solutions for state-of-the-art electrical applications,” Haug says.”Henkel is one of our long-standing partners from the industry, and our customers benefit from our know-how for the entire electrical engineering product portfolio.” bm-chemie.com OQEMA KEEN ON SLOVENIA

Oqema has acquired Alpkem, a specialist distributor of inorganic chemicals, based in Kranj, Slovenia, that was founded in 1991. The acquisition provides Oqema with additional warehousing capacity to meet its long-term strategic targets and strengthens its presence in south-eastern Europe. Alpkem’s portfolio also complements Oqema’s existing operations in Slovenia, the company says.

HCB MONTHLY | MARCH 2022

“As a supplier of inorganic products with a focus on laboratory chemistry, Alpkem has also made a name for itself in waste management and makes an effective contribution to the circular economy,” says Marko Strazisar, manager of Oqema Slovenia. “This is a great addition to our existing business in this region and a step towards one more sustainable future.” oqema.com THAI MOVE FOR AZELIS

Azelis has acquired a majority stake in Thailand-based Catalite, an established distributor of specialty chemicals in the local personal care and home care markets (above). The acquisition will reinforce Azelis’ footprint in the life sciences market, complementing its existing industrial chemicals portfolio in Thailand. The transaction is expected to close in the first quarter, after which CEO Udomlak Kootiratrakarn and CCO Vaivit Arkaresvimun will continue to lead the business. “We are pleased to embark on this new chapter in our company’s history with Azelis,”

Kootiratrakarn says. “Becoming part of a renowned international player will be beneficial for our company, customers and principals, with numerous opportunities for growth, and great synergies for both companies. Combining our strengths with Azelis’ will give us access to other reputable principals, further reinforce our technical expertise and formulation development, and enable us to better serve our customers.” Laurent Nataf, CEO/president of Azelis Asia Pacific, adds: “A strengthened presence in Thailand deepens our coverage in Asia Pacific, which is one of the strategic priorities for the Group. Principals benefit from Azelis’ wider platform in this high-growth region, while customers benefit from Catalite’s and Azelis’ complementary portfolio of products, and combined ability to provide innovative solutions and best-in-class services. This transaction is aligned with Azelis’ strategy to complement organic growth with strategic value enhancing acquisitions.” www.azelis.com

CHEMICAL DISTRIBUTION 35

STOCKMEIER BIGGER IN BELGIUM

Innochem, the Belgian subsidiary of Stockmeier Group, has acquired the business of the Netherlands-based specialty chemicals distributor XS Chemicals, headquartered in Utrecht. Stockmeier says the deal will give it access to a global supplier partner to help it reach all its target markets in Europe and is the “next milestone on our way to becoming a specialty distributor”. Jan Smeets and Dirck Seidel, managing directors of Innochem, comment: “With this acquisition, we are strategically expanding our portfolio for the polymerisation chemicals, printing inks, adhesives, and paints and coatings industries. With Bas Gaillard and Hans Dieter Lütje, we also welcome two proven specialists in the product areas of acrylate monomers, crosslinkers, inhibitors and initiators to our ranks.” www.stockmeier.com BARENTZ BUYS IN MEXICO

Barentz International has acquired certain assets of Mexican distributor Chemcel, which provides specialty ingredients for the local pharmaceutical and nutrition markets. The operation will continue to be led by Julio

Rendon from its base in Mexico City. For Barentz, the deal strengthens its existing presence in Latin America and establishes a growth platform within Mexico’s life science markets. It also gives Barentz access to an in-house laboratory and technical services team. “Mexico has long represented a strategic market for Barentz and Chemcel represented the ideal fit with our commercial strategy and entrepreneurial culture,” says Hidde van der Wal, Barentz CEO. “The team has worked hard to establish Chemcel as a leader in the Mexican excipient market and we are honoured that its owners, Raul de la Parra and Julio Rendon, entrusted Barentz to continue building upon that success as Barentz Mexico.” www.barentz.com TILLEY TAKES OVER

Tilley Company, a leading specialty chemicals distributor in the north-east US owned by SK Capital Partners, has completed a merger with Phoenix Aromas and Essential Oils, a global distributor of flavour and fragrance ingredients. The merger creates a world-class supplier of high-quality ingredients to better serve new and existing customers, Tilley says.

“Phoenix brings a high level of expertise to the flavour and fragrance markets by employing highly technical laboratory services and rigorous quality control measures. These high-touch services, when combined with reliable supply chain planning and strong supplier relationships, make the combined company a best-in-class source for specialty ingredients,” says Sean Tilley, COO and president of Tilley. “Looking forward, Tilley-Phoenix Group plans to continue its pursuit of selective M&A focused largely on specialty products sold into regulated markets. We continue to focus on expanding the value-added platform, seeking targeted opportunities to enhance the value, quality and breadth of solutions we bring to both customers and suppliers,” adds Randy Dearth, senior director at SK Capital. That pursuit has already reeled in one acquisition, with Tilley-Phoenix buying Callahan Chemical, a leading regional supplier and distributor in the specialty chemicals, ingredients and CASE sectors. “We are extremely pleased to complete the acquisition of Callahan Chemical, believing it represents a highly complementary business with shared values and vision as a specialtyfocused distributor supported by a strong value-added service foundation,” says Jean-Paul Benveniste, president/CEO of Tilley-Phoenix. The addition of Callahan to Tilley-Phoenix provides customers with state-of-the-art regulatory and technical support, broader logistics expertise, and an enhanced product offering of value-added ingredients for applications in regulated markets. “Callahan, like Tilley-Phoenix, brings a strong valueadded approach to serving its suppliers and customers. The acquisition enhances the platform’s geographic reach, which is particularly compelling for our shared supplier base,” says Sean Tilley. www.tilleycompany.com

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COURSES & CONFERENCES 36

EXPO 2022 – THE REUNION

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COURSES & CONFERENCES 37

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

MARCH AFPM Annual Meeting MARCH 13-15, NEW ORLEANS AFPM’s annual meeting for refiners and marketers www.afpm.org/events/AnnualMeeting2022 Intermodal South America MARCH 15-17, SÃO PAULO/VIRTUAL 26th annual international exhibition on intermodal logistics, cargo transport and international trade www.intermodal.com.br/en Hydrogen & Fuel Cells Energy Summit MARCH 16-17, PORTO Conference to discuss innovations in hydrogen and fuel cell technology, production and transport www.wplgroup.com/aci/event/hydrogen-fuel-cellsenergy-summit/ AHMP National Conference MARCH 19-23, LAS VEGAS Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/events/EventDetails.aspx Tanks and Terminals 2022 MARCH 22-24, DUBAI Third annual conference and workshop on integrity management of aboveground storage tanks www.marcusevans-conferences-middleeastern. com/marcusevans-conferences-event-details. asp?EventID=26765&SectorID=42#.YZvCdlPLdMA 2+2 MARCH 22-25, SAN FRANCISCO Joint event by the International Air Cargo Association (TIACA) and Transport Logistic to discuss innovation in the logistics sector www.aircargoforum.org/conference/2plus2/ BADGP MARCH 24, COVENTRY Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/event-4561498 AFPM IPC MARCH 27-29, SAN ANTONIO AFPM’s annual International Petrochemical Conference www.afpm.org/events/IPC2022

