The first time I moved house as an adult, I had two black bin liners and a suitcase; I moved on the bus. The second time I had a friend help me, and we moved everything on the back seat of his Mini.
I’ve just moved house again – and I hope it’s for the last time. It took several weeks to get the old house organised, with several trips to the tip and charity shops. It took six men two whole days to move everything from one house to the next. And there are still boxes waiting to be unpacked.
Life is, in one respect, a long process of accumulating stuff. It will all have to go in the end, of course, but not just yet. Perhaps younger generations will not have the same need for accumulation; they stream music rather than buying it in hard copy, and watch subscription TV rather than buying DVDs. That shift has happened in the office: we no longer have filing cabinets full of company annual reports and press releases as it’s all available online. But there were boxes and boxes of CDs, LPs and books involved in my latest move.
If life is a matter of accumulating stuff, it’s also a matter of accumulating knowledge and experience; and while knowledge is available online – and it’s certainly useful to have Google and Wikipedia on hand when checking details – experience and the understanding that comes with it are not.
When I was a young man, moving my life in a small car, my lack of possessions was matched by a lack of awareness, and a poor understanding of how other people and the world at large actually behave. Awareness and understanding eventually arrived as a result
of living in that world and interacting with people; the process ran alongside the acquisition of stuff but was not a result of it. I hope that awareness and understanding have helped me do my job better as I’ve got older.
Some time in the next few years I will eventually hang up my notebook and do something different for the rest of my life; my counterpart at the German magazine Gefährliche Ladung, Uwe Heins, is doing just that this month and I wish him a long and happy retirement. I am confident that his publisher has put in place a succession plan, as a lot of knowledge and understanding will be retiring with him.
The same goes for all companies and especially those active in the world of dangerous goods transport, where it can take a long time to build up all the arcane knowledge and a useful network of fellow professionals.
I spoke about this some weeks ago in my regular ‘Thoughts’ piece on HCB TV. (If you missed it you can catch up with all episodes via HCB’s YouTube channel.) I had several responses to that piece, one of which reminded me that it is not just companies that run the risk of losing experience when their senior staff retire – it applies just as much to the regulatory authorities. We have lost some good people from those ranks in recent years.
Book learning and following written procedures are useful but will never give you the full story. Take time to learn from the old heads in the office while they’re still here.
VOLUME
Letter from the Editor
Years Ago
Learning by Training
Construction kit
Annual terminal expansion survey
Attracted to tanks
Reporting back from StocExpo
Out with the old Vopak sells on strategy switch
Come together Inter and NuStar get integrated
Picture perfect Eddyfi improves graphics
No entry
Robotic inspection with Re-Gen
View from the Top OPW’s Dave Morrow
News bulletin – storage terminals
Up we go again ITCO reports further fleet growth 33
Let’s talk tanks John Sutton talks to HCB
Electric ideas
LogiChem leads on digitisation
Shining example
Chemical Express leads on CSR
Decades of success 50 years of Kombiverkehr
The better route RTChem pushes rail advantages
Different and complicated Thielmann designs your tank
Decontamination zone Schütz keeps contents clean
News bulletin – tanks and logistics
Parents of the revolution Pöyry argues for digital readiness 64
Open all hours E+H leads open source solutions
Business value Fleetmonitor offers problem solving 68
Over to Android Touchstar switches platforms 72 Trust and verify Transplace adds risk assessment 74 Data trail Hupac leverages Nexiot systems 75
Annual dialogues
Looking forward to Fecc Congress 78
Expect the worst CBA reports short-term uplift 80
Be prepared
GPCA catches up with digitisation 82
News bulletin – chemical distribution 86
Training courses 88 Conference diary 90
Incident Log 92
Tools for the job
Exis aims to curb container fires 94
Yes and no
Final decisions from the UN experts 98
The new orange Main changes in the Model Regulations 106
Snap to it US falls in line with lithium batteries 111
Not otherwise specified 112
Annual LPG tanker fleet review
Focus on tank container manufacturing FIBC special report
Latest equipment for tanks
Stephen
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Production Manager
By any standards, March 1989 had been a bad month for dangerous goods-related incidents and the May 1989 issue of HCB caught up with some of the most notorious.
A van exploded in an industrial estate in Peterborough, UK after catching fire; a fireman called to deal with it was killed, unaware that the unmarked vehicle was carrying six tonnes of explosives. The chemical tanker Maasgusar sank off the coast of Japan with all crew lost, after an engineroom fire spread to the 25,000-tonne cargo of various chemicals. And a small cargo ship, Perintis, sank in the English Channel in foul weather; the loss went unnoticed in the general press until it emerged that the ship had been carrying various pesticides and a container carrying lindane was found floating in the sea.
March 1989 was rounded off with the holing of the crude oil tanker Exxon Valdez in Prince William Sound, Alaska and the spill of some 35,000 tonnes of oil. It was clear early on that the master was drunk at the time and had left the third mate in control. US authorities responded promptly, passing the US Oil Pollution Act (OPA 90) the following year.
HCB’s editor, Mike Corkhill, unsurprisingly covered these incidents in his comment column, under the headline ‘Black March’. What he had to say about it then is just as relevant today:
The price that has to be paid for a hazardous materials incident is always high. Loss of life and damage to property and the environment are bad enough but the costs of the repercussions must also be borne in mind. Occasionally, such incidents reveal flaws or shortcomings
in the existing regime of controls and, quite rightly, these gaps should be plugged. However, there is always a danger that the public outcry will prompt an over-reaction and unrealistically strict measures will be implemented which cause more harm than good. That would be too high a price to pay.
Mike was optimistic that the new vehicle placarding and driver training requirements in the UK’s proposed Road Traffic (Carriage of Explosives) Regulations would have a positive impact on safety but, like many at the time, felt that the rushed call for mandatory double hulls on oil tankers would raise more problems than it would solve. OPA 90 did indeed include such a requirement and, following the losses of the Braer and Sea Empress off the UK coast in the 1990s, the call for similar global action became unstoppable.
In the event, fears that the use of double hulls would create another risk – through the potential for explosive vapours to collect in enclosed spaces – have not been realised. In fact, OPA 90 and other similar regulations, along with advances in tanker inspections through the SIRE and CDI initiatives and the greater role taken by port state control activities, have largely cleaned up the business of shipping oil and chemicals in bulk. The term ‘substandard shipping’, which appeared so often in HCB in the 1990s, is now a thing of the past.
Mike finished his column with these words: “There is no such thing as safe hazardous materials, only safe handling, storage and transport.” We can all agree with that, even if we may disagree on how to achieve it.
A few days ago I was invited by Cofano, a risk management software company, as keynote speaker at their seminar on ’Steering Risks’ in Holland. I showed the audience a presentation on how to collect information (all of it) and use that as the energy to maintain business stability and thus reduce risks. I told that in fact all we have to do is observe nature and use the science of control - aka cybernetics - to steer our organisation to operate within the boundaries of functionality or the limits of reality which I coined ’Realimiteit’.
And hooray, they understood. I finally had been able to simplify the message from complex scientific research into a visual experience which proved that ‘reality is real’. To prevent risks we must endeavour to obtain and use all relevant information (even that information that might be inconvenient).
Nature does that too. A human being’s automated survival maintenance system continuously collects information which keeps him or her alive as long as possible. To understand this, the first thing to do is to exchange our usual ‘risk analysis’ method and replace this with ‘risk synthesis’ method which includes all relationships and all interdependent networks, not forgetting people, environment and society.
I know, this may all sound a bit technical and it probably is - until other ingredients to prevent risks are added: ethics and morality. Without these spices a cake can’t be baked. Ethics as a risk controlling requisite is an essential part to build and sustain a business for the long term. When morality is ignored, the direct risk will be vulnerability of the whole organisation. The objectivist philosopher Ayn Rand described it as follows: ‘You can’t have your cake and eat it too.’
Did you follow the news that a major oil company will be planting trees to offset its CO2 emissions? As a business ethicist my question would be: What is the true intention? Is this an ulterior motive to justify the continuation of emitting CO2? Could planting trees be used to suppress cognitive dissonance within the organisation?
Because reality is real, morality is real too. We can’t be half genuine. Path-dependent industries would have but one choice left and that would to redesign harmful industries which are ‘negative interdependent’ i.e. benefiting some, but at the cost of… , into positive interdependent industries, i.e. benefiting everyone. This can be done from within such organisations if management would just mimic nature. Quite simple really.
Peter Drucker put this distinction dramatically when he said there is a difference between doing things right (the intent of reformations) and doing the right thing (the intent of transformations). The righter we do the wrong thing, the wronger we become. When we make a mistake doing the wrong thing and correct it, we become wronger. When we make a mistake doing the right thing and correct it, we become righter. Therefore, it is better to do the right thing wrong than the wrong thing right. Is going green right or wrong?
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.
completed projects falls on two areas: North America – particularly along the US Gulf –and northern Europe. The major midstream players in the US oil patch continue to expand their gathering systems, with associated storage needs, but are also concentrating very much on opening up new export facilities for crude oil and for products derived from the shale gas expansion; this latter element includes some major investment in LNG export facilities but also terminals to handle the export of ethane (in growing volumes and in ever-larger ships) and, more lately, ethylene.
As investment continues downstream in the US, taking advantage of comparatively low-cost petrochemical feedstocks, it can be anticipated that more work will be done in this area.
More surprisingly, perhaps, there is also evidence of a return of confidence in northern Europe, with a lot of investment currently underway in the Netherlands and Belgium. Much of this work will be needed to support some massive investment in the oil refining and petrochemicals sectors, especially around Antwerp, although operators will still be faced with the thorny issues of road congestion and growing congestion in the port waters themselves.
BULK LIQUIDS STORAGE terminal operators
need to be alert to changes in the global marketplace for the products they handle – not just petroleum products and liquid chemicals but also vegoils, animal fats and, increasingly, new fuels. The mega-trends of today include the radical realignment of hydrocarbon trade flows as a result of new production streams, most notably in North America, and similar developments in many chemicals sectors.
In addition, growing pressure to move towards a decarbonised world is impacting the product slate that terminal operators are working with. It is notable that some new capacity currently being built, particularly in north-west Europe, anticipates those changes and will be able to accommodate new, non-hydrocarbon fuels. More immediately, terminal operators are also tooling up
to be able to help shipowners meet the requirements for the use of low-sulphur fuels as from 1 January 2020 under the mandate imposed by the International Maritime Organisation – the so-called ‘IMO 2020’ rule. All this is going on at a time when terminal operators are not enjoying the level of returns on their investment that they had become used to. Persistent backwardation in many product markets has discouraged stockholding, while price volatility and economic uncertainties around the world are also affecting cargo owners’ behaviour. It is all the more impressive that operators are taking the steps they are under such business conditions.
The focus of terminal development illustrated by this year’s review of current and recently
Elsewhere, there is a lot of work going on in Mexico, taking advantage of liberalisation of the oil supply sector, and in South Africa and Malaysia, the latter benefitting from the fact that it is now difficult to find available land in Singapore as much as the growing level of domestic demand for tankage.
NORTH AMERICA Gibson Energy, Alberta Gibson Energy has initiated three separate expansion plans for the Hardisty terminal in Alberta over the past year. In August 2018 it announced a 1m bbl (160,000 m³) addition, along with expansion of pipeline connectivity. “Our announcement represents the continued delivery of the strategy we outlined at the start of the year, providing visibility to the infrastructure projects to exceed the top end of our growth capital target range through the end of 2019,” said Steve Spaulding, president/ CEO, at the time.
Another 1m bbl expansion was announced in October 2018, consisting of two 500,000- »
bbl tanks and representing the third phase of building in the ‘Top of the Hill’ section of the terminal. And in March this year Gibsons announced yet another new tank, taking the total expansion up to 3.6m bbl, of which some 1.1m bbl entered into service ahead of schedule. All of the new capacity is underpinned by long-term agreements. Current capacity now stands 10m bbl, with another 2.5m bbl due to be added by the end of 2020.
In October 2018, Kinder Morgan reported that the joint-venture Base Line Terminal in Edmonton was “materially complete” and it began operations before the end of the year. The 4.8m-bbl crude oil terminal is fully contracted under long-term takeor-pay contracts.
USD, Alberta
USD Group has expanded unit-train loading capacity at its Hardisty South terminal in Alberta, boosted by new crude oil storage contracts at its Hardisty complex. The work was completed early this year and increased takeaway capacity by 50 per cent to 225,000 bpd.
During the second quarter 2018, Kinder Morgan announced the construction of two new distillate tanks and increased railcar unloading capacity at its Vancouver Wharves terminal, with work expected to be completed in mid-2020.
Greenergy, Ontario
Greenergy is to expand fuel distribution capacity in eastern Ontario through an arrangement with Canadian Rail Equipment Works and Services to locate a new rail-toroad fuel supply terminal in its railyard in Johnstown. The terminal will feature a fully automated truck loading system allowing road vehicles to load fuel products directly from rail
tank cars through conventional terminal truck loading racks, delivering best in class gate-togate times.
Tallgrass, Louisiana
Tallgrass Energy is to build a new crude oil terminal, Plaquemines Liquids Terminal (PLT), in a joint project with Drexel Hamilton Infrastructure Partners and, in a public/ private partnership, the Plaquemines Port & Harbor Terminal District. The terminal, which is permitted for up to 20m bbl (3.18m m³) of capacity, will be linked to Cushing by a new 30-inch pipeline to be built by Tallgrass. The terminal is expected to be fully operational by mid-2020 and will be able to handle post-Panamax tankers; Tallgrass says it anticipates building a separate offshore pipeline extension to give the option to load VLCCs, beginning in 2021.
Contanda is to build a new bulk liquids terminal in Houston, to support its strategic expansion into petrochemical and hydrocarbon storage. The Contanda Houston Jacintoport Terminal will provide up to 3.0m bbl (475,000 m³) of storage at Contanda’s existing Jacintoport facility, located adjacent to its steel terminal.
“This project meets the growing needs of our customers who have requested additional storage and logistics services to support their growth initiatives,” said Jerry Cardillo, president/CEO, launching the project in
August 2018. “The new Contanda Houston Jacintoport Terminal will strengthen our position as a leading storage provider in our growing renewable, petrochemicals and hydrocarbons markets and allow us to continue our growth platform in and around the Houston Ship Channel.”
Alongside the automated terminal, Contanda will build a deepwater dock, two barge docks and truck and rail infrastructure. Commissioning is scheduled for fourth quarter 2019.
Contanda is also working on a second new liquids terminal in the area, the Contanda Houston Greens Bayou Terminal, to serve the local refining and petrochemical sectors. A site has been secured on the Houston Ship Channel and Contanda is aiming for the terminal to be operational in 2021.
Enterprise, Texas Enterprise Products Partners and Navigator Holdings began construction of their jointventure ethylene export terminal, which will be located at Enterprise’s existing Morgan’s Point terminal complex on the Houston Ship Channel, in second quarter 2018. The terminal will have refrigerated storage for 66m lb (30,000 tonnes) of ethylene and is designed to handle up to 1m tonnes per year. The facility is due onstream in fourth quarter 2019, once a new pipeline link from Enterprise’s Mont Belvieu ethylene complex is completed.
Enterprise is also increasing LPG loading capacity at the Enterprise Hydrocarbon
Terminal on the Houston Ship Channel. On completion in the second half of 2019, the expansion will allow up to six VLGCs to load simultaneously, and to load a single VLGC within 24 hours. “Enterprise is already the largest exporter of propane in the world and this expansion project will increase our ability to export LPGs from the EHT facility by another 30 per cent with nominal capital investment,” said AJ ‘Jim’ Teague, CEO, announcing the project in September last year. Enterprise has also announced plans to build an offshore crude oil export terminal off the Texas coast. The planned terminal will be able to load VLCCs without the need for lightering vessels. “On the heels of our second successful loading of a VLCC at the Texas City terminal, we are now planning to expand our capabilities to load crude oil faster and more cost efficiently,” says Teague. “Given the long-term outlook for growing supplies of US crude oil production, increasing global demand requiring super tankers, and the future limitations of Gulf Coast port and lightering capacities, we are confident this project will be embraced and supported by both domestic and international customers.”
LBC Freeport Terminal is currently working on construction of a 100,000-m³ terminal adjacent to the MEGlobal monoethylene glycol manufacturing plant at Oyster Creek in Freeport. On completion later this year, the terminal will handle mono- and diethylene glycol for MEGlobal. LBC says the terminal, which will be an integrated part of MEGlobal’s supply chain, will be equipped with a range of tanks in sizes from 320 m³ to 26,000 m³.
Magellan Midstream Partners reports that the first phase of the joint-venture marine terminal in Pasadena, Texas came onstream this past January, offering 1m bbl of storage and a Panamax dock; a second phase, involving 4m bbl of storage and an Aframax dock, is due for completion before the end of the year.
Moda Midstream has competed an upgrade at a berth at its Ingleside Energy Center in Texas to enable VLCCs to load. Announcing the opening in January 2019, president/CEO Bo McCall said: “Today we are loading our fourth VLCC at MIEC since late December. With today’s commissioning of our upgrades to Berth 2A, we now have the US Gulf Coast’s most efficient crude export loading rates.” Moda has now moved on to the next phase of work, which will double loading rates to 160,000 bbl/hour and will see an additional 10m bbl of crude oil storage capacity come onstream over the course of 2019.
NuStar Energy is to build 600,000 bbl of new tank storage at its Corpus Christi North Beach terminal as part of a longterm agreement with Trafigura to expand export capacity for South Texas crude oil. The expansion will raise total capacity at the terminal to 3.9m bbl, of which 1.3m bbl will be devoted to Trafigura.
Phillips 66 has over the past year added 2.2m bbl of capacity at its Beaumont crude oil terminal. The work, carried out in two phases, takes total capacity at the site to 14.6m bbl. A further 2.2m bbl is expected to be in service early in 2020.
Pin Oak Corpus Christi closed the acquisition of Gravity Midstream Corpus Christi LLC from EnCap Flatrock Midstream at the start of 2019. The assets include an operational terminal with 737,500 bbl of storage, a crude processing unit, an asphalt plant, rail loading/unloading and truck rack facilities, access to Aframax and barge docks and pipeline connections to nearby refineries. Since then, POTAC LLC, the terminal operating wing of Pin Oak Corpus Christi, has signed a ten-year exclusive use agreement with the Port of Corpus Christi, which will allow it to berth tankers up to Suezmax size at Public Oil Dock 14, constructed by the port in 2016. Pin Oak and its contractor Strike have started construction of nine pipelines under the ship channel, eight of which will connect to the dock.
“We believe speed-to-market is imperative for our customers, and we are aligned with the Port of Corpus Christi to be ready for oil by the third quarter of 2019,” says C Mike Reed, CEO of Pin Oak Holdings. Pin Oak will also build another 2m bbl of crude oil storage, with the support of a long-term contract.
Seabrook Logistics, the 50/50 joint venture between Magellan Midstream Partners and LBC Tank terminals, is to build nearly 110,000 m³ of additional capacity for crude oil and condensate at its terminal in Seabrook. »
A new dock will be added, capable of handling Suezmax tankers. The new work is due for completion later this year.
“With increased crude oil production in the Permian Basin and other prolific regions, demand for crude oil storage and export capabilities continues to grow in the Houston Gulf Coast area,” says Michael Mears, Magellan’s CEO.
Exports began at the Seabrook terminal in mid-2018, with the facility having an initial storage capacity of 380,000 m³. Magellan notes that there is the potential to expand both storage capacity (to a total of 870,000 m³) and dock capacity.
Texas COLT, a proposed joint venture between Enbridge, Kinder Morgan and Oiltanking, submitted an application this past February to the US Maritime Administration (MarAd) to construct and operate a deepwater crude oil export port located off the coast of Freeport, Texas. The project includes an offshore platform and two offshore loading single point mooring buoys capable of fully loading a VLCC in 24 hours; it will also have an onshore tank terminal with storage capacity of up to 15m bbl. The partners envisage the facility being in service in 2022. Subsequently, Kinder Morgan pulled out of the joint venture, saying it was not core to its overall business.
Vopak, Texas
Vopak commissioned 138,000 m³ of new chemical capacity at its wholly owned terminal in Deer Park in late 2018; the work takes overall capacity at the site over 1.25m m³.
Vopak is progressing with a major expansion of its wholly owned terminal in Alemoa; an additional 106,000 m³ of tank capacity for chemicals and oil products is due for completion in the third quarter and will take total capacity to nearly 280,000 m³.
Sempra Energy’s Mexican subsidiary Infraestructura Energética Nova (EInova) has won a public tender organised by the Integral Port Authority of Topolobampo to build and operate a marine storage terminal to handle imports of fuels, chemicals and other liquids. IEnova will be responsible for the full implementation of the project, valued at some $150m, which is due to commence operations late in 2020.
Separately, IEnova and Trafigura have formed a 51/49 joint venture to develop a terminal for the receipt, storage and distribution of refined products in Manzanillo, Mexico. A service agreement covers half of the planned 1.48m bbl capacity at the site, which is expected to be onstream by the end of 2020.
The Manzanillo terminal will be IEnova’s sixth refined products terminal in Mexico.
CLH has acquired a 60 per cent share in Mexican company HST, which is building a near-100,000-m³ oil products storage terminal in the Valle de México, due to open in 2020. The terminal will have pipeline connections and is located conveniently for road and rail access for the distribution of fuels to the country’s largest market. José Luis López de Silanes, president of the CLH Group, says the deal “constitutes a new step forward in the company’s process of internationalisation and one which enables us to continue to move forward in the American continent”.
This past February Vopak announced a 110,000m³ expansion of its Veracruz terminal to improve petroleum product throughput. Vopak noted that Mexico is a deficit market that has recently been opened up; it already has high commercial coverage for the expansion, which is expected to be fully commissioned by the end of 2020. The wholly owned site, one of three Vopak terminals in Mexico, currently has a capacity of 104,400 m³ in 78 tanks, mainly handling chemicals and vegoils.
Vopak’s new wholly owned petroleum products terminal in Bahía las Minas on the Atlantic
coast in Panama is due to come onstream in phases over the course of this year, with the initial 120,000 m³ opening in the first quarter. The rest of the 360,000-m³ facility, which will largely handle bunker fuels, is due to open before the end of the year.
Total Petroleum commissioned two new 300,000-bbl storage tanks at its terminal in Guaynabo, Puerto Rico this past March. The new construction doubles storage capacity at the site, offering greater resilience, especially during severe weather events. The work on the tanks started in January 2017 and is reported to have cost some $50m.
Noord Natie, Belgium
Work is continuing to build out the Noord Natie terminal in Antwerp. Following the completion of 32,700 m³ of new stainless steel tankage last year, plans now envisage another tank pit with 12,700 m³ of capacity next year and further development of 45,000 m³ in 2022. The company says it has another 45,000 m² of land available for additional tank storage or for related activities such as warehousing and ADR parking.
Oiltanking Antwerp Gas Terminal (AGT) is to build a 135,000-m³ propane tank to handle imports for the new propane dehydrogenation (PDH) unit Borealis is to open at its nearby Kallo site. The PDH unit is due onstream in early 2022. “I am looking forward to continue the long-standing partnership and the confidence placed in Oiltanking for handling propylene and propane and the further integration into the logistics chain of Borealis,” says Daan Vos, managing director of Oiltanking West of Suez.
MOL Chemical Tankers and SEA-Invest have set up a 51/49 joint venture, SEA-MOL, to build a new bulk liquids chemical terminal in Antwerp. The project, expected to cost up to €400m, will be located on a 45-ha site on the Delwaide Dock, for which the Antwerp Port Authority issued a request for proposals last year. The partners plan a phased development, ultimately consisting of around 500,000 m³ of storage capacity for chemicals and base oils, with startup scheduled for mid-2021.
The SEA-MOL terminal will have access by seagoing vessels, barges, trucks and railcars.
The partners are planning a range of valueadding services, including blending, drumming, filtration and tank container storage.
Vopak Terminal ACS opened a new loading station for block trains in mid-2018, increasing capacity at the site in Antwerp by 400 per cent. The new facility will, Vopak says, strengthen the role of the port as a chemical hub for north-west Europe. Vopak ACS handles a lot of acetyls, which arrive by sea and are largely moved to Germany for downstream use.
ATLHA Terminals is progressing with construction of a 75,000-m³ greenfield terminal in Duisburg. Due to start operations in fourth quarter 2020, the site will consist of 20 tanks and is designed to provide storage for glycols, vegoils, ethanol, biofuels, gasoline and gasoline components. It will be equipped with three truck loading racks, three rail tank loading/ discharge positions and a 135-metre barge jetty, which will allow ship-to-ship transfers.
In October 2018, DG Terminals completed the latest round of expansion at its bulk liquids »
terminal in Liepaja, with two new tanks taking total capacity up to just over 85,000 m³.
Last year OVI added four new 1,000-m³ storage tanks at its Riga terminal to handle the transhipment of base oils for Total East.
Alpha Terminals is building a 720,000-m³ bulk liquids terminal in Vlissingen, designed to handle a wide range of products. Completion was originally scheduled for 2020.
ATLHA Terminals has applied for permits to expand its NWB terminal in Amsterdam from its current capacity of 60,000 m³ to 90,000 m³; if the process is successful, the new tankage will be operational in first quarter 2021. The NWB site handles ethanol, both for foodgrade and biofuel applications.
Contitank, Netherlands
Contitank added three new tanks at its site in Delfzijl in a project completed during the second half of 2018. The three 2,500-m³ stainless steel tanks take capacity at the site to some 39,000 m³, mainly used for animal and vegetable oils and fats.
HES International started construction work on the new HES Hartel Tank Terminal in Rotterdam in November 2018, while the Port of Rotterdam Authority is building new quay walls and jetty. The land work is due to be finished by the end of this year. HES plans to construct 54 tanks on the 27-ha site in Maasvlakte 1, offering a total capacity of 1.3m m³ for a range of petroleum products and biofuels. Operational startup has been pushed back and is now expected in third quarter 2021.
HES Botlek Tank Terminal has contracted SJR Tank Construction to build six 3,400-m³
tanks for biofuels storage at its terminal in Rotterdam. The tanks are being built at SJR’s nearby plant and will be moved to the site by barge. The new tanks are due to arrive in Botlek in August, taking total capacity at the site to some 510,000 m³.
Koole Terminals has completed construction of 33 new stainless steel tanks at its Pernis terminal in Rotterdam (above), adding some 52,000 m³ of new capacity. The work makes the site the largest provider of stainless steel tankage in the ARA region, Koole says. The terminal provides access by truck, train and barge and is designed to serve a variety of markets, including high-density products.
Koole Terminals has also completed extension work on the quay at its KTM terminal in Rotterdam, opening up the facility to Suezmax tanker calls. It has also expanded biodiesel storage and block train handling capacity at the site.
Team, Netherlands
Team Terminal has brought a crude oil tank back online at its facility in Europoort, 20 years after it caught fire following a lightning strike. Late in 2018, the company made the decision to completely renovate the tank, which was put back into service in January 2019.
Vopak, Netherlands
Vopak has announced plans to develop its Europoort terminal in Rotterdam to facilitate low-sulphur fuel oil bunkering.
It is also to expand the Vlissingen LPG terminal by 9,200 m³ to serve the local market for LPG and chemical gases. Completion of this work is due by mid-2020.
Scandinavian Tank Storage (STS) last year upgraded its Malmö Tank Storage facility in southern Sweden, adding a new two-bay truck loading facility in collaboration with ST1. In addition, STS added a new vapour recovery unit and terminal control system.
CLH, Spain
CLH has completed a 22,000-m³ expansion of its Barcelona terminal, along with a number of improvements to the site, which will increase its ability to meet the fuel needs of north-east Spain. The work included two new 11,000-m³ tanks and adaptions to six others to provide greater flexibility in product handling. The entire words involved an investment of some €10m. »
Vopak Terquimsa has completed the second phase of the Buenavista projects at its terminal in Tarragona, Spain, adding 27,500 m³ of new chemical capacity and taking total tank capacity at Terquimsa’s network up to more than 430,000 m³. Work on the latest expansion started in April 2018 and was designed to help the company meet the growing needs of its industrial clients located in the Tarragona chemical cluster.
Oiltanking Grindrod Calulo (OTCalulo) and Transnet National Ports Authority have broken ground on the new liquid bulk storage terminal in the port of Ngqura. The new facility will replace existing storage at nearby Port Elizabeth, which is due to be decommissioned, and pave the way for Ngqura’s development as a new petroleum trading hub for southern Africa. Speaking at the groundbreaking ceremony, Mkhuseli Faku, chairman of OTCalulo, said: “Having been awarded the concession to develop a liquid bulk storage and handling facility in the Port of Ngqura, OTCalulo is now embarking on the first phase of construction. The terminal will be built to
the highest international safety standards and provide exceptional service to its customers.”
