HCB Magazine March 2021 by Enhesa Product

M O N T H LY M A R C H

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MAKING TRACKS GETTING RAIL TO WORK FOR CHEMICAL LOGISTICS DOING BUSINESS IN THE NEW AMERICA MORE INTEREST IN TANK CONTAINERS DIGITISATION WORKS FOR TERMINALS

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I N F O R M AT I O N

D A N G E R O U S

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

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

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UP FRONT 01

EDITOR’S LETTER

I have a confession to make. Don’t tell anyone, but every

and corrected it, but my copy of ADR 2021 certainly has

month I have a sense of dread when the new issue of HCB

the wrong information and other rulebooks may well do

arrives back from the printers. Too often – at least in my mind

too. Will the respective regulatory authorities issue

– I spot a mistake I should have picked up on the last set of

corrigenda? Or will shippers looking to take advantage

proofs. Sometimes it’s my error (spelling mistakes in headlines

of the Excepted Quantity relief for UN 3208 have to go

are the worst) but as I’m responsible for everything that goes

through an approval process?

out under the HCB name, any mistake is down to me. So you could imagine the Schadenfreude (there is an English

Putting my editor’s hat on, I know only too well that mistakes can be costly. Publishing material carries

word for it, ‘epicaricacy’, but no one I know ever uses it, or even

responsibilities, not least the risk of libel. But publishing

knows how to pronounce it) I felt when going through the report

incorrect information can also raise liabilities – which is why

of the last meeting of the UN Sub-committee of Experts. China

pretty much any technical or market publication includes

had put in a paper wondering why the Excepted Quantity limit

a disclaimer, which readers can in HCB’s case find at the

for UN 3208 (metallic substance, water-reactive, nos) was

bottom of the Contents page. What it says, in effect is that if

shown as ‘E0’ when the other five generic entries for water-

you, as the reader, make a commercial decision on the basis

reactive substances (all Division 4.3, packing group II) have

of information in HCB and it goes wrong, it’s not our fault.

‘E2’. China thought this might be a mistake, not least since the ICAO Technical Instructions have ‘E2’ against UN 3208. ICAO chipped in at this point, noting that UN 3209 (metallic substance, water-reactive, self-heating, nos) had ‘E2’ when it should be ‘E0’. It reckoned there had been a typing

Here at HCB we do take a great deal of effort to ensure that what we write is correct before it gets published, though as I noted above, it’s not always possible to get everything 100 per cent right all the time. Having flicked through the opening pages of ADR,

error when the Excepted Quantity codes were added and

I don’t see any such disclaimer. Does that mean, therefore,

UN 3208 and 3209 were given each other’s values. The

that shippers that have had to spend extra cash due to the

Sub-committee agreed this was an error, which was easy

erroneous absence of an Excepted Quantity provision for

enough to put right. As a result, the correct values will be

UN 3208 have a potential case for compensation? I suspect

shown in the 22nd revised edition of the UN Model Regulations,

that would be a difficult case to pursue in the courts and

due for publication later in the year.

I sincerely hope it doesn’t come to that. We are all human,

So far, so good. However, it does mean that the current

even regulators.

modal regulations, which are based on the 21st revised edition, have got the wrong numbers. ICAO may have spotted the error

Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 42

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NUMBER 03

UP FRONT Letter from the editor 30 Years Ago Learning by Training

01 04 05

STORAGE TERMINALS Part of the solution ILTA ready to work with Biden 06 Out of the woods US terminals see recovery 08 Down Mexico way Implico takes automation to Latin America 10 Best in breed Rotork joins E+H programme 12 In transition Vopak takes steps for the future 14 News bulletin – storage terminals 16 CHEMICAL TANKERS Behind the curtain Odfjell sees trouble coming TANKS & LOGISTICS Funds for growth Investor takes big slice of Peacock A year to remember Bertschi remains confident

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

Smooth Finnish Oiltanking, Operail partner in rail Take a bath Suttons upgrades wash bay In the range Temperature monitoring from Savvy Vive la chimie! Dachser enjoys growth in France Stack them up Chemion expands container terminal News bulletin – tanks and logistics CHEMICAL DISTRIBUTION Change the channel NACD looks to the new administration With the programme Univar progresses transformation News bulletin – chemical distribution COURSES & CONFERENCES Conference diary Classes in glasses Labelmaster intros 3D learning SAFETY Incident Log All at sea

24 26 27 28 29 30

Containing container fires Lift and separate ATEX protection with Pyroban Ready for anything Midland helps rail responders Chilled out The risks of dry ice in air transport Hold on to data Hoyer addresses cyber-security

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REGULATIONS Last chance saloon UN Experts finalise Orange Book changes 50 All tanked out Upcoming amendments to RID 58

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BACK PAGE Not otherwise specified

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

NEXT MONTH Advances in digitisation Tank container fleet review Chemical distribution in the Middle East More changes to the Model Regulations

Managing Editor Stephen Mitchell Email: stephen.mitchell@hcblive.com Tel: +44 (0) 208 371 4045 Designer Jochen Viegener

Commercial Director Marc Freed Email: marc.freed@hcblive.com Tel: +44 (0) 208 371 5136

Production Manager Binita Wilton Email: binita.wilton@hcblive.com Tel: +44 (0) 208 371 4041

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ISSN 2059-5735 www.hcblive.com

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

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30 YEARS AGO A LOOK BACK TO MARCH 1991

Sometimes, when reviewing a copy of HCB from three decades ago, it is easy to slip into the thought that nothing much has really changed. In March 1991, for example, HCB reported on changes to the IMDG Code, new special agreements under ADR, developments in deepsea and shortsea chemical tanker shipping – including the latest from Odfjell and Stolt Tankers – and drop tests for open-head drums. But then, on page 3, there is a photo of a woman sat at a computer terminal, in what looks at first sight like a launderette but on closer inspection is a room full of mainframe computers with whirring wheels and racks of tapes. The fact that she appears to be wearing 80s clothing suggests it was an old photo even in 1991 but perhaps it was deemed sufficiently up to date to illustrate an article on the common failings in dangerous goods documentation and container packing certificates. And on page 5, where editor Mike Corkhill had his regular chance to discuss the latest developments, we find another one of those major shifts in the industry that were happening in the early 1990s. In his Comment column, Mike discussed the emergence of the use of the ISO 9000 standard and safety audits by chemical shippers,

initiative, initially in Canada in 1985 following the massive derailment in Mississauga in 1979. By 1991, work was going on in Europe to formalise the approach, through EPCA and Cefic, with Exxon Chemical having proposed a Ship Operational Standards Assessment System to fit in with the International Chemical Environment (ICE) emergency planning and response network. Exxon’s ideas, matched by work with API and the Chemical Manufacturers Association in the US, envisaged an independent inspection agency with fully qualified and trained inspectors around the world, in order to vet the global chemical and gas tanker fleet – a job that would, it was thought, take about a year (good luck with that). That plan eventually emerged as the Chemical Distribution Institute, working in the marine and terminal sectors alongside the SQAS scheme for road and intermodal transport. On the topic of chemical tankers, the March 1991 issue included a feature on the 12,600-dwt newbuilding Jo Aspen, delivered by Società Esercizio Cantieri in Italy to Jo Tankers, which was at the time the largest fully stainless steel vessel ever built. HCB pondered on the value of a fully stainless tanker, given the high cost compared

saying: “Responsible transport operators have welcomed this greater recognition of both the quality assurance certification and a good safety audit result as yardsticks by which shippers choose their select band of carriers.” The use of the word ‘responsible’ is apposite; the chemical industry and its logistics providers were in the process of beefing up their standards, prompted not least by the arrival of the Responsible Care

to a coated ship, and felt that it was being specified more widely than was warranted purely from a technical point of view. On the other hand, the range of high-specification chemicals being carried by sea was growing rapidly at the time and the operational efficiencies and lower running costs offered by stainless steel tanks were becoming more valuable. Since then, the upper size limit for stainless steel tankers has been extended up to full MR class.

HCB MONTHLY | MARCH 2021

UP FRONT 05

LEARNING BY TRAINING By Arend van Campen

BUSINESS PERSPECTIVES?

When a gift shop owner committed suicide because he was ordered to close his shop just before Christmas after he purchased extra Christmas decoration from his supplier it was because needed perspectives to be able to survive financially had been taken away. A restaurant owner opened her restaurant here in Switzerland yesterday by ignoring the disproportionate lockdown regulations. She was crying when the police forced her to throw out her patrons. Her tears tore me apart too. What we are experiencing is a dehumanisation process disguised as a humanitarian motivation to save lives. It is increasing a so-called social dualism, a separation between us and them, which will have its effects on everything, including our hazardous cargo industries. When hope, trust in institutions, confidence in future stable markets or trustworthy perspectives are reduced to the daily whim of unscrupulous politicians, all regular, perhaps old-fashioned businesses or industry will suffer. The collapse of that gift shop can’t be seen outside its context and evokes a cascading effect, also touching our sector. When we look at these events systemically it becomes easy to realise that the domino effect is evident; gift shop-transport-manufacturer-chemical suppliershipping-trader-producer, everyone in the supply chain will be

invisible virus is causing dangerous narrowmindedness. This can be physically understood as fear. People, including politicians, are afraid and a similar systemic causality can be detected: fear, stress, narrowmindedness, harm to other people. The excuse is a persistent self-suggestion reminding themselves that they are saving lives. This enables them to ignore their own conscience, supported by immunologists and virologists who are not aware, or refuse to see the psychological, social and financial impact on shop or restaurant owners and the interdependent supply chain. So, how do we restore trust in the system and build confidence when we realise that business as usual is over? Well, we have to re-design our businesses, create sustainable, flexible methods to ride the low tide for a long while to come. We have the tools, the knowledge and experience to do it in cooperation with you. TankTerminalTraining celebrates 10 years of services this year. We are supported by the research of the think tank ‘Sustenance4all’. We developed a method to measure sustainability which can be implemented to predict business development and manage investment risks. The criteria for a viable future have been recognised and can be applied immediately should you be open to change. The old times are gone.

disturbed. Same for the restaurant owner. She won’t be able to sell her meals, therefore won’t buy groceries, vegetables or meat from local producers, farmers, cheesemakers, supermarkets, which then will endanger payments to landlords, staff, electricity companies, and so on. At this moment, this collateral damage is either being overlooked or is deliberately ignored, because an obsession to eradicate an

The virus can be seen as a messenger bringing us the good or the bad news. Choosing which news you want to hear is your choice alone. This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.

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PART OF THE SOLUTION USA • THE TERMINAL INDUSTRY IS READY TO WORK WITH THE BIDEN ADMINISTRATION ON SHARED GOALS FOR SUSTAINABILITY AND ECONOMIC GROWTH, SAYS ILTA PRESIDENT KATHRYN CLAY

operations, practicing sound water resource management and establishing productive dialogues with their neighbouring communities.

AS MANY NEW political appointees and elected officials have arrived in Washington, the International Liquid Terminals Association (ILTA) has begun work to educate these new incumbents. Our dialogue with these newly sworn-in officials involves explaining to them both the challenges facing our industry and the opportunities for terminals to be a part of the solution for our shared goals. ILTA member companies are

commitment to its mission and standards remains resolute. Within hours of taking the oath of office, President Biden issued a series of executive orders to reverse many of President Trump’s orders, including a host related to climate, the environment and energy. President Biden also has indicated that his regulatory agencies will prioritise policymaking related to climate change, environmental justice and

ALREADY ON THE CASE The new administration’s priorities are likely to accelerate plans already underway at many terminal companies to address sustainability. In the longer term, we see tremendous growth potential for renewable fuels and chemicals derived from renewable sources – and supply chains for these commodities depend on liquid terminals today. Terminals store and handle crude oil and a wide variety of petrochemicals and fuels, as well as a vast array of other non-energy products like liquid foods, such as vegetable oils and molasses. Other liquid fuels, or liquid energy carriers, may be a part of our energy

committed to providing safe, secure, efficient and environmentally responsible services to energy and fuel supply chains. Terminals connect modes of transport and enable economic growth at home and abroad. While the political landscape has changed at the federal level, the terminal industry’s

encouraging growth in renewable energy. The Democrat-led Congress has echoed his calls, with leaders signalling that they will move quickly to address environmental issues. In the near term, terminal operators are working to support these same goals by improving the energy efficiency of their own

mix in the coming decades. No matter the source or the carbon footprint of a liquid commodity, at some point its supply chain will depend upon the storage and logistics services provided by a liquid terminal. The commitment that ILTA member companies have made to sustainability is

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apparent in other ways as well. Terminal companies are increasingly investing in renewable energy projects such as hydrogen production and solar installations. One innovative approach involves installing solar panels on the roof of tanks. Such actions not only reduce greenhouse gas emission, but they also help offset the terminal’s own energy costs, which average about 20 per cent of a terminal’s operating budget. BACK IN THE FOLD President Biden’s prioritisation to combat climate change was made clear by one of his very first actions on entering the White House: announcing that the US would rejoin the Paris Agreement on Climate Change. President Biden also directed all executive departments and agencies to immediately review and take appropriate action “to address federal regulations and other executive actions taken during the last four years that were harmful to public health, damaging to the environment, unsupported by the best available science, or otherwise not in the national interest”. The President also moved quickly by re-establishing the Interagency Working Group on the Social Cost of Greenhouse Gases and directed the agencies of the federal government to account for the full costs of greenhouse gas emissions, including climate risk, environmental justice and inter-generational equity. President Biden also elevated climate’s role in foreign and security policy, such as requesting a national intelligence estimate on the security implications of climate change.

 KATHRYN CLAY (RIGHT), ILTA PRESIDENT, SAYS THE US TERMINALLING INDUSTRY NEEDS TO HELP THE NEW BIDEN ADMINISTRATION TO PURSUE ITS STRATEGIC AND REGULATORY AIMS

With Democrats holding slim majorities in both the House and Senate, President Biden will likely continue to look to additional executive and regulatory actions to enact the $2 trillion environmental plan he outlined during his presidential campaign. Major climate change legislation will be difficult to achieve. Democrats are divided on the subject and President Biden is unlikely to pick up much, if any, Republican support. Democrats have tried and failed to pass stand-alone climate change legislation when they last controlled unified government. Expect inclusion of smaller legislative proposals to address climate to ride inside stimulus, infrastructure and appropriations measures. Some instances of potential bipartisanship and compromise are possible. Both the Biden administration and conservative voices such as the US Chamber of Commerce are calling for dramatic investments in the nation’s infrastructure. The White House has indicated that a major infrastructure bill is a top priority, behind pandemic relief, and both Democrats and Republicans in Congress have signalled a willingness to work with President Biden to get a package passed. Ports and waterways have been a significant area of under-investment for many years, and ILTA will work with coalition partners to advocate for their inclusion in an infrastructure package. This could mean more money for maintenance, repair and expansion of harbours, ports and inland waterways.

industry’s dynamic story with other industry groups, external stakeholders, and government decisionmakers. Founded in 1974, ILTA is an advocate and key resource for the liquid terminalling industry. With headquarters in the Washington, DC, area, ILTA advocates on behalf of the liquid terminal industry in Congress and at the federal agencies. ILTA also maintains close working relationships with other organisations that interact with the tank storage industry. ILTA members’ facilities provide critical links between all modes of transport for liquid commodities, such as crude oil, petroleum products, chemicals, renewable fuels, fertilisers, vegetable oils and other food-grade materials that are central to the US economy. Terminals provide essential logistics services that spur trade both within the US and connect the US economy with overseas markets. ILTA members are in all 50 states and in many other foreign countries. ILTA’s membership also includes about 400 companies that supply equipment and services to the terminal industry. www.ilta.org

COMMITMENT TO INDUSTRY The liquid terminals industry will continue to be a key part of our national energy infrastructure no matter which political party holds the reins in Washington. Terminals will also remain imperative to helping the US trade balance, facilitating the import and export of a wide variety of products, creating jobs and spurring our economy. At ILTA, we are committed to making sure these contributions are known and valued in policy discussions. We look forward to the work ahead, sharing our

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OUT OF THE WOODS

pandemic had devastated much of the global economy,” says NuStar president/CEO Brad Barron.

USA • LOW COMMODITY PRICES AFFECTED MIDSTREAM OPERATORS IN 2020 JUST AS MUCH AS THE COVID-19 PANDEMIC, BUT OPTIMISM PREVAILS FOR 2021 WHEN THE HISTORY books write the story of 2020, it will undoubtedly be dominated by the Covid-19 pandemic. But for companies operating in the oil patch in North America, just as significant was the slump in crude oil prices early in the year, with a knock-on effect on natural gas and downstream prices and investment throughout the supply chain. The extent to which those factors affected the financial performance of midstream operators varied widely, depending on each company’s exposure to the oil sector and the extent to which they were protected by take-or-pay contracts or similar dependable

with many of them reporting sharp reductions in revenues and income. Enterprise Products Partners, for instance, reported revenues of $27.2bn for 2020, down 17 per cent on the $32.8bn recorded in 2019, with net income dropping by the same percentage to $3.89bn. Enterprise’s diversified operating base, together with a policy of strict cost control, enabled it to restrict the impact of the adverse market conditions, although it booked non-cash impairment charges of some $891m, largely relating to its natural gas pipeline operations. NuStar Energy, on the other hand, was

COMING OUT All senior executives have taken great pains to stress the importance of their workforces during the pandemic, and Barron is no exception: “I am also happy to say that despite a very difficult year for our economy, our industry and our company, our operations did not skip a beat in 2020 thanks to the dedication of our employees. We had no work-related Covid-19 transmissions and our safety and environmental record continued to be significantly better than our industry averages.” Likewise, Jim Teague, co-CEO of the general partner of Enterprise Products Partners, says: “We are extremely thankful and proud of Enterprise’s employees for their dedication and perseverance in responding to the challenges and opportunities during 2020 caused by

income streams. But all felt the pressure,

badly affected, reporting a net loss of $199.0m for the year, after non-cash impairment and operational charges amounting to nearly $400m. “As we came into 2020, we had just booked the best fourth quarter in company history and we were expecting a record year. However, by March 2020, the Covid-19

the effects of the pandemic.” As we now near the end of the first quarter of 2021, the pandemic is still with us, although there are signs that the worst might be over. “We are optimistic that the combination of the vaccines, significant government stimulus and shorter economic

 CASH WAS TIGHT DURING 2020 BUT MIDSTREAM OPERATORS ARE STILL ADDING TO THEIR INFRASTRUCTURE TO KEEP HYDROCARBONS MOVING THROUGH THE CHAIN

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STORAGE TERMINALS 09

cycles associated with pandemics and natural disasters will lead to the world emerging from this economic sudden stop in 2021,” says Teague. “We are encouraged by the early signs of a rebound in the global economy that we see through strong domestic and international demand for NGLs, ethylene and propylene and the continuing recovery in the demand for refined products.” “We are starting this year encouraged by the rebound we have seen, and continue to see, across our footprint,” says Barron. “January was promising, and we hope to see that improvement continue. Given all we accomplished in 2020, I am confident that NuStar is positioned to build steady, stable value in 2021 and beyond. To do that, we will continue to focus on our strategic priorities: operating safely, reliably and efficiently; lowering our leverage to further strengthen our balance sheet.”

ENERGY EVOLUTION The increased focus on cost control has led many midstream operators to cut capital expenditure over the past year, although Enterprise still managed to invest some $3.3bn over the course of 2020, of which $3.0bn represented growth projects. It is also planning to continue this in 2021, with three major projects: one ethane pipeline, one natural gas pipeline and a new hydrotreater for natural gasoline. Furthermore, as Teague explains: “We continue to look at opportunities to increase our use of renewable power and to economically reduce emissions. We estimate by 2025 that 25 per cent of our power will be from renewable sources. In addition, several of our growth capital projects in the early stages of development are consistent with the theme of energy evolution.”

There is a similar story at NuStar, where around half of its planned growth project investment is targeted at renewable fuels, much involving its west coast storage terminals. During 2020, one-third of revenues from NuStar’s west coast terminals came from services relating to renewables and this is expected to grow. “As we continue to complete our 2021 west coast projects, we expect renewable fuels-related services to grow to contribute about 35 per cent of total west coast revenue by year-end 2021 and approach 40 per cent by year-end 2022,” says Barron. “Our west coast renewables network is growing and will continue to be the key to NuStar’s ability to thrive as we all navigate through the nation’s evolving energy priorities.” www.enterpriseproducts.com www.nustarenergy.com

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IMPLICO GROUP HAS teamed up with Mexican solutions integrator Apollocom to form a partnership to digitise the Mexican downstream sector. The joint project centres on Implico’s feature-rich terminal management system, OpenTAS TMS, which is seen by Apollocom as the ideal solution to open up the Mexican bulk liquids storage sector to the benefits of digitisation. “We see great opportunity in Mexico,” says Thomas Roller, head of sales and marketing at Implico. “On the one hand, the country possesses vast oil reserves and has a high daily demand for oil. On the other hand, it has only in recent years invited foreign companies

most forward-looking and open-to-innovate companies will take the lead. “We believe that OpenTAS TMS is a vital means to achieve this. And we believe that Apollocom, with its great expertise in terminal automation and process enhancement, is the perfect partner to introduce the Mexican market to the many advantages of OpenTAS TMS,” Roller adds. The tank storage market in Mexico offers a lot of potential for digital transformation specialists such as Implico and Apollocom. Currently, the priority is to increase storage days of hydrocarbon products in storage and distribution terminals on Mexican ground.

