HCB Magazine May 2018

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MONTHLY THE INFORMATION SOURCE FOR THE INTERNATIONAL DANGEROUS GOODS PROFESSIONAL SINCE 1980 MAY 2018  THE LATEST CHANGES TO THE ORANGE BOOK  BLOCKCHAIN COMES TO THE SUPPLY CHAIN  PACKAGING FROM RECYCLED PLASTICS RACK AND ROLL TOOLS FOR OPTIMISING TANK STORAGE OPERATIONS

EDITOR’S LETTER

Much of the little I understand about engineering I learned as a boy. There was the bicycle that was customised, with all manner of widgets and go-faster stripes added – until I realised all that extra weight was holding me back and I stripped it down to the bare bones.

When I was a little older my dad would get me to help him with the car (an Austin A30); there was always oil to be changed, spark plugs to be adjusted, the radiator to be repaired, and so on and on every Sunday morning. We changed a wing panel once, then had to drill into it to fix a mirror (note to whipper-snappers: wing mirrors didn’t come as standard in the 1960s).

The first car I owned myself had some nasty habits. A rear door would fly open if I took a corner too fast, and I had to be careful not to drive through puddles, as water would shoot through the hole in the floor and shower any passenger. My next car, an old Datsun, taught me a lot about autoelectrics – and not in a good way. I even had to hot-wire it for a while when the steering wheel lock broke.

Spool forward to the 2010s. When I picked up my latest car from the dealer I asked to look under the bonnet (aka ‘hood’); the salesman told me there was no point: if anything goes wrong, the car will let me know. All I have to do is top up the screen wash.

Even this seems like old technology, especially now I’ve taken a couple of rides in all-electric Tesla cars. It’s only legislation (and insurance issues) that are holding them back from being

totally autonomous. You can sit in it, tell it where to go and, as long as it knows you’re still awake, it will get you there.

That’s the future, and it’s inevitable. There’s no point in worrying about how it works – you would have to study for a long time to figure it all out. And possibly not even then: Tesla cars learn from each other while the owner is asleep. Fortunately, auto-electrics (and electronics) has moved on a long way since my Datsun days.

Last year we wrote a lot about Industry 4.0 and how it will impact the logistics sector. This year we are beginning to see its proponents drilling down and explaining how it will all work – and it seems it all relies on blockchain concepts. I’m guessing that most of you only know blockchain (if you know it at all) through Bitcoin. You may have read something on it or had it explained to you. But unless you are completely IT-literate, those explanations may have gone mostly over your head.

I’m not going to attempt an explanation, seeing as I don’t really understand blockchain either. But that’s the point about the future: you don’t need to know how it works, you just have to trust that it does. Don’t bother looking under the bonnet –there’s nothing to see except ones and zeros.

It’s time to accept that machines are now smarter than you, and getting smarter. They are also smarter than your competitors. Embrace the future – before the future renders you redundant.

UP FRONT 01 WWW.HCBLIVE.COM

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CONTENTS

VOLUME 39 • NUMBER 05

UP FRONT

Letter from the Editor 01

The View from the Porch Swing 04 Learning by Training 06 30 Years Ago 07

TERMINAL EQUIPMENT

Showcasing innovation

New and interesting at StocExpo 08 View from the Top

Mercon CEO Henk Meijer 14 Nose for a deal

The Sniffers acquired by WTS 16 Safety first

The role of Ergil’s equipment 18

Latest and greatest Pin Oak picks Emerson software 20

A price on knowledge

Implico dovetails with SAP 23

News bulletin – storage terminals 24

TANKS & LOGISTICS

On your blocks

What blockchain will do for you 26

Right place, right time

ITCO out in force in Shanghai 28 Tool for the job

Blackmer advises on compressor choice 30

A proud partnership

Kässbohrer the pick for Autamarocchi 32

Tomorrow’s train set

VTG works on a better wagon 34

Tanks for Tata tar

AV Dawson realises intermodal option 35 Talk of the town

Open wide

H Essers building chemical hub 45 African adventures

Orkila expands out of Lebanon 46 Open a door, close a book

IMCD plans next growth phase 47

INDUSTRIAL PACKAGING

Triple whammy

ICS makes more acquisitions 48 Drums reborn

Greif makes use of post-consumer polymer 50 Mauser goes shopping

Buying production and reconditioning capacity 51 News bulletin – industrial packaging 52

COURSES & CONFERENCES

Training courses 54 Conference diary

SAFETY Incident Log 58 Pharma forks Be aware of ATEX changes

REGULATIONS

The new orange UN experts get busy 62 Fly by wireless IATA gets digitised

THE BACK PAGE

Not otherwise specified 72

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

ISSN 2059-5735

APC gets applicators together 36

Single-minded

Imperial now under one banner 38

Delivering space

Delsol adds to warehouse capacity 40

News bulletin – tanks and logistics 41

CHEMICAL DISTRIBUTION

Leaner and fitter

Brenntag sweats acquired businesses 44

NEXT MONTH

Annual survey of tank terminal expansion

Chemical distribution in Europe What’s new in road tankers Where next with GHS

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FROM THE PORCH SWING

I DON’T HAVE AN ACCENT – BUT YOU MIGHT

If you spoke exactly the way I do, and if you always spoke clearly and slowly, and if I always listened with my full attention, I’d probably understand everything you say, every word. And understanding what you say, I’d have a better chance to understand your intent and underlying meaning, and be more likely to take an appropriate response. If I misunderstood what you said, I might do something inappropriate, maybe even non-compliant and/ or unsafe. And small differences in words can lead to these kinds of problems.

For example, the words “expired” and “expended” are quite similar. They start the same, go for about the same length, and end the same. Yet, they are also quite different in meaning.

Why you fly as a passenger on a commercial airline, you probably have to listen to a safety briefing at the start of each flight. “In the event of a sudden loss in cabin pressure, an overhead compartment will open up and drop an oxygen mask on you…”, or something like that. The flight attendant probably holds up a clear, plastic, flexible tube with a yellow cup and elastic strap on one end and explains how

to use it. If one of those drops in your lap or on your head, or even just dangles enticingly in front of you, you are to put the cup over your face, the strap around your head, and breathe wonderful, life-giving oxygen.

Did you ever wonder what’s at the other end of that clear plastic tube? I used to think there were cylinders of gaseous oxygen up there above me, maybe one small one for each passenger, or maybe bigger ones with lots of tubes coming out of each. But that’s not how it works. At the hidden end of the tube is almost always a cylinder-shaped device that is NOT a gas-containing cylinder, but is a chemical oxygen generator. When triggered, chemicals inside the generator react, releasing large quantities of gaseous oxygen which gets forced through the tube to the passenger. As a by-product of the chemical reaction, a huge amount of heat is also created, so the chemical oxygen generators are usually surrounded by insulation up there in the ceiling of the airplane. After the release of the oxygen and heat, the device becomes inert, with all its potential dangers expended.

As a frequent flyer, I’m glad to know that I’ll get oxygen when I need it. However, over time, a small percentage of the chemical oxygen generators won’t work when triggered. If I’m on a plane with 200 passengers and only 99 per cent of the oxygen generators work, then there’s a chance that I’d be one of the two passengers without oxygen. I don’t really like those odds, when the outcome is that I might die of lack of oxygen. Fortunately, when the oxygen generators get too old, they expire, and get replaced with a fresh batch.

If asked to prepare a shipment of oxygen generators that can’t be used any longer, it might be important to know whether they are expended or expired. If they’re expended, there’s no capability to release oxygen and no capability to release heat, so they could be safely tossed loosely into boxes or bins and then moved. But, if they’re only expired, then a very large percentage of them could still release lots of oxygen and lots of heat, which risks a catastrophic fire, and so each individual one needs to be fitted with a cap to prevent accidental activation, and secured against

HCB MONTHLY | MAY 2018 04

movement so those caps can’t come off, and so on, as a Dangerous Good (DG, HazMat).

Imagine what might happen if someone thought a load of expired oxygen generators were expended. They might just toss these dangerous articles into a container on an airplane with no protection against them going off unexpectedly, perhaps in the jostling, shaking, change of position, and vibration of takeoff. All because of the difference between “expired” and “expended”. Unfortunately, we don’t have to imagine this, because it happened, and 110 people died as a consequence.

Now that it’s clear from this extreme example that small differences in words can have significant effects, I’d like to address a different pair of similar words whose differences can have a much smaller set of negative effects. Please do understand that I am NOT implying that what I’m about to discuss is anywhere near the gravity or importance of the horrific incident that was the ValuJet crash.

A lesser-scale example of the potential issues that can be caused by differences between similar words involves “certificate” and “certification”. And maybe, possibly, discussion of these differences may help with consideration of CBT-A issues.

So, what is the difference between certificate and certification, and why should anyone outside the USA care? A certificate is pretty piece of paper that says someone took a course and passed. The information covered in the course may or may not have anything at all to do with what the trainee does in their employment. A certification is a statement by an employer that an employee has been properly trained in something directly relevant to what that employee does at work. A certificate is suitable for framing and proud display, while a certification statement is an innocuous looking small part of a training record that may be stored in a file drawer out of sight.

When I complete a training course, I usually provide both a certificate, and, a training record with an appropriate certification. I sign both of them. Yet, neither of have any regulatory value. But on the training record with the certification, I provide a place for the employer

to sign. The employer signs to certify that the training was appropriate and sufficient for some of the employee’s job responsibilities and only then does that document gain regulatory value. And yes, an employee can represent her/his employer and sign her/his own training record, but even in this case the employer is certifying the training as relevant. So what?

Two quick notes: the fancy display certificate is often mistaken for a compliant training record which gets some people into trouble, and second, if the employer designates the trainer as an “agent”, then the trainer could legally sign the certification statement on behalf of the employer. And third, technically, if it includes all the required information, especially but not restricted to the certification statement, one piece of paper can be both certificate and certification. The main point is that whatever a trainer teaches is irrelevant from a compliance perspective until the employer determines, in writing, that the training was appropriate, meaning both applicable and effective.

I asked, “so what?”.

One reason that PHMSA, the folks that write the DG/HazMat regulations for the Department of Transportation in the USA, haven’t been full-scale contributors to the various ongoing Competency Based Training and Assessment (CBT-A or CBAT) discussions is that they believe determining the competency of trained employees at work isn’t the regulators’ responsibility. At the risk of putting words in their mouths, they believe the certification requirements already in the US regulations put that responsibility in the laps of the employers.

As at least one CBT-A proposal gets modified, the term “competent employee” has entered the considerations. Defining what a competent employee is, and measuring that competence, however, is not simple for a regulator when considering all the possible various permutations of DG functions, products, sizes, containment options, modes, exceptions, uses, and locations.

But what if the other regulators took the US approach, perhaps by creating a short definition for competent employee, and then

putting the responsibility for creating and maintaining competence in an employee squarely and unambiguously in the hands of the DG employers? The number of permutations of DG situations for any one employer would be much, much less than for a regulator to have to address, so the burden wouldn’t be unreasonable. And wouldn’t one way to force employers to recognize their responsibilities, which is the first step toward meeting their responsibilities, be to require them to sign a certification for each training? And if there were a potential penalty for violating a DG regulation, specifically, signing a certification for an inappropriate or ineffective training course, wouldn’t an employer take the responsibility of evaluating training options more seriously?

We wouldn’t be having any CBT-A discussions anywhere unless some employees aren’t getting enough training and some training isn’t good enough. So, there’s a problem, lots of problems. Could possibly, maybe, a simpler solution than having regulators try to write rules defining highquality training, and instead of regulators trying to write rules telling employers how to determine if their employees are doing excellent work or not, be to adopt the “employer certifies” concept into non-US regulations, and to briefly but clearly spell out the expected outcome (e.g. high % of compliant, and therefore safe, DG tasks performed)? Just askin’.

And while certificate versus certification isn’t now at a ValuJet level, if we don’t quickly and effectively address the issues that CBT-A is attempting to fix, then aren’t we risking more DG-related accidents, incidents, exposures, and yes, even deaths, around the world? Maybe the US actually got something right. Maybe we can prevent the next ValuJet via CBT-A, but that isn’t happening quickly or simply. Or maybe we can prevent the next ValuJet by quickly adopting the simple US approach.

This is the latest in a series of musings from the porch swing of Gene Sanders, principal of Tampa-based WE Train Consulting and chair of the Dangerous Goods Trainers Association; telephone: (+1 813) 855 3855; email gene@wetrainconsulting.com.

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LEARNING BY TRAINING

At the Rotterdam StocExpo in March 2018 conference speakers introduced several methods to control and prevent HSE and operational risks. One spoke about the latest version of PGS 29, which was updated because new risks had been encountered and had to be included. Impressive charts in Excel showed how health, safety and compliance managers had been able to improve safety standards, but they had to admit that ‘Human Factors’, which cause 80 per cent of incidents, were not easy to influence or change.

During the last years, TankTerminalTraining (TTT) has experimented with testing, not only human factors such as psychological biases or character flaws, but the manner people interact, communicate and share information. We started to learn about the value of information. We mimicked nature and looked at the way all living systems communicate and replicated this method to create our unique measurement and mapping tool.

The measurement method was developed in cooperation with the Creazene Institute in Switzerland and uses a combination of scientific tools, cybernetics and systems sciences. It was invented with the purpose to predict and map vulnerabilities in corporations, organisations or institutions which are in fact ‘living systems of communication.’ Using the tool we look at day-to-day operational risks and HSE management and are now able to predict and therefore prevent incidents.

This goes way beyond compliance and regulations from the outside, which are usually too late and are implemented only after something bad has happened. It is a well-known fact that enforcement of regulations, rules or compliance impair an organisation’s functioning.

It is about how a company, storage terminal or refinery or any other organisation, even political, communicates. We work with information

feedback loops to create syntheses (observing and measurement of all interdependent relationships) of operations and management systems and use the results to draw maps. These so-called feedback loop maps directly expose, show and predict risks before they could become incidents or accidents.

When the maps show communicative connectedness with all stakeholders, the organisation’s operations are considered stable, balanced and manageable. If they do not show communicative connectedness, the organisation is at risk. Potential risks or vulnerabilities will become evident and we can advise and train organisations how to eliminate these by understanding the sciences behind the tool. It works incredibly well. It could even become scary when one looks at such maps and directly understands where and what vulnerabilities are present. It works as an alarm system and enhances operational excellence.

We offer to synthesise your operations and management systems. That is done in two phases:

1. Operational observation

2. Verification of ‘stakeholder’ communication systems (internal and external).

We offer a comprehensive training programme about this capability. The first public courses are planned for 16-17 August 2018 in Kuala Lumpur and 13-14 September 2018 in Zurich. The course is also offered as an in-house training programme anywhere in the world.

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.

HCB MONTHLY | MAY 2018 06

30 YEARS AGO

Readers opening the May 1988 issue of HCB were accosted with a big headline reading ‘Can this really be the end?’ As the article beneath was a report on the February 1988 meeting of IMO’s old Carriage of Dangerous Goods (CDG) Sub-committee, those readers may have heaved a sudden sigh of relief, imagining that perhaps the IMDG Code was now finished and would never change ever again.

Well, dream on. Those in the know might have been aware that HCB’s founding editor, Mike Corkhill, was – and presumably still is – a massive Bob Dylan fan and was prone to using quotes from Dylan songs wherever possible. That was the case here, with the headline being taken from the song Stuck Inside of Mobile with the Memphis Blues Again

(As it happens, HCB’s current editor made an attempt to ingratiate himself early in his career on the magazine by headlining a story about a new truck immobiliser ‘Stuck outside immobile’.)

Nonetheless, the CDG meeting had clearly got through a massive amount of work, adopting several changes relating to the new-fangled concept of IBCs, as well as other amendments pertaining to marine pollutants, radioactive materials and organic peroxides. In addition, it granted an extension of the grandfather clause already introduced to give industry more time to come to grips with the new restrictions on non-UN specification packagings.

Elsewhere in the May 1988 issue, the world was beginning to consider how computers would be able to help manage the transport of dangerous goods. We reported on a meeting of the European Conference of Ministries of Transport, which reviewed a specially commissioned survey of national dangerous goods databases in Europe.

The survey looked at six databases, concluding that they all differed markedly in their content and approach.

The meeting realised that there would be problems in developing a united approach, not the least of which was language differences. Moreover, all those databases already in place only covered road transport. The survey had also identified that carriers were reluctant to use them, even though they were automating other business processes. With some foresight, the meeting identified a need for the various systems to exchange data, something that regulators are still getting exercised about.

On a more mundane level, we reported in 1988 that BP Oil had installed a national computer system in the UK, managing the flow of oil products from its 25 road tanker terminals to some 20,000 customer locations, including retail facilities. The system managed around 2,000 orders a day, which were processed “in a matter of seconds” – rather slow by today’s standards. Such systems are now commonplace but thirty years ago its introduction by BP was so novel it warranted extended coverage and a picture of a rather quaint computer terminal, its operator sporting a very 1980s mullet hairdo.

Also looking ahead was solicitor and consultant Largent Brown, who urged transport operators to get involved in the process of developing regulations for moving dangerous goods through the Channel Tunnel, even though it was not due to open for business until 1993. The UK chemical industry was keen to be able to take advantage of the tunnel and was optimistic that restrictions would not be too severe, particularly as the regulatory process had been devolved to the tunnel operator, Eurotunnel.

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was demonstrating its new automatic loading arm. This is designed to overcome the ergonomic challenges and multiple opportunities for human error inherent in standard manually operated loading arm.

Loadtec’s new automatic arm can manoeuvre itself out of the tundish and position itself over the open manhole, all at the push of a button. It will then carry out a host of self-checks, such as checking vapour line pressure and verifying that the arm is pressed securely on the manhole. Only once these self-checks are complete will the arm give permission to start loading. After completion of the loading process, the arm is able to remove itself from the tanker and return to the parking tundish where a purge can be conducted before the next load.

SHOWCASING INNOVATION

making the most of the space to showcase new products and innovations, alongside the busy conference schedule.

THIS YEAR’S STOCEXPO conference and exhibition took place at the Ahoy, Rotterdam from 20 to 22 March. A familiar landscape for most attendees, big stands and busy booths set the atmosphere for another impressive year. The exhibition floor was abuzz with new technologies and companies were

Commenting on the event, Nick Powell, StocExpo & Tank Storage divisional director, said: “StocExpo Europe has enjoyed another successful year yet again and it’s been great to see so many new initiatives come to life that were so well received, including the late-night opening, start-up zone and the Innovation in Storage programme led by EEMUA and iTanks. As a forum for discussion - whether it’s trading conditions, capacity projections or technology advances - this event truly fulfils the industry’s needs and is reflected by the huge support we have received from exhibitors, media and attendees over the years.”

HCB took a look around the show to see what was new and interesting.

MAN OVERBOARD

One of the most eye-catching stands on the exhibition floor belonged to Loadtec Engineered Systems. The company, which was recently acquired by Benbecula Group,

The benefits of using an automatic loading arm include removing the operator from environmental hazards, as well as assured accuracy in the safety checks, irrespective of the operator’s familiarity with the equipment. The process is also more economical as the saving of not having an operator present throughout the duration of the tanker filling means the installation price is recovered very quickly. Loadtec’s innovations in loading arm technology represents a significant step forward in autonomous loading operations and operator safety, the company says.

TOP O’ THE TANK

CTS Group of the Netherlands was previewing two brand new products, SolarFlex and Clevertank. Making an impressive leap in the use of solar power, CTS has designed and engineered flexible solar cells that can make perfect use of the vast amounts of unused space on nearly all industrial storage tanks.

Using a mix of interdigitated back contact solar (IBC) cells and thin film copper indium gallium selenide (CIGS) cells, SolarFlex panels are lighter in weight and more costeffective compared to the more common crystalline panels.

The new panels are designed to be flexible, which is advantageous when working with storage tanks of varying sizes and roof types. »

HCB MONTHLY | MAY 2018 08 TERMINAL EQUIPMENT
SHOW REVIEW • TERMINAL OPERATORS LOOK OUT FOR THE STOCEXPO SHOW AS IT PROVIDES AN ANNUAL SHOWCASE FOR NEW EQUIPMENT AND SERVICES THAT CAN HELP IMPROVE SAFETY AND EFFICIENCY
ZWICK ARMATUREN WAS ONE OF MANY EXHIBITORS WITH NEW EQUIPMENT ON SHOW AT STOCEXPO 

Once installed, the panels allow tank roofs to collectively act as a solar farm, with the energy being produced providing power to anything from the lights in the plant to paddles within the tanks. Alternatively, energy can be fed back into the grid for cash or used to ‘flatten’ the costly spike that occurs when starting up generators.

CTS’s other new product release is Clevertank, which aims to alleviate some of the strenuous work that goes into data reporting. Using sensors placed on the side (and top, for tanks with floating roofs), real-time emissions calculations can be presented for mandatory reporting. All data can be sent to a smartphone app or desktop software, meaning that reporting emissions

data no longer takes several hours and a team of field workers. As a wireless and cloud-based system, data can be collected at the touch of a button and accurate reports can be generated.

FLOAT THE BOAT

Across the floor, Vacono, whose business lies in the construction of aboveground steel storage tanks and aluminium covers, was exhibiting its latest line up of geodesic and internal floating roofs. Vacono Dome, an aluminium geodesic dome roof is typically used in refineries and tank farms where both the storage product and the structural tank components have to be protected from atmospheric and environmental influences.

The dome roof is designed to be selfsupporting, where only the outer edge is connected to the tank shell around the outer rim. The Vacono Dome, being only 10 to 15 per cent of the weight of a comparable steel roof, offers a cost-

optimised solution. The covers are also suitable for retrofitting on tanks with existing floating roofs.

Vacono Deck, the company’s answer to the floating roof, is a compact design used to reduce evaporation in vertical storage tanks by up to 99 per cent, the company says. This not only avoids the associated loss of valuable product but also protects the environment against fugitive emissions of volatile organic compounds.

The Vacono Deck has been designed as a modular system with no welding required and can therefore be easily erected on-site by local crews in compliance with the provided documents. According to Vacono, the Vacono Deck is almost completely maintenancefree throughout its life cycle and meets international industrial standards, such as API 650 Appendix H.

PLOT AND PLAN

Venturing out into new territory, Advanced 3D Laser Solutions has partnered with CEA Systems to help terminals streamline their maintenance schedules. Advanced 3D can create a 3D model of a terminal, which CEA Systems can use to identify all assets, certifications, P&IDs and data sheets, linking them to the relevant tank and making the data accessible via Advanced 3D’s associated software.

Legislation places strict requirements on terminal operators to maintain documents, records and drawings; managing this information and ensuring it is kept up to date is a major administrative task, especially as a single change to any one asset may mean changing a range of documents. Having an asset management system, alongside intelligent P&IDs and a 3D model, allows all changes to assets to be recorded on all linked systems instantly, reducing both the cost and the manpower associated with information management.