The terminal will have an ultimate storage capacity of 790,000 m³ and will cater to oil majors, independents and traders.
Vopak has announced a further expansion of activities in South Africa alongside its local partner Reatile. A 15,000-m³ LPG import/ distribution terminal is to be built in Richards Bay for commissioning in mid2020, subject to final conditions.
Aegis, India
Aegis Group is building a new 25,000-m³ liquids terminal at New Mangalore, due to be completed in two phases. The first phase was due to be commissioned during the 2018-19 financial year. Aegis has recently completed a new liquids terminal at Kandla and a 25,000-tonne LPG terminal at Haldia via its subsidiary Hindustan Aegis LPG Ltd.
The National Iranian Oil Company has signed a build-operate-transfer (BOT) contract for a 10m-bbl crude oil storage facility in the port of
Jask on the Gulf of Oman. Local firm Petroleum Engineering & Development will undertake the work, expected to last for three years.
Hascol Terminals, a 51/49 joint venture between Vitol and Hascol Petroleum, has commissioned a new import and storage terminal at Port Qasim, Pakistan. The facility offers 232,000 m³ of storage, primarily for road fuels, and is linked by the Papco pipeline from Karachi to central Punjab, improving fuel supply to the area. The two-year construction process cost some $65m.
GPS Innova, a joint venture between Global Petro Storage, Innova Refining and Chemie Tech, is currently building a greenfield bulk liquids terminal in the port of Hamriyah. The terminal will offer capacity for trading, imports, bunkering and the reprocessing of waste oils. Construction began in October 2018 with completion scheduled for late 2019.
Vopak is to add 50,000-m³ of new tankage at its 81,000-m³ chemical terminal in Merak, Indonesia. Work is scheduled for completion in early 2020.
Dialog Group last year bought out its joint venture partner in the Tanjung Langsat 1 and 2 terminals, having earlier acquired the neighbouring Tanjung Langsat Terminal 3 (below), which has space available for expansion. Current capacity of the three facilities stands at almost 750,000 m³ and could rise to more than 1m m³ with additional tankage at the third site.
Global Petro Storage has begun construction of a new LPG terminal in Port Klang, following a long-term agreement with Equinor (formerly Statoil). Equinor, which is responsible for around 10 per cent of global seaborne LPG trade, is aiming for a larger share of the market in south-east Asia; the new terminal will be designed to provide an entry point not only for the domestic market in Malaysia but also nearby countries. The two companies expect the facility to be operational in early 2021. The 134,000 m³ Port Klang LPG terminal will have separate storage tanks for refrigerated propane and butane, as well as facilities for heating and mixing to produce various blends of LPG. GPS is actively pursuing other potential LPG and LNG terminal projects in south-east Asia.
In the third quarter of 2018, 743,000 m³ of new tank capacity was commissioned at the PT2SB industrial terminal at Pengerang, in which Vopak has a 29.7 per cent interest. Another 718,000 m³ came onstream in the first quarter of 2019, with further building continuing over the course of this year.
Mobil, Papua New Guinea
Mobil Oil has commissioned a new diesel storage tank at the Idubada terminal in Port Moresby. The new 5,600-m³ tank will “significantly improve” fuel supply
reliability in the country, according to Mobil. Diesel will be sourced from the ExxonMobil refinery in Singapore.
Oiltanking Singapore Chemical Storage has built two new bullet tanks to store propylene for Shell Eastern Petroleum. “Securing this new expansion for propylene, a key feedstock for Jurong Island, Oiltanking Singapore
Chemical further anchored its position as a key chemical/propylene hub and integrated logistics and service provider for feedstock,” says the company, a joint venture between Oiltanking and Macquarie Infrastructure. The new tanks take total capacity at the terminal to 409,000 m³.
Singapore Petroleum (SPC), a subsidiary of PetroChina, has brought a new 50,000-m³ oil products storage and distribution terminal into service on Jurong Island. The 10-tank facility receives gasoline and gasoil from the Singapore
Refinery Co, jointly owned by SPC and Chevron. The terminal will support SPC’s marketing and distribution network in Singapore.
In February this year Vopak announced a 20,000 m³ expansion of its wholly owned terminal in Dong Nai province, which currently offers 48,200 m³ of tankage for chemicals and base oils. The new storage capacity is due for completion in early 2020.
Dragon Crown, China
The third phase of construction at Dragon Crown Group’s Weifang Sime Darby terminal is currently underway and due for completion by the end of this year. This phase is due to add some 164,000 m³ of tankage for petroleum products, taking total capacity at the facility to around 660,000 m³. A new rail link is also due to be completed this year, which will improve reliability and flexibility at the terminal. HCB
region – an excellent spot for the key industry players and delegates such as HCB. StocExpo 2019 was a resounding success and fully confirmed why the leading industry voices see it as a highlight of the year. Hardened veterans of events past bustled shoulder-to-shoulder with fresh faces and the aisles between stands turned into motorways for business networking.
for a 720,000-m3 storage terminal that is specifically designed to adjust to market trends in a heartbeat.
STOCEXPO OPENED ITS doors for the 15th time in Rotterdam, Netherlands, this past 26 to 28 March. Over the last decade and a half, StocExpo has become the leading European event for the bulk liquids storage industry and once again attracted plenty of exhibitors and expert speakers. As ever, StocExpo offers a prime opportunity for networking.
Hosted in the Ahoy Centre, StocExpo was perfectly located in the heart of the Amsterdam-Rotterdam-Antwerp (ARA)
Whereas once the focus of StocExpo was very much on the exhibition halls, the conference has taken a higher profile in recent years and, once again, featured some interesting presentations. After a short introduction from Ellen Ruhotas of Zenith Terminals the event was underway.
The tank terminal sector must constantly change and adapt to demand trends in the market and a new facility in Vlissingen, the Netherlands, is aiming to do just that. Michael van Croonenburg, director of Alpha Terminals, introduced the company’s plans
“Being able to provide flexibility in all aspects is essential for the future,” said van Croonenburg. Alpha Terminals is designing the new terminal to be able to handle a huge range of products, from aviation fuel to ammonia. The Vlissingen terminal is designed to optimise throughput, with an expanded rail terminal and works to offer 18 metres water depth alongside the jetty so as to be able to accommodate larger ships. The road network is also being optimised for rapid truck transport.
When the markets shift, Alpha Terminals is planning to be ready and able to handle the new focus with ease. Van Croonenburg is expecting changes in the industry, particularly as the use of fossil fuels decreases and renewables take up the slack. That megatrend suggests a future with lower volumes of petroleum products being handled, while other specialised feedstocks, chemicals and even hydrogen will need to be accommodated.
Through the use of multiple permitting, floating roofs and adaptable infrastructure, Alpha Terminals at Vlissingen aims to be the go-to terminal for industry’s needs in the future.
Van Croonenburg’s thoughts on the changing markets were complemented by Jon Stenning of Cambridge Econometrics. Stenning described how current economic markets are shifting and predicted that the use of petroleum will halve from current levels by 2050. That will impact the products that storage terminals will be handling, rather than the overall throughput volumes, he reasoned.
Two of the biggest reasons for the market shift are that the EU has increasingly ambitious targets when it comes to decarbonisation and China has become the biggest market for electric vehicles. The EU’s focus on decarbonisation has become an integral part of political and daily life and industry is beginning to respond. The impact of industrial activity on the environment is now at the top of the agenda and in the minds of the public; as a result it is also on the minds of politicians and, increasingly, industry executives. Being environmentally aware is seen as a competitive position, particularly in those sectors that respond to public sentiment.
Shifting his focus to China, one of the largest markets for the industry, Stenning mentioned the explosive growth of electric vehicles has naturally meant a decrease in demand growth in terms of traditional hydrocarbons. However, as he noted: “Opportunities are available, such as hydrogen storage for the future.” One part of the industry may be volatile and likely to decline, but other sectors are on the rise and like-forlike possibilities exist.
Above all, safety is paramount. Despite this universal acceptance, it was argued by Andras Peller, managing partner of Swiss Fire, innovation has stagnated when it comes to fighting fires and providing fire safety. As shown by the recent fire at the Intercontinental Terminals site in Deer Park, Texas, stopping the spread of a fire is essential to saving lives, equipment and industry image. Peller presented a breathtaking video demonstration of a new development, pressurised instant (Pi) foam, extinguishing a full-blown tank fire in 40 seconds. This contrasted sharply with a video of a fire in Japan that destroyed the tank and
burned for days as firefighters tried in vain to aim foam cannons into the blaze. It’s one thing to read statistics and have someone tell you they can extinguish a blaze in under a minute, but it’s something else entirely to see it for yourself.
“Currently, businesses are using old technology to fight fires. Some of the techniques used are decades old,” said Peller. The Pi Foam system is unique as it is completely off-grid. Even if there is a catastrophic event where all electricity has failed, Pi Foam will still work as it operates purely under its own pressure. The potential drawback is that Pi Foam systems needs to be installed in each individual storage tank, which comes with a price tag. However, the evidence clearly shows that relying on mobile units, waiting for the arrival of firefighters and using hoses to spray foam into tanks can also lead to delays that allow a fire to take hold.
Within five minutes the damage a fire can cause to a tank can cost tens of millions of dollars and render the unit useless. Fires can cause structural deficiencies that can lead to the tank collapsing, potentially spreading burning liquid or polluting areas around the site. The recent Deer Park fire continued for four days and even reignited after being initially put out. Being able to extinguish a fire
as quickly and effectively as possible will not only save the terminal, it will reduce risk to lives, lessen the effects of toxic smoke on the environment and ensure the industry is seen as a torchbearer for safety.
Walking around the show, it was encouraging to see so many representatives of businesses providing fire protection at StocExpo. Roger Champagne, managing director at Fire Fighting Systems (FFS), explained the company’s expansion company into land-based systems. FFS is currently the leader in providing equipment for fireboats, tugboats and offshore supply vessels, boasting an impressive portfolio of clientele that includes the Fire Department of New York. FFS also took advantage of the photo and social media opportunities by bringing one of its foam cannons to the stand. Having a large, shiny, red piece of industrial equipment definitely drew in the crowds and selfies.
SA Fire Protection, a family-owned business with over four decades of experience, was keen to highlight its varied fire safety capabilities. SA Fire Protection is a specialist in providing fire protection solutions across the oil and gas, petrochemicals and power generation industries. The team provides water spray, foam, dry chemical, inert gas and water mist systems. »
Piquing particular interest in many of the delegates at the StocExpo conference was a session on cyber-security. As bulk liquids storage terminals are beginning to take advantage of digitisation and adopting systems based on the Internet of Things (IoT) into their operations, the risk of a cyberattack becomes more critical. Ilya Tillekens and Marcel Jutte from Hudson Cybertec spoke about the damage cyber-attacks can cause and how operators can protect themselves. There are some subtle and seldomconsidered threats that could, potentially, wreak damage to a business. Listening to Hudson Cybertec was particularly poignant as two large businesses had been attacked by LockerGoga ransomware in the week before StocExpo.
The primary focus of the presentation was on IEC 62443, the global standard for the security of Industrial Control System (ICS) networks. The standard helps organisations reduce the risks of failure and exposure of ICS networks to cyber threats. As put by Jutte: “The IEC 62443 standard is for operational technology (OT) what the ISO 27000 standard is for information technology (IT).”
When a person from outside the business is allowed access to the internal systems, they can become a threat. They may inadvertently create a gateway for malicious entities to take advantage of, actively steal protected data or even install malware themselves directly into the system. These days it is not easy to run a successful business without using outsourced services, consultants or contractors, so how does the organisation protect itself against
these problems? The answer given was quite simple: education and preparation. Training teams to understand how cyber security works and designing systems that can limit the impact an attack can have will set a business on the right path.
Hudson Cybertec examines a host of different cyber threats. One of the more common types is ransomware, which threatens to release secret information – such as internal business data – or denies access to data unless a ransom is paid. But there are other types, such as Triton, a malware designed specifically to attack safety systems. This type of attack brings a whole new dimension to the topic as it is not just digital damage on the line. These attacks can cause widespread physical damage, even outside of the business. Some may remember the »
Industroyer attack on Ukraine in 2016, which shut down the nation’s power grid and clearly demonstrated the widespread chaos an attack can instigate. Recently, new and even more damaging malware, such as Triton, have been discovered. Triton is designed to take control of emergency shutdown capabilities for industrial processes. Needless to say, the damage this could cause on economic, electronic and even physical levels is difficult to fathom.
Examining recent advances in wearable technology, Frank Miksicek of Honeywell provided a fun demonstration of Movilizer, which he described simply as “the cloud for field operations”. Honeywell has developed a terminal operations management solution that uses voice recognition technology and provides a visual display. This allows field workers to follow safety protocols, have access to electronic documents and communicate with other team members through radio and photographic means.
Movilizer has a diverse range of benefits. The system increases the level of communication between teams; and it connects back-end systems to internal and external technicians, helpdesks, planners, supervisors and service managers. Movilizer is able to connect with customers and even to equipment. Furthermore, it can link back-end systems to internal or thirdparty delivery drivers, sales reps, distributors, dealers and end customers in one single interconnected cloud. The goal of this is to drive enterprise profitability. Finally, Movilizer is designed to allow global companies customisation over their own global tracking strategies. Businesses can draw on the cross-functional knowledge and expertise within Movilizer to reduce complexity and cost. This covers the full range of serialisation and product tracking capabilities – from pharmaceutical compliance to product interaction and transparency.
It was clear to see after speaking to visitors and exhibitors that StocExpo is highly beneficial to the tank storage industry and its equipment and service providers. Simon Ruffles, managing director of Pioneer Pump, was one of the newcomers to the event. Pioneer Pump experienced just how beneficial the event can be, boasting over two dozen serious enquiries and leads by the end of the second day. Before the doors had closed on the second day, Ruffles had already booked a stand for 2020.
Tom Van Herp, business development manager at DTN, said: “StocExpo continues to be a great networking event. We have been participating for several years now and StocExpo remains the reference for our industry. Since DTN has many new solutions for weather forecasting and storm analytics, we were able to find out that many of our business relations are interested in this kind of information. We also talked about innovations and new functionality we were able to add to our existing terminal automation and cloud solutions for the downstream supply chain, which gave our customers a good update.”
Diederick Enderlé, senior sales representative at Kiwa, added: “This year we’ve hosted several good quality meetings on the stand. As the company’s sixth year at the show it has certainly paid off. When we first started exhibiting, we had the challenge of educating visitors on what we do, but it has been a fantastic opportunity to profile our organisation. Visitors now understand our offering – exhibiting at the show has led to a lot of organic growth.”
Raoul Oomen from RVB Tank Storage Solutions had this to say: “As a first-time visitor it was a pleasant discovery to find so many specialised innovations for the storage industry all under one roof. Attending the conference brought new insights as the speakers gave their peek into the crystal ball about future fuel oil developments in relation to IMO 2020 and the trade and storage effects thereof for refining the whole crude barrel.”
HCB
StocExpo 2020 is set to be just as large, a hub of innovation and an exceptional way to grow business. Many first-time attendees look set to return and the regulars show no sign of moving on yet. Keep an eye on the organiser’s website, www.easyfairs.com, for information about next year’s event.
ROYAL VOPAK HAS agreed the sale of three European bulk liquids storage terminals to First State Investments, as well as its joint-venture terminal in Tallinn, Estonia. The deal is in line with Vopak’s announcement in August 2018 that it was looking to divest these assets. At the time, CEO Eelco Hoekstra said: “We find this the natural moment for a strategic review and test the market value of our terminals in Algeciras, Amsterdam, Hamburg and Tallinn. This review is fully in line with the focus on growing our portfolio
with the four strategic terminal types (major hubs, gas and LNG, industrial terminals, distribution in major markets).”
Announcing the sale of the Algeciras, Amsterdam and Hamburg assets at the start of April, Hoekstra said: “Today’s announcement is a next step in the delivery of our strategy and the alignment of our portfolio based on long-term market developments. In Europe, our main focus is to further strengthen our position in the major industrial clusters Rotterdam and Antwerp. Globally, we currently have more than 2m m³ under construction and new projects will be announced to grow our portfolio with a focus on industrial, chemical, and gas terminals and to maintain our strategic position in hub locations.”
The deal with First State Investments involves facilities that are primarily involved in the storage of petroleum products; they are the Dupeg terminal in Hamburg (668,600 m³), the Westpoort facility in Amsterdam (1.22m m³) and the 80 per cent-owned Algeciras terminal in Spain (403,000 m³), which acts primarily as a bunkering terminal. This represents a combined capacity of some 2.29m m³.
Vopak and First State have agreed a price of €723m, including a €15m element based on revenue conditions. This translates to a net pre-tax cash inflow for Vopak of around €670m and an exceptional gain in the region of €200m, which is expected to be booked in the second half of the year once the deal closes.
“We are delighted to have reached an agreement with Vopak on the acquisition of the terminals in Algeciras, Amsterdam and Hamburg,” says Marcus Ayre, partner at First State Investments. “This diversified portfolio of world-class oil product storage terminals provides an excellent fit with First State’s long-term infrastructure investment philosophy. We look forward to working with the incumbent highly skilled management team and employees to continue to develop and grow the business.”
First State Investments was founded in Australia in 1988 and became part of the Commonwealth Bank of Australia in 2000. It is currently in the midst of being sold to Mitsubishi UFJ Trust and Banking, a deal that is expected to close in the middle of this year.
The other transaction involved the sale of the Vopak EOS business in Estonia, owned as a 50/50 joint venture by Vopak and Global Ports Investments, to Liwathon, as Abu Dhabi-based commodity trading, logistics and investment firm. The assets include a bulk liquids terminal with a capacity of 1.03m m³ in the port of Tallinn and the railway company ERS. Vopak expects a “modest” gain on the deal, which will be included in its second quarter results. HCB www.vopak.com
INTEGRATION • THERE IS A LOT TO CONSIDER WHEN BRINGING TWO LARGE, ESTABLISHED BUSINESSES TOGETHER, AS INTER TERMINALS IS FINDING FOLLOWING ITS ACQUISITION OF NUSTAR EUROPE
is in place, meaning the process of bringing these two complementary businesses together is under way.
INTER TERMINALS LTD’S acquisition of NuStar Europe at the end of 2018 established it as the largest independent storage operator in the UK (HCB December 2018, page 39). At a stroke, Inter Terminals became the fifth largest independent storage operator in Europe and its overall storage capacity increased by approximately 33 per cent. A joint Integration Project Team and transition plan
The former NuStar Europe business consists of seven terminals, totalling 9.1m bbl (1.05m m3) of storage capacity. One terminal is located in Amsterdam, Netherlands, with the remaining facilities located in the UK at Grays, Runcorn, Eastham, Grangemouth, Clydebank and Belfast. Serving a diversified customer base, all terminals are strategically located along key waterways with proximity to large metropolitan areas, an important competitive advantage.
Inter Terminals sees strong integration potential with its existing terminals and for the former NuStar Europe employees, resulting in enhanced product storage and custom blending solutions for customers. In addition to materially increasing overall storage capacity, the acquisition provides an attractive entry into the Port of Amsterdam – the world’s largest gasoline blending hub. With a capacity of 613,000 m3, the state-ofthe-art terminal plays a key role in the port, hosting approximately 10 per cent of the port’s independent storage capacity.
Inter Terminals’ COO, Paul Oseland, is coleading the Integration Project Team with David McLoughlin, former vice-president and general manager at NuStar Terminals. Following the acquisition, McLoughlin was appointed director and general manager of Inter Terminals UK and the Netherlands. He brings more than 23 years of wide-ranging experience to his new role, having started his storage industry career in marketing, before moving into operations and then into management.
McLoughlin is delighted to be part of this exciting new venture and believes Inter Terminals and NuStar Europe are a great fit. McLoughlin says: “As well as having a complementary footprint in terms of terminals and locations, our people share the same core values and business ethos, with a strong emphasis on health and safety, the environment, regulatory compliance and operational excellence. I believe these synergies provide the perfect basis for us to build a bigger, even better business together.”
Since the acquisition it has been business as usual for the terminals in the newly expanded storage network, giving all parties time to observe, review and plan the integration process. Establishing a joint integration team and plan has been a critical
part of the process, as Oseland explains: “The composition of the Integration Project Team reflects the collaborative approach to merging these two great businesses into a combined storage network that promotes shared learning and knowledge transfer.”
The key integration areas, which include HR, IT, engineering and operations, are equally represented in the team by relevant personnel from Inter Terminals and the former NuStar business. The wide-ranging integration plan will include a review of all aspects of the combined business, including systems and customer management. Supporting the transition process and establishing measures to track and report on progress will be a primary objective for the team. Also, as with any business change, they will be responsible for communicating with and assessing and managing any concerns of stakeholders.
With this strategic acquisition, Inter Terminals says it has acquired a quality asset base of 378 tanks that is modern, well maintained and highly automated. “The NuStar Europe business in the UK complements our facilities on England’s east coast, while the Amsterdam terminal significantly expands our footprint in north-west Europe,” says Oseland. Having a terminal in Amsterdam will also create storage demand and opportunities for low sulphur fuel oil and blending of bunker fuels and diesel ahead of the forthcoming IMO 2020 regulations.
Combining strategic locations with specialist product handling capabilities, Inter Terminals’ facilities handle a significant percentage of the UK’s imported fuel requirements and are designed to enable frictionless flow of gasoline, diesel and other fuels to retail outlets. The newly
acquired Grays terminal on the River Thames strengthens Inter Terminals’ position in this market. A key regional supply point, Grays handled approximately 2.5m tonnes of refined products during 2018 and provides costeffective access to London’s fuel distribution network. A terminal optimisation project, nearing completion, will enable the receipt and dispatch of increased volumes of gasoline and diesel at significantly faster rates.
The acquisition of NuStar Europe by Inter Terminals creates one of the most comprehensive multi-product storage terminal networks in Europe, with 23 terminals in six countries and a combined capacity of 5.8m m3. Achieving smooth integration is now the next important step for a successfully combined business that promises benefits for employees and customers alike. HCB www.interterminals.com
those that aren’t visible on the surface – allows operators to drastically increase the longevity of their assets and instigate accurate repairs.
Panther is a phased-array device designed for both desktop and industrial applications. It is able to combine the speed required for industrial integrated phased-array ultrasonic techniques (PAUT) solutions with the most complete set of total focusing method (TFM) imaging techniques.
market”. Acquire inspection data files are fully compatible with Enlight, CIVA and ULTIS analysis software.
“Panther is the result of more than 15-years’ experience gained in both laboratories and inline inspection business by our experts,” says Laurent Le Ber, product manager at Eddyfi. “Panther has been designed with tremendous processing power and a high data throughput between the instrumentation and the monitoring computer. It aims at meeting our customers’ highest expectation and needs.”
The initial release of the Panther targets laboratories and R&D groups. “The recent rise of graphics processing unit computing power in a compact, industrial and affordable format allowed us to provide a very flexible solution for both laboratories and individuals,” says Le Ber. “Panther bridges advanced phasedarray methods such as TFM with the highspeed ultrasonic inspection requirements of the industry.”
In the near future, Panther will offer users high-speed inspection modes, targeting integrators for advanced industrial NDT inspections. Boasting a parallel and stackable architecture of up to 16 units of 128 channels each, Panther is expected to meet the speed and resolution requirements of the most demanding applications.
EDDYFI TECHNOLOGIES HAS unveiled Panther, the latest addition to its suite of non-destructive testing (NDT) technologies. Able to provide unparalleled performance in a compact unit, Panther is a welcome contribution to ensuring the highest quality data is collected from inspections. Being able to see the most miniscule of defects – even
Described by Eddyfi as “the ultimate ultrasound imaging machine”, Panther comes with M2M’s state-of-the-art PAUT and TFM. The impressive features of the new technology include high-resolution imaging with 1.5 million pixels in real-time and a data throughput greater than 320 MB/s. It is compact and scalable from 32:128 to 2048:2048 channels. The use of CIVAbased Acquire operating software and an extensive software developer’s kit provides clients with fast, advanced and customisable configurations. When Panther is combined with Acquire, Eddyfi states it is “the fastest and most versatile PAUT/TFM solution on the
Eddyfi Technologies, based in Québec City, Canada, is highly experienced when it comes to NDT and eddy current technologies and has an extensive portfolio of sensors, instruments and software that facilitate critical component inspections in key industries. Alongside Eddyfi and MSM, its brands include Silverwing, Teletest and TSC.
With the aim of helping original equipment manufacturers, asset owners and service companies enhance productivity, save lives and protect the environment, Eddyfi invests massively in product advancement. Its goal is to feature various NDT modalities to achieve new limits. Eddyfi has worked across the oil and gas, aerospace, and power generation sectors and maintains a presence in Europe, the US, the UAE, South Africa and China. HCB www.eddyfi.com
CLEANING SERVICE HAS BEEN LAUNCHED TO PROVIDE A SAFER AND MORE EFFICIENT METHOD, REMOVING THE NEED FOR ENCLOSED SPACE ENTRY
for use on smaller sites and underground storage tanks and containers, including filling station forecourts, interceptors and process tanks.
The equipment is effective, reliable and provides predictable cleaning times , says Re-Gen. The efficacy of the system means the tank is brought back into operation rapidly and reduces the need for additional tank capacity, permitting delays and additional support teams.
RE-GEN ROBOTICS HAS introduced the British Isles’ first and only ‘No Man Entry’ robotic tank cleaning company. Two Ex Zone 0 rated machines have been purpose-built with an investment of £1.5m by the sister company of Re-Gen Waste. The two robots have specific tasks – one is designed to de-sludge, wash and clean large tanks, while the second is a lightweight and portable compact unit suitable
The aim of Re-Gen Robotics is to reduce, and ultimately eliminate, industry fatalities across the British Isles. “Every year as many as 25 people in Ireland and the UK lose their lives working in confined spaces,” says Fintan Duffy, Re-Gen Robotics’ managing director.
“Exposure to hazardous petrochemicals, heat stress and slips or falls are the main risks faced by workers who manually clean oil tanks. With Re-Gen Robotics, tanks can be automatically cleaned fast, in a predictable
way, using technology that meets the highest safety standards in the industry.”
The unique, closed-loop system that Re-Gen Robotics uses is fully compliant with existing safety legislation. Additionally, use of the robots can reduce cleaning time by up to 45 per cent, providing a significant decrease in the amount of downtime required and cutting the loss of production in a scenario where facilities cannot be operational.
“At no time during the Re-Gen Robotics cleaning process will there be a need for human presence in the confined storage container. Our technical operator remains a safe distance away in the Zone 2 control unit, where they can monitor activity and progress through a series of ATEX cameras fixed to the equipment placed inside the tank being cleaned,” says Duffy.
“There is no human exposure to sludge or waste materials during the cleaning process and, once cleaning is complete, the robot safely washes itself down, exits the container via its ramp and is returned to the control unit. This is particularly significant as the current health and safety legislation states that ‘a person shall not carry out work in confined spaces if it is reasonably practical that it could be avoided’.”
As manual tank cleaning methods remain common practice across the UK and Ireland, it is hoped that the introduction of this new technology will make tank cleaning safer and more efficient. The stakes are incredibly high when it comes to dealing with personal safety.
“Companies cannot afford to be negligent where human life is concerned,” says Duffy. “As well as the obvious tragedy and impact on family when a life is lost, there is a negative impact to companies associated with loss of life through confined space working; there is damage to organisational reputation, company and shareholder value and the risk of corporate manslaughter charges to consider.” HCB www.regenrobotics.com
HCB: How did you become involved in the world of industrial fluid-handling?
Dave Morrow: I had always been mechanical, but I majored in marketing and finance at the University of Cincinnati, so when I graduated I thought I’d work at a bank and even had an interview set up with Fifth Third Bank. Then a friend from college told me that he was applying for a job at OPW Engineered Systems and said that I should do the same. I was a marketing guy and had taken an industrialmarketing class in college, so that helped turn me on to this. When I started, I was a Regional Manager in the Northeast and lived in New Jersey, but it wasn’t Cincinnati. I wanted to come home and everyone knew it; my wife was from Cincinnati, we were West Siders. I was able to come back as a marketing guy, doing what I grew to love in school. And since I had run a territory, my pitch to OPW was that I know what the sales guys go through and I think I can help our guys do their jobs better.
HCB: What about the industry initially grabbed your attention and helped make it your profession?
DM: The diversity is what drew me to this business. Gasoline, diesel, sulfuric acid, ethanol, LPG and even whiskey – you name it, if it’s in a truck or railcar we make equipment to move it. One of the coolest things we do is go into all of these plants and see different
applications where things are made and help solve their fluid-handling challenges.
HCB: OPW has adopted the mantra of “Defining What’s Next” as its driving force. Describe what that means to you.
