HCB Magazine May 2020 by Enhesa Product

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FULL TO THE BRIM TANKS IN DEMAND AS OIL MARKETS TUMBLE INTO TURMOIL TANK CONTAINERS FIND NEW MARKETS ADVANCES IN CARGO VISIBILITY TRAINING DURING LOCKDOWN

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UP FRONT 01

EDITOR’S LETTER

It’s an ill wind that blows no one any good. While much of the

It is as yet hard to see how all this is going to pan out in the

world is in lockdown during the Coronavirus crisis, which is

end, although there are some lights at the end of the tunnel.

taking such a heavy toll both on human life and on corporate life,

China is already back up and running, although there is always

there are some industrial sectors that are doing extremely well.

the threat of the virus reappearing. And it looks certain that

We have over the past few weeks witnessed logistics operators

it will be some months before the impact of the crisis on

doing what they do best: responding to rapid changes in demand

commercial activity in Europe and North America returns

patterns with new flows and urgent deliveries. That has been

to anything like ‘normal’ levels.

especially true in the healthcare sector and in domestic deliveries of groceries and other necessities. In the bulk liquids sector, operators have faced unprecedented

What is more problematic at this point is international containerised traffic, with ports around the world instituting restrictions on vessel calls and on shoreside working. That

business conditions. That has certainly been very good news

has highlighted just how global some supply chains are

for tanker operators, particularly in the larger sectors – a glut

these days although, with consumer demand for non-food

of crude oil, as a result of the collapse in end-user demand for

items having almost disappeared, many supply chains do

transport fuels in particular, has offered sky-rocketing freight

not currently place much demand on the liner trades.

rates as well as good business for older vessels for use as floating storage. All along the supply chains, producers that have been unwilling to

Will those supply chains return? In a post-Coronavirus world, will consumers behave just like they did before, or will the stresses of the current crisis make them think about their

curtail output, either because of cost or – especially upstream – the

behaviour and change their buying patterns? Will we ever go

sheer practical difficulties of doing so, have been casting around to

back to thinking nothing of hopping on a plane to fly across the

look for places to hold these excess volumes. In the US, rail tank

ocean, or even for a weekend break in some picturesque city?

cars are being repurposed for storage purposes, and storage terminals around the world are filling up with superfluous inventory.

And possibly worse: what happens when we all get back to the office once the lockdown is over, and find that our

Perhaps more surprisingly, the tank container sector has also

corporate memory has potentially been impacted by furloughs

been enjoying something of a boom, with operators, depots and

and redundancies? Will the dangerous goods supply chain be

haulage companies all reported to be very, very busy. HCB hears

able to manage that loss of expertise? Keeping up to date with

that customers are not focusing on price during the current crisis;

developments will be even more crucial and HCB is keeping

rather, they are looking for service, and that is something

its fingers crossed that we will be there to help. Meanwhile,

that tank containers can provide, with their built-in flexibility

stay safe.

and dependability.

Peter Mackay

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30 YEARS AGO A LOOK BACK AT MAY 1990

These columns often find parallels between the news HCB was presenting thirty years ago and the pages of the current issue. The basics are very much the same: for instance, in May 1990 we wrote about the European road tanker market, the growth of the tank container sector in the US, combined road/rail transport, gas shipping, US packaging specifications, and the latest deliberations at the UN Sub-committee and the ADN Safety Committee. Environmental issues were there too, though perhaps not as high-profile as they are these days, even if the concept of ‘sustainability’ had not been defined. Digitisation was some way off, though we reported back then about the installation of onboard computers on trucks. Another parallel could be found in the Safety pages of the May 1990 issue, where we reported on the travails experienced by Exxon in the year since the Exxon Valdez oil spill in Alaska in March 1989. On Christmas Eve that year, two people were killed and others injured by a “thunderous explosion” at the company’s Baton Rouge refinery in Louisiana, which set fire to five storage tanks, and on 2 January 1990 Exxon’s underwater pipeline in

for the change. In general, we reported, there was a mood to support alignment but there were still qualms about the applicability of ADR to UK operations. In particular, industry did not want to lose the established Hazchem marking system for road tankers, although reassurance was offered that this would still be available for use, as it still is to this day. One particular qualm was the lack of an emergency contact number on the ADR plate and there was talk at that time of adding it, though nothing came of the initiative. Interestingly, as we report in this issue from presentations at the BADGP annual conference, the UK Department for Transport is wrestling with similar issues as the UK prepares for the full effect of Brexit, with a lot of legislative changes in the offing. We did not forget our US readers in May 1990, of course, and there was a further article from Ron Bohn of the National Cargo Bureau, who looked in particular at the way in which the US was applying the IMDG Code. Ron noted that the latest version of the US Hazardous Materials Regulations, ‘revised as of October 1, 1989’ had just been published; however, the ‘Optional Table’ in

New York harbour sprang a leak. Readers might want to refer to this month’s Incident Log, where we record another explosion at the same refinery, though this time fortunately without fatalities. In Europe, preparations were being made for the single market’s arrival in 1992. As part of that, the UK was looking to adopt ADR for domestic as well as international road transport of dangerous goods and HCB had sampled industry’s appetite (or otherwise)

172.102 of HMR was still four IMDG amendments out of date. There was a provision to allow shippers to use the proper shipping names in the IMDG Code as if they were in the Optional Table, but this would require approval from the US Department of Transportation. There were also differences in the regulation of the transport of motor vehicles in closed containers, though that has now at last been aligned.

HCB MONTHLY | MAY 2020

UP FRONT 03

CONTENTS VOLUME 41

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UP FRONT Letter from the Editor 30 Years Ago View from the Porch Swing Response and recovery NCEC advice on Covid-19 Let’s work together GPCA appeals for global action Learning by Training STORAGE TERMINALS Put the brakes on Crisis threatens expansion plans In good health Vopak sees little market impact Essential service ILTA provides a lifeline for members News bulletin – storage terminals TANKS & LOGISTICS Counting tanks ITCO survey sees further growth All about the tank

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

Tank container guidance from TT Club See where you are Best practice on visibility from ECTA Clean and clear ClearMetal gives end-to-end visibility First past the post Stolt-Nielsen warns of upcoming slump News bulletin – tanks and logistics

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CHEMICAL DISTRIBUTION Do the Poznán Bodo Möller sets up bigger hub News bulletin – chemical distribution

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COURSES & CONFERENCES Training during lockdown Exis online courses come into their own Conference diary

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SAFETY Incident Log Candy store Consafe adds DGOffice modules

Inglorious mud North P&I alert on bauxite by-product Keep your distance Remote surveys are here to stay

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

REGULATIONS Gas works UN experts make Class 2 changes Beat the clock What we missed at BADGP seminar BACK PAGE Not otherwise specified

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NEXT MONTH Gas tanker fleet review A look at tank container manufacturing FIBCs in focus Terminal equipment news roundup

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

Commercial Director Ben Newall Email: ben.newall@hcblive.com Tel: +44 (0) 208 371 4036

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

Cargo Media Ltd Marlborough House 298 Regents Park Road London N3 2SZ

ISSN 2059-5735 www.hcblive.com

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

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FROM THE PORCH SWING THE ONION

The European Space Agency was forced to announce today the failure of the Sun Labeling Mission. In typical fashion, the Agency announcement of the failure was a very short statement squeezed between two grandiose announcements of unprecedented aeronautical success. Not only did the Sun Labeling Mission (arguments still occur over whether it should be

to pronouncing the Sun Labelling Mission acronym. “The European Space Agency is justifiably proud of our scientific, engineering, and technical accomplishments before and during this mission”, he said. “The unfortunate social and political uproar over the goal of the Mission should not overshadow the hard work and incredible results of Agency employees and contractors.” Nevertheless, questions about the SLuM dominated the press conference but, to be totally

spelled Labelling or Labeling) come closer to the sun than any manned spacecraft ever, it also set a European record for total duration in space. Head of the Agency, Olaf Heffevissen, expressed frustration at the comments and questions from the press, attempting to redirect them from the ultimate failure of the SLuM, as some have taken

fair, more of the questions did relate to the goals of the mission, and fewer to the failure of the letters to fully deploy. Apparently unwilling to face that sort of questioning, neither the head of ECHA, Sergio von Vonnenburg, nor the head of the European Parliament Committee for Consumer Protections, Maria Breeya, attended the press

Dateline Brussels –

HCB MONTHLY | MAY 2020

conference. Ms Breeya, intercepted between the Parliament Building and her awaiting limousine was her typical brusque self. “It was a noble mission for noble purposes.” she rasped in her husky voice, “but you knew that already.” Señor von Vonnenburg, reached for comment at the golf course, was less able to avoid the press and much more expansive in his comments. “Ever since that unfortunate and oft-repeated remark to HCB about the sun being more carcinogenic than titanium dioxide, yet bearing no label warnings, it has been alleged that we regulators have been remiss in protecting the public. As the large number of skin cancers in Europe clearly indicate, many members of the public are unaware of the dangers posed by our sun. The idea of placing giant shades in the shape of letters between the earth

UP FRONT 05

and the sun, outside of our atmosphere, allows us the ability to place a permanent warning of the incredible potential of our sun to cause bodily harm, and to have this warning visible to all. In this way, with the assistance of the ESA, we regulators have met our obligation to the public, who can now make a fully informed decision about how much protection they need in daylight.” Informed of the failure of the SLuM to deploy in outer space the letters spelling out the carcinogen warning, Señor von Vonnenburg could only be heard muttering “merde” under his breath as he retreated to the privacy of the golf course locker room. Piotr Mickey, founder of the Committee Opposed to Excess Information and Safety Talk, COExIST, couldn’t be reached for direct comment, but the COExIST office did release a commentary. “No one in their right mind thought that looking at the sun and seeing a hazard warning was a reasonable idea. Only those opposed to personal responsibility and with a dim view of basic human intelligence would attempt to put a warning on either titanium dioxide or the sun. We celebrate the failure of the SLuM as a blow against government regulation run rampant. We’d like to think the failure of SLuM is a sign of some common sense in outer space, as there certainly seems to be a dearth of common sense here on earth.” END TRANSMISSION Nope, nobody I know of has actually proposed blocking sunlight in lettershapes to spell out a carcinogen warning about the damaging rays of the sun. But work proceeds apace to create a regulation that would require titanium dioxide (TiO²) carcinogen warnings, not just on TiO² itself, but on any product containing it. There is also some significant opposition to the proposed regulation, and I have overheard an opponent give the sun versus TiO² carcinogen strength comparison. What do we actually know about the question of requiring additional carcinogen warnings for TiO²? Well, it’s almost certain that decades and decades of inhaling pure TiO² dust can give one lung cancer. However, TiO² has also long been GRAS (Generally Recognized As Safe) as an ingredient in oral medications, such as pills, tablets, and capsules. In fact, if you’ve ever swallowed a white pill or any medicine with white writing on it, you’ve most likely already

eaten titanium dioxide. Not only is TiO² used in oral medicines, it is also used in paint. In paint, both as a liquid and as a dried solid, it’s difficult to get adversely affected by the TiO². It isn’t absorbed through the skin, you don’t breathe it in, and adults don’t eat it. Yeah, you might ask, but what about young children eating old paint chips? Well, it’s not the same as eating old lead paint chips, because the lead has some acute toxic effects, and TiO² doesn’t. Still, especially in children’s not yet fully developed bodies, there may be some slightly higher chance of some disease, such as cancer, later in life. But, really, what good would a product warning label do about children eating old paint? First of all, by the time dried paint is old enough to start flaking off, how likely is it that the empty paint container is still around? Second, if it is around, how likely is it that someone will read it? And third, does anyone, seriously, even one single person, believe that a parent or guardian would stop a child from eating paint chips because of a carcinogen warning, but not stop them in the absence of such a warning? Can you picture it? “I’m sorry, Kimmi, I can’t let you eat those paint chips any longer, because they might be a carcinogen.” It seems to me that there’s a line somewhere between reasonable hazard warnings and excessive warnings. And don’t forget that any warnings the public believes are excessive reduce the effectiveness of those warnings that are wholly and totally justified. It only takes a few warnings being viewed as poppycock before all warnings are viewed as poppycock. It also makes a difference if the public perceives that ‘everything’ has hazard warnings on it. When it’s impossible to find products without warnings, then ‘everything’ is dangerous, and ‘everything’ gets all lumped together. Then the specifics of how and why something is dangerous get ignored in favor of the general conclusion that “oh heck, everything’s dangerous”. For goodness sake, water, H²O itself, has an oral LD50! The means if someone drinks enough water the L in the LD50 kicks in, ‘Lethal’. Yes, it is possible to die of water intoxication, and people have done so. You did notice those five letters T O X I C in the middle of “intoxication” didn’t you? So, yes, we do have a line between reasonable and excessive

warnings, and currently water is on one side of it and chlorine gas is on the other. I’m not always sure where that line is, and it is different for different regulations, but I do think that Dangerous Goods (DG) regulations have already crossed it. Let’s talk about the ‘dead tree, dead fish’ warnings on otherwise hazardous goods. What good is done by having that mark next to any other DG label or placard? Is there any emergency responder anywhere who would say something like, “Sure, we can let that corrosive or poison or self-heating or <insert hazard here> liquid drain into the bay…, oh wait, we can’t do that, because it’s also a Marine Pollutant.”? Really? I’ve talked to a few emergency responders about this, and it’s a pretty general - but strong - rule that the hazardous spill needs to be contained. And that general rule applies even in the absence of an EHS/MP warning. I can see a tremendous amount of value in including EHS materials in Class 9, but I don’t see any added value in adding EHS/MP warnings to materials already in Classes 1 to 8. I think the ICAO/IATA approach to Mark, the dead fish (yes, the dead fish is named Mark, because he isn’t a label nor a placard), in which it only applies to Class 9 materials with a proper shipping beginning Environmentally Hazardous…, is probably the most sensible approach, and should be adopted by other DG regulations. I’m okay with carcinogen warnings on pure TiO², but when in different forms perhaps those warnings are excessive and wasted. By the way, if they ever do put letters into space, so everyone on earth can be warned of the powerfully carcinogenic property of the sun’s rays, which language would that warning be in? And how would we measure the font size? A man in the fitness center has a gym bag with a button on it, and the button says: Eat Well, Stay Fit, Die Anyway. Oh, wait, that man is me. This is the latest in a series of musings from the porch swing of Gene Sanders, principal of Tampa-based WE Train Consulting; telephone: (+1 813) 855 3855; email gene@wetrainconsulting.com.

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RESPONSE AND RECOVERY PREPAREDNESS • THE OUTBREAK AND RAPID SPREAD OF COVID-19 HAS HIGHLIGHTED THE NEED FOR BUSINESSES TO PREPARE AND PLAN FOR THE ONGOING RESPONSE TO AND RECOVERY FROM THE PANDEMIC ON 31 DECEMBER 2019, the outbreak of a respiratory illness in Wuhan City in China was reported to the World Health Organisation (WHO). At that time, it was called 2019 Novel Coronavirus (2019-nCov), but has since been renamed Covid-19. Fast forward to mid-April 2020, and over 200 countries and territories around the world have reported a total of approximately 2 million confirmed cases of Covid-19 and 123,000 related deaths. The most obvious impact of this outbreak is how people are affected. Whether infected or not, Covid-19 and the associated preventive measures have fundamentally changed our social and professional working practices. Businesses have adopted and implemented alternative ways of working and many have

downsized by furloughing their workforce. Employers have two primary considerations at this time – a duty of care to their staff, and a duty of care to their shareholders and customers. BUSINESS IMPACT ASSESSMENT The first step when responding to employee absenteeism and planning business recovery is to undertake or refresh a business impact assessment (BIA). This is a systematic process that enables an organisation to evaluate its critical functions (e.g. services, products and processes). By identifying business-critical functions, organisations can focus their available employees to ensure that these are continued. Additionally, where functions have

been suspended, the BIA process highlights those that are most critical so they can be brought back online first. Crucially, the BIA process identifies which employee groups and what skillsets are essential to the delivery of critical functions. By doing this, it is possible to understand the impact a loss in personnel, across the business or in one specific area, may have on an organisation’s ability to deliver its critical functions and, equally, which employees must be brought back in to recover those functions. The BIA process also puts a timescale on any downtime (that is, how long the business can survive without this function). This is essential in enabling effective planning around employee shortages. Many businesses will already have BIA and business continuity procedures in place. However, refreshing these is crucial in ensuring contingency strategies are up to date and take into account the new operating environment of the business. The Ricardo eight-step business continuity process is an approach for conducting a BIA. Ricardo’s crisis management experts can support managers in the development of a BIA and in planning for recovery. RIPPLE EFFECTS Recovery, as with response, is not entirely in the hands of the business. Ongoing school closures, mandated social distancing and the closure of other businesses upon which staff rely, all impact the ability of businesses to begin planning recovery. Consider the pasta supply chain as an example: for the majority of UK supplies, wheat from Canada is shipped to Italy where it is turned into pasta. It is then shipped to the UK, transported to distribution centres and then sent to individual supermarkets. Disruption at any point in that chain can impact the recovery of manufacturers, distributors and supermarkets. Just as we are reliant on the relaxation of government control measures, we are also reliant on the recovery of our suppliers. This problem is exacerbated by the nature of today’s supply chains. Many are now ‘lean’, with just-in-time deliveries, which means organisations of all sizes are increasingly susceptible to even small disruptions in

HCB MONTHLY | MAY 2020

UP FRONT 07

and any subsequent waves of a pandemic. Ricardo’s Covid-19 business preparedness toolkit and crisis management experts will provide support in carrying out a robust supply chain assessment. Develop or update crisis management plans to ensure your organisation has command, control and coordination arrangements in place, and there are clear lines of escalation for issues potentially affecting the business’s core activities. Ensure a specific pandemic response plan is developed and put in action. This helps to ensure appropriate practices are adopted to mitigate the impacts of a pandemic and plan the businesses recovery from it.

their supply chain because they do not have contingency stock. As the world grows ever more interconnected, companies of all sizes are increasingly reliant on global supply chains. Consequently, businesses are highly vulnerable to pandemics. The complexity of global supply chains means that, when the recovery phase begins, there is a reasonable chance that the pandemic will still be affecting a business’s supply chain because of ongoing restrictions in other countries. In addition, the potential of additional waves of this pandemic may further interrupt the production and transport of goods and the provision of services. Understanding your supply chain and identifying alternative suppliers and products that can be used are excellent ways of ensuring the business is prepared for and can recover from a pandemic. Thus, a robust supply chain assessment is an integral part of pandemic response planning. WHAT TO DO NOW The Ricardo eight-step process, which forms part of the Covid-19 business preparedness toolkit, guides businesses through the BIA and supply chain assessment processes, and helps

 PLANNING FOR BUSINESS CONTINUITY AND RECOVERY DURING A PANDEMIC IS DIFFICULT BUT, RICARDO SAYS, ESSENTIAL. IT OFFERS A STRUCTURED PROGRAMME TO HELP BUSINESSES PUT SUCH PLANS IN PLACE AND INTO ACTION

create a business continuity plan. In addition to this, organisations should consider a specific crisis management and pandemic response plan – templates for creating this are included as part of the preparedness toolkit. A crisis management and pandemic response plan will outline command, control, coordination and communication arrangements, and provide clear structures and processes to deliver an efficient and effective recovery. During the response and recovery phases of a pandemic, these structures will be essential for coordinating activities, and enable the continuity and recovery of critical services. Now is the time to ensure your business has an up-to-date BIA with a clear understanding of your key products and services, and the processes that underpin them. This is essential for an ongoing response, but is also crucial for the recovery from an outbreak. Building on the BIA, ensure that your organisation has a well-developed and up-to-date business continuity plan (BCP), which includes strategies for maintaining critical services and bringing others back online. Undertake or update your supply chain assessment so that your organisation has a

HELP FROM RICARDO To provide support to organisations of all sizes, Ricardo’s business continuity specialists have developed an easy-to-use toolkit that can be used to create a BCP. The Covid-19 business preparedness toolkit provides: - The Ricardo eight-step process for creating a BIA and a BCP specifically for use during pandemics - Pre-recorded presentations that guide the user through the Ricardo eight-step process to complete a pandemic BCP - Telephone support throughout the process - A review of the draft and final BCP by one of its consultants - The option to add more customised support as you work through the BCP and pandemic response plan - The option to add a virtual exercise to test the final BCP - The option to request bespoke consultancy services. Ricardo’s crisis experts are also available to conduct crisis management and business continuity health checks. These will help you to measure your crisis readiness and, more importantly, identify and address gaps within it. For those having no plans or procedures in

clear understanding of its supply chain and, where required, can put contingency measures in place for key suppliers. The assessment should include real-time information on the current status of suppliers and clearly convey the risks in terms of the geographic location of suppliers, and their vulnerability to first

place, Ricardo’s specialists can work with you to develop bespoke business continuity and crisis solutions. Now is the time to review and enhance your preparedness. For more information, contact Ricardo by email at enquiry-ee@ricardo.com or visit the website at ee.ricardo.com/crisis-management.