European Oil & Energy Storage Conference MARCH 29-30, AMSTERDAM/ONLINE Conference on the challenges for the storage sector in the energy transition https://plattsinfo.spglobal.com/european-oilenergy-storage-conference LogiChem MARCH 29-31, ROTTERDAM Chemical supply chain and logistics conference http://logichem.wbresearch.com/

APRIL CVSA Workshop APRIL 3-7, BELLEVUE, WA Meeting for industry, regulators and enforcers to improve commercial vehicle safety www.cvsa.org/events/cvsa-workshop/ Nor-Shipping APRIL 4-7, OSLO Biennial exhibition for the global maritime industry http://nor-shipping.com/ COSTHA 2022 APRIL 4-8, VIRTUAL Annual forum and expo of the Council on Safe Transportation of Hazardous Articles www.costha.com LogiPharma APRIL 5-7, NICE Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com NISTM APRIL 13-15, ORLANDO National Institute for Storage Tank Management’s 25th annual international aboveground storage tank conference and trade show www.nistm.org NTTC Annual Conference APRIL 23-26, SAN DIEGO 73rd annual conference and exhibition of the National Tank Truck Carriers www.tanktruck.org/Public/Events/Annual %20Conference%20and%20Exhibits/ Public/Events/Annual-Conference--Exhibits.aspx

UKIFDA Expo 2022 APRIL 27-28, LIVERPOOL Annual exhibition for the fuel distribution sector in the UK and Ireland (formerly FPS Expo) https://ukifda.org/ukifda-expo/ European Biofuels Conference APRIL 28, GENEVA/ONLINE Conference on the role of biofuels and feedstocks in the energy transition https://plattsinfo.spglobal.com/european-biofuelsconference.html AFPM Security Conference APRIL 28-29, HOUSTON Conference on security at fuel refining and petrochemical plants www.afpm.org/events/SC22

MAY ChemUK 2022 MAY 11-12, BIRMINGHAM Supply chain expo and conference for the UK chemical industry www.chemicalukexpo.com/ GPCA Supply Chain Conference MAY 17-19, DUBAI 13th annual meeting of logistics professionals in the Gulf Petrochemicals and Chemicals Association www.gpcasupplychain.com Hazmat 2022 MAY 18-19, STRATFORD-UPON-AVON NCEC’s annual conference for those involved in hazmat response, incident management and crisis management https://the-ncec.com/en/events-en/hazmat-2022 StocExpo 2022 MAY 23-25, ROTTERDAM The main annual exhibition and conference for the European tank terminal industry www.stocexpo.com/en/ VCA Dangerous Goods Seminar JUNE 7-8, DAVENTRY 35th annual regulatory update conference www.vehicle-certification-agency.gov.uk/ dangerous-goods/dangerous-goods-conference/

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Vehicle Type

Substance

Details

Source

8/1/22

Oklaunion, freight train ethanol Texas, US

BNSF train with 98 tank cars with ethanol suffered derailment near US 287; 29 derailed cars caught fire; crews from Sheppard AFB assisted in response but fire was allowed to burn out; one nearby home destroyed

KAU

12/1/22 Navi Mumbai, road tanker ammonia Maharashtra, India

Road tanker with ammonia overturned after collision with truck on JNPT road at Kalamboli; some leak of product, prompting road closure; driver was trapped in cab until fire crews cut him free

Times of India

14/1/22 Canoga Park, road tanker fuel California, US

Tanker truck with unspecified fuel was in collision with car; tanker crashed into fountain, burst into flames; car driver killed in fire; some 1,000 gal (3,800 litres) fuel spilled to street

Epoch Times

17/1/22 Abu Dhabi, road tankers oil UAE

Authorities suspect drone attack by Houthi rebels sparked small explosions in three road tankers with oil at Adnoc storage facility; blasts coincided with attack that caused fire in international airport nearby

17/1/22 Wayne, road tanker diesel New Jersey, US

Tank truck with 2,000 gal (7.5 m3) diesel overturned on Route 23, spilling much of load to storm drain; police said driver was going too fast into turn in wet conditions; booms deployed to contain spill

north jersey.com

17/1/22 nr Powder Springs, truck propane Georgia, US

Fire broke out on truck with some 140 propane cylinders; fire crews were on scene dealing with fire when there was an explosion involving about 60 cylinders; fire spread to building but no injuries reported

Fox5

18/1/22 Ulhasnagar, road tanker Maharashtra, India

Three bystanders were injured by spill of sulphuric acid from road tanker after it went over speed bump; seems that this loosened valve, allowing acid to spill alongside; police, tanker crew fixed valve

Times of India

18/1/22 Durban, road tanker paraffin KZN, South Africa

Road tanker with 40,000 litres paraffin overturned on N2 after driver lost control, skidded across median and was struck by motorbike and another vehicle; biker badly injured; no leak reported; road closed for recovery

The South African

20/1/22 Bogoso, truck explosives Western, Ghana

Truck carrying explosives from Tarkwa to Chirano gold mine collided with motorcycle; fire broke out, followed by massive explosion; at least 13 people killed, nearby village largely destroyed

BBC

21/1/22 Kumasi, road tanker fuel Ashanti, Ghana

Fire broke out on road tanker during suspected illegal siphoning of unspecified fuel to tricycle; fire spread to abandoned factory nearby; thought that sparks from tricycle’s motor ignited fuel vapours; no injuries

Joy Online

21/1/22 Redding, road tanker petroleum California, US

Tank truck carrying transmix (UN 1268) overturned outside Safeway store, spilling fuel; police said driver was going too fast, hit raised kerb; spilling fuel reached storm drain, canal and creek; shelter-in-place ordered

Record Searchl’t

27/1/22 Ohoro, road tanker fuel Delta, Nigeria

Parked road tanker caught fire, exploded overnight; two people killed; several buildings destroyed, along with other property; calls for more safety measures in areas used as temporary rest stops by oil, gas tankers

Vanguard

28/1/22 Onitsha, road tanker gasoline Anambra, Nigeria

Road tanker overturned on road in bad condition; tanker exploded, spreading fire that destroyed more than five nearby buildings, burned other shops; no report of injuries

Vanguard

29/1/22 Umuahia, road tanker diesel Abia, Nigeria

Fire broke out under road tanker during discharge of diesel at filling station; tanker exploded; other motorists abandoned their vehicles and fled for safety; fire crews prevented fire from spreading to nearby buildings

Vanguard

1/2/22

Tank truck with aviation fuel overturned on Gandy Boulevard, spilling load; no injuries reported but spilt fuel damaged road surface, which required resurfacing

Tampa Bay Times

sulphuric acid

Tampa, road tanker jet fuel Florida, US

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Details

Source

15/1/22 Ventanilla, Mare Doricum crude oil Peru

d’Amico tanker (158,300 dwt, 2009), discharging crude at mooring buoy, was hit by heavy waves caused by volcano in Tonga; some 12,000 bbl crude lost to sea; tanker arrested; authorities closed Repsol refinery