DIGITAL IS THE KEY Belinda Quijano, managing director of Apollocom, points out: “Digitalisation is key to success – this claim, which is currently more true than ever, can be applied to any industry or market. It is especially valid, however, for the Mexican downstream industry. Here we see huge demand for a capable, flexible and feature-rich solution providing substantial business benefits - a solution like OpenTAS TMS, which we are eager to bring to Mexico together with our new partners at Implico Group.” The partnership with Apollocom follows swiftly on from Implico’s announcement this past December that it had struck up a partnership with the digital transformation and IT consultancy Minsait to guide and support oil and gas companies in Latin America, Spain, Portugal and Italy in their digitisation endeavours. Both Implico and Minsait are convinced that oil and gas companies must streamline and target their operations through digitisation now more than ever. The better their internal and external processes are designed, the more direct and purposeful they can position themselves in a market that is hard to predict and constantly in motion. According to Implico and Minsait, this is especially true in today’s – and tomorrow’s – oil and gas landscape, which is heavily impacted by the ongoing Covid-19 pandemic. “These days, all market participants in downstream face the same challenge – namely to keep their margins intact in a disruptive, volatile environment,” says Cesar Salan, director of Minsait. “To achieve this, they must digitise their businesses and render their processes lean, flexible, aim-oriented and efficient. Implico and Minsait have the knowledge, mindset, connections and technology to make this happen.” The partnership between Implico and Minsait will centre on Implico’s established

to enter this business. This has created a special field of tension in which the

Since the energy reform was introduced, many of the world’s leading tank storage providers either started or announced the construction of storage facilities in Mexico. Besides these new structures, there are also more than 70 terminals operated by the state-owned national oil company Pemex.

SAP downstream solutions for distribution and fuel retailing. Minsait too is a long-running SAP partner and together the two companies will help their customers transform more quickly, more smartly and more lastingly. www.implico.com www.apollocom.com.mx

DOWN MEXICO WAY DIGITISATION • LEADING TERMINAL AUTOMATION SPECIALIST IMPLICO HAS STRUCK TWO PARTNERSHIPS TO SPREAD THE WORD ON THE BENEFITS OF DIGITISED OPERATIONS

 IMPLICO SEES GREAT PROMISE IN LATIN AMERICA’S DOWNSTREAM SECTOR, INKING TWO COLLABORATIVE DEALS WITH LOCAL SPECIALISTS

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BEST IN BREED

ROTORK ARRIVES From the start of 2021, that roster has

operational efficiency, reduce environmental impacts, improve product quality and provide safer working environments. “Having Rotork join our partner programme provides us with additional expertise in actuators, instrumentation and the larger flow control market,” says Jörg Reinkensmeier, marketing manager at Endress+Hauser. “We will exploit this potential together with all of our Open Integration partners, giving our customers freedom of choice.” “This programme is a great opportunity to collaborate towards common customer benefits in a pre-sales stage and to extend our scope as a trusted partner in the market,” says Armin Nagel, head of sales, CPI EMEA, at Rotork. “The reliability and quality that we have come to expect from Endress+Hauser is also a key driver at Rotork. The company, and I personally, are looking forward to working together in the future to help our partners to provide premium flow control solutions.” The Open Integration programme supports Endress+Hauser’s mission to supply its customers with devices, solutions and services that generate valuable knowledge and thereby to help them improve their products, work

expanded to 13 with the arrival of Rotork, a market-leading global provider of missioncritical flow control and instrumentation solutions for oil and gas, water and wastewater, power, chemical, process and industrial (CPI) applications. Rotork helps customers around the world to increase

more economically and protect people and the environment. Established in Switzerland in 1953, it how has production facilities in five continents, 50 sales offices around the world and representatives in another 70 to ensure timely and competent support. www.endress.com

DIGITISATION • ROTORK HAS JOINED THE ENDRESS+HAUSER OPEN INTEGRATION PARTNER PROGRAMME, ADDING TO A ROSTER OF LEADING CONTROL AND AUTOMATION PROVIDERS HOW CAN FIELD instruments and components be easily integrated into automation systems? The answer to this question is becoming increasingly important as the digitisation of industrial production progresses. Endress+Hauser, a global leader in measurement and automation technology, set up its Open Integration partner programme to help manufacturers looking to ensure the streamlined interaction of their complementing products. The Open Integration cooperation partners test and document the integration of their offerings and how digitisation can be fully achieved within typical process automation applications. Users benefit in two ways: by being able to combine the best of breed products for their plant operation, and through fast and smooth commissioning. Automation technology suppliers value

 GETTING EQUIPMENT PROVIDERS TO WORK TOGETHER, ENDRESS+HAUSER IS HELPING TO DELIVER THE AUTOMATION SOLUTIONS CUSTOMERS NEED

HCB MONTHLY | MARCH 2021

the advantages of the Open Integration programme as well, as they can ensure fine-tuning of the combined offering well in advance of installing and commissioning at customers’ sites. By the end of 2020, 12 companies had joined the Open Integration programme, all leaders in the field of control technology, fieldbus infrastructure and measurement or actuator technology: Auma Riester, Bürkert, Festo, Flowserve, Hima Paul Hildebrandt, Honeywell Process Solutions, Pepperl+Fuchs, Phoenix Contact, Rockwell Automation, Schneider Electric, Softing Industrial Automation and Turck.

STORAGE TERMINALS 13

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IN TRANSITION

ROYAL VOPAK HAS reported annual revenues for 2020 of €1.19bn, down on the €1.25bn recorded in 2019 but up by 3.2 per cent when recent divestments are taken into account. Similarly, excluding exceptional items, EBITDA rose by 2.6 per cent to €791.5m, although net profit dropped by 15 per cent to €305.8m. Eelco Hoekstra, CEO, is upbeat about the results: “In 2020, we delivered EBITDA growth (post-divestments) in a more volatile business environment. We have outperformed on costs to defend EBITDA and delivered on growth projects, despite construction delays of some

has meant for Vopak: “The Covid-19 pandemic impacted the industries we serve. We have seen unprecedented changes in supply and demand of gas, chemicals and oil and subsequent response of our customers to their portfolios and supply chains. We have experienced an acceleration in the energy transition. We have seen the high dependency on digital infrastructure. “Our strategy is aligned with these trends and strategy delivery progressed in 2020. We continued transforming our portfolio for the future and invested more than €500m in

CHANGE IN PRACTICE The Covid-19 pandemic, while undoubtedly a challenge, has presented an opportunity to focus on the changes needed to prosper in the coming, more digitised world. Vopak has taken that opportunity, as Hoekstra says: “Our digital transformation is progressing well and the pandemic highlighted the benefits of our leading digital infrastructure. We continued the roll-out of our cloud-based system for our terminals, as part of broader efforts to develop our digital architecture to support the industrial logistic chains.” Other factors are also at play, not least the coming energy transition and the imperative to focus on sustainability in industrial operations. Again, though, these changes will present opportunities, as Hoekstra continues: “We are excited by the future prospects and keep our focus on performance and long-term value creation. We have momentum in capturing opportunities to serve large-scale industrial clusters and are advancing our

projects due to Covid-19 restrictions.” The challenges posed to storage terminal operators by the Covid-19 pandemic have been well documented and have come at a time when they are facing a range of other issues that threaten the traditional way of doing business. Hoekstra explains what this

growth, resulting in an additional 1.6m m³ of capacity to meet growing customer demand, particularly in Asia and the Americas. Good progress was made in our industrial terminal portfolio with the acquisition of the Dow terminals in the US Gulf coast with our partner BlackRock,” Hoekstra adds.

efforts in developing infrastructure to support the energy transition. We continue transforming our portfolio and position our company strategically towards more sustainable forms of energy and feedstocks. “We aim to allocate the majority of our growth investments to industrial, gas and new

STRATEGY • VOPAK PERFORMED WELL IN THE CHALLENGING MARKET IN 2020 BUT IS TAKING STEPS TO PREPARE ITSELF FOR THE DIFFERENT TRADING ENVIRONMENT TO COME

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STORAGE TERMINALS 15

energies infrastructures,” Hoekstra adds. “Our positive views on chemicals have not changed. New growth investments in oil infrastructure are expected to be reduced and will mostly be targeted towards strengthening our leading hub positions. “We are determined to bolster our leading position in our industry both in service and sustainability towards customers and society. We continue to seek opportunities to reduce our environmental footprint and implement our sustainability roadmap towards our ambition to be climate-neutral by 2050.” Two new projects announced by Vopak illustrate that strategy in action. It is to add 64,000 m³ of new tankage at its Vlaardingen terminal in Rotterdam (opposite) to handle waste-based feedstocks – tallow and used cooking oil, for example – for biofuels, including biodiesel and bio-jet fuel. The 16 new tanks are due in service by the end of 2022. “The market for energy from renewable sources in Europe is rising, also as a result of the Renewable Energy Directive II of the EU,” Vopak notes, and Patrick van der Voort, Vopak’s division president, Europe & Africa, says: “This project fits well within Vopak’s ambition to support our customers and society by developing and investing in infrastructure solutions for facilitating more sustainable energies and feedstocks. We are looking forward to continuing to invest in the Port of Rotterdam.” The second new project is in China, where Vopak plans to add another jetty at its terminal in Qinzhou, exclusively for gas products, including propane, butane, ethylene and propylene. The project is scheduled for completion in the second half of 2022. AROUND THE WORLD Vopak’s Europe & Africa division delivered revenues of €532.9m in 2020, down 10 per cent on the 2019 figure following the sale of the terminals in Algeciras, Amsterdam and

 EELCO HOEKSTRA, VOPAK CEO (ABOVE), SAYS THE COMPANY FACED UNPRECEDENTED CHANGES IN SUPPLY AND DEMAND, WITH ITS CUSTOMERS RESPONDING WITH CHANGES TO THEIR PORTFOLIOS AND SUPPLY CHAINS

Hamburg. On the upside, average occupancy rose from 83 per cent in 2019 to 88 per cent, and revenues were boosted by improved demand for oil product storage as a result of the contango and by the use of storage capacity that had been converted to handle new bunker fuels ahead of the ‘IMO 2020’ rule. The Americas division posted revenues of €322.9m, up 3 per cent on 2019 despite adverse currency movements, with tank occupancy slightly up. The improvement reflects newly commissioned capacity in Mexico, Brazil and Panama and its Canadian oil product terminals benefitting from the contango, though this was offset slightly by lower chemicals throughput revenue in Houston. The Asia & Middle East division saw a 5 per cent drop in revenues to €289.3m, which included a substantial currency effect. Revenues were affected by lower chemical throughput and by a high level of maintenance outages in Singapore, again partly offset by higher revenues from oil terminals as a result of the contango and IMO

in chemical throughput in what Vopak describes as a “dynamic business environment”. Overall tank occupancy rose from 75 per cent in 2019 to 80 per cent. Looking ahead to the rest of 2021 and beyond, Vopak is expecting to allocate between €300m and €350m this year to growth investments, including existing projects, new business development and feasibility studies in the area of new energies, including hydrogen. While comparatively modest, these growth plans are expected to deliver around 1m m³ of new capacity over the next three years. In the immediate term, the new jointventure Vopak Moda Houston terminal is schedules to be commissioned in phases over the first three quarters of 2021 and will offer 46,000 m³ of storage capacity for chemical gases. The new Qinzhou industrial terminal in China is expected to be completed by the second quarter, along with expansions at the Botlek chemical terminal in Rotterdam, the Veracruz oil products terminal in Mexico and the Deer Park chemical terminal in Houston. Later in the year there are also projects due

2020-converted capacity. During the fourth quarter additional capacity was commissioned at the Merak (chemicals) and Jakarta (oil products) terminals in Indonesia. The China & North Asia division increased revenues by 8 per cent to €42.0m. Unlike the rest of the world, the region saw an increase

for completion in Australia (a major expansion of the Sydney oil products terminal), Mexico (40,000 m³ of new chemical tankage at Altamira) and Belgium, where the Linkeroever site in Antwerp is to get another 50,000 m³ of chemical tankage. www.vopak.com

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NEWS BULLETIN

STORAGE TERMINALS

TSA ON ESG

The UK Tank Storage Association (TSA) has formally launched its new Environmental, Social and Governance (ESG) charter, affirming the sector’s shared commitment to ESG principles. The charter has been developed in conjunction with member organisations and is accompanied by a framework designed to help its members develop clear and common policies. “TSA’s members play a vital role in the UK’s economy by providing the critical infrastructure necessary for the transportation of bulk liquids, creating jobs and fostering innovation,” says executive director Peter Davidson. “Through adherence to the Charter, our members affirm their shared commitment to environmental, social and governance principles. Our association continues leading from the front and this, together with our Safety Leadership Charter and Significant Indicators programme, demonstrates our commitment to strive for continuous improvement.” tankstorage.org.uk BLUEKNIGHT OUT OF CRUDE

Blueknight Energy Partners has agreed to sell its crude oil terminalling, pipeline and trucking businesses for $162m cash, repositioning the partnership as a pure-play

downstream terminalling company. The crude oil terminals, including some 6.6m bbl of capacity at the Cushing hub in Oklahoma, are to be acquired by Enbridge, subject to Hart-Scott-Rodino review, with the transaction expected to close by late February. “This announcement represents a significant milestone as we transition Blueknight away from traditional oil and gas operations into a pure-play, downstream terminalling business focused on infrastructure and transportation end markets,” says CEO Andrew Woodward. “We are excited about the financial flexibility to both materially improve our balance sheet and pursue future investment opportunities predicated on risk-adjusted returns while maintaining our long-term financial targets.” Blueknight is owned by affiliates of Ergon and concentrates on asphalt terminalling and logistics. www.bkep.com ZENITH ADDS THREE

Zenith Energy Terminals has acquired Bulk Terminal Storage (BTS) from Guttman Realty. BTS owns three storage in terminals in Ohio, Pennsylvania and West Virginia, acquisition of which will bolster Zenith’s terminal infrastructure in the Marcellus and Utica Shale basins.

“This acquisition further develops our existing network of terminals in key US markets and enables us to promote growth in alternative fuels, addressing two of Zenith’s strategic priorities,” says Jeff Armstrong, president/CEO of Zenith. “We are excited about expanding our relationship with Guttman Energy, one of our key customers. We look forward to implementing our approach to safety and environmental stewardship at our new terminals and leveraging the new storage capacity to support customers with renewable diesel, biofuel and ethanol storage needs. Further to that effort, we are thrilled to work with our new team members to provide the highest quality of service to our customers in the region.” Following the transaction, Guttman has entered into a multi-terminal agreement with Zenith to strengthen and expand its wholesale and commercial fuel distribution business across its mid-Atlantic and east coast marketing area. The 353,000-bbl (56,100-m3) Aurora terminal (below), located between Akron and Cleveland, Ohio, is supplied by a Buckeye pipeline and handles biodiesel, ethanol, gasoline and distillates for the local market in north-east Ohio and western Pennsylvania. The 157,000bbl (25,000-m3) Belle Vernon facility in Pennsylvania received distillates by barge on the Monongahela River, as does the smaller (53,000-bbl) Star City terminal near Morgantown, West Virginia. zenithterminals.com ALL CHANGE AT INTER

Inter Pipeline has announced annual funds from operations in 2020 of C$792m, down 9 per cent on the prior year, with the loss concentrated in its NGL processing and conventional oil pipeline businesses. In contrast, its oil sands transport and bulk liquids storage businesses both posted record levels of income. Inter Terminals, its bulk liquid storage division, generated annual funds from operations of C$129.2m, an increase of C$14.2m over 2019, despite the sale of the larger part of its network in mid-November.

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STORAGE TERMINALS 17

The long-term stock turnover contracts that have now been concluded testify to our confidence in a successful continuation of the cooperation.” Frédéric Platini, chairman of Euroports Group, adds: “With this new investment, Euroports will strengthen its strategic position in Rostock in Germany and further diversify its operations into the liquid bulk sector. We are fully committed to continue to operate following the highest standard of safety and quality required by this industry.” euroports.de RUBIS ENDS WELL

Inter Pipeline has now embarked on a comprehensive review of its strategic alternatives, following an unsolicited expression of interest from Brookfield Infrastructure Partners to acquire all the outstanding shares it does not already own. Inter Pipeline’s board does not regard Brookfield’s offer, which has not been formally made, as reflecting the intrinsic value of the company. The review will evaluate a broad range of options, including exploring a possible corporate transaction, while continuing to seek a partner for a material interest in the Heartland Petrochemical Complex. No timetable has been set and there is no indication that it will necessarily lead to any transaction. The Inter Terminals business in the UK, Ireland, Germany and the Netherlands, acquired by CLH this past November, has been renamed Exolum as from 12 February. Inter Terminals Ltd is now Exolum Terminals Ltd; Inter Terminals UK Ltd is Exolum Storage Ltd, while the individual terminals change “Inter Terminals” to “Exolum”. The Inter Terminals businesses in Sweden and Denmark, which were not acquired by CLH, will retain their name. Emails are changing this month to the @exolum.com domain. All other contact details will remain as they are. www.interpipeline.com clh.interterminals.com

Rostock (GOR) terminal (below) and the former Minol tank farm. The joint venture was founded in 1996 and Total Deutschland will continue to use storage capacity at the site for a further ten years. GOR offers some 700,000 m³ of tank capacity for mineral oils, vegetable oils and other liquids. It also operates Total’s Minol tank farm and storage tanks at PCK Raffinerie Schwedt and Dow Olefinverbund’s Böhlen site. “We would like to thank Euroports for the good cooperation over the past years,” says Christian Cabrol, managing director of Total Deutschland. “Our two companies are united by a high standard of safety, quality and performance. The sale is in line with the group’s strategy of actively managing its asset portfolio.

Rubis Terminal has reported a strong end to 2020, with storage revenues up 30 per cent year-on-year at €56.5m. Performance was strong in the ARA zone, where revenues rose by 14 per cent as a result of additional capacity and occupancy rates close to 100 per cent, and in Turkey, where the contango and increased transit demand from Iraq boosted revenues by 70 per cent. The French market was stable, with weak automotive fuel demand being partially offset by new bitumen activity. For the year as a whole, revenues rose 10 per cent to €186m. Rubis notes that, following its acquisition of Tepsa this past October, it has “significantly increased its exposure to chemical and biofuel storage” and that fuel sales now account for 50 per cent of overall sales, compared to 70 per cent in 2016. rubis.fr

CHANGING HANDS IN ROSTOCK

Euroports Terminals Rostock has agreed to acquire Total Deutschland’s 50 per cent stake in their jointly owned Grosstanklager-Ölhafen

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BEHIND THE CURTAIN RESULTS • ODFJELL REPORTED ITS BEST FIGURES FOR FOUR YEARS IN 2020 DESPITE THE PANDEMIC’S DISRUPTIONS, BUT THE FOURTH QUARTER HINTS AT TROUBLE TO COME

ODFJELL ACHIEVED REVENUES of $1.01bn in 2020, up 6 per cent on the 2019 figure, with EBITDA rising 34 per cent to $289.5m on the back of lower voyage, timecharter and operating costs. Net profit came in at $27.9m compared to a loss of $36.6m in 2019. All the improvement came from Odfjell’s chemical tanker operations, with its tank terminal division once more posting comparatively stable results. “Despite the pandemic, we have delivered stronger results and performed on important operational and safety measures,” says Odfjell CEO Kristian Mørch. “We have concluded the

largest fleet renewal programme in our history and taken important steps by further streamlining our terminal division.” While Odfjell performed well over the year as a whole, the fourth quarter showed some weaknesses that are expected to persist into 2021. Although chemical demand remained firm, the chemical tanker market was weak, with more offhire days and higher fuel costs also eating into profitability. A major factor has been weakness in the clean petroleum product (CPP) tanker sector, attracting swing tonnage back into easy chemicals, which is expected to continue to affect the spot market.

Odfjell is sticking to its decision not to renew contracts of affreightment (COAs) at unsustainable prices, though, and says it achieved an overall 3 per cent increase in COA rates in the fourth quarter. FLEET DEVELOPMENTS Odfjell has continued to build its fleet towards its target of 100 ships and during the fourth quarter established two new pools for coated chemical tankers. The MR pool will include six vessels from Navig8 Chemical Tankers, one from Transportation Recovery Fund (TRF) and six from Odfjell. The Handy pool will have six vessels from TRF. “The establishment of these pools adds further flexibility to our operational platform and adds economies of scale by adding incremental revenues with marginal added costs,” Odfjell states. Navig8’s six vessels arrived under Odfjell’s commercial management towards the end of the fourth quarter, while two TRF ships joined the fleet near the end of the year. The remaining five TRF tankers were due to join Odfjell by the end of the first quarter 2021. During the fourth quarter Odfjell also concluded its newbuilding programme with the delivery of the 38,000-dwt Bow Excellence, a stainless steel tanker. Some changes have been made to timechartered tonnage, adding some capacity and extending some existing deals. Three 25,700-dwt stainless steel newbuildings are due from Asakawa in 2022 and 2023 under timecharters but Odfjell now has no owned tonnage on order. In the market as a whole, the appetite for new contracting remains low. Owners are, not surprisingly, lacking confidence in demand until the Covid-19 pandemic eases, while they are also unsure about the choice of propulsion systems to meet future emissions restrictions. Those factors are also limiting access to capital in light of increased residual risk. The global chemical tanker orderbook now stands at 5.6 per cent of the existing fleet and, with expected retirements of older vessels, Odfjell is projecting annual fleet growth of just 1 per cent over the next three

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CHEMICAL TANKERS 19

years. It also forecasts annual tanker demand growth of 3 per cent over that period, pointing to strong fundamentals for the core chemical tanker market. MARKET OUTLOOK Odfjell notes that global chemical demand continued to recover during the fourth quarter. However, chemical tanker demand levelled off after the resurgence of Covid-19 lockdowns and the destocking of inventories built up earlier in the year. Odfjell also notes an increasing regional difference, with the western hemisphere being most affected by these developments, while Asian demand has escalated. China in particular has re-established its role as a motor for demand growth, reporting annualised GDP growth of 6.5 per cent in the fourth quarter. China accounts for 28 per cent of seaborne imports of liquid chemicals and now seems to be back on its pre-Covid growth trajectory, while also stimulating economic activity and chemical demand in the wider Asian region. Odfjell is optimistic that chemical demand in the western hemisphere will pick up as vaccine programmes are rolled out and lockdown measures eased, providing further stimuli to demand growth in the second half of the year. Downside risk for the chemical tanker sector comes primarily from the role of swing tonnage. The CPP markets are “challenging”, Odfjell says, with excess vessel supply as a result of weak crude tanker markets, ongoing inventory destocking and continuing weak demand for some products, notably jet fuel. However, the product tanker orderbook is also relatively small and, if there is post-Covid recovery this year, the market should tighten.

