HCB Magazine November 2020

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EDITOR’S LETTER

The idea of ‘collaboration’ has a chequered history. During World

That collaboration extends up and down the supply

War II, collaboration was a by-word for ‘sleeping with the enemy’

chain too. Petrochemical manufacturers want to show

(at least metaphorically), and ‘Vichy’ and ‘Quisling’ became

themselves to be part of the solution, not the problem,

synonymous with national treachery.

and in order to be able to give the figures needed to support

In the business world, too, ‘collaboration’ was a concept only

that claim, they will need their logistics partners to be on

whispered, raising as it did ideas of anti-competitive behaviour,

the same track. Indeed, in a number of examples provided

the sort of thing that would bring down the wrath of anti-trust

in this issue of HCB, there are very specific illustrations

authorities. More than once I was warned off using the word by

of the new way of companies helping each other to achieve

trade associations wary of overstepping the mark, alert to the

the decarbonisation targets being set. In passing, one

fact that some senior executives had spent time in prison and

may wonder why some shippers are still using flexitanks,

companies heavily fined for breaches of standards.

a single-use plastics bag that presents significant

So it has been quite a change to see the word ‘collaboration’

disposal issues.

bandied about freely during recent conference discussions. Those

Another salient finding from the debate about achieving

same senior executives now have no compunction in promoting

a net-zero future has been the role of digitisation in providing

the idea of working together along the supply chain and across

the level of transparency needed to figure out exactly how

industry horizontals, despite the fact that market capitalism

each company’s emissions performance is progressing.

(at least on the face of it) shuns the very idea.

That transparency can also directly feed into emissions

Why the change in attitude? The answer is not hard to find.

The petrochemical industry, as with its upstream cousin in the

reduction by improving asset utilisation and reducing waste in the logistics function.

oil refining sector, is faced with navigating an immense transition.

And industry is being pressed to make the transformation

The UN, the EU and national governments around the world are

at a time when operations are uncertain due to the Covid-19

foisting upon industry aggressive targets for decarbonisation,

crisis and, as many now expect, a deep and long economic

which for a hydrocarbon-based sector are raising serious

recession to follow.

questions about how those targets are to be met.

During last month’s virtual EPCA Annual Meeting, CEO after

However it pans out, EPCA was probably right to ask its speakers to discuss how industry – and the world at large –

CEO talked about the need for industry to work together to find

can re-emerge into a post-pandemic environment that is

the solutions that will be needed to achieve the level of carbon

smarter, more resilient and more sustainable than the ‘old

reduction required. And not just work within the industry but to

normal’ that came before. The petrochemical industry has the

work with regulators to establish the sorts of regulatory and policy

tools and the experience to help make that future a reality.

frameworks that will enable them to focus on the path forward.

Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 41

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NUMBER 10

UP FRONT Letter from the Editor 30 Years Ago Learning by Training TANKS & LOGISTICS Steer this ship Reporting back from EPCA Smart bulk New approach from Van den Bosch Excelling in Asia Den Hartogh invests in China Internal affairs Fort Vale’s new PFA-lined valves Cost conscious Stolt-Nielsen improves profitability News bulletin – tanks and logistics SUSTAINABILITY In charge of change Antwerp a hub for innovation Clean up the world OCS programme gets attention Full fuel flexibility Odfjell investigates fuel cells On the move UKPIA on downstream role

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

Waste not, want not Dawson provides home for alternative fuel 32 DIGITISATION Rail revolution Railvis.com shows the way Clean the wheels Nexxiot improves rail visibility The cap fits Packwise trials Smart Cap for IBCs STORAGE TERMINALS On the rack OPW answers coupler challenges All join hands Vopak invests with friends Debating club Looking forward to Med Hub Day News bulletin – storage terminals CHEMICAL DISTRIBUTION Barentz buys Maroon Consolidation continues Big in Brazil Tovani doubles in size Two-part harmony Brenntag lays out new strategy

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Bouncing back CBA reports increased sales in UK News bulletin – chemical distribution

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COURSES & CONFERENCES Online for sailors American Club/ABS e-learning Conference Diary

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SAFETY Incident Log An emerging hazard Maersk Honam incident report

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REGULATIONS Screen time Labeline puts Roadshow on the web

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BACK PAGE Not otherwise specified

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30 YEARS AGO A LOOK BACK TO NOVEMBER 1990

The November 1990 issue of HCB was another chunky number, with plenty of regulatory updates to provide to readers and some lengthy coverage of the gas shipping sectors ahead of the Gastech show that was to take place in Amsterdam in the first week of December. HCB took the opportunity to publish its first comprehensive survey of LPG tanker fleets in the three different sectors, alongside a close examination of the growing LNG tanker sector.

This should perhaps not have come as too much of a surprise.

After all, HCB’s founding editor Mike Corkhill, still in charge after ten years, had studied naval architecture and specialised in gas tankers.

The November issue also included HCB’s by now regular review of the tank container manufacturing sector, where we noted that there had been a fall in output in 1990 as the impact of the 1988 financial crisis was being felt among the client industries. That was especially true of standard units, though demand in the industrialised world was trending more towards more sophisticated tanks.

Younger readers with an interest in tank containers may be surprised at what we predicted back in 1990: “Only the European and South

The leading manufacturers in the 1990 list – Van Hool, BSLT, Arbel Fauvet Rail, Consani, WEW and CPV, for example – are now hardly mentioned or are no longer in existence.

Another name unfamiliar to many these days would be Van Ommeren Ceteco (VOC), which had just sold its tank container operation to Stolt Tank Containers (STC), expanding the STC fleet to some 3,600 units and taking it into the gas tank sector for the first time. VOC was part of Royal Van Ommeren, which a few years later (and not at the first time of trying) merged with Royal Pakhoed to form Royal Vopak. Vopak has since spun off or sold off all its interests in activities other than bulk liquid and LNG storage.

In the regulatory arena, the experts had once more been busy and, as HCB said at the time: “Those who think the dangerous goods transport regulations are reaching maturity, reflect again. The UN experts have a work programme which already stretches will into the 1990s.”

One major issue the UN experts were wrestling with was the large number of generic and NOS entries in the Dangerous Goods List as a result of the revised nomenclature in Divisions 4.1, 4.2, 4.3 and 5.1

African manufacturers are geared up to the production of both these special tanks and series of standard units at competitive prices.

New builders in the Far East and North America will undoubtedly emerge in the years ahead but they will be more concerned with domestic rather than world markets.”

We could not have been more wrong – since then Chinese manufacturers have come to dominate the sector, even for ‘specials’.

of RID and ADR. At the July 1990 session of the UN Sub-committee, an intense argument ensued, with the US in particular being opposed to the proliferation of entries that would, it felt, make no positive contribution to safety. As ever, though, the fact that the US was outnumbered at the UN by RID/ADR countries led to its opposition being overcome. Looking back, though, perhaps the US delegation had a point.

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LEARNING BY TRAINING

By Arend van Campen

PROPORTIONALITY AND UTILITARIANISM

September has come and, although it is still quite warm in Central Europe, cold fronts can be expected any time now. The weather is unpredictable, something that was confirmed by Lorenz who, by trying to mathematically compute weather patterns, accidently ended up by discovering the butterfly effect. And this is how I see our business of trading, shipping or storing hazardous cargoes.

A better synonym for unpredictability would be unreliable behaviour. By this I mean the erratic actions of legislators and governments that have damaged our usual ways of business, therefore jeopardising many livelihoods of numerous people and likely implosion of supply chains. They are doing that to ‘save lives’ and make sure that intensive care capacity is not being overrun. Perhaps that was valid during the first three months of the Coronavirus outbreak, but the continuation of literally suffocating (face masks) and locking down entire nations are proving to be detrimental to incomes, which are needed to stay alive.

So, preserving life for some is being paid for by the lives of the many. This is contradicting utilitarianism, a philosophy initiated by Jeremy Bentham that would form the basis for decision making by looking at the greater good for the greatest number of people.

As a cybernetician I am looking for information that would explain or justify such harmful effects on people, the economy and social cohesion. People must be allowed to run their shops, hotels, bars or companies freely, without being shut down. We’d have to test the golden rule that was asked by Immanuel Kant. Questions could be based on his categorical imperative, addressing the issue so that choice and decisions can be tested. The golden rule: ‘do not do to others what you do not want others to do to you’ precedes and always must be the first reflective and rhetorical question.

Obviously, this rhetorical question seems not have been asked by the politicians and virologists who have been given to powers to decide if your business may survive or not. They usually do not run companies or are dependent on monthly revenue, because they receive a guaranteed, monthly salary. Unfortunately, I can certainly observe that harmful decisions are not made by wise and reflective individuals, but driven by fear and diverse ulterior motivations. This is very dangerous indeed, not just for business, but for all life on earth.