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LET’S WORK TOGETHER

OPEN DOORS All GCC countries have consented to the

its members are urging regulators to speed up the full implementation of the TFA during this crucial time. Dr Abdulwahab Al-Sadoun, GPCA secretary general, says: “In the current crisis, the role of the chemical industry in ensuring the steady and reliable supply of vital raw materials and products has never been more pronounced. As medical facilities in the region are starting to feel the strain from the pandemic, businesses are continuing to manufacture, in difficult circumstances, the various tools, safety equipment and personal protective equipment such as sterile gloves, masks, hand sanitisers and protective clothing urgently needed to protect the health and safety of people and medical personnel. “At the same time, we depend on FMCG companies to continue to ensure the supply of items such as cleaning products as well as packaged food and beverages,” Dr Al-Sadoun adds. “The GCC chemicals industry is safeguarding the supply of raw materials to these sectors and reducing or even removing related bureaucratic hurdles will help secure their timely supply. Eliminating tariffs on these essential products will also reduce the costs on medical facilities and GCC consumers who are already under financial strain.” Mutlaq H Al-Morished, chairman of GPCA’s International Trade Committee and CEO of Tasnee, adds: “The Covid-19 pandemic is a global crisis that is impacting not only our health and wellbeing but also trade, businesses and livelihoods in the Arabian Gulf region and globally. It is imperative that no efforts are spared to secure the robustness of the medical infrastructure within the Arabian Gulf region, while also maintaining a stable socioeconomic environment. “With the chemical industry supporting

World Trade Organisation’s (WTO) Trade Facilitation Agreement (TFA) that aims to simplify, modernise and harmonise import and export procedures and processes. As the rapid spread of the Covid-19 pandemic amplifies the need for international cooperation and the removal of trade barriers, GPCA and

critical value chains during these difficult times, GCC regulators need to deem the chemical and petrochemical industry as critical infrastructure and ensure they are not subjected to forced shutdowns in order to tackle the pandemic.” www.gpca.org.ae

CORONAVIRUS • AS THE COVID-19 PANDEMIC SPREADS AROUND THE WORLD, GPCA IS CALLING FOR INTERNATIONAL ACTION TO KEEP ESSENTIAL SUPPLIES MOVING TO THOSE IN NEED THE GULF PETROCHEMICALS and Chemicals Association (GPCA) is urging global governments and international legislators to work closely together to ensure the uninterrupted supply of raw materials used for the manufacture of medical and hygiene equipment that are absolutely crucial to fighting the Covid-19 pandemic. Despite facing significant supply chain disruptions, the chemical industry in the Gulf Cooperation Council (GCC) countries has stepped up efforts to safeguard the supply of raw materials for the manufacture of products used to enable the hygiene, testing and treatment of patients affected by the virus, alongside personal protective equipment

 DR ABDULWAHAB AL-SADOUN: THE CHEMICAL INDUSTRY IS SAFEGUARDING SUPPLY

HCB MONTHLY | MAY 2020

for medical staff, as well as ensuring the continued manufacture of essential food packaging material. However, trade tariffs imposed prior to the start of the crisis and in the wake of growing global protectionism since mid-2018, combined with border closures in some countries, are proving it difficult for chemical raw materials to reach production plants across the world where finished products are made. GPCA and its members are calling for the reduction of tariffs and the removal of trade barriers and all bureaucratic hurdles currently in place that pose a significant challenge to the steady supply of chemical and petrochemical products used for the manufacture of specialised equipment and everyday products amid heightened global demand. GPCA’s call came at the start of April, days after world leaders pledged in a statement issued during a G20 Extraordinary Virtual Leaders’ Summit “to ensure the flow of vital medical supplies, critical agricultural products” and “resolve disruptions to the global supply chains”. The statement went on reiterate the G20’s commitment to a free, fair and stable trade and investment environment, and to keep markets open.

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LEARNING BY TRAINING By Arend van Campen

BUSINESS AS USUAL?

On LinkedIn and Twitter I have been following an avalanche of posts and replies to posts about how, if and when life will return to normal and business turns back to usual. Proponents of the draconian measures taken by our governments to halt the Coronavirus outbreak against opponents who claim that too much damage has already been done to the global economy, complain online. Let me first mourn those people whose lives the virus sped up to end perhaps sooner than expected. As a survivor of anaphylactic shock I know what it feels like when you can’t breathe any more: true agony and fear. Life however is unpredictable. One does not know when one is going to die, unless you choose to end it yourself. Fact is that every year more people die of suicide than of Coronavirus complications, and now, when I am writing this as an opponent against disproportionate lockdowns of entire countries with no regard to direct and indirect dire consequences, it is very irresponsible. Of course, I understand that political leaders are facing a dilemma, but enforcing homestay and social distancing by police and the military reeks of totalitarianism, which in the West should stir some resistance.

the kids today or tomorrow? At least in New Delhi people can see the Himalayan Mountains again because the smog disappeared. In Venice the water is now as clear as in Roman times. People have time to actually read a book again. But is business as we knew it coming back to haunt us and push us further towards climate catastrophe or should we see the Coronavirus as a hand which nature is offering us to stop the ransacking of our planet for monetary gain? As a systems thinker and a cybernetician, I believe this is the dramatic event that Dr Fritjof Capra spoke about as a chance to rethink life and start phasing out detrimental policies of unsustainable growth. Voices can be heard from left, right and centre, shouting that if we go back to business as usual the chances of worse pandemics and the inevitable destruction of all life, including ours, can’t be postponed much longer. It is as if people are waking up, seeing things better through clear skies and that cooperation, conversation and the exchange of information is the only way to survive. And you know what? Our common sense already understands this. We don’t have to research anything. Our innate programming already tells us what

But, outside of social media, very few have the courage to actually follow Henry David Thoreau’s call for civil disobedience. No, we are quite comfortable. Many will be receiving at least a part of their salary and civil servants and politicians will only lose their generous travel expenses. I am thinking about day labourers in India or Africa, to whom such measures mean the difference between life and death, choosing whether to feed

to do. Just listen to that inner voice. This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.

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PUT THE BRAKES ON

These are strange times for all of us, but perhaps strangest of all for bulk liquids storage terminal operators. Last year involved many in preparing for the incoming ‘IMO 2020’ regulation on the sulphur content of marine fuels, which involved repurposing storage tanks to cope with low-sulphur material and provide additional segregation. That came on top of pressure to handle more environmentally friendly fuels and the prospect of having to deal with the approaching energy transition. As such, engineering departments were busy planning all manner of jobs, not least in the US, where the surge in crude oil exports, as well as

phase, not least on the Texas coast. But reports in January this year of a new strain of Coronavirus emerging in China presaged a complete turnaround in plans. The extended Chinese New Year holiday brought its own problems for some in the supply chain – problems that are yet to unwind totally – but as the virus spread around the world, measures to combat it caused the same personnel issues for terminal operators as it did for all other businesses. That was, though, not the least of it. Restrictions on travel led to a sudden fall in demand for gasoline, diesel and jet fuel;

TIME TO RETHINK So, as we head towards the middle of 2020, storage terminal operators have had some time to consider the implications. Many have changed their plans, cutting back on capital expenditure until the current uncertainty eases, reducing dividend payments and waiting to see how the crisis plays out. That is not to say that they are not busy. The demand-led slump has left many holding high volumes of inventory for producers and traders, waiting for demand to return, although throughput of crude oil and refined products has slowed remarkably. There are some bright spots in the chemicals and foodstuffs sector, particularly for those products that act as feedstock in the pharmaceutical and healthcare supply chains. HCB’s annual review of expansion and construction activity is no shorter than in previous years but most of the projects and plans listed on the following pages were put in place before the Covid-19 pandemic struck. It is understood that many construction

LNG, ethane, ethylene and other gases, was encouraging a massive new construction

this came on top of what was already an over-supplied oil market and caused a collapse in global oil prices. Efforts by the major oil exporting countries to rein in production came too late and are probably too little to reinvigorate market sentiment, at least until demand returns to more normal levels.

projects already under way are continuing as planned, based as they are on long-standing contracts or the anticipation of a financial return, although construction firms are employing their own safe working practices. However, some other projects that have not yet passed to the construction phase are being

EXPANSIONS • IN THE YEAR OF CORONAVIRUS, TERMINAL OPERATORS’ PLANS HAVE BEEN THROWN INTO CHAOS. BUT A LOT OF WORK IS STILL GOING AHEAD

 OPERATORS IN THE US REMAIN BUSY INSTALLING NEW OIL EXPORT CAPACITY

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delayed and the information presented here may not be up to date. NORTH AMERICA Gibson Energy, Alberta Gibson Energy is to add two more 500,000-bbl crude oil tanks in the ‘Top of the Hill’ portion of its Hardisty terminal in Alberta, Canada. The new tanks, due for completion by the end of the year, will represent the fourth phase of construction on the site and will take total storage capacity up to 13.5m bbl (2.15m m³). Four new tanks of the same size were completed and put into service ahead of schedule this past November. Kinder Morgan/Pembina, British Columbia In the first half of 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. Permitting took longer than anticipated, pushing the completion date back to March 2021. In December last year, the company sold its 70 per cent holding in Kinder Morgan Canada to Pembina Pipeline Corp, in exchange for Pembina shares. Pembina has not yet said whether it will go ahead with the work at Vancouver Wharves and it is not listed among its investment projects for 2020. However, Pembina is proceeding with construction of its propane export terminal at Prince Rupert, British Columbia, which is expected to be in service early in the second half of this year. It has also announced a second phase of construction that will take export capacity up to some 40,000 bpd by the first half of 2023, subject to regulatory and environmental approvals.

RIPET is a joint venture between AltaGas and Royal Vopak and the first dedicated propane export facility in Canada. “We are very excited about this important milestone in our good and strategic partnership with AltaGas,” said Eelco Hoekstra, CEO of Vopak, at the opening of the facility. “AltaGas is a well-respected Canadian company with experience in developing energy projects, while storage and handling of gas is an important strategic focus area for Vopak. This export facility opens market access for western Canadian producers to Asia, a premium market for propane.” NuStar, California NuStar Energy is in the middle of a widespread project to improve biofuels handling at its West Coast terminals. A total of 93,000 bbl of tankage at the terminal in Portland, Oregon has already been converted to handle biodiesel and renewable diesels, and the Selby terminal in California can now load renewable diesel into tank trucks. Conversion work for the same products has already been partly finished at the Stockton and Wilmington terminals in California. By the end of this year, NuStar will covert

another 73,000 bbl of tankage at Stockton to handle renewable diesel and to allow the handling of the product at all 15 rail spots. Early next year, another 151,000 bbl of tankage is to be converted and a new connection to offload ethanol from rail cars will be put into service. Ongoing work to reconfigure the dock at Wilmington to enhance transfer rates is due to finish in mid-2023. Kinder Morgan, Illinois Construction continues on an expansion of Kinder Morgan’s Argo ethanol hub. The $19m project, which spans both the Argo and Chicago Liquids facilities, includes 105,000 bbl of additional ethanol storage capacity and enhancements to the system’s rail loading, rail unloading and barge loading capabilities. Completion is expected in third quarter 2020. Stolthaven, Louisiana Stolthaven Terminals is adding 47,700 m³ of new capacity at its Louisiana facility. The new tankage is due to enter into service in two phases over the course of this year. »

RIPET, British Columbia The Ridley Island Propane Export Terminal (RIPET) in British Columbia, Canada formally opened for business in May 2019; the first shipment departed the terminal bound for Asia.

 THE WEST COAST OF CANADA IS THE FOCUS OF INTEREST FOR EXPORT-RELATED PROJECTS

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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 the Cushing hub 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. In August 2019 Tallgrass put the new Grasslands Terminal in Platteville, Colorado into service. The 300,000-bbl (48,000-m³) facility connects to an extension of the Pony Express pipeline system. Bluewing, Texas Bluewing Midstream has carried out a 330,000-bbl expansion of its refined products terminal in Brownsville, Texas. Completion of the work, the second phase of construction at the site, took total capacity up to some 1.3m bbl (207,000 m³). A further 1.6m-bbl build-out is also under development. Buckeye, Texas Buckeye Partners is continuing with construction of the South Texas Gateway

Terminal in Corpus Christi, due for commercial startup in the third quarter, in partnership with Phillips 66, which has a 25 per cent interest in the facility. The export terminal with have two deepwater docks, up to 8.5m bbl (1.35m m³) of storage capacity and throughput capacity of up to 800,000 bpd. Contanda, Texas Contanda is building 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.” 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.

Meanwhile, Contanda has recently expanded its existing facilities in Sioux City, Iowa, with 20,000 bbl new capacity brought onstream in late 2019, and Stockton, California, where 28,000 bbl of new tankage was completed in the first quarter of 2020. Enbridge, Texas Enbridge has withdrawn its application for a deepwater port licence for the proposed Texas COLT offshore oil export facility. The move follows Enbridge’s agreement to partner with Enterprise Products Partners in its planned SPOT deepwater crude oil export project (see below). Enbridge is proceeding with its Jones Creek crude oil storage terminal project in Brazoria county, Texas, which could have up to 15m bbl (2.4m m³) of tank capacity for crude oil and will be linked via the Seaway Pipeline system to Gulf Coast refineries and oil production basins across the US. Enterprise, Texas Enterprise Products Partners and Navigator Holdings began construction of their jointventure ethylene export terminal, located at Enterprise’s existing Morgan’s Point terminal complex on the Houston Ship Channel, in second quarter 2018. The first cargo of ethylene was lifted from the terminal in January 2020. The terminal has refrigerated storage for 66m lb (30,000 tonnes) of ethylene and is designed to handle up to 1m tonnes per year. “The opening of the jointly owned ethylene export terminal represents the beginning of an expansion of the export of valuable intermediate petrochemical gas products including ethylene and propylene,” said David Butters, executive chairman of Navigator Gas, at the time of the opening. “We expect this trend of exporting intermediate petrochemical gases to accelerate, benefiting our specialised tankers. Furthermore, we are working on the development of domestic and international infrastructure projects that will facilitate this important trend.” »

 BLUEWING IS CONCENTRATING IN BUILDING OUT ITS TERMINAL IN BROWNSVILLE

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Enterprise Products Partners has also announced three expansion projects to enhance export capacity for LPG, polymer-grade propylene and crude oil from its Enterprise Hydrocarbon Terminal on the Houston Ship Channel. The work, due for completion this year, will include new refrigerated storage capacity for propylene and an eighth dock to load crude onto Suezmax tankers and will expand aggregate loading capacity by some 1.3m bpd. “Our integrated midstream system, including our Houston Ship Channel terminal, is providing Texas products with access to the highest value markets, including international markets,” says AJ ‘Jim’ Teague, CEO of Enterprise’s general partner. Enterprise Products Partners has signed a long-term agreement with Chevron USA that will support development of Enterprise’s Sea Port Oil Terminal (SPOT), an offshore crude oil loading facility planned for construction some 30 nm off Brazoria County, Texas in 115 feet of water. SPOT will allow the loading of VLCCs at a rate of some 2m bbl per day. At the end of 2019 Enterprise signed a letter of intent with Enbridge to take part in the SPOT project. “We are very pleased to work with Enbridge

 MODA INGLESIDE ENERGY CENTER IS IN THE MIDST OF A MAJOR EXPANSION

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to jointly develop a deepwater port in the Gulf of Mexico to support growing exports of US crude oil,” said Teague. “We value Enbridge’s expertise and resources as we focus our collective commercial development efforts on making the SPOT project a reality.”

docks, one ship dock and pipeline connections. The work also enhances gasoline blending capabilities at the site. Work at Corpus Christi concentrated on additional unit train loading capacity, although HEP notes that it has land available for expansion of storage capacity.

EPIC, Texas EPIC Crude Holdings loaded the first crude oil cargo from its IGC marine terminal in the inner harbour of the Corpus Christi Ship Channel this past December. The terminal, formerly the International Grain Port, was repurposed by EPIC in June 2019 to act as a crude terminal while a larger facility is under construction. IGC can handle tankers of up to Aframax size and load at a rate of 20,000 bbl/hour; the East Dock facility, a greenfield project, will be able to handle Suezmax tankers with a loading capacity of 40,000 bbl/hour and is expected to commence operations in the third quarter. Both facilities will receive crude via a new pipeline from Orla, Texas to Corpus Christi, servicing the Delaware, Midland and Eagle Ford basins.

Kinder Morgan, Texas Kinder Morgan last August announced a $170m investment in a series of projects to increase efficiency, add product liquidity and enhance blending capabilities at its Pasadena and Galena Park terminals on the Houston Ship Channel. The work focuses on butane blending at both sites, MTBE blending at Pasadena, and new inbound pipeline connections. The work at Pasadena, due for completion in second quarter 2020, is supported by a long-term agreement with a major refiner for approximately 2.0m bbl (318,000 m³) of refined petroleum products storage capacity at the terminal. A $22m upgrade of the joint-venture Battleground Oil Specialty Terminal (Bostco) on the Houston Ship Channel is also underway. The upgrade will add piping to allow for segregation of high- and low-sulphur fuel oils and is expected in service by the end of the year.

Howard Energy, Texas Howard Energy Partners (HEP) has completed expansion work on its Port Arthur and Corpus Christi bulk liquids terminals, increasing its Gulf Coast storage capacity to 2.6m bbl (413,000 m³). At Port Arthur, HEP added 12 new tanks, four pressurised bullets for butane, two barge

LBC, Texas LBC Freeport Terminal has completed construction of a 100,000-m³ terminal adjacent to MEGlobal’s monoethylene glycol

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manufacturing plant at Oyster Creek in Freeport. The first cargo of diethylene glycol arrived at the site in August 2019. LBC says the terminal, which is an integrated part of MEGlobal’s supply chain, is equipped with a range of tanks in sizes from 320 m³ to 26,000 m³. Magellan, Texas Magellan Midstream Partners brought new dock facilities at the Galena Park terminal in Texas into operation in August 2019, increasing loading capacity to 750,000 bpd. A second phase of construction brought an additional dock and pipeline infrastructure into service in December along with half of another 4m bbl (635,000 m³) of tank capacity. Full operation of the latest expansion followed early in 2020. The Seabrook facility, a joint venture with LBC Tank Terminals, brought 800,000 bbl (127,000 m³) of new tankage into operation early in 2020, with new dock capabilities due to come online in mid-2020. Work is now progressing on a further 750,000-bbl expansion due to enter into service early in 2021. Moda, Texas Moda Midstream brought 2.4m bbl (380,000 m³) of new tankage online at the Moda Ingleside Energy Center (MIEC) in Texas in November 2019, the first part of a 10.0m-bbl (1.6m m³) expansion, which was due to be completed by the end of the year. Throughput capacity is also being enhanced by dredging work in the Corpus Christi Channel and dock work, which will allow Suezmax and very large crude carriers (VLCCs) to call; in April 2020 the US Army Corps of Engineers awarded a contract for the improvement project. Moda has also recently brought additional tankage into service at the nearby Taft terminal, which provides pipeline connections between MIEC and other crude oil systems. NuStar, Texas NuStar Energy is to build 600,000 bbl of new tank storage at its Corpus Christi North Beach

 ABOVE: PHILLIPS 66 CONTINUES TO EXPAND IT BEAUMONT TERMINAL

terminal as part of a long-term agreement with Trafigura to expand export capacity for South Texas crude oil. The expansion, due for completion in the second quarter of this year, will raise total capacity at the terminal to 3.9m bbl (620,000 m³), of which 1.3m bbl will be devoted to Trafigura. Odfjell, Texas Odfjell Terminals (Houston) is to provide bulk liquid terminal services for a new acrylonitrile styrene acrylate plant being built by Ineos Styrolution at its existing complex in Bayport, Texas. Odfjell’s responsibilities will include the receipt, storage and pipeline transfer of butyl acrylate and acrylonitrile feedstocks, using Odjell’s nearby bulk liquids terminal as the initial receiving point. The new Ineos unit is due to be commissioned in 2021.

Texas Terminal, to develop an offshore VLCC loading facility some 21 nm east of Corpus Christi for the export of crude oil. The plan is to install two single-point mooring buoys, subject to a final investment decision expected later this year once permitting has been completed. As part of the move, Trafigura has withdrawn its application to develop the Texas Gulf Terminals deepwater port facility, lodged with MarAd in July 2018.

Phillips 66, Texas Phillips 66 has added a further 2.2m bbl (350,000 m³) of capacity at its Beaumont crude

Pin Oak, Texas Pin Oak Corpus Christi, the former Gravity Midstream terminal acquired in early 2019, has commissioned a new oil dock developed in partnership with the Port of Corpus Christi Authority. The first vessel was received at the dock in April 2020, following the laying of nine pipelines under the ship channel. The new dock can accommodate Suezmax tankers, whereas existing facilities were only large enough for Aframax vessels, and can load crude oil at a rate in excess of 40,000 bbl/hour.

oil terminal, taking total capacity at the site to 16.8m bbl (2.67m m³). Work is currently underway to expand dock capacity to allow loading of up to 800,000 bpd, due to complete in the third quarter. Phillips 66 and Trafigura Corp have established a 50/50 joint venture, Bluewater

“We set out on this course roughly two years ago to execute on a significant capital development program in conjunction with the Port of Corpus Christi to create a world class multi-modal terminal company,” said Corey Leonard, CEO of Pin Oak. “Bringing Oil Dock 14 online for Suezmax class vessels is a key »

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agreement covers half of the planned 1.48m bbl (235,000 m³) 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.

component of our strategy, and this week’s achievement marks a significant milestone in our efforts to become the premier terminal and logistics company in the South Texas market.” Pin Oak is also planning to expand capacity at the terminal from 737,500 bbl (117,250 m³) to around 2.75m bbl (440,000 m³). Pin Oak Terminals started construction work this past August on 1.7m bbl (270,000 m³) of crude oil tankage at its nearby Taft terminal, following agreement to connect to two pipelines that will supply crude from the Permian, Eagle Ford, Bakken, DG and Niobrara basins. Vopak, Texas Vopak is building 33,000 m³ of additional tankage at its Deer Park chemical terminal, with completion due in mid-2021. It has also started work on the Vopak Moda Houston terminal, a 50/50 joint venture with Moda Midstream, also located on the Houston Ship Channel in Deer Park. The first phase involves construction of 46,000 m³ of various gas tanks and a new jetty for the storage and handling of chemical gases, due to enter into service in phases between late 2020 and second half 2021. All the new capacity has been fully rented out under long-term contracts. Vopak has also been selected by Gulf Coast Growth Ventures (GCGV), the ExxonMobil/

 OILTANKING ANTWERP GAS TERMINAL IS BUILDING A NEW PROPANE TANK FOR BOREALIS

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Sabic joint venture, to design, build, own and operate a new industrial terminal at Corpus Christi, Texas. The terminal, due onstream in 2022 with 130,000 m³ capacity, will serve GCGV’s new 1.8m tpa ethane cracker. Eelco Hoekstra, Vopak CEO, says: “We’re very excited to support GCGV with this major industrial development in the US. This new terminal fits well into our growth strategy for industrial terminals.” LATIN AMERICA Vopak, Brazil Vopak completed a major expansion of its wholly owned terminal in Alemoa in late 2019, adding 106,000 m³ of tank capacity for chemicals and oil products and taking total capacity to nearly 280,000 m³. Sempra, Mexico Sempra Energy’s Mexican subsidiary Infraestructura Energética Nova (IEnova) 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

CLH, 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”. Vopak, Mexico Vopak is undertaking a 79,000-m³ expansion of its Veracruz terminal to improve petroleum product throughput. Vopak notes 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 has also announced a 40,000-m³ expansion of its Altamira terminal to handle growing volumes of chemical imports. due for completion in late 2021. Vopak, Panama Vopak’s new wholly owned petroleum products terminal in Bahía las Minas on the Atlantic coast in Panama opened for business early in 2019 with an initial capacity of 120,000 m³. A further 200,000 m³ came onstream in phases over the course of the year with another 40,000 m³ due to be added in 2020. The facility largely handles bunker fuels, fuel oil and clean products and can handle vessels of up to 80,000 dwt. »