DM: I believe in what we do, I believe in OPW and our customers understand who we are. What we need to do is execute through optimized delivery and use the expertise we bring to the market, and if we execute on those things, we’re going to win. It comes down to how do we better execute our business and how do we become the easiest company to do business with. We sell engineered products (fluid-transfer loading arms and systems, couplers, disconnects, etc.) and you can’t just open a catalog to a certain page and be successful at selling them; you’re going to need help to sell that product.
The goal is being able to serve all of our customers better, from the one with the clear-cut application to the one with a complex, custom application; we want to do it all, and that is unique to us. So “Defining What’s Next” does not have to be a new product. It can be a new way of doing business, redefining the ways that we can serve customers. There are opportunities there, and we enjoy working with our customers to identify ways to continuously improve and better deliver for them.
HCB: Can you provide an example of how that message has manifested itself?
DM: The complexity within the industry has changed big time in recent years. We’ve always sold equipment that looks like it does today, but when we’d sell a carbon-steel arm, we’d use our carbon steel, we’d build it the way we build it, we’d paint it the way we paint it, we’d weld it the way we weld it. Today, given the broad range of industries we serve, many items can have very customized specifications. In fact, we’ve changed our business model in order to better serve a variety of customer needs.
For example, in the past, we used to work through all customer orders in the same manner, using the same process, which meant that clear-cut application lead times were sometimes impacted by complex, customized project lead times. One thing that we’re now doing is changing our loading arm business to three different product paths, which we’re calling StandardLine, ProLine and CustomLine.
These are actually product lines within a product line.
The StandardLine consists of preconfigured, pre-engineered systems that are less complex with quick delivery guaranteed. With ProLine, we create a system that is customized to the customer’s specs, but blends in OPW’s standard specifications. This is what most of our customers want and the bulk of the orders we do every day. CustomLine is also customized to specs, but is structured to also handle special materials, testing, components, etc. The CustomLine often has a longer lead time as it allows for more input from customers who have more complex requirements. If you can dream it, we can do it through our CustomLine.
With these three options, we’re giving customers a choice to see what makes the most sense for their business and situation. The goal is to create velocity across all three offerings and it’s working, for our customers.
On day one with the customer it’s now a different experience, but our people in the
building understand what we’re doing and it has inspired them to find ways to be quicker. Engineering and manufacturing have come up with different ways to meet the needs of our customers. It’s been a pretty cool thing to watch take shape. This is new to the loadingarm industry, and other Dover companies have reached out to see how we’ve done this. It’s been really cool to see how our people and customers have reacted, and how other companies are also interested.
HCB: Guaranteeing personal and environmental safety at transfer terminals is of critical importance. How have you addressed those challenges?
DM: That is definitely a huge focus for us, specifically for our quick- and dry-disconnect business. The thing that is unique about OPW is that we make everything from a simple Kamlok®, which we invented and trademarked, to the Epsilon™, the most robust dry-disconnect coupler in our portfolio – with a whole bunch of coupler models in between. Our approach centers around, ‘How
do we grow that business and help more people make their sites as safe as possible?’ OPW and our customers know that any product on the ground is bad, even if it’s not dangerous. Even when you lose something that is benign, like vegetable oil, it can still create a hazard. Keeping that product in the pipe and off the ground is a huge focus.
HCB: When you’re away from the office, what do you do to unwind or relax?
DM: My wife and I have three sons, two of whom are in college now, and we’d always spend a lot of time with them. We’re also big movie buffs and all about the latest movies. I love to golf, but don’t really have the time to make it happen. Also, when they were younger, my boys were soccer players and I would stay in shape by working with their teams at practice. Without that outlet anymore, in the past four or five years I’ve taken up running. It’s a good stress reliever and that’s when I do my best thinking.
HCB
Macquarie Infrastructure and Real Assets (MIRA) and Goldman Sachs affiliate West Street Infrastructure Partners III (WSIP) have completed the acquisition of HES International from Riverstone Holdings and the Carlyle Group. The new shareholders, who each control 50 per cent of HES, say they look forward to working in partnership with the Executive Board and HES employees to further develop and grow the company.
“MIRA and WSIP are supportive of management’s strategy to grow HES through investment in new projects and to strengthen the existing operations of the terminals,” HES says.
HES is currently implementing a €700m transformation and growth strategy, which includes construction of the new 1.3m-m3 HES Hartel Tank Terminal in Rotterdam. www.hesinternational.eu
ANZ Terminals has acquired GrainCorp Liquid Terminals (Australia), a subsidiary of
GranCorp Ltd that operates eight bulk liquids storage terminals in Australia, for some A$350m. The terminals, located across the country, have an aggregate capacity of some 211,000 m3 and are used for the storage and handling of fats, oils, fuels and chemicals for a range of customers.
“This acquisition expands our footprint across the Australian bulk liquid terminals market, including key sites in Queensland and Victoria, and opens up new geographies for us in Western Australia and Tasmania,” says Nick Moen, CEO of ANZ Terminals. “It also diversifies our customer base and the range of commodities we store, with GLT’s terminals providing significant storage in edibles and tallow.”
As part of the sale, GrainCorp has entered into a long-term storage agreement with ANZ Terminals. The sites were acquired by GrainCorp in 2012 as part of its purchase of Gardner Smith. GrainCorp has not included its New Zealand sites in the deal as they are more well integrated into its operations, but says it is reviewing its options. www.terminalspl.com.au
American Midstream Partners has reported adjusted EBITDA of $285.5m for the full year 2018, up from $244.9m in the previous year. Profits from its terminalling services division fell sharply, following the sale of its marine products terminals in August and its refined products terminals in late December.
American Midstream is now to be merged with an affiliate of ArcLight Energy Partners, a deal that it expected to close in the second quarter.
Stolthaven Terminals has reported first-quarter operating profit of $18.0m, up by $6.3m on the prior period, which included an impairment charge of $6.1m. The company reports stable market conditions and operations.
Niels G Stolt-Nielsen, CEO of parent Stolt-Nielsen, says: “At Stolthaven, our uneventful first quarter is, we believe, an indication of increased stability and better things to come, as the actions we have taken in recent years to strengthen the long-term performance of this business continue to take hold.
“The fire at ITC’s facility in Houston in March is already impacting the local chemical industry, including both transportation and storage,” Stolt-Nielsen adds, although it seems the impact will be felt mostly in Stolt Tankers due to delays caused by the closure of parts of the Houston Ship Channel during and after the event.
Affiliated of Blackstone Infrastructure Partners have closed the acquisition of 100 per cent of Tallgrass Energy’s general partner and 44 per cent of Tallgrass Energy itself from affiliates of Kelco & Co, The Energy & Minerals Group and Tallgrass KC. The acquisition cost BIP
some $3.2bn. Affiliates of GIC, Singapore’s sovereign wealth fund, and Spanish energy company Enagás are minority investors in the transaction. www.tallgrassenergy.com
Global Petro Storage (GPS) and the Port of Amsterdam are to develop a railcar connection on land adjacent to GPS’s existing 11-tank gasoline and biofuel storage and blending facility. The new link will increase the efficiency of fuel deliveries across Europe and complements the port’s strategy of endorsing good rail connections to and from Amsterdam.
“This agreement enables GPS to continue the successful expansion programme that began when we acquired the terminal in late 2016, including adding significant gasoline capacity to our current terminal, which will come on stream in the second half of this year,” says Peter Vucins, EMEA director at GPS.
GPS has also begun construction of a new LPG storage facility in Port Klang, Malaysia. The $300m project, due for completion by early 2021, has been developed in partnership with Equinor and with support from the Malaysian government.
“As well as enabling critical strategic reserves to be placed on Malaysian soil, the terminal
significantly improves the LPG supply chain reliability in Malaysia and provides opportunities for domestic players to supply other countries in the region,” says Eric Arnold, CEO of GPS Group. The 134,000-m3 Port Klang LPG terminal will have separate storage tanks for refrigerated propane and butane, as well as facilities for heating and mixing to produce various blends of LPG. GPS says it is actively pursuing other potential LPG and LNG terminal projects in south-east Asia. www.gpsgroup.com
Nuevo Midstream Dos is planning to acquire Republic Midstream. Nuevo Midstream, a provider of midstream solutions to producers and marketers of crude oil, condensate, natural gas and NGL, is expected to complete the acquisition in the second quarter of 2019. Republic Midstream owns a crude oil gathering, storage and intermediate transport system in the Eagle Ford shale area.
Nuevo Dos plans to expand the current system of 100 miles of gathering pipeline, feeding a central delivery point with 300,000 bbl of crude oil storage and a six-bay truck station. Randy Zeibarth, CEO and president at Nuevo Dos, says: “We are very excited about this acquisition and the opportunity to expand the
footprint and service offerings of the Republic system. We really like these assets and their location within the Eagle Ford. The Eagle Ford is experiencing a resurgence and is advantaged by its proximity to the Gulf. Nuevo Dos looks forward to helping producers fully participate in moving crude and condensate to market.” www.nuevomidstream.com
Kinder Morgan is reported to have pulled out of the Texas COLT offshore crude oil terminal project, selling its stake to lead developer Enbridge. “Given the ongoing commitment required to move this project forward through the regulatory phase and, after an internal review within Kinder Morgan, it was determined that continuing with the project does not align with our strategic priorities,” the company said in a statement.
The Texas COLT project envisages an offshore platform with two single-point mooring buoys capable of fully loading a 2m-bbl VLCC in 24 hours; the offshore facilities will be linked by a 42-inch pipeline to an onshore tank farm with up to 15m bbl of storage capacity. An application for construction of the project was filed with the US Maritime Administration at the end of January 2019. www.enbridge.com
NEARLY 60,000 NEW tank containers rolled off the production lines last year, according to the International Tank Container Organisation’s (ITCO) Annual Global Tank Container Survey As a result, given limited disposals, the global fleet grew by 10.8 per cent over the year to an estimated 604,700 tanks in service. This is the highest rate of growth since the 2014-15 period. The ITCO survey, prepared once again on the basis of research carried out by Shanghai Maritime University, states that this growth has been underpinned by firm demand, which led to the entry of another high-volume manufacturer in China.
“The trend continues to successfully convert certain cargoes to tank containers,” the survey remarks. It is notable that this conversion is coming both from smaller packages (primarily drums) and from the parcel tanker sector, with intermodal tank containers able to reach inland and remove the need for cargoes to be transferred at the ports. In addition, China is experiencing “significant growth” in the use of tank containers for the domestic transport of bulk liquids, ITCO says.
According to ITCO, 59,700 new tank containers were manufactured in 2018, an increase of 23.1 per cent over the 2017 figure of 44,000. Of that increase, 23 per cent was accounted for by Dalian CRRC Container, a new entrant to the field, although the other Chinese
manufacturers – Nantong Tank Container, CIMC, Singamas and CXIC Group – mostly increased their output. Indeed, of the six major manufacturers, the only one to record lower output in 2018 was South Africabased Welfit Oddy, the only non-Chinese manufacturer of any major significance (see Table 1).
It is clear that the leasing companies are taking most of the new production, as they have in recent years. ITCO calculates that the lessor-owned tank fleet stood at 286,000 units at the start of 2019, up from 245,000 a year earlier, an increase of 16.7 per cent and representing 68.7 per cent of new production over the year.
However, ITCO also estimates that the number of idle tanks has risen sharply; it calculates that the proportion of the fleet that is idle at any time, either by being out of the market for repair or maintenance, being repositioned or waiting for purchase as newly manufactured tanks, is normally in the range of 10 to 15 per cent. At present, however, given the large number of new tanks that have been produced and the current volatile market, that estimate has been upped to 15 to 18 per cent. That means that, in its analysis of the overall fleet, it gives an estimate of 42,785 idle tanks »
at the start of 2019, compared to 32,000 a year earlier.
Similarly, ITCO has calculated a higher number of disposals from the fleet over the course of 2018 than it has in recent years. While tanks are normally depreciated over 20 years and can remain in service for much longer with good maintenance and refurbishment, the economics have changed given the low price being charged for new tanks at the moment. ITCO has included a nominal figure of 7,000 for disposals in its 2019 survey, up from 4,500 a year earlier, and says it expects to see this figure increase in coming years.
In fact, despite the flood of new tanks arriving from the manufacturers over the past year, the total number of owned and leased-in tanks in the hands of operators rose by only 4.6 per cent to 381,750 at the start of 2019, compared to 365,000 a year earlier.
There has been a more significant increase in the number of tanks owned and leased in by shippers and what ITCO lists as ‘others’ –a broad classification that includes the military, rail operators, mining firms and, perhaps most significantly, domestic Chinese companies.
Since ITCO has been working with Shanghai Maritime University, the data in its annual survey appear to have become a lot more dependable (HCB knows only too well how difficult it can be to get reliable figures in this market). Over the past four years, there has been a slight increase in the number of operators listed in the survey, standing now at 212, but little movement in the number of leasing companies, which fell by one to 35 this year as a result of some consolidation.
This year’s detailed fleet numbers for operators show that Stolt Tank Containers (STC), the Bertschi Group and Intermodal Tank Transport (ITT) have all added significantly to their fleets (see Table 2). With most of the new tanks going to leasing companies, there has been more movement among the lessor fleets (see Table 3), with strong growth for Exsif Worldwide and Eurotainer, the latter having leap-frogged Seaco Global into second place in the list, as well as CS Leasing on the »
2017 2018
CIMC 27,000 29,500
Nantong Tank 5,800 8,500
Singamas 4,500 5,500
Welfit
Oddy 5,400 4,850
Dalian CRRC 3,600
CXIC 2,800 2,500
Source: ITCO
2017 2018
Stolt Tank Containers 35,395 39,156
Hoyer 32,958 33,881
Newport/Sinochem 32,000 31,800
Bertschi 20,600 23,300
Bulkhaul 22,000 22,500
China Railway Logistics 20,879 20,879
Den Hartogh 19,500 20,000
ITT 11,000 13,500
Interflow 11,000 11,683
VTG 9,000 9,150
Dana Liquid Bulk 10,000 8,000
Source: ITCO
2018 2019
Exsif 52,000 58,500
Eurotainer 35,000 48,000
Seaco 42,000 43,000
Trifleet 14,192 16,100
Triton 13,500 13,500
Raffles 11,500 13,240
CS Leasing 5,200 10,120
Albatross 9,500
GEM 2,000 9,200
TWS 8,000 8,360
NRS 7,000 7,000 International Equipment 6,000 6,000
Source: ITCO
back of consolidation and, to a lesser extent, Trifleet and Raffles Lease. There has also been the emergence into the list of Sinochem International affiliate Albatross Tank Leasing.
The ITCO survey mentions that tank container manufacturing capacity is continuing to grow, with further entrants in both China and eastern Europe. It is perhaps that last comment that points a way into the future for the sector and it is noticeable that ITCO’s April 2019 newsletter contained a report from a conference organised by the Russian Maritime Register of Shipping (RS) on the theme of containers and container transport. The container industry in Russia and other parts of eastern Europe has been extremely innovative in coming up with new concepts for the design and use of containers and tank containers – fibre-reinforced plastics (FRP) tanks being just one development that was largely driven by Russian rail users as far back as 2014. RS has developed and introduced rules for the manufacture of FRP tank containers, as well as rules for their design, repair and operation, while work continues at the UN Sub-committee of Experts on the Transport of Dangerous
Goods to assess the safety implications of such tanks.
During the RS event, a number of other innovations were revealed, designed to meet the needs of shippers in the Russian Federation, which are making increasing use of tank container transport. Unicon 1520 presented a new generation of rail tank cars with an increased carrying capacity designed for a wide range of chemical and foodgrade liquids, as well as a new tank container design for use with liquid and solidifying chemicals of Classes 3, 6, 8 and
9, specifying in particular their compatibility with sulphuric acid and sodium hydroxide. Safe Technologies Industrial also showed some new designs for transport refuelling containers for specialist applications.
ITCO is now preparing for its major European showcase, the ITCO Village, which will take up more space than ever before – 72 ITCO members will be exhibiting – in Hall B4 of the Messe München as part of the Transport Logistic 2019 event, which takes place over four days from 4 June.
Later this year, ITCO’s Members Meeting will take place in Amsterdam on 30 September and 1 October. The venue, the Hilton Hotel Apollolaan, will be familiar to readers of a certain age as the location of John & Yoko’s bed-in, still celebrated by the hotel each year. More relevant to all readers, HCB’s editor, Peter Mackay, will lead a panel discussion on the transport of polymerising substances in tank containers, featuring speakers from ITCO members and the TT Club.
ITCO’s next Asia Regional Meeting will take place on 27 November in Shanghai; it will feature a morning workshop focusing on the @tco Depot Audit Project. HCB
Full details of all ITCO activities can be found on the Organisation’s website, www.internationaltank-container.org.
FOR UK-BASED Suttons Group, its international tank container business contributes around half its total turnover. At present, with global factors changing the tenor of the tank container market and with overall trade growth, the tank container part of the Suttons business is attracting significant investment.
According to John Sutton, CEO of the Suttons Group, the company had held back from investing in the sector until a couple of years ago; the tank container market was over-supplied and he did not want to get
involved in an aggressive war for market share, unlike some other big names in the business. Now, though, with newbuild prices at historically low levels and with overall trade growth, it makes sense to return to building the fleet.
Over the past two years Suttons has added around 2,000 new Chinese-built tank containers, split roughly 50/50 between standard units and baffled tanks. It has also added 120 baffled swap tanks with a 35,000-litre capacity to its European shortsea fleet.
Suttons is also working to improve the quality of the fleet, both through rebuilds of
existing tanks and replacement of some older units. While tanks can last a long time with the right levels of maintenance, some were approaching the 20-year mark and it was agreed that it was time to replace them.
Suttons has implemented a large refurbishment plan for 600 of its existing tanks and a refurbishment programme over the next three years to bring 90 per cent of the current fleet up to newbuild standards once again. This ties in with the recent rebranding of the company to stress its approach as “evolution, not revolution,” says Sutton.
The rebrand is steadily being rolled out continuously across the UK and international tanker fleet. In addition, Suttons continues to invest in new tractor units, road barrels and acquisitions in its road tanker business.
Over the last couple of years, it has been mentioned by some that too many new tank containers have entered the market, attracting new entrants and squeezing established players. “My opinion would be that [the excess] seems to have been soaked up,” says Sutton. “Our utilisation levels have improved in the last year or two. Certain operators that once grew very rapidly seem to have stopped their ridiculous pricing approaches that they were taking. It does seem to have steadied a bit and the prices on the market are no longer unsustainable in the long run.”
Optimistically, Suttons believes market rates are holding firm. “I don’t think, as an industry, we are being successful in increasing the margins to the levels they once used to be, but they are holding steady at this rate,” says Sutton. “There was a big shift in the market when tank prices halved almost overnight. They have recovered slightly, but they are still significantly lower than they were five or six years ago.”
Nor is John Sutton likely to be drawn into over-bullish estimations of demand growth. Trade in the sorts of products carried in tank containers was impacted for a couple of months by the emerging trade war between the US and China, largely on routes into China, but this appears to have steadied. There was little impact on transatlantic business, he says. Sutton is also cautious about the impact of new chemical production in the Middle East; the massive new Sadara plant came onstream in Saudi Arabia amidst great fanfare but its impact on tank container demand appears to have been overestimated. Suttons’ volumes in and out of Saudi Arabia, where it has a long-established presence, have remained steady. There is also at present a shortage of cargoes for tanks moving out of the region.
Similarly, despite recent increases in petrochemical investment in the US as a result of the shale gas revolution, Sutton says it is very much “business as usual” in that territory. Suttons has hired a new sales manager to cover the US Gulf area, which is showing promising signs for the future. He also notes that there is a shortage of tanks available in that market, a sure sign of strong demand. »
Confirming that it is not just its tank container business that is growing, Suttons Group last month announced a deal to acquire DHL Supply Chain’s UK bulk commodity chemical business. The acquisition primarily covers the transport of chemicals in road tankers from sites in the north-east (Billingham) and north-west (Runcorn) of England. Michael Cundy, managing director of Suttons Tankers, says: “We see DHL’s bulk commodity chemical business as complementary to our existing offer and in line with our strategic commitment to this market. Customers can be assured Suttons will maintain the high levels of service and safety they expected from DHL.
And, as Sutton notes, “It is usually the case that when the US is doing well, operators are doing well.”
While Suttons has to have one eye on trade developments and its capacity needs, it always has to have in mind the health and safety imperatives when dealing with dangerous goods. That is particularly true in certain parts of the world where there is a lower threshold for safety processes, where Suttons is having to lead the local industry. “The ability to influence health and safety is a challenge in the industry and needs support,” says John Sutton.
Things seem to slowly be moving in the right direction, but it is a business-led venture. The chemical sector does have some businesses that are trying to lead the charge in reforming health and safety in these regions as government intervention and enforcement can frequently be poor. Suttons believes it is up to each business in the industry to manage subcontractors
“This acquisition shows Suttons’ continued commitment to the bulk chemical sector and the benefits of a national shared user-support network,” Cundy adds.
Stuart Carlyon, vice-president of operations for DHL Supply Chain’s Network Logistics and Transport Division, says: “We welcome this approach by Suttons Group. Like us, Suttons is a premium operator working in specialised logistics, utilising highly skilled driver, workshop and support staff with an emphasis on safety and customer service.”
The deal does not include DHL’s dedicated services in packaged chemicals, bitumen, lubricants and fuels, which will stay with DHL.
and other parties to ensure strict health and safety boundaries are met.
“There is a reluctance to accept that quality and safety does cost money. You can’t pay the lowest possible price because you will get the lowest possible quality in safety standards,” says Sutton.
Third-party services work well for Suttons in most regions. The scale of the business in certain locations is not yet quite enough to justify investment in its own depots. China, however, is a different matter. Suttons owns and operates a depot in China, which is in the process of being upgraded and potentially relocated. The team is deep in discussions with various authorities about moving this forward.
Suttons is definitely open to the concept of a joint venture, but it is taking it steady and ensuring it has the right information and permissions from relevant bodies before starting any discussions. Regional variations must be kept in mind - what works in one market may not work in another. In China, for instance, investing in its own depot provides
a strategic advantage – particularly in terms of quality management, something that can be a challenge outside of the mature markets.
Making sure the work is carried out as requested can prove a difficult obstacle, but it can be done.
It is hard to speak to anyone in a UK-based company at the moment without raising the question of Brexit and the preparations
that firms operating internationally are having to make to cope with an unknown future. “Honestly, it’s very difficult to plan for it because nobody knows what is going to happen,” John Sutton (left) says. “What we’ve done is work with our customers to help them plan. The impact will be on our customers in terms of import and export duties.”
Suttons has been helping its clients stockpile inventory on both sides of the English Channel, which will provide short-term protection against the inevitable disruption. Sutton expects to see short-term disruption at UK ports but, as there are plenty of routing options between the UK and continental Europe, he is confident that these will be ironed out relatively rapidly.
The belief is that deep-sea ports will be able to handle the change as they are already set up to manage high levels of cargo and various protocols. The UK chemical market appears to be doing quite well throughout the Brexit process and Sutton points out that customer demand and utilisation levels in its domestic fleet remain high.
Long term, things are very difficult to predict in any form. The consensus is that
trade will happen, logistics will adapt, and the process will become fluid. However, it could be the case that driver numbers are affected as the freedom of movement is halted. Wage costs for UK drivers have been increasing over the past few years – whether that has been accelerated by Brexit and EU drivers leaving the UK remains unclear – but as the industry as a whole employs large numbers of foreign drivers, the impact could hit hard. Suttons itself does not employ a large number of non-UK drivers, but the wages for their UK drivers could increase as they become more in demand.
Solving short term delays, discrepancies and shortages is more important for Suttons as it focuses on providing the highest levels of quality for clients. The largest concern is ensuring that quality and safety are maintained during any transition process. As it is a constantly evolving beast, Suttons is keeping a close watch on any new developments and adapting accordingly. HCB www.suttonsgroup.com
SINCE MOVING TO Amsterdam a few years ago, the annual LogiChem conference has been rejuvenated. It has found an important role particularly in disseminating information and experience about the process of digitising the chemical supply chain, this year attracting some 1,300 delegates to hear from industry leaders about how they are adopting innovations and enhancing efficiency in the logistics sector.
The three-day event opened at the Grand Hotel Krasnapolsky in the heart of Amsterdam on 19 February. Early morning starts and a packed agenda left heads spinning with the volume of information provided, of which this article can give merely an impression – particularly as many of the conference sessions split out into different strands to concentrate on particular themes.
As the chair for the first day, Peter Devos, joint managing director of the European Chemical Transport Association (ECTA), said, “Digitisation is a topic close to all our hearts” – not least his, as he has played a leading role in the development of a digitised version of the European Cleaning Document, the eECD and knows very well the hurdles that have had to be overcome to make that initiative a reality. Introducing the conference, Devos said he hoped that discussions would inspire the audience and offer a “bridge to the future” and open up the possibility of collaborative ecosystems in the supply chain (which, he said, some find “a bridge too far”).
The pace of development was ably illustrated by Sybille Mutschler, head of digital at
Clariant, who reprised her presentation from the 2018 event, reminding the audience of the need to get used to new business models, larger ecosystems, evolving technology and an absence of standards.
There is still time to get onboard but, Mutschler said, the spread is widening. There are still some companies, particularly small and medium-sized enterprises (SMEs), that are not yet on the digital journey, and many of those that are on that path are still in the experimental stage. Furthermore, there is as yet no evidence that digitisation is having an impact on the balance sheet. What it comes down to is, she said, “a race to get to an end-to-end view of supply chains”. Some companies are well advanced but they started years ago. What they have learned is that it is “a journey, not a project”.
Experience with the digital process so far shows that ‘internal kingdoms’ and corporate silos are an obstacle; most successful companies have redefined the areas of needs and skills. Mutschler was critical of system vendors, saying there is a tendency to over-sell their solutions; companies need to solve problems, not to represent a ‘use case’.
Experience has also shown that ‘big bang’ thinking is a barrier: the best results have »
come from learning through implementation and taking a gradual approach.
Developments are also being prompted by customers; a lot of companies have started to digitise the interface with their clients, either because of acceleration in the supply chain or because customers are demanding it. In addition, Mutschler said, there appears to be a pattern of the provision of additional services to customers, especially in the realm of big data analytics.
Platform economics has become a hot topic; there are a lot of startups – Mutschler mentioned Knowde as a notable example – but some incumbent players such as Amazon and Alibaba are moving into the chemicals space. Other chemical producers and distributors are also coming in. But in the end, it is not useful to ask: “Who will win?” It’s not about
platforms, it’s about networks, she said. The chemical industry has to get together and collaborate, “but that could get messy”.
Mutschler also mentioned the ‘B-word’ –Blockchain. A year ago this was still seen as an enabling technology that was in the future but there were plenty of examples over the course of the LogiChem conference that it is already being shown to be a way forward. Some companies are experimenting with Blockchain as a way to reduce costs and inventories but, she said, it’s most immediate applicability is in supply chains that require traceability.
Mutschler finished her presentation by saying that her summary this year was very similar to last years – only faster. And the need for collaboration cannot be ignored.
Paul Brody, global Blockchain leader at EY, had more to say on Blockchain, with the experience of implementing more than 300 client projects. “Blockchains will do for networks of enterprises and business ecosystems what enterprise resource planning (ERP) did for the single company,” he said. But he had some warnings to offer: if the system is not broken, companies will not make any money fixing it; and in particular, private Blockchains are a dead end – there can only be one.
Heinz Günther Lux, sensor digital analyst at Evonik, gave his experience of the digital journey, citing five trends:
• The growing use of automation and robotics in production
• Applying artificial intelligence (AI) to use unstructured information intelligently
• Allowing big data to work for the company
• Growing use of ‘e-money’ – or the ‘functionalised euro’ – in automated invoicing and payment
• Use of Blockchain to change how systems interact.
Digitisation can take over the routine work, “leaving people to do the interesting stuff,” Lux said. That means there is a need for different skills in the workplace; people will need to understand the whole process, not just their particular role.
Lux also addressed the issue of legacy systems, which many see as a barrier. But, he said, big investment is not necessarily the answer, just the right ideas. Simple processes are already available to link legacy ERP systems between business processes, which points to the use of Blockchain technology. However, a company cannot simply ‘buy’ Blockchain and force it on its partners: all participants in the supply chain, including customers, need to sit down and define their needs.
Two speakers from BASF gave their insights on how the company has experienced the digital journey. Jan Brüning, cluster head of smart supply chain, reminded the audience that BASF had set out to define a digital road map in 2015 and quickly identified the need to break down the silo mentality and “build some
logic into processes”. The vision was to create visibility on the end-to-end flow of material via a central platform and, through horizontal integration and collaboration, to generate end-to-end planning in real time.
BASF found that initiating the digitisation journey requires a ‘sandbox’ with a mandate from the CEO. “We have to challenge existing ways of thinking, we have to be agile and imaginative, with out-of-the-box ideas,” Brüning said. “We have to be able to isolate this before developing the pilot. Be careful how this is funded.”