Maritime Executive

20/1/22 Motril, Balat scrap Granada, Spain

Fire broke out in cargo of scrap metal in hold of general cargo ship (11,000 dwt, 2006) in port; fire was quickly brought under control by shoreside fire crews and tugs; no injuries reported

FleetMon

22/1/22 Gulf of Siam, Thailand

Product tanker with up to 500 tonnes fuel, sank 62 nm north of Koh Samui Island; cause not known; all crew rescued; some oil leaked from tanker, causing slick 10 km long; slick expected to dissolve

FleetMon

28/1/22 Mae Ramphueng, pipeline oil Thailand

Some 50 tonnes oil (unspecified) leaked from underwater pipeline to offshore loading buoy at Star Petroleum refinery in Rayong province; spill reached nearby beach, which was closed to the public

Maritime Executive

1/2/22

Kaohsiung, Torm Emilie naphtha Taiwan

Product tanker (75,000 dwt, 2004) with naphtha cargo contacted breakwater while shifting berth; hull breached in way of ballast tanks, took on water; tanker listed; no leak but booms deployed

FleetMon

2/2/22

Escravos, Delta, Nigeria

FPSO (274,800 dwt, 1976) exploded, sank at Ukpokiti terminal; all ten crew onboard feared lost; sources note that AIS had been off for a long time and owner SEPCOL was already in receivership

FleetMon

HCB MONTHLY | MARCH 2022

Vessel

Substance

Por fuel Andaman 2

Trinity crude oil Spirit

SAFETY 39

MISCELLANEOUS INCIDENTS Date

Location

Details

Source

23/12/21 Baytown, oil refinery oil Texas, US

Large fire broke out at ExxonMobil refinery, described as “major industrial accident”; some reports suggested explosion prior to fire, said to be in gasoline unit; four workers injured; site teams fought fire

CBS

27/12/21 New Orleans, pipeline diesel Louisiana, US

Collins Pipeline’s ageing Meraux line, said to be badly corroded, ruptured east of New Orleans, spilling some 1.1m litres diesel to wetland; large impact on wildlife; repairs to line had been delayed

1/1/22

nr Virudhunagar, Tamil Nadu, India

Four workers killed, eight more injured by fire at licensed fireworks unit; few further details but police said investigation was underway to ascertain cause of the accident

News18

4/1/22

Antipinsky, oil refinery oil Tyumen, Russia

Fire broke out at Antipinsky refinery, Russia’s largest independent facility; no indication as to cause of fire or what products were involved; no injuries reported; fire was put out the same day

TASS

Up to 2,000 gal (7.5 m3) phenol spilled from tank at AdvanSix plant, reportedly after worker failed to close valve during loading of rail car; site team managed to contain spill, though PaDEP said some reached sewer

Philly Enquirer

14/1/22 Passaic, warehouse chlorine New Jersey, US

Major fire broke out at Majestic Industries warehouse, involving furniture, spreading to adjacent Qualco plant producing pool chemicals and threatening stock of chlorine pellets; fire crews managed to prevent spread

ABC

17/1/22 Hammersbach, Hesse, Germany

filling unknown station

Fire broke out in two cars near fuel pump at highway service station, reportedly after small explosion; two people found dead in their cars; fire damaged restaurant; police investigating incident

24/1/22 Ceres, California, US

farm supply sulphur company

Fire broke out in Stanislaus Farm Supply facility as worker was changing a light bulb; spark ignited dust of fertiliser-grade sulphur in warehouse; major response; shelter-in-place ordered; no injuries reported

Modesto Bee

28/1/22 Piedra Fina, pipeline crude oil Napo, Ecuador

Heavy rains caused mudslide that ruptured OCP oil pipeline, resulting in leak of “huge quantity” of crude oil, according to environment ministry; some water courses affected; operator collected spill, repaired line

AFP

31/1/22 Winston-Salem, N Carolina, US

Massive fire broke out at Winston Weaver fertiliser plant, threatening stocks of 600 t AN, 5,000 t fertiliser; some 6,000 people evacuated, including 200 prison inmates; gas supplies shut off; fire burned for days

CNN

13/1/22 Philadelphia, Pennsylvania, US

Plant type

Substance

fireworks fireworks factory

chemical phenol plant

fertiliser plant

ammonium nitrate

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CHANGE WAS NEEDED CARGO • NATIONAL CARGO BUREAU CELEBRATES ITS 70TH ANNIVERSARY IN 2022. THINGS HAVE CHANGED A LOT OVER THAT TIME, WITH THE INTRODUCTION OF DIGITAL TOOLS

Governmental Maritime Consultative Organisation Code, later renamed the International Maritime Dangerous Goods (IMDG) Code. In 1975 the Hazardous Materials Transportation Act (HMTA) was enacted as the principal federal law in the US regulating the transport of hazardous materials. By 2004, the IMDG Code became mandatory for the carriage of dangerous goods by sea for all signatory nations to the International Convention for Safety of Life at Sea (SOLAS), after previously being a recommendatory instrument. The Code, which applies to the transport of dangerous goods in packaged form, covers matters such as packing, container traffic and stowage, with particular reference to the segregation of incompatible substances. It was developed to enhance and harmonise the safe carriage of dangerous goods and to prevent pollution to the environment. In 2011, the International Maritime Solid Bulk Cargoes (IMSBC) Code entered into force, mandatory under the provisions of SOLAS. The Code addresses the prime hazards associated with the shipment of bulk cargoes relating to structure damage due to improper cargo distribution, loss or reduction of stability during a voyage and chemical reaction of cargoes.

IN THE YEARS leading up to the incorporation of the National Cargo Bureau (NCB) in 1952, there was a string of maritime disasters brought about by the shipment of dangerous goods – including ammonium nitrate, a very common cargo used as a fertiliser or explosive. The deadliest industrial incident in US history happened on 16 April 1947 when the Liberty ship Grandcamp exploded in the port at Texas City, Texas (above). It was one of history’s largest non-nuclear explosions. A fire discovered by stevedores preparing to resume loading of ammonium nitrate aboard the ship resulted in the first of two disastrous explosions which destroyed the entire dock area, numerous oil tanks, the Monsanto Chemical plant, numerous dwellings and business buildings. The second explosion, some 16 hours later, resulted from a fire in

Although the US Department of Transportation’s (DOT) regulations were first published in the Code of Federal Regulations (CFR) in 1938, at the time very little was known about how to handle, store and transport such dangerous substances and safety was very low down on the list of priorities. It was obvious that there was a need for uniform standards and regulations to stop such disasters and loss of life occurring. REGULATORY RESPONSES The International Maritime Organisation (IMO), which began life in 1958 as the Inter-Governmental Maritime Consultative Organisation (IMCO), had a remit in 1965 to facilitate cooperation and the exchange of information among governments on all technical matters affecting shipping and to

A ROLE FOR NCB In 1952 the National Cargo Bureau was incorporated as a not-for-profit organisation to assist the US Coast Guard (USCG) in discharging its responsibilities under the 1948 International Convention for Safety of Life at Sea (superseded by the 1960 and 1974 SOLAS Conventions). NCB is a continuation and amplification on a broader base of inspection services formerly performed by the Board of Underwriters of New York and the Board of Marine Underwriters of San Francisco, with a mission of ‘Safety of Life and Cargo at Sea’.

ammonium nitrate aboard the vessel High Flyer. At least 581 people were killed and the disaster drew the first class action lawsuit against the US government. The loss of property excluding marine (which was not ascertainable) is estimated to have been $35m and $40m.

achieve the highest practicable standards of maritime safety and efficient navigation, with special responsibility for the safety of life at sea. In that year the IMCO Assembly approved three codes: the revised International Code of Signals, the Code of Safe Practice for Bulk Cargoes (other than grain) and the Inter-

With offices in 18 US port locations, NCB can operate on a nationwide basis, helping to enhance safety and ensure compliance with regulations through inspection and surveying activities predominantly relating to hazardous materials incidents and the stability of ships carrying bulk cargoes.