 NEW POOLS HAVE EXPANDED THE ODFJELL FLEET WITHOUT THE EXPENSE OF NEWBUILDINGS AND THE COMPANY IS POSITIONING ITSELF TO TAKE ADVANTAGE OF ANY POST-COVID RECOVERY IN THE MARKET

TERMINAL ACTIVITY Odfjell Terminals generated EBITDA of $6.6m in the fourth quarter, down from $7.8m in the prior period, and EBITDA of $30.0m for 2020 as a whole, up from $26.7m in 2019. Underlying demand for storage capacity remains strong, with average commercial occupancy of 97 per cent at the end of the year. Activity levels remained relatively stable, with the fourth quarter seeing 6 per cent fewer handlings but throughput 16 per cent higher than in the third quarter. Odfjell Terminals’ results were only slightly affected by a hydraulic oil fire in the Power

Goldberg’s indirect 24.5 per cent shareholding in Odfjell Terminals Korea for $19m, which is expected to have a positive effect on Odfjell’s results while also creating a simple and more efficient governance structure. Lindsay Goldberg is looking to complete its exit process by divesting its interest in the Tianjin terminal in China and Odfjell says it is also evaluating its position. Meanwhile, Odfjell Terminals Houston is closing in on a final investment decision on a 32,000-m³ expansion of specialty chemicals storage, due to come onstream in 2022. Further expansion plans are in place and may

Pack room at Odfjell Terminals Houston on 11 December; although the fire was quickly extinguished with no injuries or loss of containment, certain operational systems were damaged and regular operations had to be suspended until late January. In December, Odfjell acquired Lindsay

go ahead, contingent on long-term commitments from customers. In Antwerp, Noord Natie Odfjell has finalised plans for its next phase of expansion, which will add 35,000 m³ of storage capacity and is due to start operations in 2022. www.odfjell.com

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a strong ESG profile including favourable environmental credentials, sustainability benefits and a proven track record of safety, making it an ideal investment for AEIF2.”

ARCUS INFRASTRUCTURE PARTNERS has acquired a majority stake in leading tank container lessor Peacock Container Holding. The investment is the fifth deal for Arcus European Infrastructure Fund 2 (AEIF2), the newest fund in the Arcus portfolio. Arcus says it sees Peacock as a medium-sized and fast-growing company with a blue chip client base and operating in an attractive specialised market. “Arcus has been evaluating the ISO tank container leasing market and actively considering targets in this space for a number of years,” says Nicola Palmer, a partner at

prospects and strong infrastructure-like characteristics to be highly favourable. Peacock has a young, diversified fleet, a strong commercial and technical platform and an experienced management team. We look forward to working with Jesse [Vermeijden, Peacock CEO] and the team to deliver on our growth ambitions for Peacock.” Ian Harding, co-managing partner of Arcus and head of origination, adds: “Although tank container leasing is largely a new area of investment for infrastructure investors, long-term Arcus investors will recognise that this deal has similarities to

READY FOR THE NEXT STEP “We are very proud and excited to partner with Arcus for the next stage in Peacock’s evolution,” says Vermeijden. “I have personally seen our company grow from a small Benelux-focused lessor to what it is today, and I am extremely proud of our loyal and hard-working team for reaching this milestone. “Arcus’ experience with managing transportation assets and its appreciation for the heritage of our business makes it a strong fit for Peacock,” Vermeijden adds. “Just as importantly, we are fully aligned with Arcus’ forward-thinking, quality-focused strategy, sustainability principles, and ambition for growth in the market. I look forward to leveraging Arcus’ experience to develop new leasing opportunities for our customers and to further accelerating the growth of our business.” Peacock Container owns a fleet of more than 7,500 tank containers in a range of sizes, including both standard units and specialised tanks as well as bespoke designs. It operates primarily out of Singapore and Rotterdam and, via agents, in the US and the Middle East. In addition to traditional tank rental and leasing services, Peacock offers fleet management solutions, logistics support and supply chain optimisation. It also offers value-adding services, including tracking, tailored to its clients’ needs and preferences. Arcus Infrastructure Partners is an independent fund manager, focused on long-term investments in European infrastructure and operating on behalf of institutional investors. It targets mid-market, value-adding infrastructure opportunities,

Arcus and transation lead. “Specifically, we view the sector’s resilience, growth

Arcus’ previous rolling stock investments in Alpha Trains and Angel Trains. These businesses all operate with similar fundamentals, predictable cashflows from robust medium-term contracts and plenty of opportunity for both organic and targeted fleet expansion. In addition, Peacock has

particularly in the transport, energy and telecommunications sectors. As of 30 September 2020, it managed investments with an aggregate enterprise value in excess of €19bn. www.peacockcontainer.com www.arcusip.com

FUNDS FOR GROWTH ACQUISITION • THE VALUE INHERENT IN TANK CONTAINER LEASING IS BEING RECOGNISED BY INVESTORS. PEACOCK CONTAINER IS THE LATEST TO ATTRACT ATTENTION

 PEACOCK’S NEW INVESTOR HAS ARRIVED WITH AMBITIONS FOR GROWTH

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A YEAR TO REMEMBER

THE BERTSCHI GROUP has reported sales of some CFr 900m ($1.0bn) for 2020, some 9 per cent below its 2019 results, but only 5 per cent down when adjusted for exchange rate movements. Given the impact of the Covid-19 pandemic, Bertschi says that, thanks to the proactive measures it took, it was able to “end the year on positive note, both operationally and financially” and that, in light of the progress made with vaccinations and the growth being shown in Asian markets,

Group. “Thanks to government support measures and the ongoing vaccination of the population in the industrialised countries, the global economy should be boosted even further from the middle of 2021.” In light of that optimistic outlook, Bertschi is planning to make significant investments, both in China and in Europe, and has appointed Marc Houtermans as the managing director of the Solutions business unit to strengthen the group management team.

particularly evident in the automotive industry, where demand collapsed. This led to a reduction in demand for primary chemical products, resulting in a substantial decline in sales in Bertschi’s core business of chemical logistics. Demand picked up from the third quarter, driven by the end of the first lockdown and the rapid recovery seen in Asia. The primary concern for Bertschi was to ensure the safety of its employees. “Thanks to the advanced digitalisation of our work processes, which enabled home office for a large part of the workforce, and the early implementation of protective measures at the workplaces, we have been able to offer our employees a safe working environment at all times,” says Jan Arnet, Group CEO. Indeed, Covid-19 accelerated the existing process of digital transformation within the Bertschi Group, making business processes more efficient, secure and customer-friendly.

it is confident for 2021. “We are assuming that the positive trends seen in the last quarter of 2020 will continue this year. Asia, and China in particular, have largely overcome the pandemic and are currently showing impetus for growth,” says Hans-Jörg Bertschi, chairman of the Bertschi

LOOKING BACK The outbreak of the Covid-19 pandemic and its rapid spread across the globe had a significant effect on Bertschi’s financial results. Imposed lockdowns resulted in a drop in global demand for durable consumer goods. This was

The customer-facing element of Bertschi’s digital systems was expanded to provide end-to-end visibility over increasingly complex supply chains, often involving a combination of road, rail and sea movements. Elsewhere, Bertschi invested in its assets, adding 1,200 containers to bring its fleet up to

MARKET • NOT SURPRISINGLY, 2020 WAS A CHALLENGING YEAR FOR THE BERTSCHI GROUP BUT THE SWITZERLAND-BASED MULTIMODAL SPECIALIST REMAINS CONFIDENT FOR 2021

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a total of 37,800 units. In addition, in response to strong demand, capacity at the dangerous goods container storage facility at Bertschi’s Schwarzheide site in eastern Germany was doubled. GOING FOR GROWTH This year’s investment looks likely to be even heavier. Late in 2020 Bertschi began construction of a new logistics hub for dangerous liquid chemicals at Zhangjiagang, to serve the greater Shanghai area, which represents the largest single investment project in Bertschi’s history. It will consist of three warehouses for different classes of dangerous goods, offering a total capacity of 25,000 pallet spaces, built on a 67,000-m² plot. In addition, the new hub will feature a storage area with a capacity for 1,000 loaded tank containers, tank container heating stations and automated drum and intermediate bulk container (IBC) filling lines.

 THE NEW LOGISTICS HUB FOR CHEMICALS AT ZHANGJIAGANG (BELOW) REPRESENTS THE LARGEST EVER INVESTMENT BY BERTSCHI, ILLUSTRATING ITS CONFIDENCE IN THE MARKET

Bertschi is not forgetting its European roots. It plans to double the size of its transhipment terminal in Rotterdam, used to transfer loads from road to rail and to store dangerous goods containers, to offer a total of 2,000 storage spots as a “containerised tank farm”. It will also respond to increasing demand in the UK, increasing its existing warehouse in Middlesbrough for bulk and packaged plastics imported from overseas, extending the site’s footprint onto an adjacent property. Bertschi is also planning to switch more shipments from road to rail in the growing market for transport to south-east Europe. To this end, capacity will be increased at the Ploiesti rail terminal near Bucharest, acquired in 2019. Bertschi is also continuing to invest in its specialised container fleet in order to accommodate growth in the number of shipments. PEOPLE POWER Alongside the investment in assets, Bertschi has revamped its senior management. Marc Houtermans joined the company at the start of March, arriving from Quality Circular Polymers, a company he helped found with two partners in 2014 to recycle plastics

waste at a newly built plant in Geleen, the Netherlands, which has recently been sold. Before that, he held a number of management roles in the global chemicals industry. “We have known Marc for many years through his previous work on the customer side and have been impressed by his extensive expertise and range of skills,” says Arnet. “In his global role here, he will take charge of the development and expansion of our chemical logistics hubs around the world. We are delighted to welcome Marc to Bertschi and look forward to working with him in the future.” Houtermans takes the place of Christian Bart, who will move over to head up Bertchi’s Liquids business unit, the group’s largest. Having played a key role in the development of the Solutions business unit in recent years, he will soon take responsibility for the management of the entire global operational business. As part of Bertschi’s long-term succession plan, Bart will step into the shoes of Christoph Wälchli, who will work alongside Bart before taking over the management of the more than 30 Bertschi subsidiaries across Europe. Both Wälchli and Bart will remain part of the group management team. People are important to Bertschi and that is illustrated by the number of long-service anniversaries being celebrated in 2021. Six employees will be marking 30 years of service and André Gloor, a planning manager who has helped to develop and shape the rail transport of liquids to Italy, will celebrate 40 years with Bertschi. The Bertschi Group now has more than 3,000 employees working across 77 subsidiary businesses in 38 countries around the globe, with major centres in Shanghai, Singapore, Houston, Moscow, São Paulo, Dubai, Al Jubail and Istanbul. As well as its tank and dry bulk container fleet, it operates some 1,100 trucks and 30 container terminals, making it the market leader in European intermodal transport of chemicals. www.bertschi.com

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OILTANKING HAS REACHED agreement with Operail Finland Oy to move chemicals to the Oiltanking terminal in Kotka, Finland. The partnership covers rail transport on the Vianikkala to Kotka route and is expected to involve at least 1m tonnes of product per year. “With Oiltanking’s experience in providing safe, efficient and reliable services in the field of tank storage logistics and Operail’s track record in offering customised and flexible transport services to its clients, we look forward to building a successful long-term

manager at Oiltanking Finland Oy. “Over the past months, both teams have worked intensely to ensure a smooth transition of rail transport services to our new partner Operail without any disruption with our customers. “A lot of effort went into paving the way for the cooperation between Operail and Oiltanking, including integrating our data communications and organising full-day safety trainings. Now it feels like we recruited our own employees,” Porkka adds. Due to their proximity to the border,

START OF A JOURNEY “We are very pleased to be part of this exciting cooperation and to pursue our shared goal of growth,” says Tero Kähkönen, operations manager at Oiltanking Finland. “Both companies have placed great emphasis on ensuring that the highest safety and environmental standards for the transport of fuels and chemicals are met, and safety trainings and audits are regularly conducted.” Operail Finland, a subsidiary of the international transport and logistics company Operail, started operations this past November, and sees this major contract as a significant milestone in its development. “We are moving forward with giant leaps in Finland and executing our strategy as planned. We are grateful to Oiltanking Finland for the trust they have placed in us, and we will do our best to meet their expectations,” says Paul Lukka, chairman of the board of directors of Operail Finland and a member of Operail Group’s management board. Ilkka Seppänen, managing director of Operail Finland, notes that, since November, the company has already doubled its headcount. “As we expand our operations, we need to make sure we have the necessary workforce. We have managed to rapidly fill all our vacancies,” he says, adding that the company can offer a more customised and flexible service to its clients, enabling them to improve productivity, which Operail says is a “new phenomenon” in the local market. “We would like to thank Oiltanking Finland’s experts for their faith and cooperation in developing new operating models with us,” Seppänen adds. Estonia-based Operail AS is an international railway logistics business,

partnership,” says Merja Porkka, terminal

Oiltanking Finland’s terminal in Kotka and the facilities in Hamina are considered as a gateway to and from Russia. They mainly serve as an important hub for Russian chemical flows; various products enter via rail, are stored in heatable and insulated tanks and forwarded via truck or vessels.

founded nearly 150 years ago, involved in freight transport, rolling stock rental and construction and maintenance on the 1,520-mm gauge network from the Baltics to the Sea of Japan. www.oiltanking.com www.operail.com

SMOOTH FINNISH RAIL • OILTANKING AND OPERAIL HAVE SET UP A NEW PARTNERSHIP IN FINLAND, PROMISING SAFE, RELIABLE AND EFFICIENT TRANSPORT OF CHEMICALS

 OPERAIL WILL USE ITS RAIL EXPERTISE TO IMPROVE CHEMICAL PRODUCT FLOWS TO THE OILTANKING TERMINAL IN KOTKA

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depending on the product being washed, ensuring only the necessary amount of water and time is used to fully clean a tank.

ROAD TANKER AND tank container operator Suttons has announced a £0.5m investment at its Widnes depot wash bay, bringing sustainable, reliable and safety-focused improvements to its own operations and third-party business. The project, the result of more than four years of planning and identifying areas that could be improved, will deliver significant upgrades to many of the wash bay’s core systems, futureproofing it for many years to come. The work will include the replacement of

sets and high-pressure pumps, alongside a new effluent plant complete with dual dissolved air flotation (DAF) units. The work will significantly reduce Suttons’ carbon footprint and water usage, and the electricity usage of the wash bay will be significantly reduced, while also becoming more reliable, and time- and cost-efficient. The existing 48-bar pressure pump system will be replaced with a 100-bar variable system, which Suttons believes will be one of the first of its kind to be

SUSTAINABLE WATER The upgrades to the effluent plant will dramatically improve the sustainability of the wash bay. This will allow Suttons to remove more grease and oil from water than ever before, which in turn allows more water to be treated for future use and reduces the volume of waste water. The wash bay will adhere to effluent tests from United Utilities and remain ahead of the curve for environmental standards for many years, Suttons says. These improvements to the effluent plant will allow the wash bay to tackle a wider range of products than previously possible and the improved automated effluent system will reduce the downtime and hours spent completing maintenance cycles, ultimately driving uptime and increased volume capability. The loaded tank heat bay will also receive a much-needed upgrade. The supply steam pipework will be completely renewed, insulated and clad to minimise thermal loss. The addition of a bespoke condensate return system will provide a significant energy saving and CO² reduction, Suttons says. The hot water heating system will be expanded to supply ten bays. Steampowered heat exchangers will be installed to deliver highly accurate hot water on demand. Each heat bay will also be installed with remote temperature monitoring. The software platform will provide customers with access to real-time telemetry data, secure cloud-based historical data and the ability to receive pre-defined alerts via email. Suttons says it is not aware of any other UK cleaning depot providing this level of insight or high-quality data.

all electrical control systems and all pump

installed in a UK wash bay. This will allow it to save water and time when operating, while also providing a higher quality wash and a significant reduction in confined space entry. The new control systems will also allow for bespoke wash cycles to be created

This overall investment reflects Suttons Group’s commitment to the reliability, safety and efficiency of its operations, as well as its ever-increasing focus on reducing its carbon footprint and impact on the local and wider environment. www.suttonsgroup.com

TAKE A BATH TANK CLEANING • SUTTONS IS PLANNING A MAJOR UPGRADE OF THE WASH BAY FACILITY AT ITS WIDNES DEPOT, THE RESULT OF A LENGTHY PLANNING PROCESS

 THE SUTTONS DEPOT IN NORTH-WEST ENGLAND IS SET TO GET A BETTER WASH BAY

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IN THE RANGE TELEMATICS • MANY LIQUID PRODUCTS CARRIED IN TANK CONTAINERS ARE SENSITIVE TO TEMPERATURE CHANGES. SAVVY TELEMATIC’S LATEST INNOVATION AIMS TO KEEP THEM IN THE RIGHT RANGE SENSORS INSTALLED ON the outside of tank containers have been used for many years to track the temperature of the cargo inside and, when linked to telematics units, can send that information back to the tank operator and cargo owner. However, a sensor on the outside of the tank cannot obtain exact temperature measurements due to transmission losses; when a cargo is very sensitive to changes even a few degrees can make a big difference. Germany-based tank transport company Rinnen needed to solve that problem and turned to Savvy Telematic Systems of Switzerland to come up with an answer. The solution Savvy found is being rolled out in Rinnen’s tank container fleet. “We have developed a device that measures the temperature inside the tank,” explains Bernhard Weiland, key account manager at Savvy. “A replaceable thermowell with a PT

1000 sensor is inserted into the tank from the top. The sensor is only separated from the liquid by the tube fitting, thereby providing exact measurements.” The sensor is also connected to the Savvy Sense Gateway-ExR, an ATEX-certified telematics unit installed on the top of the container. This unit communicates by radio with the CargoTrac base unit, which sends data to Savvy’s Synergy Enterprise Portal, a web-based platform that provides constant visibility for Rinnen of a range of variables such as location, temperature, pressure and liquid fill level. KEEP THE CUSTOMER HAPPY The Savvy system provides a seamless track-and-trace solution, making it possible for Rinnen to keep the consignee updated with an accurate estimated time of arrival (ETA) for each individual load, all along the

transport chain and not just in its own vehicles, something that was missing in the system Rinnen was using before. “We were able to provide a realistic ETA for the initial and final legs by truck but not during the main leg via rail, inland waterway or sea,” explains Oliver Brucks, head of vehicle fleet management at Rinnen. “Savvy has enabled us to close this gap. Every 15 minutes, the CargoTrac units on the tank containers send out their GPS position to the Synergy Portal, which then calculates the current ETA. This way we can provide our customers with current data when they need to plan their delivery, regardless of whether the containers are located on our trucks or are being shipped with one of our freight partners.” Savvy and Rinnen are now working on a joint pilot to determine fill levels more reliably. Currently, that data is derived from loading and discharge information but can overlook other, potentially dangerous, changes. In order to improve safety and reliability, Rinnen wants to use the data derived from the Savvy sensors to take all factors into account and generate a reliable value. If that value deviates from target values, the software will send an alarm to allow the driver and fleet manager to respond immediately and can also send an email to other designated persons. “Our customers need a comprehensive and precise overview of the status of their shipments at all times,” says Brucks. “We can now meet these expectations even better. Both with regard to temperature as well as ETA we have been able to significantly improve precision and data accessibility thanks to Savvy. “The customers that already use the portal are delighted,” Oliver Brucks adds. “They not only have the benefit of increased transport safety but also improved tracking and tracing. If customs clearance takes longer than usual and delivery is delayed, they know that immediately and can adjust their production plans accordingly.” www.savvy-telematics.com

 SAVVY’S NEW TEMPERATURE SENSOR GETS RIGHT INTO THE TANK FOR GREATER ACCURACY

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the Safety and Quality Assessment for Sustainability (SQAS) scheme, managed by the European Chemical Industry Council (Cefic).

WITH SALES OF €75bn in 2019, France’s chemical industry is second only to Germany’s in Europe; it is also the fourth largest industrial sector, in terms of domestic R&D expenditure, and has achieved annual growth averaging 2.1 per cent over the past decade. It was natural, therefore, for Dachser to set up a unit in the country in 2010, which itself has made great strides over that period. “As one of the strongest export industries, France’s chemical industry benefits from the increasing connectivity of Europe’s groupage transports,” explains Michael Kriegel, department head, Dachser Chem-Logistics.

export shipments from France to Germany, and tonnage has more than doubled in the same period.” Now recording revenues of more than €70m a year, Dachser’s French operation has certainly found a welcoming market, taking advantage of the company’s network standards and global dangerous goods expertise. “Logistics networks with expertise in chemicals have become a major asset — especially in France, which has various chemical industry hubs spread throughout the country, in particular around Lyon and

ALONG THE BORDERLINE “The highly developed chemical logistics infrastructure along the Franco-German border is also very important,” Guillard continues. He points out that this applies to the traditional chemical industry production hubs along the Rhine as well as to Dachser’s new hazardous materials warehouse in Malsch near Karlsruhe, Germany. Opened in 2019, this state-of-the-art facility provides up to three levels of storage for intermediate bulk containers (IBCs) and augments Dachser’s network of specially equipped warehouses in south-west Germany. The scope of services for chemical customers includes distribution as well as procurement logistics and customer-specific solutions as part of contract logistics. The rise of Dachser Chem-Logistics in France is just one example of the group’s strong growth in the chemical logistics sector which, it says, all hinges on having the expertise to manage the sector’s special tasks. “In particular, this calls for highly qualified employees with the latest expert knowledge, especially when it comes to dangerous goods, as well as the ability to anticipate changes and respond to them flexibly,” Kriegel says. “It is essential that we provide employees with training opportunities to keep the process and product knowledge at each location ‘à jour’.” Dachser Chem-Logistics has also been able to apply its valuable network and dangerous goods expertise during the Coronavirus pandemic. This applies especially to the challenges that arise when different countries ramp up and curtail their economic activities

“Over the past ten years, we’ve almost quadrupled the annual number of chemical

Marseille,” says Bruno Guillard, corporate business development manager, France and Maghreb, at Dachser Chem-Logistics. “International chemical groups active in France are also looking for logistics providers with SQAS certification.” Dachser has had two of its French locations audited under

in different ways and at different times. If supply chains have to be reconfigured, chemical companies need to depend on an efficient and flexible logistics network, something that Dachser Chem-Logistics is well prepared to provide. www.dachser.com

VIVE LA CHIMIE! FRANCE • DACHSER CHEM-LOGISTICS HAS JUST CELEBRATED TEN YEARS IN FRANCE, SERVING THE LOGISTICS NEEDS OF EUROPE’S SECOND LARGEST CHEMICAL INDUSTRY

 BRUNO GUILLARD (LEFT) AND MICHAEL KRIEGEL DESERVE TO BE HAPPY WITH THE PROGRESS DACHSER HAS MADE IN FRANCE OVER THE PAST DECADE

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customers, partners and the public, but unfortunately the inauguration has to be canceled due to the coronavirus.” Chempark Dormagen’s manager Lars Friedrich emphasises the importance of the container terminal for the location: “We are delighted with the investment from Chemion, because it creates an infrastructure for the entire Chempark Dormagen and supports its healthy growth. The manufacturing companies in the plant continuously invest in their operations and need well-developed, efficient logistics for this.”