Brüning’s second finding from the process was that buy-in from users and clear leadership are prerequisites for successful scaling of pilots to the organisation level. The benefits need to be clear and need to fit with business KPIs. Leadership is crucial.
By the end of the ‘BASF 4.0’ project in 2018, the company had identified the need for a centralised data core but with decentralised accountability, Brüning explained. The digital transformation is built on the co-existence of a central push and a decentralised pull. “Build a common backbone with basic tools, without bloated bureaucracy,” he advised.
BASF is still not where it would like to be, but it is getting there, Brüning said. It has already cut inventory levels at customer locations and is getting more feedback. Digitisation is now seen as a core and integral part of the BASF business.
Holger Ruckdäschel, head of digital innovation, looked at some of the specific initiatives BASF has implemented, such as multi-load smart assets. For instance, it partnered with a startup, AHRMA, to develop smart pallets, which are equipped with a transponder that sends information on location, acceleration, temperature, humidity and weight to existing ERP systems. Putting in a system such as this opens up the possibility for users to think beyond the immediate application and about how the solution could be applied elsewhere.
BASF is well placed to do this sort of work, Ruckdäschel said. Its huge internal ecosystem allows space for experimentation and to mimic the external ecosystem before rolling out new ideas. “Start small but scale fast,” he said, and be prepared to fail fast.
There was plenty more on digitisation during the first day’s presentations, but the second day moved towards “the real ugly world out there”, as Maarten Cornelissen, head of supply chain at Teijin and chair for the day, put it. Lars Koppelmann, vice-president of supply chain management and logistics procurement, EMEA at Ineos Styrolution, was a little more measured, describing it as “an increasingly dynamic, volatile world” where the US president can start trade wars or shift stock markets with a Tweet, where children »
are protesting in the streets – and don’t get him started on Brexit.
This is all summed up in a handy new abbreviation – VUCA (volatility, uncertainty, complexity, ambiguity). Europe has failed to address ageing and limited road and rail infrastructure, Koppelmann said; in contrast, many Asian countries have invested heavily and quickly on hinterland connectivity. The European focus on stricter regulation, especially on environmental issues, is not addressing capacity problems.
All this VUCA generates big changes in product flows and the logistics function now has to be a differentiator in business. Ineos wants to use more rail transport in Europe but the capacity is not there; it is not flexible and not reliable. Similarly, barge transport has been subject to disruption from low or high water levels on the Rhine.
Digitisation can provide real value and collaboration is vital, Koppelmann said, not just between companies but between industry and government.
In a panel session, Cornelissen said that recent product shortages meant that Teijin turned from an exporter to an importer; finding the product was no problem but transport capacity was – the company had to buy product at a location where transport was available. That led into a discussion of the relationship between shippers and their logistics service providers (LSPs), with Jan Roed, head of global logistics at Borealis, saying that price is becoming less and less important.
Sustainability demands point to greater use of rail and barge, even if those modes are costlier and less reliable. “Customers are not willing to pay for short lead times,” he said, “they are more interested in reliability.”
The topic of sustainability was picked up on by Steven Beddegenoodts, lead of the petrochemical supply chain at Sabic, who said that sustainability is “more real than money”. How do you measure it? He advised to look at where the carbon is coming from – and in the logistics sector that is mainly in truck exhausts. For chemical companies, logistics operations account for only 4 to 7 per cent of their total greenhouse gas (GHG) emissions – but they are more visible to the public.
The new Global Reporting Index programme includes limits on emissions from transport operations, which will be mandatory from 2022. For any shipper, the only way to reduce overall emissions is to shift modes, Beddegenoodts said. He noted that recent improvements in ship design have shown that fuel savings of up to 32 per cent are possible.
“Think if that happened on trucks!” he said.
But sustainability is more than just about the carbon footprint. “What you do should matter,” Beddegenoodts continued. “Transport will never be totally sustainable –there is a need for fuel to move things from A to B.” But companies can look at issues such as human development, Corporate Social Responsibility, better SHEQ »
standards, plastics pollution, and so on. Also, as he concluded, “If it’s not safe, it’s only sustainable until your luck runs out.”
There was an interesting panel discussion on the thorny issue of driver waiting times, involving Jan Roed, Peter Devos and Pablo Nosti of DuPont. Drivers are in short supply in many markets and it seems ridiculous that they spend so much of their time hanging around rather than driving, which may also deter new entrants to the business.
As Devos put it: “Look at it from the driver’s point of view. He’s filling your order, his profession is driving, not hanging around. Even if the driver is compensated for waiting time, it’s still a frustration. It’s now becoming a liability – drivers are leaving to more rewarding roles.”
Nosti observed that driver waiting times can highlight inefficiencies in producers’ own processes. “We don’t work on it enough,” he admitted. Devos reminded the panel
that a working group looking at driver shortages recommended the use of time slots. That was in 2007 and traffic congestion has worsened since then (“especially in Antwerp”), he said. And it’s not just at the shipper’s plant; the driver may have to wait to unload, to clean the tank and then again at the next load point.
“We need to start collecting data,” Nosti said, “and to start working on allowing outof-hours loading.” DuPont is trying to bring the conversation into the contract renewal process and give its LSPs the opportunity to reveal the extent of the problem.
Devos agreed that opening up the dialogue is a good thing and will help identify inefficiencies. It will also allow parties to look at the end-to-end transport chain; for instance, at present, if a truck is parked up outside the plant waiting for entry, it does not count as ‘waiting time’. It also appears that LSPs are beginning to avoid serving those facilities that are known to have long waiting times.
ECTA has been working with the European Chemical Industry Council (Cefic) and the International Road Transport Union (IRU) on the problem; a report is expected later this year. It may point towards the use of preloading, with loaded trailers parked outside the plant so that drivers can just pick them up, and towards greater use of multimodal transport. Essentially, though, “Drivers need to be treated with respects at both ends of the trip,” Devos stresses.
Technology is now available to automate the entrance procedure and loading/unloading operations, and some pilot projects are underway, Devos noted. This is fine for regular operations but there is no standardisation between companies, or even between one company’s various locations. However, it looks like a solution for the future. HCB
Speaking of the future, next year LogiChem will up sticks again and will take place at De Doelen ICC, Rotterdam on 17 to 19 March. Full information is available at https://logichem.wbresearch.com.
Chemical Express, an Italy-based specialist in the transport of chemical products, has taken action to ensure its environmental impact is constantly improving. The most recent marking awarded the company 70 out of 100, which is far above the industry average of around 40 out of 100. This score was replicated when examining labour and human rights implications, again showcasing that Chemical Express is going above and beyond when compared to industry as a whole.
The topics of safety, sustainable development and workers’ health are top priorities for Chemical Express. Sizeable economic resources are being invested in these sectors that not only improve the working conditions and welfare of employees, but also highlight great development as Chemical Express scored 60 out of 100 when it came to sustainable procurement. Again, this is far above the industry average of around 40 out of 100.
TAKING A PROACTIVE approach to corporate social responsibility (CSR) is highly beneficial to businesses. Providing a self-regulating business model that focuses on accountability and development to itself, shareholders and the public frequently reaps multiple benefits, including a stronger brand image and recognition, increased customer loyalty and the ability to attract talent and retain staff. Chemical Express has recently been awarded a Gold Medal in CSR by EcoVadis and has attained the enviable result of being in the 96th percentile.
EcoVadis provides a holistic CSR rating service for companies, delivered via a global cloud-based Software as a Service platform. Covering a broad range of nonfinancial management systems, such as environmental, labour and human rights, ethics and sustainable procurement impacts, EcoVadis assesses each company on its material issues as they pertain to the company’s size, location and industry.
Chemical Express has taken steps to promote its transparency to the public and demonstrate that it has been actively listening to concerns around social issues, environmental protection and safety for all operators. Collaborating with trading partners,
Chemical Express has utilised its corrective action plan to take action and improve on different areas. Following the published results, Chemical Express will be sharing its CSR performance with its various trading partners to continue promoting transparency and aiming for new global benchmarks.
“The improvement plan is suggested directly by EcoVadis, according to the score achieved. We are especially focusing on reporting about environmental, labour and human issues and measures to prevent corruption,” says Francesco Mattozzi, account manager at Chemical Express. “Additionally, there are a lot of KPIs on which we will measure our performances, like injury rate, lost day rate and direct GHG emissions.
“We strongly believe in these values and we want share them with all the stakeholders that have the same sensitivity towards these issues,” Mattozzi continues.
Chemical Express offers logistic solutions that can be tailored to meet individual demands and is highly experienced in the transport of hazardous cargo by road, train and sea, with maximum efficiency and safety. More information can be found on Chemical Express’s website, www. chemicalexpress.it. HCB
truck consignments from the roads to the railways over the course of a financial year.
In the beginning, Kombiverkehr was founded by the long-distance freight forwarding, shipping and furniture transport sectors, as well as Deutsche Bundesbahn and 56 road hauliers and freight forwarders. A few months after being founded, the first truck consignment was handled. Now, the company runs a European network with over 770 direct and shuttle trains a week. Annually, over 900,000 truck shipments are successfully handled by Kombiverkehr.
– KV 4.0 – alongside ten network partners with the aim of making the logistical process more transparent and manageable for everyone involved. Starting with the collection of the transport unit from the shipper and providing support to its delivery to the recipient, it is a large scope for a project.
KV 4.0 is in development and is due to begin its technical implementation in the coming months.
KOMBIVERKEHR KG, THE European market leader in intermodal rail transport, has reached an impressive milestone of 50 years of service to the industry. Started in 1969, the aim of Kombiverkehr was to move long-distance freight traffic from road to rail – a goal that is still at the core of its business practice today. In 2007, the company became the first European operator to shift over one million
Robert Breuhahn, managing director of Kombiverkehr, says: “With countless innovations in the areas of sales, operations, IT and technology, our employees have lost none of this pioneering spirit over the last five decades. They have repeatedly set new standards that have added value to the intermodal transport sector in Germany and Europe and made it into a success story.”
Efficiency in handling is a priority for Kombiverkehr and digitisation appears to be the answer to providing future viability.
Focusing on intermodal supply chains, the company has launched a digitalisation project
Railway performance is an area that Kombiverkehr is keen to improve. In recent years it has been noted that European railways have often been failing to meet punctuality targets, due to a combination of factors, including engineering works, a shortage of train drivers and locomotives and less predictable factors such as poor weather and strikes.
“Even though an anniversary year gives us good reason to celebrate the company’s achievements over the past 50 years,” says Breuhahn, “we will not let up in our ongoing demands for huge improvements in quality from our service providers because the punctuality of our trains is absolutely crucial to the continuing success of the company in years to come. This applies both to us and to our customers.”
In the past year, Kombiverkehr has completed 937,837 total unaccompanied shipments. Of this, hazardous goods accounted for 145,798 shipments, more than 97,000 of them moving internationally.
When it comes to hazardous goods, Kombiverkehr has the in-house expertise to advise shippers on the relevant legislation and the proper packaging. It is also expert in the multimodal shipment of hazardous goods by rail and sea, and provides online oversight of shipments via the tracking and tracing platform CESAR. Staff receive regular training in dangerous goods regulations.
Most types of hazardous waste can also be carried in combined transport, but shippers need to be alert to the fact that they are not allowed in all terminals; Kombiverkehr has a specialist team on hand to advise shippers. The company’s website provides a lot of links to official publications relevant to
the shipment of both hazardous goods and hazardous waste.
Whatever the cargo, rail transport offers significant environmental benefits, something that should be on the wish-list of every executive operating in the supply chain. Every truckload moved onto the railway by Kombiverkehr reduces emissions of CO2 by 60 grams per tonne-kilometre compared with transport by road.
On an annual scale, Kombiverkehr transports around a million consignments every year over an average distance of more than 800 km. This road-to-rail saving is equivalent to a transport output of over 17.5bn tonne-kilometres. As freight in Europe is widely expected to increase – up to 59 per cent on road alone by 2025 according to some estimates – providing a service that is efficient, prompt and reduces an impact on the environment is key to prolonged success. HCB www.kombiverkehr.de
A virtual dossier on the monitoring system helps reduce the administrative burden for clients. Personalised dossiers, containing all the data relating to specific transport fleets, is managed by RTChem and can be viewed online at any time. RTChem will also deal with rental agreements, inspections and non-routine maintenance expenses, look after invoice verification and further charging in accordance with companyspecific requirements.
TRAFFIC JAMS AND increasingly restrictive regulations are the most common problems that road transport companies have to cope with. But, thanks to technical and operational developments and the number of different private players that have joined the market in recent years, rail can now offer a valuable alternative, RTChem believes.
Seeking a logistics service provider that is certified, experienced and meets individual company requirements is pivotal to success when embracing rail. Rail freight management in Europe is RTChem’s core businesses. It offers unit trains moving huge quantities of goods in regular operations. It also assists
with procuring freights for individual wagons on the conventional networks of European state railways. This allows owners of their own fleet of wagons to focus 100 per cent on core competences.
Support is the key to success. RTChem can manage wagon fleets, relieving businesses of the burden of time and resource-intensive work. The intelligent fleet management system is based on the latest IT systems, ensuring clients are always kept up to date via the monitoring tool. Freight management can be readily combined with other services provided by RTChem, such as fleet or damaged wagon management.
By analysing key performance indicators, RTChem checks the logistical parameters in the transport chain and can identify existing optimisation opportunities. Up to 20 per cent of logistics costs can be saved, the company says, greatly contributing towards improving shippers’ competitiveness.
Having direct access to the key points in the transport process and acute knowledge of return times and movement frequencies allows RTChem to massively reduce roundtrip times. The standing times during unloading and loading are traceable with »
RTChem, making costs quantifiable and allowing customers to plan production exactly and know which wagons will return at what time.
Customers are proactively informed by the specialists at the RTChem Operation Centre in the event of irregularities. Furthermore, clients have the opportunity to access the monitoring tool at any time using a password-protected internet, allowing them to take advantage of RTChem’s specialist knowledge. The system is designed in a modular fashion, providing each user with the services they need.
In the event of unplanned downtime, clients can rely on RTChem’s extensive experience and large contact network of mobile service teams and workshops. If a wagon suffers damage, RTChem will immediately inform the client, advise on the repairs that are needed and the likely cost – including downtime, cleaning and empty freight runs – and will arrange an immediate replacement.
Repairs will be carried out directly at the site (if possible) by RTChem’s mobile service
teams. Using a mobile service team means that no transport runs to workshops needing to be made, saving a lot of time and money. If a stop at a workshop cannot be avoided, the specialists at RTChem will intervene and ensure repair times are minimal. Regular updates on the status of the damaged wagon for the duration of the repair and a strict invoice check guarantees that repair expenditure remains within the quote.
RTChem prides itself on having the flexibility to identify, source and manage the best options for its customers – notably those shipping chemicals, pressurised gases, oils and powders. A close partnership with Millet SA provides RTChem with highly experienced associates on delicate matters such as wagon management and the maintenance and repair of rail cars.
The technical support provided by RTChem encompasses consultancy in conjunction with technical and product-specific evaluations
and dangerous goods appraisals concerning equipment. Furthermore, RTChem assist in technical or legal revisions, utilising industry knowledge for clients during negotiations with suppliers from specific areas of technology.
As a specialist in the transport of chemicals by rail, RTChem has been a participant in the Safety & Quality Assessment for Sustainability (SQAS) system since 2007. SQAS was established by the European Chemical Industry Council (Cefic) some 25 years ago as a way of providing consistent evaluation of the level of quality, safety, security and environmental performance of logistics service providers in the chemical supply chain. In cooperation with the International Union of Railways (UIC), an SQAS package specifically designed for rail operators was introduced in 2000.
According to RTChem, rail traffic is the most reliable traffic mode and it comes with a high level of safety, so much so that the accident rate of rail traffic participants is almost zero. Furthermore, because of the low emissions from rail travel, environmental concerns from clients can readily be met. RTChem states that only 8 per cent of environmental impacts from the transport industry come from railway transport, while road transport is responsible for up to 90 per cent – even though road traffic performance is around 50 per cent lower than the traffic performance of rail transport. Road transportation globally is experiencing a growing number of requirements and regulations on speed, punctuality, reliability and flexibility that all favour rail transport in the eyes of RTChem. Rail enables the transportation of a larger quantity of goods on medium or long distances at relatively low costs. This is particularly useful when considering border crossings, which typically have reduced restrictions on rail when compared to road, decreasing time spent in transit. HCB www.rtchem.eu/en
WITH 2019 NOW well underway, THIELMANN is working on new and innovative ways to serve its customers. The company will be taking part in the Transport Logistic exhibition in Munich from 4 to 7 June and looks forward to seeing what trends operators across a range of sectors are most interested in and how latest THIELMANN technology developments can help them overcome their biggest challenges. “Logistics is an increasingly important driver in changing global markets, which is why exhibitions such as Transport Logistic are such important events for us to get out to and talk to our customers about the developments and innovations we are working on,” Sebastian Bojarski, THIELMANN product line director, says. “For many, effective logistics are the
cornerstone of their business models - with the ability to efficiently transport, store and distribute goods dictating where our customers can operate and how they can reach their customers.
“Our role is to make these processes as simple as possible, and provide end-to-end solutions that deliver not just efficiency, but have a direct impact on the bottom line – our ultimate goal is to help our customers achieve their business goals and we are working on innovative ways to do that.”
The company will be focusing on a number of new technologies at the event, and in particular will be highlighting a new solution currently in development for the chemical market.
THIELMANN has a unique understanding of the constraints under which customers in the chemical sector are operating. In 2018 the company delivered fuel tanks to the Norwegian Polar Institute (NPI) for use in a fuel tank farm near NPI’s Troll Station, the Norwegian research station in Antarctica. The tank systems were designed to meet the harsh operational realities of operations in an environment where there is very little in the way of second chances. Certified to store and transport jet fuel, diesel and petroleum via road, rail and sea, the tanks were filled with diesel fuel for transport to Troll Station. As with the majority of THIELMANN’s fuel tanks, the systems could be deployed with minimal site preparation and were ready to begin discharging fuel immediately after their arrival on site.
“This was an immensely demanding project that needed an industry-leading expert to design, manufacture and deliver tanks capable of withstanding the challenging operational conditions at Troll Station, where temperatures can get as low as -40°C,” Bojarski says. “The tanks needed to be built to withstand those conditions without requiring heavy maintenance throughout their service life. »
“Luckily THIELMANN stainless steel solutions can deliver on these requirements, and we were able to deliver these tanks on schedule. We are confident they will continue providing fuel for the next 30 years or more.”
THIELMANN is currently putting this experience to good use and a system that based on a similar design approach will form the focus of the company’s presence at the Transport Logistic exhibition.
The double-shell container system has been designed to meet the needs of the chemical industry. Fitted within a 20’ x 8’ x 8.6” frame with welded headbeam design, the tank has a nominal capacity of 7,500 liters (7,125 litres at 95 per cent filling). It is equipped for top discharge and approved for storage and transport on road, rail and sea of products in accordance with UN T20 approval, including methyl dichlorosilane, trichlorosilane and chlorosilane.
The tank has a working pressure of 6.66 bar, a maximum gross weight of 36,000 kg and a stacking weight of 192,000 kg. It is certified for handling according to ISO 3874 where applicable. Additionally, it can be fitted with access equipment including walkways (longitudinal and transverse), ladders (with foldable sections at top and bottom) and handrails.
The tank is manufactured from 1.4404 stainless steel. Accessories are manufactured in 1.4301 stainless steel and aluminium. Top surfaces are covered with anti-slip material for operator safety, and spillboxes with drainage tubes prevent pooling and direct overspill away from walkable areas.
The tank is also able to be fitted a 3-mm thick heating system. These heating channels can keep the tank heated in order to ensure the stability of the substance it contains, and further insulation is also a possible option.
As with all THIELMANN designs, the tank can be tailored to meet specific requirements and adjusted to meet the demands of all operations, no matter how niche. For example, heating and cooling systems in various designs can be used – from thermal oil, water and steam, and electric heating systems, to heating and cooling systems – with documentation recorders for materials which may only be transported in specified temperature ranges. Tank insulation is calculated according to the temperature range and use of the unit, and cladding can be installed using matt or high gloss stainless steel, aluminium or fiberglass. For substances that require inner lining – such as some acids or alkalis - a number of options are possible, including Chemline, Proco-EMAIL, or Säkaphen; plastic coatings (PFA/FEP/Teflon), special interior lacquers, lead linings and glassenamel coatings are also available.
“This design is testament to the extraordinary capabilities of our design engineering team, as they continue to push the limits of what is possible for our customers operating in demanding sectors,” Bojarski says. “Our long experience working with our clients in the chemical, oil and gas, nuclear, emergency services and government sectors have given us deep insight into the challenges these users face and how our solutions can overcome them.
“We specialise in the different and the complicated – our ability to take on these difficult projects and serve our customers with innovation is what sets us apart from our competitors. Whether the project requires multimodal transport, ancillary equipment such as pumps, specialist linings, filtration, telemetry as well as heating and cooling systems, our tanks are designed and approved for the transport and storage of some of the most dangerous and toxic chemicals on earth.” HCB www.thielmann.com
IBCs for nearly two decades and also works closely with Samvardhana Motherson
Peguform (SMP Automotive), a major customer of Wörwag. Wörwag is a specialist in the production of high-quality paints for a wide range of industrial applications, and SMP is a specialist in plastic-based components for major automobile manufacturers.
wetting defects affecting both the appearance and protective function of the product. Rectifying compromised products can lead to considerable additional costs, so minimising the risk of contamination throughout the supply chain is absolutely essential.
THE AUTOMOTIVE INDUSTRY frequently relies on layers of coatings that are a tenth of a millimetre thick; any contamination in these coatings can drastically compromise their protective function. This is particularly true with surfactant substances, such as silicone oils and fats. Any irregularities and issues with these substances can lead to
The risk is even greater when viscous coatings are involved. These require stirring before use, but the introduction of a stirrer into the container can add to the potential for contamination. Even opening or closing the packaging can introduce forms of contamination.
Intermediate bulk containers (IBCs) are frequently used to transport and store coatings and IBC producers have been looking at how they can work together with fillers and users to mitigate the risks of contamination.
For instance, Schütz has been supplying Karl Wörwag Lack- und Farbenfabrik with
Wörwag and SMP had been seeking a solution to minimise the risk of contamination during filling and subsequent processing of clear coatings and primers. Schütz offered its Cleancert line of IBCs, configured to support the process with an Impeller and an S56x4 bung. Thanks to the integrated Impeller, the container is able to remain closed throughout the entire supply chain – from filling to emptying. Concurrently, the contents can be easily and effectively stirred. Conventional stirrers are no longer required, drastically reducing the risk of contamination.
Furthermore, Schütz’s IBCs are able to use the available space more efficiently than alternative solutions. Whereas only two steel containers can be stacked atop each other, up to four IBCs can be stacked together, substantially improving the use of storage space. The need to store empty containers is also significantly reduced through the use of the Schütz Ticket Service. This collection service ensures that emptied IBCs remain at the plant for no longer than seven days – it is not unknown for empty steel containers to remain in the plant for up to a month, which has historically caused bottlenecks in warehouses.
“These advantages absolutely convinced us, and that is why we use Schütz’s Cleancert IBC for clear coatings and primers as these products are particularly sensitive to surface defects,” says Benno Beuter, application engineer at Wörwag.
Over the course of several weeks, SMP conducted a series of tests to accurately document the benefits of the Cleancert IBC and Impeller closed packaging system in practice. Clear coats, primers and base coats are continuously stirred in an air-conditioned paint mixing room during processing, ensuring a homogeneous consistency. »
When testing with external steel stirrers, 140 to 200 revolutions per minute were required to maintain homogenisation. This high speed led to increased air intake into the product, which culminated in an amplification of microfoam formation. However, when stirring with the Schütz Impeller, only 80 to 110 revolutions per minute were sufficient. The lower speed ensured gentle stirring processes with optimum results. Anton Krojer, the SMP application engineer in charge of the test series, was highly satisfied with the positive test results, saying: “Thanks to the efficient stirring processes, we no longer need preparatory homogenisation measures prior to a container change.”
“The use of the Impeller as a disposable system completely rules out the risk of contamination due to residual product adhering to the stirrer. This greatly increases process reliability,” says Manfred Guttmann, head of the paint shop at SMP. “This eliminates the complex and time-consuming cleaning process for the agitator, as well as other risks. Employees no longer have to handle solvent-based cleaning agents, which greatly improves work safety.”
Through these tests, SMP was able to dramatically reduce the amount of work spent on corrections. Additionally, the tests highlighted the benefits possible and revealed business management advantages. This cross-party cooperation shows how important it is to involve all companies along the supply chain to achieve higher levels of compliance and efficiency.
According to Schütz, the initial idea for the development of the Cleancert IBC was prompted by the food industry, where production sites are certified according to the Food Safety System Certification (FSSC) 22000 standard, combined with the implementation of numerous specifications within the framework of the hazard analysis and critical control points (HACCP) and failure mode and effects analysis (FMEA) standards.
Hygiene is clearly vital in the food industry, with detailed regulations covering the cleanliness of personnel, their closing, the workplace and its equipment. Measures also include the prevention of dust, contamination, and glass and blade management procedures. There are maintenance regulations and checks on machinery, systematic pest control across the facilities, controlled use of all working materials – particularly when dealing with greases and lubricants – and a secure goods receipt.
Using a just-in-time model, Schütz works on the basis of specific customer orders. Immediately after the blowing process, IBC inner bottles are transferred to the final assembly stage and installed. Each production step and each component can be clearly assigned to the corresponding packaging.
Identification via a barcode system enables complete traceability. There is also the ability to assign individual identification numbers for articles or packaging materials.
Once finished, the IBCs are loaded indoors and shipped directly, avoiding intermediate storage. Pre-produced components, such as screw caps, outlet valves or bung plugs, are hygienically packed and stored separately. Specialised closed rooms are available for shipments that are due to be dispatched at a later date. Optional plastic covers can be introduced to offer an additional layer of protection.
Ultimately, once combined, all of these precautions and detailed steps provide a huge amount of assistance to maintaining the quality of subsequent products across the supply chain. HCB www.schuetz.net
additional value-added logistics activities; filling, bagging and drumming, to our present and future clients.”
Broekman now has more than 500,000 m2 of warehousing space in the Benelux countries, of which almost half is dedicated to the storage of dangerous goods.
www.broekmanlogistics.com
Stolt Tank Containers (STC) has reported a first-quarter operating profit of $15.7m, down from $18.1m in the previous quarter and slightly below last year’s first-quarter figure of $16.2m, reflecting a usual seasonal decrease in shipments along with “continued softness in most markets” and “intensified price competition”.
Katoen Natie is to invest some €80m to expand its value-added logistics offering to the chemical industry. Central to the investment is a 12-ha greenfield project on the Chemelot site in Limburg, in the eastern Netherlands. The company plans a new 54,500-m2 warehouse and silos, with the site able to offer repackaging of chemicals, purifying of contaminated products, compounding and compacting services. The new Chemelot terminal is expected to be operational in the second quarter of 2020.
Further expansions are planned for the existing Nuth and Born facilities in Limburg. Another 10,000 m2 of warehousing space and 60 silos are due to be operational at Nuth by the end of this year, while acquisition of additional land in Born will allow construction of a new 35,000-m2 warehouse for the automotive sector. Katoen Natie is also investing in transport assets, planning to add 115 new trucks, 45 dry bulk trailers and 10 liquid bulk trailers this year.
“With this expansion, Katoen Natie affirms its position as the leading logistics
and industrial services provider for the chemical industry in Europe,” the company says. “The implantation of its logistics platform on the Chemelot site will produce significant transport savings for Katoen Natie’s existing customers and reduce overall CO₂-emissions
In total, the 100,000 m² of added warehouse capacity and value-added logistics operations will create 75 new full-time jobs in the region.”
www.katoennatie.com
Broekman Logistics has completed the integration of the former VLS-Group sites in Belgium and the Netherlands it acquired last year. They are now operating under the Broekman Logistics banner.
“With these activities in Antwerp, and our recently opened newbuilt facilities in Venlo and Rotterdam Maasvlakte, we can lighten the burden of our specialty chemical clients from the three main logistics hotspots in Europe: Port of Antwerp, Port of Rotterdam and Limburg area,” says Willem Jan van Amersfoort, managing director of warehousing and distribution. “Besides that, we can offer new,
“While market conditions have been challenging for the past several quarters, we anticipate a seasonal pick up at least through the first half of this year and remain enthusiastic about the long-term outlook for this business,” says Niels G Stolt-Nielsen, CEO of parent company Stolt-Nielsen Ltd. www.stolt-nielsen.com
VTG and DB Cargo report that their joint research project to develop and test innovative freight wagons has been completed successfully. The findings show that the wagons use between two and three per cent less energy and are even more cost-effective thanks to customerorientated adjustments and digital improvements in operations.