You may disagree with what I am writing here, but as long as we are not given all the answers and our questions are not being answered, our future business outlook stays much more unpredictable than needed. It is time to choose; continuity of business or hardship for

We can easily synthesise that this preferred proportionality is either overlooked or categorically ignored. It is quite disconcerting that people all over the world are facing a dilemma, but one thing we must not accept without being given some answers and that is why our businesses, thus the chances for survival of healthy people are being sacrificed for the lesser good, and not for the greater good?

the many.

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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HCB MONTHLY | NOVEMBER 2020

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STEER THIS SHIP CONFERENCE REPORT • EPCA’S VIRTUAL ANNUAL MEETING LACKED THE USUAL NETWORKING BUT DELIVERED PRESENTATIONS OF THE HIGHEST QUALITY AND SIGNIFICANCE FOR DECADES NOW, the petrochemical industry has been bent on growth, expanding its market around the globe and into new end-user sectors. In the past couple of decades, that growth has had to be tinged with increasing expectations of environmental care and, more recently, with new targets for sustainability, decarbonisation and a move towards a circular rather than linear economy.

Over that period, operators in Europe – and beyond – have been able to lean on the experience and learning opportunities provided

has always offered the latest thinking in the trends that are affecting petrochemical producers as well as a gathering point where senior executives can give their thoughts and where their teams can get on with the business of doing business.

EPCA’s 54th Annual Meeting, scheduled to take place in Budapest at the start of October, was, though, a casualty of this year’s black swan event: the spreading Covid-19 pandemic.

EPCA made an early decision not to hold the Annual Meeting in person, which was

by the European Petrochemical Association (EPCA), whose Annual Meeting in particular

bad news for hoteliers and restauranteurs in Budapest as well as for the thousands who were looking forward to turning up and meeting their colleagues, suppliers and customers. But, having taken on board discussions at recent Annual Meetings about the potential for digital techniques to provide

 EUROPE’S PETROCHEMICAL INDUSTRY COULD NOT MEET IN PERSON BUT GATHERED ONLINE

help in maintaining operations, EPCA followed other event organisers in taking this year’s Annual Meeting online.

EPCA’s Community app has been developed to keep its members in touch with one another and with the broader industry and so the ‘virtual’ Annual Meeting this year focused on presentations that would normally form the business sessions during the actual event.

Those were as thought-provoking as ever and the IT held up pretty well to enable discussion and debate, while also giving the audience the chance to question the presenters and get immediate answers. In addition, and again in common with other recent events that have been forced into cyberspace, the presentations are available on the EPCA website for those members who have registered.

STEP OUT OF THE CRISIS It cannot be said that this year’s EPCA Annual Meeting was the same as those that have gone before but then nothing is the same in this most unusual of years. But, as EPCA CEO Caroline Ciuciu said during her introduction to the first of three days of online presentations, EPCA has been the primary business network in Europe for the petrochemical industry worldwide for more than 50 years and is not

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about to let the Covid-19 pandemic stop it continuing to perform that valuable role.

The online EPCA Annual Meeting offered the chance for members to “step out of crisis mode for a moment”, Ciuciu said, and, with the help of expert speakers, to consider how industry will move forward in a post-pandemic world. The critical question, she said, is this: how can the petrochemical industry contribute to a smarter, circular and more inclusive economic re-emergence in an environment driven by climate change?

“How do we equip ourselves to face the new challenges post-pandemic with the same vigour we faced the crisis?” she asked.

And how can industry do that while facing up to aggressive moves by the EU, through its new ‘Green Deal’, to bring a low-carbon future ever closer?

The petrochemical sector is no stranger to operating in a volatile environment and has learned that effective leadership is key if it is to continue to prosper. To examine how leadership has coped during the pandemic, EPCA had invited four senior executives from the petrochemical industry to take part in

 MANUFACTURERS PIVOTED SWIFTLY TO SUPPLY THE PRODUCTS NEEDED DURING THE PANDEMIC

the ‘C-Suite Leadership Forum’, which constituted the business session for the first day of the Annual Meeting on 5 October.

Introducing the session, moderator Karin Helmstaedt stressed that the world we are living in this year is the ‘new normal’ and that we just have to keep calm and deal with it.

The petrochemical sector is well placed to adapt to this new environment and there have been plenty of examples of companies pivoting in response to changing markets.

There had been plenty of momentum on other issues evident at last year’s EPCA Annual Meeting, she said, and it is vital to keep that going. Furthermore, while the EU’s Green Deal might seem a challenge, industry has a lot of opportunity to shape how it will work.

EPCA president Marc Schuller, COO of Arkema, had a similar story to tell. In recent years the EPCA Annual Meeting has focused on the reinvention of the European petrochemical industry, in partnership with its international colleagues, for continued growth. “But no one expected the level of reinvention that would be required,” he said. Those trends that were evident last year are still there and will need to be addressed post-pandemic: an ageing population, the demand for a circular economy, the possible threat of ‘reshoring’, and coping with the energy transition over the next 30 years.

“All change presents risk,” Schuller said, “but the risk of doing nothing is greater.”

The Covid-19 pandemic has offered a catalyst to speed up changes that were already in train and the post-pandemic new normal will involve constant change – it is impossible to find an end point.

BUILD BACK BETTER Introducing the speakers, Helmstaedt challenged the panel to explain how the petrochemical industry can help the world to “build back better”. The first speaker, Martin Brudermüller, CEO and chief technology officer of BASF, said that, even without the pandemic, industry is looking at a range of challenges that have not been seen for some time, especially the growing conflict between the US and China. He expects that global competition will be even more fierce post-Covid and said that Europe still has to find a role in the world.

The EU’s Green Deal – an “unprecedented political project,” as he termed it – will place new and fundamental restrictions on the chemical industry’s business and dealing with both that and the coming energy transition will likely mean that margins will stay depressed. But the industry cannot just sit back and complain – it has to be part of the solution and, while it’s about it, make sure that politicians and the public are aware of that.

BASF has developed its own strategy for the current and upcoming challenges. First is a focus on operational excellence, driving operating expenses to the edge to get the most out, while understanding that it is necessary to allow investment to drive transformation. This is, Brudermüller said, crucial for all companies.

Second is making ‘chemcycling’ a reality.

Industry makes a lot of noise about circularity but there has been little in the way of concrete action, Brudermüller said. It is vital for industry to stay ahead of regulation in this matter, which will mean it will continue to have a licence to operate. The petrochemical industry, he reasoned, has to be an enabler and “a friend of the Green Deal”. He described the circular economy as an opportunity; those that oppose it will be out of business. »

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Thirdly, BASF is using innovation in its push towards a low-carbon economy, something that Brudermüller said has to be at the top of the agenda. The necessary technology is not there yet and BASF is working hard, both on its own and with partners, to develop it. As an example he described the electrification of some of the company’s furnaces, which he said is “an exciting development”. There must also be a new approach to carbon management, to keep it in the system.

Creating transparency is the fourth imperative. Maintaining credibility is important so that customers know what chemical producers are doing. BASF has now calculated a carbon footprint for each of its products, which is provided to its customers.

Finally, Brudermüller said, “Do good and talk about it.” Trust in the industry is weak and it has to make a case for chemicals and get out of “complaining mode”. Since the EPCA Annual Meeting, Brudermüller (below) has been appointed president of the European Chemical Industry Council (Cefic) and will be in a good position to drive that message home in the industry.

LET’S COLLABORATE A transatlantic perspective was offered by Jim Fitterling, chairman/CEO of Dow. He began by saying that it seems foolish to try and look beyond the next few weeks but the signs are there. The pandemic has led to a retrenchment and a new focus on being leaner. This has led to accelerated restructuring, plant closures and delayed

“TRUST IN THE CHEMICAL INDUSTRY IS WEAK AND IT NEEDS TO MAKE A CASE FOR CHEMICALS”

point to an increase in the price of naphtha, he suggested, and a likely move by refiners into the production of base chemicals.

“The long-term fundamentals are robust but there are a lot of challenges,” he added.

Meanwhile, consumer behaviour and expectations are changing. There is growing demand for more sustainable, circular products. Industry has all the ingredients to be able to change and deliver those products, Casparie said, “not because we have to but because it’s the right thing to do”.

investment. Operating expenditure is at new lows and capital expenditure is at a premium.

The entire industry is focusing on its core strengths, which has forced a very quick pivot, he added.