AFTER MORE THAN a year of work on approvals and some 18 months of construction, a second container storage area has been commissioned by Chemion at the Chempark Dormagen site, located close to the Rhine south of Düsseldorf, Germany. The €10m investment project is designed to meet the needs of the local chemical manufacturing sector, which is increasing its use of tank containers for both transport and storage, and reducing the use of drums. The new site, dubbed ‘Container Terminal Dormagen II’ or ‘CT DOR II’ for short, covers

some 15,000 m² and has space for around 1,000 freight and tank containers. The project began in the summer of 2018 with the submission of approval documents. Construction began in September 2019 and, after around a year of construction and subsequent trial operations, the new container terminal has now started regular operation. “Together with our partners, we have worked towards this moment in a targeted manner - the ‘Dormagen II container terminal’ is starting regular operations,” says Chemion’s managing director, Dr Hans

SAFE AND SUSTAINABLE “Safety is an essential core of our company’s mission statement,” says Günther Schoofs, the project manager. “With our partner Köster GmbH, we have implemented safety and quality standards that are far above the legally required requirements.” The new container terminal, for example, has extensive collection and retention capacities as well as a highly efficient fire alarm and extinguishing system. In addition, there is comprehensive monitoring by measuring sensors across the terminal. With the commissioning of the new system, two Chemion container terminals are now available in Chempark Dormagen to safely store raw materials as well as intermediate and end products for the logistics service provider’s customers. It is designed to act as an internal hub for the Chempark, reducing the use of intermediate storage in external facilities and so leading to a reduction in local road traffic. Chemion Logistik was founded in 2001 out of parts of Bayer Group’s central



Richter, who took on the role in late 2019, after the work had started. “This is an important milestone for us and our customers, the manufacturing companies on site, and an important investment in the future. We would have liked to have celebrated the commissioning with our

logistics division and other logistics facilities. Its first container terminal at Chempark Dormagen was inaugurated in 2007, offering space for 360 freight and tank containers on a 7,000-m² bimodal plot. www.chemion.de

STACK THEM UP TERMINAL • CHEMION HAS BROUGHT ADDITIONAL TANK CONTAINER STORAGE SPACE INTO SERVICE AT THE CHEMPARK DORMAGEN SITE

CT DOR II OFFERS STORAGE FOR 1,000 CONTAINERS WITH SAFETY AND ENVIRONMENTAL PROTECTION STANDARDS FAR ABOVE LEGAL REQUIREMENTS

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TANKS & LOGISTICS

TI-TANKS FROM HOYER

Hoyer has developed an innovative titanium tank container (below), to handle highly corrosive dangerous goods for a major chemical industry customer. The new tank design is the result of two years of intensive development work and construction, involving Hoyer, its customer and tank builder Van Hool. Two new titanium tank containers have already entered service, dedicated to the transport of molten monochloracetic acid. Hans Demarest, engineering director of Hoyer, explains: “Corrosive dangerous goods are among the most challenging products from the logistics point of view. Managing the supply chain on the manufacturer’s side, maintaining optimum transport conditions and delivery to the end customers on the haulier’s side require special know-how and experience.” A major challenge for the project team was the attachment of the stainless steel frame to the titanium tank, as the two materials cannot be bonded. With that challenge overcome, the next issue was keeping the cargo at the correct

elevated temperature. A specially designed heating system, with Ex approval, was developed. And, as with all of Hoyer’s new tanks, the titanium units are equipped with Smart Technology. Hoyer is in fact no stranger to using titanium in its tank containers, noting that another positive aspect of the material is its durability. Three titanium tanks joined the Hoyer fleet 30 years ago and are still in use today, with the company saying that this long life also justifies the higher building cost. www.hoyer-group.com LAG TRAILERS FOR B&F

LAG has delivered 50 semi-trailers to German road tanker operator Benninger & Föll. The order included 24 stainless steel tank trailers and 26 tank container chassis, all for the transport of ADR and liquid food products. The order was partly for replacement purposes but also expands the company’s fleet. “As a sustainable entrepreneur, Benninger & Föll strives to have a young and modern fleet

to reduce the environmental impact of its transport activities,” says LAG. The new vehicles help meet those targets, with a low tare weight and flexibility in operation. The tankers are fitted with both hydraulic and electric unloading pumps and a double foldable handrail connected to drive-away protection. lag.eu HARD YEAR FOR HUPAC

Hupac Group moved 1.01m road consignments by rail last year, representing 1.91m TEU, a 0.9 per cent decline on the 2019 figure. The drop reflected lower demand due to Covid-19 lockdown restrictions and a fall in maritime traffic into Europe during the first half of the year, although these conditions eased in the second half. “Given the extraordinary circumstances, we are satisfied with the traffic volume achieved,” says Michail Stahlhut, CEO of the Hupac Group. “However, we had set significantly more ambitious goals.” Public financial aid to overcome the coronavirus crisis is moderate. Hupac is therefore relying on additional measures to control costs and increase productivity. “We are aiming for the maximum possible train length – operationally and in terms of planning. Expanding the network to a standard train length of 740 m is our top priority – the sooner the better,” Stahlhut adds. This year has started well, especially as Hupac can now move large-volume 4-metre semi-trailers on its entire transalpine network. “We expect strong demand in this segment,” Stahlhut says. “With our transport offer, we are making a concrete contribution to Switzerland’s modal shift policy and to the implementation of the European Green Deal strategy.” www.hupac.ch VAN MOER PLANS FOR GROWTH

Van Moer Logistics is to expand its tank container depot in Zwijndrecht, Belgium this

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year, along with an update to its tank repair and cleaning facilities. In addition, it plans to install solar panels on two warehouses “and continue to make our fleet more sustainable,” says founder/CEO Jan van Moer. Funds for the work will come from an investment in its recently spun off real estate business, an interest in which has been acquired by Van Wellen Storage under a sale-and-rent-back arrangement. Van Moer Logistics last year reached its 30th anniversary and, despite the Covid-19 crisis, handled a total of 600,000 TEU, equivalent to some 5 per cent of the container throughput in the port of Antwerp. More than half of that volume was moved on Van Moer’s barges. vanmoer.com

“The cooperation will bring together the core competencies of SF Holding and Kerry Logistics Network across multiple verticals to create a leading Asia-based global logistics platform to meet ever-changing demands,” KLN says. “Under the strategic cooperation, Kerry Logistics Network will be positioned as SF Holding’s platform for international business. SF Holding and KLN will also collaborate with each other in Greater China to better align their respective businesses.” Subsequent to the completion of the transaction, KLN will remain listed on the Hong Kong Stock Exchange and will continue to operate under the ‘Kerry’ name. www.kerrylogistics.com

refinery in Köln. “The deployment of these cleaner Volvo FH LNG trucks marks the long-standing partnership between Den Hartogh and Shell and their mutual goal to shape a better and more sustainable future,” Den Hartogh says. Shell’s intention is to help LNG reach an impactful scale in the heavy-duty road transport sector and thus contribute to lower emissions of CO2 and air pollutants despite the continuing increase in road freight transport. Den Hartogh is specialised in transporting LNG and other liquefied gases for its customers and now also using LNG powered trucks. www.denhartogh.com

KERRY TAKES THE MONEY

NEW AT DEN HARTOGH

Tanbouw Rootselaar has moved back into the tank trailer market following the acquisition in early January of Hobur Twente. Tankbouw Rootselaar formerly manufactured pressurised tank trailers for propane and CO2 service but exited the market to concentrate on pressure vessels and gas systems for static applications. The acquisition provides an established orderbook for 58,000-litre units in France and the UK as well as access to expertise in the use of super-lean duplex materials. Typical three-axle configurations are available with a capacity of up to 67,500 litres and a payload of 29.9 tonnes for use in the Netherlands. therootselaargroup.com

Kerry Logistics Network (KLN) has accepted an offer from SF Holding to take a 51.5 per cent stake in the company at a price of HK$ 18.80 per share, equivalent to an investment of HK$ 17.5bn (US$ 2.25bn). As part of the transaction, KLN will sell its warehouse assets in Hong Kong to a wholly owned subsidiary of Kerry Holdings Ltd and its business in Taiwan, including its interest in the stock-listed Kerry TJ Logistics Co, to another wholly owned subsidiary of Kerry Holdings Ltd. KLN says the moves will help it operate under an asset-lighter model, comparable with those of its international industry peers.

Den Hartogh has taken delivery of 29 new swap body tank containers, the first batch of an order of 225 units ordered from Singamas. The 35,000-litre baffled tanks are fully ground-operated and equipped with an IMT temperature sensor for remote connectivity. The new units arrived at Den Hartogh’s Logistics Service Centre in Antwerp at the end of January. Den Hartogh has also put four new LNG-powered trucks into service under a long-term logistics contract with Shell Deutschland Oil, transporting dimethyl ether on a dedicated route from Shell’s Rheinland

ROOTSELAAR BACK IN TANKS

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CHANGE THE CHANNEL POLITICS • STABLE TRADE PREFERENCE PROGRAMMES ARE CRITICAL TO US ECONOMIC RECOVERY UNDER THE NEW ADMINISTRATION, SAYS ERIC R BYER, NACD’S PRESIDENT/CEO

distributors account for nearly $20bn in total economic output and provide more than 80,000 jobs. But that engine – and many other industries that depend on competitive trade policies – could be at risk of stalling. “With the expiration of two critical trade programmes and the expected shifts in policies with the new administration, NACD is sounding the alarm on behalf of our members and advocating for programmes that support the industry, not stymie it,” Byer insists.

“IT’S A NEW year, and we have a new administration. But unfortunately, many of the same international trade issues from recent years remain unresolved,” says Eric R Byer, president and CEO of the National Association of Chemical Distributors (NACD). Speaking in the immediate aftermath of the change of president and in an uncertain economic environment, he has some advice and a lengthy wishlist. “Understandably, much of this stalemate

programmes to provide essential products and support local businesses. “Designated by the US Department of Homeland Security (DHS) as an essential infrastructure and workforce, chemical distribution plays a vital role in providing critical chemical inputs for the energy sector, water treatment, food supply, pharmaceuticals and much more. But chemical distributors’ ability to ensure that these products are moving within the supply chain efficiently, and at

PROGRAMMES IN REVIEW The Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB) programmes were designed to provide duty-free tariff treatment to certain products for an established amount of time. “These preference programmes may not be exclusively focused on the chemical distribution industry but both reduce costs for importers which, by extension, support good-paying jobs for our members. Unfortunately, federal authorization

can be attributed to Congress’ primary focus on providing Americans with Covid-19 relief as the pandemic continues to ravage communities and stifle economic recovery. However, it cannot be overstated how much the entire American supply chain, including the chemical distribution industry, rely on effective trade

a competitive cost, depends on sound and stable trade policies. “Chemical distribution may not be the first thing that comes to mind when thinking about America’s essential infrastructure or the economy, but the industry is a significant economic engine for our country. Chemical

for both MTB and GSP expired December 31, 2020, which means importers must now pay tariffs on goods that previously carried no tariffs or tariffs that were greatly reduced. “While we are hopeful that the Biden administration will take a strong stance on the need to expedite renewal, the

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Congressional debate over both programs continues to delay progress,” Byer adds. When GSP last expired in 2017, it took Congress several months to renew the programme. During that lapse, imports from GSP-eligible countries were subject to duties and many companies were forced to cut wages and lay off workers to offset the increased costs. When the programme was finally renewed, Congress extended it retroactively from the original expiration date so that importers were refunded for duties incurred. NACD continues to stress the importance of Congress swiftly acting to reauthorise GSP and MTB, whether that entails short-term clean extensions to ensure their continuity or more comprehensive reauthorisations. Ultimately, the impact that GSP and MTB expirations have on chemical importers is a real-world, time-sensitive issue that Congress must prioritise. REAL-WORLD IMPACT To illustrate how critical trade preference programmes are to the US economy, Byer offers an anecdote, based on real-world challenges NACD members are facing every day while Congress fails to renew GSP and MTB. Fisher-Allan Chemical Company, a small chemical distributor with 26 employees located in Kansas, imports several chemicals from different countries across the world. Using the GSP program, Fisher-Allan imports citric acid from Thailand, which it then sells into the food manufacturing and cleaning industries. The company and its US customers benefit because of the lower cost and the developing Thai chemical industry can take advantage of the lower tariffs, which make their product more competitive. Similarly, Fisher-Allan also uses the MTB programme to import germanium dioxide at a lower tariff rate, which is then sold into the US semiconductor market. Since the expiration

 THOSE INVOLVED IN INTERNATIONAL CHEMICAL TRADE NEED CERTAINTY AND STABILITY IN TRADE AND TARIFF MEASURES IF THEY ARE TO ABLE TO PLAN EFFECTIVELY AND OPERATE PROFITABLY, NACD STRESSES

of MTB, the additional tariffs now make their current supplier cost prohibitive. This year, Fisher-Allan was also considering hiring two new positions but without GSP and MTB, the company was forced to put into place a hiring freeze Although Fisher-Allan Chemical Company is not a real company, the expiration of GSP and MTB have these same impacts on real-world chemical importers and distributors across the country. PROSPECT FOR RENEWAL Historically, it is not uncommon for the GSP programme to expire prior to Congress reauthorising it. Of the 14 times Congress has reauthorised GSP since it was first scheduled to expire in 1985, Congress has only managed to keep the programme from lapsing four times. “And while there is precedent for Congress granting retroactive relief in these situations before, we are currently in a global health crisis and local businesses count on this program to support good-paying jobs with health care benefits in their communities. These jobs are critical to ensuring that American families remain healthy and are able to make ends meet,” Byer stresses. “On Capitol Hill, GSP and MTB are considered to be relatively non-controversial trade programs with overwhelming bipartisan support. However, as we saw last year, that does not necessarily mean there will be a smooth path to reauthorization. “With Democrats now in control of the House, the Senate, and the White House, it is unlikely either program will be reauthorized until more debate is had regarding GSP’s eligibility criteria. While the continuation of the GSP program has tremendous support from both parties, there is a debate in Congress about whether to reauthorize the program “as is” or revise the GSP eligibility criteria to include environmental and labor conditions as congressional Democrats are encouraging,”

support President Biden’s promise to shore up US manufacturing and innovation. “NACD will continue to work tirelessly to ensure that the importance of these programs remains in the forefront for Congress and the new administration,” Byer promises. “As we grapple with life during and after the pandemic, our leaders must prioritize hard-working Americans and pathways to a strong economic recovery. An important pillar to American commerce, trade preference programs like GSP and MTB strengthen our ability to stimulate economies and will help push recovery forward.” NACD’s membership comprises more than 400 chemical distribution companies and their supply chain partners, representing more than 85 per cent of US chemical distribution capacity and generating more than 90 per cent of the sector’s gross revenue. NACD members, operating in nearly every US state through approximately 3,400 facilities, are responsible for more than 26,000 direct jobs in the US. Collectively, the industry as a whole is responsible for almost 137,000 direct and indirect jobs. Chemical distributors in the US are predominantly small regional businesses, many of which are family-owned and multi-generational – on average having 30 employees and operating under extremely low margins. www.nacd.com

Byer adds. “Additionally, MTB, whose jurisdiction falls under the Senate Finance and House Ways and Means committees, will meet a similar fate as Congress has effectively tied MTB reauthorization to GSP.” This is unfortunate because renewing both programmes provides a great opportunity to

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WITH THE PROGRAMME RESULTS • NOT SURPRISINGLY, UNIVAR HAS POSTED WEAKER RESULTS FOR 2020, BUT IT IS PROGRESSING WITH ITS STRATEGIC PLAN TO IMPROVE PRODUCTIVITY AND REDUCE COSTS UNIVAR SOLUTIONS HAS recorded net income of $52.9m for the calendar year 2020, compared to a loss of $100.2m in 2019. Adjusted net income, which gives a better comparison, shows a fall of 8.5 per cent to $211.9m for 2020, while adjusted EBITDA was 9.7 per cent lower at $635.8m. “I am pleased with the progress the team has made against our strategic objectives, meeting the challenges of remote working, variable supply and demand, as well as macroeconomic uncertainties,” says president/ CEO David Jukes. “Our financial results reflect the hard work of our dedicated team members,

relationships, and the benefit of our investment in keeping digital at our core. I am pleased we have made good progress against our Streamline 2022 (S22) goals by executing on non-core divestitures, expanding our supplier network, and moving closer to completing our business systems migration and Nexeo integration.” For the fourth quarter, external sales were 5.5 per cent below the year earlier figure at $2.04bn, while gross profit was down 7.2 per cent at $484.5m and adjusted EBITDA fell 7.8 per cent at $146.4m. That decline was most apparent in Univar’s largest market in

the strength of our supplier and customer

the US, though sales were also off in the Latin America segment. Part of that reflects the former divestiture of the Environmental Sciences business, along with price deflation affecting certain products and ongoing demand weakness in the global industrial end markets.

 UNIVAR SOLUTIONS HELD ITS OWN DURING 2020 AS IT CONTINUES TO PREPARE ITSELF FOR A MORE AGILE FUTURE

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AROUND THE WORLD Adjusted EBITDA in the USA division fell 11 per cent in the fourth quarter, along with the decline in sales, although this was partially offset by synergies arising from the Nexeo Solutions acquisition, cost reduction efforts and higher demand in certain end markets. The Canada division was also affected by the Environmental Sciences divestiture, as well as overall lower energy demand and price deflation, although it enjoyed higher sales from the wholesale agriculture and industrial chemicals sectors. The Europe, Middle East and Africa (EMEA) division increased external sales by 2.1 per cent in the fourth quarter, though it was 3.0 per cent down on a constant currency basis; adjusted EBITDA fell 5.5 per cent to $29.4m, largely due to falling sales of pharmaceutical finished goods, as had been expected, together with lower industrial end market demand, though Univar reports some benefit arising from the Brexit process. STRATEGY FOR RECOVERY In response to the ongoing uncertain economic environment, Univar says it continues to actively manage its expense base and realise cost reductions in an effort to maintain its financial strength while continuing to serve its suppliers and

CHEMICAL DISTRIBUTION 35

customers’ needs. During 2020, these savings represented in aggregate in excess of $20m in cost reductions on a year-overyear basis, which are incremental to the net synergies realised from the Nexeo acquisition of $46m. Univar says it continues to expect to achieve the targeted $120m in annual Nexeo net synergies by early 2022. Univar also reports that it made significant progress during the fourth quarter in rolling out its S22 programme, which is designed to improve operational agility, drive faster sales growth, particularly in North America, maximise net free cash flow conversion, reduce leverage and improve EBITDA margins by 9 per cent by the end of 2022. Those moves have included the appointment of a new president for the North American chemical distribution business in the shape of James B Holcomb,

an exit from the Canadian wholesale agricultural distribution business and the sale of its Canadian agriculture services business. Univar has also reached agreement to sell its Distrupol business, while also acquiring a business from Zhuhai Tech Chem Silicone Industry Corp. WHERE TO NEXT “Looking to 2021, although the exact timing of the economic recovery is uncertain, our expected full-year adjusted EBITDA guidance range of $630m to $650m reflects underlying performance in our ongoing businesses above expected general industrial growth levels in each of our regions to offset the expected softer essential end markets performance,” Jukes says. “Univar Solutions is very well positioned in our markets to serve our supplier and customer needs and we

expect to execute on new opportunities and grow shareholder value.” In the nearer term, Univar is projecting adjusted EBITDA between $150m and $160m in the first quarter, below the $161.6m recorded for the first quarter of 2020. “Our forecast versus prior year reflects the effects of divestitures and a more normalised level of essential end market product margins,” the company says. One promising aspect of Univar’s balance sheet is its level of liquidity, which at the end of 2020 stood at $855.0m, including $386.6m cash-on-hand and available lines of credit; with the ongoing cost reduction programme, it expects this figure to be in the range of $800m to $900m by the end of 2021, with leverage below 3x. Univar also notes it has no significant debt maturities until 2024. www.univarsolutions.com

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CHEMICAL DISTRIBUTION

well-established group but still retain a lot of responsibility locally.” www.krahn.eu BM ADDS AFRICAN DEALS