The trial involved car transporters, multifunctional flat wagons for steel shipments as well as tank cars. DB Cargo has ordered 300 new units and VTG’s CEO, Dr Heiko Fischer, says: “Our collaboration showed how rail transport can be made quieter, more costeffective and more energy-efficient. We are now carrying these findings over into our operations: the newly developed wagon types have been added to our regular rental portfolio and will be
available to our customers in the future.”
The project was launched in autumn 2016 with test operations starting in March 2018. The project cost some €22.5m, of which around €18m was provided by Germany’s Federal Ministry of Transport (BMVI). www.innovativer-guterwagen.de www.vtg.com
Calgary-headquartered Gibson Energy has sold its Canadian trucking business to Trimac Transportation for some C$70m, with another C$30m for its office and shop facilities in Edmonton, Alberta. The deal finalises the strategic divestiture of non-core assets announced in January 2018.
“Through these divestitures, we have focused our business around our core energy infrastructure assets, significantly high-graded our quality of cash flows and have ensured that we are fully funded for all growth projects currently under construction,” says president/ CEO Steve Spaulding. www.gibsonenergy.com
aviation fuel to East Midlands airport and the distribution of ethanol across the UK.
“We’ve been working with Valero for more than 25 years. In that time, we’ve built up a strong partnership with Valero and developed a real understanding of the needs of its customers,” says Chris Fenton, managing director of industrial and transport at Wincanton. www.wincanton.co.uk
Eurotainer has chosen to equip it tank container fleet with telematics units from Intermodal Telematics (IMT), enabling worldwide monitoring for its clients. “In our decisionmaking process, we have done extensive tests with several telematics providers and have found that IMT excels on a hardware, software as well as support levels,” says Marco Beije (above), purchasing and technical director at Eurotainer. “Important factors that play a role in our choice for IMT are quality, reliability and thinking along with our wishes and needs. IMT has clearly set the standard for telematics in our sector.”
“Where in the past only tank operators and shippers were interested in telematics on their tanks, we clearly see a market shift where also leasing companies and tank manufacturers are seeing the benefits telematics can deliver them and their customers,” says Bernard Heylen, sales director of IMT. “Getting Eurotainer on board means a lot to us. It clearly shows that the market is ready for the next step towards telematics. With this partnership Eurotainer is clearly positioning themselves as an innovative market leader.”
www.eurotainer.com
www.intermodaltelematics.com
Wincanton has renewed its UK fuel distribution contract with Valero Energy for five years. The deal involves the supply of road fuels from Valero’s UK terminals to more than 700 Texaco-branded filling stations, involving around 200 deliveries a day and an annual volume of more than 2bn litres. The contract includes control of a vendor-managed inventory system, as well as the delivery of
Den Hartogh has begun taking delivery of this year’s 88 new tractor units, destined to replace ageing trucks. The first four Volvo trucks have been delivered to the Rozenburg site in the Netherlands and will be used in Belgium; the remaining Volvo and MAN units will arrive across Europe in the coming months. All cabs are equipped with the latest comfort and safety options and have Step-D Euro-6 engines with eco-tuning software to help reduce fuel consumption.
Den Hartogh also reports that it is adding a number of new tank container (below) to its fleet this year for the dedicated transport of methylene diisocyanate (MDI). www.denhartogh.com
This old adage is taking on new significance as digitalisation transforms our economies. Today, we stand at the precipice of a global productivity revolution and the watchword of this will be: ‘work smarter’.
Yet, while this transformation will free us from a great deal of wasted time, it will also require us to change the energy industry. In the future, we will all be required to learn new skills and change the way we work – quite fundamentally – to adapt to this emerging reality.
This requires workforces to change their cultures and mindsets, while also learning new ways of working. This is no small task. Yet it is vital, because those who succeed will find themselves at a competitive advantage.
Digital applications in energy have the potential to transform the sector, by delivering greater efficiency throughout the entire supply chain, by revolutionising companies’ relationships with their customers, and by unlocking the potential for deep decarbonisation through automating flexibility to match production patterns of renewable energy.
The earliest digital breakthroughs are in predictive asset maintenance, improved forecasting and real-time monitoring, and digital tools that aim to attract and retain customers. Drones and unmanned aerial vehicles (UAVs) for remote inspections, as well as process mining and text mining are also helping to improve efficiency. Digital twins allow ‘what-if’ and predictive
analysis to be performed on virtual representations of physical assets. Artificial intelligence is unlocking value almost everywhere it is applied.
So, while this revolution will be full of opportunity, we must ask ourselves some tough questions: What does the future look like? How do companies ensure they have the right structure and skills to lead this change? And what does the company of the future look like?
While still a nascent technology, predictive asset maintenance is becoming one of the more mature digital technologies in the energy sector – and it tells us important things about the changes to come. Today, predictive maintenance is at the cutting edge, but tomorrow it will be part of a much bigger system. We are still at the cusp of what the Industrial Internet of Things (IIoT) can do.
The guiding star for all ‘Industry 4.0’ technologies will be data. The data that these IIoT sensors gather will enable companies to identify and resolve problems remotely, allow engineers to deploy their time more efficiently and, eventually, machine learning might help plants automate simple engineering jobs. It will also allow plant owners to gain insights
into their own operations and identify how assets can be used more productively.
Energy companies are still only at an early stage in exploiting digital technologies and data streams, such as machine learning applied to rich data sources.
However, this future is not yet here. To reach this point, we need better access to clean, accessible data streams and we need to better identify where to focus our efforts. We also need to get around practical barriers like the interoperability of these sensors. Although the limits are expanding fast, constraints on processing power, data storage and algorithms mean that the 80:20 rule still applies to data analytics. It is these practical considerations that led Pöyry to co-develop Krti 4.0, a machine learning predictive maintenance framework that works across different kinds of sensors.
It begins with prioritisation using Pöyry’s RAMS (Reliability, Availability, Maintainability, Safety) methodology, to assess and prioritise the most relevant potential causes of failure. This RAMS approach distinguishes Krti 4.0 from less discerning systems, allowing Pöyry’s engineering experience to direct the system to focus on the most important data.
Tomorrow’s barriers will be the evolving relationship between humans and machines: we must learn when to trust machine decisions, how to monitor and when to take back control, and how to augment machine learning with humans’ experience and knowledge from beyond the data. For policymakers, it may also require changes to the way with think about regulation, as the lines blur between utilities and tech companies.
Yet for all of this, the biggest barriers will be ourselves. Today’s engineers have learned their trade in the last few decades, yet the skills required of them will change in the coming ones. In an interconnected, data-driven world, engineers will find they
are required to be software and hardware engineers, and even drone operators, as much as they are required to be power engineers. Knowledge and information will be treated as a precious company resource and will be managed and maintained.
This will require cultural transformation. Companies that adopt a forward-looking and nimble posture will steal a march over companies that are slower to adapt. The Silicon Valley “move fast and break things” mentality might seem anathema to engineers who have grown up in a world of careful design and planning, but just as tech start-ups are currently challenging the status quo in the transport and retail industries, they will challenge engineering too.
Another challenge is to develop digital solutions within a strategic plan, so that data sources are carefully consolidated and synergies are fully exploited.
Finally, in this fast-paced world, companies that do get first mover advantage must not rest on their laurels, lest the advanced technology of today becomes the legacy system of tomorrow.
All of this means those of us who are working in the energy sector can no longer consider ourselves discrete from technology experts. We must understand both worlds.
Companies and their people must now start planning to become digital-first. This is about weaving digital into the fabric of what we do – not simply as something that is bolted on.
What’s more is that this revolution is happening hand in hand with another one –decarbonisation. This will be complemented by the digital one. It will be digital technologies that facilitate decentralised generation, load balancing and demandresponse. Traders are already using AI-based forecasting and algorithmic trading to help them get ahead of their competition in energy markets, and digital tools are being used to help companies attract and retain customers.
It is this final element which makes the revolution inevitable. The energy industry simply will not continue as it is. As we’ve learned by speaking to clients through our own digital readiness service, change is often unsettling – even for those who understand it best – but it is happening, whether we like it or not.
If you haven’t started the journey to a digital future yet – start today. HCB
*Stephen Woodhouse is chief digital officer at Pöyry, an international consulting and engineering company serving global clients in the energy, industry and infrastructure sectors; for more information go to www.poyry.com.
AUTOMATION • DIGITISATION ACROSS INDUSTRY WILL ONLY SUCCEED WITH OPEN ECOSYSTEMS DEVOID OF PROPRIETARY SOLUTIONS. A NEW ALLIANCE HAS GIVEN IT A KICK START
ecosystem, which was also introduced to industry during the Hannover Messe.
The connection to the SAP software portfolio ensures the integration of a company’s business processes as well as collaboration with partners across company boundaries. The open architecture allows the simple connection of further system landscapes.
Endress+Hauser’s Netilion ecosystem is an early example of the approach. It combines applications and system components that significantly simplify system management and maintenance. The Netilion Scanner App, as well as Netilion System Components, make it easy to monitor the installed base, while Netilion Analytics provides an overview of the installed instruments. Netilion Health visualises and interprets the status of the installed base, enabling operators to quickly initiate maintenance measures when irregularities occur. Netilion Library offers an online data management service for the entire life cycle of the measurement point.
SEVEN LEADING SUPPLIERS in the fields of mechanical engineering, industrial automation and software have formed the Open Industry 4.0 Alliance. With this cooperation, the companies want to overcome proprietary solutions and give a decisive boost to the digital transformation of the European industry.
The founding members of the Alliance are: Beckhoff, Endress+Hauser, Hilscher, ifm, KUKA, Multivac and SAP. Since the Alliance was announced at the Hannover Messe 2019 trade fair, several more companies have joined up: Balluff, Gebhardt, Pepperl+Fuchs, Schmidtsche Schack, Samson and WIKA.
The Alliance is open to all companies working in the sector, with members showing a mutual commitment to the creation of a standardised and open ecosystem for the operation of highly automated factories and process plants with the integration of logistics and services.
“The open architecture of the Open Industry 4.0 Alliance meets all the requirements of the process industry,” says Matthias Altendorf, CEO of the Endress+Hauser Group. “It is based on standards, ensures transparency across all business processes and guarantees the integrity of the systems. This enables process plant operators to leverage the potential of digitalisation.”
The alliance members are planning to realise a so-called Open Industry 4.0 Framework based on existing standards such as I/O Link, OPC UA and RAMI for the entire route from objects in the workshop to services. Customers can choose from a modular system of compatible and scalable solution and service components, such as digital services from Endress+Hauser’s Netilion IIoT
The Netilion Scanner is more than just an app; it can be used to store images and other information such as GPS coordinates, tag numbers or the location of the instrument. Other measurement data such as the accessibility of the instrument, criticality or quality-relevant parameters can also be defined directly in the field and stored via the app. The data is then automatically saved online and stored offline on the instrument’s RFID tag.
Components such as adapters, gateways and edge devices facilitate automatic capture of the instruments and instrument data without having to interact with the control circuit. The installed base of instruments is now stored in the Netilion Analytics online service to automatically create a digital twin of the system. The installed base can then be analysed with the help of dashboards in order to initiate proactive maintenance measures for critical instruments or swap out discontinued instruments. Endress+Hauser already has digital twins of 40 to 47 million instruments, which serve as the foundation for Netilion Library. HCB www.endress.com www.openindustry4.com
and quite often they offer the possibility of additional data collection via external sensors, such as product temperature, pressure and loading status.
still provide distinctive sets of basic data that somehow need to be transformed into valuable information. Flexibility with data is required: what is valuable to one organisation might be irrelevant information for another.
If there is any magic involved in ‘smart’ or ‘intelligent’ freight assets it is in how a business creates and realises business value from basic data. There are several steps to achieve the path to value.
AN INCREASINGLY LARGE number of tank containers and rail freight wagons are being equipped with telematics devices and sensors for monitoring. Once a rare sight, it’s only a matter of time before the majority of all freight assets will have some form of monitoring hardware installed. Most of these devices provide the same basic information (location, speed, direction, ambient temperature etc)
Traditionally, if a company wanted a monitoring solution for its assets, it would shortlist different suppliers and choose the solution that best suited its specific needs. Today, many asset leasing companies and freight operators offer some kind of GPS/ telematics solution in addition to their normal services. In theory, this should make operations better, easier and cheaper.
But monitoring devices and sensors are not in themselves magic boxes. Of course, hardware must be reasonably priced, but even more important is quality, reliability and certification. Devices and sensors can be designed in different ways, but they
Firstly, basic data needs to be refined and turned into relevant information. Then, userfriendly tools and systems are necessary to work with the information, turning it into business intelligence, both on an operational and a strategic level. The next step is to add reporting and analytical tools and methods that can support decision making, process re-engineering and concrete actions.
Ultimately, this will create real business value for an organisation and customers. The key to success is not in the hardware’s technical details and specifications, but in value creation and a client’s ability to adapt and reengineer their systems and processes.
To successfully embrace the steps on the path to value, it is important to conduct a thorough analysis of what the purposes of »
having a telematics-based monitoring solution are and what is required to achieve them. No matter if the drive is a contractual customer requirement or if it’s to achieve 15 per cent more transports with the same fleet, the analysis can help define what is truly needed.
After analysis, businesses know what information and tools are needed, but how are they acquired? Should a business turn to a supplier that can provide an end-to-end solution, or maybe use the pre-installed devices, sensors and data provided by different leasing companies and freight operators? Should the systems and portals they offer be used, or an alternative from a third party? What if a business wants to integrate the information into its own environment, portals and business systems? It could also be any combination of the above.
Not only do decision-makers have to specify what information is needed, they also need to think about how the business wants this information to be made available within the organisation. If a client is looking to optimise its fleet usage, logging into several different systems with different capabilities and purposes will most likely not help with reaching the final goal. Likewise, wanting to analyse transport and turnaround times or estimated time of arrivals at destinations across Europe, having 500 dots on a map is not readily beneficial.
Another aspect that needs careful consideration is data security and who controls the information. If a business wishes to share content, tools and services with customers, suppliers or partners, how can they achieve this in a controlled and secure way with all these alternatives at hand?
All communication and data handling throughout the entire system must be encrypted and secured. Regardless of whether the customer is a shipper, operator
or other logistics service provider, the monitoring solution often contains highly valuable, sensitive and even confidential information. For example, sensitive details can include customer identities, their destinations and sales volumes and the exact locations of assets carrying hazardous cargo. Furthermore, as data integration between systems becomes far more commonplace, other internal data such as contract details and financial data could also be populating the system.
When the information and tools required have been defined and how they will be incorporated into operations agreed, a business will be in a good place to start working with a monitoring solution. However, even if this is handled well, the most crucial part remains: adjusting and improving processes and ways of working based on the new tools and information.
This challenge will vary between organisations, but it is crucial to involve the right people and highlight the possibilities available through the new level of asset visibility. Organisations need to anchor the purpose, goals and usage of the new information and tools throughout, making sure that the entire monitoring solution is set up in a way that supports the purpose and the goals defined. They should prioritise training, support and coaching of users and
continuously measure progress towards defined KPIs. An organisation needs to constantly develop both the monitoring solution and usage of it.
For more than ten years, Fleetmonitor has helped companies to implement and successfully use telematics-based monitoring to improve asset visibility. Its focus is to provide quality information and business value, rather than long technical specifications. Fleetmonitor can help companies fulfil goals whether that company is looking to begin monitoring freight assets or to improve already existing customs.
As the market develops, there are companies who are unhappy with their current solution or getting their GPS information from a variety of sources. Until recently, Fleetmonitor was packaged solely as a complete end-to-end solution, mainly for companies without a monitoring solution. Fleetmonitor has now been made available as a truly independent platform, allowing these customers to combine data from any sources they select. Success is achieved by combining powerful business intelligence tools with a user-friendly interface in a safe environment and continuous support from the Fleetmonitor team.
Fleetmonitor is a system developed by Sweden-based Yellowfish; it numbers among its clients Swedish railfreight operator Green Cargo and Sinochem International’s Albatross Tank Leasing. HCB www.fleetmonitor.com
WAREHOUSES • WITH WINDOWS CE WINDING DOWN, TOUCHSTAR IS MOVING TO ANDROID AND FINDING IT MORE FLEXIBLE AND ADAPTABLE TO THE NEEDS OF THE LOGISTICS SECTOR
imposed on developers by Microsoft Windows CE. With Android we have all options from the full Android OS experience available to us, so we can build solutions that offer what we know the users in the warehouse sector require.”
Designed in conjunction with TouchStar’s extensive user base, the latest generation in the TS8000 series, the TS8200, further enhances the existing range with a lighter and more ergonomically designed mobile computer.
The highly durable hard capped keys are optimally positioned to provide ultimate user comfort in scan-intensive environments. The dynamic data collection capabilities of the high-resolution speed laser scanner and advanced imaging technology allow for both close range and extreme long-range scanning capability. Furthermore, the availability of a hot swappable battery guarantees continuous operation and reduced downtime, maximising output and increasing workload efficiency.
Providing excellent visibility in all lighting conditions, the TS8200’s rugged touchscreen combines with the high-performance of the colour 5M pixel camera to provide startling productivity and efficiency gains for all supply chain scenarios.
TOUCHSTAR TECHNOLOGIES HAS announced two additions to its TS Series product suite. The Android TS8200 handheld and TS7200 truck-mounted terminal are powered by the latest high-speed processor technology and the next generation in mobile operating systems.
TouchStar says the new products “provide the ideal hardware solution for warehouse and logistics-based applications”.
As with existing TS Series equipment, the new devices maintain their robust credentials, with a combination of high-impact polycarbonate plastics, metal alloy chassis and Sorbothane® rubber shock absorbers that allow for an extremely reliable solution and prolonged life within robust environments. Both new devices allow users with mobile access to web-oriented applications and VT emulation,
streamlining operations for increased productivity and accuracy. Available with an array of communication options - Wi-Fi 802.11a/b/g/n, Bluetooth 4.1 and 3G/4G – they allow users to stay connected wherever they are and whatever task they are performing.
Moreover, plans by Microsoft to introduce a “slow sunset” phase-out of support for the Windows operating system (OS) have prompted TouchStar to introduce these new Android products. “We have moved to Android as it’s proving to be the most nimble, flexible, and adaptable OS. We’re also seeing more applications for warehouse use are being released specifically for rugged Android devices with support focused on those deployments,” says the company’s Jon Hall. “The good thing about Android is that it is an open source OS without the limitations
The new TS7200 has been designed to withstand the most extreme environments and to be versatile within all warehouse and logistics operations. It provides a robust, user-friendly mounting solution, allowing the terminal to be perfectly positioned for the user across all makes of forklift truck and material handling equipment.
The TS7200 replaces the physical keyboard with a fully capacitive QWERTY keyboard in a robust touchscreen that is fully resistant to dust, oil and water. Combined with the highdefinition graphics and keyboard, the TS7200 provides outstanding readability in both direct sunlight and all ambient lighting conditions making it the perfect overall solution for harsh and demanding environments.
TouchStar provides a wide range of handheld, wearable and truck- and vehiclemounted mobile computer, including ATEXcertified devices specifically designed for use in potentially explosive atmospheres. HCB www.rugged-mobile-computers.co.uk
capabilities will generate greater transparency to operational risks and help our customers proactively address potential disruptions in order to maintain smooth operations and high levels of customer service.”
TRANSPLACE HAS ENHANCED its transport management and logistics technology solution portfolio through a partnership with Riskpulse to offer real-time, predictive risk analytics capabilities. Transplace says the partnership will enable it to “further integrate machine learning and predictive analytics into its logistics management solutions in order to bring greater predictability and optimisation to the supply chain”.
Riskpulse has a suite of cloud-based software applications that help to quantify and standardise their clients’ understanding of risk across their transport networks and provide real-world, actionable recommendations on how to plan more effectively, days prior to tendering loads out to carriers. This helps shippers, carriers, distributors and receivers increase their on-time performance, reduce unnecessary freight spending and avoid waste caused by operational variability, as well as natural, social or infrastructure-driven disasters.
“Transplace continues to invest in analytics technology in order to achieve greater supply chain predictability and optimise operational planning and performance,” says Frank McGuigan, CEO of Transplace. “Partnering with Riskpulse allows us to further integrate shipment and lane-level risk monitoring and analytics into our logistics solutions. Increasing these
Transplace CTO Jim French says: “Today’s complex, dynamic supply chains require greater levels of visibility, predictability and control, and further integrating analytics and machine learning into Transplace’s Control Tower and managed services solutions enables us to deliver those things to our customers.
“Partnering with Riskpulse allows Transplace shippers to mitigate disruption by providing true visibility to those shipments most at risk of service delays and proactively making decisions to make adjustments to optimise shipping performance and reduce losses,” French adds.
Matthew Wensing, founder and chief strategist at Riskpulse, says “We are thrilled to partner with Transplace, a market leader whose operational decisions impact millions of shipments on a daily basis. Our combined
experience and data sets will demonstrate what is possible and raise the bar for the industry.”
Offering a complete suite of transport management, strategic capacity and crossborder and global trade services, Transplace’s customisable logistics solutions and best-inclass technology give organisations greater control of their transport operations, as well as enhanced visibility of shipments and overall supply chain performance.
As part of its proprietary Transportation Management System (TMS), the Transplace Control Tower provides shippers with a comprehensive, graphical view of all shipments, while integrating weather and traffic information – giving shippers a singular, all-encompassing, real-time view of their entire transportation network along with external factors that could impact it.
Riskpulse is a supply chain risk analytics company that helps its clients and their partners increase the predictability and stability of their financial and physical operations globally. At present, its main clients include major food companies, consumer packaged goods manufacturers, automakers, and retailers but the new partnership with Transplace should open it up to new markets. Transplace works in key verticals, including consumer packaged goods, manufacturing, retail and chemicals. HCB www.transplace.com www.riskpulse.com
HUPAC, THE SWITZERLAND-based intermodal network operator, is planning to automate its route planning and traffic management processes by using sensor data and analytics provided by its compatriot Nexiot.
Hupac is already using Nexiot’s selfsustaining sensors to provide real-time updates from wagons, which are fitted with the devices. These sensors send messages on information such as location, impact events, border crossings and mileage every five minutes. Hupac will now fully integrate Nexiot’s software solution into its in-house cargo management systems to predict delays, route out journeys and manage traffic.
“We began working with Nexiot two years ago when we applied the smart sensors to 1,000 of our intermodal wagons,” says Aldo Puglisi, responsible for digitalisation and business processes reengineering at Hupac
Intermodal. “When we began to analyse the data generated by the sensors in collaboration with Nexiot, we realised that it could be used to identify and predict weak spots in the supply chain, helping us make more informed planning decisions in an optimal way.”
Following a trial late last year, Puglisi says Hupac is now aiming for a complete integration with Nexiot’s digitisation solution, which would allow many of the planning processes to be automated, saving valuable time and money.
“This is exciting because fewer manual entries imply fewer errors and the information can also be shared with our partners to make the entire supply chain process more transparent and efficient,” says Puglisi.
Digitisation of wagon data is just one element of Hupac’s overall strategy, which
already includes a dedicated XML electronic data interchange facility, Ediges, and an internal capacity management system based on algorithms. It is also rolling out optical character recognition software at its terminals to support automation of the check-in/out processes, and an updated web-based platfor for customer bookings and cargo tracking.
“Nexiot is providing its customers with the highest level of transparency across the supply chain, which enables them to differentiate their offering, increase efficiencies and unlock additional revenue potential,” says Marcel Scheurer, COO at Nexiot. “Our distinctly collaborative integration approach and operational industry experience help our customers to extract the maximum value out of the technical solution.”
Nexiot was founded in 2015 as a spin-off company from ETH Zurich, one of the world’s most prestigious technical universities, and is built on more than ten years of research in complex systems, data analytics and ultra-low-power sensor technology. In March 2019, that work was recognised by Frost & Sullivan, which presented Nexiot with its Enabling Technology Leadership Award. Nexiot ranked highest in terms of both Technology Leverage and Customer Impact.
“To achieve technology leadership is never an easy task, but it is one made even more difficult considering today’s competitive intensity, customer volatility, and economic uncertainty, and we congratulate Nexiot on their achievements,” said David Frigstad, chairman of Frost & Sullivan, when presenting the award.
“The technology behind our self-powered sensors is only one part of our strength, but it is the data we collect and analyse that adds value to our customers’ business,” says Scheurer. “We collaborate with customers on collecting and analysing the data, helping them to gain new perspectives on their business and develop new service offerings that improve efficiencies and unlock additional revenue potential.” HCB www.nexiot.ch
DIGITISATION IN THE chemical supply chain is affecting all players in the logistics business, including chemical distributors.
It is no surprise then, that this year’s Annual Congress of the European Association of Chemical Distributors (Fecc), which will take place in Sitges, Spain from 12 to 14 June, will focus on Industry 4.0 and the demands that will place on attracting young talent to the business.
Under the theme ‘Voices of the Future’, the Fecc Congress will attract the best minds in the chemical distribution sector to the Hotel ME Terramar where they will
exchange information and experience, network with their peers and customers, and have the opportunity to enjoy Mediterranean sunshine and Spanish hospitality.
Dr Neville Prior, Fecc president and chairman of Cornelius, says: “The whole topic around digitisation is really important right now. I think it could be said that the distribution industry has had its head in the sand for a while. At Fecc, I feel [digitisation] is one of the things we should be utilising to bring best practice and ideas into the industry. It’s clear that technology is going to have an effect in the future, particularly if one considers future generations. The modes of communication are vastly different – it’s not even through email these days. Apps and that area of technology is going to make a big difference.
“Upstream, the big manufacturers are doing quite a lot in terms of digitisation,” Prior adds.
“Many of them have strategies, they’re coming up with platforms and other various things. I think our industry needs to look at these platforms, but it also needs to think about the benefits that can be brought about through artificial intelligence, blockchain and other new technologies.
“The bigger players are already taking actions around this, but it’s the small- to medium-sized companies – even those up to $5m turnover – that need to be prepared to embrace digitisation. They need to be putting more effort into this. I feel this will be a topic that will constantly be discussed at the Fecc Congress this year.”
Delivering effective digitisation strategies will bring a need for new skills, so encouraging new talent to join the industry is a topic that has been generating more momentum in recent years. Businesses are implementing new programmes to cater to the aspirations of the latest generation of workers as previous incentives no longer fit. Fecc is dedicating a whole discussion topic around how best to inspire the latest generation into becoming »
a part of the industry and – importantly –sticking with it.
“We need to have young talent coming in and I think that’s something that will be widely discussed as well. I believe it’s important how we bring young talent and diversification into the industry,” says Prior. “I think the chemical industry generally has a perception of being a ‘dirty, old’ industry and that it’s lots of men in grey suits. It’s a perception we need to try and change – certainly in terms of the ‘dirty, old’ industry, that has changed completely.”
Prior mentions how when he first started in the industry the main considerations for new employees tended to be two things: doing something they enjoyed and money. “Money is much less of a driver than it used to be for this new generation. But what drives them? I think a lot of younger workers want to be a part of something where they can make a difference. As a company, we believe that companies should be good corporate citizens of the world. To do this, they need to be giving back in some way. Social responsibility is taking a huge role and becoming a central part of business aims.”
As an example, Prior explains how his company supports a charity in Malawi that provides schooling for 600 children, a health centre and kitchens. The operations are manned by staff of the business to ensure a genuine connection. There are fundraising
events throughout the year highlighting fun and team sessions, particularly summer parties or sporting events. Staff have the opportunity to go out to Malawi on a paid sabbatical to be a part of something beneficial. “We have found that this charitable addition has also been successful in assisting the company to retain talent,” says Prior.
“Of course, businesses need to give fair wages, decent benefits, be a good employer, show progression in a career, train and mentor individuals and more,” continues Prior. “But, I think, if a company can be a little more unique in giving back to communities (locally and internationally), and involve staff, it can be quite powerful.”
When it comes to new regulations and updates, Prior explains that the industry as a whole is prepared as regulations and changes often come along together. However, there is concern surrounding the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation and Brexit.
“I think it’s concerning, not just for UK companies, but also those in the EU as they have the same issues when transferring goods,” says Prior. “Our view is that UK REACH is very unprepared. In its current form we don’t think it will work too well in terms of having to get information and testing data
into the system.” One concern is that the UK government appears to believe that because information has been input in Europe, the data will be available and exist for the UK. Data ownership means that it is not such a straightforward affair.
Preparing for Brexit either side of the Channel, Prior notes that stockpiling is the main solution. “One of the big issues will be surrounding supply chains and there are distributors that have been ordering emergency stock. We have put in quite a few million pounds worth of additional strategic stock into the UK to prepare.