Emco Wheaton, which has more than a century in the fluid transfer industry, was previewing a new range of Todo breakaway couplings. The NGX, NGXM and BCR series

HCB MONTHLY | MAY 2018 10
MAPPING THE TERMINAL BY LASER MAKES IT EASIER TO KEEP TRACK
OF
DESIGN AMENDMENTS AND MANAGE OPERATIONAL CHANGES MORE SAFELY

were of significant interest to visitors. The NGX series serves as an upgrade on the first generation with a large reduction in pressure drop, overall length and weight. These improvements have now made it the market leader in breakaway products, Emco Wheaton says. The NGXM series is an update on the equivalent marine couplings which, in comparison to NGX couplings, applies break force limitation, meaning it will only break when subjected to an overload in straight-pull force, thus ignoring any tidal or wave movement. The BCR series is specifically designed for loading arm protection with its collar-release design, which ensures a safe break point when the predetermined working envelope is exceeded and ensures there is no over-extension of the loading arm.

Appearing as ever last in the show catalogue, Zwick Armaturen was showcasing the Tri-Shark control valve, which is able to achieve a nearly equal percentage inherent characteristic, greatly extending control rangeability. For practical use, a valve that can close tight and act as an on/off valve as well as a control valve is an appealing prospect for nearly all companies. Moving between tight shut off, low flow, medium flow, and maximum flow allows not only for a degree of control, but also acts as a cost-saving measure since separate on/off valves do not need to be used. HCB

Next year’s StocExpo Europe event will take place once more in Rotterdam from 26 to 28 March; more details will be available via www.stocexpo.com shortly.

TERMINAL EQUIPMENT 11
“AS A FORUM FOR DISCUSSION THIS EVENT TRULY FULFILS THE INDUSTRY’S NEEDS, REFLECTED BY THE HUGE SUPPORT IT RECEIVES”

VIEW FROM THE TOP

HENK, TELL US SOMETHING ABOUT YOUR BACKGROUND AND HOW YOU CAME TO BE AT MERCON

I started at Mercon in September 2017. I have a long track record – 26 years – of developing companies along new roads to success. But, despite successes in the past, every new challenge is a new story and a new quest.

Most of my experience has been with manufacturing and technical service companies, most recently with a high-tech gearbox manufacturer in the Netherlands. It is logical, being an engineer, that those kinds of company have been my destiny.

I am also happy to have had the opportunity to earn some extra degrees during my career, in areas such as business economics and business management. That extra load of knowledge was really a blessing in the development of my career – I have had a lot of joy and satisfaction at every step on the career ladder.

WHAT ARE THE BIG CHALLENGES FACING A COMPANY SUCH AS MERCON RIGHT NOW?

Companies like Mercon and others in the steel construction industry are characterised by a low level of development over the past decades. A main reason for that has been simple economics: for decades manufacturing has been moving to countries with low labour costs.

So, in western Europe, we have sacrificed our manufacturing infrastructure for temporary economic reasons. We now face the fact that even simple maintenance of industrial assets is not sufficient due to a lack of technicians, welders and other skilled workers. For decades labour was not a big issue in terms of competition but, nevertheless, there are many areas in our industry that depend on human labour – and that includes storage tank maintenance.

Name: Henk Meijer

Position: CEO

Company: Mercon Group BV

Location: Gorinchem, The Netherlands

The industry has been slow to adapt to new technologies. There have been some early developments in the digitalisation of work processes, e-learning and welding robots, but we are only on the threshold of real restructuring in the sector.

The big challenge for Mercon is to find the best short-cut to adapt to the forefront of all possible new technologies, including digitalisation, the better use of scarce labour resources, and better and different relations with customers to work together to improve maintenance of their assets. This will involve clustering expertise into multi-disciplinary teams.

WILL IT BE EASY TO DRIVE THAT CHANGE? WHAT NEEDS TO HAPPEN?

If you are willing to make the step, you have to change the way that people work together. At the moment there are a lot of players in the tank storage arena, but their coordination is lousy. We have to coordinate all the engineering disciplines and realise that everyone has an important and equal role – for instance, at Mercon we do not talk about ‘sub-contractors’ any more; we see the companies we work with as ‘partners’.

The world is always changing and we have to deal with our own powerlessness to affect the global economic situation. That’s why we

HCB MONTHLY | MAY 2018 14

need to work together rather than sticking to the old patterns of working.

This may seem radical to some – and I know I walk a little ahead of the average – but others are catching on now, and I’m happy about that.

CAN YOU GIVE US SOME EXAMPLES OF WHAT THIS MEANS IN THE TANK STORAGE SECTOR?

It’s not about robots and it’s not about digitisation – it’s about taking a different approach.

For instance, I believe it is a bit stupid to leave all those assets in a tank farm unmanaged aside from an inspection every ten years. We must develop a better approach to continuous condition monitoring and make use of alternative methods of data collection.

Sadly the types of sensor we need have not yet been developed, but it will come.

HOW DO THESE IDEAS FIT WITH THE NEED TO PRIORITISE SUSTAINABILITY IN THE INDUSTRY?

If you are doing things better and taking more care of your assets, of course it fits with the need for sustainability. But doing things better is also very good economically. That means it can release cash for efforts to develop alternative energy sources, for instance.

Look at what Shell has done at its Moerdijk plant: the company has improved its maintenance management system and that has generated cost savings; that extra cash has allowed it to install a solar power array, helping to reduce its energy costs. Those dots are not joined by ‘normal’ economic behaviour but applying the logic of sustainability will make the energy transition that is now being demanded.

YOU MENTIONED LABOUR ISSUES EARLIER; HOW IS MERCON ADDRESSING THEM?

Firstly, we have a training programme in place to attract and develop young people. Training used to be commonplace across industry but, unfortunately, it fell by the wayside in the mania of cost-cutting in recent decades – it was seen as a luxury, rather than an investment. But from a business point of view, focusing on costcutting is only a short-term solution and shows a lack of professionalism.

Secondly, we started our own subsidiary in Bulgaria – Mercon LLC - where the new entrees in technical and engineering jobs are much bigger in numbers and additionally it provides an extra, cheaper workforce to be flexible also on our home front.

We cannot manage away demographic change and if we do nothing to train young people we will be stuck with an ageing workforce. Now think about it: every new wave of economic growth has come with an increase in productivity. The only way to drive productivity gains is to energise the workforce; bringing in young people can do that.

At Mercon we have programmes in place to get older workers to bring on the young. We take on around six young people every

year and they challenge our older workers to do things better. They see new approaches to doing the same work.

AND WHAT ABOUT YOU? WHAT PLANS HAVE YOU GOT FOR THE NEXT FIVE YEARS?

It’s more like eight years, as the government in the Netherlands keeps raising the retirement age.

But I’m lucky: every morning when I get out of bed I’m still enthusiastic about my work and realise that I’m fortunate to work with such good people. Moreover, it’s fun to spread my ideology.

Welfare doesn’t fall like rain from the sky – you have to work for it. I’ve got a few more years to make a difference.

WWW.HCBLIVE.COM TERMINAL EQUIPMENT 15

NOSE FOR A DEAL

LEAK DETECTION • ACQUISITION OF THE SNIFFERS BY WTS ENERGY PROMISES SYNERGIES FOR BOTH PARTIES, EXPANDING THE SNIFFERS’ ACCESS TO GLOBAL ENERGY CLIENTS

NETHERLANDS-BASED WTS Energy has acquired The Sniffers NV from the Carlyle Group. The Sniffers, founded in 1991 and headquartered in Belgium, offers emission reduction services, energy saving projects for steam- and flare-losses and underground pipeline and cable network integrity services.

“We view The Sniffers as a great addition to our portfolio and a pioneering leader in their field,” says Frederik Rengers, CEO of WTS Energy. “Environmental services, energy savings and plant integrity are hugely important for the global energy industry. The market for these services is growing at a fast pace in both the developed world and in emerging countries. At WTS Energy we are excited about the added value this will bring to our clients and to our portfolio of services. With our global office network and experience in emerging countries, we will assist The Sniffers as much as we can in their global expansion plans.”

Bart Wauterickx, CEO of The Sniffers, is similarly keen: “WTS Energy provides The Sniffers with a truly global footprint and access to technical resources to help The Sniffers in the next level of growth. Our management and the entire Sniffers’ team are happy to be joining forces with the WTS Energy team around the world. We look forward offering our broad range of services to existing and new customers and assist them with Sniffing for a safer and greener environment.”

WTS Energy says the synergies between the two companies are “enormous”. WTS has 20 offices around the world and is active in around 50 countries, primarily offering global recruitment, payrolling, workforce management and technical assistance services to the energy industry. The acquisition, it says, “brings

WTS Energy one step closer to becoming an integrated energy services company”.

CREDIT WHERE IT’S DUE

The acquisition came shortly after The Sniffers received ISO 17025 laboratory accreditation from BELAC, the Belgian accreditation body, for its leak detection services.

“This ISO laboratory accreditation is an independent recognition of the LDAR capabilities of The Sniffers,” says Wauterickx. “When executing a leak detection project, it is essential that the customer can be assured that the detection of leaks, the individual quantification of a leak and the quantification of the overall emission of the installation to the atmosphere, is happening 100 per cent consistent with the outstanding legislation.”

“As these emission measurements affect maintenance programmes and official external environmental reporting of oil and gas sites, revealing the truth about the emission situation is indispensable for customers that care about their people and their social responsibility,” adds Bas Hermans, operations director.

“This laboratory accreditation provides a formal recognition to confirm our competences and provides us a passport to submit tenders that require independently verified laboratories,” the company says. “Our accreditation is highly regarded both nationally and internationally as a reliable indicator of this technical competence, thus assuring our customers that the LDAR measurement data supplied by our inspection services – wherever in the world - are accurate and reliable. It helps our customers to minimise risk by ensuring that they are choosing a technically competent and trustworthy partner that has a sound quality system in place.”

The Sniffers has been active in the sector since 1991 and has carried out more than 7,000 leak detection projects. As such, it has a well-developed understanding of the applicable regulations and directives on volatile organic compound (VOC) emissions and control requirements. HCB www.the-sniffers.com

HCB MONTHLY | MAY 2018 16 TERMINAL EQUIPMENT

SAFETY FIRST

protect tank operators, their assets as well as the environment.

from interacting with the released gas during the breathing of the tank, and also blocks the transmission of deflagration flame and the passage of heat into the tank ”

AN IMPORTANT ROLE

SPILLS AT STORAGE tank farms have the potential to be devastating if a tank’s contents are hazardous. Despite stringent regulations that aim to keep storage tanks as safe as possible, incidents still occur. Ergil Storagetech has taken comprehensive measures with regards to designing, building and supplying storage tanks and equipment to

There are several possible causes for damage to storage tanks. Many tanks are subjected to extreme environmental conditions, often because they are located near the sea where the saltwater causes a high level of corrosive humidity, or because a comparatively high level of charging and discharging in tanks located inland can add to wear on parts. Any damage to a tank can lead to the leak of hazardous material, resulting in environmental damage and even fires.

In September 2017, for instance, a lightning strike hit an aboveground storage tank at a refinery in Colombia - a rare occurrence with the potential to cause destruction on a grand scale. Luckily the lighting-struck equipment was fitted with a pressure/vacuum relief valve and a flame arrestor, which were able to block the fire’s passage through the line. Mahmut Tunaz, design engineer at Turkey-based Ergil, comments on the incident: “Using this combined technology prevents the ignition sources that may occur outside of the tank

Ergil’s combined devices play a significant role in protecting tanks from damage. Fitting a combined unit such as a pressure/ vacuum valve and a flame arrestor allows for greater protection of the storage tanks while also reducing emissions of volatile organic compounds. Not taking into account exceptional cases, equipping storage tanks with end-of-line flame arrestors and pressure-relief valves has proven to be the most effective combination in protecting against damage through over-pressurisation, vacuum-induced implosion and external flames entering the tank.

In its closed position, the pressure relief pallet and diaphragm assembly are held tightly against a seal to prevent vapour loss to the atmosphere at between 2.5 and 70 mbar selectable opening set-points. The valve will automatically reseal when the tank returns to a safe pressure.

Ergil’s designs meet all applicable international standards, including ISO, API, CE Mark and ATEX. As a result, the combined device has been a favourite for many tank operators in meeting their ever-changing needs. The design ensures prevention against any relief or explosion that may occur and, says the company, is extremely easy to maintain. The combined technology means there is no loss of vapour or explosion migration and extremely low leak rates, which significantly reduce explosion risk.

Ergil was founded in 1982 and has provided a range of professional services to the oil, gas, petrochemical, chemical and water industries for more than 30 years. Headquartered in Istanbul, Ergil operates out of a 35,000-m² manufacturing facility, enhancing its advanced manufacturing capabilities and services. The company is also ISO 9001, 14001, OHSAS 18001, ASME U-4, S-2 and R Stamp accredited. It also has CE/ATEX certificates for its storage tank products. HCB www.ergil.com

HCB MONTHLY | MAY 2018 18 TERMINAL EQUIPMENT
LEAK PREVENTION • AVOIDING SERIOUS INCIDENTS AT A TANK FARM IS TOP PRIORITY FOR ALL OPERATORS. ERGIL HAS MADE GREAT STRIDES IN PROTECTIVE AND EMISSIONREDUCING EQUIPMENT
COMBINED PRESSURE/VACUUM RELIEF VALVES AND FLAME ARRESTERS OFFER AN EFFECTIVE MEANS OF MINIMISING EXPLOSION RISKS ON STORAGE TANKS 

LATEST AND GREATEST

month-end close time with a 60 per cent overall time savings.”

PLANNING THE OPENING of a brand new bulk liquids storage terminal providers the owner with the opportunity to sit back, look at the range of products and services on offer, and choose those that really meet the needs of the new facility and its customers. And there is plenty of choice, as anyone who visits the ILTA trade show or the StocExpo events will attest.

So when Pin Oak Terminals was planning its new site in Mount Airy, Louisiana, it had the chance to leapfrog other existing terminals and go for the latest and most effective systems on the market. One choice it made was to install Emerson’s SynthesisTM order-to-cash software, which promises to delivery automated ticketing, tank inventory reconciliation and greater invoicing accuracy.

“As a new terminal, we were looking for a scalable commercial management system to improve our day-to-day order processing and give us and our customers visibility to inventory levels and other critical data in real time,” explains Mike Reed, CEO of Pin Oak Terminals. “With Synthesis software, we will

be able to automate movement orders and improve data-intensive processes across the board, allowing us to better serve our customers and invoice quicker with greater accuracy as well as streamline our monthend close process.”

The scalable, enterprise-level logistics midstream management solution integrates with the terminal’s back office, commercial and operational data to enhance customer service, which will help the facility achieve its goals of quickly and accurately closing each accounting period, enhancing asset availability and reducing operational costs.

MAKE IT SNAPPY

“Many terminals struggle due to delayed invoicing and inefficient asset management practices that require significant reconciliation time,” says Tengbeng Koid, president of the Energy Solutions business of Emerson.

“With Synthesis software, all aspects of logistics management are seamlessly integrated, providing a level of transparency that enables our customers to improve their

Using Synthesis software, the enterprise is connected to the field to ensure a direct link between transactions and charges. Terminal orders are electronically generated and distributed. There is also a significant reduction in administrative time spent on data collection, leading to enhanced customer satisfaction. In addition, a self-service portal provides customers with 24/7, web-enabled access to inventory information as well as pending charges, invoices and reports.

Pin Oak’s terminal is still under construction but it officially opened for business in August 2017, two years after breaking ground on the land along the Mississippi River. It has the space to construct up to 10m bbl (1.6m m3) of tankage for crude oil, refined products, chemicals and other liquids, with 4m bbl already committed under customer agreements.

The terminal opened with one dock, a twobay truck loading rack and four tanks totalling 424,000 bbl (67,400 m3) for refined products and biofuels. A second dock is planned, allowing the terminal to handle Aframax tankers and up to 14 barges simultaneously; a two unit train loop is also possible. Pin Oak plans to provide a wide range of services to its customers, including offloading, storage, heating, blending and transfer of crude oil, refined products, gasoil, fuel oils, naphtha, base oils, chemicals, ethanol and vegoils. HCB www.pinoakterminals.com

HCB MONTHLY | MAY 2018 20 TERMINAL EQUIPMENT
SOFTWARE • PIN OAK TERMINALS HAS OPTED FOR EMERSON’S SYNTHESIS MANAGEMENT SYSTEM TO HELP IT SERVE ITS CUSTOMERS MORE EFFICIENTLY

A PRICE ON KNOWLEDGE

AUTOMATION • FEW MAJOR COMPANIES THESE DAYS MANAGE WITHOUT AN ERP SYSTEM. SOFTWARE PROVIDERS HAVE TO ENSURE THEIR SYSTEMS DOVETAIL WITH THEM, AS IMPLICO KNOWS

SAP, ONE OF the global leaders in enterprise resource planning (ERP) systems, held an international conference for its customers and partners in the oil and gas industry in Lisbon, Portugal last month. The event attracted not just oil and gas companies but also providers of industry software that works with the SAP platform.

One of those software providers is Implico, which describes itself as “the only software company to develop standard SAP solutions for the downstream sector”. Implico took a stand at the SAP conference to demonstrate how downstream companies can use its systems –particularly SAP SDM and SAP RFNO – to turn their digital vision into real technology to support them in their everyday business.

Before the SAP Oil & Gas Conference kicked off, Implico took the opportunity to demonstrate its particular expertise in the sector and its in-depth knowledge of SAP solutions in a set of expert workshops. In these events, Implico experts and SAP software engineers explained the commercial advantages of its new S/4HANA solutions for secondary distributors in the oil and gas field.

“The SAP S/4HANA Oil & Gas for Secondary Distribution Management and SAP S/4HANA Oil & Gas for Retail Fuel Network Operations solutions were both realised by Implico in close cooperation with SAP’s developers,” says Implico. “The solutions are based on the traditional Business Suite versions of SAP SDM and SAP RFNO, which

SAP has been marketing for many years and which were also developed by Implico for the oil and gas product business and service station management.”

SAP SDM offers standardised, proven bestpractice order-to-cash processes, while SAP RFNO handles and automates all payment and logistics processes for service station networks. With their ability to automate business processes, these solutions offer an outstanding cost/benefit ratio, Implico says.

The new S/4HANA technology can now process data almost 300 times faster than before. This makes settlement possible in a matter of seconds with SAP RFNO, even for large service station networks.

CHANGE IS A CHALLENGE

“Digital transformation is a challenging process that brings companies numerous advantages – particularly in terms of

connecting people, things and processes. And this happens even as they are making the first changes,” says Torsten Peter, Implico’s managing partner with responsibility for SAP business. “The software also integrates and automates all processes based on predefined workflows. Our solutions therefore give companies leeway that they can use for customer loyalty management, for example.”

To illustrate what Peter means, Implico had invited one of its customers, the Canadabased fuels distributor Groupe F Dufresne, to give a presentation about how it is achieving its digital transformation with the help of SAP RFNO and SAP SDM, which Implico has recently introduced to the company. The special aspect of the Dufresne application is the integration between the SAP downstream solution for its fuels business with the SAP for Retail solution.

Hamburg-based Implico is a long-time software development partner of SAP and is able to offer “unique consulting expertise” on SAP’s solutions for the downstream oil and gas sector. In addition, Implico is a Microsoft Gold Partner and a member of the Oracle PartnerNetwork. HCB www.implico.com

TERMINAL EQUIPMENT 23 WWW.HCBLIVE.COM

BULLETIN

STORAGE TERMINALS

VALERO BUYS UK TERMINAL

SemGroup has agreed to sell its UK petroleum storage business, SemLogistics, to Valero Logistics UK Ltd, a wholly owned subsidiary of Valero Energy Corp. The price of the deal has not been revealed but SemGroup says it includes a four-year earn-out clause. SemLogistics’ main asset is the Milford Haven terminal in Wales, which has a capacity of some 1.4m m3. The terminal is situated across the Haven from Valero’s refinery (right) and is used for storing crude oil, gasoline feedstocks and a range of refined products.

For SemGroup, the deal, which is expected to close in the third quarter, is part of a broader plan to divest non-core legacy assets and, as president/CEO Carlin Conner says, “move forward with a more focused North American midstream strategy”.

“This facility complements our Pembroke refinery and fuel terminal in the UK and Ireland making it a natural fit for the company,” says Joe Gorder, Valero’s chairman, president and CEO. “This purchase demonstrates Valero’s commitment to Wales and the UK, and it aligns with our strategy to grow the logistics business and reduce secondary costs.” www.semgroupcorp.com www.valero.com

OMAN ADDS TO DOMESTIC STORAGE

Orpic Logistic Co has formally opened the Al Jefnain fuel terminal and the associated Muscat-Suhar Product Pipeline in Oman. The Al Jefnain terminal, with a capacity of some 170,000 m3, expands Oman’s capacity for refined products storage by 70 per cent.

“We are proud to witness the inauguration of one of the three important strategic growth projects undertaken by Orpic. The project comes in response to the strategic objectives set by the government for developing oil products logistics solutions in the Sultanate to meet the rapidly growing demand for fuels,” said HE Sultan bin Salim Al Habsi, deputy chairman of

Orpic, at a ceremony in March. Orpic Logistic is a joint venture between state-owned Orpic and CLH of Spain.

www.orpic.om

ODFJELL READY FOR BIGGER SHIPS

Odfjell has completed the extension and strengthening of the jetty at its Rotterdam terminal in order to be able to handle LR2 product tankers up to 160,000 dwt. The work, undertaken in collaboration with the Port of Rotterdam, anticipates an increase in the size of vessels calling at the terminal in light of changes in product trades and the demand for distillation at the terminal’s PID unit.

“We are responding to the wishes of our customers to handle ever larger ships,” says Erik Kleine, managing director of Odfjell Terminals Rotterdam. “We appreciate that the Port Authority supports us by deepening the Petroleumhaven.”

www.odfjell.com

MORE GAS IN THE GULF

Two more NGL-related export terminal projects in the US Gulf region have been

announced in recent weeks. Energy Transfer Partners (ETP) and Satellite Petrochemical USA have agreed to form a joint venture, Orbit Gulf Coast NGL Exports, to build a new export terminal that will provide ethane for Satellite’s new ethane-fed crackers in Jiangsu province, China.

The work will involve a new ethane pipeline from ETP’s Mont Belvieu fractionators, export facilities, an 800,000-bbl (127,000-m3) refrigerated storage tank and a 175,000-bpd ethane refrigeration unit. ETP will operate the Orbit assets. Cargoes will be shipped out on very large ethane carriers (VLECs), though no details have been released concerning this aspect of the project. It is expected that the new Orbit terminal will be ready for commercial operation in fourth quarter 2020.