But no challenges come without opportunities and those that prosper in the post-pandemic world will be those agile enough to capture them. The pandemic has accelerated trends in environment, social and governance (ESG) and digitisation and strengthened the view that ESG is crucial. All customers are pressing for more sustainable product. Dow has responded by setting new sustainability targets, including reduced carbon emissions and closing the loop on plastics.

This will, Fitterling said, “unleash an unprecedented level of collaboration” both horizontally and vertically.

Digitisation has shown its worth during the pandemic and, Fitterling added, data is the new raw material. The abilities provided by smart digital systems will be an advantage for some companies.

Thomas Casparie, executive vice-president of Shell Chemicals, said that the Covid-19 crisis has made the chemical industry’s critical

CHANGE IS NEEDED The chemical industry is one of the largest emitters of greenhouse gases and this has to change, Casparie stressed. There has been some progress but much more is needed, hence Shell’s pledge to become carbon-neutral by 2050. It also has a role in helping its client industries move to net-zero. A first step on this road is to improve energy efficiency at existing plant; Casparie reported that Shell’s Moerdijk plant is now producing the same volume of product with half the number of furnaces as it used to. It is also looking at introducing hydrogen as fuel for furnaces at other sites.

Shell also wants to be part of the solution to the problem of plastics waste, Casparie continued. Plastics material needs to have a value if it is not to just be discharged to the environment at the end of its use. Shell is currently working on using waste plastics as feedstock and is anticipating taking 1m tonnes a year out of disposal by 2025.

Collaboration is also going to be key.

Innovation and risk sharing within the industry is an obvious move but this needs to go wider, bringing in authorities, NGOs and other interests. The chemical industry has to stop merely objecting to government policies and start playing a role with regulators to incentivise plastics recycling, Casparie said.

The fourth speaker was Bernard Pinatel,

role in society even more apparent, especially as manufacturers reacted quickly to deliver the products needed to cope with the pandemic.

But the economic impact will likely increase the depth and length of the trough the industry is already in. The supply side is also stressed, with refiners struggling to adapt. This could

president of refining and chemicals at Total.

Covid-19 has taught us that the world is uncertain, he began; the best way to cope is to focus on control – not just costs and cash but capital allocation, operations and safety.

Diversification is also vital, in terms of sourcing, supply chains and in end markets.

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This is the best way to remain resilient in a world of uncertainty. Globalisation has worked well for many and industry should not go backwards by reshoring, he said.

The crisis has also been a test of leadership and, Pinatel stressed, communication is key.

What would have happened if the crisis had come along 10 or 15 years ago? IT and digital communications have come a long way since then and have enabled organisations to move rapidly to remote working – and not just for office staff.

The climate crisis is also still there; during the pandemic, carbon emissions have fallen but not far enough to meet the targets set by the UN. Emissions reduction has to be a priority, both internally and within the industry’s customers.

Some solutions were offered during the panel discussion following the presentations, with Jim Fitterling expressing the strong view that decarbonisation will not happen without the contribution of nuclear power.

THE STRESS TEST Presentations during the second day of the EPCA Annual Meeting were, as ever, devoted to supply chain and logistics issues. Introducing the day, Caroline Ciuciu noted that there were around 1,000 delegates registered for the first day, showing, she said, that “our network is vibrant and engaged”. Helmstaedt summarised the first day’s discussions, with the overriding message that Covid-19 has intensified the challenges facing the petrochemical industry but that leadership has stepped up to meet those challenges. It is clear that collaboration is increasing – and will stay that way – she said, and that the petrochemical industry has a pivotal role to play in re-emergence from the pandemic.

Dirk Verstraeten, director of global logistics procurement at Covestro Deutschland and chair of EPCA’s Supply Chain Programme Committee (SCPC), introduced the session,

and the circular economy within the logistics sector, which is aware that it will have a big role to play. It is fortunate, therefore, that supply chains are more agile and innovative than ever before, he said.

With the aim of opening up discussion, Peter Hinssen, author, speaker and co-founder of nexxworks, described 2020 as “the year the earth stood still” and said it has been “a great stress test”, both at work and at home. But he challenged the idea of the ‘new normal’, suggesting that we now find ourselves in a ‘never normal’ world. It is just as well that industry has invested heavily in IT in recent years; digital used to be the cherry on the cake but now it’s the cake. But in a ‘never normal’ world, the process of digitisation will never be over.

There have been fast changes in IT, climate and global politics, with each seismic shock triggering opportunities. The Covid-19 crisis

In a world of constant flux, businesses need a vaccine or, as Hinssen had it, a ‘VACINE’.

He preached Velocity (if everything is under control, you’re not going fast enough), Agility (learn to read the changes), Creativity (tap into the potential of your employees), Innovation (in products, services, technology and so on), Networking (“connectivity is everything”) and Experimentation (don’t be afraid of risk, lower the cost of failure). For the petrochemical industry in particular, Hinssen urged it to leverage the power of its networks.

“Think about the day after tomorrow,” Hinssen concluded. “Sense what’s going on, try new stuff, scale up and run with it. Move the dial up to 11!”

noting that there is action on sustainability

has also accelerated changes in consumer and business behaviour, with a huge impact on finances. Hinssen’s message was that we had all better get used to such volatility as it will be norm going forward. “The comfort zone of the ‘old normal’ may be gone forever,” he cautioned.

a major focus on Asia. Integra introduced new protocols in February and, she said, “rolled with the punches”, with relatively few outages. She said she found that the company’s systems were only as good as the personnel using them. “It was humans, working from home, that kept stuff moving,” she said. “It’s all still about people.” »

 THE PETROCHEMICAL INDUSTRY IS ALREADY DOING A LOT TO REDUCE ITS ENVIRONMENTAL IMPACT

HCB MONTHLY | NOVEMBER 2020

THE PEOPLE PEOPLE Coming back to earth, Gina Fyffe, CEO of Integra Petrochemicals, said her company saw the pandemic coming, operating as it does with

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 PETER HINSSEN: “SCALE UP AND RUN WITH IT TURN THE DIAL UP TO 11!”

At the start of the year, Fyffe said, she anticipated global overcapacity in many areas. But no one could have predicted the pandemic, which has changed the conversation and challenged industry’s ingenuity. So far things have gone reasonably well but failure is not an option. Companies need to consider their employees’ health as, she said, “our people are our greatest assets”. For a trading company like Integra, that duty of care extends to crews on ships, an issue of considerable concern due problems in effecting crew changes in many parts of the world.

“Maybe we’re at the end of the beginning,” Fyffe continued, predicting that 2021 will be “a long year”. Operators should look now at supply diversification and inventory levels (“Just in Time may be Just Too Late”), as well as issues relating to ageing infrastructure.

She also noted that supply chains are global in nature and national political agendas, trade sanctions and tariffs can backfire.

But we all now have the opportunity to review matters and adapt. After all, as Darwin noted, adaption is crucial for survival. Having young people in the team can help with that and, Fyffe concluded, “We need to keep recruiting, keep planning.”

Bertschi too had been alerted by its Chinese operation to the coming pandemic and, CEO Jan Arnet reported, the organisation in Europe went immediately to home working. But, like at Integra, Bertschi had to protect its workers out on the road or in depots. Overall, Bertschi

HCB MONTHLY | NOVEMBER 2020

switched rapidly to online systems, adopting changes that would normally have taken 18 months or more. The company established a task force to find answers to questions that had not yet been asked, and had to skip the planning and piloting stages for new systems and go straight to implementation. “That needed trust and communication,” Arnet said.

That process, though, revealed an innovative spirit that can now be leveraged to take the digitisation process even further. Bertschi is looking at estimated time of arrival (ETA) visibility for consignees, with logistics service providers linking data from various shippers; at the automisation of business planning and analytics; at diversified sourcing, greater flexibility and a reduction in working capital, and greater sustainability. This will involve bundling volumes to reduce part loadings, greater use of intermodal transport, clustering trucking operations, and avoiding the use of flexitanks.

“We have to take a long-term view,” Arnet said. “Think in generations, not in quarters.”

DEALING WITH UNCERTAINTY The third speaker was Christian Kohlpaintner, CEO of Brenntag, who took office at the start of the year. “It’s been an interesting ride since,” he began. For him, the key learnings from the Covid-19 pandemic have been the ability of the industry to “keep the shop open”. Safety was obviously a priority, especially for its drivers. And the company had to deal with massive swings in demand from both customers and suppliers. There were new border controls and a great deal of financial uncertainty. On the other hand, the crisis focused minds and, he reported, Brenntag has enjoyed its best safety performance on record, partly due to quieter roads.