BIG NORDIC DEAL FOR KRAHN

Krahn Chemie has acquired majority stakes in six companies from Jollis AB & Partners. The companies involved include AmphoChem, a leading Nordic distributor of industrial chemicals, additives and specialty chemicals; and Pemco Additives, another leading Nordic distributor active in the fuels, lubricants and petrochemical industries. Both are headquartered in Gothenburg and represent renowned international suppliers in Sweden, Norway, Denmark, Finland, Iceland, Estonia, Latvia and Lithuania. Krahn has also acquired 100 per cent of Petrico Ltd, based in Sandbach, UK and in which Pemco formerly had a majority stake; Petrico is a distributor of petroleum and chemical products for the lubricants and additives sectors. Krahn Chemie has also invested in Gothenburg-based BGM Logistics, a provider of logistics solutions for warehousing, thirdparty logistics and distribution in Sweden, and Temper Technology, which produces sustainable and energy-efficient heat transfer fluids and antifreeze products. The deal also includes Pemco-Trigueros Additives, which distributes

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additives and base oils for use in fuels and industrial and automotive formulations in Spain. To accommodate the newly acquired activities, Krahn has formed a new company, Krahn Nordics AB, which will be managed by Chatarina Schneider, former managing director of the acquired companies. “The values of Krahn Chemie as a family-owned, mediumsized company fit very well with those of AmphoChem, Pemco Additives, Temper Technology and BGM,” she says. “The exchange of skills and know-how that will take place between Krahn Chemie and the newly acquired companies will also be of benefit to the key producers in our industries.” “This transaction, like the acquisition of InterActive in Greece at the beginning of 2020, represents another important step for the Krahn Chemie Group to sustainably secure its future and further strengthen its position as a pan-European distributor,” says Axel Sebbesse, chief development officer and head of mergers and acquisitions at the Otto Krahn Group, parent of Krahn Chemie. “Krahn is the ideal platform for companies that want to benefit from the added value of an international

Bodo Möller Chemie has extended its partnership with BASF in Africa with two new arrangements. In the first, Bodo Möller Chemie South Africa has expanded its distribution agreement with BASF South Africa to include resins and additives, in addition to the two companies’ successful partnership in dispersions for the coatings, adhesives, sealants and elastomers (CASE) sector in the southern Africa region. “The industrial use of CASE materials continues to grow in African countries. Owing to the exclusive distribution agreements with our long-standing partner BASF, Bodo Möller Chemie is reacting to the growing demand of local users,” says Florian Krückl, vice-president, Global Business Management CASE & Textile Effects, at the Bodo Möller Chemie Group. Bodo Möller Chemie has also been appointed by BASF as its exclusive distributor for resins and additives for the paints and coatings industry in Egypt. “Coatings, Adhesives, Sealants and Elastomers are decisive cornerstones of modern industry used in key sectors like the automobile industry or the timber and construction sector. Nowadays, the needs of our customers go clearly beyond the product and require the comprehensive expertise from our distributor’s side,” says Krükl. “Close partnerships with a manufacturer like BASF are extremely important, because only in this way we can jointly offer the best solution for our customers.” bm-chemie.com UNIVAR’S SASOL AGREEMENT

Univar Solutions has reached agreement with Sasol Chemicals to become its primary distributor of alcohol and surfactant products in the US and Canada. “Univar Solutions’

CHEMICAL DISTRIBUTION 37

warehousing, distribution, logistics network and digital marketplace leadership will enable Sasol to enhance our customer service and help meet our sustainability goals,” says Victoria Stolarski, Sasol’s director of marketing and sales, global alcohols and US surfactants. “Through Univar Solutions we will gain packaging and shipping efficiencies that will help us reduce both plastic use and fuel consumption.” “We are extremely pleased to help Sasol reach its sustainability goals and appreciate the trust placed in Univar Solutions,” says Brian Jurcak, vice-president of product marketing management at Univar. “Through this expanded agreement, Sasol’s customers will also benefit from our extensive sales team, applicationspecific technical support, and complementary product portfolio.” www.univarsolutions.com TER PARTNERS WITH PATECH

TER Chemicals has entered into a distribution partnership with Taiwan-based Patech Fine Chemicals covering Germany, Austria, Switzerland and the UK. Patech specialises in synthetic esters used in the lubricants, personal care, plastics and reflube compressor industries. “Patech Fine Chemicals boasts an extensive ester portfolio with a clear focus on lubricants and plastics. We are delighted that our customers in the DACH region and the UK are now also able to benefit from our enhanced product range and that we can take major steps forward with the Business Unit Surface & Lubricants,” says Dirk Schlatermund, head of Business Unit TER Chemicals. www.terchemicals.com

suits today’s corporate culture; it will strengthen our position and help drive Brenntag’s development.” In other news, Brenntag has acquired ICL Packed, a subsidiary of UK-based Industrial Chemical Ltd (ICL) that specialises in the distribution of packaged water treatment chemicals. “We see a very positive outlook for the water treatment business in the UK over the years to come due to population growth and the increased pressure on environmental quality,” says Steven Terwindt, COO of Brenntag Essentials. “The acquisition will not only strengthen our position in water treatment but also in core market sectors in the region.” Alongside the acquisition, the deal includes a sourcing agreement under which Brenntag will have access to ICL’s caustic soda, hydrochloric acid, sodium hypochlorite and iron and aluminium coagulants in the UK. www.brenntag.com SWISS SUCCESS FOR STOCKMEIER

Stockmeier Group has strengthened its management in Switzerland, with the aim of driving further expansion in the Swiss market. Mark Häberli has been appointed as managing

director of Kemtan AG, the Basel-based company acquired by Stockmeier at the start of 2020. For the past six years Häberli has been department manager for Nordmann Rassmann in Zurich. In his new role he will report to Dirk Seidel, managing director of Stockmeier Chemie and Kemtan, and will work closely with René Wieseotte, who will continue for another year as business development manager to support the company’s sales strategy in Switzerland. Kemtan has also recently picked up a major deal from Kolb Distribution and KLK Tensachem, expanding on an existing partnership between Stockmeier and the KLK Oleo Group in Germany to take the products into Switzerland and Liechtenstein. “This strategic cooperation sustainably strengthens our market presence in Switzerland,” says Dr Anja Vonderhagen, executive business director of Kolb Distribution. “Together we want to write another success story and further expand our offering.” KLK Oleo and its subsidiaries specialise in surfactants based on natural and synthetic alcohols and on other oleochemical products. www.stockmeier.com

NEW FORM FOR BRENNTAG

Brenntag has completed the process of changing from a German stock corporation (AG) to a European company and is now doing business as Brenntag SE. The conversion was agreed internally in the autumn of 2019 and approved by shareholders in June 2020. Brenntag will keep its headquarters in Essen and maintain its existing management structure. “Almost 17,500 people from more than 100 countries work for Brenntag, around 90 per cent of them outside Germany,” notes CEO Christian Kohlpaintner. “The SE is a supranational, up-to-date legal form that

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38 COURSES & CONFERENCES

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

MARCH

MAY

Intermodal Connect March 16-18, virtual Online networking opportunity for providers, customers and influencers in the intermodal transport sphere www.intermodal-events.com/en/home.html

Transport Logistic May 4-6, virtual Biennial exhibition for logistics, IT and supply chain management www.transportlogistic.de/index-2.html

Tanks and Terminals 2021 March 16-18, Dubai Conference and workshop on integrity management of aboveground storage tanks www.marcusevans-conferences-middleeastern. com/ Hydrogen & Fuel Cells Energy Summit March 17-18, Porto Conference to discuss innovations in hydrogen and fuel cell technology, production and transport www.wplgroup.com/aci/event/hydrogen-fuel-cellsenergy-summit/ LNG Congress Russia March 17-18, Moscow Seventh annual congress and exhibition on developments in Russian and Arctic LNG www.lngrussiacongress.com/en BADGP March 25, online Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/event-4095748

APRIL AFPM Annual Meeting April 12-13, virtual AFPM’s annual meeting for refiners and marketers www.afpm.org/events/AM21 FETSA Annual Conference April 12/14, online Annual conference and AGM of the Federation of European Tank Storage Associations https://fetsa.eu/annual-conference/ CVSA Workshop April 19-23, virtual Meeting for industry, regulators and enforcers to improve commercial vehicle safety www.cvsa.org/eventpage/events/cvsa-workshop/

HCB MONTHLY | MARCH 2021

IOSC 2021 May 10-14, virtual International Oil Spill Conference iosc.org Bulk Tanker Day May 11-12, Brisbane 12th annual road tanker event hosted by the National Bulk Tanker Association www.nbta.com.au/tankerday/ Virtual Hazmat 2021 May 18-19, online NCEC’s annual conference for those involved in hazmat response, incident management and crisis management https://the-ncec.com/en/events-en/virtualhazmat-2021 World LNG Series: Asia Pacific Summit May 18-20, Kuala Lumpur 12th annual meeting for LNG buyers and sellers https://asiapacific.cwclng.com/ AFPM IPC May 23-25, San Antonio AFPM’s annual International Petrochemical Conference www.afpm.org/events/2926d800000001

JUNE CV Show June 8-10, Birmingham Annual commercial vehicle exhibition https://cvshow.com/ NTTC Annual Conference June 13-15, Indianapolis 72nd 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 Hazardex 2021 & PPTEx June 16-17, Harrogate

Conference and exhibition on hazardous area operations and personal protective technology www.hazardex-event.co.uk/ PGLC June 17-18, Barcelona Second annual Petrochemical Global Logistics Convention www.pglc.biz Multimodal 2021 June 22-24, Birmingham 13th annual exhibition for the supply chain management and logistics sectors www.multimodal.org.uk IAFC Hazmat Conference June 24-27, Baltimore Annual international event for response teams www.iafc.org/events/hazmat-conf

JULY Oil & Gas Africa 2021 July 1-3, Nairobi Ninth annual exhibition for the upstream and processing sectors in east Africa www.expogr.com/kenyaoil/ UKIFDA Expo 2021 July 7-8, Liverpool Annual exhibition for the fuel distribution sector in the UK and Ireland (formerly FPS Expo) https://ukifda.org/ukifda-expo/ Hazardous Areas Conference July 7-8, Brisbane Eighth conference on the safe use of electrical/ mechanical equipment and instrumentation in hazardous, flammable or explosive atmospheres www.events.idc-online.com/upcoming-conferences/ hazardous-areas-conference-brisbane-australia Intermodal Asia July 20-22, Shanghai Seventh annual exhibition for the Asian intermodal sector www.intermodal-asia.com AHMP National Conference July 25-28, Kansas City Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/events/EventDetails. aspx?id=1290668&group=

COURSES & CONFERENCES 39

CLASSES IN GLASSES ONLINE TRAINING • THE NEED TO MOVE AWAY FROM IN-PERSON TRAINING IS GENERATING SOME ORIGINAL CONCEPTS, AS LABELMASTER’S LATEST OFFERING DEMONSTRATES LABELMASTER HAS LAUNCHED a new 3D online training service to provide a more interactive, real-life training experience for

impacting the ability of dangerous goods professionals to prepare supply chain team members and partners for safe and compliant

supply chain professionals in the dangerous goods/hazardous materials area. The system immerses trainees in a virtual warehouse, in which they have to make real-time decisions as they confront real-life challenges while attempting to ship flammable liquids or lithium batteries safely and in compliance with the regulations. Developed in partnership with awardwinning interactive experiential agency Next/Now, these digital experiences enhance Labelmaster’s already successful dangerous goods training curriculum by positively

operations. The concept allows any organisation to leverage best-in-class training methods and to be confident that the training programmes it provides enable safety and compliance in the movement of dangerous goods through the supply chain. Shipping dangerous goods is highly regulated and can be extremely complex, which is why quality training is so crucial,” says Robert Finn, vice-president of marketing and product management at Labelmaster. “Unfortunately, traditional training approaches can be boring and impractical, and don’t prepare students to be effective on the job. Partnering engaging real-world experiences with traditional training methods can strengthen employees’ understanding and help them more

 LABELMASTER’S NEW 3D TRAINING PUTS THE TRAINEE RIGHT IN THE WAREHOUSE

effectively apply what they have learned.” By contrast, 3D training offers a game-like experience that immerses the student into a fun, engaging, realistic warehouse environment where important decisions need to be made – and mistakes have consequences. HOW IT WORKS Depending on the specific training needed, the user is given a choice of products (flammable liquid, lithium batteries, etc) and/or mode of transport (air, ground or ocean). After making a selection, the user then walks through each step to prepare the shipment, including: -L ocating and reading shipping instructions - Selecting outer and inner packaging components -S electing and applying appropriate labels and markings -S electing the correct bill of lading or shipper’s declaration. The system has two levels of difficulty: ‘Rookie’, which provides hints when an incorrect decision is made; and ‘Pro’, which does not. Customised options are available to meet each organisation’s unique training needs. As shipping dangerous goods becomes increasingly complex and regulations continue to evolve and expand, it is increasingly clear that many organisations need training programmes that better prepare supply chain personnel, enable them to train and recertify employees remotely, and deliver real business value. This is especially true for organisations that view dangerous goods management as a ‘necessary evil’ and are simply looking to ‘check the box’ when it comes to compliance training. Labelmaster’s 3D training experiences offer organisations a simple yet effective way to modernise their approach and use real-world, hands-on experience versus simply studying regulatory manuals. With better compliance training, both senior leadership and the employees directly responsible for shipping and handling DG can be confident that they are making the right decisions and following the right shipping procedures to help ensure a safe, compliant supply chain. More information on the new 3D interactive training programmes can be found at www. labelmaster.com/3d-dg.

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Details

Source

7/1/21

Apapa, road tanker gasoline Lagos, Nigeria

Road tanker with 55,000 litres gasoline overturned after driver failed to negotiate bend; cargo spilled from tank but fire was averted, though locals panicked and fled; some damage to flyover

Vanguard

8/1/21

Kuwait City, vacuum tanker — Kuwait

Two workers killed, one injured by explosion during welding work on vacuum tanker that was used to carry fuel; vehicle was blown 30 metres away, crashing into road bridge; police investigating incident

Kuwait Times

11/1/21

Bozeman, road tanker LPG Montana, US

Gas tanker slid on ice, struck propane tank at concrete plant; tank was cracked by impact, causing leak of gas, ABC7 which was ignited; tank exploded; no injuries reported

12/1/21

nr Alur, road tanker Karnataka, India

Road tanker overturned on Alur-Aspari Road, reportedly due to driver inattention, causing leak of acid from cargo tank; no fire but responders were on hand with foam; remaining cargo transferred to second tanker

The Hindu

12/1/21

nr Basin, road tanker unknown Montana, US

Tank truck overturned on I-15, due to icy patch on curve; reports speak of fire, though few details; driver killed in incident; southbound lanes closed during response, cleanup

KRTV

12/1/21

nr Nephi, road tanker gasoline Utah, US

Pup trailer detached from tank truck, rolled over and leaked gasoline on median of I-15; both lanes closed for KUTV several hours; no threat to public and no word of injuries

19/1/21

Abeokuta, road tanker gasoline Ogun, Nigeria

Speeding road tanker crashed, spilling gasoline cargo and causing explosion; at least three people killed, more injured; several vehicles destroyed in blaze; driver said brakes failed

Daily Post

19/1/21

Memphis, rail tank car cooking oil Tennessee, US

Two workers at Runyon Industries suffered burn injuries while attempting to open top cover of tank car with a “cooking oil product” when flash fire occurred; one fractured leg after falling; investigation underway

21/1/21

Baytown, road tanker unknown Texas, US

Tank truck driver injured when his vehicle overturned on Spur 330; trailer detached from tractor during incident; cause unknown but truck had apparently hit overhead sign

Baytown Sun

23/1/21

Agbor, road tanker LPG (?) Delta, Nigeria

Four people killed, 11 injured when road tanker exploded during delivery of “gas” to service station; nearby homes, vehicles damaged by blast; fortunately the location is not in a densely populated are

APP

HCB MONTHLY | MARCH 2021

Vehicle Type

Substance

hydrochloric acid

SAFETY 41

MARINE/INLAND WATERWAY INCIDENTS Date

Location

26/12/20

Kodiak Island, Spar Alaska, US

Substance

Details

Source

hydraulic oil

US Coast Guard buoy tender spilled unknown quantity of hydraulic oil in Womens Bay; source of discharge secured, cleanup contractor appointed, cause under investigation

Maritime Executive

28/12/20

Butinge, — oil Lithuania

Orlen Lietuva reported spill of up to 2 tonnes of unspecified pollutant from its import terminal; spill spread over 1 km² of sea, drifting north; Lithuanian Navy deployed to liquidate slick

LRT

31/12/20

Paraíso, pipeline oil Tabasco, Mexico

Fire broke out after rupture in pipeline to loading platform off Nueva Refineria Dos Bocas; local fishermen reported oil spill, potential damage to oyster beds; line shut in ahead of repairs by operator Pemex

Radio Fiji

11/1/21

Valdez, Alaska, US

Polar crude oil Endeavour

Oil tanker (141,740 dwt, 2001), having just loaded cargo, was in collision with harbour tug Courageous that went out of control; tanker was holed above waterline, remained at Valdez for repair, departed a week later

FleetMon

Espoir oil Ivoirien

Two workers died inside cargo tank of FPSO (155,000 dwt, 1975) when hydrocarbons leaked into the tank; those who died were apparently overcome by vapours; production was stopped, leak contained

Maritime Executive

14/1/21 off Côte d’Ivoire

Vessel

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Details

Source

20/12/20

Taoyuan, Taiwan

pharmaceutical chemicals plant

Substance

One worker died from injuries received during massive explosion at SCI Pharmtech factory, a major producer of hydroxychloroquine APIs; resulting fire burned for three days, possibly as a result of leaking chemicals

TEN

20/12/20

Fresno, storage yard chemicals California, US

Massive fire broke out at “storage yard”, causing several tanks with fuel to explode; responders concentrated on preventing fire from spreading to neighbouring properties; unidentified chemicals involved in fire

KFSN

21/12/20

Casalbordino, Chieti, Italy

Three people killed by explosion in gunpowder processing factory; part of the town was ordered to evacuate in case of further explosions; cause under investigation

ANSA

24/12/20

El Arish, pipeline natural gas N Sinai, Egypt

Explosion on key pipeline caused fire but no casualties; local supplies not affected; investigation underway but some witnesses reported seeing militants planting explosives before fleeing the scene

5/1/21

Oduoha, pipeline natural gas Rivers, Nigeria

Rupture in one of two gas pipelines to Bonny terminal said in some reports to have caused explosion but no injuries reported; not clear if it was on NLNG or Agip line; gas continued to escape for more than a day

Punch

7/1/21

Ningxiang, Hunan, China

One killed, up to 20 injured by powerful explosion in CATL’s Brunp Recycling Technology factor, said to Reuters be the largest in China recycling used lithium batteries; blast said to be in old workshop, will not affect output

7/1/21

Skeikhupura, oil factory oil Punjab, Pakistan

Three workers were killed when part of “oil factory” (not clear if refinery or depot) collapsed after fire broke SAMAA out; large cloud of smoke seen over nearby area; additional fire crews came from Lahore; investigation started

9/1/21

Karachi, warehouse paint Sindh, Pakistan

Fire broke out in warehouse at paint factory in SITE area, proved difficult to bring under control due to large stocks of paint thinner, fuels; some reports said gas cylinders were also involved; at least eight injured

SAMAA

9/1/21

nr Kalaidyntsy, pipeline natural gas Poltava, Ukraine

Explosion struck Urengoy-Pomary-Uzhgorod gas line; locals asked to shut off gas appliances in case of supply shutdown; no casualties reported; cause under investigation, sabotage not ruled out

112.UA

16/1/21

Pasir Gudang, Johor, Malaysia

One worker killed, two injured by explosion during welding on storage tank with 800 tonnes of glycerine; fatality caused by worker falling from top of tank; no fire and production continued as normal

Borneo Post

18/1/21

New Town, tank battery N Dakota, US

crude oil, brine

Explosion at tank battery sparked fire in 14 tanks and caused spill of crude oil and produced water; fire was allowed to burn out; oil spill estimated at 600 bbl was contained on site or consumed in fire

KVRR

19/1/21

Homs, oil depot crude oil Syria

Fire broke out in crude oil storage tank in tank farm near Homs refinery; some reports suggest fire started after explosion in road tanker delivering crude and spread to several other tankers; no casualties reported

Reuters

20/1/21

Janzur, warehouse ammunition Libya

Fire, explosion at ammunition warehouse at naval academy killed three people, injured four more; videos showed massive flames at site, surrounded by ambulances, fire tenders; cause under investigation

Reuters

20/1/21

Christchurch, New Zealand

transport nitric acid depot

Some 1,000 litres nitric acid spilled at Owens Transport yard, volume suggesting IBC may have ruptured; responders contained spill, neutralised acid; no serious injuries; motorists urged to avoid area

NZ Herald

21/1/21

Baton Rouge, Louisiana, US

tank cleaning depot

Some 500 gal (1,900 litres) maleic anhydride spilled at Quala Wash depot, cause unknown; 150-foot perimeter WAFB9 set up; residents of nearby trailer part advised to evacuate or shelter in place; no off-site air impact recorded

25/1/21

Dalian, pipeline natural gas Liaoning, China

gunpowder gunpowder factory

recycling batteries plant

palm oil glycerine plant

maleic anhydride

Gas pipeline exploded near residential area in Jinzhou district; eight people injured in blast, which sparked Xinhua fire that spread to auto repair shop, causing another explosion that killed three; investigation found leak on line