Meanwhile, Canada-based NOVA Chemicals and Sunoco Partners Marketing & Terminals, a unit of ETP, have entered a non-binding MoU to look at the development of an ethylene export terminal on the US Gulf Coast. NOVA has new olefins capacity in Louisiana and is looking at a joint-venture cracker in Texas. If the plan goes ahead, the

HCB MONTHLY | MAY 2018 24
NEWS

partners will establish an 800,000 tpa terminal, fed from the Lone Star NGL storage hub in Mont Belvieu.

“An ethylene export terminal builds upon NOVA Chemicals’ leadership position in the continually expanding North American ethylene industry,” explains Naushad Jamani, senior vice-president, olefins and feedstock for NOVA Chemicals. “Together with the 2017 acquisition of our interest in the Geismar, Louisiana olefins facility and our recently announced proposed joint venture in Texas with Total and Borealis, this project would further extend NOVA Chemicals’ presence in the US Gulf Coast, allowing us to better serve our customers in the Americas.”

NOVA Chemicals is a wholly owned subsidiary of Mubadala Investment Co of Abu Dhabi, UAE. www.energytransfer.com www.novachem.com

USD’S MEXICAN WAVE USD Group is this year expanding its network of refined products terminals in Mexico through its local subsidiary USD Marketing Mexico. It is planning two facilities in the central Chihuahua area, the first of which is expected to be in service in the middle of 2018.

It will include storage capacity and rail and truck transloading capabilities. Both terminals will be serviced by Ferromex, which provides access to all North American Class 1 railroads.

“The planned terminals are expected to meaningfully improve the distribution of refined products across the state of Chihuahua, which includes approximately two million residents and one of Mexico’s most concentrated and productive agricultural and mining hubs,” says the company. www.usdg.com

HES CHANGES FUNDS

Funds managed by Macquarie Infrastructure and Goldman Sachs have announced their intention to acquire HES International from Riverstone Holdings and the Carlyle Group. HES focuses on the storage and handling of liquid and dry bulk products in Europe.

Following the announcement, HES has opened discussions with the relevant works councils.

“With the support of Riverstone and Carlyle we have become one of Europe’s most successful independent bulk handling companies providing products and services to our customers at 18 sites across eight countries,” says Jan Vogel, CEO of HES International. “Over the past 3.5 years we

have implemented a focused strategy that makes optimal use of our prime real estate in Europe’s key ports and allows us to adjust flexibly to future changes and opportunities that energy transition will bring to our sector. We have also built a strong pipeline of additional growth projects for both our liquid bulk and dry bulk businesses to support our strong position in each of our core businesses.”

Under the ownership of Riverstone and Carlyle, HES has pursued a major expansion of the Botlek Tank Terminal in Rotterdam, has repurposed a former refinery in Wilhelmshaven, Germany to a major tank terminal, and has embarked on construction of a new liquids terminal in Rotterdam, HES Hartel. These investments are all based on long-term contracts.

“We are pleased to invest in HES alongside MIRA and are keen to support the company in its next stage of development,” says Philippe Camu, co-chief investment officer with Goldman Sachs’ Infrastructure Investment Group. “The HES team has built an impressive business underpinned by strong customer relationships and strategic locations in Europe’s key ports. We look forward to drawing on our experience in the sector for the benefit of HES and its stakeholders.” www.hesinternational.eu

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ON YOUR BLOCKS

BLOCKCHAIN • ADOPTION OF INDUSTRY 4.0 CONCEPTS WILL INEVITABLY LEAD TO THE USE OF BLOCKCHAIN. BUT WHAT IS IT?

AND WHAT DOES IT OFFER PARTIES IN THE SUPPLY CHAIN?

THE TRANSPORT AND logistics industry has been talking for years – decades, even – about how best to apply emerging information technology to its operations. Putting RFID chips and tracking devices on mobile assets allows asset owners to know where those assets – and any cargo on them – are located at any given time, and this ‘track and trace’ function is now widely applied across industry verticals and transport modes.

More recently, transport operators have begun buying into the new ‘Industry 4.0’ environment, realising that the availability of huge volumes of data can – if used intelligently – deliver added value through the entire supply chain. That concept, dubbed ‘Logistics 4.0’, was all the rage last year and, in the dangerous goods sector, some of the major logistics firms announced deals with

the new breed of telematics providers that were making such systems available.

If Logistics 4.0 was the buzzword for 2017, then this year’s looks like being blockchain. Many people will currently only know blockchain from Bitcoin, the cryptocurrency whose viability is based entirely on the blockchain concept. But as Logistics 4.0 systems are being more widely introduced, it is becoming inevitable that blockchain –or some equivalent system – will be needed if the various parties in the supply chain are to reap the rewards that are being promised.

CHAINED TO DATA

One important feature of Industry 4.0 concepts is that each party in the supply chain has real-time access to information relating to any particular shipment, in line with rules

that determine which party can have access to which information. For this to happen effectively, there is what can be thought of as a virtual ledger, automatically populated with values generated from the data provided remotely by sensors and telematics units.

If the various parties are to have confidence in the veracity of that ‘distributed ledger’, there needs to be a way to verify that the data has been generated correctly, and that any orders, payments or other externally generated instructions are correct.

This is the function of the blockchain, which consists of unchangeable, digitally recorded data in packages called blocks, each block being ‘chained’ to the next by means of a cryptographic signature. This allows block chains to be used like a ledger, which can be shared and accessed by anyone with the appropriate permissions.

In order to develop systems of specific utility to logistics operators, a dedicated group was formed last year. The Blockchain in Transport Alliance (BiTA) intends to develop and embrace a common framework and standards from which industry participants can build their own applications. In addition, BiTA has set itself the goal of establishing a platform for dialogue and a thought-leadership panel that will also

HCB MONTHLY | MAY 2018 26

educate and promote blockchain technologies in the logistics industry.

BiTA says there are many ways in which blockchain technology will revolutionise the logistics sector, such as:

• Self-executing smart contracts

• Automatic invoice settlement

• Asset maintenance and ownership history

• Development of ‘drop-and-hook’ grey trailer pools

• Transparency and chain of custody.

While these are of interest to the logistics sector as a whole, there are some elements of particular significance for the dangerous goods sector, not least in terms of the verification of custody – to allow shippers and carriers to make sure that a consignment is being carried and handled in accordance with relevant regulations – and the potential for promoting drop-and-hook operations, at least in some applications, to reduce driver waiting times and help ameliorate the effects of the widespread driver shortage.

To get all these benefits out of blockchainenabled systems, there needs to be a set of agreed standards and this is the main task of BiTA in the near term. A board of directors for the development of standards was established in December 2017 and discussion will take place at its spring meeting in May 2018; the aim is to have standards published before the end of the year.

FROM TELEMATICS TO THE CHAIN

Telematics providers will be a crucial group in terms of the setting and adoption of standards. Orbcomm joined BiTA in March 2018 and, as a global provider of industrial Internet of Things (IoT) solutions, sees itself as being well placed to play an integral role in driving the transition to shared distributed ledger technology to support logistics management, asset tracking, transaction processing and other activities in the transport sphere.

“Orbcomm will collaborate with BiTA’s members, including transportation service

providers, shippers, OEMs, suppliers, vendors and insurance companies, to determine how to incorporate blockchain technology into the transportation supply chain, improving end-to-end visibility, streamlining manual paper operations, ensuring data integrity and security, enhancing communications, and optimising efficiency,” the company says.

As an illustration of how this will work in practice, Switzerland-based Nexiot, which pioneered the development of smart sensors for non-powered assets in the supply chain, has already launched a blockchain-type distributed ledger as part of its Digital Logistics Platform.

Nexiot says its self-sustaining sensors send messages every five minutes from assets such as rail wagons, shipping containers and boxes, including updates on location, impact events, border crossing, and mileage. Enhanced with blockchain technology, the data, securely held in the new Digital Ledger, includes a date and time stamp, making the information legally binding and adding a valuable layer of accountability to the journey of an asset and its goods.

TRUST THE SYSTEM

“The Distributed Ledger brings transparency, trust and legal compliance to our Management

Solution, as the data records are legally binding,” says Daniel MacGregor, director of marketing and sales at Nexiot. “This blockchain technology also opens the door to the introduction of Smart Digital Contracts.

“Our sensors have already established a new level of accuracy for contract stipulations of location and location-based events,” MacGregor adds. “Now with the Distributed Ledger, these can be linked to confirm terms and fulfilment of contracts, and it is possible to digitise contract execution, from automated demurrage and insurance claims, to excess mileage recharges.

“By 2019, it is estimated that 20 per cent of all IoT deployments will have basic levels of blockchain services and this development promises to deliver a long overdue layer of services to enhance quality in logistics,” says MacGregor. “The technology builds trust by preventing manipulation of records of historical events, reduces costs, information silos, overheads, and unnecessary middlemen, and accelerates transaction executions to near real time instead of days and weeks.” HCB www.bita.studio www.orbcomm.com www.nexiot.ch

TANKS & LOGISTICS 27 WWW.HCBLIVE.COM
INCREASING USE OF ONBOARD SENSORS (RIGHT) IS GENERATING HUGE VOLUMES OF DATA THAT CAN BE USED INTELLIGENTLY TO IMPROVE SPEED AND ACCURACY 

RIGHT PLACE, RIGHT TIME

MEETING • THIS MONTH’S TRANSPORT LOGISTIC CHINA SHOW OFFERS A PLACE FOR THE TANK CONTAINER INDUSTRY TO MEET AND TALK, AND PLAN FOR REGIONAL GROWTH AHEAD

THE TANK CONTAINER industry is a global business. Operators and lessors are located around the world, even if the manufacturing of new tanks is increasingly dominated by China. The tanks themselves traverse the world’s seas, rail tracks, roads and rivers, seemingly unaffected by national boundaries or language barriers.

But, like any service industry, the relationship between tank operators and their clients remains very much a personto-person business. And with those people scattered around the globe, getting everyone together to do business and to talk about pressing issues is not an easy task, despite the best efforts of the International Tank Container Organisation (ITCO).

For many years now, ITCO has used the biennial Transport Logistic show in Munich as a forum where tank operators and lessors, as well as equipment and service providers, can get together, show off their wares, and discuss industry topics. The ‘ITCO Village’ has become a mainstay of the Munich event, concentrating everything tank-related into one handy hall so that those who want to see what’s on offer do not have to wear out shoe leather to excess.

The event’s organiser has since 2004 held an Asia-focused show in Shanghai in the intervening years between Munich events; the eighth biennial Transport Logistic China

opens its doors this coming 16 May at the Shanghai New International Expo Centre and the ITCO Village will be once more making an impressive appearance – all the 28 available stands have been filled by ITCO members.

The event is also increasingly attractive to visitors: the 2016 event pulled 23,350 people through its doors, up from some 16,800 in 2014.

ASIAN FOCUS

This will be the first major event for ITCO since its merger with the Asian Tank Container Organisation (@tco) at the start of this year.

The merged organisation will, says president Reg Lee, continue to develop the programme of work that both bodies were engaged in but much of the focus for 2018 will be on Asia.

Apart from the ITCO Village in Shanghai, ITCO is planning an Asian regional meeting in Singapore in November, following the European meeting in Antwerp scheduled for September; both events will celebrate ITCO’s 20th anniversary year.

ITCO will certainly be continuing with the @tco depot audit scheme, which has already seen more than 25 tank cleaning and repair depots passing strict inspection and audit procedures. Lee believes that such a quality assurance scheme is vital to support the increasing use of tank containers in Asia.

While at the Transport Logistic event, Lee will also be stopping by the Shanghai Maritime University, where Professor Bingliang Song has been an enthusiastic supporter of @tco’s work and has put together ITCO’s annual tank container survey for the past two years. One topic for discussion will be the translation of the ITCO Tank Container E-Learning Course, which has recently been updated, into Mandarin.

The opportunities offered by the magnet of Transport Logistic China and the ITCO Village have not gone unnoticed by local tank container manufacturers. Both CIMC and NTtank will be holding events at their own facilities and will be inviting visitors and ITCO exhibitors to attend. HCB www.itco.org www.transportlogistic-china.com

HCB MONTHLY | MAY 2018 28 TANKS & LOGISTICS
ITCO IS AIMING TO BUILD ON THE SUCCESS OF ITS VILLAGE AT THE 2016 TRANSPORT LOGISTIC CHINA SHOW

TOOL FOR THE JOB

COMPRESSORS • CHOOSING THE RIGHT EQUIPMENT TO HANDLE INDUSTRIAL GASES IS NOT STRAIGHTFORWARD.

BLACKMER’S GLENN WEBB* EXPLAINS THE SELECTION PROCESS

THERE ARE NO cookie-cutter solutions for any applications that involve the handling and transfer of industrial gases. Therefore, making assumptions based on past experience, or what the other guy is doing, can only get you in trouble. In order to help ease the burden of selecting the proper compressor technology for the handling of industrial gases, this article will lay out a general framework that can be used to help the end user identify and select the proper solution.

When a customer comes with a request to move product, the application engineer has to ask a lot of questions. What product or products are involved? What pressures and flow rates are expected? What exactly is the application? Is this even a job for a compressor? Only after the parameters of the operation are established will the application engineer know if a compressor is an appropriate technology for use in completing the process.

COLD COMPRESS

Generally speaking, there are three typical product transfer applications that hit the sweet spot for compressors:

• Vapour recovery, for instance the removal of flammable gas vapours remaining in a tank after the liquid has been transferred, natural gas vapours in stock tanks, sulphur hexafluoride in electrical transformers, seal leakage from process compressors in larger plants and the emptying of storage vessels prior to their maintenance, reconditioning or replacement;

• Pressure boosting, in order to move gas from one location to another, or for the transfer of refined natural gas from a lowpressure distribution line into a storage tank that feeds a burner in a heat-treating process; and

• Liquefied gas transfer, during the loading, unloading or transloading of railcars or other transport vessels.

Once the actual process is identified, the application conditions must be determined. To ease this process, many equipment suppliers have created a data sheet that they give to their customers to complete. In addition to general information like the site location and elevation, and whether the equipment is located indoors or outdoors and stationary or mobile, the questionnaire will ask for more specific operational parameters.

Once these operational parameters have been determined, the application engineer will initiate the process of selecting the proper compressor for the operation – although there may well be more than one option.

It pays to reiterate that every technology and every model design within that technology has very concrete limits on what its operational capabilities are. This can also require some outside-the-box thinking. For example, if a single compressor cannot meet the required flow rate and pressure, it may be possible to add a second compressor in series or parallel to achieve the desired performance.

DOWN THE FUNNEL

Reciprocating piston compressors are positive displacement machines, as are their diaphragm cousins. There are also positive displacement rotary compressors, such as the vane, screw, liquid ring and blower types. Finally, there are axial or radial turbo compressors. All excel in their own operational niche in industrial gas transfer, whether it be the ability to produce high flow at high pressure, high flow at low pressure, low flow at low pressure or low flow at high pressure. Again, the operational parameters of the process will provide a roadmap to the best compressor technology.

Another significant factor is cost –especially in today’s world of highly controlled budgets. Generally speaking, reciprocating piston compressors are among the most costeffective technologies available to the market. That being said, the operation’s process parameters and requirements will play a large role in the final cost of the equipment required for the application. Machines that must meet API-618 design requirements, for instance, will have a much higher purchase price than a non-API-618 design.

HCB MONTHLY | MAY 2018 30

Many applications will be able to use the chosen machine straight out of the box but there will always be occasions where a specially designed or configured machine is required. In this case, there are bound to be added system costs as the compressor and/or system are modified to fit the unique needs of the operation.

Furthermore, within those categories of compressor, there are further segments. Within the family of reciprocating piston compressors, for instance, there are oil-free, non-lube, lubricated and oil-less designs. Again, knowing the operational parameters and requirements will create a path that leads to the selection of the proper technology. For example, the transfer of crude natural gas may not require an oil-free compressor because there are already impurities in the gas itself so that any small amounts of oil carryover from the compressor that enters the gas stream will not harm the product or the process.

Oil-free designs are inevitably more expensive and there is no point offering the customer an unnecessary technical upgrade. Emission compliance requirements, however, could mean that an oil-free design might still be the best solution due to its leak-control capabilities. Fugitive emissions control regulations may also point to more comprehensive leakage control, ruling out lubricated compressor designs that require oil lubrication in the upper cylinder and valve area, which can be prone to significantly higher leakage rates.

THINGS TO REMEMBER

Having settled on an oil-free reciprocating piston compressor, the engineer must now consider the actual environmental operating conditions. Oil-free designs have very specific discharge temperature limitations. In this instance, the top end of the machine is designed to operate without lubrication, so it has non-metallic wear parts (e.g. piston rings,

packing seals, etc) that become sacrificial wear parts because they operate without lubrication. By design, those parts will need to be serviced and replaced on a regular basis. Typically this is done as part of an annual preventative maintenance programme.

In some applications where operating temperatures are low, and operating pressures and compressor rpms are in a moderate range, a user can see the compressor operate for a few years without any need for significant maintenance. In other applications where temperatures are high and pressures more demanding, the operator may only get 2,000 hours of service out of the compressor before it needs to have those topend wear parts serviced.

Finally, and most importantly, the performance of the reciprocating piston compressor must meet or exceed the requirements of the process that it is operating in. This often means that the compressor manufacturer will need to reach out to other professionals in the field – distributors,

fabricators, system integrators, etc – for assistance in completing a turnkey gas compressor system for the application.

In the end, reciprocating piston compressors – like any comparable technology – are only effective in performing their duties if they are put in a position to be successful. Reaching a state of ideal operation can be attainable if the proper legwork is done to ensure that the compressor can satisfy the many unique and varied needs of the application. By asking the right questions, performing the required research and working closely with the customer and other channel partners the unknowns will be removed from the compressor selection process, resulting in an optimized operation and contented clients. HCB

*Glenn Webb is business development manager, Blackmer Compressors at Blackmer and PSG. He can be reached at glenn.webb@psgdover. com. More information on Blackmer’s full line of pumps and compressors can be found at www.blackmer.com.

TANKS & LOGISTICS 31 WWW.HCBLIVE.COM
THE OIL-FREE RECIPROCATING PISTON COMPRESSOR IS OFTEN THE BEST CHOICE FOR THE TRANSFER OF INDUSTRIAL GASES, THANKS TO A DESIGN THAT PROTECTS THE COMMODITY BEING HANDLED 

A PROUD PARTNERSHIP

TRAILERS • KÄSSBOHRER IS MAKING FRIENDS IN THE EUROPEAN COMBINED TRANSPORT SECTOR, ITS INNOVATIVE APPROACH TO CHASSIS AND TRAILER DESIGNS DELIVERING OPERATIONAL ADVANTAGES

IN THE WORLD of combined transport, using the correct trailer is important. Not only should a trailer be durable and withstand large payloads over a period of time, but it should also be able to maximise available space without compromising strength. The European market is already making changes in order to adapt to the fast-growing implementation of intermodal transport throughout the supply chain.

Autamarocchi, one of the top five Italian transport companies, has entered into a joint venture with Kässbohrer to provide reliable and efficient intermodal transport in Europe. The company has 2,000 vehicles in its fleet and offers competitive solutions in intermodal transport. Founded in 1986, Autamarocchi offers made-to-measure transport to its customers throughout Europe in the field of container and full truckload (FTL) shipping.

For fleet companies, supplier reliability is an important factor. Kässbohrer has been a consistent partner of Autamarocchi for seven years and can offer a wide range of transport options, including its huckepack curtainsider range, fixed and gooseneck container chassis options and box swap body range.

The K.SHG S gooseneck container chassis is one of Kässbohrer’s leading products and is suitable for all possible configurations up to 40-ft containers. The durable chassis enables greater payloads and a longer life, which provides a more diverse operational landscape for the semi-trailer and has proven to be the preferred option for customers in more than 55 countries.

CHALLENGING OPERATIONS

“It is mandatory to have a robust chassis for challenging operational loadings if you want full efficiency,” says Ervino Harej, general manager of Autamarocchi. “We are aware of that and worked with Kässbohrer time after time. Also the delivery time of Kässbohrer and competitive advantage among other manufacturers make the partnership important for Autamarocchi.”

Kässbohrer is also the preferred partner for Autamarocchi’s fleet expansion. Its K.SCC ferry coil curtainsider and the latest K.SHG L light container chassis are operational

favourites, providing excellent quality and service in intermodal transport. The light container chassis, which offers a tare weight advantage of 200 kg over comparable models, can carry 45-ft containers and swap bodies. The K.SHG L is one of the most popular semitrailers, with 220 units delivered in 2017 and another 70 units delivered to Automarocchi at the beginning of 2018. Since its launch in 2016 at the IAA show, Kässbohrer’s light container chassis have seen rapid sales growth and offer an innovative solution for logistics companies.

Kässbohrer’s key account sales manager, Mehmet Önen, says: “Kässbohrer continues to be the solution partner for transportation and logistics sector by offering the best quality and services to its customers. Not only productbased but also Kässbohrer contributes to the sector itself with its innovative approach. Kässbohrer and Italy have a special relationship and we will sustain this partnership for years to all over the Europe.”

Kässbohrer was founded in 1893 by Karl Kässbohrer in Ulm, Germany; it now has a second German plant in Goch, near the Dutch border. In addition, Kässbohrer supplies the Russian market from a plant in Tula oblast, while its largest production facility is now in Adapazari, Turkey. HCB www.kaessbohrer.com

HCB MONTHLY | MAY 2018 32 TANKS & LOGISTICS
KÄSSBOHRER’S TRAILERS ARE HELPING TRANSPORT COMPANIES ACHIEVE A MULTIMODAL SHIFT 

TOMORROW’S TRAIN SET

ROLLING STOCK • TESTING HAS BEGUN ON A NEW GENERATION OF FREIGHT WAGONS THAT PROMISE BETTER PERFORMANCE TO MEET THE DEMANDS OF SHIPPERS AND THE PUBLIC

OPERATIONAL TESTING OF Germany’s ‘Innovative Freight Wagon’ research project is now underway. The research project, aimed at accelerating the use of quieter, more energyefficient and more economical freight wagons is now in a critical stage, with trials running to the end of the year. The project, commissioned by the German Federal Ministry of Transport and Digital Infrastructure (BMVI), is being implemented by a working group led by DB Cargo and VTG.

Twelve innovative freight wagon prototypes being used as part of the project have left

Minden, near Hanover, as part of the tests. Track trials are set to continue until the end of 2018 with various routes being tested - initially in Germany and then, following approval, in neighbouring countries as well. The trials will cover some 150,000 km and will provide substantiated results related to wear and tear and economic efficiency.