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NORTHERN EUROPE Noord Natie Odfjell, Belgium Work is continuing to build out the Noord Natie Odfjell terminal in Antwerp. Following the completion of 32,700 m³ of new stainless steel tankage in 2018, another fully automated tank pit with 12,700 m³ of capacity is expected in service by mid-2020 and further development of 45,000 m³ is possible in 2022. It has also been working on a new block train facility. 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, Belgium 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 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. SEA-MOL, Belgium MOL Chemical Tankers and SEA-Invest last year 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. 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. Standic, Belgium Standic has started work on a new storage terminal in Antwerp with an initial capacity of 93,000 m³. The first piles were dug in February this year. The €200m project, due to open in early 2021, will be designed to handle a wide range of chemicals in tanks varying in size from 500 to 3,500 m³. There is the potential to expand the site to as much as 230,000 m³. “The Port of Antwerp is known as one of the largest maritime clusters in the world, which is why we chose it for our expansion,” says Ronald Ooms, managing director of Hametha, Standic’s parent company. “We aim to build on our success with chemical storage and further expand it. In Antwerp we will be able to further develop in the niche market of more specialised chemicals and serve our customers from all over the world.” Vesta, Belgium Vesta Terminals has announced a 150,000-m³

expansion of its Antwerp terminal. It plans to build five new 30,000-m³ tanks, specifically to handle jet fuel, and connections to the Central European Pipeline System (CEPS) to provide links to most major airports in north-west Europe. Construction is due to begin in first quarter 2021 with completion scheduled for 2022. Vopak, Belgium Vopak is to add 50,000 m³ of new tankage for chemicals at the Linkeroever terminal in Antwerp, with completion scheduled for third quarter 2021. Bladt, Denmark Bladt Industries has been selected by the Port of Frederikshavn to build a new oil terminal. The facility will comprise 11 storage tanks with an aggregate storage of 74,400 m³ and will mainly handle marine fuels and wastewater for Stena Oil, which will operate the site. Commissioning is due by end 2020. ATLHA, Germany ATLHA Terminals is progressing with construction of a 75,000-m³ greenfield terminal in Duisburg. Due to start operations in mid-2020, the site will consist of 12 tanks and is designed to provide storage for distillates, gasoline and gasoline components. It will be equipped with truck loading racks, rail tank loading/discharge positions and a 135-metre jetty, which will allow ship-to-ship transfers. Alpha, Netherlands 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, Netherlands 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 2022. The NWB site handles ethanol, both for foodgrade and biofuel applications. GPS, Netherlands Global Petro Storage (GPS) has expanded its

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Amsterdam terminal with six new storage tanks, taking capacity from 148,500 m³ to 282,500 m³ in 17 tanks. GPS says the move is part of its international programme of development and acquisitions, and has created a state-of-the-art facility for the storage and blending of gasoline, gasoline components and biofuels. Eric Arnold, CEO of GPS, says: “The opening of this facility is an important milestone for GPS. The investment in increased capacity and flexibility which are now built into the Amsterdam terminal reinforces GPS’s commitment to providing customers with world-class assets, while pursuing our global expansion plans.” GPS acquired the terminal, the former ‘Hydrocarbon Hotel’, from Varo Energy in December 2016, making its first move into the storage terminal business. GPS is based in Singapore and backed by funds managed by Blue Water Energy and White Deer Energy. As part of the expansion of the Amsterdam terminal, GPS is also developing a railcar handling facility adjacent to the terminal, to be able to offer a cost-effective and sustainable alternative to road and river transport for a range of energy and chemical commodities. The development complements the Port of Amsterdam’s sustainability strategy objectives, which endorse the importance of good rail connections to and from the Amsterdam port region. Hartel, Netherlands HES International is due to complete the new HES Hartel Tank Terminal in Rotterdam next year. HES is building 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. In April this year, Visser & Smit Hanab completed the subsea pipelines that will link the terminal to the BP refinery, which will be a major client. That work followed on from the completion by the Port of Rotterdam in December 2019 of a new 1,200-metre deepsea quay wall, a connection to the existing quay wall and a new

 ABOVE: WIBAX HAS BEEN WORKING ON ITS SWEDISH TERMINAL NETWORK

350-metre jetty with four berths. Soil and dredging works were also carried out. HES, Netherlands HES Botlek Tank Terminal has added 20,000 m³ of new tankage, primarily for biofuels, taking total capacity at the site to 510,000 m³. The six new 3,400-m³ tanks were fabricated by SJR Tank Construction and delivered to the site using a floating sheerlegs crane. LBC, Netherlands LBC Tank Terminals is expanding storage capacity at its Rotterdam facility, adding 70,000 m³ of new chemical tankage to take total capacity up to 180,000 m³. LBC says the investment is part of a multi-year programme to revamp and expand the Botlek site. As part of that, it is also to expand its newly built deepsea jetty with two new berths. The first piles were driven in March 2020. Work is expected to be complete in third quarter 2021. Vopak, Netherlands Vopak has two projects under way in its home territory. An additional 63,000 m³ of chemical tankage is being constructed at the Botlek site in Rotterdam, with completion scheduled for late 2020, and the Vlissingen LPG terminal is being expanded by 9,200 m³ to serve the local market for LPG and chemical gases, with completion due by mid-2020. Wibax, Sweden Wibax last year completed a $2.7m remodelling of its Mälmo terminal in Sweden. The project

expanded capacity to 13,300 m³, diversified the range of products handled and improved safety features. It also added a new heating system, interior anti-corrosion paintwork, isolation of certain tanks and new, safer loading facilities. Wibax acquired the Malmö facility in 2014 and it is its southernmost location. Wibax completed construction of a new double-skin tank at its Norrköping terminal at the start of 2020. The tank, which can hold up to 10,000 tonnes of liquid chemicals, is designed to contain any product in case of a leak in the inner tank shell. The tank cost some SKr 21m (€2m). Wibax has also announced plans to build two new distribution terminals in Skelleftehamn in northern Sweden at a cost of SKr 15m (€1.4m). The new terminals will be sited near to the company’s existing facilities in Skellefteå and double storage capacity in the area to 177,000 m³ across 44 storage tanks. Inter, UK Inter Terminals concluded a multi-million pound infrastructure upgrade programme at its Grays terminal earlier this year. Its two jetties were improved to allow tankers of up to 40,000 dwt to berth, new marine loading arms and piping were installed to allow faster discharge of product, and road loading facilities were also improved. Stolthaven, UK Stolthaven Terminals completed a 1,000-m³ expansion of its Dagenham terminal in fourth quarter 2019, following a 750-m³ addition in the first half of the year. »

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SOUTHERN EUROPE ATT, Croatia Adriatic Tank Terminal, a joint venture between VTTI (70 per cent) and Energia Naturalis Group (ENNA), is engaged in phase two work at its terminal in Ploce, Croatia, that will take petroleum product storage capacity up from 110,000 m³ to 176,000 m³. A third phase has also started, which will add another 87,000 m³ and there are plans to add up to 60,000 m³ of LPG capacity. The partners are also developing a jetty to handle LR tankers. Terquimsa, Spain Vopak Terquimsa completed the second phase of the Buenavista projects at its terminal in Tarragona, Spain in the second quarter of 2019, adding 27,500 m³ of new chemical capacity and taking total tank capacity at Terquimsa’s network up to more than 430,000 m³. This latest expansion is designed to help the company meet the growing needs of its industrial clients located in the Tarragona chemical cluster. AFRICA Oiltanking, South Africa 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

HCB MONTHLY | MAY 2020

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. The terminal will have an ultimate storage capacity of 790,000 m³ and will cater to oil majors, independents and traders. Commissioning is planned for the end of this year. Oiltanking MOGS Saldanha, a joint venture between Oiltanking, MOGS and Industrial Development Corp of South Africa, commissioned its new crude oil receiving terminal in April 2020. The terminal (above), located in Saldanha Bay, is connected to an existing jetty that can handle VLCCs. In the first phase of development, nine tanks were built with a total capacity of 9.9m bbl (1.6m m³); further work is continuing that will see more tanks come into service in the third quarter, while there is space available to increase the facility to 13.2m bbl (2.1m m³) if market conditions demand it. Vopak, South Africa 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 mid-2020, subject to final conditions. In addition, 130,000 m³ of new tankage is planned for the Durban oil product terminal, again due for commissioning in mid-year.

MIDDLE EAST NIOC, Iran The National Iranian Oil Company last year 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. ACT, UAE Abu Dhabi Ports has signed a strategic agreement with Arabian Chemical Terminals (ACT) for the development of a greenfield bulk liquids storage terminal at the deepwater Khalifa Port. The terminal, the first commercial facility in Abu Dhabi, will be developed in two phases, the first scheduled for commissioning in the second half of 2022 with 44 tanks of 1,250 tonnes and 3,000 tonnes capacity; a second phase will include larger tanks and gas spheres. GPS, UAE GPS Innova, a joint venture between Global Petro Storage, Innova Refining and Chemie Tech, is due to complete its greenfield bulk liquids terminal in the port of Hamriyah this year. The terminal will offer capacity for trading, imports, bunkering and the reprocessing of waste oils. Construction began in October 2018. »

STORAGE TERMINALS

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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, which will improve reliability and flexibility at the terminal (pictured left).

SOUTH-EAST ASIA Vopak, Indonesia 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 mid-2020. Another 100,000 m³ of new capacity is also being added at the Jakarta facility, in which Vopak has a 49 per cent share, for completion in mid-2020. Dialog, Malaysia Phase three of the Pengerang Deepwater Terminals development in Malaysia got under way this past October after Dialog Group signed a long-term storage agreement with BP Singapore. This agreement will underpin construction of 430,000 m³ of tankage for clean products in what Dialog calls ‘Phase 3A’. The tanks are due to be completed in mid-2021. Dialog is already working on shared infrastructure and jetty facilities for Phase 3. GPS, Malaysia Global Petro Storage (GPS) is currently building a new 134,000-m³ LPG terminal in Port Klang, Malaysia, due in service early in 2021. This $300m project in being carried out in partnership with Equinor, which plans to use the terminal as a hub for the storage and blending of LPG grades. It will be equipped with a jetty capable of handling VLGCs and will store LPG in refrigerated tanks, though it will also be able to supply pressurised gas. GPS has reserved another plot of land at the port

HCB MONTHLY | MAY 2020

where it is planning to develop and LNG import and distribution terminal. Smart Crest, Malaysia The Johor Port Authority has signed a deal with Smart Crest to build a 1.0m-m³ oil products terminal in the Free Commercial Zone Tanjung Pelepas. The ‘Independent Petroleum Hub’ (IPH) will be equipped with 53 storage tanks, two jetties and five berths and will offer both oil storage and bunkering capacity. The project, which was originally mooted some 17 years ago, has the support of Malaysia’s transport ministry. It also replaces Smart Crest’s Asia Petroleum Hub project, announced in 2016. Stolthaven, Malaysia A 27,000-m³ expansion of the joint venture Stolthaven Westport terminal is due for completion later this year. Vopak, Vietnam Vopak completed a 20,000 m³ expansion of its wholly owned terminal in Dong Nai province in first quarter 2020. The facility now offers 68,200 m³ of tankage for chemicals and base oils.

Vopak, China Vopak has set up a joint venture with Shanghai Huayi Group and Guangxi Qinzhou Linhai Industrial, in which Vopak has a 51 per cent share, to build an industrial terminal to support chemical manufacturers in the Quinzhou Chemical Park in south-west China, which will have an initial capacity of 290,000 m³. Completion is expected in second quarter 2021. Vopak has also announced a 65,000-m³ expansion of its Caojing terminal in Shanghai to handle chemical gases. This industrial terminal serves the chemical plants located in the Shanghai Chemicals Industry Park (SCIP) and its adjacent areas. The additional storage capacity has been fully rented out under long-term contracts and is expected to be commissioned in the second quarter of 2022. Korea Energy Terminal, South Korea MOL Chemical Tankers, Korea National Oil Corp and SK Gas have formed a joint venture, Korea Energy Terminal, to build and operate a new bulk liquids terminal in Ulsan, South Korea. The partners envisage a facility with some 434,000 m³ of storage capacity for petroleum products, chemicals and natural gas, with commissioning scheduled for mid-2024. The cost of the new facility is put at some $530m. AUSTRALASIA Vopak, Australia Vopak has announced a 105,000 m³ expansion of its Sydney terminal to cater for rising demand for clean petroleum products and aviation fuels. The work is scheduled for completion in second quarter 2021.

NORTH ASIA Dragon Crown, China The third phase of construction at Dragon Crown Group’s Weifang Sime Darby terminal is currently underway and expected to be completed this year. This phase will add some

Stolthaven, New Zealand Stolthaven Terminals is adding some 5,600 m³ of new tankage at its facility in Wynyard. This will partially replace some older tankage that is being decommissioned after the end of a land lease.

STORAGE TERMINALS 23

ROYAL VOPAK HAS reported stable results for the first quarter of 2020, with group EBITDA of €200.2m representing an increase of €3m compared to the same period 2019 once the divestments of the Algeciras, Amsterdam and Hamburg terminals and the effects of currency movements are taken into account. The company says this reflects “resilient business performance”, including the effects of the work to convert tankage to handle IMO 2020-compliant bunker fuels. Indeed, net profit was hardly changed over the year, slipping slightly from €83.3m to

any operational impacts from the Covid-19 pandemic, with all its 66 terminals around the world working normally, although it has had an impact on its employees. “Our main focus is on the health of the people working for our company around the world and to limit the spread of the Coronavirus, to manage the impact on our business and to assess the impact on the economy and society,” Vopak says. On the other hand, Vopak also acknowledges that it is too early to assess the extent and nature of the full impact of the pandemic

BRIGHT SPOTS Consistent with performance over the past two years, Vopak’s Europe and Africa division witnessed weaker results, with revenues down from €153.8m a year ago to €126.6m, although this partly reflects the disposal of a number of terminal assets that did not fit into the company’s strategy. EBITDA was also down, falling from €78.4m to €60.7m, with operating profit in the Netherlands also off by 18.5 per cent at €48.0m. Results from the Asia & Middle East division were also down, with revenues falling from €84.5m to €74.9m and EBITDA down by €3.9m at €78.0m. Much of this decline was concentrated in Singapore following high levels of planned inspection and maintenance. Revenues and profits also slipped slightly in the China & North Asia division. The Americas division, conversely, reported improved figures, with revenues up 11.1 per cent at €84.0m and EBITDA up 25 per cent at €47.6m, following the opening of new tank capacity in Brazil, Mexico and Panama over the course of 2019. During the first quarter, 235,000 m³ of new capacity came onstream in Malaysia and Vietnam, while Vopak also announced a 65,000 m³ expansion of the Caojing terminal in Shanghai to serve the nearby Shanghai Chemicals Industry Park. Vopak is committed to continuing to invest to develop its network and, despite the market uncertainty, says it will be making capital investments of between €300m and €500m this year. Part of that will be going to the Vopak Moda Houston (VMH) terminal in Deer Park, a joint venture with Moda Midstream. Initial development work will include 46,000 m³ of gas tanks and a new jetty for the storage and handling of

€82.7m. Vopak reports that it has not seen

on future developments, including potential delays to projects under construction and general operating and market conditions, as well as currency movements. “Our focus in these circumstances is on the short-term delivery [of services] and protection of long-term value,” it says.

chemical gases. All this capacity has already been fully rented out under long-term contracts. The new terminal is expected to be commissioned in phases, starting late this year with completion scheduled for second half 2021. www.vopak.com

IN GOOD HEALTH RESULTS • VOPAK SAYS IT HAS SEEN LITTLE OPERATIONAL IMPACT FROM THE COVID-19 PANDEMIC AND IS STILL PLANNING TO INVEST TO GROW ITS GLOBAL TERMINAL PORTFOLIO

 THE PENGERANG TERMINAL COMPLEX IN MALAYSIA (ABOVE) IS ONE OF MANY MAJOR PROJECTS THAT VOPAK IS STILL PROGRESSING

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ESSENTIAL SERVICE ASSOCIATION • KATHRYN CLAY, PRESIDENT OF THE INTERNATIONAL LIQUID TERMINALS ASSOCIATION (ILTA), EXPLAINS HOW ILTA AND ITS MEMBERS ARE COPING WITH THE COVID-19 CRISIS

(EIA), the statistical arm of the US Energy Department, even expanded its weekly report to include estimates of US crude oil storage capacity utilisation. And the market itself began taking extraordinary action. Pipeline operator Enterprise Products Partners began offering two-way shipping along a crude oil pipeline connecting the Gulf Coast and storage terminals in Cushing, Oklahoma, in a move to give oil companies more storage options to cope with the global supply glut and rapidly filling storage stocks. And oil traders were storing record volumes of oil on ships as onshore storage filled.

THE COVID-19 PANDEMIC has put a lot of things into perspective, from the way we live and work to the meaning of health, family and community. It has also helped make evident the vital nature of liquids terminals. Liquids terminals serve as a critical logistics link in the fuel supply chain, allowing the ultimate consumer to access products such as gasoline, diesel, chemicals and liquid foods. Governments have deemed terminal workers – and many of the workers responsible for transporting products to and from terminals – essential employees. Some may ask why? The reason is simple, especially when

manufacture sterile surgical gowns, masks, the N95 respirators, IV lines and intubation equipment. All those products are made from petrochemicals, derived from oil and gas, and stored and transported through terminals. INTEREST IN STORAGE During the pandemic, terminals – particularly tank storage terminals – have become a focal point of the oil industry. With drivers heeding public health guidance to stay at home, gasoline demand plummeted. At the same time, producers, especially Russia and Saudi Arabia, flooded the market with crude oil. The

FIND SOLUTIONS On the operational side, the Covid-19 pandemic has presented numerous challenges for terminals. But liquids terminal operators found solutions to safely continue with their vital operations - and keep supplies flowing seamlessly - during the pandemic, even while they were taking precautions to protect workers and contractors.

viewed in light of a global health crisis. Without terminals, there is no way of ensuring adequate supplies of gasoline, diesel and jet fuel so that emergency supplies and food can be delivered by plane or truck and that emergency personnel can travel to work. Without terminals, we can’t

result was a dramatic drop in world oil prices and sharp increases in the amount of crude oil in storage. Market analysts, who in recent years gave only a passing nod to weekly storage inventory reports, began reporting on them in earnest. The Energy Information Administration

The industry is doing things it has never had to do – in some cases, full-service tank fill-up for tank trucks, limiting work to focus on critical tasks and outfitting all workers in full PPE – to ensure that the terminals can stay safe and open for business to continue their essential services.

HCB MONTHLY | MAY 2020

STORAGE TERMINALS

Among other things, ILTA members have taken the following actions to ensure that their personnel are protected, and operations continue safely: - Following government and Centers of Disease Control (CDC) recommendations for practicing personal hygiene and social distancing important for minimising the spread of Covid-19 - Following CDC and regulator guidance on healthy operations of terminals, including at ports and harbors and at truck loading racks - Developing and updating company plans to minimise health risks and continue operations safely - Staying in close contact with fellow terminal operators to exchange information on best practices for continued operations and worker safety during this challenge - Staying in close contact, either directly or through ILTA, with regulators and other federal, state and local government officials to exchange information, identify challenges and resolve issues to ensure continued safe operations, critical to Covid-19 response - Working with allied industries, like truck drivers and fuel distributors, either directly or through ILTA, to confront challenges presented during the pandemic to ensure safe, efficient operations and protect health of all employees and contractors. INTERNAL AFFAIRS The pandemic also presented challenges to ILTA as an organisation. And it forced us to find new ways to communicate and find solutions for our members. Among other things, ILTA began weekly terminal operator calls to allow terminal members to hear the latest updates on industry responses to Covid-19. These calls provide an opportunity to brief participants

 KATHRYN CLAY, ILTA PRESIDENT (RIGHT): THE PANDEMIC HAS FORCED ILTA TO FIND NEW WAYS TO COMMUNICATE WITH MEMBERS, WHO ARE WORKING HARD TO MEET THE CHALLENGES POSED BY COVID-19

on regulatory, Congressional and state activities, and operational issues. They also allow members to direct questions to the group on things like personal protective equipment availability and other worker safety issues. ILTA also set up two additional new ways to communicate with its members. Our Covid-19 Peer Exchange is an online platform to allow terminal company professionals to post questions, respond to posts from others, and to share availability of newly released documents, upcoming webinars, or other resources relevant to the tank terminal industry. ILTA also created a dedicated webpage on its site with links to government sites, industry pandemic preparedness plans and other resources. We’ve designed this page to make it easy to quickly access key resources, and we update it as new resources become available. ILTA remains in close contact with regulators and other federal, state and local government officials to exchange information, identify challenges and resolve issues to ensure continued safe operations, critical to Covid-19 response.

made the decision: “For many companies, current constraints are causing planned construction, inspection and maintenance work to be delayed until later this year, or even into early 2021. The new timing for our annual event will make sure terminal company decision-makers have the opportunity to see and purchase products and services they will need for that work.” Kip also pointed out that moving the dates allows ILTA members, working hard to meet the challenges of Covid-19, “to participate in the valuable information and educational opportunities presented during the conference”. More information about the conference and trade show is also available on the ILTA website. I’m extremely proud of ILTA’s members – and the entire terminal community – and all their workers for the important contribution they make to keep vital supplies flowing during extremely difficult times. I join in wishing all communities safety and health as the situation continues to evolve, and I hope to see you all in Houston in November. www.ilta.org

CONFERENCE POSTPONED Another major challenge was ILTA’s annual conference and trade show, the industry’s largest, originally slated for June. In mid-April ILTA opted to shift the dates to 16-18 November. We based this decision on what we have heard from our members and our exhibitors, and we’re confident this is the best way for ILTA to serve the industry during these unprecedented times. Safety is always a priority for our industry, and our decision to shift the event to later this year is guided by that. We know how important our annual event is to tank and terminal professionals and to the companies that provide them with products and services. We want our industry community to know that we are here for them. As ILTA chairman Kip Middendorf, who is also vice-president and managing director of Wolf Lake Terminals, noted when we

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NEWS BULLETIN

STORAGE TERMINALS

ACT TO BUILD IN ABU DHABI

Abu Dhabi Ports has signed a strategic agreement with Arabian Chemical Terminals (ACT) for the development of a greenfield bulk liquids storage terminal at the deepwater Khalifa Port. The terminal, the first commercial facility in Abu Dhabi, will be developed on a 50,000-m2 plot of land adjacent to a quay with 16 m water alongside, with an option on a further 150,000 m2 of land. It is envisaged that the terminal will be developed in two phases, the first scheduled for commissioning in the second half of 2022 with 44 tanks of 1,250 tonnes and 3,000 tonnes capacity; a second phase will include larger tanks and gas spheres. “Located between Abu Dhabi, Ruwais, and Dubai industries, the new liquid terminal will not only prosper as a result of its strategic location, but will be further bolstered by Khalifa Port’s multimodal connectivity with access to the sea and UAE’s extensive road and future GCC railway network,” says Rakan Alireza (above right), managing director of ACT. “In addition to supporting our overseas expansion strategy, the project will also provide the