As a result of his experience so far, Kohlpaintner described three hypotheses, the first being a move from ‘Just in Time’ to ‘Just in Case’. Global networks and interconnected supply chains allowed uninterrupted supplies during the pandemic. Reshoring and nationalism are not the right answers to

tackling the ‘new normal’, he insisted. Rather, things need to become even more diversified, with products having to switch between supply chains to keep moving. “We have to be smart and create a stable network of supply chains,” he said. “There will be other, unknown challenges coming and we need to be set up to deal with them.”

Kohlpaintner termed his second hypothesis ‘From Segregation to Integration’. Interfaces between people, and between suppliers and customers are becoming more integrated, driven by digitisation. Collaboration between all parties will ensure this journey will continue. Having personnel working from home challenged the idea of greater integration but, he reported, internal communications worked well and customer interaction stayed good. It did, though, raise concerns about the ability of sales teams to do their job as effectively as they would if they were out on the road seeing customers, suggesting that different ways of selling might be needed.

Finally, Kohlpaintner turned to sustainability which, he said, is turning from a fringe concern to a core element of business strategy. Companies should be aware of the short-term responses to the crisis and their potential impact on an organisation’s overall sustainability. In the medium term, the sector should look at the end-to-end supply chain and how it can be made more sustainable.

Challenged by Helmstaedt as to whether the pandemic has been a challenge or a crisis, Kohlpaintner said it was a big challenge – but that responding to challenges is what logistics providers do all the time. There was a lot of improvisation, a lot of communication and some luck. But with all players in the supply chain, from producers to end users, all in the same boat, they had to work and act together, responsibly. That is an important lesson for all.

QUESTIONS AND ANSWERS Kohlpaintner also reasoned that work practices will have to change in the future; the set of capabilities in the organisation

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need to change; new skill sets will be needed. Just what are those skill sets?

Hinssen urged companies to hire now for flexibility to cope with the coming changes.

Fyffe agreed: while the older generation still has a lot to offer, young people are being hired for their potential. “We should be looking for people with plasticity of thought,” she said. They will need to be able to work across the organisation and not be kept to a well defined position. Arnet observed that, during the crisis, everyone felt more important – they were part of something bigger. It would be good to keep that feeling and take it forward.

Conversation continued with discussions on innovation, where Arnet said there is still plenty of room for work, especially in respect of reducing the environmental impact of transport by road. On-site operations can be more automated, he added, and there is still

 BERTSCHI HAS PLACED GREAT STRESS ON PROTECTING ITS WORKERS OUT ON THE ROAD

the opportunity to automate work processes; interactions need to be less transactional and more integrated through the supply chain.

There does seem, though, that there is still a reluctance in some quarters to integrate data sources and share information. Fyffe said that there is a lot going on but it is making things more cumbersome: there is a need for common platforms. Arnet responded that customers fear that standardisation will reduce flexibility and are wary of becoming locked into a particular system. The work that the European Chemical Transport Association (ECTA) is doing on standardising milestone information may help but, he admitted, connectivity has to remain agile.

The panellists also looked at the economic situation. Kohlpaintner said the chemical industry has not done too badly during the pandemic, forecasting that output might drop by around 5 per cent this year compared to 2019; Covid-19 has certainly been a shock but its impact will likely be less than the 2008/09 financial crisis. It has not been the same in other sectors, he admitted, and the petrochemical sector needs to prepare itself

for the next shock and think about the day after tomorrow. Hinssen said that there is likely to be a long-term financial impact; Arnet agreed, saying that once central banks remove support we could be in for a very different environment.

Wrapping up the discussion, Verstraeten thanked the speakers for their inspirational words. The supply chain is more important than ever, he said: it’s been a lifeline during the crisis. But logistics remains about people.

“Perhaps we will need different people - but people still matter,” he said.

EPCA is all about connecting, he concluded.

“Let’s all reinvent the supply chain for the day after tomorrow.”

CHINA’S CHALLENGE Another regular feature of the EPCA Annual Meeting is that the final lunch is accompanied by a closing speech from someone outside the industry. This year delegates had to make their own lunch arrangements but they still had the chance to hear from Professor Lin Boqiang, director of the China Centre for Energy Economic Research. Introducing »

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him, Marc Schuller said that the stringent targets that China has recently put in place – to become net-zero by 2060 – will provide a challenge across industries.

Lin explained that China is spending a lot on emissions prevention and control but its ability to fund this work will be impacted by the impact of the Covid-19 crisis on economic growth, which was only 1.6 per cent in the first half of 2020. The fall in international trade volumes and changes in supply chains have increased unemployment and there has been a small decline in total energy consumption in the first half.

Looking more globally, there is a risk that the pandemic will support an antiglobalisation agenda. If this happens, national energy policies will focus more on domestic resources in the face of supply security issues; this will make it hard to allocate resources for clean energy and

 ABOVE: LIN BOQIANG, “CHINA AND THE EU NEED TO GET TOGETHER” RIGHT: NEW EPCA PRESIDENT, HARTWIG MICHELS, PRESIDENT OF PETROCHEMICALS AT BASF

HCB MONTHLY | NOVEMBER 2020

could also harm global cooperation in addressing climate change. It would also create difficulties for China in meeting its carbon neutrality target, which is already a major task.

One of China’s main problems is its reliance on coal, which accounted for some 58 per cent of 2019 energy consumption.

Non-fossil fuels supplied around 15 per cent, which is well below the level of 26 per cent in the EU. In the short term, China will look to use more natural gas and less coal and oil but the transition is moving slowly.

And, Lin said, it is hard to address coal consumption without looking at overall energy demand.

Lin said that China’s energy policy objectives for the next 10 to 20 years will need to focus on the development of ‘clean coal’ and growth in renewables; the 14th five-year plan, currently in development, will need to look at both. But clean coal is constrained by high costs and the potential to add to CO² emissions; coal-to-oil and coal-to-gas are both limited by capacity. Policy support for carbon capture and storage or use will be needed, along with greater efficiency in the end-to-end energy chain. Energy storage will be vital too and, now that costs for solar power and other renewables have fallen dramatically, the focus is shifting from technology to developing the necessary infrastructure.

China’s petrochemical industry is also facing great challenges, Lin continued, with over-capacity in many areas. It will have to plan to develop renewable energy sources to meet the decarbonisation targets. Carbon asset management will maximise the value of carbon and drive emission reduction, he said.

Are the 2030 and 2060 targets for emissions reduction viable? Lin said that the government in Beijing would not have put them in place without thinking hard beforehand. It is, though, uncertain whether the plans in place will deliver the savings.

The largest uncertainty, though, is US-China relations. And given the US position on

climate change, China and the EU need to get together to form a consensus and continue to support action in this area.

Closing the conference, Marc Schuller handed the reins over to Hartwig Michels, president of petrochemicals at BASF, who has assumed the position of president of EPCA. The three days of the virtual Annual Meeting had been “very inspiring”, Michels said. “The sector has suffered but is playing a central role in people’s lives.” He praised the EPCA community for its commitment and energy as industry moves forward in the new normal.

Michels will certainly face a challenging period as EPCA president; one outstanding item to be decided is the nature of the 55th Annual Meeting, due to take place in October 2021. EPCA will take a view on how that event will look once it has had time to review the feedback from members on the virtual event.

More information will be made available in due course at https://epca.eu.

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SMART BULK

ranging approach to the supply chain all contribute to smarter kind of bulk logistics.

An extensive intermodal network remains essential in this respect and the company plans to expand its network even more in the coming years by investing in smart equipment, an ambitious sustainability approach and a knowledge lab for open innovation.

Data, technology and automation offer insights that give more control over the logistics chain. That translates into higher delivery reliability, more transparency in the supply chain, fewer empty kilometres and a lower CO² footprint for clients. Van den Bosch customers can receive integrated CO² advice based on an emissions calculator. New insights like these also offer far-reaching possibilities for developing new concepts and evaluating scenarios for optimising supply chains.

weight, seal status and cleaning quality indicators using smart sensors. Combining all the data available along with specific customer requirements using advanced planning software, the most appropriate equipment and optimal intermodal route can be selected. Based on this, the customer then receives comprehensive information enabling them to make a well-considered choice balancing the impacts on costs, time, CO² emissions and performance.

Van den Bosch is also aiming to be the industry leader in sustainability within five years, having set in place a transition over decades, with 80 per cent of transport volumes now moving intermodally. Payloads have also increased, meaning that the number of transport movements has fallen, resulting in significant CO² savings. Its ambition now is to further reduce emissions both internally and out on the road, with a target of having all its locations completely climate-neutral by 2025.