HCB MONTHLY | MARCH 2022

SAFETY 41

Several CFR Titles explain the importance of NCB’s role: Title 7 (Agriculture) requires a signed copy of the NCB Certificate of Readiness (Vessel Hold Inspection Certificate) and Certificate of Loading for all noncontainerised cargoes; in Title 19 (Customs Duties), the Commissioner of US Customs has designated NCB as a certifying authority for containers and road vehicles; in Title 46 (shipping within the US for USCG, US Maritime Administration and US Maritime Commission) USCG recognises NCB for the purpose of issuing certificates of loading; Title 49 (Transportation of hazardous materials) authorises NCB to assist USCG in the inspection of vessels for suitability of loading hazardous materials, examination of hazardous materials, making recommendations for stowage requirements of hazardous materials cargo and issuance of certificates of loading setting forth that the stowage of hazardous materials is in accordance with the requirements of subchapter Assignment and certification. In addition, certificates issued by NCB for bulk cargoes may be accepted as evidence of compliance with the IMSBC Code and US regulations under 46 CFR.

As part of its remit, NCB has also developed training courses to inform and educate in an effort to prevent incidents before they occur. USCG approves NCB’s range of self-study courses and offers sea service credits to students who complete the courses satisfactorily. DIGITAL SOLUTIONS It is impossible to inspect every container because of the sheer volume of traffic. Using a projection based on container cargo inspection data collected by NCB, it is estimated that there are more than 500,000 containers shipped annually with poorly packaged or stowed dangerous goods, any of which could lead to leaks and/or fires. In 2018 NCB joined forces with UK-based Exis Technologies, a global leader in IT solutions for the management of dangerous goods in sea transport. With the help of industry partners, such as the Cargo Incident Notification System (CINS - www.cinsnet. com), they are helping to tackle the issues at the root of ship fires, including poor stowage and misdeclared/undeclared dangerous goods, by the use of new digital tools. Hazcheck Inspections was launched in 2018

as a web-based container inspections database and access portal, which now has in excess of 100,000 data records and is constantly growing. In the same year, following the Maersk Honam fire, Maersk contacted NCB to ask it to inspect 100 inbound containers. To collect more meaningful data, NCB offered 500 container inspections to the five board members of CINS as part of a Container Inspection Safety Initiative. High inspection fail rates highlighted the problems of improperly packed containers and other issues. As a result, NCB produced a White Paper setting out 12 holistic approach recommendations for shipping lines. In 2020, Hazcheck Detect, a new real-time cargo screening tool that allows noncompliant cargo to be viewed within seconds, was launched. The tool, which identifies undeclared and misdeclared cargo, stops containers from being loaded onto ships that previously could have been the cause of a ship fire. Each month 25 million bookings are screened and 30,000 suspicious cargoes detected. This stops 40 to 50 containers from being loaded each week. Maersk was the tool’s first customer, followed by ONE and Hapag-Lloyd. In 2021, NCB started to carry out remote inspections. The team of NCB surveyors, who offer decades of container inspection experience, are now able to review and inspect container transport units remotely, using a live video option, based on the material the client captures and uploads to the platform on their mobile phone. Inspections are possible on a global scale particularly in locations where dangerous goods expertise may not be available. To date, NCB has carried out remote inspections for Evergreen, Maersk and Hapag-Lloyd. The last 70 years has seen an incredible amount of progress regarding both regulations and technology. Moving forward through the next decade, data sets collected from the new tools, along with machine learning and AI techniques, will be able to improve the detection of invalid and dangerous shipment by creating new rules and search terms. natcargo.org

WWW.HCBLIVE.COM

DIVERSION AHEAD ROAD • DESPITE ADMINISTRATIVE DIFFICULTIES, WP15 HAS AGREED MORE THAN 100 PAGES OF AMENDMENTS FOR THE 2023 TEXT OF ADR. MORE MAY YET BE ADDED AT ITS NEXT SESSION

enter into force, although Georgia has recently ratified the protocol and was due to submit its notification to the UN Office of Legal Affairs. Before the meeting began, there was a tribute to the victims of the road tanker explosion in Sierra Leone the week before, which killed at least 90 people; the Working Party noted that it was too early to draw any conclusions from the incident and invited the country’s authorities to share the findings of its investigation.

THE UN ECONOMIC Commission for Europe’s (ECE) Working Party on the Transport of Dangerous Goods (WP15) held its 110th session this past 8 to 12 November in hybrid format; Covid-19 response measures, the UN’s liquidity crisis, ongoing renovation work at the Palais des Nations in Geneva, and restrictions on the availability of interpreters all made it once more difficult to arrange a lengthy session and the experts had only a week to complete their work. Their agenda was very similar to their counterparts on the

The meeting was chaired by Ariane Roumier (France) with Alfonso Simoni (Italy) as vice-chair; it was attended by representatives of 24 countries, as well as from Brazil, Egypt and Sierra Leone. Also in attendance were the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), six non-governmental organisations and the EuroMed Transport Support Project (TSP). The Working Party welcomed the participation of Brazil and Egypt and encouraged them to continue to participate at

BEFORE THE BALL With the Sierra Leone incident in their minds, the Working Party was presented with a final draft of the Road Map for accession to and implementation of ADR, developed by the Inland Transport Committee, WP15’s parent body. The Road Map aims to help authorities in those countries interested in becoming contracting parties in preparing for and implementing the regulations. The Working Party welcomed the revised version of the Road Map and recognised its

RID Committee of Experts standing working group (HCB February 2022, page 58): to complete, insofar as was possible, the amendments that will enter into force in the 2023 edition of ADR, the international regulations for the transport of dangerous goods by road.

future sessions. Under the Rules of Procedure, any UN member state may participate in its activities and all countries wishing to accede to ADR were urged to do so. The Working Party noted that 13 contracting parties have still not deposited the required instruments to allow the 1993 protocol to

usefulness as a tool for promoting ADR and the work of the Working Party both in countries that are not yet contracting parties and in the national administrations of countries that already are. It asked the secretariat to publish the final Road Map in electronic form to facilitate its dissemination.