HCB MONTHLY | MAY 2020

foundation for other potential terminal activities within the emirate of Abu Dhabi.” ACT is exploring further opportunities to expand its service offering in and around Khalifa Port, including the facilitation of bunkering services, drumming and tank container filling services, ADR trucking and distribution, and stevedoring services to support other liquid product transfers. arabianchemicalterminals .com www.adports.ae

a material impact on the execution of our process. This is clearly not the right environment to pursue and complete a major pan-European transaction, though we may revisit this process at a later date.” Inter reports that demand for storage capacity is currently at very high levels, with tank utilisation currently standing at some 95 per cent. www.interpipeline.com

INTER TERMINALS SALE ON HOLD

Odfjell Terminals US (OTUS) has secured a new five-year, $250m revolving credit facility that will be used to refinance existing debt and fund expansion plans. Odfjell SE, which owns 51 per cent of OTUS alongside Northleaf Capital Partners, said in its annual report that it expects Houston to be the focus of its investment in the near future. “This is an important milestone for our terminal portfolio in the US, as it positions the company to expand its terminal footprint in Houston, one of the strongest growth areas and key hubs for petrochemicals in the world,” says

Inter Pipeline Fund has halted the divestment of its European bulk liquids storage division, Inter Terminals. “Despite being at an advanced stage of this process, we have made the decision to suspend sale activities,” says Christian Bayle, Inter Pipeline’s president/CEO. “Europe, like the rest of the world, is urgently addressing the Covid-19 pandemic. All European countries we operate in have recently implemented sensible measures to greatly restrict travel and human contact. Potential purchasers of this business have been significantly affected which has had

ODFJELL GETS CASH FOR HOUSTON

STORAGE TERMINALS 27

CFO Terje Iversen. “The financing ensures that OTUS can embark on accretive growth opportunities and remain self-funded. We are also pleased to conclude attractive bank financing, from existing and new lenders, at a time of financial turmoil and consider this a testament to the strong outlook for the US terminals.” www.odfjell.com WIBAX EXPANDS TANKAGE

Wibax is to build two new distribution terminals in Skelleftehamn in northern Sweden at a cost of SKr 15m (€1.4m). The new terminals will be sited near to the company’s existing facilities in Skellefteå and double storage capacity in the area to 177,000 m3 across 44 storage tanks. “The goal of our terminals is to use them in conjunction with our vehicles to offer a unique logistics solution, close to our customers, allowing us to minimise the transportation of goods whilst maximising supply reliability,” explains Magnus Sundström, managing director of Wibax Logistics. wibax.com

14.16m tonnes. The fall in the trading of fuel oil between Russia and Singapore, which has often involved storage in Rotterdam, has continued, with Russian fuel oil exports now largely heading directly to the US for refining. Diesel exports also fell as supplies were diverted to the local bunkering market following the introduction of the ‘IMO 2020’ rule on sulphur emissions. Crude oil import volumes dropped by 8 per cent to 25.8m tonnes on the back of a stockbuild in late 2019. However, there was a 9.3 per cent increase in the volume of chemicals and biofuels handled at the port, to 8.31m tonnes; the Port says it is increasingly becoming a central logistics location for the distribution of these products in Europe. Overall throughput in the first quarter was down 9.3 per cent year-on-year at 112.4m tonnes, although container volumes increased once more to record levels. However, the current Covid-19 crisis is clouding expectations for the rest of this year, as CEO Allard Castelein says: “We are facing unprecedented disruptions and

the port of Rotterdam, as a vital process, intends to continue contributing to society. The impact of a decline in demand due to the corona crisis will become clear from April onwards. A 10 to 20 per cent drop in throughput volume on an annual basis would seem to be very likely. This will depend on how long the measures remain in place and on how quickly production and world trade recover.” www.portofrotterdam.com CRUDE INTO SALDANHA

Oiltanking MOGS Saldanha, a joint venture between Oiltanking, MOGS and Industrial Development Corp of South Africa, has commissioned its new crude oil receiving terminal in Saldanha Bay. The facility is connected to an existing jetty that can handle VLCCs. In the first phase of development, nine tanks were built with a total capacity of 9.9m bbl (1.6m m3); further work is continuing that could increase the size of the facility to 13.2m bbl (2.1m m3) if market conditions demand it. www.oiltanking.com

HARTEL ON TRACK

Visser & Smit Hanab has completed the subsea pipelines (right) that will link the new HES Hartel Tank Terminal in Rotterdam to the nearby BP refinery. The work was completed on time and within budget. The news comes hard on the heels of the completion by the Port of Rotterdam Authority of a new 1,200-metre deepsea quay wall, a connection to the existing quay wall and a new 350-metre jetty with four berths. Soil and dredging works were also carried out. The 1.3m-m3 terminal, which will be the first to be built according to the latest PGS 29 regulations in the Netherlands, is due to be completed next year. The terminal will be primarily used for the transhipment of petroleum products and biofuels. www.hesinternational.eu TRADE SLUMP AT ROTTERDAM

The Port of Rotterdam reports a sharp drop in liquid bulk throughput in the first quarter, with oil products volumes down by 32.8 per cent at

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COUNTING TANKS FLEETS • GROWTH IN THE GLOBAL TANK CONTAINER FLEET SLOWED LAST YEAR BUT THERE IS STILL INCREASING DEMAND, ACCORDING TO THE LATEST ANNUAL SURVEY FROM ITCO

grow, due largely to the successful conversion of certain cargoes that have historically been shipped in drums or in chemical tankers. China’s domestic market is also growing and tank container operations in inter-Asia – and especially south-east Asia – are developing strongly, ITCO says.

At the end of 2019, there were an estimated 652,350 tank containers in use around the world, an increase of just over 45,000 or 7.9 per cent compared to the start of the year. That represents a slight slowdown in fleet growth compared to the previous year, when more than 50,000 tanks were added. The International Tank Container Organisation (ITCO), from whose annual Global Fleet Report

new tanks manufactured in 2019, compared to 59,700 produced in 2018. That figure is, though, still high compared to the level of demand growth; it is apparent that the major manufacturers (mainly in China) are still running high levels of production to defend their market share and take advantage of relatively low prices for stainless steel. The industry is, though, reporting

A LOOK AT THE NUMBERS There are few surprises in the lists of tank manufacturers, operators and lessors contained in this year’s ITCO Global Fleet Report. Among the leading manufacturers, for example, CIMC still dominates, accounting for roughly half of all tank containers produced in 2019, and Nantong Tank Container has consolidated its position as the second largest manufacturer. However, outside China, South Africa’s Welfit Oddy continues to perform well, upping its output slightly last year and taking third position in

these figures are taken, also notes a slowdown in output from manufacturers, with 54,650

increasing demand in 2020 and HCB hears that some of those surplus tanks that had been bought by lessors but remained stacked at manufacturing sites are now finding work in the market. Indeed, ITCO notes in its fleet report that the market for tank containers continues to

the overall list. Among tank container operators, the only change in the top ten is the arrival of Eagletainer at number ten, overtaking VTG Tanktainer. The major operators’ owned and leased-in fleets have all grown gradually, giving a better indication of the change in

 STACKS OF NEWLY BUILT TANKS ARE GRADUALLY BEING ABSORBED INTO THE MARKET

HCB MONTHLY | MAY 2020

TANKS & LOGISTICS 29

the actual level of demand, with mostly steady expansion. Of the major companies, only Bertschi and US-based Intermodal Tank Transport have made a significant investment in new tanks over the past year. It is a different situation among the major tank container leasing companies, where

some have invested heavily in new tanks: Exsif Worldwide, which has the largest fleet among the lessors, expanded its fleet by 9.4 per cent last year to 64,000. The company is owned by Berkshire Hathaway through the Marmon Group, a holding company that, among a long list of industrial enterprises,

Global tank container fleet (at start of year)

2016

2017

2018

2019

2020

Operator fleets

329,080

342,500

365,000

381,750

418,500

Lessor fleets

201,750

215,265

245,000

286,000

304,615

Other fleets*

110,950

137,400

155,000

180,165

188,010

Total fleet

458,200

508,000

552,000

604,700

652,350

*shipper, military and other Source: ITCO

Tank container manufacturer output

2016

2017

2018

2019

22,000

27,000

Nantong Tank

5,800

8,500

Singamas

3,850

4,500

5,500

3,500

1,500

3,310

2,500

2,800

2,500

2,000

3,600

2,000

CIMC

JJAP CXIC Dalian CRRC Welfit Oddy

6,300

5,400

4,850

680

3,265

2,250

3,000

44,450

48,500

59,700

54,650

Van Hool Other manufacturers* Total *estimate Source: ITCO

also owns Union Tank Car. CS Leasing, backed by TCG and Maas Capital, has also taken advantage of the glut of new tanks, expanding its fleet by more than half to 15,500 units, following on from a similar rate of growth in 2018. Also making a significant move in the list is Peacock Container, following a restructuring of the company last year. TRAIN AGAIN As can be gauged from the lists, the majority of new tanks manufactured in 2019 were purchased by leasing companies. These often have the financial clout to take advantage of low prices to stock up ahead of anticipated demand growth in the future. In addition, this has led to a number of third- and fourth-party logistics providers entering the market, often with little or no experience or accredited infrastructure to support their growing tank fleets, ITCO says. In addition, the growing industry is attracting smaller players to enter the market with niche services in certain parts of the world. ITCO is concerned that such market entrants may also lack the expertise to operate tank containers safely, which could exacerbate the existing loss of expertise as older professionals in the industry retire. ITCO says that it is aware that one of the most important issues facing the tank container industry is how to ensure the successful development and education of a new generation of personnel coming along. “All ITCO members face the challenge of recruiting staff who can participate in the development of their business, introduce new ideas and technology, and ensure the long-term future of their companies,” the Organisation says. “It is an important aspect of ITCO’s role as an organisation representing the interests of its members to create an environment which can attract a new generation of professionals. Within this, ITCO has a responsibility to support its members with the tools to provide training and education.” »

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 STOLT TANK CONTAINERS HAS MAINTAINED ITS POSITION AS THE LARGEST OPERATOR FOLLOWING FURTHER ADDITIONS TO ITS FLEET

Major tank container operator fleets (start of year) 2017

2018

2019

2020

Stolt Tank Containers

35,100

35,395

39,156

40,500

Hoyer

31,750

32,958

33,881

34,700

NewPort

18,000

32,000

31,800

32,000

Bertschi

16,000

20,600

23,300

25,000

Bulkhaul

21,500

22,000

22,500

23,000

China Railway

15,380

20,879

Den Hartogh

18,930

19,500

20,000

Intermodal Tank

6,000

11,000

13,500

17,000

Interflow/TCS

7,200

11,000

11,683

11,820

Eagletainer

6,000

7,450

8,860

10,120

VTG Tanktainer

7,690

9,000

9,150

9,250

Suttons International

6,500

7,500

8,500

9,000

M&S Logistics

5,500

7,993

8,050

8,400

Source: ITCO

Major tank container lessor fleets (start of year) 2017

2018

2019

2020

Exsif Worldwide

46,400

52,000

58,500

64,000

Eurotainer

35,300

35,000

48,000

48,500

Seaco Global

44,400

42,000

43,000

42,000

Trifleet Leasing

13,520

14,192

16,100

17,784

2,400

5,200

10,120

15,500

CS Leasing Raffles Lease

8,400

11,500

13,240

15,100

12,250

13,500

12,500

1,000

2,000

9,200

9,800

9,500

TWS Tankcontainer

7,500

8,000

8,360

8,300

NRS Group

7,000

Peacock Container

2,500

3,900

6,250

Triton International GEM Containers Albatross Tank Leasing

Source: ITCO

HCB MONTHLY | MAY 2020

In its early days, ITCO worked with Erasmus University in Rotterdam to train a number of students and encourage them to enter the business but, as the centre of gravity of the entire sector has moved to China, it has more recently worked with Shanghai Maritime University (SMU) to offer practical training to students. As part of that effort, last year ITCO presented SMU with a 20-foot tank to use in its tank container training programme. The tank was provided by Exsif Worldwide with the assistance of Fort Vale Engineering, CIMC and Stolt Tank Depots. SMU’s programme also includes use of the ITCO e-learning course, developed in collaboration with Exis Technologies and which is also available to ITCO members to give their staff training in key aspects of the business. “The tank container industry has a huge responsibility within the bulk liquids supply chain,” ITCO says. “ITCO endeavours to ensure that its members have the correct tools to recruit a new generation of professionals who can be engaged in the process.” www.itco.be

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ALL ABOUT THE TANK TANK CONTAINERS • AN EXCELLENT SAFETY RECORD OVER NEARLY 50 YEARS OF INCREASING USE DOES NOT HAPPEN BY ACCIDENT AND, TT CLUB SAYS, THE LESSONS MUST BE HEEDED THE EXPLOSION AND fire aboard the containership MSC Flaminia in 2012 had a long-lasting impact on the chemical supply chain, ushering in new provisions for the transport of substances liable to autopolymerisation and highlighting the potentially enormous liability shouldered by shippers and their freight forwarders when offering such goods for transport. The incident also rang alarm bells in the insurance community, given the high liability that emerged. And, while tank containers have a long and enviable safety record, the fact that the fire started in two tank containers with divinyl benzene has challenged assumptions. Indeed, the International Tank Container Organisation (ITCO) has already raised the

issue of a lack of expertise among some shippers and tank container operators, given the loss of corporate memory over the years and also the spread of the business into new areas. The TT Club, a leading mutual insurer for the chemical supply chain, has also given more attention to the tank container sector and last year held seminars on the topic in order to help foster greater understanding of the tank container for those businesses new to the sector or active on the periphery. TT Club has now collaborated with a number of experts to produce new guidance on managing risks in the tank container supply chain, published as part of its StopLoss series of loss prevention guides. This new publication

is intended to be a practitioner’s good practice guide covering all stakeholders through the tank container transport chain, whether operating, filling, discharging, cleaning or handling tanks. Informed by typical incidents, the document is structured in such a way that it follows the natural chronology of the transport chain in order to provide ease of access. The publication incorporates several pieces of valuable operational reference material, with references to the applicable regulations, concluding with a 13-point checklist aimed at supporting consistent and successful outcomes for the tank container supply chain. EMERGING RISKS Through analysis of TT Club’s claims record, it has identified a number of common errors and misconceptions in the use of tank containers, which have the potential to result in the deterioration or total loss of the cargo they contain or damage to the equipment itself. TT Club’s new guidance begins with a recap on the development of the industry, from the first designs of 1969 through the development of the concept through the 1970s, up to the standard design that is common around the world. While take-up of the tank container was slow to start with, its robust design and durability have made it the safest, most cost-efficient, flexible and environmentally friendly way of transporting bulk liquids, including chemicals, around the globe. Shippers are increasingly recognising the versatility of the tank container and favouring its use over drums and parcel tankers, TT Club says. More recently, operators have increasingly been incorporating emerging technologies, including tracking solutions to provide greater transparency and improve operational efficiencies, dual-temperature control units, telematics units to assist with temperature control and to monitor and record cargo condition during transport, and ground-level controls to minimise the need for personnel to work on top of the tank. All of these make the business of maintaining the condition of the tank itself more complex.

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KEEP THE TANK WORKING TT Club’s guidance runs through the regulations covering construction, periodic testing and use of tank containers, including those specific to pressure vessels. It also looks at the selection of equipment in light of the cargo being shipped, with reference to the portable tank instructions found in the International Maritime Dangerous Goods (IMDG) Code and highlighting in particular those regulated substances to which portable tank instructions T23, T50 and T75 apply. The guidance then moves on to maintenance and testing. Even the newest and most sophisticated equipment requires maintenance, TT Club notes, and tanks are no exception. It is essential to keep tanks and their equipment in a sound state of repair to ensure the efficient operation of the tank. Indeed, the International Convention for Safe Containers, 1972 (CSC) requires operators to develop and operate a maintenance procedure that describes how the tank will be inspected, examined and maintained. The guidance also highlights paragraph 6.7.2.19 of the IMDG Code, which sets out the requirements under the 2.5-year periodic inspection and test. An important section of the TT Club guidance deals with corrosion. While the tanks of tank containers are usually manufactured of 304L or 316L austenitic stainless steel that is highly resistant to corrosion, certain cargoes – in particular corrosive substances with a chloride element – do present a risk. The guidance explains how and why corrosion can occur and how pitting corrosion can lead to serious problems. TANKS IN OPERATION The remainder of the TT Club guidance covers operational issues, beginning with the pre-trip inspection (PTI) and cleaning. The PTI is intended to ensure that the equipment is in a safe condition, in proper working order, fit for purpose and that the frame is in a safe

 THE MSC FLAMINIA EXPLOSION (OPPOSITE) HIGHLIGHTED THE NEED TO ENSURE PROPER USE OF TANK CONTAINERS AND THE NEED TO PROVIDE INFORMATION ALL ALONG THE SUPPLY CHAIN TO ENSURE CARGO SAFETY

condition and within the specification envelope. The PTI must be carried out before the tank is filled. The cleaning process is crucial to a tank’s proper condition and it is generally good practice to clean the tank as soon as possible after a cargo is discharged. TT Club warns that water used in the cleaning operation in some parts of the world may contain higher levels of chlorine or other impurities that can lead to damage. In addition, it says, it is important for the operator to exercise due diligence in the selection of the cleaning station: as well as the station’s ability to physically clean the tank, each stakeholder has a responsibility to ensure that the environment is sufficiently protected. The guidance goes on to consider the loading process and the regulations that govern the use of the tank, depending on the product involved. It also covers the

Other factors that may need to be considered are the use of surge plates or baffles to reduce free surface movement, the handling of temperature-sensitive cargoes, and the hot loading of cargoes that are solid at ambient temperatures. A section on in-transit instructions covers the IMDG Code requirement for a security plan, and the communication of relevant information along the supply chain, something that was highlighted in the court judgment in the MSC Flaminia case. The guidance enumerates some of the issues that pertain to the choice of service provider to undertake last-mile delivery before addressing re-heating, if necessary, and the discharge operation. It finishes with the actions that need to be taken in the event of an incident, depending on the nature of the cargo and any injuries to personnel, damage to the tank or impact on the environment

necessary placarding for tanks carrying regulated cargoes, the fitting of customs and security seals, and the completion of the Dangerous Goods Declaration, where required. The guidance also looks in some detail at the requirement for a safety data sheet (SDS).

that result. TT Club’s guidance, Managing Risk in the Tank Container Supply Chain, is available as a free download from its website at www.ttclub. com/fileadmin/uploads/tt-club/Documents/ Stop_Loss/TT_StopLoss_22_Tank_Containers_ WEB.pdf.

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SEE WHERE YOU ARE DIGITISATION • EFFECTIVE IMPLEMENTATION OF DIGITISED SYSTEMS RELIES ON STANDARDS. ECTA IS OFFERING A NEW GUIDELINE TO HELP THAT PROCESS IN THE CHEMICAL SUPPLY CHAIN OVER THE PAST few years, it has become increasingly apparent that one of the main barriers to the uptake of digitised systems within the chemical logistics sector has been the lack of commonly recognised standards. This lack has made it difficult for shippers and their logistics service partners (LSPs) to have the confidence to make investment decisions in the systems that are available to help them improve efficiency in the supply chain. Last year, a group of tank container operators

(ECTA) took up the baton and quickly attracted a number of other operators to take part in development work. Now, just a few months later, ECTA has published the outcome of discussions by a work group in a Best Practice Guideline: Transport Visibility within Bulk Chemicals. In its introduction to the Guideline, ECTA explains that track-andtrace systems were developed to improve on-time delivery, a historical cornerstone in the measurement of transport service provision;

in Europe decided that a common approach was necessary if acceptable standards were to be forthcoming; they also decided that this work should be undertaken under a neutral banner, if it was not to be seen as yet another standard that ‘belonged’ to a small group of operators. The European Chemical Transport Association

since 2000 and with the introduction of ERP systems and broader use of electronic data interchange (EDI), technologies have emerged that allow shippers and their LSPs to analyse, measure and investigate late deliveries. More recently, the emergence of cloud technologies and e-commerce services,

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analysing service performance after delivery is no longer good enough: customers, even in the chemical industry, now expect the same sort of visibility and service that they get from Amazon and other providers. There is a need for those in the supply chain to be able to think proactively and anticipate late deliveries; what is vital to achieve that is accurate visibility all through the supply chain, through frequent and reliable milestone messages and estimated time of arrival (ETA) and delivery (ETD) updates, especially when unexpected delays are occurring. BEST PRACTICE WHAT YOU PREACH To help this process, ECTA’s Guideline aims to provide a standard definition framework with transport milestone events and updates within a multimodal, door-to-door movement of chemicals. Once such milestone events are pre-defined and agreed by all of the supply chain actors, specific transport tracking and performance measurement reports can be established to answer questions such as: Will the truck be late at the final leg to the customer because the delivery appointment of the former rail leg was late? Should the LSPs pre-notify each other when a prenotification to the final customer is expected?

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Can the end customer obtain a regular tracking trail explaining where the shipment is and when it is expected to arrive? It is important to have this framework in place before companies start deploying individual telematics and truck/equipment tracking solutions. It forms the basis for a move towards transport visibility, interoperability and real-time information exchange across all logistics actors in the chemical supply chain. Having a standard framework means that there can be a streamlined communication flow that will help optimise inbound and outbound logistics, for the benefit of all players in the supply chain. “This Best Practice Guideline wants to create a collaborative framework so our chemical customers can be served better,” ECTA says. “To save costs, avoid re-work, improve customer service and avoid confusion along a chain of events within a door-to-door movement, ECTA recommends to exchange pre-defined, validated milestone messages and ETx updates between all supply chain actors involved instead of continuous sharing of GPS truck or load locations itself. Those signals are only a support to calculate especially the ETA dates and by themselves lack necessary additional information of driver resting hours, depot stops, ad-hoc planning changes etc.” BREAKING DOWN THE LANE Even in single-lane transports, there are some challenges that are often encountered, not least the variability in visibility between the various participants. In multi-lane transports, those challenges are multiplied, especially if a rail leg is involved, since few rail providers have the capability as yet to predict with any accuracy the ETA of a container at a terminal. In addition, ECTA says, “a scattered landscape” of supply chain actors often lacks connectivity, hampering the sharing of data in

 LEADING INTERMODAL OPERATORS IN EUROPE HAVE PUT THEIR MINDS TOGETHER UNDER THE ECTA BANNER TO DEFINE JUST WHAT INFORMATION IS NEEDED TO GIVE CONSIGNEES THE LEVEL OF RELIABILITY AND CONFIDENCE THEY CRAVE

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anything like real time; therefore, data does not reach the consignee in time. To ensure the effective and reliable exchange of milestone messages in real time means adapting system infrastructure and resources, using harmonised and industry-wide standards. A workable solution also needs to keep IT complexity under control and reassure data owners that they can collaborate securely. Furthermore, the milestone messages expected by shippers are not necessarily the same as those required by LSPs or receivers. ECTA’s Guideline carefully describes the milestone messages that are possible and required under several different transport scenarios, defining in each case the information that must be contained in each message. Those messages are for: booking confirmation, arrived at gate loading, checked out loading, dropped at first departure terminal, departed from first departure terminal, ready for pick-up at last arrival terminal, picked up at last arrival terminal, arrived at gate unloading, checked out unloading, ETA loading and ETA unloading. For each message there are nine elements required. The ECTA Guideline also includes an example XML message for a single milestone message, including additional optional elements. VOLATILITY IS NORMAL Chemical supply chains are under constant change and stresses caused by planned and unplanned upswings in transport demand, of which the Covid-19 crisis is just an extreme example. We do not have to dig too far into the past to find other recent examples of significant transport demand volatility: the

Rastatt rail closure, strikes in France or low water levels on the Rhine are just a few examples. Peter Devos, ECTA’s managing director, says: “Such unplanned changes seem to have become the new norm in transport and logistics and this new ECTA best practice guideline is a first, important step to prepare the path of digitisation all along the supply chain and among all service providers and actors. An increased level of transport visibility and a faster, more accurate exchange of ETA delivery information among all parties is the new, digital way to cope with these recurring demand fluctuations. “As logistics service providers we simply need to connect the physical and digital dots along the different milestone events and across the supply chain actors, while ensuring we have more consistent definitions to improve our communications and customer delivery predictability,” Devos adds. “While we all know this is a big multimodal transport challenge, this new ECTA Guideline is a great start and sets the supply chain visibility scene while coping with demand volatility as the new norm. “In addition, ECTA has decided to continue with the supply chain visibility work group and will extend the current group among its members as a further next step,” Devos concludes. Meanwhile, all parties are encouraged to read the newly defined ETA framework and begin thinking how to apply it to their operations. More information and a downloadable copy of the ECTA Guideline can be found at www.ecta.com/news/8844380.