“We have also been assisting customers to work out what levels of stock should be brought in and held. A lot of customers seem to have been complacent regarding Brexit; it is probably only in the past month or two that people have started truly thinking about it. The main thing in the short term is securing supply chains and stock, but after that the focus will shift to things like UK REACH, how to cope with VAT, what will tariffs look like, etc. There’s a lot of businesses still saying ‘oh, it won’t affect me’, while others are saying ‘I don’t know what to do to prepare’ – it’s difficult.”
An overlooked issue is that, despite the UK government hiring new customs and tax officials at HMRC, these new employees are often inexperienced, which will reduce their effectiveness and efficiency. The general industry consensus seems to be that there will be short-term disruptions, but whatever happens, a solution and a sense of normality will be sought as swiftly as possible.
Compared to the chemical industry itself, the distribution sector has experienced good growth recently. In terms of the market, Prior describes the 2018 period as “reasonable” but flat. However, certain areas have been showing specific growth. Cornelius has seen nearly 40 per cent growth in year-on-year comparisons from some interesting causes.
“We conducted research and found that stockpiling is making a difference, but only about 10 to 15 per cent of the 40 per cent difference. The remainder appears to be due to customers continuously developing and working on new products,” explains Prior. “It’s not that the markets have gone completely with Brexit, people are still doing things. I was quite encouraged with that observation.”
When thinking about the upcoming quarters and conversations that businesses associated with Fecc have been having, Prior says that the first quarter of 2019 was “actually quite buoyant for many”; the second quarter is emerging as a bit flatter, and the second half of the year depends a lot on what happens with Brexit. “Globally, I think we might start to see some improvements. The US probably won’t go into recession and I think world trade will start to improve.”
The US chemical industry is set to continue expanding. The Asian markets are also growing and, even though the Chinese market has not grown as fast as previously, it has done better than most thought it would. “These market growths are all positives, but what should be of particular note for the chemical industry is China,” says Prior. “China has growing emphasis on the environment and is very aware of the dangers of the industry, as seen with recent incidents. What we’re finding is that good Chinese manufacturers are investing heavily in environmental control and installing state-
of-the-art wastewater facilities, emissions scrubbing and more. Despite this, periods of heavy pollution in Chinese cities occur and, when they do, the Chinese government tells industry to shut down. This of course causes huge disruptions in manufacturing.”
Forecasting where business appears to be heading, “I still think the growth engine of the world is south-east Asia, particularly for speciality chemicals,” says Prior (above). Prior is also keen to point out that India is rapidly becoming a growth area with lots of recent investment in infrastructure and that this will be a topic of discussion for Fecc at this year’s Congress.
Fecc is eager to unveil a new format for the event. Previously a speaker would give a presentation then answer any questions the audience may have. This time, there are two panel sessions with an expert moderator from outside the industry –Katrina Sichel – to bring audiences and panels together. The scope of this year’s event is far more interactive and there is a drive for more participation from the audience. An official app (Fecc2019APP) will be used to allow audiences to get further involved with the discussions and question periods.
Two sessions will be held, one in the morning and the second in the afternoon, where four or five panellists, typically seniors in industry, will be questioned. The aim is to seek their expert views on questions such as retaining talent, digitisation and diversification, including a specific showcase on women in leadership.
There is also a plan for two younger members of the industry to join the panels, debating different points of views and encouraging new talent to consider the opportunities in the industry. For a full agenda and registration options, go to the dedicated event website, www.fecc-congress.com. HCB
taking measures to maintain supplies to the manufacturing and service companies relying on key chemical components for their products and processes.”
THE LATEST SUPPLY Chain Trends Survey from the Chemical Business Association (CBA) reveals continued evidence that there is stock building within the chemical supply chain in preparation for the UK’s departure from the EU. While a growth in stocks can deliver some gains for distributors, particularly in the short term, it is predicted
that it be followed by a period of negative sales growth in just a few months’ time. The Supply Chain Trends Survey asks CBA member companies to provide information on order books, sales, sales margins and employment on a ‘better–worse–same’ basis. The responses are then analysed, ignoring responses answering ‘same’ and focusing on the positive or negative balances provided by the differences between ‘better–worse’ responses. This particular Supply Chain Trends Survey was conducted over two weeks between 25 March and 5 April 2019 and was compiled from the responses of 50 companies.
Peter Newport, CBA’s chief executive, says: “These results confirm anecdotal evidence from member companies. Given the continued Brexit uncertainty and the lack of any real clarity concerning the final outcome of the process, the UK chemical supply chain is
Members were first asked if their order books were better, worse or the same as during the previous three months. The results show that there was a significant increase, from a positive balance of 14 per cent in November 2018 to 34 per cent in the March-April survey.
Members were then asked about their sales margins. Again, when asked if current sales margins were better, worse or the same than the previous months, respondents said that margins have recovered strongly, moving from a negative balance of 11 per cent in November 2018 to a positive 22 per cent in the latest survey.
In terms of sales volumes, more positive news emerged. In November 2018 respondents stated an increase of 7 per cent, which has now accelerated to a massive 44 per cent for the March-April 2019 survey.
There was a positive – albeit weaker –response when it came to employment and training. The overall trend shows that
businesses are still looking to employ and train staff, but they are remaining at historically low levels. The results for March-April 2019 show an 18 per cent positive balance,, a marginal change from the 16 per cent reported in November 2018. When looking at training by itself, the positive numbers continue over the coming months. Businesses are reporting an expected increase of 28 per cent for higher levels of current training and 38 per cent for increased training levels in the next quarter. The indication is that businesses are looking to adapt their employees to handle any changes that may come their way with Brexit.
Despite all the positive news with apparent increases across the board, the survey indicates this is likely to be a short-term effect. Those responding to the surveys
were also asked about their expectations for the upcoming three months, with very different results.
On the subject of sales volumes, the industry reported a drastic downturn on balances of 14 per cent over the next quarter. This is a sweeping change in fortune from the huge gains shown recently. Sales margins are also expected to return to negative, with a -12 per cent balance over the coming three months.
As with everything Brexit-related, speculation appears to be the rule. Anyone who still has the inner strength to keep track of the daily news cycle will know that the situation seems to change every few hours. To put it simply, no one knows with certainty what will happen, what the details will be or if it will actually happen. The world has already been subjected to delays in the Brexit
deadline, with even more extensions having been suggested. It could well be the case that, if Brexit is delayed again, the quarterly projections will also be pushed back, and businesses may continue stockpiling materials on the scale they have been.
The results of these surveys indicate that businesses are playing it safe and planning for disruption in the UK. Shortterm changes seem likely and businesses are stocking up to try and alleviate any difficulties in supply that might come their way. However, when it comes to the longterm ramifications, it is anyone’s guess.
In an ever-evolving scenario such as Brexit, the indication is that the most adaptable businesses will be the ones to flourish. Caution, planning and flexibility are the dominant strategies. HCB www.chemical.org.uk
THE CHEMICAL INDUSTRY in the Arabian Gulf must ensure its readiness to face the growing rate of supply chain digitisation that will lead to continuous disruptions and create new challenges and opportunities for regional producers to adapt to and respond to a new market reality.
That was the overriding message from speakers at the Gulf Petrochemicals and Chemicals Association’s (GPCA) 11th Supply Chain Conference, which took place from 15 to 17 April at the InterContinental Festival City Hotel in Dubai.
The chemical supply chain is transforming rapidly as global challenges add pressure on
chemical players to improve their efficiency and end-to-end supply chain. Against this backdrop, a new set of technological advancements, known as ‘Supply Chain 4.0’, is influencing how organisations oversee their logistics, procurement and value generation. The move towards greater digitisation is transforming chemical supply chains, creating new opportunities to make them more agile, resilient, faster and efficient.
In line with the event’s theme - ‘Getting Ready for the Future: Supply Chain 4.0’ - speakers discussed the key enablers for a successful
chemical supply chain transformation, ranging from collaboration, implementation of new technology, digital procurement, value-based sales and operations planning, to building local content and more.
The conference began with an opening address by Ahmed Al-Shamsi, senior vice-president, Regional MEAE at Borouge and chairman of the GPCA Supply Chain Committee, and continued with a keynote address by Fayez Al Malki (below), vicepresident of global supply chain for Sabic. Al Malki called on the chemical industry in the Arabian Gulf region and globally to respond to and address the new generation of disruptive technologies, such as Artificial Intelligence (AI), Advanced Analytics, Internet of Things (IoT), Robotics, Process Automation and the Digital Supply Chain Twins, which will continue to disrupt existing supply chain operating models now and into the future, he said.
In line with the regional aspirations to position the Gulf Cooperation Council (GCC) area among the top logistics hubs globally, future GCC government visions and long-term initiatives have been launched with the objective to transform the supply chain landscape in the GCC. In his keynote presentation on day two, Abdulaziz Mohammed Almohawes, Head, Authorized Economic Operator at Saudi Customs, highlighted the importance of the Saudi Authorized Economic Operator Programme, a new trade facilitation initiative offering faster and simpler import and export processing in the Kingdom.
For his part, Eng Ali A Al-Omeir, business development director at MODON, discussed the programmes and initiatives put in place by the Saudi Authority for Industrial Cities and Technology Zones to use smart technology and attract new investments in the country.
Speaking at the event, Dr Abdulwahab Al-Sadoun, GPCA’s secretary general, commented: “Supply Chain 4.0 is not a mere buzzword, it is a necessity and a reality that is right here, at our doorstep. No industry is better placed than the chemical industry in the Arabian Gulf to respond to the immense opportunity created by this rapidly evolving »
trend. To build more responsive and intelligent supply chains, the industry must leverage the latest technology innovations. It must embrace the new generation of digital procurement which supports better decisionmaking and improved performance.
“A concerted focus on end-to-end visibility will also be needed to manage product and data flows across global supply chains,” Dr Al-Sadoun continued. “The chemical industry must develop new service offerings to create greater value for its customers and source goods and services from within the region to boost local content and support the growth of SMEs. Ultimately, chemical players should enact a cultural shift from being efficiency-focused to becoming more value driven,” he concluded.
In line with its commitment to building local human capital in the Arabian Gulf region, on 15 April GPCA hosted the 11th edition of its Leaders of Tomorrow programme on the sidelines of the Supply Chain Conference. Students from universities across the GCC attended a special seminar comprised of expert presentations by senior industry leaders from City Cement Company, Borouge and Tasnee, as well as an interactive session designed to build real-life knowledge and experience for the young participants and their peers.
At a time when the chemical logistics sector around the world, and not just in the GCC states, is facing up to a more connected future, attracting the right talent will be crucial. GPCA is not alone in trying to help industry address the issue and it will be interesting to see how the initiative progresses.
Just before the Supply Chain Conference, the Oman Oil and Orpic Group hosted an important industry roundtable organised by GPCA in Muscat. The meeting was attended by more than 65 delegates from the GCC states, including senior government and
industry leaders. The roundtable included representatives from GPCA member companies, as well as environmental authorities, industrial bodies, fire departments, armed forces, customs and others.
The high-level meeting entitled ‘Harmonised Chemical Management in the GCC’ discussed the importance of collaboration between government and private organisations, and highlighted GPCA’s continuous efforts to provide a platform for cooperation and facilitate a meaningful dialogue among legislators, industry stakeholders and government officials to enact a step change in chemicals management regulations in line with global best practices.
Opening the event, Dr Hilal Abdullah Al Hinai, general manager of corporate support services at Oman Oil and Orpic Group, welcomed delegates by saying: “This meeting aims to create a platform for cooperation between regulators in the GCC and petrochemical industries to meet challenges and discover the opportunities in improving awareness and promoting dialogue among regulators on best practices available around the world. ”
The meeting further addressed the need to adopt regional initiatives on chemical classification, packaging and labelling in line with the Globally Harmonised System (GHS)
and the benefits of adopting ADR as a common solution for the Arabian Gulf region both from an industry and government perspective.
Finally, industry experts praised the outstanding role that Responsible Care®, the chemical industry’s commitment to continuous improvement in health, safety, security and environmental performance, has played over the last decade to raise the bar in the chemical industry’s EHS&S standards through the implementation and peer-to-peer review of voluntary health and safety initiatives.
Dr Al Sadoun commented: “We are pleased to have had such a positive outcome at this important government-industry roundtable, which gathered together senior government officials, industry leaders and legislators to discuss ways of collaboration between GCC governments and the chemical industry that effectively address chemical management risks and opportunities. By organising this meeting with the support of Oman Oil Company (OOC) and Orpic, we aim to improve the awareness and foster dialogue among regulators on best available practices across the globe, while increasing collaboration to facilitate the development of regulations related to GHS and the transport of dangerous goods by road by working in partnership with the relevant stakeholders.” HCB www.gpca.org.ae
Univar Solutions has completed the sale of the Nexeo Plastics division of Nexeo Solutions to an affiliate of One Rock Capital Partners for $640m. Net proceeds of some $615m will be used to pay down debt. “Completing the divestiture of Nexeo Plastics ahead of schedule is a major accomplishment for Univar Solutions, enabling us to focus fully on the core chemical distribution business and significant value creation opportunities of our newly combined company,” says president/CEO David Jukes.
Tony W Lee, managing partner at One Rock: “We see tremendous growth opportunity for Nexeo Plastics as a stand-alone plastics distribution business. Our team looks forward to working alongside management to deepen the company’s relationships with customers and supplier partners.”
“One Rock’s operational support and deep knowledge of the plastics and distribution
industries will enable us to further enhance Nexeo Plastics’ capabilities and unlock the company’s full potential,” adds One Rock managing partner R Scott Spielvogel.
In other news, Univar Solutions has adopted Dow’s ‘Advancing a Circular Economy’ goal as one of its sustainability ‘Goals to 2021’. The goal focuses on advancing a circular economy by redesigning, recycling, reusing and remanufacturing to keep materials at their highest value use for as long as possible.
“We’re pleased to take another step forward in our journey to a more sustainable future,” says Jukes (above, right). “’Advancing a Circular Economy’ is well aligned to our commitments with ensuring greater transparency, accountability, and measurability of our progress and aligns well to our 2021 commitments as well as our cultural values.”
www.univarsolutions.com www.onerockcapital.com
Germany-based Harke Group has acquired Chemlink Specialities and Addi-Tec from Chemlink Group, giving it a strong base in the UK and an opportunity to expand its portfolio of products. Chemlink Specialities is a distributor of specialty chemicals in the UK and Ireland with a focus on household and industrial products as well as pharmaceuticals. It has its own lab in Manchester, which Harke intends to expand. Addi-Tec caters primarily to the paints, coatings and plastics processing sectors.
Harke Group president Thorsten Harke says the move is “another important step in Harke’s strategy of offering customers and principals an excellent and innovative commercial, logistics and technical service throughout Europe, Russia and Turkey”. www.harke.com
The NRC Group has rebranded itself as Nordmann, seeing the move as a logical step after two years of international expansion. “Expanding our international presence and repositioning ourselves under the unified Nordmann brand were the next two logical steps in our development as an internationally successful group of companies,” explains Dr Gerd Bergmann, managing director of Nordmann, Rassmann GmbH. “This move makes sure we stay the internationally well-positioned, modern and recognisable distribution company that our suppliers and customers need – and it provides us with a solid foundation for a successful future.”
Following the change, Nordmann has a new look and a new website. www.nordmann.global
Safic-Alcan has acquired Langley-Smith & Company, a specialty chemicals distributor in the UK, Ireland and Europe with a focus on
adhesives, paint and coatings, polymer modification, road marking and rubber processing, inks and varnishes. Yann Lissillour, director of mergers and acquisitions at Safic-Alcan, says: “The acquisition of LangleySmith will cement our position as a leader in the specialty chemicals distribution in the UK and Ireland, as well as develop our capabilities in mainland Europe.”
David Crow, owner and managing director of Langley-Smith, adds: “Combining LangleySmith’s longstanding presence and expertise with Safic-Alcan’s excellent international network will open a new chapter for both companies’ industrial businesses.”
Philippe Combette, CEO at Safic-Alcan, concludes: “Langley-Smith is a family business that shares our values. They have decades of technical experience in-house from a variety of backgrounds, which enables them to provide ‘innovative solutions’. Trusted by customers and suppliers, we are grateful that the owners will ensure a smooth transition to preserve the unrivalled expertise.” www.safic-alcan.co.uk
IMCD has announced an expansion of the distribution partnership with DuPont Industrial Biosciences in Europe for biocides used in industrial preservation and homecare applications. IMCD and DuPont have complementary catalogues of services and products for consumers, now providing even greater coverage and a wider range of options. IMCD will distribute the biocides in Europe and South Africa across the coatings, construction, homecare and industrial and institutional cleaning markets.
“We are pleased to announce the extension of our global partnership with IMCD, which now includes the European biocides market,” says Jeroen Ingelbrecht, sales director EMEA at DuPont Industrial Biosciences. “IMCD’s experience and deep knowledge positions them well to provide personalised support to our customer on the ground. The fact that IMCD provides formulatory, regulatory and technical expertise sets them apart in the industry and makes IMCD our partner of choice.” www.imcdgroup.com
Aceto completed its ‘stalking horse’ agreement on the sale of Rising Pharmaceuticals on 22 April. Aceto received court approval to sell the assets and subsidiaries of Rising Pharmaceuticals to Shore Suven Pharma. The deal was for $15m, plus the assumption of operating liabilities and customer obligations, on a cash-free and debt-free basis.
Aceto subsequently sold its chemical business assets to New Mountain Capital, also at the end of a court-supervised sale process. “We look forward to working closely with management to help the company realise its full growth potential by scaling capabilities in key markets and investing in new organic and inorganic initiatives while maintaining the high level of quality and reliability which have always been the hallmarks of Aceto’s success,” says Andre Moura, managing director at New Mountain Capital.
William C Kennally III, Aceto’s CEO, says: “The transaction with New Mountain Capital provides the company’s chemical-related businesses with deep capital resources to invest in growth opportunities for the benefit of their customers and suppliers.”
Both transactions follow the filing by Aceto and its US subsidiaries of voluntary petitions under Chapter 11 of the US Bankruptcy Code in February this year. www.aceto.com
TER Chemicals has acquired distribution rights for Clariant’s Tonsil® bleaching earth across Germany, Switzerland, Scandinavia, the UK, Ireland, France and the Benelux nations. The long-standing partnership already covers a large portfolio of specialty chemicals and product solutions. The latest addition adsorbs fatty acids, dyestuffs, turbidities and heavy metals, while protecting valuable nutrients. Tonsil® bleaching earth is primarily used for filtering and purifying vegetable oils and liquids.
Harald Dettmers, head of business unit at TER Chemicals, says: “We are glad about the addition to our portfolio and Clariant’s confidence and trust in our long-standing partnership. Our customers value our large portfolio of specialty chemicals and product solutions from one source. With the addition of Tonsil we can also prove our high service quality and market understanding in the field of bleaching earths.” www.terchemicals.com
PO Box 347
Cloverdale, WA 6985, Australia
T (+61 8) 9277 6968
www.airsafe.com.au
Dangerous Goods by Air –
Acceptance
• June 10-12 – Perth
• June 19-21 – Brisbane
• June 26-28 – Adelaide
• July 3-5 – Darwin
• July 16-18 – Perth
• July 24-26 – Melbourne
Dangerous Goods by Air –Refresher
• June 5 – Perth
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• July 9 – Perth
• July 23 – Melbourne
AMSA Full Acceptance (IMDG)
• June 13-14 – Perth
• June 17 – Brisbane
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AMSA Full Acceptance –Refresher
• June 17 – Brisbane
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• July 22 – Melbourne
89 Devonshire Drive
Timberlea, Nova Scotia B3T 2J6, Canada
T (+1 902) 468 3371
www.atlascompliance.ca
Dangerous Goods by Air –
Initial
• June 26-28 – Halifax
Dangerous Goods by Air –Refresher
• June 7 – Halifax
Dangerous Goods by Road –Initial
• June 24-25 – Halifax
Dangerous Goods by Road –Refresher
• June 6 – Halifax
Westfield Office Tower, Suite 403, Level 3, 152 Bunnerong Road
Eastgardens, NSW 2036
Australia
T (+61 2) 9314 3055
www.afif.asn.au
Dangerous Goods Acceptance (Air)
• June 10-12 – Brisbane
• June 18-20 – Sydney
• June 25-27 – Melbourne
• July 2-4 – Sydney
• July 15-17 – Brisbane
• July 23-25 – Melbourne
Dangerous Goods Re-certification (Air)
• May 20 – Brisbane
• June 12 – Sydney
• June 17 – Brisbane
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• July 1 – Sydney
• July 22 – Brisbane
• July 22 – Melbourne
Dangerous Goods Awareness (Air)
• May 28 – Sydney
• July 11 – Sydney
• July 18 – Melbourne
Dangerous Goods by Sea –Full Acceptance
• May 20-21 – Sydney
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• July 10-11 – Brisbane
• July 15-16 – Melbourne
Dangerous Goods by Sea –Recertification
• May 21 – Brisbane
• May 22 – Sydney
• June 13 – Sydney
• June 18 – Brisbane
• July 17 – Melbourne
• July 23 – Brisbane
Shipping Lithium Batteries by Air
• May 27 – Sydney
• July 19 – Melbourne
CAMEON
PO Box 17345
Edinburgh EH12 1DJ, UK T (+44 131) 334 1929 www.cameon.com
Dangerous Goods by Air
• July 1-3 – Manchester
Dangerous Goods by Road –Upgrade
• July 4 – Manchester Dangerous Goods by Sea – Upgrade
• July 5 – Manchester Dangerous Goods Safety Adviser
• June 3-7 – Manchester
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 3-5 – Doral
• July 8-10 – Doral Recurrent IATA & HMR
• June 11 – Doral
• July 16 – Doral
IMDG Code & HMR Ocean
• May 13 – Doral
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DANGO TRAINING SERVICES
169 Affric Road Glenrothes KY7 6XA, UK T (+44 1592) 748234 www.dangerousgoodstrainingdts. co.uk
Dangerous Goods by Air
• May 20-22 – Aberdeen
• June 3-5 – Aberdeen
• June 17-19 – Aberdeen
• June 24-26 – Aberdeen Dangerous Goods by Sea
• May 23-24 – Aberdeen
• June 6-7 – Aberdeen
• June 20-21 – Aberdeen
• June 27-28 – Aberdeen
DGI TRAINING CENTER
1060 El Camino Real, Suite B Redwood City, CA 94063-1645, USA T (+1 650) 306 8450 www.dgitraining.com IATA Initial
• May 22-23 – Los Angeles
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IATA Recurrent
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IMDG Initial
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June 10-11 – San Francisco
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July 15-16 – Atlanta
• July 22-23 – Anaheim
Air/Ocean Shipping – Recurrent (IATA/IMDG)
• May 23-24 – Los Angeles
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• July 11-12 – Chicago Radioactive Materials (Multimodal)
• July 18-19 – Las Vegas
Rathmore Lodge
Rathmore Road
Torquay, Devon TQ2 6NY, UK
T (+44 1803) 293344
www.fremantletraining.co.uk
ADR Driver Training
• May 13-17 – Bristol
• June 3-7 – Plymouth
• July 1-5 – Bristol
ADR Driver Training –
Tanks & Class 3 Refresher
• June 24-25 – Bristol
• June 26-27 – Plymouth
570 Lafayette Road
Sparta, NJ 07871-3447, USA
T (+1 888) 546 6511
www.lion.com
Multimodal Hazmat Shipper Certification (49 CFR/IATA/IMDG)
• June 4-7 – Cleveland
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Hazmat Ground Shipper Certification (49 CFR)
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Hazmat Air Shipper Certification (IATA)
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June 7 – Cleveland
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New York Hazardous Waste Management
June 3 – Buffalo
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• June 14 – Long Island
Complete Environmental Regulations
• July 10-11 – Anaheim
RCRA Hazardous Waste Management
• June 3-4 – Portsmouth, NH
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• June 10-11 – Baltimore
• June 10-11 – Boston
• June 13-14 – Philadelphia
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Sigma House, A13 Eastbound
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ADR Initial (Core, Tanks, Packages & 7 Classes)
• June 3-7 – Grays
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• June 10-12 – Grays
ADR Refresher (Core, Tanks, Packagaes & 7 Classes)
• June 17-19 – Grays
12 Gleneagles Court, Brighton Road
Crawley, West Sussex RH10 6AD, UK
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Dangerous Goods by Air (Initial)
• May 20-22 – Gatwick
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• June 3-5 – East Midlands
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• June 17-19 – Gatwick
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Dangerous Goods by Air
Revalidation
• May 21-22 – Gatwick
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• June 11-12 – Heathrow
• June 12-13 – Leeds
• June 17-18 – Manchester
• June 18-19 – Gatwick
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Radioactive Materials by Air
• May 23-24 – Gatwick
• June 13-14 – Heathrow
Carriage of Lithium Batteries by Air
• May 30-31 – Manchester
Dangerous Goods by Road
• June 26-27 – East Midlands
• June 26-27 – Gatwick
Dangerous Goods by Road – ‘Top-Up’
• May 24 – Gatwick
• May 24 – Leeds
• May 24 – Manchester
• June 7 – East Midlands
• June 14 – Heathrow
• June 14 – Manchester
• June 21 – Leamington Spa
Dangerous Goods by Sea
• June 24-25 – East Midlands
• June 24-25 – Gatwick
Dangerous Goods by Sea – ‘Top-Up’
• May 23 – Gatwick
• May 23 – Leeds
• May 23 – Manchester
• June 6 – East Midlands
• June 13 – Heathrow
• June 13 – Manchester
• June 20 – Leamington Spa
Dangerous Goods Safety Adviser
• May 20-24 – Gatwick
• June 3-7 – Heathrow
• June 3-7 – Manchester
TECHNOLOGY CENTER
Security and Emergency Response Training Center
PO Box 11130
Pueblo, CO 81001, USA
T (+1 719) 584 0584
sertc.org
HazMat/WMD Technician for Surface Transportation
• June 17-28 – Pueblo
• July 22-August 2 – Pueblo
Tank Car Specialist
• May 20-24 – Pueblo
• June 17-21 – Pueblo
• July 15-19 – Pueblo
Intermodal Specialist
• May 20-22 – Pueblo
Leadership & Management of Surface Transportation Incidents
• June 24-28 – Pueblo
Highway Emergency Response Specialist
• June 10-14 – Pueblo
• July 22-26 – Pueblo
Highway Emergency Response Specialist – Advanced
• May 20-24 – Pueblo
Tactical Hazardous Materials Operations for Surface Transportation
• June 24-28 – Pueblo
• July 15-19 – Pueblo
Flammable Liquid Emergencies in Rail Transport
• May 21-23 – Pueblo
• June 3-5 – Pueblo
• July 9-11 – Pueblo
• July 23-25 – Pueblo
Lancaster Environment Centre, Lancaster University Lancaster, Lancs LA1 4YQ, UK.