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ALL AT SEA CONTAINER FIRES • EVERY TWO WEEKS, A FIRE BREAKS OUT ON A CONTAINERSHIP BUT ONLY A HANDFUL MAKE THE NEWS. WHAT CAN WE LEARN FROM THOSE STATISTICS? THE SCOURGE OF fires aboard containerships is proving very difficult to address. It is widely said that a fire breaks out roughly every two weeks – and yet the number of high-profile incidents such as the fires aboard MSC Flaminia or Maersk Honam are, by comparison, fairly rare. So if there are, say 25 containership fires every year, why do only a handful make the news? This was one issue addressed during a webinar hosted by TT Club and the UK P&I Club in February, during which some 200 interested viewers spent a little more than an hour with two experts in the field: John Gow, senior investigator with IFIC Forensics and a 40-year veteran as a professional firefighter

and incident commander; and Nick Haslam, principal master mariner and partner at Brookes Bell. The potential impact of a uncontrollable fire aboard a ship at sea is immense: there is the risk of loss of life and of damage to property and the environment, which can come at a massive cost to the maritime industry and its insurance underwriters. Gow mentioned that the total loss involved in the MSC Flaminia case came to some $260m and, as containerships continue to get bigger, the industry is facing potential losses of up to $1bn. Furthermore, as has been noted repeatedly, many of these fires are known

or suspected to have been caused by dangerous goods, often mis- or undeclared or hidden by the use of special provisions. This creates problems for firefighters: how can they attack a fire if they do not know what is burning? LIFE AT SEA Gow used his extensive experience as a firefighter to contrast the practicalities of fighting a fire at sea compared to on land. After all, on an ultra-large containership, the container stack can be 70 metres or more high, equivalent to a high-rise building ashore. Considering firefighting on land, Gow mentioned that personal protective equipment (PPE) has improved immensely in recent years, especially in terms of lightweight breathing apparatus (BA). In addition, buildings are generally designed so as to contain any fire that does break out and are often fitted with sprinklers. Firefighters attending such a blaze normally find that access is comparatively easy and they are also likely to get an early indication of the fire. If additional resources are needed, they can come quickly – within minutes in an urban environment. At sea, however, PPE is not so good. Gow said that BA is normally limited to about 30 minutes but this is optimistic given the time it takes to get to the fire and get out safely. The arrangement of containers on a ship is both a help – cargo compartments can contain a fire – but also a potential hindrance, when the containers are packed tightly on deck, making it difficult for responders to move freely and to get equipment to the right place. For underdeck fires, getting personnel into the area to fight the fire means an enclosed space entry, which is not recommended. Furthermore, the speed of response is much slower than on land – it may take some time for the fire to be noticed and located, and then crew have to get the right equipment to the right place. Accommodation units and wheelhouses are usually fairly well protected but can, Gow said, be hard to access, with narrow

HCB MONTHLY | MARCH 2021

SAFETY 43

corridors and steep stairs. Furthermore, depending on where the fire breaks out, it may be difficult or even impossible to access the firefighting equipment. The other main difference is that, aboard ship, the firefighters – at least initially – will be the crew themselves, who receive limited training compared to professional firefighters ashore. And outside help may be hours or even days away. GET TO THE SOURCE The fundamental policy in fighting a fire is, Gow said, to “get up close and personal”. For a deck fire, that is not easy. Not only does the fire have to be identified, especially if smoke is blowing away from the ship, but the crew have to get to the seat of the fire with the necessary equipment, which is often bulky and heavy. Cargo holds are generally fitted with an aspirating smoke detector but these have not changed in decades and can be slow to respond. Under deck, ventilation plays a significant role. Closing vents and hatches is a good way to prevent the fire from spreading and, in conjunction with CO², can reduce the amount of oxygen available to feed the fire. But too often those vents and hatches need to be closed manually; mechanical means to do so are vital if a rapid response is to be achieved. This is not a new issue: it was shown by research 75 years ago! Gow mentioned the use of high-expansion foam as an alternative to CO², which has been shown to be effective but does raise problems with disposal. He also noted that a container in good condition can contain a fire, unless it is extremely aggressive or involves oxidising substances; once the oxygen is depleted, the fire may just

 JOHN GOW (RIGHT) NOTED THE MAJOR DIFFERENCE IN TRAINING REQUIREMENTS FOR SEAFARERS COMPARED TO SHORE-BASED FIREFIGHTERS AND THE INHERENT DIFFICULTIES IN FIGHTING A FIRE ABOARD A LARGE CONTAINERSHIP

smoulder. A damaged container, though, may well let more air in, allowing the fire to build. Gow looked at some emerging risks, in particular the new propulsion systems being trialled, involving such fuels as electricity, hydrogen, ammonia and so on. These pose different hazards, meaning different training will be required. Is the legislative framework keeping pace with developments? If not, as seems likely, vessel operators will need to take the lead. VIEW FROM THE BRIDGE Gow had brought along his experience as a firefighter but Nick Haslam, having spent 21 years of his career at sea, had a slightly different perspective. He agreed with Gow that the fire training of seafarers is insufficient and said that the relevant parts of the International Convention on Standards of Training, Certification and Watchkeeping (STCW) was in need of review, along with the fire safety and fire suppression requirements found in the International Convention for

over the ship. Despite that, the crew are only required to have the basic fire training specified in STCW, which amounts to about 2.5 days and does not include live exercises or much in the way of refresher training. By contrast, the crew on a 20,000-dwt chemical tanker would get much more, and more specific training. For seafarers, big fires are way outside of their training envelope, Haslam said, agreeing with Gow that more – and more specific – training is sorely needed. While there is plenty of water around a ship, it might not be the best medium for extinguishing a chemical fire, but to know that takes knowledge. Meanwhile, Solar

Safety of Life at Sea (Solas). It is becoming increasingly clear, he said, that STCW and Solas have not kept pace with developments in containership size and design. For example, a big containership might have around 20,000 tonnes of dangerous goods on board, stowed in containers all

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specifies a lot of water – not only might this be dangerous but it can also make a distressed vessel unstable and threaten its mechanical integrity, while also posing post-incident disposal problems. Haslam also noted that, while the focus is on the flammable substances and other chemicals that can cause fires, there is an enormous amount of other combustible material among the average containership’s cargo, some of which will generate toxic smoke when it burns. WHERE ARE WE GOING? The webinar, moderated by Mike Yarwood, managing director of loss prevention at TT Club, ended with questions from the audience, some of them lodged prior to the session. By and large, these focused on how specifically the provisions can be improved. Should Solas, for instance, mandate fixed

said that anything would be an improvement on the current position, though he stressed that flexible and portable equipment, such as firefighting hoses, would always be needed. But why is the maritime industry unable to follow up on technical advances in shore-based firefighting? Haslam did, though, give some interesting examples of how some of the more responsible container line operators are equipping their vessels to provide better protection, such as adding more fixed water monitors, more CO² injection points, better cargo containment, and so on. Indeed, he showed an impressive image of one of MSC’s new containerships, which is fitted with water monitors on top of both the accommodation block and the engine block – these being separated by some distance in modern configurations; the two sets of monitors can reach the entire length of the ship, without

with an onboard fire are early detection and early deployment. Better detection systems, particularly for on-deck cargoes, and faster means of addressing any fire are crucial if crews onboard are going to have a chance of dealing with an outbreak. But both Gow and Haslam stressed that there are plenty of examples of onboard fires being successfully dealt with by the equipment available; ideally, the lessons drawn from those response efforts should be disseminated more widely, perhaps via the Cargo Incident Notification System (CINS), so that other vessel operators can improve their own fire response efforts. Industry can learn from its successes, not just from its failures.

water monitors, rather than the mobile units or hoses widely used? Should STCW mandate additional training, including training on working at height and dealing with chemical fires, for seafarers on containerships? Haslam, clearly keen to see some action to protect seafarers and the environment,

some poor crewman having to lug heavy equipment up and down gantries. That does not get the crewman “up close and personal” as Gow advised but certainly offers one way of providing rapid response in the event of a fire. Haslam stressed that the two most important elements when dealing

topic; the third and final webinar, scheduled to take place on 17 March, will look more closely on what happens after a fire and how the aftermath can best be cleaned up. More information on this and other related events can be found on the TT Club website at www.ttclub. com/news-and-resources/events/.

HCB MONTHLY | MARCH 2021

The TT Club/UK P&I Club webinar, Containership fires: what the ship can do, was the second in a series of three events on the

SAFETY 45

LIFT AND SEPARATE ATEX PROTECTION • PYROBAN HAS HELPED SUN CHEMICAL UPDATE SAFETY AT ITS MANUFACTURING PLANT IN YATE, WITH ZONE 1, 2 AND 22 PROTECTED FORKLIFTS SUN CHEMICAL HAS introduced a new fleet of nine forklifts at its site in Yate in north-east England, fitted with explosion protection from Pyroban. The site blends solvents with pigments to produce solventbased liquid inks for flexible packaging printed by the flexographic and gravure print processes. This includes anti-mist coatings (for direct food contact) produced in dedicated production area. “Safety is the number one priority on our site, as there is such a high volume of flammable material present, including over 100,000 litres of solvents,” says Sean Clancy, manufacturing manager at the Yate plant. “We typically have more than one million kilos of finished product stored in intermediate bulk containers (IBCs) and 200-gallon drums.” “Our diesel forklifts are typically used in the outside storage area where an unexpected release of vapour from storage drums and IBCs could present a risk. They are also used to transport goods to and from our large Zone 2 finished goods warehouse and for loading/ unloading lorries,” says Clancy. “We also have a pigment store with flammable powder hazards, so these trucks have also been converted for Zone 22 operation, giving us maximum flexibility in where we can deploy our fleet.” Three UniCarriers DX20 2-tonne diesel lift trucks have been converted with Pyroban’s system6000 for Zone 2 hazardous areas, which combines active gas detection with various explosion protection methods. If any solvent

explosive limit (LEL) (propane in air), the active gas detection system gives operators a visual and audible warning, prompting them to drive away from the area and raise an alert. If the vapour levels continue to rise the trucks will automatically be brought to a controlled stop. For the firm’s Zone 2 operations, two electric AM20SE, Aislemaster articulated lift trucks were also specified with system6000. These are used for picking in its raw material stores and in the warehouse. Sun Chemical already has two Pyroban Zone 2 converted shrink wrappers on site in its warehouse. ZONE 1 PROTECTION “This site also includes Zone 1 areas, where an explosive atmosphere is expected as part of normal operation,” explains Darren Boiling, materials handling sales manager for Pyroban. “This is different to Zone 2, where if a flammable gas or vapour is encountered, it means something has gone wrong, like

a spillage or other accidental release.” “This type of operation requires a very different type of conversion, as the trucks need to continue to work through the explosive atmosphere, but must, of course, do so safely,” Boiling adds. “And this site handles everything from MEK and cyclohexane to heptane.” For these areas, Pyroban modified four UniCarriers TX4-20 electric forklifts with its Extec 2G conversion. Whether it is collecting solvents from the site’s solvent tank farm to bring into production, operating near to its seven 10-tonne mixers, working with the highly flammable nitrocellulose for making varnishes, or transporting finished goods from Zone 1 production areas to the warehouse, the specially adapted Zone 1 forklifts can be operated safely. “When the rental period was up on our existing fleet, we wanted to update our trucks but continue our good relationship with Pyroban,” says Clancy, explaining that he has found the level of engineer support and response time to questions and issues to be superior compared to other suppliers. “Importantly, in the past 12 months, we have had no incidents or problems with the trucks. This has helped keep operations running as planned during Covid-19, supporting our operation through the spikes in demand caused by panic buying in food retail.” www.pyroban.com

vapour is detected at 10 per cent of the lower

 PYROBAN’S LATEST SYSTEMS ALLOW SUN CHEMICAL TO RUN ITS FORKLIFTS ALL THE WAY THROUGH ITS YATE PRODUCTION FACILITY

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READY FOR ANYTHING CRUDE BY RAIL • THE SAFETY RECORD IS IMPROVING BUT ACCIDENTS CAN STILL HAPPEN ON THE RAILS. EMERGENCY RESPONSE KITS PROVIDE A MUCH NEEDED SAFETY NET, SAYS TROY SCARROW*

CITING A FORECAST from the US Federal Highway Administration (FHA), the Association of American Railroads (AAR) reported in October 2020 that total railroad freight shipments in the US will rise from 18.6bn tonnes in 2018 to an estimated 24.1bn tonnes by 2040, an increase of 30 per cent. A good portion of this growth is being driven by the historically high levels of oil and natural gas that is being produced and transported in the US, creating a need for more shipping of crude oil by rail. Since crude oil and natural gas are considered hazardous materials, there are

now approximately 3.1bn tonnes of hazardous materials – which also commonly include chlorine, anhydrous ammonia, ethylene oxide and sulphur dioxide – transported by long-haul rail in the US each year. Despite this growth in long-haul rail transport, railroads remain one of the safest ways to transport both hazardous and nonhazardous materials. According to the US Federal Railway Administration’s (FRA) 2018 rail safety data, the overall rates for train accidents, equipment-caused accidents, track-caused accidents, derailments and employee

injuries, per million train miles travelled, have declined by as much as 26 per cent since 2009, depending on the category. More specifically, between 2008 and 2018, the hazardous material (hazmat) accident rate fell by 48 per cent and, in 2018, more than 99.999 per cent of rail hazmat shipments reached their destination without a release caused by an incident. These heartening statistics are much more than a happy coincidence. They are the manifestation of the railroad industry making a strong commitment to ensuring that its infrastructure and rolling stock are up to date and in top working order, that all regulations regarding hazmat hauling are steadfastly observed and that its employees are properly trained. ACCIDENTS WILL HAPPEN The railroad industry has a goal of one day becoming accident-free. If this operational nirvana is ever to be achieved, railroad operators must be familiar with the risks inherent in the handling of hazardous materials – and the ways that they can lessen the chances that an incident involving the release of hazardous materials will occur. There are three primary potential risks every time a train laden with hazardous materials pulls away from the depot: •A ccident: Accidents are the hardest thing for railway operators to protect against since their rate of occurrence can be capricious and they are often caused by external factors that are entirely out of the operator’s control. These can range from an automobile or truck that has stopped illegally on the tracks to a tree that may have fallen across the tracks during a passing storm. •M echanical Failure: This category encompasses all leaks and other releases from malfunctioning or improperly secured pressurised railcar pressure-relief devices, valves, couplings, hoses, fittings and tank shells. •O perator Error: Human beings are fallible creatures that are susceptible – no matter

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their level of conscientiousness or training – to making mistakes. So, all railroad technicians must take every precaution necessary to ensure that every coupling is attached properly and every valve is closed properly before, during and after every railcar loading or unloading. A FRIEND TO FIRST RESPONDERS Despite the next-generation design and operation of railcars and their ancillary components, the high-level training that rail personnel receive, the attention paid to guaranteeing that the railway infrastructure is in good working order and stricter regulations governing the transport of hazardous materials, the next hazmat release incident is always looming. To ensure that the sometimes inevitable doesn’t become the next catastrophic, headline-generating hazmat release incident, manufacturers of railcar equipment have developed Emergency Response Kits (ERKs) that are marketed to fire departments, emergency repsonse contractors and railway dangerous goods officers, or any other organisations that employ first responders who are tasked with responding to railroad accidents or non-accidental releases (NARs). One of the companies that has taken the lead in the development of ERKs is Midland Manufacturing, based in Skokie, Illinois. Its B-240/B-243 Emergency Response Kit has been developed to give emergency responders three easy-to-use cover assemblies and a carrying case that contains all of the tools and parts needed to quickly and safely cap hazmat leaks emanating from the top of pressurised

 ALTHOUGH RAIL TRANSPORT IS VERY SAFE, IT IS BEST TO BE PREPARED. MIDLAND MANUFACTURING IS PLAYING ITS PART WITH ITS EMERGENCY RESPONSE KITS

railcars in the event of an accident or NAR incident. A typical ERK consists of a toolbox containing a broad range of tools and replacement parts; cover cans of five different sizes that are used to cap a leaking valve or fitting, along with corresponding gaskets; and a bridge that is used to secure a cover can to the railcar’s manway cover plate. Knowing the importance of the ERK’s components being able to perform reliably in high-leverage situations, all of the tools are highly engineered and designed to be durable no matter the pressures, product flows and general abuse they are subject to during a hazmat release incident.

In fact, it is recommended that all first responders practice using the components in the ERK at least twice a year and, if possible, train with an actual hazmat railcar as a way to better familiarise themselves with the railcar’s components and where things can go wrong. The ultimate goal is for first responders to feel as comfortable as possible with the ERK and its components and capabilities long before they ever have to use it.

Like any product, the user of an ERK is only as proficient in its use as the level of training they receive. With that in mind, the providers of ERKs offer training classes and videos that are formatted to make the user capable of performing confidently during the most dangerous release incidents.

and tank containers, including bottom and top loading/unloading valves, pressure relief valves, level gauge device and monitoring equipment. Troy can be contacted by email at troy.scarrow@opwglopbal.com. Midland is part of OPW, itself part of Dover Corp. More information can be found at midlandmfg.com.

*Troy Scarrow is regional marketing manager for Midland Manufacturing, which specialises in equipment for pressurised and general purpose rail tank cars, chemical cargo tanks

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CHILLED OUT DRY ICE • AIR CARGO OPERATORS EXPECT TO BE CARRYING INCREASING VOLUMES OF DRY ICE AS COOLANT; FINNAIR HIGHLIGHTS THE RISKS AND EXPLAINS HOW IT IS APPROACHING THEM

DRY ICE – CARBON dioxide in a frozen state – has been used for decades to keep goods in transit cold. It is far more effective than using water ice, as it stays frozen for longer, but when it ‘melts’ – more accurately, ‘sublimates’ – it turns back to gaseous carbon dioxide. As a result, it is classified under the dangerous goods regulations as UN 1845, Class 9. In road transport it is not regarded as a problem and, when used as a coolant, is not subject to the provisions of ADR. However, sublimation is

 SUBLIMATION OF DRY ICE POSES PARTICULAR HAZARDS DURING AIR TRANSPORT

considered a serious issue in air transport – an aircraft is an enclosed tube and there is no way for gaseous CO² to escape, posing a risk to passengers and crew, so it is subject to the regulations. The emergence of vaccines during the Covid-19 pandemic, many of which need to be kept at refrigerated temperatures during transport and which are being widely carried by air, has raised awareness of the use of dry ice but has also, perhaps, brought it into contact with logistics professionals who have had no experience with it until now. Henry Rantala, who was, before his retirement this past January, manager of compliance and standards at Finnair, where

he worked for more than 40 years, has brought his long experience to the fore to explain the risks and how they can be addressed during the transport of goods – mainly pharmaceuticals, medical samples and high-value foodstuffs – by air. PREPARE FOR GROWTH Packagings containing dry ice cannot be fully airtight; sublimated gas needs to vent to the outside of the package to avoid damage and, in the worst case, the explosion of sealed packages. Air carriers know that this will happen and so need to calculate the likely extent of the release of gaseous CO². This is based on the sublimation rate of dry ice which, according to studies made by the US Federal Aviation Administration (FAA), is 2 per cent for packages with less than 45 kg of dry ice and 1 per cent for packages with more than 45 kg. That rate is on a per-hour basis. In practice, the actual sublimation rate is more variable. Account needs to be taken of the air pressure, the ventilation of the packagings, the required temperature, the duration of the flight and, especially, the form in which the dry ice is used. Although pellets are the most common, there are other widely used forms, each of which has a different sublimation rate. But, using these guidelines, a carrier can calculate how much dry ice can be carried in any particular flight. Finnair carried more than 300 tonnes of dry ice as coolant in 2020, Rantala reports; but, as demand for the transport of goods packed in dry ice is needed, this figure is likely to increase. Finnair has been working on new processes that will allow it to calculate the exact sublimation rate per aircraft in order to maximise the volume of such goods it can carry and speed up delivery. This calculation will rely on shippers informing the carrier of the exact sublimation rate and volume of dry ice for each shipment. Again, though, some shippers will be new to using dry ice and it may take some time for reports to become sufficiently accurate to allow the approach to be accurate. However, as Rantala says, “Being prepared is always better than being caught off guard.” cargo.finnair.com

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HOLD ON TO DATA SECURITY • LOGISTICS SERVICE PROVIDERS HAVE BECOME USED TO SAFETY PERFORMANCE INDICATORS BUT, AS HOYER SHOWS, THERE IS A GROWING NEED TO BE ALERT TO CYBER-SECURITY THE HOYER GROUP says it had a “highly successful year” in terms of safety performance in 2020, not only exceeding the targets it had set itself to reduce incidents but also receiving above-average ratings in audits under the Safety and Quality Assessment for Sustainability (SQAS) programme and in recertifications under ISO 9001. “Hoyer sets itself high targets and follows a philosophy in which even near misses result in detailed investigation, analysis and appropriate risk prevention measures,” notes Mark Binns, member of the group operating board with SHEQ responsibilities. As a leading provider of international logistics solutions for

when handling and transporting such sensitive goods. That focus has delivered a 54 per cent reduction in the level of serious incidents in non-transport operations and a 30 per cent fall in transport incidents over the past ten years. “The complexity of the logistics business, the spectrum of processes and the number of different interfaces in an international network like ours represent a special challenge,” comments CEO Björn Schniederkötter. “Uniform standards and systems of operation designed to maintain and continuously improve the safe and secure actions of all employees are fundamental.”

liquid products of the chemical, gas, petroleum and food industries, the company attaches particular importance to safety and security

EYES ON THE SYSTEMS During 2020, however, the usual safety audits and recertifications were joined by a new task: achieving certification for Hoyer’s information security management system (ISMS) according to the ISO/IEC 27001 standard. Dr Peter Jürging, head of information technology at Hoyer

 CYBER-SECURITY IS AN INCREASINGLY IMPORTANT ELEMENT IN OVERALL SAFETY AT HOYER

Group, explains: “Hoyer [through ISMS] proactively addresses the constantly changing security-relevant challenges of global networking, driven by the progress of digitalisation and the associated services.” Jürging’s specific focus is on protecting the confidentiality, availability and immutability (integrity) of information. To attain these protective goals, Hoyer carries out regular risk analyses, from which it derives and implements measures appropriate to the current threats, helping to protect and maximise business continuity. IT security management is technologically and organisationally implemented throughout the entire Hoyer Group worldwide. “Auditing of the information security management systems in accordance with ISO/IEC 27001 concluded with an excellent result, and confirms the high security and quality standard of the Hoyer Group,” the company states. That level of performance is the benchmark for the group, which consistently out-performs its peers across industry. In its latest SQAS verifications, it came out well ahead of average in chemical transport, gas transport, workshops, tank cleaning and depot services and on-site logistics. In the mineral oil business, its customers carry out their own audits and in international foodstuff logistics it has achieved recertification to ISO 22000, illustrating its commitment to food safety and security. “The Hoyer Group achieves very good ISO 9001 certification attestations in a global context and inspires confidence with various best practices,” the company states. “Among other things, the speed and quality of the response by top management to the Covid-19 pandemic, the company’s exemplary internal management, the dealings with partners as well as service providers during the crisis and the intensive internal audits were recognised in the past certification cycle.” In addition, Hoyer says, ISO auditors particularly emphasised the IT department’s systematic procedure and the implementation and safeguarding of very high IT-related security standards in relation to the progressive digitisation of the company and its assets. www.hoyer-group.com

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LAST CHANCE SALOON MULTIMODAL • WITH THE SUMMER MEETING HAVING BEEN A CASUALTY OF COVID-19 RESTRICTIONS, THE UN EXPERTS HAD A LOT TO CATCH UP ON AT THEIR LAST SESSION OF THE BIENNIUM

Organisation (IMO), the World Health Organisation (WHO) and 28 nongovernmental organisations. The meeting began by reviewing the draft amendments adopted at the 55th and 56th sessions, which were all confirmed, including those that had been left in square brackets.

THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 57th session, the last of the 2019/2020 biennium, this past 30 November to 8 December under the chairmanship of Duane Pfund (US), with Claude Pfauvadel (France) as vice-chair. In view of the continuing travel restrictions resulting from the Covid-19 pandemic, the session took place virtually, with only the chair and vice-chair, along with secretary Romain Hubert present in Geneva. The session also had to contend with a shortage of interpreters, which are necessary to allow

devoted to discussion and the afternoons to formal approvals. Given that the planned summer session had been postponed, there was a lot to get done, although there had been a lot of discussion via an online workspace and in the event many decisions were reached, which will appear in the 22nd revised edition of the UN Model Regulations, due for publication later this year. Some decisions also affect the Manual of Tests and Criteria. The virtual meeting was attended by representatives of 23 countries and observers from Latvia, Luxembourg,

START WITH CLASS 1 As is traditional, the meeting began by reviewing the report of the ongoing labours of the Working Group on Explosives, which had held a virtual meeting in mid-November. It was noted that the Working Group had decided to defer its review of test series 6 to the next biennium and that the Institute of Makers of Explosives (IME) had agreed to prepare an official proposal on the potential improvement of test series 8 for consideration at a forthcoming session. The Working Group had, though, made a lot of headway with its long-running review of the tests in parts I, II and III of the Manual of Tests and Criteria, which aims to remove

the Sub-committee to agree decisions, as a result of which the mornings were

Romania, and Turkey. Also in attendance were representatives of the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the Food and Agriculture Organisation (FAO), the International Civil Aviation Organisation (ICAO), the International Maritime

unnecessarily detailed descriptions and over-specification of non-critical materials. That work had over the past two biennia moved onto a review of Test Series H and a lengthy proposal was now made for a complete revision of Section 28, which was agreed and adopted by the Sub-committee.

 THE PALAIS DES NATIONS HAS BEEN SHORT OF VISITORS DURING THE PANDEMIC

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Test Series H covers the determination of self-accelerating decomposition temperature (SADT) and self-accelerating polymerisation temperature (SAPT) so it is critical in the proper classification of self-polymerising substances, the provisions for which have in recent years been expanded and tightened. The revision of Test Series H will therefore be useful for those shipping such materials, who may previously not have had to wrestle with the details in the Manual. The UK had put forward two papers dealing with the packaging of shaped charges (UN 0059, 0439, 0440 and 0441) that included four proposals. There was a healthy discussion of the issues and it was noted that shaped charges are often packed in pairs, in opposite orientation, so the use of orientation arrows on the package is unnecessary. It is evident, though, that industry uses particular packagings designed to maintain the orientation of the shaped charges, and it was thought that some further review of the language used in the relevant special packing provision (PP70) in packing instruction P137. In the meantime, it was agreed to amend the first sentence of PP70 by stating that, when packed singly, packages shall be marked as illustrated in figures 5.2.3 or 5.2.4,

rather than in accordance with 5.2.1.7.1. China had identified what it saw as some deficiencies in the diagram in Figure 33.2.4.1 in the Manual of Tests and Criteria, which illustrates the mould for the burning rate test. After discussion, along with a small amendment to the preceding text, the proposed improved figure was adopted. LISTING, CLASSIFICATION AND PACKAGING South Korea and the European Chemical Industry Council (Cefic), in a joint paper, raised a problem that arose from a new provision added in the 20th revised edition of the UN Model Regulations in packing instruction IBC520 and portable tank instruction T23, which deal with formulations of self-reactive substances and organic peroxides. The joint paper noted that some formulations are included in the lists for packagings in 2.4.2.3.2.3 and 2.5.3.2.4 and in IBC520 and T23, while some are only listed in either IBC520 and/or T23. This may lead to confusion regarding the selection of the control and emergency temperatures. The Sub-committee agreed that clarification was needed and accepted the proposed changes. In the first sentence of both 2.4.2.3.2.3 and 2.5.3.2.4, the opening “The formulations listed in

packing instruction IBC520 … and in portable tank instruction T23…” becomes “The formulations not listed in this provision but listed in packing instruction IBC520 … and in portable tank instruction T23…”. Similarly, in the second sentence (third row) of IBC520 in 4.1.4.2, and in the last sentence of the paragraph under the heading in T23 in 4.2.5.2.6, “The formulations listed below…” is changed to “The formulations not listed in 2.4.2.3.2.3 and 2.5.3.2.4 but listed below…”. South Korea also returned with a paper proposing to revise the hazard profiles of three entries, UN 2248, 2264 and 2357 (covering certain amines) on the basis of revised data established by the Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection (GESAMP). The paper included evidence of extensive research using a wide variety of sources. It concluded with recommendations to change the class for UN 2248 from 8 (3) to 6.1 (3,8); and for UN 2264 and 2357 from 8 (3) to 8 (3, 6.1). For UN 2248 there were also proposed changes to the LQ and EQ quantities and the portable tank instructions and special provisions. There was a difference of opinion among the experts in the Sub-committee, with several feeling that yet more data and discussion are needed. The South Korean expert withdrew the proposal, promising to work with other delegations and to come back with a revised proposal during the next biennium. In a similar vein, Belgium followed up on its informal document that had been discussed at the previous session, which noted that scientific data indicates that the current classification of UN 1891 Ethyl bromide does not fully reflect its hazards. It is currently assigned to Division 6.1, PG II, but different data sources point to its primary hazard being flammability, which is reflected in its classification according to the EU’s Classification, Labelling and Packaging of Chemicals (CLP) Regulation. Following a discussion, the Sub-committee agreed and amended the entry for UN 1891 in the Dangerous Goods List, assigning it to Class 3

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with a Division 6.1 subsidiary hazard. In addition, in column (7a), “100 ml” is replaced by “1 L” and in column (7b) “E4” is replaced by “E2”. The European Industrial Gases Association (EIGA) sought clarification of the scope of UN 1002 Air, compressed. Some of the Association’s members have found that this is being interpreted to mean that it only applies to compressed atmospheric air. There was formerly a special provision (SP 292) in the Model Regulations that made it clear that UN 1002 could apply to mixtures containing not more than 23.5 per cent oxygen by volume, which EIGA referred to as ‘synthetic air’. EIGA also noted that synthetic air, with up to 23.5 per cent oxygen and the rest nitrogen, is used in a variety of applications, not just in the medical field. Sometimes ambient air is not suitable for compression due to atmospheric contaminants. It would therefore be useful if a version of SP 292 could be reinstated so as to avoid confusion. The Sub-committee agreed and adopted a new SP 397: Mixtures of nitrogen and oxygen containing not less than 19.5% and not more than 23.5% oxygen by volume may be transported under this entry

“THE DECISIONS REACHED WILL APPEAR IN THE 22ND REVISED EDITION OF THE MODEL REGULATIONS”

when no other oxidizing gases are present. A Division 5.1 subsidiary hazard label is not required for any concentrations within this limit. In the Dangerous Goods List, “397” is added in column (6) against UN 1002. Germany sought a change to special provision SP 225, dealing with the transport of fire extinguishers, to clarify that it applies equally to portable fire extinguishers that are being transported without the components (such as hoses, nozzles, etc) necessary for them to function properly. In practice, new portable fire extinguishers are often shipped without those components attached, in order to minimise the packaging required, and portable fire extinguishers being shipped for maintenance or inspection usually have the equipment disconnected and left at the original premises. If portable fire extinguishers in such condition cannot be shipped under UN 1044, SP 225, then they would have to be classified as a gas cylinder or “chemical under pressure” and comply fully with the provisions of Chapter 6.2. The Sub-committee agreed with the argument and adopted a new Note to be inserted after (a) in SP 225: This entry applies to portable fire extinguishers, even if some components that are necessary for their proper functioning (e.g. hoses and

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nozzles) are temporarily detached, as long as the safety of the pressurized extinguishing agent containers is not compromised and the fire extinguishers continue to be identified as a portable fire extinguisher. Cefic proposed introducing a new entry in the table of self-reactive substances for (7-Methoxy-5-methyl-benzothiophen-2-yl) boronic acid, a newly developed active pharmaceutical ingredient. This is being sourced from several countries and, while the German competent authorities have issued a temporary approval for its transport under UN 3230 Self-reactive solid, Type F, a permanent solution is needed. Cefic backed up its paper with extensive test data. The Sub-committee agreed with Cefic, adding the substance to the table in 2.4.2.3.2.3, with concentration of 88 to 100 per cent, packing method OP 7 and a new remark to specify that it may contain up to 12 per cent water and up to 1 per cent organic impurities. In a similar vein, Japan proposed the inclusion of two new organic peroxide formulations in the list in 2.5.3.2.4. The two formulations, tert-butylperoxy isopropylcarbonate and tert-hexyl peroxypivalate, have already been granted competent authority approval for maritime transport and, indeed, have been transported from Japan to other countries in Asia for more than 15 years without incident. The Sub-committee agreed with the paper and adopted the two new entries. Spain asked for some consequential amendments following the introduction in the 20th revised edition of the Model Regulations of the requirement for the words ‘TEMPERATURE CONTROLLED’ to be included as part of the proper shipping name, if it not already, when temperature control is used for stabilisation. This now appears in 3.1.2.6(b) but, Spain argued, reference should

 IT WAS AGREED THAT ‘COMPRESSED AIR’ NEED NOT BE ACTUAL AIR

REGULATIONS 53

also be made in 5.4.1.5.4. It had brought up the issue in an informal paper at the last session of the Sub-committee, along with a parallel proposal for ‘MOLTEN’. Spain was partly successful, though not all its proposals met the experts’ liking. For now, at least, the Sub-committee adopted the following. In 5.4.1.5.4, “If the word “STABILIZED” is part of…” is replaced by “If the words “TEMPERATURE CONTROLLED” are part of…”; “when stabilization is by means of temperature control” is deleted. In 5.4.1.4.3, after (c), a new (d) is inserted: Molten substances: When a substance, which is solid in accordance with the definition in 1.2.1, is offered for transport in the molten state, the qualifying word “MOLTEN” shall be added as part of the proper shipping name, unless it is already part of the proper shipping name (see 3.1.2.5); The existing (d) becomes (e) and a new (f) is added at the end: Stabilized and temperature controlled substances: Unless already part of the proper shipping name the word “STABILIZED” shall be added to the proper shipping

“STABILIZED”” is replaced by “the words “TEMPERATURE CONTROLLED””. Germany sought to complete the work it had started in 2010 on the use of salvage pressure receptacles. Provisions were originally adopted, limiting the water capacity of salvage pressure receptacles to 1,000 litres as a compromise to address some concerns; in 2014 this limit was raised to 3,000 litres. Since then, product innovation has led to the average volume of composite tubes increasing, as well as their design pressure. This has made the selection of salvage pressure receptacles problematic and Germany’s paper included three specific proposals to impose a limit on the test pressure and remove the limit on the volume of the salvage pressure receptacle. On the basis of discussion, two of the three proposals were withdrawn pending further investigation. For the time being, the Sub-committee agreed changes to 4.1.1.19.2, deleting the second sentence (“The maximum size of the placed pressure receptable is limited to a water capacity of 1 000 litres”) and to change “1 000” to “3 000” in the fourth sentence.

name if stabilization is used and the words “TEMPERATURE CONTROLLED” shall be added to the proper shipping name if stabilization is by temperature control or a combination of chemical stabilization and temperature control (see 3.1.2.6). In addition, in 7.1.5.3.2(a), “the word

The Responsible Packaging Management Association of Southern Africa (RPMASA) and the International Confederation of Plastics Packaging Manufacturers (ICPP) returned to their plea for a new UN number for cobalt dihydroxide powder. This product was formerly shipped under UN 3077

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Environmentally hazardous solid, nos, Class 9, PG III, but testing in Europe had led to it being reassigned as a toxic by inhalation solid, Category 1, Class 6.1, PG I, for which there is currently no UN number. The product has been safely transported for the past 40 years in flexible intermediate bulk containers (FIBCs) meeting the PG III standard. The paper also expressed concern that similar changes might befall other fine powders. The joint paper included proposals for a new entry in the Dangerous Goods List, a new special provision, a new special packing provision in IBC07, and new wording in the Guiding Principles. These proposals were considered by the Sub-committee, which adopted some of them. There will be a new entry, UN 3550 Cobalt dihydroxide powder, containing not less than 10% respirable particles, 6.1, PG 1. This is assigned to packing instructions P002 and IBC07, the latter having special packing provisions B1 and B20, and portable tank instruction T6 with special provision TP33. The new B20 under IBC07 in 4.1.4.2 reads: UN 3550 may be transported in flexible IBCs (13H3 or 13H4) with siftproof liners to prevent any egress of dust during transport. The Sub-committee invited RPMASA and ICPP to work further on the testing provisions

but is currently only applied to liquids. Its discussion paper offered a revised and expanded SP 354 that would make it clearer. Following comments received from the experts, delegates were invited to send written comments so that the Netherlands can submit a revised proposal for the next session. Belgium sought some changes to packing instruction P621, which applies to clinical and medical waste assigned to UN 3291. While most medical waste packagings have openings that exceed 7 cm in diameter and are therefore by definition ‘removable head’ type packagings, some smaller containers, such as those for used needles, may have smaller openings and fall under the category of ‘non-removable head’ packagings. At present, P621(2) only allows non-removable head packagings for packages where there is insufficient absorbent material to absorb the entire amount of liquid present; Belgium felt these packagings should also be allowed in P621(1). The Sub-committee agreed with the argument and added drums of 1A1, 1B1, 1N1 and 1H1 and jerricans of 3A1, 3B1 and 3H1 to the list of permitted packagings in P621(1). China had spotted that a change adopted in 2002 that separated the UN entry for toxins extracted from living sources in two,

for flexible IBCs in Chapter 6.5 and the amendments to the Guiding Principles. Meanwhile, the Netherlands had also been looking into the topic, and specifically whether special provision 354 should be assigned to UN 3550; this merely states that the substance is toxic by inhalation

for liquids (UN 3172) and solids (UN 3462), had not been fully followed through. The note under the heading of Chapter 6.2 refers only to UN 3172 and the Sub-committee agreed to add “or UN 3462” at the end. China had also spotted that UN 3208 Metallic substance, water-reactive, nos

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has ‘E0’ in column (7b) of the Dangerous Goods List, whereas all other water-reactive entries (all of Division 4.3, PG II) have ‘E2’. It felt this was an error, not least since the ICAO Technical Instructions have ‘E2’. Again, the Sub-committee agreed and made the requested change. For its part, ICAO noted that the disparity arose from a typographical error and that the original paper referred erroneously to UN 3209 Metallic substances, water-reactive, self-heating, nos, which does have ‘E2’. This too is an error, ICAO said, and should be ‘E0’. Again, the argument was adopted by the Sub-committee. The UK reported that it had been advised by the International Standardisation Organisation (ISO) that a revised version of standard ISO 16106, Packaging – Transport packages for dangerous goods – Dangerous goods packagings, intermediate bulk containers (IBCs) and large packagings – Guidelines for the application of ISO 9001, had been issued. There are four references to this standard in the Model Regulations and it was agreed that reference to the 2006 edition should be amended to the new, 2020 edition. This affects 6.1.1.4, 6.3.2.2, 6.5.4.1 and 6.6.1.2. The UK had done some work on the new special provision 396, adopted at the previous session on the basis of a paper from Germany and relating to the transport of transformers with gas cylinders. The UK felt that the use of this “articles containing dangerous goods of Class 2” entry for transformers with gas cylinders did not match the intention of the entry; furthermore, it was accepted that the adoption had been rather hurried and that delegates had not had enough time to consult on the proposal. While the UK expressed the view that the new special provision will introduce unnecessary interference into an area that has operated without incident for many years, it also acknowledged the

 MORE AMENDMENTS WERE ADOPTED ON THE TESTING AND TRANSPORT OF LITHIUM BATTERIES

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potential issue identified by Germany. Its paper offered two alternatives to clarify the intent of the entry and the applicability of the special provision. However, after discussion neither proposed amendment received the support of the Sub-committee; the UK volunteered to submit a revised proposal for the next session, taking into account the comments made. Three papers were deferred to the next session, including an informal document from China on a possible amendment to special provision 142; a correction to packing instruction P200 as regards UN 2189, put forward by EIGA; and revisions to special provision 301 proposed by the International Air Transport Association (IATA), which was endorsed in principle but was deemed to require further work. BATTERIES AND SUCH Scarcely a regulatory meeting goes by without yet more changes being proposed to the regulations covering the transport of lithium batteries, and the Sub-committee’s last session was no exception, although other energy storage technologies are also being addressed. A joint paper from the European Association for Advanced Rechargeable Batteries (Recharge), the International Organisation of Motor Vehicle Manufacturers (OICA), the Rechargeable Battery Association (PRBA) and the Council on Safe Transportation of

Hazardous Articles (COSTHA) followed up on discussions at the previous two sessions to clarify that the hazards in the case of the transport of multiple batteries as per the large packaging provision LP906 could be controlled and verified during the packaging verification test, as specified by the competent authority. The four bodies now attempted to address concerns that had been raised, with revised proposals for amendments to LP906 and to packing instruction P911. After some further changes on the basis of discussion, these were adopted by the Sub-committee. To start with, a new indent (i) is added in note a to P911: In the case of multiple batteries and multiple items of equipment containing batteries, additional requirements such as the maximum number of batteries and items of equipment, the total maximum energy content of the batteries, and the configuration inside the package, including separations and protections of the parts, shall be considered. In LP906, the third sentence is amended to read: “For batteries and items of equipment containing batteries:”. The second paragraph under (2) is amended to read: A verification report shall be made available on request. As a minimum requirement, the name of the batteries, their type as defined in Section 38.3.2.3 of the Manual of Tests and Criteria, the maximum number of batteries, the total mass of batteries, the total energy content of the batteries, the large packaging identification

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and the test data according to the verification method as specified by the competent authority shall be listed in the verification report. A set of specific instructions describing the way to use the package shall also be part of the verification report. A new indent (4) is added: The specific instructions for use of the package shall be made available by the packaging manufacturers and subsequent distributors to the consignor. They shall include at least the identification of the batteries and items of equipment that may be contained inside the packaging, the maximum number of batteries contained in the package and the maximum total of the batteries energy content, as well as the configuration inside the package, including the separations and protections used during the performance verification test. At the end of note a, a new indent (i) is added, identical to that mentioned above for P911.

Two further joint papers brought to the Sub-committee’s attention the problems that are being experienced by industry in the application of the recently adopted requirement that cell and battery manufacturers and downstream distributors must make available a Test Summary, as specified in sub-section 38.3 of the Manual of Tests and Criteria. The paper’s authors, the Medical Device Battery Transport Council (MDBTC), the Dangerous Goods Advisory Council (DGAC), PRBA, COSTHA, Recharge, the Sporting Arms & Ammunition Manufacturers’ Institute (SAAMI) and the Dangerous Goods Trainers Association (DGTA), described what they termed “unanticipated challenges” in complying with the requirements. Including an extensive explanation, the paper offered some suggestions for easing the burden of compliance and overcoming some of the

difficulties, while maintaining the intent of the requirement. There was clearly some disagreement among the delegates, with only part of the proposal being adopted and that on the basis of a majority. For now at least, the amendment is limited to the first part of 2.9.4(g), which will begin “Except for button cells installed in equipment (including circuit boards), manufacturers…”. In addition, in the Manual of Tests and Criteria, 38.3.5(j) is amended to read: Name and title of responsible person as an indication of the validity of information provided. The Sub-Committee confirmed that type testing requirements apply for button cell designs. Furthermore, it confirmed that the test summary should be publicly available (for instance, via the cell/battery manufacture’s website) but it is not mandatory that it should accompany the transport document. IATA followed up on its informal document presented at the previous session, which opened a discussion as to whether consignors of lithium cells and batteries, that are not the manufacturer, need to have evidence of the manufacturer’s quality management system. It had seemed on the basis of that discussion that there is no requirement for the manufacturer to provide that evidence to any party other than the competent authority. IATA now suggested that 2.9.4 should be revised so as to separate reference to the quality management system from other classification aspects. Although the Sub-Committee agreed that it is not compulsory to add a copy of the quality management programme to the transport documents, IATA’s approach to clarify the issue did not gain full support. Some delegations suggested that a simpler approach, for instance, by the addition of a Note, would be more appropriate.