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CLEAN AND CLEAR DIGITISATION • CHEMICAL SUPPLIERS ARE BOOSTING CUSTOMER SERVICE LEVELS BY MAKING DATA AVAILABLE IN REAL TIME. CLEARMETAL IS DOING ITS BIT TO HELP THEM

In 2014 they established ClearMetal as an IT start-up in San Francisco and spent three years developing a solution to turn bad data into good data. Their goal was to create high quality data from the masses of information available so that shippers could use it to make accurate decisions about planning and forecasting. That meant having accurate access to estimated time of arrival (ETA), estimated time of delivery (ETD) and sailing schedules. The algorithms that ClearMetal has developed use data provided by the shipping lines, combined with other data sources, including AIS and GPS information on vessel locations, data provided by ports and terminals, sailing schedules and other data, to create a big data ecosystem. All this data is digested and triangulated, using historical data, and passes through a cleaning process, to deliver good data to ClearMetal’s clients. That operation is contained in ClearMetal’s CDX (for Continuous Delivery Experience) platform, which is now in its second major release. CDX uses a continuous methodology that learns, adjusts, and drives constant improvement in delivery and experience for customers by using proprietary machine learning to cross-reference inputs and canonicalise supply chain data. This differentiated technology enables businesses to make highly intelligent inventory and customer decisions based on continuously live, trustworthy data, versus static approaches that focus on point-in-time views of assets in transport.

SHIPPERS EXPECT 24/7 visibility on the whereabouts of their goods in transit. Track-and-trace systems are nothing new and recent advances in digital technologies have made them even more effective

traditional tracking methods to gain accurate and dynamic visibility. That uncertainty about delivery times leads to inefficiencies in planning and scheduling and creates unnecessary work to keep customers happy.

TAKE IT TO THE MARKET “Accuracy of data is paramount,” says Thomas Kofler, recently appointed as vice-president, sales, EMEA at ClearMetal to grow the company’s business outside its North American base. The system’s predictions are now “far better than what

and widespread. But one part of the supply chain has always been ‘dark’ as far as real-time visibility is concerned: the maritime leg. Packaged goods are sent from the consignor to the port and loaded onto a vessel; once that vessel has left the port, it has been impossible to use

Recent developments in IT have addressed this ‘bad data’ problem in the logistics industry – and particularly in the shipping industry. This issue was identified by three data scientists at Stanford University, who felt that the application of artificial intelligence (AI), machine learning (ML) and algorithms might be able to solve it.

the carrier provides,” he says, adding: “We can prove that!” And, having established a proven system in ocean freight, ClearMetal is moving forward. It can already provide door-to-door visibility when carriers are responsible for pre- and on-carriage of goods and it is now looking to

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cover intermodal services, starting with the US rail sector. Kofler says ClearMetal is going to be offering full, dynamic visibility across the US network as from the second quarter this year. ClearMetal is also already in discussion with data owners to provide road transport coverage in Europe, as part of its ambition to provide complete end-to-end visibility for all freight transport operations. One area where ClearMetal believes this service will be particularly valuable is in the chemicals sector, especially for polymers. Volumes are large and margins are tight, so continuous visibility along the chain will be able to deliver better asset utilisation and, importantly, better safety. “The chemical industry fits ideally into our customer profile,” Kofler says. Not only can total visibility help reduce costs through better utilisation and lower demurrage charges, as receivers can pick up goods promptly once they are discharged from the vessel, but knowing about disruption

 CLEARMETAL HAS BROUGHT TOGETHER A RANGE OF DATA SOURCES AND APPLIED ADVANCED TECHNOLOGIES TO PROVIDE SHIPPERS AND THEIR CUSTOMERS WITH A CONTINUOUS DELIVERY EXPERIENCE

in the supply chain in real time can improve the speed of response. That boosts customer satisfaction and also means that buffer stocks along the chain can be reduced, again reducing costs. Those benefits are driving demand for ClearMetal’s services from all sectors of industry, Kofler says. PART OF THE PROCESS These are not idle claims. One company that is already benefiting from ClearMetal’s services is Lenzing, a major producer and supplier of cellulose fibres for the textile industry. Since 2016, Lenzing has been working towards a goal of what it calls “customer intimacy”. And to achieve that, it identified a need to build trust in the brand by making its products available and aligned with its customers’ expectations. Prior to implementing the ClearMetal CDX platform, Lenzing was, like many other companies, operating reactively to customer complaints. It had no formal process for exception management and was providing its customers with often conflicting shipment status updates. Its operations relied on manual inputs and were inefficient, involving manually checking carrier or partner websites to track down shipments and physically calling docks or other partners to find out where goods were. The result was long lead times, with frequent customer stock-outs, despite high

inventory along the chain, leading to high transport costs. ClearMetal’s CDX solution now allows Lenzing to benefit from dynamic lead-time planning with live transit tables and insights into carrier reliability. Predictive transport visibility delivers exception alerts, allowing Lenzing to proactively share information with its customers and collaborate in dealing with exceptions and delays, even before they happen. Indeed, these alerts can help Lenzing work with its carriers so as to honour its original ETAs, without the end customer even knowing there are delays in the supply chain. Automating Lenzing’s supply chain operations has reduced its demurrage costs by 15 per cent, and reduced manual “detective work” by 70 per cent. Order and booking information is now meshed with shipment/container data to give all departments access to shipment data in one platform, allowing all parties to dynamically view carrier performance in near real time alongside live transit times. Lenzing has also enjoyed a 20 per cent reduction in expedited transport costs and can use the data to undertake strategic analyses of performance on individual lanes. As a result, the company is also reporting increased revenues as customers are placing more orders. Not only has its customer service levels improved, but it is able to respond immediately to their inquiries and can communicate efficiently in the event of delays or disruptions. It can focus on exception management and be proactive, which for Lenzing is one way of achieving the “customer intimacy” it was seeking. For Kofler, this is exactly what ClearMetal was set up to do. Traditional supply chain management is bounded by static information and static silos, preventing the agility that is needed in today’s world and encouraging high levels of bugger stock. Being able to calculate lead times in a dynamic fashion allows better estimates of delivery times – but it also raises awareness that there is a need for more data points. Ultimately, it frees up a lot of time for logistics personnel to concentrate on the continuous delivery experience – in the end, it’s all about customer service. www.clearmetal.com

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FIRST PAST THE POST

STOLT-NIELSEN IS ALWAYS the first of the major chemical logistics firms to report its financial results, due to the fact that its financial year ends on 30 November. As a result, its first-quarter report, which covers the three months to end-February 2020, is the first chance to see exactly what impact the Covid-19 pandemic is having on business. In fact, the virus had not spread widely around the world by the end of February and it was only the extended Chinese New Year break that had any great impact. However, the three-month period also covered the arrival of the ‘IMO 2020’ rule

the company’s balance sheet. However, the company says, it has been unable at this point to quantify possible impairments of long-term assets, as it is still difficult to gauge the evolution of the pandemic and the effects it might have on the value of the company’s assets and on its operations. As Niels G Stolt-Nielsen, CEO of StoltNielsen Ltd, says: “While the effects of the Covid-19 pandemic have substantially altered our outlook for 2020, Stolt-Nielsen Ltd’s first quarter results were only slightly impacted.” Overall, group revenues of $498.8m were

WHERE WE STAND Stolt-Nielsen’s first quarter results were released on 16 April, giving the company a chance to make some observations on the impact of Covid-19 on operations during the first half of its second quarter. Niels G Stolt-Nielsen says: “As the pandemic has escalated in the six weeks since the end of our first quarter on 29 February, the impact on our businesses has so far remained relatively modest. At Stolt Tankers, contract volumes remain relatively healthy and contract renewals continue with improved terms, though we are experiencing some port delays. Spot volumes in most markets, so far, have also been holding up. “Stolthaven Terminals has seen an increase in enquiries for storage in most of its terminals, so utilisation is up, but throughput is slightly down. Stolt Tank Containers continues to see a robust market, reporting a record number of shipments in March and utilisation of 71 per cent, the highest we have seen in recent years, while we are also seeing increased inquiries

restricting the sulphur content of maritime bunker fuels, which certainly did have a marked impact on Stolt Tankers’ results. Stolt-Nielsen notes that, under the International Financial Reporting Standards (IFRS), the Covid-19 pandemic constitutes an event that triggers an impairment review of

$1.3m up on the prior period and $3.1m below the year-earlier level. Operating profit, though, was well down at $16.6m compared to $46.8m in the fourth quarter of 2019, with a sharp downturn in profitability at Stolt Tankers, Stolt Tank Containers and Stolt Sea Farm.

by customers to use containers as storage. However, we continue to have significant repositioning costs as a result of the rapidly changing trade flows.” Stolt-Nielsen is, though, more worried about what may come next: “I believe it is just a matter of time before we see a significant slowdown.

RESULTS • THE ARRIVAL OF THE IMO 2020 RULE IMPACTED STOLT TANKERS’ PROFITS BUT THE STOLT-NIELSEN GROUP IS MORE CONCERNED ABOUT THE LIKELIHOOD OF GLOBAL RECESSION

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Most economic analysts are now forecasting an imminent and deep global recession, which is likely to be accompanied by substantial reductions in manufacturing worldwide. “The severity and duration of the expected recession are, obviously, impossible to predict,” Stolt-Nielsen continues. “So, while we are hoping for the best, we are preparing for the worst. Actions include extensive measures to conserve cash and to reduce costs, while delaying or eliminating capital expenditures and projects across the full spectrum of our businesses. We have so far managed to find approximately $83m of savings from capital expenditures and operating and administrative and general expenses, including that the Board of Directors has agreed to cut board fees by 50 per cent and our senior management team has volunteered to take a salary cut of 20 per cent, effective 1 April. On the revenue side, we are diligently working to maintain our strong customer base by renewing contracts, while also aggressively pursuing new business and working closely with customers to create new solutions to help them adapt in this constantly changing environment.”

 NIELS G STOLT-NIELSEN (ABOVE RIGHT) AND HIS BOARD ARE PREPARING FOR THE WORST, THOUGH THE FIRST QUARTER WAS LARGELY STABLE FOR THE COMPANY’S TANK CONTAINER AND TERMINAL BUSINESSES

TANKS AND TERMINALS Stolt Tank Containers reported first quarter revenue of $129.4m, unchanged from the previous period once one-off items are excluded. “Despite continued price competition, first quarter transportation revenue increased by 3.4 per cent, driven by a 1.5 per cent increase in total shipments and an increase in the proportion of higher revenue-generating inter-regional shipments,” the company notes. First quarter operating profit fell from $15.7m in the fourth quarter 2019 to $6.7m. The previous period included a one-off $4.0m gain in demurrage and ancillary revenue, while the latest period witnessed a $3.0m increase in ocean freight costs related to low-sulphur fuel surcharges, which was not fully recovered from customers, and an increase in repositioning costs of $0.9m as empty tanks stacked up in China over the extended Chinese New Year break. Stolthaven Terminals reported first quarter revenue of $61.7m, essentially unchanged from the prior quarter. There was increased revenue from Houston, as a result of higher demand for railcar storage and cleaning services, and from New Orleans, where new tankage was commissioned. This was partly offset by lower revenues from the Santos terminal in Brazil as a result of lower utilisation and throughput. Stolthaven’s first quarter operating profit came in at $18.9m, well up on the prior

quarter’s figure of $11.7m, which included $6.8m of write-offs and accelerated depreciation. TANKER TROUBLES Stolt Tankers has not only had to face the onrushing pandemic but, perhaps more significantly to the maritime sector, the IMO 2020 rules on low-sulphur fuels; this has had a major impact on its first-quarter results. While on the one hand bunker surcharge revenue helped boost revenues from $274.8m in the fourth quarter 2019 to $280.7m, there was an additional cost of $6.9m net of surcharges, of which some $4.0m was unrecoverable. Average bunker costs rose from $384/tonne in fourth quarter 2019 to $506/tonne. The market was doing well, though, as Niels G Stolt-Nielsen says: “The underlying recovery of chemical tanker markets that started in 2019 continued in the first quarter, with both higher spot rates and contracts renewed at an average increase of 4.74 per cent.” Deepsea freight rates rose by 1.2 per cent in the quarter and regional fleet revenue was up 6.2 per cent, driven by increased demurrage revenue, partly due to seasonal weather delays. On the other hand, there was a 2.0 per cent decrease in utilisation in the deepsea fleet due to scheduling issues arising from delays in drydocking associated with the installation of exhaust gas scrubbers and wastewater treatment units. www.stolt-nielsen.com

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TANKS & LOGISTICS

succession plan, with Sirka Hintze now formally appointed CFO after joining as incoming CFO in September 2019. Rainer Barthel, who has held the post since 2014, will retire at the end of the year and will remain with the company until then to work with Hintze on ongoing projects. Hintze arrives from Marquard & Bahls, where she was head of finance for North America, based in Houston. www.leschaco.com MORE STORAGE WITH RHENUS

ALBATROSS MAKES STRATEGIC MOVE

Albatross Tank-Leasing has appointed Lindenau Full Tank Services (LFTS), which has recently been acquired by CIMC Enric Holdings, to act as its central European operations hub at its Oberhausen site north of Duisburg, Germany. Albatross has recently taken delivery of ten new T75 cryogenic tanks at Oberhausen and more are to join in the coming weeks. The tanks will be available to lease under Albatross’s new Strategic Move fleet management package. Albatross says it now has one of the largest T75 fleets, including 20-foot units for a range of industrial gases, including oxygen, nitrogen, argon, ethylene and ethane, as well as 40-foot units for LNG. To help with the rollout of Strategic Move, Albatross has also appointed Fredrik Niermann as its new marketing and sales manager. His main area of responsibility will be the new fleet management system which offers, apart from the tank container leasing, a digital platform

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for round-trip supervision, including technical support and control of the dedicated tank. albatross-tanks.de WIDER AEO FOR LESCHACO

Leschaco Nederland has been awarded Authorised Economic Operator (AEO) status, adding to similar accreditation awarded to Lechaco’s subsidiaries in Belgium and Brazil last year. The certification confirms that Leschaco Nederland is a reliable business partner for customs clearance in international trade. Customers benefit from simplified customs declaration procedures, which among other things allow customs formalities to be completed more quickly and efficiently. “The AEO certification is a great success for our Leschaco subsidiary in the Netherlands and another important step in our constant efficiency and quality improvement for our customers,” says Jörg Conrad, owner and CEO of the Leschaco Group. Leschaco has also pursued its leadership

Rhenus Midgard has embarked on an expansion of its hazardous goods container store at the JadeWeserPort Freight Village om Wilhelmshaven, Germany. Rhenus is adding another 1,000 m2 of space, taking the entire site up to some 4,000 m2. “We’re growing with our customers; they’ll have more storage space at the Freight Village in Wilhelmshaven in future,” says Matthias Schrell, managing director of Rhenus Midgard Wilhelmshaven. “The container store forms one element in the services that we provide for containers. They not only include storage, but also stripping and stuffing, the containerisation of project loads as well as freight forwarding and customs clearance.” Work began in April and is due to be completed by the summer. www.rhenus.group MILKYWAY EXTENDS EXPERTISE

China-based tank container operator Milkyway has completed its first shipment of hazardous waste, having started work to develop the capability this past October. Its first cargo involved a waste organic solvent transported from Wuxi to Nanjing by Milkyway Baohua Logistics. “The completion of this transportation task marks that Milkway has opened up a new market in the chemical transportation business, and has made a new breakthrough,” the company says. The move into waste transport has also prompted investment in onboard systems, including real-time positioning, safe driving identification and intelligent video analysis for all vehicles in transit. Milkyway has also extended its expertise into the transport of radioactive materials, with a containerised cargo from South America

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arriving in Shanghai in March. The movement involved coordination with the Brazilian government, shipping companies, terminals, customs and other relevant departments. www.mwclg.com TRANSCONTAINER GETS NEW HEAD

Alexander Isurin has been appointed president of TransContainer and has been nominated by the company’s major shareholder, Delo Group, to take a seat on the board of directors. “The most important task for me is to upgrade effectiveness of the company, its competitive advantages in complicated conditions of modern container transportation market. I’ve been handling tasks like this for 25 years of my work for Maersk, MSC, FESCO, which is especially important now, when TransContainer has become a private company,” Isurin says. trcont.com COTTER THE MAN FOR CLX

CLX Logistics has appointed Tim Cotter as vice-president of North American operations. He arrives from Penske Transportation, where he was general manager of international operations and of brokerage, and had previously led the startup of Penske’s US freight forwarding operation. “We are excited to have Tim join our team of

logistics professionals. His experience will be a benefit to every customer we are fortunate enough to serve,” says David Vieira, president/ CEO of CLX Logistics. www.clxlogistics.com DACHSER SMOOTH AS SILK

Dachser has completed the first block train transport for BASF from Ludwigshafen, Germany to Xi’an, China. The transport of 42 containers via the ‘New Silk Road’ took 14 days, half the time the journey takes by containership, and went from the KombiTerminal Ludwigshafen (KTL) via Poland, Belarus, Russia and Kazakhstan. Thomas Krüger, managing director of air and sea logistics, EMEA at Dachser, describes the transport as “faster than sea freight, cheaper than airfreight, very easy to plan and reliable”. He adds: “For certain logistical requirements, rail traffic to China via the ‘New Silk Road’ can become a value-adding alternative to air and sea freight.” In particular, Dachser sees the route as being especially interesting for those chemical companies located in the interior of China, far from its seaports. KTL plays an important role in BASF’s logistics chain, functioning as a hub where products from around Europe are bundled

and trains put together. It is Germany’s largest inland terminal and sits directly adjacent to BASF’s main production plant. It offers up to 30 train connections every day to more than 20 economic centres across Europe. From Ludwigshafen, the 40-foot high-cube containers travelled to Malaszewicze in eastern Poland where they were reloaded onto Russian-gauge wagons; a similar process took place at the border between Kazakhstan and China. On arrival in Xi’an, Dachser North China organised customs clearance and the distribution of the containers by truck to BASF’s customers. The containers were loaded primarily with granules, fuel additives and catalysts. BASF and Dachser have a decades-long relationship in the transport and safe storage of palletised chemicals in Europe; Dachser operates two hazardous goods warehouses for BASF in Hungary and Romania, both of which meet the highest safety criteria and are assessed in accordance with SQAS. “With the first train to Xi’an, we are taking the logistics partnership with BASF to a new level,” says Michael Kriegel, department head of Dachser Chem-Logistics. Further block trains are scheduled to go from Ludwigshafen to Xi’an in the coming months. www.dachser.de

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HCB MONTHLY | MAY 2020

CHEMICAL DISTRIBUTION 45

DO THE POZNÁN POLAND • A MOVE OUT OF POZNÁN WILL GIVE BODO MÖLLER MORE SPACE, BETTER LOGISTICS AND A REGIONAL HUB, AS WELL AS CONCENTRATING ITS ADHESIVES EXPERTISE AFTER A 15-YEAR presence, the Polish branch of the Bodo Möller Chemie Group has developed into a hub for the specialty chemicals market in Poland, the Czech Republic and Slovakia. To promote growth even further, the company has moved into a completely new building, which was constructed for the special requirements of the dangerous goods industry, with an adjacent warehouse for chemicals. For logistical reasons, the new headquarters in Suchy Las offers advantages. Its location directly on the main highway to Poznán allows the fast movement of goods to and from the new site. The new warehouse has an area of 1,000 m² and offers 600 pallet spaces and 25 chilled pallet spaces for products that must be stored below normal room temperature. Two newly hired skilled workers are qualified for administering ADR goods. With its own truck, Bodo Möller Chemie is capable of organising urgent deliveries to customers in Poland directly from the warehouse. “With the new site, we have more pleasant work conditions with a simultaneous increase of space. In the future, this will offer us additional space for expansion not available in the overcrowded city of Poznán,” says Maciej Nawrot, managing director Poland, Czech and Slovakia of Bodo Möller Chemie. The product portfolio of the Polish branch of Bodo Möller Chemie ranges from adhesives, sealants, composites, tooling materials and resins all the way to products

growing for years and the need for modern materials is increasing. Since we established the branch in 2005, we have become one of the most important suppliers and know-how partners of the industry,” says Frank Haug, CEO of the Bodo Möller Chemie Group. STICKY COMPETENCE The site in Poznán used until now has not been completely abandoned, as it will still house the Adhesives Competence Centre and the Adhesives Laboratory. The independent Adhesives Laboratory of Bodo Möller Chemie remains in the High Technology Incubators Complex of the Poznán Science and Technology Park of the Adam Mickiewicz University Foundation. The space vacated by the move is now also available for the adhesives and materials research, consulting and testing laboratory. The laboratory is certified according to the ISO 9001:2008 quality management standard and has approval according to DIN 2304