T (+44 1524) 510278
www.thereachcentre.com CLP Workshop
• May 21 – Lancaster
Hazard Communication –
Workshop
May 22 – Lancaster
Scenarios
May 23 – Lancaster
June 4
June
MAY 14-15, DRESDEN
Forum on best practice in chemical logistics and supply chain management www.bvl.de/en/fcl
LNG Fuels Summit
MAY 14-16, AMSTERDAM
Fifth conference on small-scale LNG applications www.lngfuelssummit.com
MAY 15-16, LIVERPOOL
Annual exhibition for the fuel distribution sector in the UK and Ireland www.fpsshow.co.uk
MAY 15-16, STRATFORD-UPON-AVON
12th annual conference for hazmat specialists https://the-ncec.com/en/emergency-response/ hazmat-event
Intertanko Annual Tanker Event
MAY 20-24, SINGAPORE
Annual congress of the International Association of Independent Tanker Operators www.intertanko.com/events-panels/annualtanker-event
Spillcon
MAY 20-24, PERTH
Triennial Asia-Pacific oil spill prevention and preparedness conference www.spillcon.com/2019/index.html
World LNG Series: Americas Summit
MAY 21-23, RIO DE JANEIRO
17th annual convention for LNG buyers and sellers http://lngamericas.cwclng.com
AFPM Reliability & Maintenance Conference
MAY 21-24, GRAPEVINE, TX
Annual conference on improving reliability in the petrochemical and refining industry www.afpm.org/conferences/
MAY 22-24, SHANGHAI
Sixth annual exhibition for the Asian intermodal sector www.intermodal-asia.com
MAY 22-24, BIRMINGHAM
Conference and exhibition on best practice in chemical and process safety www.icheme.org/events/conferences/ hazards-29
CRAC 2019
MAY 30-31, ARLINGTON, VA
Eleventh Chemical Regulatory Annual Conference https://chemlinked.com/events/reach24h-chemicalregulatory-annual-conference-us-seminar
ILTA
JUNE 3-5, HOUSTON
39th annual operating conference and trade show of the International Liquid Terminals Association www.ilta.org
VCA Dangerous Goods Seminar
JUNE 4-5, DAVENTRY
34th annual regulatory update conference www.dft.gov.uk/vca/dangerousgoods/dangerousgoods-seminar.asp
JUNE 4-7, OSLO Biennial exhibition for the global maritime industry http://nor-shipping.com/
Transport Logistic
JUNE 4-7, MUNICH Biennial exhibition for logistics, IT and supply chain management www.transportlogistic.de/index-2.html
Pumps & Valves Asia
JUNE 5-8, BANGKOK Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com
Argus Mediterranean Storage & Logistics
JUNE 6-7, VALETTA
Conference on regional oil trades and logistics www.argusmedia.com/en/conferences-eventslisting/mediterranean-storage-and-logistics
Petrochemical Supply Chain and Logistics
JUNE 11-12, HOUSTON
Conference on optimising polymer and liquid petrochemical supply chains www.petchem-update.com/petrochemicalsupplychain/
FETSA Conference
JUNE 12, TARRAGONA
Annual event of the Federation of European Tank Storage Associations, prior to AGM www.fetsa.eu
FECC Congress
JUNE 12-14, BARCELONA
Annual meeting of the European Association of Chemical Distributors www.fecc-congress.com
IAFC Hazmat Conference
JUNE 13-16, BALTIMORE
Annual international event for response teams www.iafc.org/events/hazmat-conf
ChemCon Asia 2019
JUNE 17-19, SEOUL
Conference on global chemical regulation chemcon.net/upcoming.shtml
PGLC 2019
JUNE 20-21, MARSEILLE
Inaugural Petrochemical Global Logistics Convention www.pglc.biz
AUGUST 13-16, LOUISVILLE Conference for the North American chemical distribution sector https://www.nacd.com/meetings/ce/2019chemedge/
PPC Fall Meeting
AUGUST 25-27, SALT LAKE CITY Semi-annual meeting of the Petroleum Packaging Council http://www.ppcouncil.org/ upcoming-meetings.php
AHMP National Conference
AUGUST 25-28, ATLANTA
Annual conference of the Alliance of Hazardous Materials Professionals https://www.ahmpnet.org/page/ National_Conference
3/2/19 Oregon, rail tank car toluene
Rail tank car with toluene exploded at Toledo Refining plant, causing fire at facility, nearby evacuations and Toledo Ohio, US road closures; no injuries reported; company claimed fire was indoors Blade
5/2/19 Leggett, road tanker gasoline
Gasoline tanker overturned on Highway 1010, spilling some 2,000 gal (7.5 m³) fuel to road; remaining Ft Bragg California, US 9,000 gal gasoline transferred by responders; cleanup to take weeks, but no waterway impact reported Advocate
6/2/19 Lurestan, road tanker fuel Stray bullet fired during shootout between gunmen and police struck road tanker at nearby filling station, AP Iran causing explosion that damaged nearby buildings
6/2/19 San Jose, road tanker gasoline Flat tyre on second trailer of double tank truck led to fire that spread to 8,000-gal (30 m³) cargo tank; CBS SF California, US all lanes of I-280 closed; fire crews responded quickly, killing blaze before it could spread to first tank
7/2/19 Bensalem, road tanker gasoline Tank truck with 3,000 gal gasoline overturned, exploded on I-95; river of burning gasoline flowed along CBS Pennsylvania, US road; two people in cab escaped but were badly burned Philly
9/2/19 Seremban, trailer nitric acid Trailer being pulled by tow truck overturned when tow rope snapped; 35 tanks (drums?) with nitric acid fell Bernama NS, Malaysia onto road; two cracked on impact, spilling acid; no casualties reported
9/2/19 Awka, road tanker gasoline Road tanker skidded off road, overturned and exploded; fire spread to other vehicles, nearby properties; Channels Anambra, Nigeria at least ten people killed, scores injured TV
10/2/19 Siliguri, road tanker gas
Fire broke out in road tanker with unspecified “chemical gas” on NH-31; photos showed overturned tanker Times of W Bengal, India on fire; no casualties reported; police investigating incident India
11/2/19 Nnewi, road tanker gasoline Fire broke out on road tanker while discharging gasoline at filling station; fire brigade prevented incident Guardian Anambra, Nigeria from escalating, though filling station, vehicles were damaged; workers and customers fled; no injuries (Abuja)
12/2/19 Tombstone, road tanker diesel Road tanker rolled off Dempster Highway near Tombstone Territorial Park, struck rock that ruptured tank; Yukon Yukon, Canada 13,000 litres diesel spilled, up to 1,000 m³ soil contaminated; locals unaware of incident for two weeks News
14/2/19 Kumasi, road tanker LPG Road tanker ran off road and into ditch in front of houses; residents evacuated, fearing explosion; Modern Ashanti, Ghana driver thought to have fallen asleep; power cut off; tanker was left for several days before it was recovered Ghana
14/2/19 Manglia, road tanker gasoline Road tanker overturned after accident with car, burst into flames; driver said he was trying to avoid a cow in Times of MP, India the road; four cattle were killed in blaze; one house damaged but no serious injuries India
15/2/19 Campbell county, road tanker fuel Tank truck was involved in collision with two passenger vehicles on I-75, resulting in spill of some 8,500 gal Knoxville Tennessee, US (32 m³) unspecified fuel; no injuries reported, no evacuations necessary News S’l
16/2/19 nr St Lazare, freight train crude oil 37 tank cars with crude oil derailed in remote area of western Manitoba; nearby villages reported smell after CBC Manitoba, Canada some tanks leaked; TSB said all cars were of the improved 117R design; TSB, CN Rail investigating
17/2/19 Miri, road tanker gasoline Road tanker with gasoline rolled over, caught fire on Miri-Bintulu Coastal Highway, cause unknown; The Star Sarawak, Malaysia no word on condition of driver or whether road closures or evacuations were needed (KL)
18/2/19 nr Bathurst, road tanker gasoline, Fire broke out in cab of double-tanker on Mitchell Highway; initial reports of explosions appeared to be tyres Central NSW, Australia diesel bursting but one tank with diesel was consumed in fire; highway closed in both directions Western
20/2/19 nr Fungurume, road tanker sulphuric Road tanker with acid for Mutanda mine collided with stationary bus; tanker ruptured, spraying acid onto IOL Katanga, DR Congo acid passengers; at least 18 were killed, 12 injured; acid continued to spill, flowing as far as next village
22/2/19 Marlboro, road tankers diesel, Two tank trucks collided on Route 9, causing both to leak; some 3,500 gal diesel, 2,500 gal gasoline spilled; Asbury New Jersey, US gasoline highway closed, nearby businesses evacuated; one driver injured; not clear what caused the collision Pk Press
23/2/19 Nandigam, road tanker LPG Gas tanker overturned on Mumbai-Ahmedabad highway, caught fire; gas began leaking from top of tank, Times of Gujarat, India caught fire; fire crews, fearing BLEVE, played water on tanker for two hours till fire was under control India
23/2/19 Slim River, road tanker oil Road tanker ran into rear of parked trailer on North-South Expressway; collision caused tanker to catch fire; Bernama Perak, Malaysia tanker driver killed in blaze, other driver unhurt; police checking road cameras for information
25/2/19 Moers, freight train gas
Three tank cars, reportedly with LNG, derailed on bridge over A40 highway; train driver injured in accident; CC NRW, Germany A40 closed as police were unable to verify if tanks were leaking Discovery
25/2/19 Jos South, road tanker gasoline Road tanker exploded at filling station; workers had spotted fire and ran to get extinguishers but could then Naija Plateau, Nigeria not control it; no injuries reported; initial panic as further explosions were feared News
28/2/19 Park City, truck calcium Truck carrying 20,000 lb (9 tonnes) quicklime was damaged by running over boulder; driver failed to notice, KUTV Utah, US oxide causing spill of substance for miles through residential neighbourhoods; entire road closed for cleanup
Date Location Vessel Substance Details
14/2/19 off Hong Kong ER Kobe charcoal
18/2/19 Tuamoto archipelago, Nukuhai butane
Source
Fire broke out in boxes aboard containership en route Haiphong for Shanghai; fire was put out but broke out SCMP again while ship was at anchor off Hong Kong; two boxes with charcoal erupted in flames during discharge
Freighter from Tahiti for Atall Anaa was unable to approach due to high winds, rough seas; while sheltering FleetMon French Polynesia from storm, 11 gas cylinders washed overboard; warning issued to other ships in the area
3/3/19 Port aux Basques, North Atlantic fuel oil
Leak of fuel oil cargo from bunker tanker (3,570 dwt, 2008) docked at port in Cabot Strait; booms deployed FleetMon Nfld, Canada Kairos around vessel, leak; quantity of spill and its cause not known
4/3/19 Pflugerville, wastewater Pumps failure at wastewater treatment plant led to 3.4m gal (12,900 m³) chlorinated wastewater to spill to Community Texas, US Gilleland Creek; significant fish kill; locals warned against using water; state agencies neutralised spill Impact
7/3/19 Sungai Kim Kim, chemical
Around 3,000 people were sickened by toxic gas given off by chemical waste dumped in river in Pasir Gudang; Straits Malaysia waste more than 100 schools were closed; army, specialist teams brought in to help with cleanup Times
Date Location Plant type
Details Source
4/2/19 Otumba, pipeline gasoline Oil spill, caused by thieves who apparently abandoned illegal tap on Pemex line, prompted some 400 people El México, Mexico in two villages to flee the area; police arrived, cordoned off area; no reports of injuries Financiero
4/2/19 Granite City, recycling waste oil
Some 200,000 gal (750 m³) used oil believed to have spilled from storage tanks at Future Environmental oil RSOE Illinois, US facility collection facility; spill was only picked up by wastewater treatment plant; rupture in line blames
5/2/19 Rong’an county, shop fireworks
Five people killed by explosion in unlicensed fireworks shop at start of Lunar New Year celebrations; blast AP Guangxi, China blamed on shopkeeper who was letting off fireworks outside the shop at 02.00
6/2/19 nr St Louis, pipeline crude oil
Some 43 bbl crude oil leaked in St Charles county; both Keystone and Enbridge’s Platte lines were closed KTIV Missouri, US while investigators determined which was leaking; oil contained and did not reach nearby waterways
7/2/19 nr Marmarth, pipeline produced
Some 75 bbl source water spilled from line near shale oil well, some reaching nearby Kid Creek; freezing Bismarck N Dakota, US water conditions made it hard to determine where spill had gone Tribune
11/2/19 Semenyih, factory ethylene Fire crews called to unnamed factory in Kampung Sungai Lalang found ten of 50 tanks at rear of building The Sun Selangor, Malaysia chloride were leaking ethylene chloride; no reports of casualties; cleanup work underway (KL)
14/2/19 Waldhof, ammunition shells
Two people killed, two badly hurt by explosion during handling of shells in hangar at Luxembourg army l’essential Luxembourg depot facility; similar incident at the site in 2012; magistrate inquiry opened into latest incident
14/2/19 Daejon, chemical chemicals
Three workers were killed, another injured by explosion at Hanwha factory; plant damaged by ensuing fire; Korea South Korea plant similar incident in May 2018, when two were killed; fire brigade investigating Times
18/2/19 Ma’an, chemical chemicals Fire broke out in warehouse of chemical plant in Ma’an Development Zone; fire crews managed to prevent Al Rai Jordan plant blaze spreading to neighbouring factories; no indication as to cause of fire or nature of chemicals involved
20/2/19 Dhaka, warehouses chemicals
More than 70 people died as fire raged through several buildings in old part of Dhaka; many of the buildings PTI Bangladesh housed chemicals and plastics warehouses, one of which was seat of the fire; investigation opened
22/2/19 Tirunelveli, firecracker fireworks
Five people killed, others injured by explosion at firecracker factory in Sankaran Kovil area; fire crews RSOE Tamil Nadu, India factory unable to fight blaze effectively due to strength of fire, fed by stocks of firecrackers
23/2/19 Bintulu, LNG plant
Massive fire broke out in Petronas-owned LNG plant, reportedly in seawater cooling unit; fire crews The Star Sarwak, Malaysia managed to put fire out before it reached gas processing units (KL)
1/3/19 Nembe, pipeline crude oil Explosion, fire on feeder line to Bonny oil export terminal, along with large oil spill – not clear if leak was Sputnik Bayelsa, Nigeria cause of blast; at least 50 people listed as missing after explosion
1/3/19 Minneapolis, chemical nitric acid Some 2,100 gal (7,950 litres) nitric acid spilled at Hawkins facility, a third of which reached storm drains; KSTP Minnesota, US distributor appears a valve on a storage tank was knocked off; building initially evacuated but spill was quickly contained
3/3/19 Audrain county, pipeline natural gas Rupture on Panhandle Eastern line caused massive fireball; nearby Highway 15 closed; PHMSA investigators KMIZ Missouri, US took section of line away for analysis; no injuries but some property damage
5/3/19 Fairmont, oilwell crude oil One contract worker killed, another injured by explosion at well site; the two men said to have been carrying KOKH Oklahoma, US out hot work on a tank at the time of the blast; sheriff’s office investigating
6/3/19 Bolton, tyre factory hydrofluoric Fire crews called to tyre factory in Daubhill found internal wooden shed on fire; shed contained stocks of Bolton Gtr Manchester, UK acid hydrofluoric acid; fire was contained without injury; electrical fault suspected News
6/3/19 El Dorado, oil refinery petroleum HollyFrontier refinery suffered fire in pipe rack; locals reported at least two explosions, black smoke from KAKE Kansas, US refinery; site’s emergency response team dealt with fire; no injuries reported
days, is keen to highlight these problems with its recently launched ‘Cargo Integrity’ campaign (HCB April 2019, page 54). All types of cargo can be mishandled or wrongly classified, packed or simply inaccurately identified dangerous goods commodities bring the greatest potential risk of disaster. These perilous incidents not only frequently cost lives and millions of dollars in cargo losses and ship damage, but also significant delays in cargo supply chains amounting to major disruption across numerous industries.
IN APRIL LAST year, Exis Technologies became the software division of the National Cargo Bureau (NCB), a New York-based not-for-profit organisation entrusted with ensuring safety of life and cargo at sea. Exis Technologies and NCB have since been working on several new initiatives to help improve safety in the supply chain.
ICHCA International, the cargo handling operative’s association, has calculated that of the 60 million packed containers moved each year, 10 per cent are declared as dangerous goods with some ships carrying more than 1,000 containers with dangerous goods on any given voyage. Shipping lines are therefore keen to ensure that dangerous goods are properly classified, packaged, packed and declared throughout the supply chain. Most of the significant ship fires are attributed to incorrectly declared dangerous goods, often exacerbated by criminal non-declaration or fraud.
Complex critical checks must be carried out for all dangerous goods consignments:
• Most lines restrict or prohibit certain classes of dangerous goods (particularly explosives, radioactive materials and some organic peroxides in reefer containers), so
the booking line needs to know if a partner line will accept them.
• Detailed stowage requirements (such as on-deck only, away from accommodation, or away from sources of heat) imply limited suitable space.
• Many ports and individual container terminals have strict rules on the classes of dangerous goods that can be loaded, unloaded or transhipped, or even present on board while the ship is in port. The ‘wrong’ dangerous goods aboard a ship can cause disruption. Of course, these checks rely on the shipper properly declaring the cargo as dangerous goods in the first place. However, mistakes can be made due to lack of competence or, unfortunately in some cases, by deliberately incorrectly declaring cargo to save cost or time. In other cases, the cargo may have been properly declared, but mistakes are made with packing and stowing the cargo in the container.
TT Club, which estimates that a container ship fire at sea occurs on average every 60
Unless the container is physically opened and inspected, there is no way of knowing for sure whether the cargo is safe for transport. The diagram above shows the current landscape regarding the shipment of dangerous goods by sea. After shipment, tools like the CINSnet database can record incidents taking place on vessels and in ports, including mis-declaration of shipments and leakages, which cause the majority of incidents, and create statistics for CINS members.
If the cargo is properly declared as dangerous goods, shipping lines can use tools such as Exis Technologies’ Hazcheck (www. hazcheck.com) to verify that the declared cargo complies with the International Maritime Dangerous Goods (IMDG) Code and other local rules and restrictions. More than 400,000 validations are made with Hazcheck per month for the top 10 lines, representing 70 per cent of the world’s dangerous goods container traffic. Around 4,000 rejections are picked up each month with the software.
Exis Technologies launched the Hazcheck Restrictions Portal (https://hazcheck.existec. com/hazcheck-systems/hazcheck-restrictions. aspx) to reduce incidents at sea, primarily by ironing out confusion in the complex »
operational processes involved in navigating today’s supply chains with dangerous goods (see below). Each carrier has been collating its own record of restrictions in relation to house policies, shipowner policies, ship constraints (for instance, the number of available reefer points), and restrictions applied at the applicable ports or terminals of loading, transit, transhipment and discharge.
Exis Technologies is cooperating with two of the leading industry insurance organisations, TT Club and the UK P&I Club, and has been working with container operators, ports and terminals to build a shared database of local and operator restrictions. Until now there has been no single source of data. Ports and terminals are being encouraged to upload their data free of charge over the next two years so it can be accessed by all parties, including shippers and forwarders.
TT Club’s records indicate that, across the intermodal spectrum as a whole, 66 per cent of incidents related to cargo damage can be attributed to poor practice in the overall packing process; that is not just in securing but also in cargo identification, declaration, documentation and effective data transfer.
Therefore, a final option is to physically inspect selected bookings and containers
before they are After shipment, tools like the CINSnet database can record incidents taking place on vessels and in ports, including mis-declaration of shipments and leakages, which cause the majority of incidents, and create statistics for CINS members. verify that cargo is declared, packed and stowed correctly.
Over the last 10 years, fewer than 80,000 containers have been inspected by the reporting competent authorities each year, with deficiencies found in about 10 per cent of cases on average, according to TT Club. NCB, for example, recorded a 9 per cent failure rate out of around 31,000 inspections in the last reported 12 months. Most of these inspections are of declared dangerous goods. The most frequent reasons for rejection are placarding/marking, followed by packing and stowage issues, leaks, documentation and improper segregation.
Exis Technologies has been working with NCB to develop a new container cargo inspection system in line with customer requirements. Earlier this year Exis announced the launch of Hazcheck Inspections, a web-based database and access portal where inspection companies can plan and enter details of cargo inspections completed on behalf of container
or vessel operators (https://hazcheck. existec.com/hazcheck-systems/hazcheckinspections.aspx)
The solution allows the container or vessel operator to log in with secure access and view or download inspection results and/or analytics. Consistent data is recorded and reported regardless of where and who records the inspection result. Non-confidential analytics data can be shared with partners and third parties to help influence policy concerning shipment of dangerous goods by sea.
Operators can send cargo details to the inspection company and pre-entered planned data can be re-used when the inspections details are recorded. The benefits include a common database, consistent reporting and data analysis. Operators have the option to share nonconfidential data with partners and third parties, such as the Cargo Incident Notification System (CINS).
In August last year, NCB began inspecting containers carrying imports to the US for CINS members to determine the extent of improperly declared or stowed cargo; 500 containers will be inspected in total and the findings will help identify trends. “The goal is to look at containers originating from countries where there are not a lot of container inspections,” says NCB president Ian Lennard. “It’s a way for the industry to figure out what we don’t know and hopefully it will lead to some knowledge and better ways of doing things.”
Port Supervisor also provided important input on pre-planning inspections before loading cargo. About 4,000 outbound containers (about 15 per cent of them with hazardous materials) were inspected last year, of which some 10 per cent were improperly placarded or labelled. Around 23 per cent were rejected because of problems with lashing or securing cargo.
With two major companies on board, the database has had a kickstart, but the next challenge is to encourage other companies to help build up a database of activity and dangerous goods declaration issues on a global scale. HCB www.existec.com
The first part of this two-part report on the meeting (HCB April 2019, page 60) covered discussions on the transport of explosives; listing, classification and packaging; electric storage systems; and the transport of gases. This second part of the report covers the remaining discussions, which ranged far and wide.
THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 54th session – the fourth and final session of the 2017/18 biennium – this past 26 November to 4 December in Geneva. It was chaired by Duane Pfund (US) with Claude Pfauvadel (France) as vice-chair.
The meeting was attended by experts from 18 countries, observers from Ireland, Slovakia and Turkey, and representatives of the
EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the UN Food and Agriculture Organisation (FAO), the International Atomic Energy Agency (IAEA), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the World Health Organisation (WHO) and 32 non-governmental organisations.
The main task of the Sub-committee was to agree the final list of amendments that will appear in the 21st revised edition of the UN Recommendations on the Transport of Dangerous Goods – the ‘Model Regulations’ or ‘Orange Book’ – for formal adoption at the session of the UN Committee of Experts on
A number of documents pertaining to fibrereinforced plastics (FRP) tanks were remitted to an informal working group, chaired by Steven Webb (US). The group acknowledged the view of the Working Group on Explosives that FRP tanks could be used for the transport of materials of Class 1, although there were some concerns; similarly, while it was acknowledged that FRP tanks would be able to carry dangerous goods of Class 2, it was decided to prioritise work on tanks designed to carry other goods first.
The group discussed provisions for general design and construction requirements, with a lengthy debate about quality assurance and quality management systems. The current design is based on a three-layer system in which each layer meets the three main functionalities – chemical resistance, strength and protection. However, some were of the opinion that an individual element may meet only two of these functions. France volunteered to draft language using this functionality approach for further consideration by the working group. This functionality-based approach, if acceptable, could potentially facilitate new technologies and manufacturing techniques.
The group also discussed specific design criteria requirements, focusing on the various ways to calculate maximum allowed stress and appropriate safety factors. There was discussion of the various ways to measure and calculate stress and strains based on the composite versus an individual test sample. Further discussion is expected through correspondence.
The Sub-committee agreed that the informal working group should continue with its deliberations and noted that it had already arranged to meet between 1 and 3 July 2019 in parallel with the 55th session of the Sub-committee.
The European Industrial Gases Association (EIGA) provided support for its earlier proposal to introduce into the Model Regulations a special provision to mirror SP 653 in ADR. This provides an exception from the full provisions of ADR for certain cylinders used for the transport of UN 1013 carbon dioxide, UN 1046 helium, compressed and UN 1066 nitrogen, compressed. EIGA pointed out that SP 653 has been in ADR since 2007 and is based in part on an opinion provided by Germany’s Bundesanstalt für Materialforschung und Prüfung (BAM).
It had been clear in earlier discussions that the air mode did not like the idea of such cylinders being exempted from the full weight of the regulations and now some experts felt that this was justification enough for not allowing the special provision in the
Model Regulations; others felt that, while it is not appropriate for air transport, the fact that such cylinders are (or may be) transported in multimodal transport means that it is appropriate to do so. There were also technical queries about the proposal so, in view of the comments made, EIGA withdrew the proposal and said it would come back with a revised version to address those concerns.
IAEA returned with a proposal that would, it anticipated, overcome objections raised by the International Air Transport Association (IATA) at the previous session to new wording of paragraph 1.5.2.5 relating to planning and preparing for response to incidents involving the transport of radioactive material. IATA reiterated its concerns, considering that the new text could be seen as imposing an additional obligation on carriers and consignors; some experts shared this view.
After discussion and further changes, new text was adopted. The final version of 1.5.2.5 will read:
In the event of a nuclear or radiological emergency during the transport of radioactive material provisions as established by relevant national and/or international organizations, shall be observed to protect people, property and
the environment. This includes arrangements for preparedness and response established in accordance with the national and/or international requirements and in a consistent and coordinated manner with the national and/ or international emergency arrangements. The new text in 1.5.2.6 provides guidance on the specific documents that contain the emergency arrangements.
At its previous session, the Sub-committee had adopted new text on the multiple marking of packagings to indicate conformity with more than one design type. Germany felt that this should be backed up with a requirement to indicate the design type on the transport document and offered a revision to 5.4.1.5.1 to implement the requirement. The proposal divided opinion in the Sub-committee and, in light of comments made, it was withdrawn.
One paper from the Netherlands and two from Switzerland all addressed the provisions for data loggers and other equipment used during transport that contain electric energy storage and/or production systems. The principle that such equipment should be exempted from the scope of the Model Regulations had been »
established but the Netherlands in particular sought to provide a textual solution that would offer clarity and avoid misinterpretation. Much discussion was also taken up by attempts to align the English and French texts.
After some discussion, the new 1.1.1.2(c), adopted within square brackets at the 51st session of the Sub-committee, was withdrawn. Instead, a new Note 5 to 1.1.1.2 was agreed:
For dangerous goods in equipment in use or intended for use during transport, see 5.5.4.
That new 5.5.4 reads: Dangerous goods in equipment in use or intended for use during transport
5.5.4.1 Dangerous goods (e.g. lithium batteries, fuel cell cartridges) contained in equipment such as data loggers and cargo tracking devices, attached to or placed in packages, overpacks, containers or load compartments are not subject to any provisions of these Regulations other than the following:
(a) the equipment shall be in use or intended for use during transport;
(b) the contained dangerous goods (e.g. lithium batteries, fuel cell cartridges) shall meet the applicable construction and test requirements specified in these Regulations; and
(c) the equipment shall be capable of withstanding the shocks and loadings normally encountered during transport. 5.5.4.2 When such equipment containing dangerous goods is transported as a consignment, the relevant entry of the Dangerous Goods List in Chapter 3.2 shall be used and all applicable provisions of these Regulations shall apply.
A number of other changes apply only to the terminology used in the French text.
A paper from the Russian Federation contended that the definition of design pressure in 6.7.3.1 is applicable for standalone vessel design pressure calculation but not for portable tanks, for which the strength requirements are found in 6.7.3.2.9. Its paper offered an amendment to 6.7.3.1(ii).
There was once more a difference of opinion; some experts opposed the change on the basis that it would allow tanks with thinner walls to be used, while others felt it would increase the accuracy of calculation. Bearing these comments in mind, the Russian representative said a revised proposal would be made at the next session.
Germany and the European Chemical Industry Council (Cefic) returned with further arguments to support their contention that the phrase “structurally serviceable” is unclear and, in addition, that there is a need for more detailed requirements for the condition of containers. Consideration had also been given to including a reference to the International Convention for Safe Containers (CSC) but, as this is already mandatory, it would not change the current legal situation.
Most of the experts who spoke agreed that the current text warranted improvement and supported the proposal in principle. Detailed comments were made during discussion and the expert from Germany invited experts to send those in writing so that a revised proposal could be made at the next session.
Belgium had received support at previous sessions for its proposal to clarify some of the portable tank special provisions, particularly with reference to minimum shell thickness of tanks intended for the transport of nonrefrigerated liquefied gases. This time the
Sub-committee expressed itself happy with the proposals. As a result, the portable tank provision TP19 in 4.2.5.3 is amended to read: At the time of construction, the minimum shell thickness determined according to 6.7.3.4 shall be increased by 3 mm as a corrosion allowance. Shell thickness shall be verified ultrasonically at intervals midway between periodic hydraulic tests and shall never be lower than the minimum shell thickness determined according to 6.7.3.4.
A new paragraph is added after 6.7.3.4.1(b): In addition, any relevant portable tank special provision indicated in Column 11 of the Dangerous Goods List and described in 4.2.5.3 shall be taken into account.
There is also a textual clarification in 6.7.2.2.16 and other consequential amendments that do not apply to the English text.
Following discussion at the previous session, the UK returned with a formal proposal to specify the conditions under which portable tanks can continue to be used for the transport of dangerous goods when they have missed the date for their periodic inspection or are switching from general cargo to dangerous goods. The proposal was adopted, resulting in an additional sub-section, 6.7.2.19.6.1, being agreed: Except as provided for in 6.7.4.14.6, portable tanks which have missed the timeframe for their scheduled 5 year or 2.5 year periodic inspection
and test may only be filled and offered for transport if a new 5 year periodic inspection and test is performed according to 6.7.4.14.4.
Similar wording is added in two other new sub-sections, 6.7.2.19.6 and 6.7.3.15.6.
The Stainless Steel Container Association (SSCA) returned with a formal proposal to delete the minimum wall thickness requirement for metal intermediate bulk containers (IBCs), quoting test results that showed that such IBCs with thinner steel than is currently required in 6.5.5.1.6 can pass the seven tests required in 6.5.6.
During previous discussions, opinion had been divided on the merits of the proposal and it was the same again, with the expert from Australia noting that there had been several incidents reported in which metal IBCs had leaked, despite their having passed all the required tests. She feared that any relaxation in the construction requirements would only serve to increase the frequency of such incidents.
In the end, the Sub-committee adopted by majority an amendment to 6.5.5.1.6; a new introductory sentence is added: Metal IBCs with a capacity of more than 1500 l shall comply with the following minimum wall thickness requirement:
There are changes to the wall thickness requirements laid out in the table under 6.5.5.1.6(a). »
The ICAO Dangerous Goods Panel had met in Montreal in early October. Among its discussions was a proposal to clarify the provisions for an exception from the minimum height requirements for the UN number and the letters ‘UN’ in the Technical Instructions. While it was clear that there is an allowance to use smaller letters and numbers on packages of 30 litres capacity or less, it was not clear whether this also extended to packagings of less than 30 kg net mass or to cylinders of less than 60 litres water capacity. An amendment had been discussed but it was realised that this is a multimodal issue and that the Subcommittee should be consulted.