Van den Bosch has built up a reliable and proven network from ten offices in Europe, Africa and the Middle East. While continuing to act as a traditional logistics provider, it also wants to further develop through innovative, sustainable and future-oriented networks and partnerships. In light of this, its knowledge

CLEANER AND SMARTER In line with its digital revolution, Van den Bosch is also a frontrunner in the field of Smart Load Units: smart tank and silo containers that are not only tracked in real time but that provide clear temperature,

lab will become available from 2021, where students, researchers, knowledge institutions, customers, partners and its own organisation will come together. This hotbed for open innovation aims to boost meaningful change within the supply chain of bulk. vandenbosch.com

STRATEGY • VAN DEN BOSCH HAS EMERGED WITH A NEW LOOK AND SOME NEW IDEAS ON HOW TO IMPROVE EFFICIENCY AND SUSTAINABILITY IN THE TRANSPORT OF DRY AND LIQUID BULK VAN DEN BOSCH has repositioned its brand, dropping the word ‘Transport’ from its corporate name and coming up with a new promise to be “The Supply Changer in Bulk”.

This goes hand in hand with changes that the company wants to realise in the liquid and dry bulk logistics chains, as CEO Rico Daandels explains: “Market demand is changing and we are responding to that. We want to further strengthen our leading position in order to make smart bulk logistics and more efficient supply chains a reality together with customers. Intermodal transport is of course an essential part of this, but fundamentally it’s about accumulating fewer kilometres.

Bulk logistics is about more than just quantity. Quality through insights, knowledge and data is essential to perform as optimally and sustainably as possible.”

According to Van den Bosch, data analysis, digitisation, innovations and a more wide-

 VAN DEN BOSCH IS SEEKING TO SEIZE OPPORTUNITIES DIGITISATION OFFERS TO ENHANCE SUSTAINABILITY

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EXCELLING IN ASIA CHINA • DEN HARTOGH IS FOLLOWING ITS MARKET WITH A NEW INVESTMENT IN DOMESTIC SURFACE TRANSPORT IN CHINA DEN HARTOGH HOLDING has acquired a majority shareholding in Shanghai Xintao Dangerous Cargo Transportation (XT Logistics), which will significantly increase its capability to provide end-to-end chemical logistics services within China.

“The majority acquisition of XT Logistics will further enhance our domestic footprint in China.

Our integration with an established trucking partner reflects Den Hartogh China’s ambition to offer one-stop logistics services for our existing and also prospective customers,” says group managing director Pieter den Hartogh.

The joint venture will initially own and operate a domestic fleet of 13 trucks and

 INVESTING IN CHINA WILL GIVE DEN HARTOGH BETTER CONTROL OVER ITS DOMESTIC OPERATIONS

HCB MONTHLY | NOVEMBER 2020

20 chassis. XT Logistics has the necessary dangerous goods trucking licence and permits to transport a wide variety of chemicals.

Den Hartogh Logistics has identified the Asia-Pacific region as a key engine of growth.

Since 2019, the company has significantly expanded its commercial operations and fleet presence in the region to facilitate customer demands for intermodal chemical logistics.

ALL THE WAY THROUGH The news came shortly after Den Hartogh China and XT Logistics carried out their first joint transport, carrying tank containers shipped to Shanghai from Chiba, Japan by network partner Nissin and moving those tanks some 1,900 km by road to Mianyang in Sichuan province. To ensure smooth shipment from the east coast of Japan to western China, a pre-operations discussion

took place between Nissin, Den Hartogh Shanghai and XT Logistics. This is the furthest door-to-door service Den Hartogh will embark in mainland China, the company says.

“Through our partnership with domestic trucking partner XT Logistics we now have better control in enforcing world-class standards in the management and transportation of liquid chemicals in inland China,” Den Hartogh China says. “This Japan-China door-to-door logistics contract showcases Den Hartogh’s value added service, despite challenging Covid-19 constraints, to deliver multimodal doorto-door transportation solutions across country borders in Asia.”

“Here at Den Hartogh China, we recognise safety is key in the domestic transportation of liquid chemicals,” the company adds. “Our joint venture with XT Logistics enables a wide variety of DG and non-DG chemicals to be transported within China. With a strong focus on safety and operational efficiency, we seek to give our valued customers peace of mind in the first and last mile of transportation.”

More information on Den Hartogh’s operations in China can be found in a short video available on the company’s website. www.denhartogh.com

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INTERNAL AFFAIRS VALVES • FORT VALE HAS INTRODUCED A NEW RANGE OF PFA-LINED VALVES. MARKETING DIRECTOR GRAHAM BLANCHARD EXPLAINS WHY INDUSTRY SHOULD BE EXCITED IT’S BEEN A strange year, a year of lockdowns, furloughs, restrictions and masks. Uncertainty has been the defining mood of 2020, but it has also been a year in which innovation has been a key factor. In the future I think that 2020 will be seen as a year that was defined not so much by the chaos of coronavirus, but by the response. Ingenuity and agility from the industrial sector have repurposed factories and saved lives - globally.

In Burnley, Lancashire, Fort Vale has continued as usual. We are fortunate in that self-sufficiency is an important part of our ethos so that, when the world began shutting down in April, we were able to stay open and keep

 FORT VALE’S NEW RANGE OF PFA-LINED VALVES IS ALREADY BEING WELCOMED BY THE MARKET

manufacturing as normal. Fort Vale owns all its manufacturing facilities, having total control over all processes from foundry to testing.

We were able to swiftly introduce new working practices that protected our staff whilst operating at almost full capacity - this was important, as in the early months of the epidemic we found ourselves picking up work from competitors with supply chain problems - and now that a semblance of normality has returned, we are ideally placed to roll out the new developments that we have been working on all year.

One of these is our new range of PFA-lined valves. Valve corrosion is a major problem for fuel and chemical transfer systems, but PFA-lined internals substantially improve corrosion resistance against aggressive products. At Fort Vale, we prefer to have

complete control of all our manufacturing processes, and we have found that successful and profitable tank operation relies upon the technical integrity of each and every component, so when the decision was made to introduce this new range, we decided to build in this capability from the ground up.

INVESTING IN THE SHOP Given that we use 316 stainless steel base material as standard (it gives excellent corrosion resistance for our many products), we also invested in PFA lining equipment to bring the process in-house, as well as a new paint shop specifically for chemical resistant paint applications. This also means that we can offer optional chemical-resistant painted external parts - to offer increased corrosion resistance against product splash or product vapour. A breakthrough in casting tool development means we can reduce the cost of this specialised equipment and offer them across a wide range of products, including pressure relief valves, ball valves, angle valves for rail applications, butterfly valves and bottom outlet valves.

The results have been impressive, and we are already seeing a lot of interest from the global market. We are the first manufacturer in the industry to have built a third party-approved test laboratory, where we conduct air-flow and liquid-flow testing. This gives us a unique insight into “real-life” scenarios and enables us to make significant and informed contributions to the safety of pressurised tanks.

Our state-of-the-art manufacturing facility is equipped with the latest machines and technology which means that we can satisfy all high-volume requirements as well as highly customised requests. We can produce complex component parts to a high tolerance and superior surface finish at our lost wax investment casting foundry. Specialist and bespoke work is our key strength - we can develop a design concept through to a finished product completely in-house - quickly.

In an increasingly unpredictable world, it’s nice to be able to offer some certainty, and whatever 2021 brings, you can be sure that Fort Vale will be at the forefront.

Watch this space. www.fortvale.com

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COST CONSCIOUS RESULTS • THE COVID-19 PANDEMIC HAS FOCUSED MINDS ON THE BOTTOM LINE. STOLT-NIELSEN SHOWS HOW ITS DIVERSE PORTFOLIO IS SHORING UP PROFITS, DESPITE LOWER REVENUES STOLT-NIELSEN LTD HAS reported strong figures in its results for its third quarter, ending 31 August. Compared to the second period, EBITDA rose from $123.1m to $143.5m, with net profit up from $12.3m to $30.5m. The improvement reflects healthy volumes, lower fuel costs and overall lower administrative expenses.

Niels G Stolt-Nielsen, CEO, says: “During the third quarter all of our divisions generated improved results in the face of continued challenges brought on by the Covid pandemic.

While the global economic outlook remains uncertain, we are cautiously optimistic about the fourth quarter and beyond, based on the contract portfolio we have secured across our three logistics businesses.”