(Quality requirements for adhesive bonding processes) and DIN 6701 (Standard for the adhesive bonding of rail vehicles and parts), confirmed by TBB Cert. In addition, the attached Adhesive Competence Centre also offers an independent range of services related to adhesive application technology, starting with product selection and product validation all the way to process simulation and engineering. The services of the laboratory and the Adhesive Competence Centre are not only available to the Polish market, but are used by the globally operating Bodo Möller Chemie Group. In other news, Bodo Möller Chemie has extended its collaboration with BASF in South Africa, adding the sale and distribution of dispersions for architectural coatings in southern Africa and English-speaking countries in West Africa. “The cooperation with Bodo Möller Chemie gives us the opportunity to offer formulators our comprehensive product portfolio of polymer dispersions, resins and additives combined with technical and market expertise. Our aim is always to be more than a supplier of raw materials and support customers with formulation and market expertise, towards new methods, new strategies and in the creation of new market opportunities,” says Robert Heger, sector vice-president EMEA at BASF. www.bm-chemie.com

for the coating and construction industry. “The market in and around Poland has been

 A NEW OFFICE AND WAREHOUSE WILL PROVIDE BETTER LOGISTICS AND A NICER PLACE TO WORK

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

OQEMA SIGNS DEAL WITH CHEMADA

The Oqema Group has entered into an exclusive agency and sales partnership with leading Israeli fine and speciality chemicals manufacturer Chemada Industries. Oqema will act as an agent and distributor in Europe for Chemada’s entire range of brominated intermediates and bromination reagents. In addition, order syntheses based on other technologies will also deliver to the Benelux, France, Germany, Denmark, Switzerland, the UK, the Czech Republic, Slovenia, the Baltic States, Italy and Hungary. “For us as a leading distributor of special products, currently represented in 21 European countries, Chemada’s intermediate products business means a strong expansion of our portfolio,” says Dr James Berwick, group director specialties at Oqema AG. “As the Oqema Group would like to further expand its range of chemical intermediates, we are making every effort to bring industry leaders and innovators with a strong brand and market reputation into important areas of our portfolio. Our teams of technical sales experts are well equipped to offer the Chemada products in our network.” For Chemada, the market presence of

HCB MONTHLY | MAY 2020

Oqema and the professional competence of its teams are crucial, as Eyal Azulay, CEO of Chemada Industries, explains: “We are looking forward to this new partnership with the Oqema Group. The Oqema Group’s extensive market and application experience in the life science and technical industries, its proven performance in terms of value creation in the distribution markets, and its willingness and ability to represent the entire Chemada product range, guarantee successful cooperation.” The deal with Oqema coincides with Chemada Industries taking over direct control of the marketing, sales and distribution of its products, after 45 years of working through Israel Chemicals Ltd (ICL). “We take this opportunity to express our sincere thanks and appreciation to ICL and its people, for many years of great collaboration,” the company says. oqema.com AZELIS BIG IN ASIA

Azelis has acquired CosBond, a Chinese distributor of speciality chemicals and food ingredients. Headquartered in Hong Kong, CosBond has offices and warehouses in

Hong Kong, Shanghai, Guangzhou and Beijing. It represents more than 30 global principals, largely in the personal care sector. “Azelis China has enjoyed a steady growth since its inception in 2013 and has grown to become one of the main international players in the Chinese distribution industry,” says Laurent Natag, CEO/president of Azelis Asia Pacific. “We have a strong presence in the food and nutrition market and we have been growing over past years in serving the personal care, homecare, agro and coatings industries. We are very excited to be able to now extend this vast technical knowledge to CosBond’s principals and customers.” “China has a large and fast-growing personal care market, so now is the right moment to enhance our service offering,” adds Jackson Chu, managing director of Azelis China. “The combination of CosBond’s extended customer base, our joint good market knowledge and strong technical and formulation capabilities of Azelis’ Personal Care team will result in a more comprehensive specialty offering in China. In addition, we are confident this acquisition will bring ample cross-selling opportunities as well

CHEMICAL DISTRIBUTION 47

as prospects to expand the business with our existing long-standing and trusted partners.” Jerome Cheung, strategic director at CosBond, says: “We have had a very strong commercial presence on the market and have built a significant customer base, but the strong formulation and application support that Azelis can offer will bring a lot of added value in our offering to the market. We will also benefit from Azelis’ strong international infrastructure and access to additional customers and suppliers, as well as an increased focus on corporate social responsibility, something which is key in serving the personal care industry. We are also excited about the wider geographic reach we will be having. In short, we see many growth synergies and we are confident that we are entering a thriving new chapter in the history of our company.” Elsewhere in Asia, Azelis has signed a new agreement under which it will distribute Merck Performance Materials’ complete range in Vietnam for personal care, CASE, food & health, and industrial chemicals. The deal expands on an existing agreement in other countries and will see a number of Merck personnel transition to Azelis. Panutin Tantichuwet, head of commercial at Merck for south-east Asia and Australia/New Zealand, says: “Azelis is a global leader in specialty chemicals distribution. Their local technical sales team will help us focus on enhanced services to our customers in Vietnam, where we aim to improve customer intimacy, innovation and technology effort.” www.azelis.com

LBB BUYS DIEN

LeBaronBrown Specialties (LBB) has acquired a majority interest in Dallas-based Dien, a distributor of speciality chemicals and ingredients. Dien Stout, president of Dien, will retire but the management team, led by James Williams, will stay with the business. “The investment brings additional resources and commercial relationships to best support the growth of Dien’s suppliers and customers, building upon the success of our dedicated Dien team,” says Stout. “We are excited about our future and the partnership with LBB Specialties, and believe significant opportunities lie ahead,” adds Williams. Darren Birkelbach, CEO of LBB Specialties, says: “We are thrilled by the addition of Dien to the LBB Specialties platform. The company’s high-quality, multi-decade performance history and reputation as a premier specialty chemical and ingredients provider are a testament to the outstanding team in place at Dien. We look forward to the opportunity to provide resources and support to the management team at Dien to fuel continued growth.” www.lebaronbrown.com BIG DEALS FOR BIESTERFELD

Biesterfeld and Songwon are expanding their long-term partnership to include functional polymers. Biesterfeld will be responsible for the European distribution of some 20 new products consisting of bisphenol-based monomers and high-performance monomers based on diacid anhydrides and dicyclopentadiene-phenol adducts (DCPD) for the production and modification of bonding agents.

“The new functional monomers are also game-changers for manufacturers of binders for the paint and plastics industry,” says Lukas Eckl, product manager CASE at Biesterfeld Spezialchemie. “For customers who want to avoid bisphenol, the DCPD types will be especially interesting.” “Resin manufacturers can benefit even more from the high performance, cost efficiency and competitive prices of our functional monomers, because we are now producing them in large quantities,” says Heinrich Schulte, head of Market Center Functional Monomers at Songwon. “Our products are already well established on the Asian market, so now, working with Biesterfeld, we want to bring them to the European market.” Biesterfeld has also extended its distribution partnership with US manufacturer Scigrip. After successfully handling the distribution of two-part methyl methacrylate (MMA) adhesives in Poland, the Baltic States, Germany and France, the agreement has now been extended to include the UK market. “Biesterfeld has proven itself as an invaluable partner to Scigrip over the last three years,” says Tim Johnson, sales and marketing manager at Scigrip. “Thanks to their expertise and experience in the Advanced Materials market, and our proven product range and continuing focus on technical developments, collaborating in this market made sense for us both. We are excited to see what we can achieve together.” www.biesterfeld.com

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TRAINING DURING LOCKDOWN

E-LEARNING • DURING THE CORONAVIRUS PANDEMIC, FACE-TO-FACE TRAINING IS IMPOSSIBLE. EXIS TECHNOLOGIES OFFERS A NUMBER OF ONLINE ALTERNATIVES THOSE INVOLVED IN the world of the transport of dangerous goods have been just as much affected as anyone else by the disruption that the Coronavirus has caused, both at home and at work. But there is still a requirement for those working in the supply chain or furloughed at home to keep up to date with the transport regulations or to begin their initial training. But all face-to-face classroom training, traditionally the mainstay of the training world, is currently on hold. Those working in the supply chain are now looking for other ways to keep up to date with their training needs: e-learning is certainly one of the options that is available. BRING THE SEA ASHORE Exis Technologies has been offering a range of e-learning courses for the International Maritime Dangerous Goods (IMDG) Code

cargo handlers, ship loaders, ship operators and so on. Advanced e-learning courses are provided for dangerous goods safety advisers (DGSAs) and managers, and there is a refresher course for those who have previously taken classroom or online training and need to update their training to cover the latest amendment to the Code. The e-learning courses are updated for each IMDG Code Amendment so the training material is always current. Developed in collaboration with IMO, the courses have now been used by six of the ten largest container shipping lines as part of their global training programmes as well as by many other companies active in the maritime transport chain. The courses are certified by Det Norske Veritas (DNV-GL) and by several competent authorities around the world, including the Australian Maritime Safety

since 2010, when the International Maritime Organisation (IMO) made IMDG Code training mandatory for shoreside staff involved in the transport of dangerous goods by sea. The courses are tailored for the different job functions involved, such as booking office staff, consignors, freight forwarders, packers and

Authority (AMSA) and the Maritime and Port Authority of Singapore (MPA). They are also certified by the Port of Antwerp for companies working within the port. Exis’s IMDG Code e-learning courses are sponsored by the TT Club and supported by the International Cargo Handling Coordination

HCB MONTHLY | MAY 2020

Association (ICHCA International). The courses also assist Exis’s clients using the Hazcheck cargo booking platform to understand how to use the IMDG Code and, therefore, how to use those tools more effectively in their day-to-day dangerous goods roles. The courses can be found at www.imdge-learning.com. “IMO statistics continue to reveal a high level of non-conformities when shipping dangerous goods by sea,” says Peregrine Storrs-Fox, TT Club’s risk management director. “Mandatory shoreside training is key to increasing safety in the marine mode. The TT Club recommends IMDG Code e-learning as high quality, costeffective training for everyone in the supply chain, especially shippers and packers.” “ICHCA is the voice of global cargo handling and through its work is committed to improving the safety, productivity and efficiency of cargo handling and transport in the national and international supply chain across all modes of transport,” adds Capt Richard Brough OBE, director of ICHCA. “We thoroughly endorse and recommend IMDG Code e-learning as an important training tool for addressing, amongst other requirements, the mandatory element of shoreside training and encourage our members to use it accordingly.” CONTAINERS AND TANKS Exis Technologies has also worked with ICHCA International and the International Tank Container Organisation (ITCO) to produce the CTUpack e-learning course, based on the Code of Practice for Packing of Cargo Transport Units (CTU Code), and on tank container e-learning courses. Both are styled on the lines of the IMDG Code e-learning courses, with similar screens, navigation, learning experience, assessment and course completion certificate. The introduction of the CTU Code, formulated jointly by three UN bodies – IMO, the International Labour Organisation (ILO) and the Economic Commission for Europe (ECE), is internationally approved as a non-mandatory method to improve the problems resulting from poor CTU packing, which causes an alarmingly high number of incidents that lead to damage, loss, injuries and fatalities. CTUpack e-learning has two levels: introduction and foundation. The Introduction course provides and introduction to the

COURSES & CONFERENCES

CTU Code and includes an overview of its development and objectives. It is aimed at all those with an interest in learning more about the Code and how it can be applied in day-to-day operations. The Foundation course is for those directly involved in the loading and unloading of CTUs, and aims to support the training of consolidators and packers to promote best practice. It can be found online at www.ctupack.com. ITCO Tank Container e-learning is an online course developed by ITCO to further enhance the safe, competent and efficient use of tank containers, as part of its mission to promote the tank container as a safe, cost-efficient and ﬂexible means of transport. The contents are maintained within the scope of the IMDG Code concerning the operation of portable tanks. The course may also be applied to the transport of non-dangerous goods. BENEFITS OF ONLINE E-learning offers trainees the ﬂexibility to learn at their own pace, either at their place of work or at home, using a web login and an internet connection. The courses are high

 EXIS TECHNOLOGIES’ E-LEARNING COURSES ARE MODULAR AND DESIGNED TO LEAD THE STUDENT THROUGH THE MATERIAL WITHOUT THE ASSISTANCE OF A TRAINER

quality but cost-effective as there are no overheads in terms of renting a training venue or hiring an instructor. Courses are accessed over the internet with a pc, laptop or tablet device (iPad, Android or Windows). Exis Technologies also offers SCORM content packages developed to the SCORM 1.2 standard for import into SCORM-compliant learning management systems. The courses are suitable for all those who need training in transport regulations, whether as an individual or as part of a corporate global training programme with thousands of students. All of the courses that Exis offers can be added to an learning administrator system to allow designated people in the organisation to set up students, assign pass marks and monitor progress. This delivers consistent training standards across operations on either a local, regional or global basis and is especially relevant to corporate quality assurance programmes. The courses can also be used as part of a blended training approach to bring students to common competence levels in preparation for other training methods. Records are maintained in an administrator system and can be made available to employees and competent authorities. There are tests at the end of lessons to ensure the understanding of learning topics, and marks combine to a final course completion score. Certificates are produced at the end of each

course that can be printed out and kept as a record of training by both the employee and the HR department. SPECIAL OFFER Exis Technologies is currently offering a 10 per cent discount on all IMDG Code and CTUpack e-learning web courses until 30 June 2020, to help people take advantage of the training during the Covid-19 pandemic. All courses have been discounted on the relevant websites. ITCO members are now also eligible for two extra free Tank Container e-learning courses, in addition to the two that are part of their membership. Exis Technologies has been a global leader in the development of systems to assist in the transport of dangerous goods by sea for more than 30 years. Since April 2018 it has been the software division of New York-based National Cargo Bureau (NCB), with which it works on a number of industry projects, including Hazcheck Detect, a new cargo scanning tool, and Hazcheck Inspections, a web-based database and access portal for inspection companies to plan and enter details of cargo inspections completed on behalf of container or vessel operators. Exis Technologies and NCB are both notfor-profit organisations with a mission to ensure the safety of life and cargo at sea. For more information go to www.existec.com.

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50 COURSES & CONFERENCES

CONFERENCE DIARY The global Covid-19 pandemic has caused the cancellation or postponement of many events planned for the next few months. The following list is correct as of late April but readers should check dates carefully as some of the events may also have been rearranged and some dates for postponed events may also have changed.

JUNE IAFC Hazmat Conference June 4-7, Baltimore Annual international event for response teams www.iafc.org/events/hazmat-conf Petrochemical Supply Chain and Logistics June 10-11, Houston Conference on optimising polymer and liquid petrochemical supply chains www.petchem-update.com/petrochemicalsupplychain/ Transport Logistic China June 16-18, Shanghai Ninth international exhibition for logistics, telematics and transport www.transportlogistic-china.com International Transport & Logistics Week (SITL) June 23-26, Paris Annual transport event, including Dangerous Goods Logistics Pavilion www.sitl.eu/en-gb.html

JULY Intermodal Asia July 14-16, Shanghai Seventh annual exhibition for the Asian intermodal sector www.intermodal-asia.com NISTM July 27-29, Orlando National Institute for Storage Tank Management’s 22nd annual international aboveground storage tank conference and trade show www.nistm.org

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

Supply chain meeting for senior-level executives in North America logichemus.wbresearch.com/

ChemEdge August 16-19, Indianapolis Conference for the North American chemical distribution sector www.nacd.com/education-meetings/meetings/ chemedge/2020-chemedge/

Gastech 2020 September 8-10, Singapore International conference and trade show for the LNG and LPG industries www.gastechevent.com

UKIFDA Expo 2020 August 18-19, Liverpool Annual exhibition for the fuel distribution sector in the UK and Ireland (formerly FPS Expo) https://ukifda.org/ukifda-expo/ Chemspec India August 19-20, Mumbai Exhibition for the fine and speciality chemicals sectors, incorporating ChemLogistics India www.chemspecindia.com PPC Fall Meeting August 30-Sept 1, Nashville Semi-annual meeting of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php AHMP National Conference August 30-Sept 2, Omaha Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/page/National_Conference

SEPTEMBER

AUGUST

LogiPharma September 1-3, Nice Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com

Expo Logisti-K August 11-14, Buenos Aires 14th international exhibition for logistics technology and equipment www.expologisti-k.com.ar/en/

PGLC 2020 September 3-4, Barcelona Second annual Petrochemical Global Logistics Convention www.pglc.biz/

Oil & Gas Africa 2020 August 13-15, Nairobi

LogiChem US September 7-9, Houston

HCB MONTHLY | MAY 2020

LogiChem September 8-10, Rotterdam Chemical supply chain and logistics conference logichem.wbresearch.com/ SMM September 8-11, Hamburg 29th biennial exhibition and conference for the global shipping industry smm-hamburg.com/en Labelmaster DG Symposium September 9-11, Chicago 15th annual Dangerous Goods Symposium hosted by Labelmaster www.labelmaster.com/symposium Labeline Biennial Dangerous Goods Roadshow September 15, Heathrow September 17, East Midlands Biennial conference to provide a regulatory update to industry www.labeline.com/events/dangerous-goodsroadshow/ SIL Barcelona September 15-17, Barcelona Annual international logistics expo and congress www.silbcn.com/en/index.html Virginia Hazmat Conference September 15-18, Norfolk 37th annual networking and training meeting sponsored by the Virginia Association of Hazardous Materials Response Specialists www.virginiahazmat.org/annual-hazmatconference/ ChemUK 2020 September 16-17, Manchester Supply chain expo and conference for the UK chemical industry www.chemicalukexpo.com/

COURSES & CONFERENCES 51

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

20/2/20

Vehicle Type

Substance

Details

Source

Indianapolis, road tanker jet fuel Indiana, US

Tank truck with 4,000 gal (15 m³) jet fuel overturned, exploded on ramp from I-465 to I-70; spilling fuel spread fire, causing severe damage to surrounding area; driver was pulled out but died two weeks later of burns

Indy Star

23/2/20

Quetta, road tanker LPG Pakistan

Gas tanker exploded inside warehouse, killing six people and badly injuring three more; thought that those involved may have been using the vehicle to smuggle drugs; police investigating

SAMAA

23/2/20

nr Middelburg, road tanker — MP, South Africa

Driver and passenger were killed when road tanker, cargo unknown, ran out of control and overturned several times on N11 some km from Middelburg; cause unclear but was apparently a single-vehicle accident

IOL

25/2/20

nr Austin, road tanker Arkansas, US

Collision between tank truck and passenger vehicle on US 67 spilled some 2,600 gal (10 m³) sulphuric acid to road; no injuries reported but road had to be closed while remediation work was carried out

Arkansas Democrat

26/2/20

East Chicago, freight train crude oil Indiana, US

41 tank cars in CSX oil train detached, with up to ten cars overturning; no leaks reported; nearby businesses evacuated, roads closed during response

CBS

3/3/20

Springfield, rail tank car refrigerant Ohio, US

Responders called to report of explosion at Indiana & Ohio Railway track, found Superior Carriers worker, who had been on top of car to unload 177,000 lb (80 t) R124a refrigerant, suffering frostbite after valve failed

Springf’d News-Sun

9/3/20

Swalwell, road tanker propane Alberta, Canada

CN freight train collided with propane tanker, presumably on grade crossing, causing leak of gas; small town was ordered to evacuate in case of explosion; no injuries reported

CBC

10/3/20

Keystone Heights, road tanker gasoline Florida, US

Gasoline tank truck overturned after crash on SR 21, causing leak of more than 1,500 gal (5,700 litres) fuel; spill was contained; rest of cargo transferred; road closed, nearby day care centre evacuated

News4jax

11/3/20

Howrah, road tanker natural gas W Bengal, India

Road tanker, said to be carrying natural gas (LNG?) from Haldia, overturned on NH 6 after driver lost control, hit median; highway was blocked for several hours; no leak or injuries reported

PTI

16/6/20

Flagstaff, road tanker fuel Arizona, US

Tank truck, cargo unspecified, crashed under I-40 bridge, causing massive fire; highway was closed for a time as fire crews dealt with incident; driver hospitalised with injuries; cause unknown

AZ Family

18/3/20

Thane, road tanker chemical Maharashtra, India

Road tanker carrying an unidentified flammable chemical caught fire, cause unknown, at Shil Phata; fire sparked two explosions, which knocked tanker over; driver suffered injuries; severe traffic disruption

PTI

18/3/20

Baxter, road tanker — Minnesota, US

Tank truck, cargo not specified, rolled over on Highway 371, blocking traffic; driver injured; hazmat crews called in with spill response equipment but not known if there was any leak of cargo

Brainerd Dispatch

21/3/20

Santa Maria, road tanker crude oil California, US

Tank truck with 6,000 gal (22.7 m³) crude oil overturned on SR 166, rolled down embankment and spilled cargo into Cuyama River, which feeds nearby reservoir; berms, booms deployed to prevent spill spreading

CBS

22/3/20

Vattappara, road tanker LPG Kerala, India

Hindustan Petroleum gas tanker overturned on NH 66, blocking highway; no leak reported but nearby homes evacuated; cargo transferred by IOC personnel; police said driver was speeding; site is an accident black spot

Times of India

22/3/20

Manatee county, road tanker fuel Florida, US

Driver of tank truck turned too quickly from US 41 to on-ramp to I-275, causing 8,600-gal (32.5-m³) load to shift and tanker to overturn; some 3,600 gal spilled to road, shoulder; police investigating

HeraldTribune

25/3/20

Lahore, road tanker LPG Pakistan

Gas tanker exploded after “road mishap” in Shahdara area; resulting fire engulfed fuel station, nearby shops; at least seven people injured; toll would have been higher except for Covid-19 lockdown

Xinhua

sulphuric acid

MARINE/INLAND WATERWAY INCIDENTS Date

Location

13/2/20

Details

Source

Bay of Biscay, FRI Dolphin corn France

General cargo ship alerted authorities to four crew having been poisoned during fumigation of corn cargo for Hull; paramedics arrived by helicopter, found one crewman dead; ship diverted to Brest to discharge others

FleetMon

18/2/20

Sablons, Pampero VCM Isère, France

Self-propelled tank barge with 2,200 tonnes vinyl chloride ran aground on the Rhône at locks; wheelhouse was torn away, hull buckled; responders found some release of gas through ruptures; leaks plugged by divers

Shipwreck Log

26/2/20

nr Eich, Piz Ela RP, Germany

Self-propelled tank barge with caustic soda struck barge loaded with gravel, which was badly damaged; tank barge also damaged but no release of cargo; tank barge master found to have no licence; police investigating

Shipwreck Log

5/3/20

off Bahia Blanca, San Matias I crude oil Argentina

Product tanker (69,650 dwt, 2005) with 65,000 t crude oil for Puerto Rosales grounded in fairway approach to Bahia Blanca; hull not breached; several tugs attended to free tanker

FleetMon

HCB MONTHLY | MAY 2020

Vessel

Substance

caustic soda

SAFETY 53

MARINE/INLAND WATERWAY INCIDENTS (CONTINUED) Date

Location

Vessel

Substance

Details

Source

12/3/20

Niehl, Thekla NRW, Germany

aluminium hydroxide

Self-propelled tank barge allided with jetty during high water on Rhine that obscured the jetty; bow damaged, some water ingress; barge made basin under own power; cargo transferred to another barge the next day

Shipwreck Log

13/3/20

Puerto Paraná, Ferni H gasoil Argentina

Product tanker (16,870 dwt, 2009), with 16,000 tonnes gasoil, grounded on bank in Paraná River after mechanical failure; refloated next day with no apparent damage

FleetMon

Details

Source

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

11/2/20

Baton Rouge, oil refinery oil Louisiana, US

Significant fire broke out at ExxonMobil refinery; not clear whereabouts the fire was in the plant, or what products were involved, but flames, odour concerned nearby residents; no off-site impact reported

WAFB

13/2/20

Newburyport, Massachusetts, US

Several explosions at SEQENS plant, formerly PCI Synthesis; fire crews found thick black smoke, hole in roof; robot used to check air quality, found nothing of danger; no injuries reported; cause yet to be determined

NBC

18/2/20

Tripoli, oil terminal crude oil Libya

Libyan National Army rebels shelled oil terminal in port of Tripoli, sparking explosion; tankers were ordered to leave port; peace talks between LNA and Government of National Accord cancelled after the attack

Maritime Executive

22/2/20

Satartia, pipeline oilfield gases Mississippi, US

Denbury Enterprises line used to move carbon dioxide, hydrogen sulphide for oilfield operations ruptured, possibly due to heavy rain; 46 people suffered inhalation injuries, 300 evacuated

EcoWatch

26/2/20

Carson, oil refinery gases California, US

Massive fire followed explosion in cooling tower at Marathon refinery; shelter-in-place advised; nearby highway closed temporarily; no injuries reported

LA Times

4/3/20

Daesan, South Korea

Major explosion in naphtha cracker at Lotte Chemical plant injured at least 31 people; fire contained within two hours; no leak of toxic chemicals, operator said; investigation under way

Splash 247

7/3/20

Saskatoon, potash mine chemicals Sask, Canada

Fire broke out in three chemical storage tanks at Nutrien’s Vascoy potash mine; nature of chemicals not known; fire crews allowed blaze to burn out; no injuries or off-site impact; cause under investigation

Star Phoenix

chemical chemicals plant

chemical naphtha plant

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handling anything else, saving time and money in the warehouse. This means it’s possible offer a wider range of services around hazardous goods without any potential financial risk, as it’s fully integrated into the rest of the workflow.”