HCB MONTHLY | MARCH 2022

REGULATIONS 43

The official languages of ADR are French and English; UN ECE also provides a Russian translation but countries using other languages have to provide their own version. The EuroMed TSP representative said that, in order to help countries accede to ADR and implement its provisions in their national regulations, it would be good for other language versions to be available; in the scope of its activities that means Arabic. EuroMed said that the absence of an Arabic version of ADR is a major obstacle not only to accession but also to the development of safety regulations in the 22 countries where Arabic is the official language. Tunisia, a contracting party to ADR, has struggled with the problem. EuroMed also noted that some 70 per cent of ADR is reproduced verbatim from the UN Model Regulations, which is translated by the UN translation service into Arabic (as well as Chinese and Spanish) and it would therefore not be a massive task to do the same for ADR. As so often happens, though, getting this very sensible idea accepted will take money. The Working Party asked the secretariat to explore the options, including the possibility of requesting a resolution of the General Assembly or Economic and Social Council (Ecosoc); it also pointed out that sales of ADR publications generate substantial income and, were an Arabic version to be produced, additional sales could offset the cost of translation. It asked the secretariat to submit a report to the Inland Transport Committee at its 84th session in February 2022.

Committee of Experts’ standing working group for RID is that WP15 has retained its earlier provisions for the design, construction, inspection and testing of fixed tanks (tankvehicles) and demountable tanks with shells made of fibre-reinforced plastics (FRP) materials; these have been moved from Chapter 6.9 to a new Chapter 6.13, while the provisions for portable tanks developed by the UN experts and appearing in the 22nd revised edition of the Model Regulations take their place in Chapter 6.9. The Working Party decided it was not necessary to include any definitions in Chapter 6.13, though this might be considered at a later stage. The Working Party returned to earlier discussions surrounding the wording of 6.2.4.1 and revised some of its earlier decisions. As a result, the paragraphs before the table are amended to read: Since 1 January 2009 the use of the referenced standards has been mandatory. Exceptions are dealt with in 6.2.5. Type approval certificates shall be issued in accordance with 1.8.7. For the issuance of a type approval certificate, one standard applicable according to the indication in column (4) shall be chosen from the table below. If more than one standard may be applied, only one of them shall be chosen. Column (3) shows the paragraphs of Chapter

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HARMONISATION UPDATE After all that, the Working Party got down to the business of the day: to review the amendments adopted by the previous sessions of the Joint Meeting of RID/ADR/ADN experts and by the Working Party itself at its 109th session. These were endorsed, with some changes. The major difference between those agreed by WP15 and by the RID

 THE UN IS KEEN FOR ADR TO BE ADOPTED BY MORE COUNTRIES AROUND THE WORLD. HOWEVER, AS TUNISIA HAS ALREADY EXPERIENCED, THE LACK OF AN ARABIC

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6.2 to which the standard conforms. Column (5) gives the latest date when existing type approvals shall be withdrawn according to 1.8.7.2.2.2; if no date is shown the type approval remains valid until it expires. Standards shall be applied in accordance with 1.1.5. They shall be applied in full unless otherwise specified in the table below. The scope of application of each standard is defined in the scope clause of the standard unless otherwise specified in the table below. In the table, the heading of column (3) is replaced by: “Requirements the standard complies with”. The Working Party noted that the dates of some standards adopted for reference by the Joint Meeting were placed in square brackets because the standards had not yet been published. The Working Party provisionally adopted the amendments to these standards subject to the publication of the corresponding standards before its 111th session, due to take place in May 2022. PROPOSALS FOR AMENDMENT The European Chemical Industry Council (Cefic) presented the final report of the informal working group on vehicle stability; the Working Party confirmed that the working group has now fulfilled its mandate and endorsed its conclusions. 1.The calculation of the maximum permissible height of the centre of gravity of tank-vehicles, as defined in 9.7.5.1, was added to ADR in 1978 and no evidence has been found that this calculation is incorrect. 2.The definition of the overall width of the ground-level bearing surface in 9.7.5.1 should be clarified in a way that makes it clear which axle is to be used in the calculation. 3.No changes to the application of R111 were proposed as it was not felt possible to extend its application to tank vehicles fitted with tanks tested with a pressure of 4 bar.

 MUCH WORK HAS BEEN DONE TO INCLUDE ELECTRICPOWERED VEHICLES IN THE PROVISIONS OF ADR AND THE WORKING PARTY IS EAGER TO GET THIS FINISHED AS SOON AS POSSIBLE

HCB MONTHLY | MARCH 2022

The Working Party adopted the proposed amendment to clarify point 2, which involves adding the words “of the axle with the greatest width” after the text in parentheses in the first sentence of 9.7.5.1. Spain presented proposals developed by the Joint Meeting’s informal working group on boiling liquid expanding vapour explosion (BLEVE) risk reduction, involving the extension of the application of 9.7.9 to certain FL vehicles so that they are equipped with engine fire suppression and tyre fire protection systems. The chair of the Working Party recalled that such measures complement those concerning safety valves for the protection of tanks, already adopted by the Joint Meeting. The Working Party agreed to adopt the changes, noting that they should be limited in scope and come with a transitional measure that could allow further refinement. A proposal by the European Industrial Gases Association (EIGA) to include FL vehicles used to transport compressed flammable gases was not supported; it was, though, confirmed that the new provisions apply also to FL vehicle carrying tank containers. As a result, 9.7.9 is amended to read:

Additional safety requirements concerning FL and EX/III vehicles 9.7.9.1 The following vehicles shall be equipped with an automatic fire suppression system for the compartment where the internal combustion engine propelling the vehicle is located: (a) FL vehicles carrying liquefied and compressed flammable gases with a classification code including an F; (b) FL vehicles carrying packing group I or packing group II flammable liquids; and (c) EX/III vehicles. 9.7.9.2 The following vehicles shall be fitted with thermal protection capable of mitigating the propagation of a fire from all the wheels: (a) FL vehicles carrying liquefied and compressed flammable gases with a classification code including an F; (b) FL vehicles carrying packing group I or packing group II flammable liquids; and (c) EX/III vehicles. NOTE: The aim is to avoid the propagation of the fire to the load, for example with thermal shields or other equivalent systems, either: (a) by direct spread from the wheel to the load; or (b) by indirect spread from the wheel to the cabin and further to the load. The new transitional provisions read – for

REGULATIONS 45

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now at least – as follows: 1.6.5.23 EX/III vehicles first registered or entering into service before 1 January 2029, in accordance with the requirements of 9.7.9.2 applicable until 31 December 2022, but which do not conform to the requirements of 9.7.9.2 applicable as from 1 January 2023, may continue to be used. 1.6.5.24 FL vehicles first registered or entering into service before 1 January 2029, which do not conform to the requirements of 9.7.9.1 applicable as from 1 January 2023, may continue to be used. 1.6.5.25 FL vehicles first registered or entering into service before 1 January 2029, which do not conform to the requirements of 9.7.9.2 applicable as from 1 January 2023, may continue to be used. The Netherlands, as chair, presented an

working group on electrified vehicles (EVs), which had met virtually on three occasions between the 109th and 110th sessions of WP15. It had determined the necessary scope of work and had already drawn up some proposals for amendments in Chapter 9.2 to Free DG Label ID poster with every order make reference to EVs. The Working Party was happy with progress and urged the group to continue its work, ideally with the aim of making the use of such vehicles possible for the transport of dangerous goods from 2023. Finland enquired about the requirements for braking equipment in 9.2.3.1 and in particular the reference to UN Regulation No 13. That Regulation includes a reference to Regulation No 13-H and the Working Party was asked to confirm that this could be used instead of Regulation No 13 for the braking requirements of N1 vehicles used to transport

update on the discussions of the informal

dangerous goods; the Working Party agreed that this is the case.