Conventional vehicles have been grouped alongside the innovative freight wagons in order to serve as a reference for the study. Two different types of automatic couplers are also being tested as part of the operational

trial. In order to be able to test different wagons, one car of each type is moving fully loaded, one car is loaded to 50 per cent and one car is transported empty.

ANTICIPATING RESULTS

During January and February 2018 noise and energy measurements were taken by an independent third party on behalf of BMVI. After a range of component configurations were tested on the new wagons at the test site in Minden, results have revealed that a combination of new construction and innovative components has a positive impact in terms of energy consumption and intended noise abatement levels. Three out of four wagon types were able to fall below the current TSI noise limit specifications for newbuild wagons; in certain cases, more than -5 dB(A) was achieved.

VTG AG is testing a wide range of common wagon types for this project, such as an 80-foot container car and a tank car. DB Cargo is assessing a six-axle flat wagon for transporting steel products and a car transporter. All the wagons are fitted with innovative components that have generally not achieved high levels of market penetration but should contribute towards greater noise migration and reduced energy consumption.

In some instances, all four vehicle types are being tested with new components. These include an electro-pneumatic brake, a digital brake indicator, power and data bus wiring and quiet wheelsets with wheel noise absorbers. Other features, such as targeted weight-saving designs, are being used on specific wagons in the trials.

VTG has also equipped its wagons with the Nexiot telematics units it has been rolling out across its fleet since late 2016.

The innovative freight wagons will be showcased at the Innotrans trade fair in September 2018 in Berlin, alongside the preliminary findings of the project. A full evaluation will be carried out after the project’s completion in December 2018.

VTG is a publicly traded wagon hire and rail logistics company with around 80,000 railcars in its fleet, making it the biggest privately owned fleet in Europe. HCB www.vtg.com www.innovativer-gueterwagen.de

HCB MONTHLY | MAY 2018 34

TANKS FOR TATA TAR

INTERMODAL • AV DAWSON’S NEW INTERMODAL HUB HAS WON ITS FIRST CONTRACT TO HANDLE TANK CONTAINERS BY RAIL, SUPPORTING THE MODAL SHIFT OF BULK LIQUIDS OFF THE ROADS

AV DAWSON HAS recently won an expanded contract with Tata Steel, now involving the movement of coal tar from the Tata plant in Port Talbot in south Wales to the Koppers facility in Teesside in the north-east of England. The contract is significant as it proves AV Dawson’s confidence in building a new intermodal rail terminal in Teesside, marking the first deal involving the handling of tank containers by rail. The company was formerly moving steel coil for Tata Steel

on the same route but the new terminal capacity, along with the realisation that there was spare capacity on the trains, now allows it to move 24 tank containers a week as well as the steel.

Neil McShane, rail manager at AV Dawson, explains: “This contract with Tata Steel is more cost-effective as it involves transporting the coal tar alongside the existing steel coil that we transport for Tata. The direct rail link into our facility increases efficiency and supports our drive to reduce the business’ environmental impact. This is one of the key reasons we developed the Intermodal Park and is the first of many new contracts this investment will bring to AV Dawson and Teesside.”

Gary Dawson, managing director at AV Dawson, welcomes the new contract, saying it demonstrates the firm’s commitment to government objectives to move heavy freight from road to rail transport. “We built Tees Riverside Intermodal Park because we knew there was an opportunity to take a substantial amount of heavy traffic off the roads and convert this onto rail freight, whilst offering a more efficient delivery process for our customers.”

PART OF THE PLAN

Under its existing agreement with Tata, AV Dawson acts as a north-east automotive distribution centre for Tata’s steel coil, with the firm’s steel being stored in its climatecontrolled warehouse before being transported via its road haulage fleet to customers such as Nissan and Steel & Alloy.

AV Dawson receives three weekly deliveries of steel coil by train and identified additional capacity on these trains to transport the coal tar – a product that has a range of industrial uses. It is shipped as UN 3082, tar solution, Class 9. The 24 tank containers used on the contract are leased from Eurotainer by Tata Steel UK, with AV Dawson responsible for cleaning, servicing and testing the tanks. The tanks are 24,000-litre heated units, built by CIMC and Singamas.

The £2.6m Tees Riverside Intermodal Park (TRIP) was part of a three-year, £12.5m investment master plan AV Dawson embarked on to develop its 100-acre Tees freight terminal in Middlesbrough. The intermodal terminal, which links to the East Coast Main Line, has now reached more than 400 units in storage and continues to grow each month. The facility offers connections between road, rail and sea freight as well as warehousing space.

The master plan included a new £3.4m deepwater quay, designed to allow operators to kit out vessels and ship wind turbine components to offshore wind farms. The largest part of the plan involved the creation of a major automotive steel distribution centre.

From this base on Riverside Park, Middlesbrough, AV Dawson now owns and operates one of the largest independent rail terminals in the North of England and has also has a 99-year lease to maintain and operate Middlesbrough Goods Yard. HCB www.av-dawson.com

TANKS & LOGISTICS 35 WWW.HCBLIVE.COM
COAL TAR IS BEING TRANSPORTED IN HEATED TANKS FROM SOUTH WALES TO NORTH-EAST ENGLAND

TALK OF THE TOWN

high-value corrosive chemicals and other liquids, which generate higher revenue for operators. A technical review of ChemLine’s extensive chemical resistance list illustrated how the coating is compatible with more than 5,000 different chemical cargoes, including aggressive acids, alkalis, solvents, agricultural chemicals and many others.

This capability is achieved by the proper heat curing of ChemLine that results in a highly cross-linked and tightly knit coating structure, providing unprecedented chemical resistance, even at elevated temperatures. The ChemLine coating sets up to a smooth glossy finish that is easily cleaned and decontaminated after carriage.

The Global Summit concluded with the signing of business relationship contracts between APC and the different applicator principals. “All these ChemLine applicators share a common mission with APC to deliver high-quality tank container lining results,” Kilroe says. The value message we deliver is that the excellent result is a combination of using the quality ChemLine system, with the quality services of our applicators around surface preparation, lining application, heat curing, final inspection and spark testing, and reporting of quality control reports and documentation.

ADVANCED POLYMER COATINGS (APC), the company behind the high performance patented ChemLine® tank lining system for tank containers, recently convened its first ChemLine Global Tank Container Summit in Avon, Ohio with its key worldwide partner applicators and APC representatives, under the theme of ‘Partners in Performance’.

The purpose of the summit, according to Martin Kilroe, APC’s global tank container manager, was to bring together partner applicators that specialise in applying ChemLine linings for tank containers, to ensure a consistent high-quality approach that mirrors APC’s core values and quality objectives.

“At the summit, we were able to connect and build strong collaborative relationships,” Kilroe says. “Each of the applicators exhibits the highest level of professionalism in their work, and they command exceptional

quality in every application. They are not only passionate about their work, but also keenly familiar with our ChemLine system.”

The summit was attended by APC personnel and principals from three application companies, each with long history in their respective markets: Amfico Agencies Pvt Ltd from Mumbai, India; Hüni GmbH & Co from Friedrichshafen, Germany; and Shanghai Fuchen Chemicals from Shanghai, China.

ON THE AGENDA

The event covered a range of industry and product topics on tank lining successes, customer and industry requirements, changing regulations, goals, worldwide marketing and promotion work, and application and quality control procedures.

There was also a review of the growing demand for specialised tank containers with high-performance protective linings to carry

“The end goal is to provide peace of mind to tank container owners, operators, lessors, tank manufacturers, agrochemical producers and chemical companies along with an excellent lining and service warranty.”

ChemLine is produced in a range of formulations to suit different applications in the transport, processing, piping and tank storage sectors. As well as tank containers, it is suitable for lining road tankers and rail tank cars, process equipment and other tank and piping systems.

APC also produces MarineLine®, used as a coating for cargo tanks in chemical and product tankers. The company has recently promoted Capt Onur Yildirim, who joined the firm in 2006, to the post of marine manager, Kilroe’s equivalent on the MarineLine side. Yildirim is a former chief officer on chemical tankers, having sailed in various roles with Turkey-based Aksay Shipping for five years. HCB www.adv-polymer.com

HCB MONTHLY | MAY 2018 36 TANKS & LOGISTICS
LININGS • PROPER APPLICATION IS KEY TO AN EFFECTIVE AND LONG-LASTING TANK COATING. APC WORKS CLOSELY WITH ITS APPLICATORS TO ENSURE THE HIGHEST QUALITY

SINGLE-MINDED

CORPORATE • IMPERIAL HOLDINGS IS INTEGRATING ITS GLOBAL ACTIVITIES UNDER A SINGLE BANNER, TO HELP IT MEET ITS AIM OF BECOMING THE CHOICE FOR INTERNATIONAL OPERATORS

IMPERIAL HOLDINGS LIMITED has integrated the business operations of its logistics divisions that were previously acting independently under a single Imperial Logistics brand. As a result, the logistics and supply chain activities of the international, South African and African divisions will be amalgamated into a single, global logistics business.

The new ‘one business, one brand’ approach will play a significant part in Imperial’s aspirations to be “the internationally acclaimed Tier One provider of outsourced value-add logistics, route to market and supply chain management solutions”.

“We have a single-minded focus on delivering customised solutions that keep

our clients competitive and relevant,” says Marius Swanepoel, CEO of the new global logistics organisation. “A single brand enables this client-centric thinking.”

Imperial says that its clients will benefit greatly from the unification and consolidation of regional activities into one international logistics unit. A uniform IT system alongside consistent quality standards will be implemented around the globe. Furthermore, accelerated business processes and transfer of expertise will be ensured beyond the regional markets. “Strategic priorities such as flawless execution are more effectively enabled by such synergies,” explains Swanepoel.

There will also be a stronger focus on collaboration and customisation, explains Carsten Taucke, CEO of Imperial Logistics International “We’ll be better able to share knowledge and expertise from the traditional business units and transfer this to other countries as we grow together to form one global, clearly structured and integrated logistics and supply chain business.”

TRANSPARENT STORAGE

In an unrelated but interesting move, Imperial Logistics has established an independent start-up, ShareHouse, to operate a new web-based warehouse forum. Developed in Imperial Logistic’s supply chain laboratory in Berlin, the system allows small and mediumsized companies to digitise the marketing of their warehouse space. “We’re reducing the hurdles for these companies as they take the necessary step of launching a digital, forwardlooking business model,” says Jörg Klöpper, managing director of ShareHouse.

Manufacturers and distributors, particularly e-commerce providers, often require buffer storage facilities at short notice. A large number of industrial companies also have to respond to seasonal fluctuations in demand. For companies making enquiries about storage space at short notice, transparency has so far been non-existent. ShareHouse will make information about prices and other value-added services more readily available and allow both sides to benefit from the increased transparency.

A subsidiary of the South African company Imperial Holdings Limited, Imperial Logistics International is responsible for coordinating and managing all the international logistics business for Imperial Holdings Limited outside Africa. Imperial Logistics International is split into two separate divisions: The Imperial Transport Solutions division pools its transport services in the shipping, road and express freight business units. The Imperial Supply Chain Solutions division covers services in the contract logistics and warehousing sectors for the automotive, industrial and chemical business units. HCB www.imperial-international.com www.sharehouse.eu

HCB MONTHLY | MAY 2018 38 TANKS & LOGISTICS

DELIVERING SPACE

storage space. In addition we have invested in a new pallet tracking and storage system.

“For the customer, this is a real a cost saving, as it removes the issues of storage and order fulfilment, allowing them to concentrate on their own core business and expand their manufacturing operations as needed, rather than tying up valuable space for storage,” Phillips adds.

warehouse for further expansion so we are talking to more companies to take on the same role for them, of storage through to pick and pack.

DELIVERY SOLUTIONS (DELSOL) has expanded its warehousing space in the UK with a strategic 80,000-ft² (7,400-m2) expansion project. The new warehouse, in Sandycroft, Flintshire, is used by companies based in North Wales and the north-west of England and stores raw materials that are transported for JIT manufacturers by Delsol. Delsol also collects and stores finished products at the warehouse before delivering them to clients using its fleet of 90 trucks and vans.

“We initially took on 40,000 ft² (3,700 m2) last October, which offered us 2,500 racking spaces.” says Delsol managing director Dave Phillips. “It was clear that there is a big demand in this area for warehousing, fulfilment and pick and pack, so we have taken on a further 40,000 ft². We now have a total of 5,000 racking spaces, plus some further

The move has also been handy for Delsol, which has relocated its entire international sales team to the larger office space provided by the new building. Previously split between locations in Sandycroft and Caernarfon, the consolidation will allow the team to work more effectively together. “I am expecting that this will be another growth area for the company,” Phillips says.

Two employees have been promoted to oversee the warehouse operations. Warehouse operation is overseen by Mike Wilcocks, who has been with the company for ten years. “The warehouse is huge and I am certainly getting fit walking around it all, especially once we doubled it in size,” he says.

“If we expand it more I am going to have start using a bike to get around.”

ROOM FOR MORE ON TOP

And further expansion is possible, as Phillips explains: “There is also space in the

Gavin Hughes, a colleague of Mike Wilcocks, says: “We have a wide range of items stored here, but fortunately the company has invested in a new pallet tracking system, which has made it easy to locate items for customers quickly. I can see that it makes good commercial sense for our customers to use this as their storage space for both raw materials and finished goods, freeing up room on their sites for manufacturing. We pick and pack for their own customers, ensuring that orders can go out quickly, so reaching their final destinations right on time.”

Originally founded in Bethesda, Gwynedd, in 1999, Delsol opened a purpose-built delivery depot and warehouse facility nearby Caernarfon in 2003, with a second depot opening in Sandycroft, Deeside in 2009.

Part of the Hazchem network, Delsol depots employ 127 people, delivering to the UK and around the world to retail, commercial, industrial and private addresses. Delsol is also a member of APC Overnight, the UK’s largest independent parcel delivery network, as well as the TPN pallet network, which offers reliable distribution around the UK and Ireland, and into Europe. HCB www.deliverysolutions.uk.com

HCB MONTHLY | MAY 2018 40
WAREHOUSING • DELSOL’S MOVE TO LARGER PREMISES IN NORTH WALES WILL ALLOW IT TO OFFER NEW SERVICES TO REGIONAL MANUFACTURERS AND SHIPPERS, BOTH INAND OUTBOUND

BULLETIN

CHEMICAL EXPRESS BAGS ADBLUE DEAL

Chemical Express has won a contract from GreenChem for the distribution of AdBlue in Italy. GreenChem is one of Europe’s largest producers of the diesel additive.

Chemical Express has opted to use tank containers for the contract, with one covering northern Italy and the second central and southern parts of the country. The tanks are mounted on special chassis, with automatic pumps and independent gensets and metering equipment. “Chemical Express is supporting GreenChem’s expansion in Italy thanks to its trained staff, technical assistance and its own facility,” says Chemical Express.

The company also reports that 2017 represented a “very positive year”, with business volumes up 10 per cent over 2016, transport orders up 5 per cent and, significantly, intermodal transports up 9.2 per cent, confirming what Chemical Express identifies as its “intermodal bent and ecofriendly approach to the market”. www.chemicalexpress.it

VTG BRINGS NACCO A STEP CLOSER

VTG AG’s planned acquisition of CIT Rail Holdings (Europe) and its Nacco rail car leasing subsidiary has moved a step closer following conditional approval for the deal from the German Federal Cartel Office and Austria’s Antitrust Court.

The main condition imposed is that VTG must sell some 30 per cent of the Nacco business to a third party in advance of the transaction. Nacco has around 14,000 freight cars in its European leasing fleet so, after the planned sale, VTG will add some 10,000 units to its fleet. The deal is now expected to close in the second half of this year.

VTG has also released its audited figures for 2017, which show revenues up 2.8 per cent at €1.01bn and net profit up 18.5 per cent at €68.1m. Adjusted EBITDA was up by 2.4 per cent.

“2017 was a significant and exciting year in VTG’s development,” says Dr Heiko Fischer, chairman of VTG’s executive board. “Following a somewhat restrained start to

the year, our strategic measures and the positive economic climate have generated a highly satisfactory result overall. The investments to expand our business are now bearing fruit and are a solid basis for 2018.”

Revenues from VTG’s tank container business were stable at €157.3m. The company reports that transport volumes increased but freight rates remained under pressure. www.vtg.com

BERTSCHI’S LIFE IN LOGISTICS

Hans-Jörg Bertschi has been honoured by the Deutsche Verkehrszeitung (DVZ) for his life’s work at the annual Logistics Excellence Optimisation (LEO) awards in Hamburg.

DVZ says Bertschi’s vision of a level rail link through the Swiss Alps, expressed in his dissertation in 1985, eventually came to fruition 31 years later; this alone would have been enough to warrant an honour but his entrepreneurship as CEO of the family business over the past 24 years, which have seen the firm grow into a global chemical logistics leader, and his vision to lead the development of combined transport have cemented his position as a pioneer in the logistics field.

Bertschi has been an advocate of intermodal transport for more than 50 years, successfully shifting long distance transports from road to rail across Europe. In his role as chairman of the board of Hupac, Hans-Jörg Bertschi is actively developing a rail-based intermodal network all around Europe, making a significant contribution to safe, sustainable and environmentally friendly freight transport.

Hans-Jörg Bertschi will step down from operational management of the Bertschi Group in August and, in his continuing role as executive chairman, will concentrate his efforts on new market activities and strategic projects.

www.bertschi.com

WWW.HCBLIVE.COM TANKS & LOGISTICS 41
NEWS

BROEKMAN GETS BUSY

Broekman Logistics has formally opened its newest warehouse in the Maasvlakte area of Rotterdam and has already started work on its next project in Venlo. The 35,000-m2 Maasvlakte facility, designed for the storage of both hazardous and non-hazardous products, is strategically located near the port’s new container terminals.

The new warehouse also marks the introduction of Broekman’s ‘BLUE4C’ concept – BLUE standing for Broekman Logistics Unlocking Europe and 4C for Coordinates, Combination, Customised and Compliant. The idea is to address four current trends: modal shifts in transport, new product-market combinations that require a different approach to warehousing, changing safety standards, and the globalisation of production and logistics.

“BLUE4C perfectly complements our growth strategy in the Netherlands,” explains Willem Jan van Amersfoort, managing director of warehousing and distribution at Broekman. “We aim to be and remain the market leader in the field of ADR storage. We also offer warehousing capacity at strategic locations in order to continue to meet our customers’ needs.”

The Venlo project, sited on the former DSM Pharma Chemicals production site, is a joint venture between Broekman Logistics and Heylen Warehouses. It will comprise a 63,000-m2 logistics facility with 53,000 m2

of warehousing space, half of which will be dedicated to dangerous goods. Development will take place in phases, with the workforce increasing from an initial headcount of 150 to an eventual total of 300.

“The Venlo site is ideally located, with the barge terminal and rail terminals virtually just around the corner from our terrain. The site is easily accessible from the A67 (Belgium –Germany) and the A73 (Nijmegen –Roermond),” says van Amersfoort.

Ralph Caspanni, CEO of Heylen Warehouses, adds: “In Broekman Logistics we have found a partner to build a new logistics facility and to contribute to our growth strategy in the Netherlands. With this triple-A visibility location, we’ll be offering the best possible accessibility by road, water and rail.”

Following the opening of the Maasvlakte facility, Broekman now has more than 310,000 m2 of warehousing capacity in the Netherlands, a third of which is designed for hazardous goods. www.broekmanlogistics.com

TURKISH RECOGNITION FOR BDP

BDP International has been named an Authorized Economic Operator (AEO) in Turkey by the Turkish Ministry of Customs. Companies with AEO status, BDP notes, “can perform customs transactions at a more rapid pace and are subject to less physical control”.

Commenting on the news, Fikret Ersoy, managing director of BDP Middle East, Turkey and Africa, states: “This achievement was the result of passing challenging and meticulous audits, as well as completing a number of comprehensive procedures, and committing [to] the strictest compliance and sustainability standards.”

BDP’s recognition of AEO status in Turkey involved a stringent 15-month process, including multiple on and off-site audits. BDP is now the first global logistics service provider to be AEO-certified, something that “will serve as a regional differentiator for BDP and its customers,” the company says.

“Our team is committed to our promise of delivering the best global logistics solutions to our esteemed customers,” Ersoy says. “Thanks to the diligence and dedication of Serkan Alabas, commercial director, Gozde Akıncı, HSEQ manager, and their teams, BDP Turkey is now poised to provide innovative and compliance-centric solutions to customers.”

www.bdpinternational.com

HCB MONTHLY | MAY 2018 42 TANKS & LOGISTICS

LEANER AND FITTER

FINANCIALS • RECENT ACQUISITIONS AND STRATEGIC INITIATIVES PUSHED 2017 PROFITABILITY UP ACROSS THE BOARD AT LEADING CHEMICAL DISTRIBUTOR BRENNTAG

BRENNTAG HAS CLOSED its 2017 books with a post-tax profit of €362m, up slightly on the prior-year figure of €361m, from sales worth more than €11.7bn, themselves up 11.9 per cent from €10.5bn. Operating EBITDA rose 3.2 per cent, from €810m to €836m, while operating gross profit, which Brenntag describes as “an especially important metric”, increased 5.2 per cent, coming in at €2.6bn as opposed to €2.4bn in 2016.

“We are satisfied with the overall group’s performance in financial year 2017, which saw a broad-based contribution from business operations in our four regions,” says CEO Steven Holland (below). “We were pleased to see the continued recovery and growth of our North American region after a challenging period and further growth in Asia Pacific, which provides long-term potential as we continue to develop our network density. The group continued to execute its acquisition strategy in 2017 with a number of important developments to support the growth in food and life sciences and geographical expansion in Asia Pacific. We anticipate that the actions and initiatives executed in 2017 will further support the group in 2018 and expect an overall positive business environment.”

In Europe, the Middle East and Africa (EMEA), the company last year notched up sales worth €5bn, an increase of 9.4 per cent from €4.6bn, concurrent with a 2.8 per cent rise in operating gross profit, which came in just shy of €1.1bn. Operating EBITDA, meanwhile, remained largely stable at €365.6m. “Following a challenging first half of the year, we saw a positive performance in the region in the second half of 2017,” Brenntag says. “Going forward, we expect

further impetus from the programme that we have initiated to increase efficiency.”

Over in North America, the company “posted a very positive performance”. In addition to “very encouraging organic growth in almost all customer segments”, it also benefitted from recent acquisitions that also made a positive contribution to earnings. As such, regional sales rose 14.1 per cent, from €3.8bn to €4.4bn, while operating gross profit increased 7.7 per cent to €1.1bn and operating EBITDA 7.8 per cent to €385m.