Those improvements in profitability came despite a fall in revenues, from $503.5m in the second quarter to $474.0m, and were also well up on the third quarter 2019, when revenues

As many companies have done over the past six months, Stolt-Nielsen has been focusing on conserving cash and keeping its workforce safe. “At the beginning of the pandemic we took early and decisive action to reduce costs and preserve cash, and at the end of the third quarter we had approximately $500m in available liquidity,” says Niels Stolt-Nielsen.

“We continue to focus on safe and reliable operations that deliver quality services and products to our customers, while protecting our revenue base.”

That focus on cash has, though, not prevented the company from making opportunistic investments. “During the quarter we were able to secure five modern 26,000-dwt stainless steel chemical tankers in the second-hand market at a very attractive price, a deal made possible by our resilient business model and financial strength,” says Niels Stolt-Nielsen. The ships are expected to

were $517.8m but net profit only $4.3m.

be delivered starting December 2020.

 LOWER COSTS IN MANY AREAS, TOGETHER WITH A FOCUS ON EFFICIENCY, HELPED STOLT-NIELSEN BOOST PROFITS DESPITE A DECLINE IN REVENUES

HCB MONTHLY | NOVEMBER 2020

REVENUES DOWN, PROFITS UP Stolt Tankers posted a third-quarter operating profit of $28.1m, up from $20.0m in the previous period and $15.0m in third quarter 2019, despite a drop in revenues arising from

fewer operating days as a result of drydocking schedules and Covid-related delays. Freight rates were also slightly down as it carried more lower paying cargoes; the intra-European market was also weak. On the other hand, bunker prices were well down.

“Stolt Tankers’ continuing focus on efficiency initiatives is starting to have a positive impact,” says Niels Stolt-Nielsen. “However, the Covid pandemic continues to impact scheduling, necessitating costly rerouting of ships in order to make overdue crew changes.”

Stolthaven Terminals recorded third quarter operating profit of $22.7m, up from $19.2m in the previous period, against flat revenues and a slight decline in overall utilisation. StoltNielsen notes that the joint venture terminal in China posted improved results on the back of local market strength.

“Results at Stolthaven Terminals continued to improve, as demand for chemicals used for packaging and healthcare products remained strong, offsetting weak demand for those bound for the automotive and construction sectors,” Niels Stolt-Nielsen notes.

At Stolt Tank Containers, August brought an increase in shipments following June and July’s seasonal summer slowdown, with the quarter’s revenues well off the previous quarter, as anticipated. Operating profit, however, once again improved, reaching $17.5m compared to $13.0m in the second quarter and $12.1m in the same period 2019. The drop in revenue was more than offset by lower ocean freight and trucking expenses, largely due to lower fuel costs, and repositioning costs for empty tanks also fell.

Looking ahead, Niels Stolt-Nielsen says: “We are cautiously optimistic that the momentum of a strengthening chemical tanker market will continue. Longer term, the favourable supply/demand outlook should provide a good foundation for continued improved results at Stolt Tankers. At Stolthaven, we expect to see healthy demand in most regions. Following the seasonally slow third quarter at Stolt Tank Containers, we are seeing signs of improvement, particularly in Asia.

“Our diverse portfolio of businesses, dedicated employees and forward-looking strategy mean that we are well positioned for what may come.” www.stolt-nielsen.com

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NEWS BULLETIN

TANKS & LOGISTICS

GIRARD KIT NOW FROM OPW

OPW has acquired Girard Equipment’s tank container product line, comprising manlids, pressure/vacuum relief vents, airline ball valves, composite footvalves and top-discharge butterfly valves. OPW will manufacture the products at its facility in Lianyungang in Jiangsu, China, with an emphasis on expanding its presence and product portfolio in the Asia-Pacific, Latin American and European regions.

“We have great respect for the Girard brand and believe that it represents a great opportunity for us to grow our presence in the ISO market,” says Azam Owaisi, vice-president and general manager of OPW Fluid Transfer Solutions.

“This new product range also fits seamlessly into our ongoing efforts to improve the range of products we can offer our customers.”

Meanwhile, Dave Girard, a 30-year veteran of the bulk transport industry after his career at Girard Equipment, has joined Matlack Leasing in the role of regional sales representative, based in Chicago.

“Dave has a proven record of facilitating

long-term business relationships within the industry,” says Jim Rogers, Matlack’s vice-president of sales. “His winning attitude and outgoing personality are assets that will complement and enhance Matlack’s ability to meet the needs of our customers as we continue to provide quality service and bring innovative tank trailer and tank chassis products to the marketplace.” www.opwglobal.com girardequip.com AMERICA GETS OMNI TANKS

Omni Tanker has launched its innovative carbon-composite tank truck trailer design in the US. The tanks have been in use in Omni’s home market of Australia since 2006 and feature a unique and internationally patented construction that sees a carbon fibre-reinforced polymer (CRFP) exterior tank bonded to a seamless thermoplastic interior tank.

The result is an exceptionally light but robust and safe tank suitable for the transport of Class 8 corrosive chemicals, with a weight saving that allows an increase in payload of 8 to 10 per cent. Omni Tanker says the

product is safer because the CRFP outer shell is six times stronger than steel, while the tank is significantly lighter than a traditional steel tank or even a fibre-reinforced plastic (FRP) tank, as commonly found in the US. The launch took place at the start of October at the headquarters of All Chemical Transport in New Jersey, one of the first US customers for the design. The event was also attended by the Australian ambassador to the US and by Eurotainer, which is already operating Omni’s CRFP tank containers, also newly launched in the US. omnitanker.com SA TALKE GETS SAFCO GIG

SA Talke, the joint venture between Talke Group and Saudi interests, has won a five-year contract from Saudi Arabian Fertilizer Company (Safco) to provide a range of on-site and maintenance services including bulk loading, bagging, drumming, material transfer, warehouse coordination and administration at the various plants in Al Jubail. Work has already begun at the Al Bayroni plant and will be extended to the Safco and Ibn Baytar sites by the end of the year. The contract covers anticipated volumes of 5.86m tonnes of chemical products per year.

“SA Talke is considered a reliable and trustworthy logistics partner in the Kingdom of Saudi Arabia for many years now. We are very pleased to be awarded the Safco business and are fully committed to managing this operation in the safest and most efficient manner,” says Mark Benzahia, managing director of SA Talke (pictured opposite). www.talke.com MILKYWAY ADDS MORE

Shanghai-based Milkyway Chemical Supply Chain Service (left) has, in partnership with Chengdu Xiongfeng Investment, acquired a 60 per cent shareholding in Sichuan Xiongrui Logistics, which it says has greatly improved distribution activities in the Sichuan and Chongqing region of China.

Xiongrui Logistics has a broad range of service offerings, including the road transport of dangerous goods, chemical warehousing, international freight forwarding, cold storage and other specialities. Milkyway says its team

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has a lot of experience in the chemical logistics sector, with long-term customer relationships across its network in Chengdu, Chongqing, Luzhou, Hangzou, Xi’an, Guangzhou and elsewhere.

Xiongrui Logistics will now be renamed Milkyway Xiongfeng Logistics and be fully integrated into the Milkyway management system, strengthening its national distribution network and improving response times for customers.

Milkyway has also acquired Ningbo Dowchain Logistics, which was formed only in September 2019 with a focus on chemical transport and international freight forwarding. Dowchain’s team came from logistics operations in multinational and state-owned chemical groups. www.mwclg.com DANTRA BUYS FROM LAG

Denmark-based Dantra Group, which celebrates its 100th anniversary this year, has expanded its road tanker fleet with 12 stainless steel trailers built by LAG Tankers. The 37,500-litre tankers feature air-operated valves, anti-spark filters on the pressure duct collector to filter out static, and a separate steam line on the heating circuit. Six of the new tankers have three chambers while the other six are single-chamber units. All were supplied to Dantra by Jorn Bolding A/S,

a Danish specialist in trailer rental and sales. dantra.dk BERTSCHI BUILDS IN CHINA

Bertschi China has started construction work on its new logistics centre in Zhangjiagang. The new facility will offer up to 50,000 tonnes of storage capacity for chemicals and will expand Bertschi’s service offering in China from pure tank container transport to encompass storage, re-packaging, and distribution, along with many other value-added services. www.bertschi.com HILLEBRAND BUYS BRAID

Hillebrand, a world-leading specialist in transport and logistics services for the alcoholic beverages sector, has acquired Braid. The deal strengthens Hillebrand’s services and expertise in handling non-hazardous liquids in bulk, including wine, olive oil, edible oils and non-hazardous chemicals.