 THERE WILL NO LONGER NEED TO BE A TELEPHONE NUMBER INDICATED ON THE LITHIUM BATTERY MARK

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PRBA and Recharge came back with a formal proposal following discussion at the previous session of packing instruction P903 and the use of packagings with a net mass exceeding 400 kg, an issue that has been causing some confusion among freight forwarders, vessel operators and even competent authorities. The authors’ argument had been largely accepted at the previous session so, on a majority, the Sub-committee agreed to make some changes. A new final sentence is added to 4.1.3.3: Where packagings which need not meet the requirements of 4.1.1.3 (e.g., crates, pallets, etc.) are authorized in a packing instruction or the special provisions named in the dangerous goods list, these packages are not subject to the mass or volume limits generally applicable to packagings conforming to the requirements of Chapter 6.1, unless otherwise indicated in the relevant packing instruction or special provision. In addition, a new Note is added to all the relevant packing instructions (P003, PP32; P004(2) and (3); P005; P006(2); P130, PP67; P144, PP77; P408(2); P801(1) and (2); P905; P906(2); P907; P909(3) and (4); and P910(3)), reading: NOTE: The packagings authorized may exceed a net mass of 400 kg (see 4.1.3.3). Similar text is added in P903, after (5), specifying that the relevant packagings are authorised in (2), (4) and (5). PRBA and Recharge also arrived with a formal proposal to remove the phone number requirement from the lithium battery mark, as had already been agreed. The changes were adopted by the Sub-committee, meaning that the Figure at 5.2.5 will no longer show the double asterisk (**) on the lithium battery mark, nor refer to this underneath the image. In addition, a Note is added at the end of 5.2.1.9.2 to permit the use of the mark as shown in the 21st revised edition of the Model Regulations until the end of 2026, to allow for stocks of pre-printed labels to be used. The Sub-committee remarked that, if needed, this transitional provision could be subsequently revised.

“THE LITHIUM BATTERY TEST SUMMARY SHOULD BE PUBLICLY AVAILABLE BUT DOES NOT HAVE TO ACCOMPANY THE TRANSPORT DOCUMENT”

France and the UK offered proposals to introduce new provisions for sodium ion batteries in both the Model Regulations and Manual of Tests and Criteria. While many delegations supported the principle of adding new provisions along the same lines as those already in place for lithium batteries, others felt it was premature to adopt the proposals at this point. It was agreed to defer discussion until the next biennium. KiloFarad International contributed a paper arguing that low energy density sodium ion cells do not pose any safety risks that could justify their regulation under the dangerous goods rules. Again, though, this issue will be held over to the 2021/22 biennium. The second part of this two-part report on the UN Sub-committee of Experts’ November/ December meeting in next month’s HCB will cover other amendments adopted relating to the transport of gases, packaging, portable tanks, global harmonisation and relations with other agencies, as well as some new proposals that will appear in greater depth during the new biennium.

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ALL TANKED OUT

APPROVAL AND VERIFICATION The meeting began with what seemed a fairly straightforward issue raised in a paper from the International Union of Wagon

inspection certificates are often available only weeks after a tank wagon has been inspected, which can lead to costly delays in releasing new tank wagons for operation. While some states supported UIP’s position, saying it reflects current practice, the European Commission pointed out that ERA is responsible for wagon approval, which can only be granted once all the necessary official documents are available. If this were to be relaxed in the case of tank wagons, it would also have to be allowed for other wagons and components. The chair felt that the inspection bodies should be engaged in a dialogue and urged to improve their performance. Discussion then turned to the ongoing deliberations of the RID/ADR/ADN Joint Meeting’s informal working group on the inspection and certification of tanks in respect of entry into service verification (EISV) of tank wagons. This had delivered a proposed text for

Keepers (UIP), seeking the SWG’s opinion as to whether a tank wagon’s initial inspection certificate must be available for the tank wagon to receive approval, or whether the information on the tank plate and an appropriate photographic likeness are sufficient. UIP said it has found that initial

6.8.1.5.5 in RID, which SWG felt was adequate to allay its concerns. The underlying problem is that the provision was developed in response to issues experienced with road tankers entering service but has been expanded into a multimodal provision that does not sit comfortably with rail tank wagons

RAIL • THE RID STANDING WORKING GROUP’S LATEST SESSION WAS DOMINATED BY TANK WAGON AND TANK CONTAINER ISSUES, ESPECIALLY RELATING TO EXTRA-LARGE TANKS THE RID COMMITTEE of Experts’ Standing Working Group (SWG) held its 12th session by video conference this past 24 to 26 November. As is usual, it was chaired by Caroline Bailleux (Belgium) with Othmar Krammer as deputy chairman. The online session was attended by representatives of 20 contracting states, together with Russia (which does not apply RID), the European Commission, the EU Agency for Railways (ERA) and five non-governmental organisations.

 DEVELOPMENT OF EXTRA-LARGE TANK CONTAINERS HAS GIVEN THE RAIL EXPERTS SOMETHING OF A HEADACHE, TRYING TO FIT THEM INTO THE EXISTING REGULATORY FRAMEWORK

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With the 2021 text of RID, the regulations that govern the transport of dangerous goods by rail in most of Europe, having been finalised earlier, the Standing Working Group began the task of developing and agreeing the amendments that will appear in the 2023 edition.

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nor with multimodal tank containers. Furthermore, RID has to take account of the fact that not all contracting states are EU members and, therefore, the underlying legislation is not the same for every country. Several ways were offered to get around these potential conflicts, including additional text for the footnote to 1.8.7.5.3 and an amendment to the note to 6.8.1.5.5. Provisional agreement was reached and those changes have been placed in square brackets pending confirmation and further discussion by the informal working group. As a result, SWG agreed that an optional EISV no longer conflicts with European railway legislation. The chair asked that the outcome of discussions by SWG should be transmitted to the chair of the informal working group. NEW PROPOSALS The Secretariat of the Intergovernmental Organisation for International Carriage by Rail (OTIF), RID’s parent body, asked for SWG’s opinion of the various language versions of the new provisions on the fixing of welded elements in 6.8.2.2.1. This was supported by a comparative document provided by Belgium and a proposal from UIP to align the text for tank wagons with that adopted for tank containers and tank vehicles. UIP also noted that the EN 14025 standard is currently under revision and the new version, scheduled for publication in 2023, will address the question of the fixing of welded elements. It was agreed that the text should be amended to align with that for tank vehicles and tank containers, so the paragraph will begin “Welded elements shall be attached to the shell in such a way that tearing of the shell is prevented”. This establishes the aim of the requirement, without being overly prescriptive. Once the measures described in 6.8.2.2.1 are reflected in the revised version of EN 14025, they can be

The Secretariat also followed up on discussions at the September 2020 Joint Meeting, where it was decided to delete the requirement in 4.3.3.3.2 that the information shown on tank vehicles, battery vehicles, multiple-element gas containers (MEGC) and tank containers should be limited to the gas loaded or just discharged, and that information concerning other gases must be covered up. Belgium proposed that for tank wagons and battery wagons, the current folding panels used to show the name of the gas loaded and the load limits should be retained. Germany and Italy agreed, though they felt 4.3.3.3.2 should be amended. UIP, conversely, felt that all the information could be displayed for several gases in one or more load limit panels and/or on adhesive sheets. Without agreement being reached, UIP was asked to submit a new document for the next session, taking into account the comments made and also questioning whether the existing system really needed to be changed.

The Netherlands and UIP returned to a discussion on dry break couplings that had taken place back in 2013, but had not delivered any amendments, bringing a proposal to add a footnote in 6.8.2.2.2 to confirm that, for such couplings, an ‘open/closed’ indicator is not necessary. The International Union of Railways (UIC) supported the idea in principle but offered a revised text. The Netherlands and UIP were asked to come back with a revised proposal, taking account of UIC’s comments and others made by various delegations. Noting that substances that require temperature control are not accepted for carriage by rail as per 2.2.41.2.3, Germany felt that some clarity was needed over the situation as regards the new collective entries for polymerising substances (UN 3533 and 3534), as these can be stabilised either chemically or by temperature control. Its paper offered a clarification, adding reference to the self-accelerating polymerisation temperature (SAPT) using the model already in place for reference to the self-accelerating decomposition temperature (SADT) for self-reactive substances.

deleted from RID.

 GERMANY TAKES A LEADING ROLE IN THE DISCUSSIONS SURROUNDING THE TRANSPORT OF DANGEROUS GOODS BY RAIL

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The UK supported the idea but also proposed to include these criteria for polymerising substances of Classes 2, 3, 6.1 and 8. There was support for this idea by SWG, which amended the last indent of 2.2.41.2.3 to read: – polymerizing substances in packagings or IBCs with an SAPT ≤ 50 °C and polymerizing substances in tanks with an SAPT ≤ 45 °C, therefore requiring temperature control: UN 3533 POLYMERIZING SUBSTANCE, SOLID, TEMPERATURE CONTROLLED, N.O.S. UN 3534 POLYMERIZING SUBSTANCE, LIQUID, TEMPERATURE CONTROLLED, N.O.S. In addition, the following text is added at the end of 2.2.2.2.1, 2.2.3.2.2, 2.2.61.2.1 and 2.2.8.2.1: If temperature control is required to prevent polymerization of a substance (i.e. for a substance

in a packaging or IBC with an SAPT of 50 °C or less, or in a tank with an SAPT of 45 °C or less) the substance shall not be accepted for carriage. The UK also proposed a consequential amendment in 1.1.4.4.1, which applies to piggyback transport. SWG liked the idea but not the approach and instead adopted a new indent to be inserted after the third indent in 1.1.4.4.1: – polymerizing substances of classes 1 to 8 in packagings or IBCs with an SAPT ≤ 50°C and polymerizing substances in tanks with an SAPT ≤ 45 °C, therefore requiring temperature control. The Secretariat provided a paper summarising the most important discussions at the November session of the Working Party on the Transport of Dangerous Goods (WP15),

SWG’s counterpart for road transport. SWG adopted two of the amendments made by WP15, including a clarification in the transitional provision in 1.6.4.55, which now refers to 6.8.3.4.6 (b) rather than 6.8.3.4.6 in its entirety, and the addition of a new row in 1.1.3.6.3 in the entry for transport category 2 for Class 6.2, UN 3291. Spain explained that it had drafted a multilateral special agreement under ADR to allow low specific activity LSA-III radioactive material to be spared the requirement for the immersion test in 2.2.7.2.3.1.4. If SWG wishes to follow the same route for RID, another state will have to initiate the agreement, as the material is not carried by rail in Spain. The Secretariat also provided a corrigendum to the 2021 text of RID, which it was asked to post on the OTIF website. In the English language edition, there are some updated references to the IAEA Regulations for the Safe Transport of Radioactive Material, and corrections to the references in 5.4.1.1.11, where “6.7.2.19.6(b)” should read “6.7.2.19.6.1(b)” and the same applies to “6.7.3.15.6(b)” and “6.7.4.14.6(b)”. UIC confirmed that the new edition of IRS 40471-3, which is referenced in 1.4.2.2.1 of RID, will contain no changes in point 5, which details the checks to be carried out for consignments of dangerous goods. TANK AND VEHICLE TECHNOLOGY The chair of the working group on tank and vehicle technology, UIP’s Rainer Kogelheide, presented a report of its 18th session, which took place as a video conference on 6 and 7 October. Much of the meeting was taken up with discussion of the new breed of extralarge tank containers developed by BASF, initially for in-plant use at its Ludwigshafen site. These tanks will, however, need to move by road for repair and maintenance purposes, though they will have to do so empty as they will be too heavy for road regulations, and they have been approved for movement by sea.

 THERE WAS DISAGREEMENT OVER THE INFORMATION TO BE SHOWN ON GAS TANK WAGONS

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Germany presented the preliminary results of a risk assessment carried out by its competent authority on behalf of BASF, which is ongoing and will also involve the expertise of the German Centre for Rail Transport Research (DZSF). There was some disagreement about the work, especially as BASF has already undertaken a risk assessment and that the scope of the work seems to be spreading, though Germany stressed that a number of documents had not been provided. Germany also asked whether it would be appropriate to introduce a new definition for extra-large tank containers, especially as operational experience is limited to tank containers with a maximum capacity of 40,000 litres. It was pointed out that extralarge tank containers have already gained approval as intermodal tank containers, although those approved in accordance with the International Maritime Dangerous Goods (IMDG) Code must have thicker walls (4.5 mm plus corrosion allowance). The chair noted that, since these tank containers will be used intermodally, any new definition would have to be discussed by the RID/ADR/ADN Joint Meeting and/or its working group on tanks. The shell wall thickness of extra-large tank containers also came into question. In 6.8.2.1.18, RID prescribes a minimum shell thickness of 4.5 mm for tank wagons and 3.0 mm for tank containers; those extra-large L4BH tanks manufactured by Van Hool have a wall thickness of 3.4 mm and those made by Magyar have a wall thickness of 4.5 mm. The chair of the working group asked whether it was felt that, given the design of extra-large tank containers, they should align with tank containers or, because of their comparable size, with tank wagons. Both Germany and UIP felt it premature to reduce the thickness requirement for extra-large tank containers, though Austria thought they should be considered together with their carrying wagons and others said that both the extra-large tanks and their carrying wagons had undergone the necessary tests. France pointed out that extra-large tank containers cannot be equated with tank wagons purely on the basis of their size, and their construction leads to completely

different stresses in operation. No clear consensus was achieved and research is continuing via DZSF’s investigations. The Joint Meeting will also be involved. Discussion moved on to the need for energy absorption elements and protection against overriding in the case of extra-large tank containers being moved by rail. It was noted that, when special provisions TE22 and TE25 were included in RID for tank wagons, it was decided not to apply them to tank containers due to their smaller size and different construction. But do extra-large tank containers present a different risk that warrants their application? Some felt that, if that were so, it should apply to all tank containers, though it was also pointed out that tank containers do not necessary carry products subject to the provisions of RID. Overall, it was felt that some special provisions should be applied, at least for the carriage of very dangerous substances. However, it was not possible to draw the matter to a conclusion and it will be left on the agenda for the next session

a capacity of more than 40,000 litres. This would help prevent spray escaping from dome covers as a result of liquid surge, which does not appear to be a problem with conventional tank containers. Germany proposed that this should not apply to tanks fitted with surge plates. Others felt the 40,000-litre cut-off was arbitrary. SWG felt it appropriate to adopt a new text in 6.8.2.2.4, relating to tank containers with a capacity of more than 40,000 litres and not divided by surge plates. This remains to be finalised, however. It was also felt that the matter may need to go to the UN Subcommittee of Experts if it were the intention that it apply also to portable tanks. It was also proposed that the provisions of 4.3.2.2.4, which requires tank containers to be either more than 80 per cent or less than 20 per cent full to avoid dangerous surge movements, be dispensed with for rail transport; this proposal followed testing of extra-large tank containers. There is a problem with this proposal, insofar as tank containers are also designed to

of the working group. Very similar discussions took place around the issue of the pressure resistance of manlids on tank containers, started by a proposal from the Joint Meeting’s working group on tanks to require 4-bar manlids to be fitted only on tank containers with

move by road. Further coordination is expected and the proposal may return at a forthcoming session. It was agreed that the acceleration values used in 6.8.2.1.2 and 6.7.2.2.12 are not sufficient for extra-large tank containers. After discussion by the working

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group, Germany and UIP will continue work with the aim of drawing up a proposal for the next session. Similarly, UIC is progressing work on the design of a new mark for carrying wagons fitted with reinforced spigots, which are necessary for the carriage of extra-large tank containers. UIP, meanwhile, is looking at issues in the implementation of the requirements against the over-riding of buffers included in special provisions TE22 and TE25, coming up with a risk-based approach that would apply equally to tank containers and tank wagons. SWG supported the idea in principle, offering some pointers for improving the text. RID/SMGS HARMONISATION Russia submitted a proposal to align the nominal shell thickness of tank wagons in 4.3.2.3.1 of RID with that in 6.8.2.1.18 of Annex 2 to the Agreement on International Goods Transport by Rail (SMGS). It was felt

HCB MONTHLY | MARCH 2021

“THE STANDING WORKING GROUP ADOPTED TWO OF THE AMENDMENTS MADE BY ITS ROAD COUNTERPART, WP15, AT ITS NOVEMBER MEETING”

that the approach used in SMGS provides for unambiguous interpretation, would make it clearer for designers and would increase the service life of tank wagons. SWG welcomed the proposal but it was felt that the provisions in RID already provide a performance-oriented approach that has shown to be effective in practice. It might be better if the other provisions in SMGS were to be addressed as part of the EN 14025 standard. Germany and UIP offered to take up the issue during the current revision of EN 14025. Meanwhile, as the proposal was also of relevance to ADR, Russia was asked to submit a revised proposal to the Joint Meeting. INFORMATION FROM ERA ERA informed the standing working group about the progress being made with the Common Safety Methods for Assessing the Safety Level and the Safety Performance of railway operators (CSM ASLP) at national

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and EU level; this will need to interface with occurrence reporting under ADR. ERA’s draft recommendations were due to be issued for formal consultation on 17 December, with comments due in by 17 March. ERA explained that the reporting model under CSM ASLP has been so designed as to fully align with that already employed under RID, involving an initial simple report to be followed, where necessary, by a detailed report within two months and a report on the occurrence scenario. Operators and authorities – including competent authorities for the transport of dangerous goods – will be entitled to access relevant information. CSM ASLP

 SOME ALIGNMENT IS NECESSARY BETWEEN RID AND ANNEX 2 OF SMGS, WHICH APPLIES IN RUSSIA AND OTHER FORMER EASTERN BLOC STATES

also includes rules for the sharing of data, in accordance with the applicable legislation, and recommends the establishment of an Information Sharing System to control the way the data is shared. It will also set up a Group of Analysts, whose role will be to propose safety-related improvements to the EU rail system, on the basis of the information and data shared through the system. ERA also reported on the work being done on derailment prevention and detection, as prompted by the European Commission’s request set out in the revised Technical Specifications of Interoperability (TSI). A working group is due to issue its final report and proposals by September 2021 following three meetings during 2020. It has already prepared draft requirements to be included in the freight wagon TSI, including three optional sets of requirements on derailment prevention, derailment

detection, and derailment detection and actuation. These may have an impact on the development of digital automatic couplings. It was also noted that the application guide for the freight wagon TSI should refer to 6.8.2.1.2 of RID, in terms of wagon strength. Germany felt that perhaps it would be better for this to be taken out of RID and made into a standalone guide, although ERA explained that this could only provide an interim solution. Belgium offered some additional text, although this will need to be made in a formal presentation, while UIP was of the view that the application guide should also mention the requirements of special provisions TE22 and TE25. The 13th session of the RID Committee of Experts’ standing working group is due to be held from 22 to 26 November 2021.

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64 BACK PAGE

NOT OTHERWISE SPECIFIED FIRE IN THE HOLE Consternation spread around the New York borough of Queens last month after what press reports calls a “series of manhole explosions”. A manhole cover was said to have exploded, though the cover itself is unlikely to have spontaneously combusted – rather, something was amiss under the covers. In any case, a “stubborn” underground fire broke out, followed by flames appearing at a second manhole down the street. Nearby buildings were evacuated after raised levels of carbon monoxide were found, likely seeping from the sewers after the fire. Firefighters said the fires were started as a result of road salt and water mixing with an ageing underground infrastructure. “You got old wires, old infrastructure,” FDNY Chief Brian Deery explained. “Whenever it snows, you got the salt mix with water, it eats away at insulation of wires, it arcs, causes a problem, it exploded.” (Perhaps Chief Deery talks like that, more likely it’s the reporter’s notes speaking.) One local was not so lucky. Heading for his local gym and finding the car park full, he parked on the street, right over the first manhole to “explode” right under the chassis, blowing parts of the car across the street. This sanguine New Yorker was philosophical about the accident, saying “I’m pretty upset but I’m going to try to not ruin my day any more – things happen”. (It also seems unlikely that a New Yorker would say “things happen” but

RUNAWAY BUGGY There were alarming road reports in Oakville, Ontario in January, when someone stole a golf cart from Appleby College and made off along Queen Elizabeth Way, a major highway. Reports suggest that the perpetrator may have felt that, as the highway runs past a number of golf courses, he would not look out of place. He was wrong on that count, though, as the police began getting reports of the buggy heading east at a slow pace. Crews tracked the golf cart down to a nearby shopping mall, where the driver, spotting their approach, fled into the mall. Or rather, he would have done had the doors not been locked as a result of Covid-related restrictions. The thief was easily apprehended and ended up being fined C$5,000 for taking the buggy, with perhaps some extras for being found parked in a disabled access bay at the mall.

we assume his actual words were bowdlerised by the reporter). In fact, Chief Deery credited the car’s position with preventing a worse accident, as it acted as a protective shield that stopped the manhole cover from turning into a deadly projectile.

a temperature commonly experienced in Ontario and, had it been that cold, the spillage may have been easier to collect; however, press photos of the incident show a relatively clear and mild day, meaning the wine would have had to have been washed away (what a waste!).

HCB MONTHLY | MARCH 2021

WINE BY THE TANK The roads in Ontario certainly are interesting; only a few days after the golf cart incident, a road tanker overturned on Highway 401 near Guelph after the driver swerved to avoid an accident ahead of him. The tanker landed on the median, shooting concrete debris across both sides of the road. So far, so standard. However, police reported an “extensive” cleanup operation was underway as the tanker was carrying wine, which was shooting out of the tank in fountains. Wine freezes at around -9˚C (15˚F),

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HCB Magazine March 2021

Articles inside

UN Experts finalise Orange Book changes

Upcoming amendments to RID

The risks of dry ice in air transport

Hoyer addresses cyber-security

ATEX protection with Pyroban

Containing container fires

Midland helps rail responders

Incident Log All at sea

Conference diary

Labelmaster intros 3D learning

Univar progresses transformation

News bulletin – chemical distribution

News bulletin – tanks and logistics

NACD looks to the new administration

Chemion expands container terminal

Dachser enjoys growth in France

Temperature monitoring from Savvy

Suttons upgrades wash bay

Oiltanking, Operail partner in rail

Investor takes big slice of Peacock

Bertschi remains confident

Odfjell sees trouble coming

News bulletin – storage terminals

Vopak takes steps for the future

Implico takes automation to Latin America

ILTA ready to work with Biden

Rotork joins E+H programme

VOLUME 42 • NUMBER

US terminals see recovery

Letter from the editor

30 Years Ago

Learning by Training