 THERE HAVE BEEN SOME CHANGES IN THE APPLICABILITY OF PROVISIONS TO PREVENT THE SPREAD OF FIRE IN VEHICLES CARRYING FLAMMABLE LIQUIDS AND GASES

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FURTHER PROPOSALS www.labeline.com Norway and Sweden returned to a topic discussed earlier, along with a proposed solution, namely the discrepancies between

A Guide to Exemptions from the International Carriage of Dangerous Goods by Road

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ROGER WRAPSON

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the security provisions in Chapter 1.10 and the exemptions in 1.1.3.6. The majority view was that the provisions of Chapter 1.10 should remain applicable to all high consequence dangerous goods of Class 1, even when 1.1.3.6 is applicable. Norway and Sweden were invited to submit a new proposal at the next meeting, taking account of comments made. It was also noted that 1.10.4 in RID is similar to the corresponding paragraph in ADR and perhaps this matter would need to be referred to the Joint Meeting. Norway and Sweden further proposed that the Class 1 divisions in the tables in 1.10.3.1.2 and S1(6) in Chapter 8.5 be harmonised. Several delegations had a problem with this, specifically that it would mean S1(6) not longer applying to substances and articles of Divisions 1.3 (other than 1.3C) and 1.4. Germany thought it preferable to delete the provisions of Chapter 8.4 and provisions S1(6) and S14 to S24, an idea that gained some traction. It was, though, presented late in the day in an informal document and several delegations expressed a need for more time to consider its implications. In light of that, Norway and Sweden withdrew their paper; Norway will cooperate with Germany to work up a formal proposal based on the German suggestion for the next session. The Netherlands and Cefic arrived with a formal proposal to resolve ongoing discussions about the carriage of substances that require temperature control, following the inclusion in 2019 of newly agreed provisions into 7.1.5 from the 20th revised edition of the UN Model Regulations. One issue that was easy to resolve was that the title of Chapter 7.1 had been amended following the addition of the new 7.1.7 to read: ‘GENERAL PROVISIONS AND SPECIAL PROVISIONS FOR TEMPERATURE CONTROL’. However, this was seen as misleading as 7.1.1

 AS USUAL, A NUMBER OF NEW AND REVISED STANDARDS WERE ADOPTED, ALONG WITH CLARIFICATION AS TO HOW STANDARDS SHOULD BE APPLIED IN THE CONTEXT OF THE REGULATIONS ANNEXED TO ADR

HCB MONTHLY | MARCH 2022

to 7.1.6 apply to containers in general and the title might have legal implications. It was agreed to change the title back to ‘GENERAL PROVISIONS’. It was also agreed to clarify 7.1.7.4.5 by changing ‘Thermal insulation’ at the start of (a) and (b) to “Vehicle, container, packaging or overpack with thermal insulation”. The main change proposed, which again was accepted by the Working Party, was to insert the following text at the start of the existing 7.1.7.4.7: Insulated, refrigerated and mechanically refrigerated containers intended for the carriage of temperature controlled substances shall conform to the following conditions: (a) The overall heat transfer coefficient of an insulated container shall be not more than 0.4 W/m²/K; (b) The refrigerant used shall not be flammable; and (c) Where containers are provided with vents or ventilation valves care shall be taken to ensure that refrigeration is not impaired by the vents or ventilation valves. In the existing text, “or containers” is deleted twice. France had spotted the need for some consequential amendments following the Joint Meeting’s decision at its autumn session

to delete those rows in the table in 6.2.4.2 in which column (3) has an expired date. The same should be done in 6.8.2.6.2 on the inspection and testing of tanks, it felt. The Working Party agreed and deleted the row starting EN 12972:2007 in the table in 6.8.2.6.2. For the updated standard, EN 12972:2018, column (4) is amended to read “Until further notice”. France also followed up on earlier proposals from the European Committee for Standardisation (CEN) to clarify the paragraphs introducing the tables of standards in Chapters 6.2 and 6.8. CEN’s initiative had been welcomed and it had offered to submit an official proposal, taking account of comments received. However, no such comments had been received by the deadline for official documents and France provided in an informal document the changes that had been agreed by the Joint Meeting’s Working Group on Standards. While the proposal was in the form of an informal document, it was deemed permissible to agree to the new texts, on the basis that they do not constitute a material change to the regulations and merely clarify their application. As a result, the paragraphs before the tables in 6.2.4.1 are amended to read:

REGULATIONS 47

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Since 1 January 2009 the use of the referenced standards has been mandatory. Exceptions are dealt with in 6.2.5. Type approval certificates shall be issued in accordance with 1.8.7. For the issuance of a type approval certificate, one standard applicable according to the indication in column (4) shall be chosen from the table below. If more than one standard may be applied, only one of them shall be chosen. Column (3) shows the paragraphs of Chapter 6.2 to which the standard conforms. Column (5) gives the latest date when existing type approvals shall be withdrawn according to 1.8.7.2.2.2; if no date is shown the type approval remains valid until it expires. Free DG Label ID postershall with every Standards beorder applied in accordance with 1.1.5. They shall be applied in full unless otherwise specified in the table below. The scope of application of each standard is defined in the scope clause of the standard unless otherwise specified in the table below. A similar amendment is made to 6.8.2.6.1, except that in the first paragraph is refers to “6.8.2.7 and 6.8.3.7”, in the second paragraph to “1.8.7 and 6.8.2.3” and in the third paragraph to “Chapter 6.8”. Likewise, the same text is amended in 6.8.3.6, and there are some other textual amendments. On the basis of an oral proposal by the secretariat, the Working Party agreed to Tel: +44 (0)870 850 50 51 Email: sales@labeline.com

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WP15 HAS ADOPTED NEW PROVISIONS FOR FRP TANKS FROM THE MODEL REGULATIONS BUT ALSO RETAINED ITS EXISTING PROVISIONS IN A NEW CHAPTER

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reintroduce the definition of coefficient C in the table in 6.5.5.1.6, which had also been adopted as a correction to the International IATA available in spiral format Maritime Dangerous Goods (IMDG) Code. The secretariat will inform the UN Sub-committee of Experts of the change, as it also concerns the Model Regulations. The Netherlands sought to close out discussion of what is to be understood by the ‘date of first registration’ of vehicles, following a decision in principle at the 109th session of WP15. It stressed that this date is important, since it determines which requirements of Chapter 9.2 apply to a vehicle. Following discussion with Sweden and Germany, a guidance document had been drawn up to help dutyholders interpret the requirements. After some editorial amendments put forward by the UK were incorporated, the Working 5 Party agreed that this text will be posted on the UN ECE website. A Guide to Exemptions from the International Carriage of Dangerous Goods by Road th Edition

OTHER BUSINESS With the fall in the number of documents submitted during the pandemic of 2020/2021, the Working Party is aware that the next two years may well see an increase in proposals. In particular, it is also aiming to finish work on the use of electric vehicles during 2022. As ROGER WRAPSON

such, it was agreed that there will be a five-day session in May 2022, a four-day Tel: +44 (0)870 850 50 51 session in November 2022 and two five-day Email: sales@labeline.com sessions in 2023. On a proposal from Belgium and thewww.labeline.com Netherlands, Ariane Roumier and Alfonso Simoni we re-elected as chair and vice-chair, respectively, for 2022.