FURTHER DEVELOPMENTS

There was also good news in Latin America, where, despite “a still volatile and difficult macroeconomic environment”, Brenntag saw its sales rise 4.9 per cent, from €780.9m to €819.2m. However, while operating gross profit increased 0.9 per cent, going from €170.9m to €172.5m, operating EBITDA dropped 7.6 per cent, slipping from €45.9m to €42.4m. “Following a weak first half of 2017, our Latin American companies posted a clear improvement in earnings in the second half of the year,” it says.

Over in Asia Pacific, Brenntag again “delivered excellent results” and high growth rates. “In particular, we saw a very encouraging performance and positive contributions to earnings from the acquisitions by which we have systematically expanded our presence in the Asia Pacific region,” the company states. In addition to recording a 15.8 per cent jump in sales, which rose from €1bn to €1.2bn, Brenntag also clocked up a 9 per cent increase in operating EBITDA, which went from €182.3m to €198.7m, and a 10.5 per cent increase in operating EBITDA, which hit €73.7m from €66.7m.

In terms of the year ahead, Brenntag says it “expects to see growth” in its key performance indicators. “During the last financial year,” Holland states, “we saw the group strengthen its overall performance with a number of growth and efficiency programmes starting to deliver in the second half and the overall business environment continues to improve across all regions.” HCB www.brenntag.com

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OPEN WIDE

WAREHOUSING • H ESSERS IS EXPLOITING ITS HOME LOCATION WITH THE CONSTRUCTION OF A MASSIVE NEW CHEMICALS HUB THAT WILL PROVIDE MULTIMODAL TRANSPORT OPTIONS

H ESSERS HELD a ground breaking ceremony for its new trimodal mega site in its home town of Genk, Belgium this past 23 February. The start of construction work was formally announced at the ceremony in the presence of Philippe Muyters, Flemish Minister for work, economy, innovation and sport.

The new mega hub is sited on land at the former Ford plant, currently being decommissioned. Enough space has now been made available for H Essers to start

work on what it calls Dry Port Genk – it is the first new tenant to do so. The first phase, set to cost €17m, will involve construction of 30,000 m2 of warehousing space and create 80 new jobs. Subsequent phases of construction will expand the facility to cover 160,000 m2 at a total cost of some €80m over the next five to ten years, with the prospect of employee numbers at Dry Port Genk reaching 400.

“With this site, we take a new step in the expansion of Genk towards becoming a logistics hotspot, in addition to providing jobs in our province. Thus, we emphasise our belief in the assets of Belgian Limburg within the Euroregion,” says Gert Bervoets, CEO of H Essers.

CHEMICALS FOCUS

The new mega site will mainly be deployed for the handling, storage and distribution of a wide range of chemical products. The site’s first customer will be VWR, a multinational distributor of products and materials for laboratories. It will be taking advantage of H Essers’ ongoing development away from being a simple transport and warehousing company into what Bervoets describes as “a chain architect of integrated and advanced logistics solutions”.

“With the new site, we are taking it one step further, more particularly in the area of advanced logistics services for the chemical industry,” says Bervoets “The site at the Albert Canal offers the ideal possibility to transport these chemical goods via water and rail in addition to conventional road transport.

Synchro-modality is a prerequisite for both the mobility issue and for raising the efficiency of our transports. It is challenging both in terms of systems and a mental shift, but the opportunities for emissions and logistics optimisation are substantial. From this site, we can adapt an innovating role for both the region and our customers.”

The first two halls of Dry Port Genk are due to become operational this coming November, with further capacity coming online during 2019. H Essers says that the facility will only be handling finished and packaged goods; this ensures that handling hazards and potential impact on the environment are minimised.

H Essers currently has 950,000 m2 of warehouse space across 67 locations in 15 countries. Addition of the new Genk facility will see capacity pass the 1m m2 mark, with Bervoets commenting: “Despite our strong international growth, we also keep investing in Limburg.” As well as operating warehouses that offer transport and logistics services for the chemicals, pharmaceuticals and healthcare sectors, it operates 1,460 trucks and 3,050 trailers. In 2016 H Essers achieved a turnover of €571m. HCB www.essers.com

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RAIL, ROAD AND BARGE LINKS WILL MAKE THE GENK SITE AN ATTRACTIVE LOCATION FOR SHIPPERS

AFRICAN ADVENTURES

EXPANSION • AS WELL AS UPGRADING AND EXTENDING ITS FACILITIES IN MOROCCO, ORKILA HAS FURTHER BOLSTERED ITS PRODUCT OFFERINGS IN EGYPT AND SOUTH AFRICA

LEBANESE SPECIALITY CHEMICALS

distributor Orkila has upgraded and expanded its warehousing facilities in Morocco to meet the international Good Distribution Practices (GDP) and ISO 9001:2015 standards.

“These include the need for improved product segregation by sector and have resulted in the creation of dedicated warehousing space for pharma, food, animal nutrition, home care [and] personal care together with an isolated zone for the storage of hazardous products,” the company explains. At the same time, “the existing facilities have been augmented by the construction of a new warehouse”. Adding a further 900 m2 of 12-m ‘high ceiling’ storage space, this brings the company’s total warehousing capacity in the country to almost 6,000 m2

Concurrently, Orkila Morocco has also now expanded its fleet of vehicles, enabling it to “manage nationwide deliveries in house” and thus improve both efficiency and lead times for customers. “Orkila Morocco’s future growth is being underpinned by a number of investments designed to extend and improve the company’s service infrastructure,” explains chief operating officer Christophe Sacy.

Further east, Orkila has signed an exclusive agency agreement with Capsule Delivery Solutions (CDS), part of Lonza Pharma and Biotech, that will allow it to promote and sell the entire Capsugel® capsule range in Egypt. “This agreement is an important part of our business strategy to drive growth and

streamline our channel to market,” says CDS territory sales manager Philippe Azzi. “By leveraging Orkila’s extensive logistics network and deep industry expertise, we will be able to serve our Egyptian customers faster and more efficiently throughout the country.”

“Capsugel represents more than 85 years of experience, excellence and dedication to the pharmaceutical and nutraceutical industries,” adds Orkila’s head of life sciences Serge Yeterian. “The inclusion of Capsugel products in Orkila’s portfolio will further enhance our value-added product portfolio in Egypt. We are confident that we will make the most of this new partnership for the benefit of both our customers and Lonza’s Capsule Delivery Solutions.”

HEADING SOUTH

Meanwhile, at the other end of the continent, Orkila has also begun distributing Vencorex HDI and IPDI monomers and Tolonate™ and Easaqua™ aliphatic polyisocyanates

across South Africa. “We are looking forward to duplicating the successful collaboration we have developed with Orkila elsewhere in the Middle East and Africa with Orkila in South Africa,” says Bengt Arheden, Vencorex’s marketing and sales director, Europe, Middle East and Africa. “We believe that Orkila is the ideal partner for Vencorex, providing South African customers with local service and support.”

Commenting on the deal, Antoine Aris, head of Orkila’s Performance Product Global Business Unit, states: “Leveraging its long-established presence, our team in South Africa is fully operational and ready to start developing Vencorex’s products. These products complete our current range of specialty additives for the paint and coatings industry, offering our customers an extensive portfolio of products.”

From its headquarters in Beirut, Orkila operates a network of 20 regional facilities across the Middle East and Africa. Offering what it describes as “a flexible and highly reactive service through its modern and efficient supply facilities in the key markets of the region”, it “represents more than 100 internationally known chemical manufacturers” and services a broad range of customers within a total of 35 countries. HCB www.orkila.com

HCB MONTHLY | MAY 2018 46

OPEN A DOOR, CLOSE A BOOK

NETHERLANDS-HEADQUARTERED IMCD has further expanded its technical capabilities in Asia with the addition of two new coatings and construction laboratories in Tangerang, Indonesia and Petaling Jaya, Malaysia.

The primary focus of these new labs, the company says, “will be to support customers and suppliers, offering formulation guidance, innovative solutions to overcome technical challenges, and product performance testing”. As such, they “are fully equipped with the necessary apparatus for testing and formulation development” and together bring the company’s total number of labs around the world to 39.

“IMCD is delighted to launch these coatings and construction application laboratories in Indonesia and Malaysia,” says Philippe Russo, IMCD Asia’s regional director, south-east Asia

(SEA). “These facilities will allow us to build on the technical service we deliver to our partners in the SEA region and will provide us with the means to fully explore and showcase the synergies between the top quality raw materials of our principals.

The labs will also assist us in training the IMCD coatings and construction sales force in Indonesia, Malaysia and the surrounding regions to further develop their skills and knowledge.”

GLOBAL ROUND-UP

The news comes shortly after IMCD announced a 2017 net result before amortisation and non-recurring items of €110.1m, up 7 per cent from the €102.6m achieved the previous year, from revenues of just over €1.9bn, themselves up 11 per cent

from €1.7bn. Meanwhile, the company’s gross profit rose 12 per cent, to reach €428.7m from €381.6m, while operating EBITDA increased by 9 per cent, coming in at €161.7m from €147.8m. “IMCD has delivered another year of significant growth, which is the result of our focus on operational excellence, acquisitions and a favourable economy,” says CEO Piet van der Slikke.

Thanks in part to what the company calls “more positive macroeconomic market circumstances”, its operations in Europe, the Middle East and Africa were able to up their revenues by 8 per cent to €1.1bn. At the same time, gross profit increased 10 per cent, from €248.8m to €274.2m, with operating EBITDA rising 12 per cent to €112.6m from €100.8m. However, in Asia Pacific, where “market circumstances were characterised by substantial differences between the countries”, revenues, gross profit and operating EBITDA all remained largely static at, respectively, €314.9m, €65.2m and €28.1m. Nevertheless, the company notes that while its activities in India and China are “small compared to the size of the markets”, they “are developing well and growing nicely”.

A more robust picture emerged in the Americas, where IMCD successfully upped its revenues by 31 per cent, from €344m to €450.7m. Gross profit, meanwhile, jumped 30 per cent to €89.4m from €68.9m while operating EBITDA rose by 12 per cent, coming in at €35.5m from €31.6m. This growth was primarily driven through acquisitions, particularly that of Torontoheadquartered LV Lomas, which added six locations across Canada and the US and which in 2016 had generated revenues of C$383m (€246.1m). “The acquisition of LV Lomas in Canada and the US is an important step in realising our strategy in this region,” van der Slikke states.

“With Lomas, we entered the Canadian market and we expanded our footprint in the US, both geographically and in important life science market segments, in particular food.” HCB www.imcdgroup.com

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RESULTS • WITH RECENT ACQUISITIONS IN NORTH AMERICA HAVING HAD A POSITIVE IMPACT ON ITS FIGURES, IMCD HAS NOW INVESTED IN NEW LAB CAPACITY IN SOUTH-EAST ASIA

TRIPLE WHAMMY

RECONDITIONING • BACKED BY ITS EQUITY INVESTOR, INDUSTRIAL CONTAINER SERVICES HAS CONTINUED TO EXPAND ITS FOOTPRINT THROUGH THREE RECENT ACQUISITIONS

FLORIDA-HEADQUARTERED INDUSTRIAL

Container Services (ICS) has acquired the intermediate bulk container (IBC) reconditioning and recycling operations of Tote Detailing Specialists (TDSI). The acquisition, the company’s 12th since January 2015, includes all of the machinery, equipment and inventory utilised at TDSI’s plants in Joliet, Illinois and San Antonio, Texas, with the acquired business now set to become an ICS operating entity.

“The acquisition of Tote Detailing is yet another example of ICS’s commitment to our fast-growing IBC platform,” says ICS president and CEO Charles Veniez. “With TDSI as part of our team, we are now firmly ensconced in

the robust Chicago industrial market and the booming Texas oil patch. Combined with the full ICS product and service portfolio, this will create real opportunity for our customers, shareholders and employees alike.”

“I am excited to announce the merger of Tote Detailing into the ICS group of companies,” adds TDSI president and CEO Brad Noyes. “When it came time to choose the best partner for TDSI, our customers and our employees, ICS was clearly the best fit.

I would like to thank everyone at both TDSI locations, as well as our valued customers for their many years of support, knowing they are in good hands going forward. I look forward to helping transition the business over to ICS.”

BIG STEP FORWARD

The news comes hot on the heels of ICS’s acquisition of Next Day Container’s IBC

reconditioning and recycling operations in Delphi, Indiana. Describing the acquisition of Next Day as “a big step forward” for ICS’s IBC business, Veniez states: “Their central location and brand-new high-speed production line, combined with the full ICS product and service portfolio, will provide great opportunities for our customers while opening up new markets for ICS. We are pleased to welcome [Next Day president and CEO] Ken Mushen and his team into the ICS family and look forward to their help in supporting our mission to provide customers with the highest quality products and the most dependable service, all while adhering to the strictest environmental standards found anywhere in the industrial packaging industry.”

“Along with my partners Mark and Steve, we would like to thank all of our customers for their many years of support,” Mushen says. “I look forward to continuing on as the facility manager for the Delphi plant and making sure our customers always get the high-quality products and excellent customer service they are accustomed to.”

DRUMS IN DAYTON

But it’s not just IBCs that have been catching ICS’s eyes of late, with the company this past December also acquiring the steel drum

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RECENT ACQUISITIONS HAVE ADDED EXTENSIVE IBC CAPABILITIES TO THE ICS PORTFOLIO 

reconditioning and container distribution business of Ohio-based Dayton Industrial Drum. The purchased machinery, equipment and inventory, ICS reports, will now be used “at various ICS locations while the business itself will be managed by Questar Solutions”, an existing ICS operating entity. “While Questar has grown organically and by expanding into new geographies, the Dayton Industrial Drum purchase marks the first acquisition-based expansion of our Questar business unit,” Veniez reports.

“The integration of Dayton’s capabilities into the existing Questar and ICS infrastructure brings opportunity for their customers and ours, our suppliers and our shareholders,” he adds. “We are pleased that [erstwhile owners] the Hussong family chose ICS as their exit-strategy partner as they move on to the next phase of their lives. We wish them the best and congratulate them on a job well done for over 40 years.”

“On behalf of Dayton Industrial Drum, we would like to take this opportunity to thank our customers for their continued support and loyalty,” says Kylene Hussong. “It has been an honour for us to carry on the family business for the past 45 years. My grandfather, William J Hussong, would have been very proud of what we have accomplished. The sale to ICS assures our customers will continue to receive the quality of products and customer service which they have come to expect from Dayton Industrial Drum.”

NORTH AMERICAN NETWORK

Describing itself as “the largest provider of reusable container solutions in North America”, ICS operates multiple brands and a network of more than 50 strategically located facilities across 21 US states and six Canadian provinces. As such, the company “is well-positioned to service local, regional and North American customers alike and

strives to be the supplier of choice for high-quality, environmentally responsible container solutions”. Moreover, ICS offers “the most complete container management systems available, including reconditioning, manufacturing, distribution, used container collection and recycling services” for all major industrial packaging types, including steel, plastics and fibre drums.

Recycling around 20,000 tonnes of steel per annum and employing a staff of more than 1,700, ICS is owned by New York-based private equity firm Centerbridge Partners.

“ICS has become the largest reconditioner in North America by way of an aggressive, strategically sound acquisition plan starting in 2002 when management and investors purchased the company from IFCO Systems, formerly known as PalEx Industrial Container Services. We have consistently grown the business since then,” ICS states. HCB www.iconserv.com

STAND OUT WITH

INDUSTRIAL PACKAGING 49
www.hcblive.com LIVE • WEEKLY • MONTHLY • SPECIALS THE INFORMATION SOURCE FOR THE INTERNATIONAL DANGEROUS GOODS PROFESSIONAL

DRUMS REBORN

PRODUCT DEVELOPMENT • GREIF HAS UNVEILED A RANGE OF INDUSTRIAL PACKAGINGS MANUFACTURED FROM POSTCONSUMER RESIN BUT ALSO MEETING UN SPECIFICATIONS

GREIF HAS UNVEILED its new EcoBalance™ product range that consists of drums and other packagings made with around 75 per cent recycled HDPE “obtained from postconsumer shipping containers”. One of the initial offerings, the company says, is the GP55 55-gallon (208-litre) tight head drum, which, made in Bradley, Illinois, “meets the competitive performance of standard drums with an Y1.6 liquid UN rating”.

“Containers made from PCR significantly reduce the need to use virgin resin. They also require less energy to manufacture than it takes to make virgin plastics from fossil fuels and divert materials headed to landfills by repurposing them into new products,” Greif states. As a result, the EcoBalance range can help shippers reduce their impact on the environment while also achieving their Corporate Social Responsibility (CSR) goals.

“Increasing pressures for more sustainable packaging has caused our customers to look for a more environmentally friendly product,” explains product management and development director Kevin Kling. “From a scientific standpoint, using PCR makes all the sense in the world. It creates a greater positive impact than other choices and, with the UN rating, customers don’t have to sacrifice performance to have green packaging.”

Indeed, the launch comes shortly after Greif was awarded a Gold Recognition Level for its environmental performance by EcoVadis, an independent rating agency specialising in CSR evaluation. The rating, Greif says, places it among the top 5 per cent of all companies evaluated by EcoVadis. “We are honoured to receive a Gold rating by EcoVadis,” says Ole Rosgaard, senior vice-president of rigid

industrial packaging and services, Americas, and global sustainability. “While there is more work to do, we are proud of how far we have come and our progress is a true testament to our commitment to creating shared value through The Greif Way.”

INCREASED INCOME

Meanwhile on the financial front, Greif has announced a first-quarter net income of $56.5m from net sales worth $905.7m.

This compares to the respective figures of $5.4m and $820.9m announced 12 months previously. “Greif delivered improved yearover-year results during the fiscal first quarter but our performance fell below our expectations,” says president and CEO Pete Watson. “Sales, operating profit before special

items and earnings each increased versus the prior-year quarter but were negatively impacted by weaker-than-anticipated Rigid Industrial Packaging & Services volumes in December caused by a temporary winter slowdown. In addition, raw material costs continued to accelerate, outpacing price adjustment mechanisms in that segment, and we experienced increased transportation costs across our global network.”

Nevertheless, the Rigid Industrial Packaging & Services division still saw its net sales increase from $561.5m over the period to a new figure of $615.4m, due primarily, the company reveals, “to a 7.5 per cent increase in selling prices on [its] primary products as a result of strategic pricing decisions and increases in index prices”. At the same, though, both gross profit and operating profit contracted, falling, respectively, from $112.4m to $110.4m and from $42.8m to $31.2m.

However, a somewhat rosier picture emerged in the company’s Flexible Products & Services business, which saw net sales increase from $69.7m to $80m. This was concurrent with a $2.1m increase in gross profit, which went from $13.1m to $15.2m, and a $2.6m increase in operating profit, which rose from $0.6m to $3.2m thanks “to strategic pricing decisions, product mix and higher volumes”. HCB www.greif.com

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MAUSER GOES SHOPPING

ACQUISITIONS • MAUSER HAS SIGNIFICANTLY EXTENDED ITS IBC CAPACITY IN NORTH AMERICA AND EXTENDED ITS IBC RECONDITIONING BUSINESS IN SCANDINAVIA

MAUSER HAS ACQUIRED the manufacturing assets of MaschioPack North America, an Atlanta-based producer of blow-moulded composite intermediate bulk container (IBCs). This acquisition, the company says, will provide Mauser not only with “the opportunity to expand its North American IBC footprint”, but also additional manufacturing support for its National Container Group (NCG) reconditioning arm. Meanwhile, Mauser “will continue to supply former MaschioPack customers from the Atlanta location while investing in the facility to align it with other Mauser product offerings”. Over the coming months, Mauser personnel will “work closely with the MaschioPack team and their former customers to ensure a seamless transition to the Mauser design of products”.

“We are excited to further expand our presence in the south-eastern US market,” says Mauser USA president and CEO Glenn Frommer. “This acquisition provides us the opportunity to more effectively service our North American customers while at the same time welcoming new customers into our family.”

“IBCs and reconditioned packaging are the two fastest growing segments within the industrial packaging industry,” adds Jeff DeLiberty, the company’s director of new markets and business development.

“These assets will not only serve as a critical part of Mauser’s growth strategy in North America but will also provide the necessary support for NCG as the reconditioning industry continues to expand.”

NORDIC EXPANSION

Meanwhile in Europe, Mauser’s NCG business has established NCG-Noreko, a new 51:49 joint venture with Noreko that will broaden

NCG’s geographical reach to include Scandinavia while bringing its total number of European sites to 14. “Named as NCGNoreko AS in Norway and NCG-Noreko AB in Sweden, the two Noreko companies [will] continue their business and will become fully integrated members of the NCG network in the EMEA region,” Mauser says.

“Building on more than 20 years of experience in the reconditioning business each, both joint venture partners will join forces to offer IBC washing, re-bottling and laundry services as well as HDPE recycling services to the Scandinavian market,” it continues, adding that NCG-Noreko will also “be responsible for all recollection services” for empty IBCs in the region. Operations will continue under the leadership of managing director Torstein Østensjø, “a former licensee and trusted long-time friend and partner of the Mauser family”.

Commenting on the news, Ernest van den Boogerd, head of NCG EMEA, states:

“Together with Torstein Østensjø, we are both convinced that the combination of our strengths will be to the benefit of our customers. We are committed to continue further expansion of our presence in the Scandinavian market and for providing bestin-class customer service and the market’s most comprehensive product/service offering.”

CHANGE AT THE TOP

In other news, Ken Roessler has been named CEO of SCI Packaging, which now oversees the combined operations of Mauser and BWAY following Stone Canyon Industries’ (SCI) 2017 acquisition of the Mauser Group from private equity firm Clayton, Dubilier & Rice. At the same time, Peter Schaefer has stepped down as Mauser CEO, although he will continue to serve on the SCI Board of Directors.

“Ken has successfully led and expanded BWAY for the past 15 years and we continue to believe his deep knowledge of the business, reputation in the debt and equity markets and his proven record for delivering results make him the ideal person to lead the consolidated company going forward,” Mauser says.

“We thank Peter for his strong leadership of Mauser for the past six years.” HCB www.mausergroup.com

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RECENT ACQUISITIONS HAVE ADDED EXTENSIVE IBC CAPABILITIES TO THE ICS PORTFOLIO 

BULLETIN

INDUSTRIAL PACKAGING

KLEIN TO LEAD ICPP

Thilo Klein (above) of German industrial packagings giant Schütz has been unanimously elected president of the International Confederation of Plastics Packaging Manufacturers (ICPP) at its recent General Assembly. He will now serve a four-year term at the Association’s helm, replacing outgoing president Jerry Geyer of Greif/USA. Vice-presidents Chris Lind (Mauser) and Dave Tatz (Megapack) were unanimously confirmed for another four-year mandate.