As the world increases its reliance on more advanced technology, it is becoming more and more common for logistics businesses to have to handle what are classed as dangerous goods – it is not just explosives and chemicals any more. Even the products that we carry in our pockets and bags every day contain lithium batteries, which are classified as hazardous. To meet regulations around this can be challenging, and they come with fines for non-compliance. To help its clients streamline and simplify the compliance process, Consafe Logistics has introduced a new add-on for its Astro WMS® warehouse management system.

it easy to ensure compliance with regulations surrounding the handling of dangerous goods, and the support it provides can eliminate risks connected with safety, health and the environment. “Many of our customers experience increasing difficulties with the handling of dangerous goods,” says Consafe. “Labelling and tracking demands extra resources. Regulations vary over time and between countries. Lacking documentation may make carriers refuse transport altogether. Therefore, since meeting customer needs always is our goal in product development, we are proud to present an add-on module

UP TO DATE This integrated add-on, available in an update to Astro WMS released in March, ensures that relevant documents are up to date and that any goods marked as hazardous are supplied with the right labelling in order to meet UN classification as well as international regulations. It ensures compliance thanks to the way it receives information, which is taken from classification contained in the UN regulations, and is applied to articles received from ERP, which then gets additional information added to it from DGOffice. Regulatory compliance is then checked, followed by a declaration document request. As it’s all connected and digital, all relevant information is always up to date. “With this Astro WMS® add-on logistics businesses will experience a wide range of benefits,” explains Brorsson. “First, they will be able to avoid the unnecessary expenses and potential fines that come with handling dangerous goods. Second, they will be able to see an increase in operational efficiency, as the add-on handles everything digitally. Third, they will be able to fully optimise income based on hazardous goods handling, as the risks are negated with this software. It’s a digital add-on that will facilitate in the real world of dangerous goods.” Indeed, Consafe points out that the availability of the DGOffice add-on offers its customers new business opportunities, as it makes the handling of dangerous goods just as easy as any other product, without the need for Excel documents and manual handling.

The add-on, developed with DGOffice, makes

for exactly this; effective handling of dangerous goods.” “We believe this solution can besides make life easier for our customers, present new opportunities,” says Mikael Brorsson of Consafe Logistics. “Our solution makes handling dangerous goods as easy as

DGOffice is headquartered in the Netherlands and has more than 25 years of experience in developing software solutions and services. Development offices are located in the Netherlands, Denmark and Norway. www.consafelogistics.com www.dgoffice.net

CANDY STORE WAREHOUSING • CONSAFE LOGISTICS HAS IMPROVED ITS WMS WITH AN ADD-ON DEVELOPED BY DGOFFICE, OFFERING ITS CLIENTS BETTER CONTROL AND NEW OPPORTUNITIES

 COMPLIANCE WITH DANGEROUS GOODS TRANSPORT REGULATIONS IS NOW MUCH SIMPLER FOR CONSAFE’S CLIENTS

HCB MONTHLY | MAY 2020

SAFETY 55

INGLORIOUS MUD BULK • JOHN SOUTHAM, LOSS PREVENSION DIRECTOR AT NORTH P&I CLUB, INTRODUCES THE RISKS OF A BAUXITE BYPRODUCT NOW EMERGING AS A CARGO FOR BULK CARRIERS AS CARGOES SHIPPED by sea in bulk, bauxite and bauxite fines are commonly carried and their characteristics are generally well known and understood by bulk carrier operators. However, a by-product of the bauxite refining process is now emerging as a cargo. This product is generally referred to as ‘red mud’. Red mud can be declared under a number of different names, including alumina refinery residues (ARR), bauxite refinery residue (BRR), Bauxsol, neutralised red mud (NRM),

 JOHN SOUTHAM: SHIPOWNERS SHOULD BE HIGHLY CAUTIOUS OF ACCEPTING A SHIPMENT OF RED MUD

neutralised alumina refinery residues (NARR), un-neutralised red mud (UNRM) or CO²neutralised red mud (CNRM). But, regardless of the label, the risks remain the same. Red mud is highly alkaline and difficult to deal with, and is considered a low-quality product. However, notable demand for it is now being reported from the Middle East and China, where a number of processes to extract components such as iron are undergoing laboratory or field trials. It is understood that none of these has progressed to full industrial scale as yet, though the work is more advanced in China, where the cost of iron ore and new environmental constraints mean there is a drive for recovery.

At present, its significant environmental hazard means that red mud is generally stored in large and highly toxic tailing dams, due to its limited uses and concerns over its safe shipment. TAKING A RISK? The carriage of red mud in bulk is a high-risk operation. It is known to be a highly variable cargo and often fine. Furthermore, as well as being a potentially usable product it can also be carried as a waste product. Red mud commonly contains a large proportion of fine particles less than 1 mm in size and generally has a very high relative moisture content. Once on board, even an apparently stable cargo has been known to break down very quickly once the cargo is repeatedly stressed by exposure to wave energy. This is of particular concern for smaller bulk carriers on longer voyages. Some versions of the cargo can resemble slurry, which results from a higher concentration of super-fine particles known as ‘slimes’. Experts have reported vessels being unable to leave the anchorage directly after loading red mud because of this cargo’s adverse effect on the vessel’s stability. Once on board, should a problem occur, then de-watering operations may be the only action possible to stabilise the cargo, which can prove costly and result in significant delays. Furthermore, the cargo is also highly caustic (high pH) making it corrosive to the vessel’s steel hull as well as being hazardous to human health through contact with the skin. Shipowners should therefore be highly cautious of accepting a shipment of red mud – it should be considered a high-risk operation. Red mud does not have a schedule in the International Maritime Solid Bulk Cargoes (IMSBC) Code and North P&I is not aware of any plans for it to be included in the future, most likely due to the high variability of the cargo. Therefore, red mud falls under section 1.3 of the IMSBC Code and should be carried accordingly; ship operators should seek expert advice prior to accepting a cargo of red mud. www.nepia.com

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KEEP YOUR DISTANCE SURVEYS • THE USE OF DIGITAL EQUIPMENT TO ENABLE SURVEYS TO BE CARRIED OUT REMOTELY DURING THE CORONAVIRUS PANDEMIC MAY PROVE TO BE A TURNING POINT IN THIS TIME of widespread lockdowns and social distancing measures, one important task in the maritime industry has been made very

one of Anthony Veder’s vessels, Coral Favia. The survey took place on the bridge and in the cargo control room, engine control room and

difficult: the regular surveys required by all vessels. In order to maintain the regular pattern of surveys required by classification societies, some novel means are being introduced. Gas tanker operator Anthony Veder, for example, has collaborated with Bureau Veritas on a pilot for a live, remote class survey, with crew using a wearable device and augmented reality technology. Bureau Veritas and Anthony Veder concluded that this form of survey can reach the same quality level as traditional onboard surveys but is much more efficient. In addition, Anthony Veder emphasises that this technology will also be used for remote assistance, troubleshooting and providing support to vessels in remote areas. During the pilot, a scenario including three conditions of class was executed onboard

engine room. The pilot was executed using a wearable augmented reality device enabling a live video and audio connection with the Anthony Veder office in Rotterdam and Bureau Veritas office in Paris. A remote class surveyor guided the crew onboard through the different class items using the live connection and evidence was gathered by taking pictures and recordings using the wearable device. “Executing surveys and providing assistance remotely will result in a faster response time and better service when external expertise is needed,” says Wouter Boogaart, digital development manager at Anthony Veder. “Also greatly reducing lead times, as it will bring down the need to travel to a vessel and eventually also reduce the associated CO² emitted during these travels.” Benne Engelen, CIO at Anthony Veder, adds: “The development of remote surveys and remote assistance perfectly fits our innovation roadmap in which we actively strive toward smart ship solutions, closing the distance

 USE OF INNOVATIVE TECHNOLOGIES REMOVES THE NEED FOR SURVEYORS TO BE PHYSICALLY PRESENT

between our people onboard, in our office and our partners. The successful pilot marks an important milestone in the digitalisation of the maritime industry and our ambition to further develop the efficiency, sustainability and safety standards of our company.” OVER TO INDIA Elsewhere, the Indian Register of Shipping (IRClass) is taking a pragmatic approach to surveying in order to protect its own surveyors, advisors and other staff. As it says, during the Covid-19 pandemic, some ships may experience operational challenges such as the non-availability of drydocks, spares or technicians. Surveyors themselves may not be able to attend vessels because of travel restrictions or quarantines. Depending on the specific circumstances, IRClass says it may grant survey extensions as allowed by its rules and application of force majeure provisions to ships due for surveys but facing difficulties due to the pandemic. However, where possible and with flag approval, IRClass is increasingly turning to the use of remote surveys and inspections, are based on self-checks by the Master/Chief Engineer of the ship or the senior staff of the works, using the IRClass survey checklist and remote assesssment of supporting documentation, photographs/videography by an IRClass surveyor. Facilities for video conferencing including live video streaming for viewing specific sections of the ship or equipment for cross verification, are also proving to be invaluable tools for IRClass’ surveyors. “Our remote survey system is working very well indeed and is a practical and innovative way for our surveyor to carry out the emergency safety assessment of a ship around the various restrictions in place,” says Suresh Sinha, managing director of IRClass. “Our surveyors can now deal with surveys, audits and inspections from the safety of their own homes and, subject to various flag approvals, I can see remote inspections continuing to revolutionise classification services long after the Covid-19 outbreak.” www.anthonyveder.com www.irclass.org

HCB MONTHLY | MAY 2020

REGULATIONS 57

GAS WORKS

This second part focuses on some significant changes involving the transport of gases.

The UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG) held its 56th session this past 4 to 10 December with Duane Pfund (US) as chair and Claude Pfauvadel (France) sitting as vice-chair. The session was attended by experts from 18 countries and representatives from the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the

the World Health Organisation (WHO) and 20 non-governmental organisations. The session was the second of four planned for the current regulatory biennium, which will result in the adoption this coming December by the parent Committee of the changes that will appear in the 22nd revised edition of the UN Recommendations on the Transport of Dangerous Goods (alternatively

STANDARDS UPDATE The International Standardisation Organisation (ISO) arrived with its usual proposals to update the standards referenced in Part 6 relating to gas cylinders, which were agreed with some textual amendments. In 6.2.2.1.2, references to “UN tubes” and “composite tubes” will be replaced by “UN tube shells” and “composite tube shells”, respectively. The existing entry in the table for UN 11515:2013 will now expire on 31 December 20206 and a new row is added referencing the 2018 amendment. This introduces the gun fire test and revises the blunt impact test. In 6.2.2.1.8, the entry in the table for ISO

International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the Food and Agriculture Organisation (FAO),

known as the UN Model Regulations or the ‘Orange Book’). The first part of this three-part report on the December meeting in last month’s issue (HCB April 2020, page 50) covered discussions on the transport of explosives, classification and packaging, and electric storage systems.

21172-1:2015 will now expire on 31 December 2026 and a new row is added referencing the 2018 amendment, which removes the restriction on the carriage of corrosive gases in drums with dished ends. In 6.2.2.4, the first sentence is amended to read: »

MULTIMODAL • RESPONDING TO INDUSTRY, THE UN EXPERTS ADOPTED A LARGE NUMBER OF AMENDMENTS RELATING TO PRESSURE RECEPTACLES AT THEIR DECEMBER 2019 SESSION

 AN APPARENTLY SIMPLE ITEM, A GAS CYLINDER IS SUBJECT TO NUMEROUS STANDARDS AND REGULATIONS

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The following standards apply to periodic inspection and testing of UN pressure receptacles: In the first table, the existing entries for ISO 6406:2005 and ISO 10461:2005/A1:2006 will now expire on 31 December 2024. A new row is added for ISO 18119:2018. As a consequential amendment, Note 3 to 6.2.1.6.1 is amended to read: The check of internal conditions of 6.2.1.6.1 (b) and the hydraulic pressure test of 6.2.1.6.1 (d) may be replaced by ultrasonic examination carried out in accordance with ISO 18119:2018 for seamless steel and seamless aluminium alloy cylinder shells. For a transitional period until 31 December 2024 the standard ISO 10461:2005 +A1:2006 may be used for seamless aluminium alloy cylinders and ISO 6406:2005 may be used for seamless steel cylinder shells for this same purpose. In addition, the existing entry for ISO 10460:2005 will now expire on 31 December 2024 and a new row is added for ISO

10460:2018. This now provides provisions for stainless steel and aluminium alloy welded cylinders, in addition to carbon steel. The row for ISO 11623:2002 is deleted as it is not applicable after the end of 2020. PRESSURE RECEPTACLES A joint paper from the European Industrial Gases Association (EIGA), the Compressed Gases Association (CGA) and the European Cylinder Makers Association (ECMA) followed up on discussion at the previous session with a very long list of revised proposals to amend the provisions for pressure receptacles and their closures. They included a number of changes in the definitions in 1.2.1: - In the definition of “Bundle of cylinders”, “an assembly of cylinders” is replaced by “a pressure receptacle comprising an assembly of cylinders or cylinder shells” - A new Note is added under the definition of “Closure”: For pressure receptacles, closures

are, for example, valves, pressure relief devices, pressure gauges or level indicators. - The definition of “Cryogenic receptacle” is amended to read: Closed cryogenic receptacle means a transportable thermally insulated pressure receptacle for refrigerated liquefied gases of a water capacity of not more than 1 000 litres; - In the definitions of “Cylinder”, “Pressure drum” and “Tube” the word “transportable” is deleted - In the definition of “Metal hydride storage system”, “receptacle” is replaced by “pressure receptacle shell” - In the definition of “Pressure receptacle”, after “Pressure receptacle” are added the words “means a transportable receptacle intended for holding substances under pressure including its closure(s) and other service equipment and” - The definition of “Working pressure” is amended to read: (a) For a compressed gas means the settled pressure at a reference temperature of 15˚C in a full pressure receptacle; (b) For UN 1001 acetylene, dissolved means the calculated settled pressure at a uniform reference temperature of 15 °C in an acetylene cylinder containing the specified solvent content and the maximum acetylene content; (c) For UN 3374 acetylene, solvent free the working pressure corresponds to the working pressure which was calculated for the equivalent cylinder for UN 1001 acetylene, dissolved. There are also three new definitions to be added: Inner vessel, for a closed cryogenic receptacle, means the pressure vessel intended to contain the refrigerated liquefied gas; Pressure receptacle shell means a cylinder, a tube a pressure drum or a salvage pressure receptacle without its closures or other service equipment, but including any permanently attached device(s) (e.g. neck ring, foot ring, etc.); NOTE: The terms “cylinder shell”, “pressure drum shell” and “tube shell” are also used.

 THE LABELLLING OF GAS CYLINDERS IS A MATTER UNDER REGULAR REVIEW

HCB MONTHLY | MAY 2020

REGULATIONS 59

Service equipment of a pressure receptacle means closure(s), manifold(s), piping, porous, absorbent or adsorbent material and any structural devices, e.g. for handling; In 4.1.6.1.6, the first sentence is extended with the addition at the end of “and taking into account the lowest pressure rating of any component”. A new second sentence is added: Service equipment having a pressure rating lower than other components shall nevertheless comply with 6.2.1.3.1. The final sentence of 4.1.6.1.6 is deleted. In the first sentence of 4.1.6.1.10, “closed” is inserted before “cryogenic receptacle” and “P205 or P206” is replaced by “P205, P206 or P208”. In 5.2.1.7.1, third indent, and 5.2.1.6.2(a), “cryogenic receptacles” is replaced by “closed and open cryogenic receptacles”. In 6.2.1.1.1, after “Pressure receptacles”, “and their closures” is deleted. At the end of that sentence, “transport” is replaced by “transport and intended use”. In 6.2.1.1.4, at the end of the sentence, “used” is replaced by “welded”. In 6.2.1.1.5, first sentence, “cylinders, tubes, pressure drums” is replaced by “pressure receptacle shells”. In the final sentence, “shell” is inserted after “The test pressure of a cylinder”. In 6.2.1.1.6, at the beginning of the first and second sentences and in the final sentence, “Pressure receptacles” is replaced by “Cylinders or cylinder shells”. In 6.2.1.8.2, in the third and fourth sentences, “pressure receptacle” is replaced by “inner vessel”. At the end of the fourth sentence, “fittings” is replaced by “service equipment”. In 6.2.1.1.9, at the end of the heading, “pressure receptacles for acetylene” is replaced by “acetylene cylinders”. In the first sentence, “Pressure receptacles” is replaced by “Cylinder shells”, with a similar change in sub-paragraph (a). In the final sentence, “compatible with the pressure

pressure relief devices” is replaced by “excluding porous, absorbent or adsorbent material, pressure relief devices, pressure gauges or indicators”. 6.2.1.3.2 is amended to read: Service equipment shall be configured or designed to prevent damage and unintended opening that could result in the release of the pressure receptacle contents during normal conditions of handling and transport. All closures shall be protected in the same manner as is required for valves in 4.1.6.1.8. Manifold piping leading to shut-off valves shall be sufficiently flexible to protect the shut-off valves and the piping from shearing or releasing the pressure receptacle contents. In 6.2.1.3.3, “shall be fitted with devices” is amended to read “shall be fitted with handling devices”. In 6.2.1.4.1, the second sentence beginning “Pressure receptacles…” is deleted. A new 6.2.1.4.3 is inserted: Pressure receptacle shells and the inner vessels of closed cryogenic receptacles shall be inspected tested and approved by an inspection body. A new 6.2.1.4.4 is inserted: For refillable cylinders, pressure drums and tubes the conformity assessment of the shell and the closure(s) may be carried out separately. In these cases, an additional assessment of the final assembly is not required. For bundles of cylinders, the cylinder shells and the valve(s) may be assessed separately, but an additional assessment of the complete assembly is required. For closed cryogenic receptacles, the inner vessels and the closures may be assessed separately, but an additional assessment of the complete assembly is required. For acetylene cylinders, conformity assessment shall comprise either: (a) one assessment of conformity covering both the cylinder shell and the contained porous material; or (b) a separate assessment of conformity for

receptacle” is replaced by “compatible with those parts of the cylinder that are in contact with it”. In 6.2.1.2.1 and 6.2.1.2.2 “and their closures” is deleted after “pressure receptacles”. In 6.2.1.3.1, “Valves, piping and other fittings” is replaced by “Service equipment”. “excluding

the empty cylinder shell and an additional assessment of conformity covering the cylinder shell with the contained porous material. There are several changes in 6.2.1.5.1, including the addition of “and bundles of cylinders” after “closed cryogenic receptacles, metal hydride storage systems” and the »

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addition of “or recognised technical codes” after “the applicable design standards”. Further, the following new provisions are added after (j): On an adequate sample of closures: (k) Verification of materials; (l) Verification of dimensions; (m) Verification of cleanliness; (n) Inspection of completed assembly; (o) Verification of the presence of marks. For all closures: (p) Testing for leakproofness. 6.2.1.5.2 has been completely amended and will read: Closed cryogenic receptacles shall be subjected to testing and inspection during and after manufacture in accordance with the applicable design standards or recognized technical codes

(a) Testing of the mechanical characteristics of the material of construction; (b) Verification of the minimum wall thickness; (c) Inspection of the external and internal conditions; (d) Verification of the conformance with the design standard or code; (e) Inspection of welds by radiographic, ultrasonic or other suitable non-destructive test method according to the applicable design and construction standard or code. For all inner vessels: (f) A hydraulic pressure test. The inner vessel shall meet the acceptance criteria specified in the design and construction technical standard or technical code; NOTE: With the agreement of the competent authority, the hydraulic pressure test may be

(i) Verification of materials; (j) Verification of dimensions; (k) Verification of cleanliness; (l) Inspection of completed assembly; (m) Verification of the presence of marks. For all closures: (n) Testing for leakproofness. On an adequate sample of completed closed cryogenic receptacles: (o) Testing the satisfactory operation of service equipment; (p) Verification of the conformance with the design standard or code. For all completed closed cryogenic pressure receptacles: (q) Testing for leakproofness. In 6.2.1.5.3, in the first sentence “receptacles” is replaced by “pressure receptacle shells”. A new 6.2.1.5.4 is added: For bundles of cylinders the cylinder shells and closures shall be subjected to initial inspection and tests specified in 6.2.1.5.1. An adequate sample of frames shall be proof load tested to two times the maximum gross weight of the bundles of cylinders. Additionally, all manifolds of bundle of cylinders shall undergo a hydraulic pressure test and all the completed bundles of cylinders shall undergo a leakproofness test. NOTE: With the agreement of the competent authority, the hydraulic pressure test may be replaced by a test using a gas, where such an operation does not entail any danger. In 6.2.1.6.1, the text of (c) and (d) is amended to read: (c) Checking of the threads either: (i) if there is evidence of corrosion; or (ii) if the closures or other service equipment are removed; (d) A hydraulic pressure test of the pressure receptacle shell and, if necessary, verification of the characteristics of the material by suitable tests; In note 2, “pressure test of cylinders or tubes” is replaced by “pressure test of

including the following: On an adequate sample of inner vessels:

replaced by a test using a gas, where such an operation does not entail any danger. (g) Inspection and assessment of manufacturing defects and either repairing them or rendering the inner vessel unserviceable; (h) An inspection of the marks. On an adequate sample of closures:

cylinder shells or tube shells”. Note 3 is amended to read: The check of internal conditions of 6.2.1.6.1 (b) and the hydraulic pressure test of 6.2.1.6.1 (d) may be replaced by ultrasonic examination carried out in accordance with ISO 18119:2018 for seamless steel and seamless aluminium

 ISO HAS UPDATED A NUMBER OF STANDARDS RELATING TO CYLINDERS AND THEIR FITTINGS

HCB MONTHLY | MAY 2020

REGULATIONS 61

“A JOINT PAPER FROM EIGA, CGA AND ECMA CONTAINED A VERY LONG LIST OF PROPOSALS TO AMEND THE PROVISIONS”

alloy cylinder shells. For a transitional period until 31 December 2024 the standard ISO 10461:2005 +A1:2006 may be used for seamless aluminium alloy cylinders and ISO 6406:2005 may be used for seamless steel cylinder shells for this same purpose. A new Note 4 is inserted: For bundles of cylinders the hydraulic test specified in (d) above shall be carried out on the cylinder shells and on the manifold. Sub-paragraph (e) is amended and a new (f) is added: (e) Check of service equipment, if to be reintroduced into service. This check may be carried out separately from the inspection of the pressure receptacle shell; (f) A leakproofness test of bundles of cylinders after reassembly. In 6.2.1.6.2, “Pressure receptacles” is replaced by “Cylinders”. 6.2.1.7.2 is amended to read: A proficiency test of the manufacturers of pressure receptacle shells and the inner vessels of closed cryogenic receptacle shall in all instances be carried out by an inspection body approved by the competent authority of the country of approval. Proficiency testing of manufacturers of closures shall be carried out if the competent authority requires it. This test shall be carried out either during design type approval or during production inspection and certification. In 6.2.2.1.1, first sentence, “UN cylinders” is replaced by “refillable UN cylinder shells”.