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QUESTIONS, QUESTIONS MULTIMODAL • THE UN EXPERTS REMAIN CONSTRAINED PHYSICALLY BY THE PANDEMIC RESPONSE BUT HAVE MANAGED TO MAKE HEADWAY ON THE UN MODEL REGULATIONS THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 59th session this past 29 November to 8 December 2021, with Duane Pfund (US) in the chair and Claude Pfauvadel (France) as vice-chair. It was attended, either in person or online, by representatives of 23 countries, the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the UN Food and Agriculture Organisation (FAO), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the World Health Organisation (WHO) and 25 non-governmental

the UN liquidity crisis, renovation work at the Palais des Nations that limited the number of meeting rooms available for hybrid meetings and the allocation of interpretation services all meant that the volume of work was less than might have been hoped. Nevertheless, the Experts did manage to cover a lot of ground, including some new items, and made progress towards the adoption of the text that will form the 23rd revised edition of the UN Model Regulations, due to be agreed by the parent Committee of Experts at its meeting this coming December.

organisations. In addition, observers from Latvia, Luxembourg and Turkey also took part. This second meeting of the Sub-committee for the current biennium would in more normal times be the busiest of the four sessions; however, ongoing Covid-19 response measures, financial constraints triggered by

START WITH A BANG As usual, the agenda began with matters relating to explosives, although there was a noticeable reduction in the number of papers to be considered. The chair of the Working Group on Explosives noted that, during work to revise Test Series H in the Manual of Tests

HCB MONTHLY | MARCH 2022

and Criteria (MTC), it emerged that the density of silicone oil in 28.3.6 and 28.4.2.3.1(a) was given without units. It was recommended that the unit g/cm2 was used, which was agreed and adopted as a correction to the seventh revised edition of MTC. The Working Group had also spotted some errors in two equations in A10.2.3.8; again, these were corrected. The chair of the Working Group on Explosives also reported that two different units for density – kg/cm2 and g/cm2 – are used throughout MTC (and A3.3 has no units at all) and recommended that these should be brought into line. A formal proposal on this topic will be presented at a subsequent meeting. The European Chemical Industry Council (Cefic) appealed for a new entry for 5-Trifluoromethyltetrazole, sodium salt (TFMT-Na), a recently developed insecticide precursor. In its dry form it is explosive and so is only handled and transported as a homogeneous solution in acetone. The competent authorities in Germany, on the request of industry, have issued a temporary approval for its transport as UN 3379 Desensitised explosive, liquid, nos. However, Cefic felt that, in light of the anticipated increase in the volume of the substance that will be shipped internationally, a separate entry would be valuable.

REGULATIONS 49

Those experts who spoke were generally supportive of the proposal but, as toxicity tests have not yet been completed, they felt it premature to make a decision at this point. It was also queried why the proposal included the use of special packing provision PP26, which requires lead-free packagings; Cefic said this is needed to prevent the formation of hazardous solid salts. Cefic invited delegates to send their comments in writing and volunteered to prepare an updated document for consideration at the next session. The chair of the Working Group on Explosives brought the Experts up to date with inter-sessional discussions on classification issues related to fire extinguishing devices, which had identified a possible way forward. This would involve only those devices with a 1.4S classification, independent of the packaging used (if any). It may be useful to adopt a test similar to that in 2.1.3.6.4 of the Model Regulations to help define those devices that could be excluded from the scope of the Regulations. The Sub-committee welcomed the progress made and invited further discussion at the next session. LISTING, PACKAGING AND CLASSIFICATION Cefic brought its usual proposal for the listing of new organic peroxides. The Sub-committee accepted the suggestions, making one change and adding three more substances to the table in 2.5.3.2.4 and making one revision to packing instruction IBC520 in 4.1.4.2. The Council on Safe Transportation of Hazardous Articles (COSTHA) proposed a new Division 4.1 entry for quinone dioxime (QDO), which is widely used as a rubber vulcanisation curative in the manufacture of tyres and has been manufactured and transported without any known incident for more than sixty years. QDO is shipped in significant volumes internationally, either unregulated or as Division 4.1, PG II or PG III, according to classification data from the European

indicated that the material can meet the criteria in Test Series 6(c), which would call for a classification under Class 1. COSTHA’s proposal sought to remove this uncertainty and to pin down a Division 4.1 entry for the material. In particular, COSTHA pointed to 2.1.1.1(a) and 2.1.1.3(a) in the Model Regulations, which in its view indicate that at Class 1 designation is inappropriate for material that is not intended to function as an explosive and is already assigned to another Class or Division. Similar provisions can be found in ADR, the US Hazardous Materials Regulations (HMR) and Canada’s Transportation of Dangerous Goods (TDG) Regulations. The Sub-committee was not won over by COSTHA’s argument; on the contrary, most of those who spoke preferred to consider a Class 1 entry and it was decided to refer the matter to the Working Group on Explosives. China returned to an issue it had raised at the previous session, namely the possibility of exempting manufactured articles containing small amounts of gallium from the regulations by an extension of the scope of special provision 366. There had been no opposition to the proposal but disagreement on how best to achieve its aims. China now returned with two options: either a new entry

for gallium contained in manufactured articles, with amendments to special packing provision PP90 and special provisions 365 and 366; or a new special provision to apply to the existing entry UN 2803 Gallium. Again, there was little opposition to the concept, but no agreement on the best way forward. China will consider the comments made and return with a revised proposal. Spain noted that, in 2012, the Subcommittee had removed the packing groups assigned to all articles in the Dangerous Goods List, and additionally introduced text into 2.0.1.3 and the Guiding Principles expressing this rule. However, packing groups are still assigned to two entries for articles: UN 2870 Aluminium borohydride in devices and UN 3165 Aircraft hydraulic power unit fuel tank, thus contradicting 2.0.1.3. The Sub-committee acknowledged the problem and expressed a preference to delete the packing group assignments for these two entries, with the addition of a general packaging performance requirement in packing instruction P301. Despite opposition from the US, they also agreed that a slight rewording of the explanation in the Guiding Principles was of value. Spain will work those comments into an official proposal for the next session.