According to the statutes of the Association, the ICPP secretariat is hosted by the German Association for Plastics Packagings and Films (IK), with IK managing director Dr Jürgen Bruder also serving as ICPP general secretary. ICPP is accredited with consultative status at the UN and regularly attends the meetings of the UN Sub-Committee of Experts on the Transport of Dangerous Goods in Geneva. www.icpp.org www.kunststoffverpackungen.de

ISDI JOINS TRANSCAER

The Industrial Steel Drum Institute (ISDI) has become a sponsor of Transcaer, a voluntary educational outreach organisation in the US that educates and assists first responders in communities near transport routes on how to

prepare for and respond to a possible dangerous goods incident. “We’re delighted to connect with an organisation like Transcaer, which does a wonderful job of providing training and support for the first responder community,” says Kyle Stavig, chairman of ISDI and CEO of Myers Container and General Steel Drum. “We look forward to sharing information about steel drums that will help first responders do their jobs with greater safety.”

Commenting on the news, Keith Silverman, chairman of the National Transcaer Task Group and vice-president, global operations, quality and EHS at Ashland, states: “On behalf of the entire National Transcaer Task Group, I am thrilled to welcome Kyle Stavig, [ISDI executive director] Sue Nauman and the members of ISDI. ISDI represents the first industrial packaging organisation to become a sponsor and I know our first responders will benefit from the experience and expertise that they will bring to the table.”

Maryland-headquartered ISDI represents the interests of US steel drum manufacturers that together produce more than 26m 55-gallon (208-litre) units per annum. These drums, ISDI sates, “provide the safe transport of a variety of products, ranging from high-hazard chemical and petroleum products to food additives and concentrates”. Meanwhile, suppliers of materials and components to the industry serve as ISDI associate members. www.whysteeldrums.org www.transcaer.com

AIRGAS HONOURED FOR INTELLI-OX

Airgas Healthcare’s Intelli-Ox™ portable medical oxygen cylinder has received a 2017 Innovative Technology designation from Vizient, “the largest member-driven health care performance improvement company” in the US. The designation, Airgas says, “was based on direct feedback from hospital representatives who interacted with the Intelli-Ox oxygen cylinder at the Vizient Innovative Technology Exchange in Denver”.

The Intelli-Ox system, it continues, “features an advanced digital gauge to clearly and easily show the remaining time left at a given flow rate” and includes “an integrated valve and regulator assembly, lightweight aluminium cylinder as well as visual and audible alerts when the cylinder is nearly empty and needs to be replaced”. Meanwhile, measurements “are provided in volume, pressure and time increments, simplifying readouts and eliminating guesswork for care providers”. www.airgas.com

FLEXICON ADDS NEW MODELS

US-headquartered Flexicon has unveiled a new Twin-Centerpost™ flexible intermediate bulk container (FIBC) filler that boasts XP controls and reduced height posts for low headroom applications. As well as featuring “a manual fill head height adjustment to accommodate smaller bag sizes, pneumatically retractable bag hooks, an inflatable connector to seal the bag inlet spout and a feed chute outlet port for dust-free air displacement during filling”, it is also equipped with a NEMA 7/9 explosion-proof electrical system that controls the unit’s automated vibratory densification/ deaeration deck that stabilises big bags for storage and shipment.

“The dual post frame is a patented design that maximises strength and improves accessibility to bag hooks while simplifying construction and reducing cost,” the company states. While standard units are constructed of carbon steel with a durable industrial coating and stainless steel product contact surfaces, the new filler can also be supplied with an all-stainless construction finished to sanitary standards as needed. Moreover, Flexicon reports, it is also the first big bag filler to receive USDA acceptance. “The filler is available with a Flexicon® flexible screw conveyor, Flexi-Disc® tubular cable conveyor or Pneumati-Con® dilute-phase pneumatic conveying system to deliver a full range of

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NEWS

bulk materials from nearby or distant upstream sources,” it states. www.flexicon.com

BESPOKE HANDLING FROM STS Cornwall, UK-headquartered STS Bespoke Handling Equipment reports that it was recently commissioned to developed a new drum mixing and handling system for use in Zone 1 hazardous areas. “Our customer required a set of equipment to allow them to handle titanium powder; the powder was to be used in a 3D printing process,” the company says, explaining that the kit developed ultimately comprised of two parts, viz a drum inverter and a drum mixer.

Required for lifting drums of material into and out of the mixer, the drum inverter also features a dual-mast telescopic stacker able to raise and invert drums 180° for docking with custom sieving equipment. At the same time, the brief for the drum inverter also required round securing forks to allow for the loading and unloading of the mixer unit; a pneumatichydraulic powered lift; and a manual slew-ring rotation to reduce overall cost.

The drum mixer, meanwhile, which was “required for combining titanium powder into a homogeneous mixture for additive manufacturing”, needed to be air-powered and similarly ATEX-certified for Zone 1 applications. The result, STS says, was a unit capable of mixing a 600-kg drum of titanium powder at a rate of 4-5 rpm while utilising a “bespoke head assembly to suit specialist stainless steel drums”. www.sts-trolleys.co.uk

NEW PALLET LINE FROM WERIT

Werit has begun producing Euro H1 hygiene pallets for chemical, food and pharmaceutical applications at its plant in Buchholz, Germany.

“The new, completely automated production line is the most state-of-the-art of its kind in Europe,” the company says, adding that “the seven-figure investment” will enable significantly faster delivery times to the main markets of western Europe, particularly those of Germany, France, Belgium and the Netherlands.

“The new manufacturing line for Euro H1 hygiene pallets integrates an injection moulding machine, a welding machine and a milling system as well as quality control systems,” it continues. “The autonomous manufacturing cells and the cutting-edge

processing technology produce pallets of high dimensional accuracy and stability while maintaining a low weight tolerance.”

“For years, the Euro H1 plastics pallet has been the leading pallet when it comes to hygiene-sensitive applications in the food, chemical or pharmaceutical industries,” says Werit, which has been producing these units at other locations from more than 20 years.

“Given its GS1 Germany certification, the reusable load carrier is fully exchangeable. In addition to the GS1-label, the pallets are also DIN-plus-certified and carry the GS label for tested safety. Other features include the pallet’s high load capacity, its durability and its exceptional dimensional stability.” www.werit.eu

WWW.HCBLIVE.COM INDUSTRIAL PACKAGING 53

TRAINING COURSES

ACUTE ENVIRONMENTAL & SAFETY SERVICES

730 Bridge St West, Unit 3 Waterloo, Ontario N2V 2J4, Canada

T (+1 519) 747 5075 www.acuteservices.com

Transport of Dangerous Goods

• June 28 – Waterloo

Confined Space Entry

• June 21 – Waterloo

• July 19 – Waterloo

HAZWOPER

• July 3-6 – Waterloo

AITAC PO Box 146

Riddell’s Creek, VIC 3431, Australia

T (+61 3) 5428 6077

www.aitac.com.au

Sea Transport of Dangerous Goods

• June 4-5 – Tullamarine

Sea Transport of Dangerous Goods – Recertification

• June 6 – Tullamarine

Air Transport of Dangerous Goods

– Acceptance, Initial

• June 20-22 – Tullamarine

Air Transport of Dangerous Goods – Recertification

• June 7 – Tullamarine

• June 28 – Tullamarine

Dangerous Goods Driver Licence

• June 16-17 – Tullamarine

• July 14-15 – Tullamarine

ALL MODES DANGEROUS GOODS TRAINING

8 Laurel Road

Hatton Vale, QLD 4341, Australia

T (+61 7) 5411 4415

www.amdg.com.au

Dangerous Goods – Initial Air Acceptance

• May 22-24 – Melbourne

• June 5-7 – Brisbane

• June 6-8 – Perth

• June 13-15 – Melbourne

• June 19-21 – Sydney

• July 3-5 – Brisbane

• July 10-12 – Melbourne

Dangerous Goods by Sea –Function-Specific, Initial

• May 28-29 – Perth

• June 12-13 – Sydney

• July 9-10 – Brisbane

ATLAS COMPLIANCE

89 Devonshire Drive

Timberlea, Nova Scotia B3T 2J6, Canada

T (+1 902) 468 3371 www.atlascompliance.ca

Dangerous Goods by Air –Initial

• June 20-22 – Halifax

Dangerous Goods by Air –Refresher

• June 8 – Halifax

Dangerous Goods by Road –Initial

• June 18-19 – Halifax

Dangerous Goods by Road –Refresher

• June 7 – Halifax

BRITISH INTERNATIONAL FREIGHT ASSOCIATION (BIFA)

Redfern House, Browells Lane Feltham, Middlesex TW13 7EP, UK

T (+44 20) 8844 3625 www.bifa.org

Dangerous Goods by Air

• May 21-23 – Coventry

• June 4-6 – Newport

• June 11-13 – Feltham

• July 2-4 – Altrincham

• July 9-11 – Coventry

• July 9-11 – Feltham

Dangerous Goods by Air –Revalidation

• May 24-25 – Coventry

• June 5-6 – Newport

• June 14-15 – Feltham

• July 3-4 – Altrincham

• July 10-11 – Coventry

• July 12-13 – Feltham

Infectious Substances by Air

• May 15-16 – Watford

Dangerous Goods by Road

• May 21-23 – Feltham

• June 11-13 – Altrincham

• June 18-20 – Coventry

Dangerous Goods by Road –Revalidation

• May 22-23 – Feltham

• June 12-13 – Altrincham

• June 19-20 – Coventry

Dangerous Goods by Sea

• May 24-25 – Feltham

• June 14-15 – Altrincham

• June 21-22 – Coventry

Dangerous Goods Safety Advisor

• June 4-8 – Feltham

• June 4-8 – Manchester

CAMEON PO Box 17345 Edinburgh EH12 1DJ, UK

T (+44 131) 334 1929 www.cameon.com

Dangerous Goods Safety Adviser (DGSA)

• June 4-8 – Manchester

Dangerous Goods by Air

• July 2-4 – Manchester

Dangerous Goods by Road –Upgrade

• July 5 – Manchester Dangerous Goods by Sea –Upgrade

• July 6 – Manchester

CARGO TRAINING INTERNATIONAL PO Box 176 Shepperton TW17 8WP, UK T (+44 1932) 769682 P O Box 580026 Houston, TX 77258-0026, USA T (+1 281) 333 4672

www.cargotraining.com

Dangerous Goods by Air – ICAO (full course)

• May 21-23 – Birmingham, UK

• June 4-6 – Houston

• June 4-6 – Newport

• June 11-13 – Atlanta

• June 11-13 – Heathrow

• June 18-20 – Orlando

• June 25-27 – Dallas

• July 2-4 – Manchester

Dangerous Goods by Air –Revalidation

• May 17-18 – Heathrow

• May 17-18 – Manchester

• May 24-25 – Birmingham, UK

• June 5-6 – Houston

• June 5-6 – Newport

• June 12-13 – Atlanta

• June 14-15 – Heathrow

• June 19-20 – Orlando

• June 26-27 – Dallas

• July 3-4 – Manchester

Dangerous Goods by Road – ADR (full course)

• May 21-23 – Heathrow

• June 11-13 – Manchester

• June 18-20 – Birmingham, UK

Dangerous Goods by Sea (IMDG)

• May 17-18 – Houston

• May 24-25 – Heathrow

• June 11-12 – Houston

• June 14-15 – Atlanta

• June 14-15 – Manchester

• June 21-22 – Birmingham, UK

• June 21-22 – Orlando

DOT 49 CFR - Full Course

• June 13-14 – Houston

• June 28-29 – Dallas

• July 12-13 – Houston

• July 19-20 – El Paso

Dangerous Goods Safety Adviser

• June 4-8 – Heathrow

• June 4-8 – Manchester

Dangerous Goods Safety Adviser (Refresher)

• June 6-8 – Heathrow

• June 6-8 – Manchester

Radioactive Materials by Air (full course)

• June 7-8 – Houston

CHEM FREIGHT HONG KONG

Suite 907, Silvercord Tower 2

30 Canton Road, Tsim Sha Tsui Kowloon, Hong Kong

T (+852) 2961 4887

www.chemfreight.com.hk

IATA Basic DG Regulations

• May 28-June 1 – Kowloon

• June 11-15 – Kowloon

• June 25-29 – Kowloon

IATA Refresher DG Regulations

• May 23-25 – Kowloon

• June 4-6 – Kowloon

• June 20-22 – Kowloon

IATA Dangerous Goods Awareness

HCB MONTHLY | MAY 2018 54

• May 21 – Kowloon

• June 7 – Kowloon

• June 19 – Kowloon

DANGEROUS GOODS OF AMERICA

10400 NW 33rd Street, Suite 230 Doral, FL 33172, USA

T (+1 305) 871 3313 www.dga4u.com

Initial IATA & HMR Air

• June 4-6 – Doral

• July 9-11 – Doral

Recurrent IATA & HMR

• June 12 – Doral

• July 17 – Doral

IMDG Code & HMR Ocean

• May 14 – Doral

• July 16 – Doral

DG AIR FREIGHT

PO Box 140 Botany, NSW 1455, Australia

T (+61 8) 8234 1622 http://dgair.com.au

DG by Air – Initial

• May 21-23 – Adelaide

• June 6-8 – Sydney

• June 18-20 – Brisbane

• July 9-11 – Sydney

• July 16-18 – Melbourne DG by Sea – Initial

• May 24-25 – Adelaide

• June 13-14 – Sydney

• June 21-22 – Brisbane

• July 12-13 – Sydney

• July 19-20 – Melbourne

HAZMATEAM

12 Kimball Hill Road Hudson, NH 03051-3915, USA

T (+1 603) 882 1112 www.hazmateam.com

US DOT Hazardous Materials Regulations (49 CFR) Ground Transportation – Initial

• June 26-28 – Hudson

US DOT Hazardous Materials Regulations (49 CFR) Ground Transportation –Intermediate Refresher

• May 21-22 – Hudson

US DOT Hazardous Materials Regulations (49 CFR) Ground Transportation –Advanced Refresher

• June 12 – Hudson

DOT Manifesting and Function

Specific (49 CFR) Ground Transportation

• May 24 – Hudson

International Air Shipping –Refresher

• June 6-7 – Hudson

Transportation of Lithium Metal and Lithium Ion Batteries

• July 12 – Hudson

Incident Command

• June 18 – Hudson

OSHA Emergency Response Operations – Initial/Refresher

• June 20 – Hudson

Confined Space Entrant/Attendant

• May 30 – Hudson

Confined Space Rescue

• May 31 – Hudson

ICC COMPLIANCE CENTER

2150 Liberty Drive

Niagara Falls, NY 14304, USA

T (+1 888) 442 9628

88 Lindsay Avenue

Dorval, QC H9P 2T8, Canada

T (+1 888) 977 4834

www.thecompliancecenter.com

Shipping Dangerous Goods by Ground in Canada: Initial

• May 29-30 – Montreal

• June 19 – Vancouver

Shipping Dangerous Goods by Ground in Canada: Refresher

• June 12 – Montreal

Shipping Dangerous Goods by Air: Initial

• June 20 – Vancouver

Shipping Dangerous Goods by Air: Refresher

• June 13 – Montreal

JOHN GERRISH & ASSOCIATES

500 McCormick Drive Glen Burnie, MD 21061, USA

T (+1 410) 768 8356

www.jgatraining.com

Ground Transportation – 49CFR (Recurrent)

• June 11 – Glen Burnie

Hazardous Materials in Ground and Air Transportation

• June 11-13 – Glen Burnie

• July 16-17 – Glen Burnie

Hazardous Materials in Ground and Ocean Transportation

• June 11-12 – Glen Burnie

Air Force Manual (AFMAN 24-204)

• June 15 – Glen Burnie

• July 19 – Glen Burnie

PETER EAST ASSOCIATES

504 Centennial Park Centennial Avenue Elstree, Herts WD6 3FG, UK T (+44 20) 8953 6721

www.petereast.com

Carriage of Dangerous Goods by Air – Certification

• June 4-6 – Heathrow

• June 11-13 – Stansted

• June 18-20 – Southampton

• June 18-20 – Manchester

• June 25-27 – East Midlands

• July 2-4 – Heathrow

• July 9-11 – Stansted

Carriage of Dangerous Goods by Air – Revalidation

• June 7-8 – Heathrow

• June 14-15 – Stansted

• June 21-22 – Southampton

• June 21-22 – Manchester

• June 28-29 – East Midlands

• July 5 – Heathrow

• July 12-13 – Stansted

Carriage of Dangerous Goods by Road & Sea

• June 11-13 – Southampton

• June 18-20 – East Midlands

Carriage of Radioactive Material by Air

• June 7-8 – Heathrow

Carriage of Lithium Batteries by Air, Road & Sea

• May 21-22 – Northampton

• June 14-15 – Elstree

• July 16-17 – Elstree

Carriage of Excepted & Limited Quantities by Air, Road and Sea

• July 2-4 – Elstree

Dangerous Goods Safety Adviser

• June 4-8 – Heathrow

• June 4-8 – Manchester

ROADSAFE EUROPE

Unit 006, Solent Business Centre Millbrook Road West Southampton SO15 0HW, UK T (+44 23) 8070 2576

www.roadsafeeurope.com

ADR Initial

• May 21-25 – Southampton

• June 18-22 – Southampton

ADR Refresher

• May 30-June 1 – Southampton

• July 2-4 – Southampton

12 Gleneagles Court,

Brighton Road

Crawley, West Sussex RH10 6AD, UK

T (+44 1293) 536943

www.trainingteam.co.uk

Dangerous Goods by Air (Initial)

• May 21-23 – East Midlands

• May 21-23 – Heathrow

• June 4-6 – Glasgow

• June 11-13 – Bristol

• June 11-13 – Gatwick

• June 11-13 – Manchester

• June 11-13 – Newcastle

• June 18-20 – East Midlands

• June 18-20 – Heathrow

Dangerous Goods by Air Revalidation

• May 22-23 – Heathrow

• June 12-13 – Gatwick

• June 18-19 – Manchester

• June 19-20 – East Midlands

• June 19-20 – Heathrow

Radioactive Materials by Air

• June 14-15 – Gatwick

• June 14-15 – Manchester

Dangerous Goods by Road

• May 23-24 – Gatwick

• June 27-28 – Manchester

Dangerous Goods by Road –‘Top-Up’

• May 25 – Heathrow

• June 8 – Glasgow

• June 15 – Bristol

• June 15 – Gatwick

• June 15 – Newcastle

• June 22 – East Midlands

• June 22 – Heathrow

Dangerous Goods by Sea

• May 21-22 – Gatwick

• June 25-26 – Manchester

Dangerous Goods by Sea –‘Top-Up’

• May 24 – Heathrow

• June 7 – Glasgow

• June 14 – Bristol

• June 14 – Gatwick

• June 14 – Newcastle

• June 21 – East Midlands

• June 21 – Heathrow

TRANSCHEM TRAINING

The Legion, Wigshaw Lane

Culcheth, Warrington WA3 4LY, UK

T (+44 151) 488 0961 www.transchemtraining.com

ADR Initial

• May 21-25 – Warrington

• June 11-15 – Wakefield

• June 18-22 – Warrington

• July 9-13 – Wakefield

COURSES & CONFERENCES 55 WWW.HCBLIVE.COM
TRAININGTEAM

CONFERENCE DIARY

MAY

Tank Storage Connect

MAY 15-16, ROTTERDAM

Inaugural exhibition and networking event www.tankstorageconnect.com/

Hazards28

MAY 15-17, EDINBURGH

Conference and exhibition on best practice in chemical and process safety www.icheme.org/hazards28

UNITI Expo

MAY 15-17, STUTTGART

Third European convention for the retail petroleum sector www.uniti-expo.de

Transport Logistic China

MAY 16-18, SHANGHAI

Eighth international exhibition for logistics, telematics and transport www.transportlogistic-china.com

Argus Latin America LNG Summit

MAY 21-22, RIO DE JANEIRO

Third conference on regional LNG supply and demand trends www.argusmedia.com/events/argus-events/ americas/lng-latin-america/home/

Gas Shipping Americas

MAY 22-23, HOUSTON

Conference on opportunities in US LNG, LPG and ethane exports www.energy.knect365.com/gas-trading-shippingamericas/

LNG Fuels Summit

MAY 22-24, AMSTERDAM

Conference on small-scale LNG applications www.lngfuelssummit.com

AFPM Reliability & Maintenance Conference

MAY 22-25, SAN ANTONIO

Annual conference on improving reliability in the petrochemical and refining industry www.AFPM.org

Hazmat 2018

MAY 23-24, STRATFORD-UPON-AVON

11th annual conference for hazmat specialists www.the-ncec.com/en/emergency-response/ hazmat-event

Oil & Gas East Africa

MAY 29-31, NAIROBI

Seventh annual exhibition for the upstream and processing sectors in east Africa www.expogr.com/kenyaoil/

AEGPL Congress

MAY 31-JUNE 1, MONACO

Europe’s biggest event for the regional and global LPG sectors www.aegpl2018.com/

JUNE

FECC Congress

JUNE 4-6, NICE

Annual meeting of the European Association of Chemical Distributors www.fecc-congress.com

Posidonia 2018

JUNE 4-8, ATHENS

Biennial exhibition and conference for the global shipping industry www.posidonia-events.com

VCA Dangerous Goods Seminar

JUNE 6-7, DAVENTRY

33rd annual regulatory update conference www.dft.gov.uk/vca/dangerousgoods/dangerousgoods-seminar.asp

LNG Congress Russia

JUNE 6-8, MOSCOW

Fifth annual congress and exhibition on developments in Russian and Arctic LNG www.lngrussiacongress.com/?lang=en

Pumps & Valves

JUNE 6-9, BANGKOK

Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com

IAFC Hazmat Conference

JUNE 7-10, BALTIMORE

Annual international event for response teams www. events.iafc.org/micrositeHazConf/ homeHazConf.cfm

ILTA

JUNE 11-13, HOUSTON

38th annual operating conference and

trade show of the International Liquid Terminals Association www.ilta.org

FETSA Conference

JUNE 15, BERLIN

Annual event of the Federation of European Tank Storage Associations, prior to AGM www.fetsa.eu

Intertanko Annual Tanker Event

JUNE 18-21, ROME

Annual congress of the International Association of Independent Tanker Operators www.intertanko.com/News-Desk/Annual-Events/

EPCA Supply Chain Workshop

JUNE 20-21, BRUSSELS

Round-table meeting looking at how digitalisation will affect the petrochemical supply chain www.epca.eu

Chemical Logistics Forum

JUNE 20-21, ANTWERP

Inaugural forum on best practice in chemical logistics and supply chain management www.bvl.de/en/fcl

Tankbank 2018

JUNE 21-22, MARSEILLE

Annual networking event and conference for the liquids logistics sector www. events.tankbank.com.sg