“Braid offers an exciting opportunity for Hillebrand to strengthen its network of services, products, skills, knowledge and teams,” explains Cees van Gent, CEO and chairman of the executive board of Hillebrand. “With its global reach, wide range of customised logistics solutions in bulk liquids transportation, as well as its manufacturing and technology know-

how, the acquisition of Braid supports Hillebrand’s strategy to not only lead the market in logistics services for alcoholic beverages but also for non-hazardous bulk liquids.”

Allan Leddra, CEO of Braid, comments: “Hillebrand’s acquisition of Braid provides a major growth opportunity for both businesses.

The two companies will achieve more as a unit, increasing value for customers, given both companies’ high reputation for providing a leading customer experience in bulk liquids logistics.”

Leddra and his management team will join Hillebrand to drive a successful integration and continue to grow the consolidated bulk liquids business of Braid and Hillebrand. “We also share the same values and culture, so we are confident that our employees will smoothly integrate in the new organisation and will find new growing opportunities within Hillebrand,” Leddra adds.

Hillebrand’s bulk liquids services and Braid will, for the time being, continue to run their operations separately. However, the businesses will be brought together over the next 12 months, creating one of the largest food-grade tank container fleets in the world. www.hillebrand.com www.braidco.com

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IN CHARGE OF CHANGE PORTS • ANTWERP IS PLAYING A MAJOR ROLE IN FOSTERING INNOVATION AND TECHNOLOGY TO REDUCE THE CARBON FOOTPRINT OF ACTIVITIES WITHIN ITS BOUNDARY IN A WORLD that has been turned upside down over the past year, all those involved in the chemical logistics chain have had to pedal harder than ever to keep up with rapid fluctuations in the pattern and level of demand for their services. Last month’s EPCA Annual Meeting gave the opportunity, if only virtually, for the whole European community to take a breather, reflect on how they had coped and try to peer into an uncertain future with other fundamental disruptions already on their way.

And, while it was impossible to gather in the hotels and bars of Budapest, many took the opportunity to reconnect online. Among them was Jacques Vandermeiren, CEO of the Port of Antwerp, who offered his views of the next stage of development for the sector and how the port is planning to play a part to help and

support its chemical cluster and the logistics service providers that keep it running.

The last six months have presented immense challenges but the Port of Antwerp has been successful in limiting the damage; “we are holding up well,” Vandermeiren said.

This is in no small part due to the importance of the chemical and polymer trade, which accounts for around one quarter of containerised throughput. It is also testament to the power of networks and, he added, gatherings such as the EPCA Annual Meeting, even in an online version, are crucial if the sector is to move forward.

TAKE THE LONG VIEW However, Vandermeiren said it is necessary not to focus solely on short-term impacts

and their solutions; industry must keep alert to long-term disruptive factors – many of which were discussed during the presentations and panel sessions at the EPCA Annual Meeting: the need for greater sustainability in all industrial and logistics operations; the need to address climate change; and the growing importance of a move towards a circular economy.

Ports have an important role to play in the response to climate change and the Port of Antwerp is actively supporting its chemical cluster in its move towards a carbon-neutral and circular economy, Vandermeiren said. That is why, together with its industrial tenants, the port is working to reduce CO² emissions and transform itself into a carbon-neutral port, by means of ambitious transitional projects.

“Sustainable shipping, sustainable energy and sustainable industry – these are areas in which the Port of Antwerp has already taken big steps and will continue to do so,” Vandermeiren said. The port authority is teaming up with business front-runners to realise very ambitious ‘lighthouse’ projects in areas such as green hydrogen, carbon capture and use (CCU), the circular economy, waste heat and alternative shipping fuels.

SUSTAINABILITY IN PRACTICE Vandermeiren gave some examples of those projects, such as the power-to-methanol plant being built at the Inovyn site; construction is due to start in 2022, he revealed, noting that this demonstration plant involves a consortium of seven players, including the port authority.

The plant is projected to produce 8,000 tonnes of sustainable methanol annually, using captured CO² and sustainably generated hydrogen, avoiding an equivalent volume of CO² emissions. The project is, he said, “an absolute scoop for Belgium”.

Another consortium, involving seven leading chemical and energy companies, is involved in an ambitious plan to halve CO² emissions from

the port by 2030. The Antwerp@C project aims to capture and/or use CO² generated within the port, in order to keep it out of the atmosphere – and it is aiming to do this within a short time span and at a reasonable cost.

The project has now received support from the EU’s Connecting Europe Facility (CEF)

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SUSTAINABILITY 23

grant scheme and consortium partners are preparing to apply for further support from the European Innovation Fund. “With Antwerp@C, the port of Antwerp has the key to realise an innovative cross-border CCUS-project, a first of a kind in its concept and scale,” Vandermeiren says. “We are proud to receive the necessary financial support for the study phase, as this project will contribute to the Flemish, Belgian and European climate goals.”

Projects such as these demonstrate that collaboration is key in creating a cluster and in generating operational added value.

“If this shared infrastructure can be realised, it will be the first of a kind and benefit the entire industrial sector in the port,” Vandermeiren said.

Very much the same can be said of the port area’s internal pipeline network, an openaccess asset available to all operators within the chemical cluster. Not only does this create operational efficiencies, it also feeds into the port’s targets in terms of modal shift, allowing the seamless movement of large volumes of product that might otherwise add to road congestion.

The concept will be taken further in future under the PipeLink banner, which also envisages expanding coverage to include the distribution of waste heat between generators and consumers and the movement of captured CO².

GIVE THEM SOME SPACE To take all these projects – and others yet to be defined – forward, innovative thinking will be needed. The Port of Antwerp has now set up what Vandermeiren called “a promising project”: NextGen District. This will involve the transformation of an 88-ha plot on the site of the former General Motors plant into a “hotspot for the circular economy and a test-bed for technology and sustainable innovation”.

 THE DIVERSE COMMUNITY WITHIN THE PORT OF ANTWERP PROVIDES AN IDEAL FOCUS WHERE IDEAS AND INNOVATION CAN BE DISCUSSED AND SHARED, TO THE BENEFIT OF ALL

NextGen District is seen as a place where end-of-life products will be given a second or third life; circular carbon solutions will be researched and experiments carried out in the area of renewable energy. Vandermeiren hopes that this will emerge as a hub for innovation and cross-fertilisation of ideas and sees it as a way of giving “oxygen to the new generation”.

Port alderwoman Annick de Ridder added: “With the NextGen District, we are aiming to create numerous new jobs that will further

in the Antwerp chemical cluster. As such, we are continuing to focus on the added value of the future and therefore also on our prosperity.”

The Port of Antwerp will put in place an international award procedure to attract investors, whether they are large companies, small startups or ideas factories; their size is not important – Vandermeiren is clear: “We need change leaders,” he said.

“We have the power to re-think the world, but it’s clear we cannot do this on our own,”

contribute to the sustainable growth of our port. For us, it is essential that new concession holders share and uphold our future and sustainability ambition. This will help strengthen, synergise and diversify the port platform. Moreover, this is the ideal location to accelerate the transition

Vandermeiren added, hoping that the NextGen District will provide “the soil that breeds innovation”. Ultimately, he concluded, “Collaboration and partnerships will pave the way to transition – and it’s the only path to follow.” www.portofantwerp.com

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CLEAN UP THE WORLD PLASTICS POLLUTION • RIDDING THE WORLD’S OCEAN OF MICROPLASTICS WILL BE A LONG TASK BUT INDUSTRY IS ALREADY WORKING ON IT; THE SUPPLY CHAIN WILL ALSO BE SUBJECT TO CONTROLS PUBLIC AWARENESS ABOUT the environmental impact of waste plastics, especially in the world’s oceans, is a relatively recent phenomenon but industry has been alert to the issue for some time. Operation Clean Sweep® (OCS) was established first in North America in the 1990s and has been implemented in Europe since 2015. It aims to prevent the loss of plastics granules during handling and their release into the environment and is one of the projects of the Global Plastics Alliance’s Marine Litter Solutions programme.

OCS is going to be more firmly established in Europe very soon. The European Chemical Industry Council (Cefic) and PlasticsEurope have been formalising their cooperation in

developing external auditing tools and, during the course of 2020, work has been going on to define the four audit modules. These will cover: production; master-batching, compounding and converting; transport and logistics; and recycling.

For those involved in the transport and logistics function, this raises the possibility of a further round of auditing, on top of those already experienced. In an online meeting this past June, the European Chemical Transport Association (ECTA), the European Federation of Chemical Distributors (Fecc), the European Plastics Converters (EuPC) and PlasticsEurope strongly supported the idea that this module of OCS auditing should be integrated with – or at the very least closely related to – existing

auditing modules within the Safety & Quality Assessment for Sustainability (SQAS) programme. Such an approach would avoid the need for additional auditing costs and time, while also recognising the work done under the SQAS programme to address the issue.