In the table, the rows for ISO 11118:1999 and ISO 11118:2015 are deleted. In the notes, “composite cylinders” is replaced by “composite cylinder shells”. In 6.2.2.1.4, “UN cryogenic receptacles” is replaced by “UN closed cryogenic receptacles”. In 6.2.2.1.6, second sentence, “UN cylinder” is replaced by “UN cylinder or UN cylinder shell”. The current note is amended to read: Changing one or more cylinders or cylinder shells of the same design type, including the same test pressure, in an existing UN bundle of cylinders does not require a new conformity assessment of the existing bundle. Service equipment of the bundle of cylinders can also be replaced without requiring a new conformity assessment if it complies with the design type approval. A new 6.2.2.1.9 is inserted: The following standards apply to the design, construction and initial inspection and test of non-refillable UN cylinders except that the inspection requirements related to the conformity assessment system and approval shall be in accordance with 6.2.2.5. The table attached references ISO 11118:1999, ISO 13340:2001 and ISO 11118:2015. In 6.2.2.2, first sentence, “pressure receptacle” is deleted. In the title of 6.2.2.3, “Service equipment” is replaced by “Closures and their protection”. The first sentence will now read: The following standards apply to the design, construction, and initial inspection and test of closures and their protection: In the first table, the row for ISO 13340:2001 is deleted. In 6.2.2.4, the first sentence is amended to read: The following standards apply to periodic inspection and testing of UN pressure receptacles: In 6.2.2.5, 6.2.2.5.1 is renumbered 6.2.2.5.0 and a new Note is added at the end: In this subsection when separate assessment is used the term pressure receptacle shall refer to pressure receptacle, pressure receptacle shell, inner vessel of the closed cryogenic receptacle or closure, as appropriate. A new 6.2.2.5.1 is added: The requirements of 6.2.2.5 shall be used for the conformity assessments of pressure receptacles. Paragraph 6.2.1.4.3 gives details »

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of which parts of pressure receptacles may be conformity assessed separately. However, the requirements of 6.2.2.5 may be replaced by requirements specified by the competent authority in the following cases: (a) conformity assessment of closures; (b) conformity assessment of the complete assembly of bundles of cylinders provided the cylinder shells have been conformity assessed in accordance with the requirements of 6.2.2.5; and (c) conformity assessment of the complete assembly of closed cryogenic receptacles provided the inner vessel has been conformity assessed in accordance with the requirements of 6.2.2.5. The text of 6.2.2.5.4.9(c) is replaced by: As required by the pressure receptacle standard or technical code, carry out or supervise the tests of pressure receptacles as required for design type approval. A new sentence is added at the end of the penultimate paragraph of 6.2.2.5.4.9: If it was not possible to evaluate exhaustively the compatibility of the materials of construction with the contents of the pressure receptacle when the certificate was issued, a statement that compatibility assessment was not

In 6.2.2.7, the Note is amended by adding “and marking requirements for closures are given in 6.2.2.11” after “6.2.2.9 and marking”. A new note is added at the end of 6.2.2.7.2(b): For acetylene cylinders the standard ISO 3807 shall also be marked. A new note is added after 6.2.2.7.2(e): When an acetylene cylinder is conformity assessed in accordance with 6.2.1.4.3 (b) and the inspection bodies for the cylinder shell and the acetylene cylinder are different, their respective marks (d) are required. Only the initial inspection date (e) of the completed acetylene cylinder is required. If the country of approval of the inspection body responsible for the initial inspection and test is different a second mark (c) shall be applied. A new note is added at the end of 6.2.2.7.3(i): When a cylinder shell is intended for use as an acetylene cylinder (including the porous material), the working pressure mark is not required until the acetylene cylinder is completed. In 6.2.2.7.3, paragraphs (k) and (l) are replaced as follows: (k) In the case of cylinders for UN 1001

last digit followed by the letters “KG”. At least one decimal shall be shown after the decimal point. For pressure receptacles of less than 1 kg, the mass shall be expressed to two significant figures rounded down to the last digit; (ii) the identity of the porous material (e.g.: name and trademark); and (iii) the total mass of the filled acetylene cylinder in kilograms followed by the letters “KG”; (l) In the case of cylinders for UN 3374 acetylene, solvent free: (i) the tare in kg consisting of the total of the mass of the empty cylinder shell, service equipment (including porous material) not removed during filling and any coating expressed to three significant figures rounded down to the last digit followed by the letters “KG”. At least one decimal shall be shown after the decimal point. For pressure receptacles of less than 1 kg, the mass shall be expressed to two significant figures rounded down to the last digit; (ii) the identity of the porous material; and (iii) the total mass of the filled acetylene cylinder in kilograms followed by the letters “KG”;

completed shall be included in the design type approval certificate.

acetylene, dissolved: (i) the tare in kilograms consisting of the total of the mass of the empty cylinder shell, the service equipment (including porous material) not removed during filling, any coating, the solvent and the saturation gas expressed to three significant figures rounded down to the

A new note is added after 6.2.2.7.4(n): If the manufacturer of the acetylene cylinder and the manufacturer of the cylinder shell are different, only the mark of the manufacturer of the completed acetylene cylinder is required. In 6.2.2.8, “pressure receptacles” is replaced by “cylinders” several times.

 WITH BILLIONS OF CYLINDERS IN USE AROUND THE WORLD, ANY CHANGE HAS TO BE CRITICAL

HCB MONTHLY | MAY 2020

REGULATIONS 63

In 6.2.2.10.1, “cylinders” is replaced by “cylinder shells” and a new second sentence is added: Individual closures in a bundle of cylinders shall be marked in accordance with 6.2.2.11. A new 6.2.2.11 is added: Marking of closures for refillable UN pressure receptacles For closures the following permanent marks shall be applied clearly and legibly, (e.g. stamped, engraved or etched): (a) Manufacturer’s identification mark; (b) Design standard or design standard designation; (c) Date of manufacture (year and month or year and week) and (d) The identity mark of the inspection body responsible for the initial inspection and test, if applicable. The valve test pressure shall be marked when

it is less than the test pressure which is indicated by the rating of the valve filling connection. OTHER BUSINESS An informal document from Germany sought to more closely define the conditions under which pressure relief devices for pressure receptacles should be triggered or must not yet be triggered, offering two suggested amendments. The Sub-committee noted that there are existing provisions at national and regional level on operating temperatures but encouraged delegations to send comments to Germany so that the issue could be pursued. The third and final part of this report on the UN Sub-committee’s December 2019 session in next month’s HCB will cover the remaining discussions, which included further significant amendments to the UN Model Regulations.

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BEAT THE CLOCK REPORT • BADGP’S ANNUAL SEMINAR OFFERED ITS USUAL MIX OF REGULATORY UPDATES AND OTHER PRESENTATIONS OF IMPORTANCE TO DGSAS, TRAINERS AND OTHER EXPERTS

there will need to be some technical updates to UK legislation. These are scheduled to appear in the Carriage of Dangerous Goods (EU Exit) (Amendment) Regulations 2020.

The British Association of Dangerous Goods Professionals (BADGP) held its 2020 AGM and annual seminar this past 12 March. With the coronavirus epidemic beginning to spread, there were several apologies for absence, although some 80 members made the trip to the Windmill Village Hotel in Coventry to hear what the presenters had to say before the lockdown, in support of BADGP’s mission to provide information and guidance to all those involved in the transport of dangerous goods by road, rail, sea and air.

Helen North, head of frameworks and engagement at the Dangerous Goods Division of the UK Department for Transport (DfT), highlighting upcoming regulatory changes. Helen’s team includes engineers and researchers who engage with industry and who guide domestic transport legislation. All team members are now required to qualify as Dangerous Goods Safety Advisers (DGSAs). Helen’s team is also responsible for negotiating at international meetings on behalf of the UK. She noted that, of the 267

LOOKING AFTER BREXIT One example of the changes that will be needed regards the marking of UK-manufactured transportable pressure equipment. Post-Brexit, the UK will no longer be able to use the EU’s ‘pi’ mark, mandated under the Transportable Pressure Equipment Directive (TPED). A UK equivalent mark will be needed: it has been suggested that the UK uses the next letter in the Greek alphabet after pi, rho – though rumours that this suggestion came from Roh Hathlia, head of the Dangerous Goods Division, remain unconfirmed. After the Brexit process is complete, the UK will not have automatic access to the European Commission, so a new CDG (Derogation) (Amendment) Regulations 2020 will be needed

It was appropriate, therefore, that the seminar began with a presentation from

papers submitted to the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG), WP15 and other bodies, 32 – or 12 per cent – were submitted by the UK. Helen reassured the audience that the UK will maintain the status quo ante as regards the application of ADR after Brexit; however,

to enable the UK to apply to the Commission for approved derogations from ADR. It is intended that all derogations will be timelimited. One item on the agenda will be temporary derogations to help deal with the shortage of drivers as a result of Covid-19 during the Brexit transition period, to maintain

 DFT’S ENGINEERS ARE WORKING ON SEVERAL ISSUES RELATING TO ROAD TANKER SAFETY

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essential supplies and help clear hospitals of medical waste. Helen acknowledged that industry is faced with difficulties in interpreting the various amendments to the Carriage of Dangerous Goods etc Regulations (CDG). DfT is aiming to consolidate these amendments as far as practicable and a wholesale review of CDG is planned, which will include DfT guidance documents, based on consultation with industry. She urged transport operators to respond to this consultation to ensure that the changes meet the needs of industry. This programme of review will include the work done by DGSAs. Assistance and guidance for new DGSAs is being considered, as is an audit of annual DGSA reports, and it is possible that DGSAs will be asked to provide examples of their annual reports for a review of standards. Alongside the legal work, the Division’s engineering team works with EU partners on long-term research projects. One such project is a study to improve the design and non-destructive testing of road tanks to improve accident damage resistance and to prevent boiling liquid expanding vapour explosions (BLEVEs). A related study examines the current effectiveness of the regulations in maintaining agreed ADR standards in tank, tank vehicle and pressure cylinder manufacture and certification. Member states have also raised 25 issues of concern regarding design and use of vacuum operated waste tank vehicles, making a review of Chapter 6.10 of ADR a top priority.

preventing them from being used as weapons. Site security inspections take place every three to four years, although this is expected to reduce to two to three years soon. Angus explained the stepped approach to compliance, starting with guidance and advice but with the potential of prosecution of facilities that refuse to implement appropriate preventative measures. Key aspects of good security include pre-employment checks, not relying on personal recommendations, leaver checks – insistence on returning keys and branded safety equipment - and changing codes regularly. Security training for drivers should be in addition to the five-yearly driver training and depot staff must be included, and training should be recorded. Angus noted that site inspections reveal some common security lapses: out-of-date plans; a lack of recorded of changes of personnel and contacts; missing dangerous goods information; and security risk assessments that focus on issues at the main site while ignoring subsidiary facilities and the road transport between them.

Angus reminded the audience that the DfT website provides security plan guidance, checklists and training resources, and that first-hand help can be obtained from Counter Terrorism Safety Advisers (CTSAs) in the local police forces. A DGSA IN PORTUGAL An external view of the dangerous goods business was provided by two speakers from Portugal: trainer João Cezília and José Alberto Franco, former chair of WP15. It was Portugal’s ratification of the ADR Agreement in December 1967 that provided the requisite number of signatories to allow it to enter into force across Europe, which it did in 1968, and Portugal held the chair of WP15, the body that oversees the development of ADR, from 1995 to 2018, so the country has had an important role. Under its chairmanship, WP15 achieved the major restructuring of ADR in 2001 and the harmonisation of the limited quantity provisions in 2011. Portugal’s DGSAs reorganised themselves in 2016 and joined the multi-agency Safety/ Security Association of Portugal (APSEI), »

STAY SECURE Angus Preville of DfT’s Land Transport Security Division, which is responsible for inspection and compliance of site transport security planning, Angus reminded the audience of the lethal terrorist events in the UK recently, and that the current risk level is at ‘substantial’. The purpose of site security plans is to deny terrorists access to dangerous goods,

 THE UK ALREADY HAS A NUMBER OF ESTABLISHED DEROGATIONS FROM THE ADR PROVISIONS

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whose membership includes government agencies, road transport firms and trade unions, to create a group dedicated to the promotion of safety in the transport of dangerous goods. APSEI is currently in the process of joining the European Association of Safety Advisers (EASA). In Portugal, DGSA training for ADR is carried out by three government-authorised companies, and there is one for rail transport. Candidates attend mandatory training and examinations are held monthly. In 2019, 100 new DGSAs were certified and 141 were re-certified. All companies with a DGSA must be registered; at the end of 2019 there were 1,634 such companies and 984 certified DGSAs. Portugal has a specific format for the DGSA annual report; this must identify the name of the DGSA, the type of activities carried out by the company, the classes of dangerous goods moved, loaded and unloaded, the quantities of bulk and packaged dangerous goods, the personnel involved, the number of vehicles, wagons and containers, company procedures, any incidents, and the identity of sub-contractors.

The annual report is currently held by the originating company but APSEI has proposed the creation of an electronic version to allow reports to be submitted to a central body for statistical analysis. João pointed out that Portugal still has a big influence at WP15; it was Portugal that proposed to drop the word ‘European’ from the title of the ADR Agreement, to open it up to states from around the world. Although that move had been resisted by some European governments for ten years, this time the idea found favour and it was ratified by a Conference of Parties in May 2019; the change will take place with the 2021 edition. WASTE NOT, WANT NOT An engaging presentation introduced the audience to Curium SA, a specialist in dealing with high-risk transport of waste dangerous goods. Clara Schaad and Billy Pasquier described the support that Curium can provide through its international team of highly qualified and experienced consultant gas and chemical engineers currently operating in Europe, China and Africa. The

service can provide technical and legal advice from R&D through production to transport. Billy, based in France, manages gas and emergency response projects and described Curium’s role in the French Transaid emergency network. In France Curium provides 24/7 level 1, 2 and 3 response including roadside dangerous goods assistance to national emergency responders. Its forte is repackaging and removing spilled chemicals, and includes mobile gas liquefaction equipment used to empty gas tankers immobilised in road traffic incidents. Billy described how Curium deals with interesting waste recovery and clean-up operations that require very high levels of skill and chemical expertise, including removal of an ancient dump of white phosphorus shells found in Italy. But surely the most bizarre recovery operation anywhere was the removal of two tonnes of lithium found floating inside a huge metal ball off a beach in the south of England. TAKING RESPONSIBILITY The day’s final presentation came from Michael Yarwood, managing director of the TT Club’s loss prevention department, who spoke about the MSC Flaminia incident and its impact on the dangerous goods regulations. This incident has been written about at length in these pages but, for a brief recap: the containership MSC Flaminia sailed from New Orleans for Europe in June 2012; smoke was seen coming from a cargo hold, which subsequently suffered an explosion that killed three crew; fire took hold, burning for many weeks while the ship drifted in the Atlantic Ocean. Now, after years of claims and counterclaims, a New York court has determined that the explosion was caused by the autopolymerisation of divinyl benzene (DVB) shipped in tank containers below the deck. Having established the cause, the court then set about apportioning responsibility between the shipper, the forwarder, the NVOCC, the ship operator and the shipowner.

 THE TRANSPORT OF HAZARDOUS WASTES IS A SPECIALISED SECTOR OF THE BUSINESS

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In brief, the court found that the carrier is entitled to assume that cargo offered to his ship is manufactured and packaged in a condition that would allow it to be safely delivered to an overseas destination with no danger greater than those required to be detailed in the International Maritime Dangerous Goods (IMDG) Code. Further, if such danger exists, the shipper has a common law duty of care to provide “sufficient and relevant information” to warn the carrier of that danger, and there is nothing in the IMDG Code to prevent the shipper doing so. Subject to appeal, the shipper (Deltech) and NVOCC/tank operator (Stolt Tank Containers) have been found liable for shipowner’s and ship operator’s losses reported to be in the region of $260m. This is a complex case and there were many decisions and actions that could have taken a different course and prevented the disaster. But the key message, Mike said, is that

“THE UK WILL MAINTAIN THE STATUS QUO REGARDING ADR POST-BREXIT BUT THERE WILL NEED TO BE SOME TECHNICAL UPDATES TO UK LEGISLATION”

shippers must not only train employees to be competent, appoint competent contractors and maintain operating systems that ensure that cargo is delivered to the ship in a safe condition, they must ensure that documentation fully and accurately identifies the hazards of dangerous goods and is presented to the carrier in a manner that allows him to assess and act on that information. The business of BADGP’s AGM also involved a change at the top. Caroline Raine announced that she was stepping down as chair of the Association and that her position would be taken by Mark Spence, an independent consultant and DGSA, formerly with Fortec Distribution and Geodis UK. Mark takes the helm as BADGP enters its second decade. Caroline will stay on as a member of the BADGP Committee and will continue her role as editor of its newsletter, a very useful source of information for all involved in the industry. www.badgp.org

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68 BACK PAGE

NOT OTHERWISE SPECIFIED GONE FISHIN’ Here on the Back Page we are aware that there are probably some of you who enjoy fishing, though we cannot see a great deal of difference between ‘going fishing’ and ‘sitting by a canal looking vacantly into the distance’. Still, whatever floats your boat. But it is, like many other things, a pastime not without its hazards. Indeed, only two months ago the Smolensk regional disaster response service in Russia was called to a house explosion in the village of Rakovka, where they found four men lying injured, three of them seriously hurt. A spokesperson for the emergency services revealed that the explosion happened when the four men were making an improvised explosive device for a fish hunt the next day. We understand that no fish were hurt in the making of this story. ALCOHOL ON TAP The Settecani brewery in Modena, Italy reported a technical fault in March. Somehow – and we are pointing no fingers – one of its wine silos was mistakenly connected to the mains water supply. The brewery also makes Lambrusco wine, which is, as we recall from the 1980s, lightly sparkling. Because of this characteristic, the wine displaced the water in the pipes and ran into the local water supply. As a result, some residents in the Castelvetro area of the city woke up one day to find wine pouring out of their kitchen taps, rather than water. “Some villagers were delighted by the error and began bottling as much of the free wine as they could to enjoy later,” reports said – even Italians balk at drinking too early in the day, even if it is only Lambrusco.

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The local council issued an apology and corrected the mistake, which caused more fuss as some residents then complained that they had fixed it too quickly. SMOKING STILL KILLS Thanks to our friends from the Darwin Awards for dredging this story out of the Bild archive. It takes us back to March 2018, in Haltermam-See in the German state of NordrheinWestfalen, when an elderly woman died of burns. The 71-year old, already a patient at the local hospital and confined to a wheelchair, was outside taking a smoke break when her oxygen ventilator caught fire. The cause of the fire is said to be ‘unknown’ but we have heard plenty of stories like this before involving oxygen and lit cigarettes. In the end, it wasn’t the ventilator fire that did for her: the flames spread to the plastic cushioning of the wheelchair itself and, despite the best efforts of nurses to suffocate the flames and the rescue helicopter that whisked her away to a burns unit in nearby Bochum, the lady in question died of her injuries. OUT WITH A BANG Finally, another one from the archives: in May 2009 a man in Utah found a stash of dynamite in a barn on his ranch – it is not clear whether it was his or was related to the nearby booster rocket testing area. Whatever, he decided the best way to dispose of the ageing dynamite would be to take it out into a field and fire a shotgun at it. Presumably he thought he was a safe distance away; certainly he was wrong. Shrapnel from the blast hit him square in the head and killed him on the spot.

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HCB Magazine May 2020

Articles inside

What we missed at BADGP seminar

UN experts make Class 2 changes

Remote surveys are here to stay

North P&I alert on bauxite by-product

Consafe adds DGOffice modules

News bulletin – chemical distribution

Incident Log Candy store

Conference diary

Exis online courses come into their own

Bodo Möller sets up bigger hub

Stolt-Nielsen warns of upcoming slump

News bulletin – tanks and logistics

ClearMetal gives end-to-end visibility

Tank container guidance from TT Club

ILTA provides a lifeline for members

Best practice on visibility from ECTA

News bulletin – storage terminals

Vopak sees little market impact

VOLUME 41 • NUMBER

Crisis threatens expansion plans

30 Years Ago

View from the Porch Swing Response and recovery

NCEC advice on Covid-19

Letter from the Editor

GPCA appeals for global action

Learning by Training