Hazards Australasia 2018

JUNE 26-27, PERTH

Conference on process safety management in the chemicals sector www.icheme.org/events/conferences/hazardsaustralasia-2018.aspx

AUGUST

ChemEdge

AUGUST 14-17, NEW ORLEANS

Conference for the North American chemical distribution sector www.nacd.com/meetings/ce/2018-chemedge/

PPC Fall Meeting

AUGUST 26-28, SAVANNAH

Semi-annual meeting of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php

HCB MONTHLY | MAY 2018 56 COURSES & CONFERENCES

ROAD/RAIL/AIR INCIDENTS

Date Location Vehicle Type Substance Details Source

2/2/18 nr Burnside, road tanker gasoline Florida Rock & Tank Lines tank truck spilt more than 8,000 gal (30 m3) gasoline after driver suffered Somerset Kentucky, US medical emergency, hit rock wall; spill threatened to enter Lake Cumberland via drainage pipe Kentucky

2/2/18 Ennis, rail tank car asphalt Locals reported explosion, fire at US Polyco plant; operator said that tank wagon with asphalt had “blown Dallas Texas, US its top”; fire contained without injury; fire crews allowed blaze to burn out News

3/2/18 nr Loudonville, freight train propane 14 cars of 135-car NS train derailed between Loudonville and Perrysville; two overturned cars had propane, Mansfield Ohio, US zinc oxide, which caused concern for responders; propane tank said to be leaking; roads closed News-J’l

4/2/18 Sheikhpura, bowser LPG “Bowser” (possibly tank trailer) exploded during refilling at gas plant; facility, nearby oil mills engulfed as Geo News Bihar, India fire spread; ten people injured, one seriously; fire crews had situation under control in two hours

5/2/18 Baku, road tanker LPG Driver noticed fault while en route to load at Atuabo gas processing plant, stopped nearby at repair depot; Modern Western, Ghana tanker exploded during welding work, killing two and injuring two more; driver helping police Ghana

5/2/18 Grand Junction, road tanker gasoline Truck ran light at Highway 30, hit tank trailer with 8,000 gal (30 m3) gasoline; tank detached from cab, The Iowa, US rolled into ditch and caught fire; passing pickup engulfed in flames; two injured; fire allowed to burn out Messenger

6/2/18 Ajebo, road tanker gasoline Tanker with 33,000 litres gasoline was hit on Lagos-Ibadan Expressway by oncoming container truck; fire Vanguard Ogun, Nigeria broke out, killing eight people in container on truck; accident happened at single-lane diversion

11/2/18 nr Beijing, road tanker LPG Road tanker overturned on Beijing-Harbin Expressway, leaking gas (some sources said LNG); stream of gas Stuff China ignited, spreading fire along highway; several cars were caught up in fire but most drivers escaped unhurt

13/2/18 Kota Kinabalu, truck sulphuric Trailer carrying 32 IBCs with sulphuric acid overturned on Beaufort-Sipatang road after lashings holding it Malaysia Sabah, Malaysia acid to cab came apart on rough road; corrosive vapour cloud caused road to be closed during response Today

14/2/18 nr Windsor, road tanker diesel Some 6,000 gal (22.7 m3) diesel spilt when tank truck rolled over while making turn; spill was contained, Aiken S Carolina, US cleanup initiated; remaining fuel transferred; no injuries or long-term pollution reported Standard

14/2/18 Redlands, road tanker diesel, Driver lost control of semi-trailer tank truck, hit parked cars and overturned in parking lot of La-Z-Boy site, HIghland California, US gasoline causing fuel spill; part of load transferred, spill contained and cleaned up; driver hospitalised News

20/2/18 Nazarathpet, road tanker furnace oil Road tanker with 24,000 litres furnace oil caught fire after hitting post by side of Minjur-Vandalur bypass; The Chennai, India driver said tyre burst; falling sign caused sparks that ignited fumes; visibility affected by dense smoke Hindu

3/3/18 nr Ellisville, road tanker phenol Tank truck with molten phenol crashed, overturned on Highway 29, spilling up to 200 gal (750 litres) product; WDAM Mississippi, US responders prevented spilt product entering nearby creek; two homes evacuated; no injuries reported

5/3/18 nr Harding Lake, road tanker jet fuel US Army tank truck overturned on snowy Richardson Highway, spilling part of load of 2,600 gal (10 m3) News Alaska, US military-grade JP8 jet fuel from several holes in tank barrel; cause of crash unknown Miner

MARINE/INLAND WATERWAY INCIDENTS

Date Location Vessel Substance Details Source

3/2/18 Taoyuan, Hang Yu 11 oil Product tanker (3,000 gt, 2014) ran aground in storm while sailing north along coast; vessel was stuck for FleetMon Taiwan 18 days, badly damaged by waves in continuing bad weather; around 1 tonne oil leaked, remainder removed

7/2/18 nr Changzhou, Wan Zhong chemicals Chemical tanker suffered explosion, fire while underway on Yangtze River; one of four crew badly injured; Splash Jiangsu, China Si Hao preliminary investigation suggested failure to follow procedures for preventing static while unloading 247

8/2/18 nr Birsfelden, Eiltank 24 heavy oil Inland tanker with 1,800 t heavy oil grounded in Rhine after passing Birsfelden locks; some damage to outer Shipwreck Switzerland hull but no pollution reported; traffic suspended during inspection

HCB MONTHLY | MAY 2018 58
Log 10/2/18 Qawra, Hephaestus bunker fuel Bunker tanker (885 dwt, 1965), in cargo, dragged anchor in heavy weather and ran shore; captain injured, FleetMon Malta rest of crew made it ashore; no indication of oil leak 24/2/18 Vancouver Island, HMCS Calgary bunker fuel Naval vessel spilled some 30,000 litres F76 marine distillate in Strait of Georgia; booms, pads available but Ship & BC, Canada spill expected to evaporate; investigation under way Bunker 27/2/18 Port William, fuel High winds blew down wooden jetty on Shuyak Island, spilling fuel bladder with some 3,000 gal (11.4 m3) fuel Alaska Alaska, US into water; all oil thought to have leaked; concern over impact on wildlife; bad weather hampered response Disp News 28/2/18 nr Nanjing, Tong Da Explosion aboard chemical tanker underway on Yangtze River in ballast; one crew injured, one missing; Splash Jiangsu, China Hua 0098 fire extinguished in a few hours; authorities investigating cause 247 INCIDENT LOG

MISCELLANEOUS INCIDENTS

Date Location Plant type Substance Details Source

3/2/18 Linshu county, chemical

Four killed, six injured by explosion at Jinshan Chemical Plant during maintenance work; plant’s owner now Xinhua Shandong, China plant in police custody while investigation continues into cause

4/2/18 Benin City, gas bottling LPG Fire broke out at Idos Gas plant, reportedly when generator ignited leaking gas during transfer from road Nigerian Edo, Nigeria plant tanker; four people in plant badly burned; locals managed to prevent blaze from spreading to nearby homes Observer

5/2/18 Howrah, recycling chlorine Suspected chlorine leak during cutting of old gas tanker sent many people to hospital; responders failed to Telegraph W Bengal, India plant stem leak so workers dropped tanker into river where it exploded; case of negligence entered against owner (Kolkata)

6/2/18 Heanor, factory cyanide IBC with dilute cyanide was punctured by forklift after being delivered to wrong address (!); spilt Derby Derbyshire, UK product entered nearby brook but was thought to pose no danger as it was by now even more diluted Telegraph

12/2/18 Corio, oil refinery crude oil Viva reported leak of 1,300 litres crude oil at its Geelong-area refinery; fire and hazmat crews worked with RSOE Victoria, Australia employees to control, clean up leak; cause unclear; refinery is no stranger to leaks

17/2/18 Dieppe, vegoil vegoils Two maintenance workers were killed by explosion in storage tank at Saipol vegetable oil factory; cause Hazmat Normandy, France factory unknown, police investigating; building badly damaged in ensuing fire Nation

18/2/18 West Fargo, pipeline diesel Fire broke out in storage tank with 30,000 bbl (4,770 m3) diesel at Magellan Pipeline facility; locals advised KVRR N Dakota, US terminal to shelter in place; fire extinguished eight hours later

19/2/18 Commerce City, asphalt asphalt Fire broke out in storage tank at United Asphalts plant near Suncor refinery; no evacuations necessary, no Denver Colorado, US plant injuries reported; fire crews brought blaze under control Post

20/2/18 Rajpura, food processing ammonia Three killed, 11 injured by ammonia leak at Himalaya Fresh Protein Factory plant; reports mentioned earlier The Punjab, India plant explosion, suggesting possible blast in tank; locals rushed to help, adding to injury total Tribune

23/2/18 Jeedimetla, pharmaceutical chemicals Major fire broke out at Seutic Pharma plant in Hyderabad, trapping seven workers; range of chemicals at the NIE Telangana, India plant site, which fed fire; chemical reactor blast thought to have been cause; three of the injured critical

SAFETY 59

PHARMA FORKS

STATIC • FACILITIES HANDLING PHARMACEUTICALS NEED

TO BE AWARE OF THE CHANGES TO EN 1755 AND WHAT THEY MEAN FOR HANDLING EQUIPMENT, SAYS PYROBAN

WITH MANY DIFFERENT types of lift trucks essential to transport flammable ingredients, pharmaceutical companies usually specify explosion-protected units that comply with ATEX 2014/34/EU, says sector specialist Pyroban. However, while EU standard EN 1755 helps to achieve ATEX 2014/34/EU compliance, the standard has now changed, with EN 1755:2015 coming into force this past November and superseding EN 1755:2000.

“The changes to EN 1755 affect pallet, stacker or reach trucks, VNA and any counterbalance trucks used in storage or production areas inside,” says Pyroban’s UK and Ireland sales manager Rob Vesty.

“Outdoor activities are also affected, for example in bulk storage areas where there are tanks of solvents, or waste storage areas. Waste management companies are also affected, as well as suppliers to the pharmaceutical industry.”

While most of the trucks affected by this change will be used in Zone 1 or Zone 2 areas, many are also needed in Zone 21 or 22 areas where powder is the hazard. “Static buildup and friction can create enough energy to cause ignition, so one of the key changes to EN 1755 was that static is now considered a ‘normal’ occurrence in Zone 2 hazardous areas,” he notes. “This affects the technical design of the truck and elements like tyres, seats, arm rests, cabin sides and hydraulic systems and more.”

While Pyroban’s ATEX conversions can help address the technical requirements of the updated EN 1755:2015 standard, pharmaceutical firms need to be aware of how

this change may now affect their fleet on a day-to-day basis and in terms of maintenance and parts supply. “Pharmaceutical sites could face downtime if explosion-protected parts supply is not considered early enough by procurement teams or the lift truck dealer, as lead times can be longer,” Vesty warns.

“Many of these businesses have large fleets over numerous sites, so it could make a big difference to the operation.”

NOT JUST STATIC

As well as static, there are also many other ways by which a standard forklift could be an ignition source in a pharmaceutical setting. For example, this could be from a spark emitted by an item of unprotected electrical equipment or simply the heat given off by motors, brakes and/or other components.

Importantly, EN 1755:2015, Pyroban states, “now requires changes to any device or controller carrying out a safety function, which includes gas detection systems”.

To this end, Pyroban’s system6000™ includes the use of gas detection, restricted breathing enclosures, stainless steel cladding for forks and surface temperature cooling to ensure that motors, brakes, electrics and other components remain below the auto-ignition temperature of the flammable materials in question, with pharma firms typically requiring T4 temperature class systems that have a temperature limitation of 135˚C. “system6000 is a popular solution for Zone 2 applications, particularly where cleanliness is important,” Vesty says. “It is a clean, simple conversion with very little added on to the exterior of the truck to compromise hygiene and it’s simple to use.”

“Even in hazardous zones, pharmaceutical production lines must have high uptime. If a truck can’t perform a particular action, it can render a whole batch of product useless. This makes a proper service and maintenance regime vital,” he continues. “Safety and quality are top priorities in the pharmaceutical industry. Being aware of the recent changes to EN1755 will help companies with potentially explosive atmospheres ensure that their people, and their brands, are protected.” HCB www.pyroban.com

HCB MONTHLY | MAY 2018 60 SAFETY
FORKLIFTS OPERATING IN POTENTIALLY HAZARDOUS ATMOSPHERES NEED TO COMPLY WITH A REVISED STANDARD, SOMETHING WITH WHICH PYROBAN IS WELL PLACED TO HELP 

THE NEW ORANGE

MULTIMODAL • A BUSY SESSION SAW PROGRESS MADE BY THE UN EXPERTS ON SEVERAL ONGOING TOPICS. IT IS HEARTENING

to the Sub-committee and the parent Committee, was to retire on 30 November.

THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 52nd session in Geneva from 27 November to 6 December 2017. Duane Pfund (US) chaired the meeting, with Claude Pfauvadel (France) as vice-chairman.

Experts from 24 countries took part in the session, with observers from three more, along with 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 Organisation (IMO), the World Health Organisation (WHO) and 24 non-governmental organisations.

This second session of the 2017/18 biennium was, as is often the case, faced with a lengthy agenda that included a lot of new proposals. The Sub-committee will aim to complete its discussions on this new material in time for agreement at the fourth session of the biennium and adoption by the parent Committee in December 2018. Those amendments will appear in the 21st revised edition of the UN Model Regulations on the transport of dangerous goods, which will be reflected in the modal regulations due to enter into force during 2021.

Given the work that will be necessary to meet that schedule, the Sub-committee was concerned that Olivier Kervella, secretary

The chair, vice-chair and several delegations had appealed for his retirement to be postponed, in line with UN General Assembly resolution 70/244, but had received no response. Further, appointment of a head of section had been postponed pending the arrival of Yuwei Li as the new director of the Sustainable Transport Division in February 2018. A further post in the section, which has been filled with a temporary appointment, was also due to fall vacant in February.

EXPLOSIVES MATTERS

As is the normal process, papers relating to explosives were remitted to a Working Group chaired by Ed de Jong (Netherlands), which met during the first week of the session.

The Sporting Arms and Ammunition Manufacturers’ Institute (SAAMI) contended that the disruption criteria in test series 6(d) are too subjective; it urged that these should be deleted. There was some support for the problem identified by SAAMI but not for its solution. However, the Working Group felt that a review of the disruption as well as other acceptance criteria would be worthwhile; in particular, a definition of ‘hazardous effects’

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TO SEE THAT
CLARITY OF THE TEXT IS SEEN AS IMPORTANT
THE UN EXPERTS HAVE A LOT TO DO BEFORE THE END OF THIS YEAR, INCLUDING MORE CHANGES TO THE BATTERY REGULATIONS 

might be beneficial. SAAMI is likely to return with a revised proposal at the next session.

Germany returned to the topic of the stabilisation of nitrocellulose. The Subcommittee had already accepted the need for additional tests and the Working Group had identified that the 3(c) thermal stability test in the Manual of Tests and Criteria is not suitable for nitrocellulose and its mixtures. It urged the inclusion of the Bergman Junk test and the Methyl Violet Paper test in the Manual. An intersessional working group led by the European Chemical Industry Council (Cefic) had generally agreed with Germany’s proposals, although it offered some amendments. Cefic and Germany will work on a formal proposal for the next session.

Work is also progressing on the classification of industrial nitrocellulose and desensitised explosives in supply and use situations, according to Chapter 2.17 of the Globally Harmonised System (GHS) of classification and labelling of chemicals. Cefic and SAAMI will prepare a formal proposal for the next session.

The UK also returned to a long-running proposal: the expansion of the list of highconsequence dangerous goods to include Division 1.6 explosives. The argument is that, while explosives assigned to this Division present a lower hazard during transport, they remain a risk should they fall into the wrong hands. The proposal had previously received general agreement and on the basis of a formal proposal it was accepted that Division 1.6 explosives should be added to Table 1.4.1.

At the moment, the only UN entry in this Division is UN 0486 articles, explosive, extremely insensitive, 1.6N. However, the way the change has been made leaves if free for further entries to be covered by the requirement, should new entries be added in the future.

The UK had also been looking at the packing instructions for explosives and identified what it felt was an unintentional error. Packing instruction P130 is assigned to 35 entries and the UK paper suggested that LP101 should be assigned to all of them as well. The US agreed, noting that its domestic regulations already do so. Conversely, Canada felt that LP102 is a better

match. There was no consensus so the UK said it would consider the comments made and may submit a new proposal.

The Working Group on Explosives is also looking at how GHS addresses the topic; this is an important issue, since GHS deals exclusively with intrinsic hazards, whereas the Model Regulations recognise the hazard mitigation measures effected by means of specific packaging, particularly in Class 1. Sweden updated the Working Group on the outcome of an informal correspondence group, which had drawn up two alternative schemes for classifying explosives under GHS; the Sub-committee felt it would be appropriate for the TDG and GHS Subcommittees to take a closer look during their joint meeting in July 2018.

Germany had investigated the various fire test standards and confirmed that ISO 14451-2 represents an improvement on ISO 12097-3. A formal proposal will be made at the next session.

SAAMI had offered at the previous session a means of transporting small samples of explosives (25 grams or less) shipped under UN 0190. That proposal had been received favourably and it now returned with a formal paper illustrating how the topic is addressed, via a special permit, in the US. It suggested adoption of two new UN numbers, one for solids and one for liquids, a specification for the containers to be used, and a special provision. The Working Group offered some suggestions and alternatives and SAAMI

promised to return with a formal proposal at the next session.

An informal document from Cefic addressed the transport of energetic samples for further testing, although it seemed to test the understanding of the experts. Comments were made as to how the proposal could be improved and Cefic will offer a revised version for intersessional discussion.

An informal paper from the Institute of Makers of Explosives (IME) queried the point of UN 0222, which at least in the US does not relate to any commercial material. If it were deemed obsolete, perhaps this entry could be removed. Other experts explained that it retains some usefulness in the classification of contaminated ammonium nitrate or for fertilisers that fail test series 2. It was agreed that UN 0222 should remain in the Dangerous Goods List.

Finland proposed a new UN number for mines with a bursting charge that meet the Division 1.6D criteria. The Working Group considered that, if such articles meet the test series 7 criteria they should be classified under UN 0486, Division 1.6N and that there is no need for a specific entry.

The Council on Safe Transportation of Hazardous Articles (COSTHA) asked for the Working Group’s opinion on the meaning of ‘safety devices’ in the proper shipping name of UN 3268. Specifically, it asked if micro gas generators, which performs the same function as a seat-belt pretensioner, fall under the description, as its members are finding »

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variations in the interpretation on the part of different competent authorities. Some classify these articles under Class 9, others do not.

A range of views were expressed; some experts felt that, as micro gas generators can be used in other applications, they cannot be transported as UN 3268; others felt that this entry should be assigned purely on the characteristics of the article, not on its intended use. Some felt that the current entry covers micro gas generators. The one point of agreement was that the provisions for safety devices currently in the Model Regulations had been developed to address only those intended for use in vehicles, vessels or aircraft. The COSTHA representative said he would submit a further document at the next session to allow for more discussion before a decision is taken.

The US sought the extension of the default classification table for fireworks to include UN 0431 pyrotechnic articles. These are often similar in nature to consumer fireworks but designed for other purposes, such as for theatrical effects. The Working Group was sympathetic to the idea but felt that the proposal was too broad and could allow inappropriate classification. The US will likely return with a more specific proposal.

CLASSIFICATION AND PACKAGING

Germany proposed extending the scope of UN 2990 to include self-inflating recovery devices as well as life-saving devices. Most experts, though, felt that the current extent is appropriate. Germany may return with a revised proposal giving more justification for its idea.

Another paper from Germany proposed an additional entry for UN 1390 alkali metal amides of packing group I, in addition to that for material of packing group II already in the Dangerous Goods List. Recent testing on sodium amide has determined that it meets PG I criteria. The experts agreed and adopted the additional entry.

The US expert suggested it would also be useful to have an entry for PG III material and promised to submit a proposal. The expert from China said that a Class 8 subsidiary hazard should also be indicated; the Sub-committee could not make a decision without the relevant data but would be keen to see if that is the case.

Canada noted that, while 2.0.1.3 states that substances of Division 6.2 are not assigned to packing groups, the Dangerous Goods List has PG II in column (5) against UN 3291 clinical waste unspecified, nos. It felt that this was an error. The experts agreed to delete that reference, on the understanding that packaging should meet the performance requirements for PG II as shown in the relevant packing instructions.

A joint paper from Germany, Cefic and the Dangerous Goods Advisory Council (DGAC) sought to tidy up some errors in the assignment of polymerising substances. The paper said that UN 2522 2-dimethylaminoethyl methacrylate, Division 6.1, PG II has very similar properties to UN 3302 2-dimethylaminoethyl acrylate, which had earlier been identified as a polymerising substance. The experts agreed with the argument and added ‘stabilised’ to the end of the proper shipping name for UN 2522 and ‘386’ in column (6) of the Dangerous Goods List.

On the other hand, UN 2383 dipropylamine, which had been identified as a polymerising substance, does not in fact display such characteristics. Again, the experts concurred and deleted ‘386’ from column (6) for this substance. Both these changes have been placed in square brackets pending confirmation at the next session.

At the previous session there had been general support for the idea that large articles of UN 3164 could be carried unpackaged or in packagings not meeting the specifications of Chapter 6.1. Germany returned with a formal proposal, noting that there are some large articles subject to packing instruction P003 that have a mass exceeding 400 kg and which can, therefore, not be transported at all within the scope of the Model Regulations.

Germany offered two options and the Sub-committee opted for the simpler solution. In the Dangerous Goods List, “PP32” is added in column (9) against UN 3164, and PP32 itself is revised with the addition of the words “and robust articles consigned under UN 3164” after “3358”.

In a joint submission, DGAC and Cefic opened discussion on the issue of packagings that conform to more than one design type. Such packagings are in widespread use and offer industry a deal of flexibility without added costs. However, uncertainty among carriers and enforcement bodies can lead to the rejection of shipments using such packagings (which include intermediate bulk containers – IBCs – and larger packagings).

DGAC and Cefic proposed the addition of a new 4.1.1.3.1 to deal with the issue but, after discussion and input from other trade associations, a solution put forward by the International Confederation of IBC Associations (ICIBCA) was preferred. This will involve the addition of new paragraphs in Chapters 6.1, 6.5 and 6.6 to specifically allow packagings to bear more than one mark. Those new texts are currently in square brackets, pending a formal proposal for the next session that will also looking at the issue of multiple approvals.

The Compressed Gas Association (CGA) and European Industrial Gases Association (EIGA) felt that the hazards posed by pyrophoric gases during transport are not

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being properly communicated. They noted that GHS has recently adopted definitions for pyrophoric gases and proposed that similar criteria should be introduced into the Model Regulations along with new nos entries for pyrophoric mixtures and for those pure pyrophoric gases not already listed. There was general support for the idea and a lunchtime working group hammered out some details. CGA and EIGA will submit a revised proposal at the next session.