Chemicals Agency (ECHA). However, recent registrations under REACH in the EU have

 ISSUES SURROUNDING FIRE EXTINGUISHING SYSTEMS AND CYLINDERS, AND THEIR INITIATION, CONTINUE TO PRESENT THE EXPERTS WITH PROBLEMS

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Tetramethylammonium hydroxide (TMAH) is classified as corrosive, both in solid (UN 3423) and liquid (UN 1835) form. However, the Netherlands reported that several fatalities have occurred after spills of TMAH solution and argued that a toxic hazard should be recognised in the classification. Human experience and animal testing support both corrosive and toxic hazards but do not make clear what packing group would be appropriate and, in an informal document, the Netherlands sought input from the Experts. There was a general agreement that the classification of TMAH should be revised, preferably based on existing human data, if available, otherwise on animal data. The Netherlands invited all experts to send written comments and offered to prepare an official document for consideration at the next session. China returned to a topic it had raised during the previous biennium, namely the use of batteries (wet, non-spillable) installed in cargo transport units (CTUs) and used as portable energy storage devices, particularly

 QDO, USED AS A VULCANISING AGENT IN THE RUBBER SECTOR, MAY HAVE TO BE RECLASSIFIED AS AN EXPLOSIVE, BASED ON REACH REGISTRATIONS

to power fixed fire extinguishing systems. China proposed a new entry, analogous to UN 3536 Lithium batteries installed in cargo transport unit. There was some support for China’s proposal but most of the Experts who spoke felt that it needed further work. Spain was of the opinion that the definition of CTU in UN 3536 needed to be finalised before going any further. Experts were invited to send written comments to China so that an official proposal can be made at the next session. During its work to harmonise the names of UN numbers in the Spanish language version of the regulations, Spain had noted some inconsistencies between the UN Model Regulations and RID/ADR. In particular, Spain mentioned UN 2426 Ammonium nitrate (hot concentrated solution). At its March 2021 session, the RID/ADR/ADN Joint Meeting had agreed to harmonise with the UN Model Regulations but invited Spain to bring the matter to the attention of the UN Subcommittee to determine if other measures were needed. Having compared the UN Model Regulations with RID/ADR and the International Maritime Dangerous Goods (IMDG) Code, Spain now suggested some textual amendments to special provision 252. There was broad support for the proposal but not for Spain’s

solution. Instead, after discussion, it was decided to re-write SP 252 completely. Two figures have been left in square brackets pending confirmation. 252 (1) Ammonium nitrate hot concentrated solutions can be transported under this entry provided: (a) The solution contains not more than 93 % ammonium nitrate; (b) The solution contains at least 7 % water; (c) The solution contains not more than 0.2 % combustible material; (d) The solution contains no chlorine compounds in quantities such that the chloride ion level exceeds [0.02] %; (e) The pH of an aqueous solution of 10 % of the substance is between [5 and 7], measured at 25 ºC; and (f) The maximum allowable transport temperature of the solution is 140 ºC. (2) Additionally, ammonium nitrate hot concentrate solutions are not subject to these Regulations provided: (a) The solution contains not more than 80 % ammonium nitrate; (b) The solution contains not more than 0.2 % combustible material; (c) The ammonium nitrate remains in solution under all conditions of transport; and (d) The solution does not meet the criteria of any other class or division. China urged that the provisions in 6.1.3.1 for the UN specification marking of packagings be made more rigorous. In particular, the requirement for the markings to appear “on the top or on a side” of packagings raises a safety issue with removable head packagings, as the head may be lost or replaced during use. The Sub-committee expressed its general support for the proposal but some Experts felt more work was needed on the proposed wording of the amendment to 6.1.3.1 and the accompanying transitional provision. China plans to return at the next session with a revised proposal. The second part of this two-part report on the UN TDG Sub-committee’s session in November and December 2021 in next month’s HCB will cover discussion of energy storage systems, the transport of gases and miscellaneous proposals for amendment.

HCB MONTHLY | MARCH 2022

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NOT OTHERWISE SPECIFIED KNOW YOUR TOOLS For those nefarious of mind and short of cash, the sight of a well-stocked cashpoint (ATM) can be a great temptation. We have heard over the years of some ingenious means being used by thieves to steal a whole machine, up to and including breaking down the wall with a bulldozer. In Russia last month, two would-be thieves took a more delicate route, attacking a Sberbank ATM in an apartment building in Ivanteyevka using gas – it is not clear what they were trying to do with the gas, except perhaps set off some sort of fire that might dislodge the ATM from its position in the wall. Whatever they were attempting, it certainly did make a bang, but not the sort they were hoping for. The bank was badly damaged in the blast, though the ATM remained securely fixed in the wall, but one of the perps was killed on the spot; the other “vanished from the scene of the crime”, reports said.

move the protesters on by force had only hardened their resolve to stay. With options seemingly running out, parliament officials took other measures, firstly dousing them with sprinklers – possibly a pointless exercise in a country that is no stranger to rainfall – and then taking a leaf from the US playbook and subjecting them to “sickly sweet” pop at high volumes. Tracks included Baby Shark (what’s that? – ed), Macarena and Barry Manilow’s Mandy. Police officers caught in the crossfire were less than amused. “It certainly wouldn’t be tactics we would endorse and it’s something we would have preferred not to occur,” Chief Superintendent Corrie Parnell said to reporters. “But it did occur, so we have to deal with what we’ve got in front of us.” Worse, the tactic proved ineffective and the protesters stayed firmly where they were. It might be interesting to look at a Venn diagram of anti-vaxxers and Barry Manilow fans.

LET THE MUSIC PLAY We recall that when US troops were attempting to capture the Panamanian leader Manuel Noriega in 1989, they surrounded the building where he was hiding and played the music of Van Halen at loud volume. It is perfectly understandable that such aural torture would encourage even the hardest felon to surrender to the authorities, and so it happened then. More recently, crowds of anti-vaxxers

MIND YOUR LANGUAGE Speaking of music… As writers, we here on the back page are alert to changes in meaning and word usage so we sat up when we saw the latest weather warnings issued by the UK meteorological services during a recent bout of stormy weather. Warnings of rain, wind and other weather are now graded from ‘yellow’, through ‘amber’ to ‘red’, which seems sensible, but the way these words are used

gathered on the lawns of the parliament building in Wellington, New Zealand were given similar treatment. Hundreds of protesters had been camped there for a week, ignoring the please of prime minister Jacinda Ardern for them to “go home, and take your children”. Initial attempts by the police to

can cause confusion. For instance, rather than a “yellow warning of snow” there was a “yellow snow warning”. Which reminded us that Frank Zappa issued a similar warning about 50 years ago: “Watch out where the huskies go/And don’t you eat that yellow snow”.

HCB MONTHLY | MARCH 2022

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HCB Magazine March 2022

Articles inside

Making progress on the Orange Book

ADR 2023 nearly there

The roots of NCB

Incident Log

Conference diary

News bulletin – chemical distribution

DKSH thrives in Asia

H Essers leverages Dutch assets

News bulletin – tanks and logistics

Acquisitions boost IMCD

Dachser’s help for industry

News bulletin – tanker shipping

Good news for Klinge

Terntank goes emission-free

Letter from the Editor

Exolum speeds up the change

Solvang looks at carbon capture

Learning by Training

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30 Years Ago

Vopak in transition