The Sub-committee saw the sense in the proposals and adopted the proposed changes.
In 5.2.1.1, the end of the second sentence is amended to read: …for cylinders of 60 litres water capacity or less when they shall be at least 6 mm in height and except for packages of 5 litres capacity or less or of 5 kg maximum net mass when they shall be of an appropriate size
The third sentences of both 6.1.3.1 and 6.3.4.1 are amended to read:
Letters, numerals and symbols shall be at least 12 mm high, except for packagings of 30 litres capacity or less or of 30 kg maximum net mass, when they shall be at least 6 mm in height and except for packagings of 5 litres capacity or less or of 5 kg maximum net mass when they shall be of an appropriate size.
Bundles of cylinders Canada proposed to delete the last sentence of 4.1.6.1.6 which, it said, conflicts with the requirements of ISO 10961:2010. There was little support, with most experts considering that the current provisions are clear and provide an appropriate level of safety.
Germany presented test data that indicate that UN 2383 dipropylamine, assigned to Class 3 with a subsidiary hazard of corrosivity, also presents a toxicity hazard; thus, a second subsidiary hazard should be indicated. During discussions, some experts pointed out that current toxicological data might justify assigning a primary hazard of corrosivity, with subsidiary hazards of flammability and toxicity. The expert from China pointed out that it was unclear whether the toxicity data presented were derived from the inhalation of mists or of vapours, which would make a difference in the
interpretation of the data. And the US expert noted that, for certain Class 8 substances, a Division 6.1 subsidiary hazard does not need to be identified; he offered to lead work to develop an appropriate guiding principle on the topic.
In light of the discussions, the representative of Germany said she would consider presenting a revised proposal at a forthcoming session.
A further paper from Germany reintroduced the question of an exemption for articles containing dangerous goods in excepted quantities. This had been discussed before, during the work that resulted in the adoption of 12 new UN numbers for articles containing dangerous goods, with UN 3363 now reserved for articles containing dangerous goods within the limited quantity values. The proposal noted that, since the modal authorities have now applied those new UN numbers, exemptions have already been put in place for articles containing very small quantities of dangerous goods; without a formal provision in the Model Regulations, this could lead to articles being transported without classification.
Few experts supported the proposal. Some pointed out that, with the allowance in UN 3363, there is no need for an additional provision for dangerous goods in excepted quantities. There could also be a problem with dangerous goods in machinery and apparatus. In light of the lack of support, the proposal was withdrawn.
Germany had also spotted what it saw as errors of terminology in some special provisions and packing instructions. The Sub-committee agreed with the proposal and made three changes.
In packing instruction P200(3)(c), “(filling factor)” is deleted from the first sentence.
In the last sentences of packing instructions P301(1) and (2), “unit” is replaced by “primary containment”.
After some revision to the original proposal, in special provision SP 172(d), “subsidiary class or division” is replaced by “class or division of the subsidiary hazard”.
Germany had also queried the apparent inconsistency in the use of the terms “solid plastics” and “rigid plastics” in the Model Regulations. It seemed that there is no difference in the meaning and, indeed, in the German language versions of ADR and RID, the same word is used for both. The Subcommittee agreed that the terminology should be harmonised; however, the UK and Australia warned that the two terms are not necessarily equivalent. The expert from Germany took note of the comments and said she would consider a follow-up paper.
A joint paper from the European Association for Advanced Rechargeable Batteries (Recharge), International Organisation of Motor Vehicle Manufacturers (OICA), the Rechargeable Battery Association (PRBA) and the Council on Safe Transportation of Hazardous Articles (COSTHA) sought an amendment to large packing instruction LP906, which was created specifically to allow the transport of single batteries larger than 400 kg, to permit its application to more than one battery and to equipment containing batteries.
The Sub-committee was not convinced that to do so would be safe. However, the
Recharge representative pointed out that, with greater use of electric and hybrid vehicles, the need for a solution will only grow. A revised proposal will be forthcoming during the 201920 biennium.
A paper from Germany pointed out that, in the context of the transport of polymerising substances, recently added provisions require the manufacturer or consignor to evaluate the best way to stabilise the material and to meet the obligations of special provision 386. However, a large amount of polymerising substances is shipped as wastes and, in such cases, the information needed in order to comply with SP 386 is often not available. The German paper proposed an additional paragraph for SP 386 to address the issue.
The general tenor of discussion was that there has not been enough experience with the transport of polymerising substances to justify the proposal; some suggested there is a role for competent authorities in such cases. The proposal was withdrawn but, bearing in mind that the issue seems more relevant to regional than international transport, will be brought to the attention of the RID/ADR/ADN Joint Meeting. »
Spain opened up a discussion on the differentiation of labels and placards for flammable gases and flammable liquids. At present, these may be differentiated only on the basis of the small number at the bottom of the diamond. The Spanish paper was accompanied by a radical proposal for a red/green label and placard.
Few experts thought there was much value in the idea, which would certainly be costly and would cause confusion, not least for the colour-blind. [How do they cope at the moment? – ed.] It was also pointed out that there are
other means of hazard communication available to emergency responders.
There was, though, some sympathy for the overall idea. One option might be to keep the labels/placards the same colour but to use the pressure receptacle symbol instead of the flame and skulland-crossbones symbol for flammable and toxic gases. On the other hand, the representative of the Responsible Packaging Manufacturers Association of Southern Africa (RPMASA) reported that the understanding of the pressure cylinder symbol is very low in some countries and might benefit from amendment.
The representative of Spain withdrew the proposal but said she would continue to explore options.
Recharge and PRBA proposed an amendment to 38.3.3(g) in the Manual of Tests and Criteria to mirror an exemption in 38.3.3(d) to allow overcharge protection for large batteries to be housed in the hosting equipment or another battery. There was broad support for the concept but not for the wording of the solution offered. Recharge withdrew the document but promised to submit a revised proposal at the next session.
Having previously submitted a list of editorial corrections to the 20th revised edition of the UN Model Regulations, Germany had found some more. A number of these were adopted and published as corrections. Some are
merely corrections to spelling but there are some more important changes.
At the end of 2.8.4.3.3, the following sentence is added:
For this calculation method, generic concentration limits apply where 1% is used in the first step for the assessment of the packing group I substances, and where 5% is used for the other steps respectively.
In the second example of calculation for packing group III in 2.8.4.3.5, “10 (conc B)” should read “10 (conc C)”. In special provision 188, (g) and (h), “Except when batteries” should read “Except when cells or batteries”.
In Regulation No 134 in SP 392, “Hydrogen and fuel cell vehicles (HFCV)” should read: Uniform provisions concerning the approval of motor vehicles and their components with regards to the safety-related performance of hydrogen-fuelled vehicles (HFCV).
A paper from France brought the Subcommittee up to date with progress on the round robin testing of potential replacements for cellulose as a reference material in the O.1 and O.2 tests. It had also emerged that work needed to be done on Test O.3 and on improving the descriptions of all three tests.
The expert from Germany, noting that work on Test O.3 was still ongoing, proposed deferring adoption of the amendments proposed in the French paper, although others felt that work done already, particularly regarding a resolution of the difficulties being experienced in sourcing calcium peroxide in the correct concentration limits, meant that the proposals should be adopted promptly. After an exchange of views, it was agreed to adopt some of the amendments proposed by France.
As a result, the descriptions of Test O.2 in 34.4.2.3.1 and Test O.3 in 34.4.3.5.3 of the Manual of Tests and Criteria have been refined for clarity. In the description of Test O.3 in 34.4.3.2.1, a slight allowance is made for the concentration of the calcium peroxide powder, which will now be “75% ± 1.0%” rather than “75% ± 0.5%”; the text has also been clarified. In 34.4.3.3.2, the description
of the metal wire is also revised to read “below or equal to 1 mm”. More substantial changes to the metal wire description for Test O.1 is included in 34.4.1.2.3.
The Sub-committee also accepted France’s recommendation for further work on this issue.
On the basis of an EU proposal, the Subcommittee agreed to amend the references to OECD Test Guidelines in 2.8.3.2. That proposal also included an additional sentence at the end of the paragraph:
If the in vitro test results indicate that the substance or mixture is corrosive and not assigned to packing group I, but the test method does not allow discrimination between packing groups II and III, it shall be considered to be packing group II.
Cefic and EIGA recommended adoption of a harmonised approach to the classification of chemicals under pressure, with proposals for amendments in Chapter 2.3 of the GHS and SP 362 in the Model Regulations. There was support for the idea but many experts felt that further work was needed. Cefic invited delegates to provide comments in writing so that a revised proposal could be made during the 2019-20 biennium.
The secretariat prepared a document setting out the topics for inclusion in the Subcommittee’s work for the 2019-20 biennium. These fall into much the same list of headings as for the 2017-18 biennium, but with some specific topics such as e-documentation and the global recognition of UN and non-UN pressure receptacles.
On a proposal from Germany, seconded by Canada and China, the Sub-committee re-elected Duane Pfund and Claude Pfauvadel to act as chair and vice-chair, respectively, for the coming biennium.
The 55th session of the UN Sub-committee of Experts on the Transport of Dangerous Goods, the first of four planned for the 201920 biennium, is scheduled to take place in Geneva from 1 to 5 July.
HCB
not-too-distant future, although it is worth remembering that the modal authorities may well amend the details or ignore them altogether. Those authorities will also have new amendments of their own.
AT ITS NINTH session in Geneva on 7 December 2018, the UN Committee of Experts on the Transport of Dangerous Goods (TDG) and on the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) formally adopted the amendments agreed by the two subcommittees during the 2017-18 biennium.
The Committee itself made no further changes, other than to agree that the reference to the Recommendations on the Transport of Dangerous Goods in the title of the Manual of Tests and Criteria is no longer appropriate, as the Manual is now also
relevant for GHS. That change will be reflected in the seventh revised edition of the Manual, due to be published this year.
The amendments that will appear in the 21st revised edition of the UN Recommendations on the Transport of Dangerous Goods (also known as the ‘Model Regulations’ or ‘Orange Book’) will be transposed into the modal regulations as from the start of 2021; those with responsibilities under those regulations – the IMDG Code, the ICAO Technical Instructions, ADR/RID/ ADN, 49 CFR etc – will do well to take note of what is likely to be coming along in the
This year’s list of amendments is short on headline changes. There are, for instance, only four new entries in the Dangerous Goods List, three of which share the same proper shipping name. However, there are numerous smaller changes and the document prepared by the UN Economic Commission for Europe (ECE) Secretariat, which lists all the amendments, runs to 29 pages.
This article highlights some of the main changes that will impact various participants in the supply chain from 2021 onwards; those subject to the various regulations are advised to check the document closely to see if their operations are likely to be
affected. The document, ST/SG/AC.10/46/ Add.1, is available on the UN ECE website at www.unece.org/trans/main/dgdb/dgcomm/ ac10rep.html.
Following discussion at the December 2018 session of the UN TDG Sub-committee, a new Note 4 is added to 1.1.1.2, pointing users to the new 5.5.4 that provides exemptions from the regulations for battery-powered equipment, such as telematics units and data loggers, attached to vehicles or cargo units carrying dangerous goods.
There are two new definitions in 1.2.1, for ‘dose rate’ and ‘self-accelerating decomposition temperature’. The entry for ‘radiation level’ is deleted.
In the security provisions in Chapter 1.4, new rows are added to the Indicative List of high consequence dangerous goods in Table 1.4.1. These include the new UN 0512 and 0513 entries (see below under Part 3), explosives of Division 1.6, and the new UN 3549 entry for Category A medical waste.
There are a number of changes in Chapter 1.5 to align with the revised International Atomic Energy Agency (IAEA) Regulations for the Safe Transport of Radioactive Material. Other changes specific to Class 7 materials are found throughout the Model Regulations, especially in Chapters 2.7 and 6.4 and
Sections 4.1.9 and 5.1.5; those with an interest in this sector are advised to consult the IAEA publication as a first step.
A clarification to the relatively new Section 2.0.5 clarifies that, while the section does not apply to dangerous goods of Class 1, Division 6.2 or Class 7, it does apply to articles containing explosives which are excluded from Class 1 in accordance with 2.1.3.6.4.
There are some apparently small changes in Chapter 2.1 on the classification of explosives; these may, though, have a significant impact on classification and therefore transport procedures. Those likely to be affected are advised to check carefully.
Chapter 2.2, which deals with the classification of gases, also features a few changes; the concept of ‘chemicals under pressure’ is inserted in 2.2.1.3 and the Note to 2.2.2.1. References to the ISO 10156 standard are updated to the 2017 edition.
In the Note to 2.4.3.2.3.1, relating to selfheating substances, the exception for Type G self-reactive substances is removed. There are a number of detailed changes in the table of organic peroxides in packages in 2.5.3.2.4.
In Chapter 2.6, reference is added where relevant to the new UN 3549; this is found in 2.6.3.2.1, 2.6.3.2.3.9(a) and 2.6.3.5.1, which is amended to read:
Medical or clinical waste containing:
(a) Category A infectious substances shall be assigned to UN 2814, UN 2900 or UN 3549, as appropriate. Solid medical waste containing Category A infectious substances generated from the medical treatment of humans or veterinary treatment of animals may be assigned to UN 3549. The UN 3549 entry shall not be used for waste from bio-research or liquid waste;
(b) Category B infectious substances shall be assigned to UN 3291.
In Chapter 2.8 on the classification of corrosive substances, 2.8.3.2 is updated to reflect new OECD Test Guidelines and a new sentence is added at the end:
If the in vitro test results indicate that the substance or mixture is corrosive and not assigned to packing group I, but the test method does not allow discrimination between packing groups II and III, it shall be considered to be packing group II.
The following new UN numbers are added to the Dangerous Goods List in Chapter 3.2:
• UN 0511 detonators, electronic programmable for blasting, 1.1B
• UN 0512 detonators, electronic programmable for blasting, 1.4B
• UN 0513 detonators, electronic programmable for blasting, 1.4S
• UN 3540 medical waste, category A, affecting humans, solid or medical waste, category A, affecting animals only, solid, 6.2.
The proper shipping name in column (2) for UN 3363 is amended by the addition of ‘dangerous goods in articles’.
There are a lot of changes to the special provisions and their assignment in the Dangerous Goods List. In SP 239, the last sentence is removed; this said that batteries installed in vehicles (UN 3171) are not subject to the regulations other than in air transport.
SP 274, which requires the technical name to be shown on documentation and package marking, has been a thorn in the side of many for some time. There is now some relief in an addition to the text in the form of an additional paragraph:
For UN 3077 and UN 3082 only, the technical name may be a name shown in capital letters in »
column 2 of the Dangerous Goods List, provided that this name does not include “N.O.S.” and that special provision 274 is not assigned. The name which most appropriately describes the substance or mixture shall be used, e.g.:
UN 3082, ENVIRONMENTALLY HAZARDOUS SUBSTANCE, LIQUID, N.O.S. (PAINT) UN 3082, ENVIRONMENTALLY HAZARDOUS SUBSTANCE, LIQUID, N.O.S. (PERFUMERY PRODUCTS)
An amendment has been made to SP 327 to extend its applicability to waste gas cartridges; that includes a new sentence: Waste gas cartridges, other than those leaking or severely deformed, shall be packed in accordance with packing instruction P003 and special packing provisions PP17 and PP96, or packing instruction LP200 and special packing provision L2.
Also, an additional paragraph is added at the end:
Waste gas cartridges that were filled with gases of Division 2.2 and have been pierced are not subject to these Regulations.
SP 360 has been clarified. It will now read: Vehicles only powered by lithium metal batteries or lithium ion batteries shall be assigned to the entry UN 3171 BATTERY POWERED VEHICLE.
Lithium batteries installed in cargo transport units, designed only to provide power external to the transport unit shall be assigned to entry UN 3536 LITHIUM BATTERIES INSTALLED IN CARGO TRANSPORT UNIT.
A similar clarification has been added to SP 380.
SP 370 has been subject to some amendment after it was found to be being applied inconsistently. In particular, a new paragraph is added: This entry shall not be used for ammonium nitrate for which a proper shipping name already exists in the Dangerous Goods List of Chapter 3.2 including ammonium nitrate mixed with fuel oil (ANFO) or any of the commercial grades of ammonium nitrate.
In SP 376, which deals with damaged or defective cells and batteries, the Note that
describes the necessary assessment or evaluation has been reworded and extended.
There are four new special provisions:
• SP 390, which deals with packages containing a combination of lithium batteries contained in and packed with equipment;
• SP 393 and 394, which deal with nitrocellulose used in prescribed tests; and
• SP 395, which applies to UN 3549 and clarifies its applicability.
In Appendix B there is a new definition for detonators, electronic programmable for blasting (the new UN 0511, 0512 and 0513):
Detonators with enhanced safety and security features, utilizing electronic components to transmit a firing signal with validated commands and secure communications. Detonators of this type cannot be initiated by other means.
An important addition, prompted largely by industry, has been made in the new 4.1.1.3.1: Packagings, including IBCs and large packagings, may conform to one or more than one successfully tested design type and may bear more than one mark.
In packing instruction P003, a new special packing provision PP96 is added: For UN 2037 waste gas cartridges transported in accordance with special provision 327, the packagings shall be adequately ventilated to prevent the creation of dangerous atmospheres and the build-up of pressure.
In packing instruction P200, table 2, a number of LC50 values have been radically amended (see HCB April 2019, page 67).
In packing instruction P206, a new special provision PP97 is added:
For fire extinguishing agents assigned to UN 3500 the maximum test period for periodic inspection shall be 10 years. They may be transported in tubes of a maximum water capacity of 450 l conforming to the applicable requirements of Chapter 6.2.
In both P400 and P404, an amendment has been made to the closure requirements for inner packagings; this responds to concerns over the use of threaded closures when used with pyrophoric solids. New text has been added: Inner packagings shall have threaded closures or closures physically held in place by any
means capable of preventing back-off or loosening of the closure by impact or vibration during transport.
There is a new packing instruction P622 and large packing instruction LP622 for UN 3549. The existing P801 for UN 2794, 2795 and 3028 has been largely revised. A new paragraph (5) in P903 deals with the packaging of cells or batteries packed with and contained in equipment.
A new 4.2.3.7.3 requires that the actual holding time for portable tanks carrying refrigerated liquefied gases is entered in the transport document; this is expanded upon in a new 5.4.1.5.13.
Portable tank special provision TP19 has been revised, and will now read: At the time of construction, the minimum shell thickness determined according to 6.7.3.4 shall be increased by 3 mm as a corrosion allowance. Shell thickness shall be verified ultrasonically at intervals midway between periodic hydraulic tests and shall never be lower than the minimum shell thickness determined according to 6.7.3.4.
PART 5
There is some clarification in 5.2.1.1 on the size of the text that must be used on smaller packagings and in 5.2.1.9 on the size of the lithium battery mark.
Some relief has been provided in terms of the form of labels, which had been causing problems during enforcement.
Paragraph 5.2.2.2.1.1.2 has been revised and will now read:
The label shall be in the form of a square set at an angle of 45 degrees (diamond-shaped). The minimum dimensions shall be 100 mm x 100 mm. There shall be a line inside the edge forming the diamond which shall be parallel and approximately 5 mm from the outside of that line to the edge of the label.
In 5.5.3, a note has been added to explain that the term ‘conditioning’ may be interpreted more widely and used, for instance, to cover material introduced into a cargo transport unit for the purposes of protecting the cargo during transport.
A new 5.5.4 has been added to deal with dangerous goods contained in equipment (for instance, data loggers and cargo tracking
devices) intended for use during transport (see page 100).
PART 6
There are a number of changes to the provisions for the construction and testing of packagings in Chapter 6.1. These include a revision to 6.1.3.1 to introduce allowances for the marking of smaller packagings, similar to the clarification in 5.2.1.1. In response to
industry concerns, in the note explaining the asterisk in 6.1.3.1(e), the second sentence is amended to read:
In such a case and when the clock is placed adjacent to the UN design type mark, the indication of the year in the mark may be waived. However, when the clock is not placed adjacent to the UN design type mark, the two digits of the year in the mark and in the clock shall be identical. »
The new 4.1.3.1.1 is accompanied by a new 6.1.3.13: Where a packaging conforms to one or more than one tested packaging design type, including one or more than one tested IBC or large packaging design type, the packaging may bear more than one mark to indicate the relevant performance test requirements that have been met. Where more than one mark appears on a packaging, the marks must appear in close proximity to one another and each mark must appear in its entirety.
A new paragraph has been inserted as 6.1.4.2.6 (for aluminium drums) and 6.1.4.3.6 (for metal drums not made of steel or aluminium), with existing paragraphs being renumbered: If materials used for body, heads, closures and fittings are not in themselves compatible with the contents to be transported, suitable internal protective coatings or treatments shall be applied. These coatings or treatments shall retain their protective properties under normal conditions of transport.
In Chapter 6.2 there is the usual lengthy list of updates to ISO and EN standards. These mostly apply to gas cylinders,
A clarification is made in the form of a Note to 6.2.2.7.2(c) (for refillable UN pressure receptacles) and 6.2.2.9.2(c) (for UN metal hydride storage systems):
For the purpose of this mark the country of approval means the country of the competent authority that authorized the initial inspection and test of the individual receptacle at the time of manufacture.
The title of Chapter 6.3 has been amended so as to clarify its applicability, through the addition of “(UN 2814 and UN 2900)” at the end.
In the provisions for intermediate bulk containers (IBCs) in Chapter 6.5, a new 6.5.2.1.3 provides for IBCs to conform to one or more design type. A similar addition is made at 6.6.3.4 for large packagings.
There has been an attempt to clarify the role of the symbol used to indicate the maximum permitted stacking load for IBCs; reference to the mark is now deleted from
the table of additional marks in 6.5.2.2.1. The words “when the IBC is in use” are deleted from the first sentence of 6.5.2.2.2 and a similar change is made relative to large packagings in 6.6.3.3.
There had been confusion over the necessity to have marks on the inner receptacle of composite IBCs visible during use. The experts had decided to make it clear and have amended the last sentence of the first paragraph of 6.5.2.2.4 to read: They shall be durable, legible and placed in a location so as to be readily accessible for inspection after assembling the inner receptacle in the outer casing. When the marks on the inner receptacle are not readily accessible for inspection due to the design of the outer casing, a duplicate of the required marks on the inner receptacle shall be placed on the outer casing preceded by the wording “Inner receptacle”. This duplicate shall be durable, legible and placed in a location so as to be readily accessible for inspection.
In the second paragraph, the second sentence is revised to read: In such a case, the date may be waived from the remainder of the marks.
Despite objections from some, changes have been made to the thickness requirements for the bodies of metal IBCs. A new introductory sentence in 6.5.5.1.6 clarifies that the change only applies to metal IBCs with a capacity of more than 1,500 litres; the values in the table are amended.
In response to a UK effort, a new 6.7.2.19.6.1 is added: Except as provided for in 6.7.2.19.6, portable tanks which have missed the timeframe for their scheduled 5 year or 2.5 year periodic inspection and test may only be filled and offered for transport if a new 5 year periodic inspection and test is performed according to 6.7.2.19.4.
Similar text is added at 6.7.3.15.6 and 6.7.4.14.6.1. HCB
and batteries used to power medical devices, which requires PHMSA approval.
As ever, there is devil in the details. There is a change to the marking and labelling requirements that will impact road and rail shipments that contain excepted lithium ion cells and batteries shipped in accordance with 49 CFR §173.185(c). Such shipments were previously required to display the lithium battery mark but must now also display either a mark stating “LITHIUM ION BATTERIES
– FORBIDDEN FOR TRANSPORT ABOARD PASSENGER AIRCRAFT” or carry a “CARGO AIRCRAFT ONLY” mark. This requirement also applies to lithium ion cells and batteries contained in or packed with equipment, shipped under UN 3481, where the package exceeds 5 kg.
Brian Beetz, manager of regulatory affairs and corporate responsibility at Labelmaster, says: “The regulatory requirements for shipping lithium batteries are complex and continue to expand, and having the rules vary by transportation mode only adds to the confusion and increases the chances of mistakes. The new IFR will generally harmonise DOT and ICAO regulations, further promoting safety across the industry by taking steps to ensure standalone lithium-ion batteries are not inadvertently loaded to aircraft, which can happen with multi-modal transportation.”
THE US PIPELINE and Hazardous Materials Safety Administration (PHMSA) issued its long-awaited interim final rule (IFR) under HM-224I on 6 March, introducing changes to the provisions in the Hazardous Materials Regulations (HMR) relating to the transport of lithium cells and batteries by aircraft. In effect, the rule brings the HMR into line with changes introduced on 1 April 2016 in the form of emergency amendments to the 20152016 edition of the International Civil Aviation Organisation’s (ICAO) Technical Instructions.
The main amendments are:
• A prohibition on the transport of lithium ion cells and batteries as cargo on passenger aircraft
• A requirement that lithium cells and batteries must be shipped at a state of charge of no more than 30 per cent on cargo-only aircraft, when not packed with or contained in equipment, and
• Limits on the use of alternative provisions for small lithium cell or battery shipments to one package per consignment. The amendments will not restrict passengers or crew members from bringing personal items or electronic devices containing lithium cells or batteries aboard aircraft, or restrict the air transport of lithium ion cells or batteries when packed with or contained in equipment. There is also a limited exception from the state-of-charge requirement for cells
PHMSA found it was not feasible to apply the usual notice-and-comment process with the IFR, so it is effective immediately. In particular, it was under time pressure to get the rule in place as a result of the Federal Aviation Administration (FAA) Reauthorisation Act of 2018, which gave it 90 days from 5 October 2018 to align HMR with the 2016 changes in the ICAO Technical Instructions. PHMSA will, however, listen to any comments received on the IFR prior to publication of a final rule at some point in the future. PHMSA also says that the specific applicability of Section 333 of the FAA Reauthorisation Act 2018 indicates that Congress perceived a safety risk that required “accelerated intervention”.
The full text of the IFR can be found at www. govinfo.gov/content/pkg/FR-2019-03-06/ pdf/2019-03812.pdf.
Chemical
Chemspec
In industrial situations, the risk of dust explosions is comparatively well understood. But, aside from old wives’ tales about housewives having their eyebrows singed off when opening a tin of custard powder, the general public – and especially the youth of today – is perhaps less prepared for such hazards.
At least, that is the only lesson we can take from the unending series of examples of dustrelated mishaps engulfing young people these days. These incidents normally involved the throwing around of powder in the vicinity of a naked flame, as happened last November in Hong Kong.
According to the local press, more than 20 students were celebrating some joint birthdays at the Kowloon Tong campus of the Baptist University. They came with a birthday cake, of course, and after lighting the candles started up with birthday songs. Then one of the celebrants got out a bag of flour and started throwing it around – such being the habit of students.
Suffice to say, the inevitable happened: the candles ignited the flour with a boom. At least 12 students were injured, one very badly. Press reports reminded people not to throw flour around, nor sugar, sawdust, pudding mix…
There was a larger injury toll resulting from an explosion at another celebration last month in a village in Bazhou, in China’s Hebei province, although this was perhaps more predictable. A cook was preparing food for funeral guests when a leak from one of the propane cylinders ignited, causing the blast. Police counted 66 people injured in the explosion, although none was critically hurt.
Pictures of the aftermath showed dozens of chairs scattered around the two lines of tables as mourners fled, with cooking equipment and two gas cylinders lying nearby. Police said they found that the hoses from the gas cylinders were worn out, which had caused the leak. Rather darkly, reports say “an unspecified number of people have been responsible for the incident”, although only two were detained by police during their criminal investigation.
Somewhat more mundanely, a man was rushed to hospital in Carver, Massachusetts, last month with burns to his face, hands and respiratory system. As often happens (you know who you are…) he had been burned when he threw gasoline onto a burning fire, presumably a barbecue.
The odd thing about this story, and which piqued our interest, was that the man said that he thought the liquid he was throwing on the fire was water and that he was trying to put the fire out. Perhaps he had no sense of smell, but the difference would seem to be rather obvious to us. More likely he was trying to excuse himself for his stupidity.
And finally, here’s something from our friends at the Darwin Awards, from their 2017 archives. It concerns a Russian welder, who spotted how neatly a fire extinguisher fitted into a decommissioned howitzer waiting to be scrapped at his workplace in Kurgan region. Priming the artillery piece with calcium carbide and water, he stood back to watch what would happen.
It was the last thing he watched, as the fire extinguisher blew up as it was shot out of the cannon, with shrapnel flying in all directions, including towards his head.
Downstream
Fecc
Freight Merchandising
Goodrich
Intermodal
Kombiverkehr
Labeline
Nantong
Pelican