Canada proposed the revision of packing instruction P801 in an effort to improve compliance and the safe transport of batteries and, more specifically, to clarify the requirements for the transport of used batteries. Its paper identified a number of shortcomings in the provisions as they stand. The submission generated some differences of opinion, leading to the submission of a revised proposal. However, it was felt that this needed to be made by means of an official submission, which Canada may bring to the next session.

ELECTRIC STORAGE SYSTEMS

The Medical Device Battery Transport Council (MDBTC) submitted in an informal document urging discussion of what it called “specific challenges” in providing the lithium battery test summary document along the supply chain. The paper included a number of

questions to prompt discussion, along with MDBTC’s opinion.

At the paper had been submitted rather late, the Sub-committee had not had time to consider it in detail but did provide some initial feedback. The Portable Rechargeable Battery Association (PRBA) will take up a point on the release of confidential business information in a paper for the next session.

Meanwhile, the International Air Transport Association (IATA) picked up on a similar issue, highlighting what it saw as an anomaly between the requirements of 2.9.4(g) introduced in the 20th revised edition of the Model Regulations, which requires “manufacturers and subsequent distributors” of cells or batteries to make the test summary available, and 38.3.5 of the Manual of Tests and Criteria, which extends a similar requirement to manufacturers of devices containing those cells or batteries. The Sub-committee pointed out that the Model Regulations apply only to dangerous goods and that some manufactured products containing cells or batteries may not meet that criterion. If they do, then the product manufacturer is a “subsequent distributor”.

France provided a report on the informal working group on data gathering for the hazard classification of lithium batteries, which had met in Paris in early November 2017. The aim of the work is to develop a rationalised system of classification, based on the hazards presented by particular cells and batteries. The parties involved have been collecting data on such factors as heat release rate, gas flow, toxicity, state of charge, response to external heating, and the potential release of hydrogen fluoride. The group will continue to collect and analyse data and develop an appropriate test scheme. Other experts were encouraged to contribute any relevant data they may have.

PRBA and the European Association for Advanced Rechargeable Batteries (Recharge) noted that the ICAO Technical Instructions have a special provision, A181, that allows »

BATTERY-POWERED MEDICAL DEVICES OFTEN NEED TO BE SHIPPED QUICKLY

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packages containing lithium batteries that are both contained in and packed with equipment to be marked simply as “…packed with…”. This is useful in cases such as power tools, which often contain both. The Model Regulations have no such provision, which makes life difficult for shippers using a combination of transport modes. The associations proposed a similar provision at the end of special provision 230. The Sub-committee supported the idea in principle but felt that further work was needed on the proposed text; a revised proposal will be put to the next session.

PRBA and Recharge fared less well with another proposal, relating to the transport of damaged or defective lithium cells and batteries. Their paper stated that the current requirement in special provision 376 to ensure that such batteries “do not conform to the type tested” is redundant, as those handling batteries in return shipments do not have the equipment or training to make such a judgment. Most experts were of the view that SP 376 does not require re-testing but it was recognised that the Model Regulations should reflect that interpretation. The proposal was withdrawn but PRBA will submit a revised version, based on the comments received.

The UK made a presentation on sodium-ion batteries, an emerging technology that needs to be covered by the Model Regulations. It was suggested that a new UN number should be

assigned and that consideration should be given to the transport of damaged and defective sodium-ion batteries, similar to that in place for lithium ion and lithium metal cells and batteries. The Sub-committee agreed that provisions should be developed but felt that more information was needed. A new document will be submitted at the next session.

TRANSPORT OF GASES

CGA and EIGA updated the Sub-committee on work to develop a common position on provisions for closures of pressure receptacles but said they had received only limited interest from other parties. They still feel a need for a solution and said they would initiate discussions in the first quarter of 2018 with the aim of drawing up a formal proposal.

Germany came with a proposal to extend the applicability of special provision 392, which relates to fuel gas containment systems containing flammable gases, to other gases. SP 392 is used by the automotive industry in the transport of such containment systems for disposal, recycling, repair, inspection or maintenance and, as such, they are often filled with others gases, some of which are listed dangerous goods (e.g UN 1956 compressed gas, nos) but are not flammable. The RID/ ADR/ADN Joint Meeting had discussed this point and felt it warranted urgent attention but also that, for the sake of modal harmony,

it should be put to the TDG Sub-committee as well.

The Sub-committee accepted the argument and agreed for now to add “392” in column (6) of the Dangerous Goods List against UN 1002, 1006, 1013, 1046, 1056, 1058, 1065, 1066, 1080, 1952, 1956, 2036, 3070, 3163, 3297, 3298 and 3299. This change is currently in square brackets, as the proposal was made in an informal document and requires a follow-up official proposal.

MISCELLANEOUS PROPOSALS

IATA contended that the text of 5.2.1.1, relating to the size of the marking of the UN number on packages, is unclear and confusing, particularly with regard to the marking of small packages. It offered two solutions to help clarify the situation but neither received approval. Most experts felt that the texts offered by IATA would not make the position any clearer, although it was agreed that the current text is not perfect. EIGA also felt that any change should make specific mention of gas cylinders. IATA withdrew the proposal.

Belgium had noted that, while there are specific provisions in Chapters 6.1, 6.3, 6.5 and 6.6 relating to the preparation of test samples for the drop test for plastics packagings, only one – 6.3.5.3.6.2 – specifies that the temperature of the test sample and its contents should be maintained for at least 24 hours. Its paper felt that this should be mirrored in the other relevant paragraphs, since as they stand they appear to allow test institutes to reduce the temperature of test samples to -18˚C and to leave them for only a short period before performing the test, thereby possibly carrying out the test on a packaging that has not cooled down entirely.

Some experts supported Belgium’s idea while others were not convinced. The expert from Belgium said this showed that test practices vary between countries, which could result in different safety levels. The matter will likely be raised again.

Another paper from Belgium addressed what it saw as a superfluous requirement in

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THE EXPERTS ARE HAVING TO DEAL WITH NEW BATTERY CHEMISTRIES AND TESTING REQUIREMENTS

terms of the routine maintenance of IBCs. As the definitions in 1.2.1 currently read, cleaning is part of ‘routine maintenance’ and therefore, in accordance with 4.1.2.4, the IBC should be marked with the state in which the cleaning was carried out and the name of the party performing the cleaning. There is, Belgium’s paper said, no value in knowing this.

Several experts agreed but some did not and, as the paper was submitted late, an official proposal will be drawn up for the next session.

Germany sought to clarify 6.5.2.2.1 and 6.5.2.2.2 to highlight that the maximum permitted stacking load for IBCs only needs to be included in the pictogram. The Subcommittee agreed with the argument and, after discussion, opted to delete the last row in the table in 6.5.2.2.1 and the corresponding footnote b.

The US proposed allowing packagings that have been approved for the carriage of liquids to be used to carry solids. It reasoned that, as the testing of packagings for liquids is more strenuous than those for solids, there is in fact an additional safety benefit. Furthermore, the US Hazardous Materials Regulations have included an authorisation for the practice, with certain conditions, since 1991 and no incident attributable to this authorisation have been recorded.

The Sub-committee was not convinced by the argument, noting that packagings are already permitted to undergo testing both with liquids and solids and can bear both markings.

Germany addressed 4.2.1.17, which details additional provisions relating to the inspection of pressure relief devices on portable tanks intended for the transport of substances of

Class 8, suggesting that it would be logical to extend the requirement to substances that have a Class 8 subsidiary hazard. EIGA pointed out that this is not necessarily justified in the case of gases. A revised proposal will be submitted taking account of the comments made.

Canada proposed a number of technical changes in Section 41 of the Manual of Tests and Criteria relating to the impact testing of portable tanks and multiple-element gas containers (MEGCs). These were agreed by the Sub-committee. Canada will also propose consequential amendments to the ISO 1496-3 standard.

An informal paper from Belgium addressed the minimum shell thickness of portable tanks used for the carriage of non-refrigerated liquefied gases, noting that portable tank instruction T50 does not specify any shell thickness while TP19 and TP21, which can also apply to tanks for nonrefrigerated liquefied gases, do. It proposed a change to 6.7.3.4.1 to clarify the situation. The experts agreed in principle but asked Belgium to submit the proposal in an official document at the next session.

A similar outcome befell other informal papers from Belgium, the first on a similar topic aiming to clarify the shell thickness of tanks used for UN 1017 chlorine and UN 1079 sulphur dioxide in TP19. The second dealt with the provision of holding time information on the transport document.

Russia noted that RID and ADR have adopted provisions for tank-vehicles, demountable tanks, tank containers and tank swap bodies with tanks manufactured of fibre- »

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reinforced plastics (FRP). Such provisions are thus far absent from the Model Regulations and the International Maritime Dangerous Goods (IMDG) Code and Russia proposed filling that gap, supporting its proposal with technical detail. Russia has also taken the proposal to IMO.

The Sub-committee supported the idea in principle but several experts considered that an intersessional informal working group should be set up to hammer out the details. A group of experts prepared draft terms of reference for the work. The US offered to lead a correspondence group.

Switzerland noted some errors in 5.2.2.2.2, specifically the omission of the required colour in three places. The Sub-committee agreed and adopted the changes as corrections to the 20th revised edition of the Model Regulations.

Russia and Austria proposed a number of amendments to section 5.5.3, which defines special provisions applicable to cargo transport units that present a risk of asphyxiation due to the presence of cooling or conditioning agents such as dry ice, refrigerated liquid or refrigerated argon. The paper noted the practice of using gaseous nitrogen during the loading of terephthalic acid in containers fitted with liner bags in order to reduce the risk of explosion and the formation of acidic dust. In such a scenario, the nitrogen is not used as a coolant or conditioner and is not in liquid form but it does nevertheless present a similar asphyxiation hazard for personnel carrying out the operation.

The Sub-committee agreed; “or nitrogen” was added after “(UN 1951)” in the text in parentheses at the end of 5.5.3 and a new Note was added:

In the context of this section the term “conditioning” may be used in a broader scope and includes protection.

There are further changes in 5.5.3.6.2.

GLOBAL HARMONISATION

ICAO presented information on some recent decisions made by its Dangerous Goods Panel (DGP) that have wider ramifications. Those included changes to the training provisions, which reinstate the high-level framework for general awareness, functionspecific and safety training provided in the Model Regulations.

DGP adopted provisions for samples of energetic materials to be assigned to UN 3223 or 3224. It was noted that the Model Regulations do not indicate how to describe such substances so DGP added the word “sample” to the proper shipping name. This might have been an inadvertent omission on the part of the TDG Sub-committee.

DGP made some editorial revisions to the new special packing provisions PP94 and PP95, which were incorporated in packing instruction 459 in the Technical Instructions. These were offered for consideration by the Sub-committee.

DGP had also spotted some inconsistencies in the use of the term “material”, which might have different meanings depending on the context. The Sub-committee was invited

to consider the use of the term in 2.3.2.1.1, 3.5.1.4(a) and SP 163 in the Model Regulations.

DGP assigned special provision A176, which aligns with SP 356 in the Model Regulations, to UN 3259 as well as UN 3528 and 3166. The Model Regulations only has it against UN 3166.

The Sub-committee noted ICAO’s comments and invited it to submit official proposals for the next session to enable the improvements to be adopted.

IMO reported on the work of its Subcommittee on Carriage of Cargoes and Containers (CCC) in the preparation of Amendment 39-18 to the IMDG Code. CCC decided against including ‘bulk containers’ in 5.3.1.1.2.2 as they are not used for Class 1 substances. In 5.2.2.2.1.1.2 it drew up some amendments to the provisions for labels, which might be adopted by other modes, and it re-worded part of LP903.

CCC also works on the International Maritime Solid Bulk Cargoes (IMSBC) Code and it had drawn up individual schedules for seed cake (UN 1386 and 2217). It is expected that Amendment 05-19 to the IMSBC Code would be prepared by the Editorial & Technical Group in April 2018.

The Sub-committee decided that two points in the IMO presentation warranted corrections to the 20th revised edition of the Model Regulations. It deleted “and bulk containers” from 5.3.1.1.2(b) and in the Glossary of Terms in Appendix B replaced “significant hazard” with “significant risk”.

Germany had identified a number of other places where corrections to the text of the 20th revised edition of the Model Regulations might help the modal authorities as they transpose the provisions for their respective regulations for entry into force in 2019. These were mostly deemed acceptable, although there was some debate about the proposed revision of SP 392. In the end it was decided to adopt an amended version, so the second sentence of SP 392(c) will read: If only one valve exists or only one valve works, all openings with the exception of the opening of the pressure relief device shall be closed as to be gastight under normal conditions of transport;

In 2.8.3.2, “the grouping shall be based” is replaced by “the assignment shall be based”.

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In the second paragraph of P907, “filling density” is replaced by “filling ratio”. In TP10 in 4.2.5.3, “beyond the date of expiry of the last testing” is replaced by “beyond that date”. The proper shipping name for UN 3543 is amended to read:

ARTICLES CONTAINING A SUBSTANCE WHICH IN CONTACT WITH WATER EMITS FLAMMABLE GASES, NOS.

Another paper from Germany noted that UN 3363 now applies to articles for which a proper shipping name does not exist. Consequently, articles of UN 3537 to 3547 do not need to be reclassified as UN 3363 when transported empty and/or uncleaned. The Sub-committee confirmed that this is the case. Some experts felt that a note would be valuable to help consignors select the appropriate entry. The expert from Switzerland offered to submit a proposal for the next session.

There was much discussion about the need to amend the proper shipping name of UN 3363; on the basis of proposals drawn up by a lunchtime working group it was eventually agreed to:

• At the beginning of the description of UN 3363 in the Dangerous Goods List, add “DANGEROUS GOODS IN ARTICLES or”, and add the same entry to the Alphabetical Index

• Add “3363 DANGEROUS GOODS IN ARTICLES or” in 2.9.2 under “Other substances or articles presenting a danger during transport…”

• In the first sentence of SP 301, replace “machinery or apparatus” by “articles such as machinery, apparatus or devices”; in subsequent sentences, “machinery or apparatus” is replaced by “articles”; the same changes are made to P907.

These changes will apply to the 21st revised edition of the Model Regulations.

Note was taken of ongoing work relating to the GHS, including the testing of oxidising substances and the use of the Manual of Tests and Criteria in the context of the GHS. A formal submission for some amendments to the Manual will be submitted at the next session.

The Netherlands reported on intersessional work to clarify the scope of 1.1.1.2 and to what extent the Model Regulations should be applied to dangerous goods that are not themselves the goods being transported but are carried on the vehicle. This is becoming more urgent given the increasing use of lithium battery-powered sensors on vehicles. Work will continue. HCB

The next, 53rd session of the UN Sub-committee of Experts on TDG will begin in Geneva on 25 June.

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FLY BY WIRELESS

THE GLOBAL FREIGHT transport industry is increasingly moving towards electronic communication and the use of digitalised information, to improve efficiency and reduce costs. It is inevitable that regulators and other authorities are following suit, no more so than in the air mode, where the International Air Transport Association (IATA) has been working hard to develop electronic versions of established tools.

A major step forward in that effort is the adoption of the e-Dangerous Goods Declaration (e-DGD) standards, announced during IATA’s World Cargo Symposium in Dallas, Texas in March 2018.

The e-DGD is an electronic approach to manage the IATA Dangerous Goods Declaration (DGD), leveraging industry initiatives to digitalise data and embrace data sharing platform principles. “This aligns with and supports industry initiatives to modernise air cargo processes efficiently and share critical data among stakeholders that need it,” says IATA. “Implementing the e-DGD requires cooperation between all stakeholders, including shippers, forwarders, carriers, ground handling agents and thirdparty providers.”

IATA says that implementing the e-DGD with clearly defined data governance will improve transparency, traceability and data quality; as a result, process efficiency will be improved and there will be fewer errors and delays.

“The e-DGD demonstrates the air cargo industry’s commitment to modernise

processes. The challenge now is implementation so that the benefits can be realised by the supply chain and, more importantly, by our customers,” says Glyn Hughes, global head of cargo at IATA.

PROOF OF THE PUDDING

The e-DGD has been developed by IATA with key support from four partners, which confirmed the proof of the concept: Air France-KLM Cargo, Lufthansa Cargo, Swiss WorldCargo and Cargologic.

“The e-DGD is an important step in the digitisation of airfreight documents,” says Elisabeth Herelier, executive vicepresident of Air France Cargo. “By using data sharing principles, the e-DGD brings a new opportunity to introduce further automation and artificial intelligence exploration in air transport processes. Our ultimate goal is to increase quality, transparency, efficiency and customer satisfaction. Air France-KLM Cargo is proud to be among the inspirers and architects of this achievement at CDG airport.”

Dr Jan-Wilhelm Breithaupt, vicepresident of global handling at Lufthansa Cargo, adds: “e-DGD is one important component of Lufthansa Cargo´s digitisation strategy to provide a holistic digital environment for our customers. Only when all stakeholders of the supply chain find benefits in the solution will digitisation be successful on such a large scale. This was taken into account for the e-DGD standard, and we´re happy to perform the pilot project with industry partners in our hub in Frankfurt.”

Ashwin Bhat, head of cargo at Swiss WorldCargo, says: “e-DGD is a powerful step forward for the air cargo industry and the digitisation in this offering can translate to direct benefits for Swiss WorldCargo customers. We anticipate that it will ensure a standardised, successful way of working, thus continuing the efficient collaboration between all our partners and stakeholders within the supply chain.”

CHECKING COMPLIANCE

A second project to come to fruition in time for the World Cargo Symposium is

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AIR • TWO NEW DIGITISED INITIATIVES FROM IATA AIM TO BENEFIT ALL PLAYERS IN THE SUPPLY CHAIN BY MAKING INFORMATION MORE ACCURATE AND MORE TIMELY
GREATER USE OF DIGITAL SYSTEMS SHOULD REDUCE ERRORS AND SPEED SHIPMENTS 

DG AutoCheck, a digital solution that allows the air cargo supply chain to check the compliance of the shipper’s DGD against all relevant rules and regulations contained in the IATA Dangerous Goods Regulations (DGR).

DG AutoCheck enables electronic consignment data to be received directly, supporting the digitisation of the cargo supply chain. Optical Character Recognition (OCR) technology also transforms a paper DGD into electronic data. This data is then processed and verified automatically using the XML data version of the DGR. DG AutoCheck also facilitates a ground handler’s or airline’s decision to accept or reject a shipment during the physical inspection stage by providing a pictorial representation of the package with the marking and labelling required for air transport.

“The DGR lists over 3,000 entries for dangerous goods, each one of which must

comply with the DGR when shipped,” notes David Brennan, assistant director for cargo safety and standards at IATA. “The paper DGR is 1,100 pages long. Manually checking that each Shipper’s Declaration is compliant and the package(s) are correctly marked, labelled and packaged is a complex and time-consuming task. Automation with DG AutoCheck brings us a giant step forward. The cargo supply chain will benefit from greater efficiency, streamlined processes and enhanced safety.”

GETTING BIGGER ALL THE TIME

“The air transport industry handles in excess of 1.25m dangerous goods shipments per year,” observes Nick Careen, senior vice-president for airport, passenger, cargo and security at IATA. “With air cargo growth forecast at 4.9 per cent per year over the next five years this number will rise significantly. To ensure that air cargo

is ready to benefit from this growth the industry needs to adopt modern and harmonised standards that facilitate safe, secure and efficient operations, particularly in relation to carriage of dangerous goods. DG AutoCheck is a significant step towards achieving this goal.”

DG AutoCheck was developed with the help of an industry working group made up of more than 20 global organisations, including airlines, freight forwarders, ground handlers and express integrators.

“The air cargo supply chain is currently undergoing a major digital evolution. Collaboration across the industry is essential if the goal of a digitised electronic end to end messaging platform is to be realized,” Careen adds. “There is no time to lose; our customers already expect the efficiency of electronic documentation throughout the supply chain.” HCB www.iata.org

REGULATIONS 71

NOT OTHERWISE SPECIFIED

CAREFUL WITH THAT CORAL

Here on the back page we are used to seeing the same old errors cropping up time after time, but here’s a story that’s new to us.

Ten people were taken to hospital in March from a village in Oxfordshire, UK; they were all suffering what reports called “flu-like symptoms” and eye irritation. About 50 emergency response personnel, including a hazardous area response team and three ambulances, descended on the village.

According to one scientist, who just happened to be inside the cordon visiting his mother, the incident happened when someone was cleaning out a fish tank; Dr Mike Leahy told the BBC that, when stressed, coral can sometimes release palytoxins (didn’t they crop up in some episodes of the Danish/Swedish crime series The Bridge?) These toxins can be lethal but generally only when ingested. Nevertheless, six people in the house and four firefighters were affected, along with two dogs.

Firefighters wearing full gas-tight suits disposed of the coral.

TOILET TALK

This is a more familiar story: five people suffered burns last month when a fire broke out in a septic tank in the Mirpur area of Dhaka, Bangladesh. According to local reports, a caretaker at the site opened the cover of the tank in preparation for cleaning it out. It would seem that he had the right idea – up to a point – and was allowing any toxic gases to vent before going in.

Where the right idea came to an end was when he dropped a piece of flaming paper into the tank to check for the presence of gases. Indeed, there was some gas – enough to be ignited by the lit paper and cause an

explosion. The caretaker and four members of the family who own the land where the septic tank was situated were all injured.

In a similar ablution-related incident in April, this time in India, a man described as a “manual scavenger” died from asphyxiation while cleaning a toilet pit in Kundapur, Karnataka. The deceased was known to have been cleaning other toilet pits and the homeowner who employed him wanted his done too, as his daughter was getting married the next week.

It seems that this is something of a problem in parts of India. “The authorities have prohibited manual scavenging and advise the use of machines to repair or remove sewage blocks,” one local activist told the New Indian Express. “Courts have issued clear and specific guidelines in this regard. Before undertaking any sewage-related works, the sewage should first be removed, and tests conducted to find out if there is poisonous gas.”

The homeowner has been charged with negligence under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act and Prohibition of Employment as Manual Scavengers and their Rehabilitation Act.

BANG GOES THE CHEVVY

Speaking of poisonous gas, a man was badly injured in April in Winona, Minnesota when his car (a 1999 Chevrolet Blazer, for you car-spotters) exploded. He managed to crawl from the wreckage and declined medical treatment. Interviewed by police, he admitted to having been huffing propane in the car, after which he lit himself a cigarette. The rest is history.

Police did not release his name because, apparently, he had not committed a felony.

HCB MONTHLY | FEBRUARY 2018 72 BACK PAGE
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