ALIGNING AUDITS ECTA says that an extra revision cycle may be needed to the existing SQAS modules in 2021 to incorporate specific aspects required

by OCS and it will be working with Cefic on this process.

ECTA warns that, if logistics companies involved in the polymer supply chain are not able to provide evidence through SQAS that their self-regulation is sufficient to ensure zero pellet loss during their operations, then wider legislation may be introduced, which may involve new international standards and a separate certification scheme.

ECTA membership includes a commitment to Responsible Care principles and their annual reporting to ECTA, including improvement plans, can be expanded to include key performance indicators (KPIs) under OCS. ECTA notes that those OCS requirements are also included in the ECTA Responsible Care Commitment statements. In the near term, ECTA is eager to hear from its members with their reactions to the OCS development and, if necessary, it will organise a separate webinar early in 2021 to discuss the matter further.

Meanwhile, PlasticsEurope reports that all its 52 member companies are now part of the OCS programme, after it made it compulsory as from the start of 2020. Indeed, by the end of 2019, nearly 700 companies and associations along the entire plastics value chain in Europe had joined the programme, representing a 40 per cent increase in just one year.

Notably, more than 100 logistics operators added their names in 2019 alone. The Port of Antwerp and PD Ports in the UK were early signatories and, during 2019, the Spanish ports of Cartagena and Tarragona, along with the port of Felixstowe in the UK, also joined the programme.

WHERE IT STARTED In Europe, OCS includes six commitments, one of which is to audit performance

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regularly; another is to encourage partners in the value chain – including logistics providers and distributors - to pursue the same goals. In order to achieve those goals, PlasticsEurope has committed to the development of a certification scheme with third-party auditing. This will provide a way for all participants to demonstrate their efforts towards zero pellet loss and represents, PlasticsEurope believes, the most effective and efficient approach to achieving that goal.

OCS certification is also fully in line with the measures to curb microplastics pollution in the oceans proposed in the 2018 EU Plastic Strategy, which specifically included a certification scheme along the plastics supply chain. As proposed, the OCS certification scheme will set common requirements, based on the six commitments of OCS, that will be audited regularly. PlasticsEurope is aiming to have the scheme ready for implementation by 2022.

PlasticsEurope also reports that, in 2019, around 90 per cent of companies surveyed said that they are already carrying out periodic inspections of their facilities to verify their performance in terms of OCS. Most of these involve internal audits but more than one-third of respondents said that OCS is now part of an external management certification such as ISO 14001 or ISO 9001.

It is unlikely that there will be a workable ‘off-the-shelf’ solution to OCS certification, PlasticsEurope says. “The size and technical set-up of production sites differ, and so do production and logistical processes.

Also, companies may be on different levels regarding pellet containment and awareness of staff. Therefore, it is crucial that companies assess individually where and how risks of pellet loss occur and how these can be tackled.”

GOING IN THE GULF It is not just in Europe that OCS is gaining traction. This past September, the Gulf

 EFFECTIVE CONTAINMENT DURING PRODUCTION, CONVERSION AND THE LOGISTICS CHAIN CAN PREVENT PLASTICS PELLETS BEING RELEASED TO THE ENVIRONMENT, WHERE THEY REPRESENT A MAJOR PROBLEM

Petrochemicals and Chemicals Association (GPCA), which represents the chemical industry in the Arabian Gulf adopted the programme, with the aim of improving sustainability and ensuring best environmental practices among plastics manufacturers and logistics operations in the Gulf Cooperation Council (GCC) area. The announcement was made on World Cleanup Day 2020.

GPCA notes that OCS is practiced in more than 60 countries around the world and is now a global initiative, aimed at ultimately achieving zero pellet, flake and powder loss and contributing to global efforts by plastics producers to protect the environment and minimise their environmental footprint.

Plastics manufacturers in the GPCA area produce more than 32m tonnes of polymers

aim to address marine litter at the source though plastic pellet containment.

“GPCA is steadfast in its resolve to champion this important initiative in the Arabian Gulf and empower both our member companies and their employees to drive change from the ground up,” says Dr Abdulwahab Al-Sadoun, GPCA’s secretary general. “As demonstrated in our recent Responsible Care Performance Metrics report, the regional chemical industry is in the leadership position in environment, health, safety, and security (EHS&S) performance, and its commitment to sustainability will only be strengthened by Operation Clean Sweep. When compared to alternative materials, plastics reduce environmental costs by nearly four times and

annually and, GPCA says, pellet, flake and powder loss is a growing problem with a significant economic and business cost and a threat to the industry’s reputation within local communities. OCS aligns with GPCA’s commitment to the Marine Litter Solutions programme and, specifically, its

adopting more robust pellet containment practices will help improve the industry’s sustainability impact even further.” www.opcleansweep.eu www.marinelittersolutions.com www.ecta.com www.gpca.org.ae

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GETTING TO GREEN STRATEGY • THE EU HAS BOLD AMBITIONS FOR DECARBONISATION AND GREATER SUSTAINABILITY. ITS STRATEGY FOR CHEMICALS HAS, THOUGH, RAISED SOME CONCERNS

-a ddressing the combination effect of chemicals, and -e nsuring that producers and consumers have access to information on chemical content and safe use.

Thus far, the Strategy appears to be little more than an extension of the existing Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation, which has pulled together the information on all chemical substances on the EU market that will be required to make informed decisions on the initiatives set out in the Strategy.

The European Commission, though, does say that the actions announced in the Strategy will “support industrial innovation so that such chemicals become the norm on the EU market and a benchmark worldwide”, indicating that innovation will be required to deliver the end-points established in the Strategy. This will rest on the development of design criteria for safe and sustainable by design chemicals, although there is the promise of financial support for the commercialisation of sustainable chemicals. There is mention of targeted amendments to the REACH Regulation, along with some sectoral legislation, and a beefing up of enforcement both at the borders of the EU and within the single market.

There is also the promise of an EU-wide research and innovation agenda, aimed at filling knowledge gaps on the impact of chemicals, promoting innovation and moving away from animal testing.

THE EUROPEAN COMMISSION adopted the EU Chemicals Strategy for Sustainability this past 14 October. The Strategy is a first step and will clarify the EU’s ambition for a “toxic-free environment” as set out in the recent ‘Green Deal’ document, which caused some consternation during discussions at last month’s EPCA Annual Meeting.

The Commission says the Strategy will “boost innovation for safe and sustainable chemicals and increase protection of human health and the environment against hazardous chemicals”, while recognising the “fundamental role of chemicals for human well-being and for the green and

that people have invented over the past 100 years,” says Virginijus Sinkevicius, Commissioner for the Environment, Oceans and Fisheries. “However, we cannot close our eyes to the harm that hazardous chemicals pose to our environment and health. We have come a long way regulating chemicals in the EU, and with this Strategy we want to build on our achievements and go further to prevent the most dangerous chemicals from entering into the environment and our bodies, and affecting especially the most fragile and vulnerable ones.”

WHAT EU WANTS

INDUSTRY COOLS Industry has not been wholehearted in its response to the release of the Strategy.

Commenting on it, Marco Mensink, directorgeneral of the European Chemical Industry Council (Cefic), said: “Cefic welcomes the new compliance, enforcement and innovation proposals in this new Chemical Strategy for Sustainability, which we have been calling for as being much-needed in Europe. The

digital transition of European economy and society”. It seeks to set out concrete actions to make chemicals “safe and sustainable by design” and that they are used more safely and sustainably.

“We owe our well-being and high living standards to the many useful chemicals

Flagship initiatives included in the Strategy include: - phasing out use of the most harmful substances in consumer products - minimising and substituting as far as possible the presence of substances of concern in all products

strategy has become more balanced. However, overall this has become a missed opportunity for a strategy to accelerate how Europe’s fourth largest industry can deliver on the Green Deal, as a growth strategy, while reinforcing EU global leadership on chemical regulations.

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“What we have today reads more like a long list of regulatory measures lacking sufficient clarity on how they will be joined up, how they relate to real-world geopolitical context like Brexit or how they will all add up to achieve the Green Deal objectives,” Mensink continued. “This is especially concerning at a time when the rest of the world has not yet followed REACH and is unlikely to. With 96 per cent of manufactured goods relying on chemicals, Europe’s chemical industry is at the heart of almost all value chains and Green Deal solutions, from solar panels to batteries, wind turbines and hydrogen to building insulation, EU-made pharmaceuticals and more powerful electronics, to name just a few.

“This uncoordinated policy risks undermining the role the EU’s homegrown industry can play, in favour of simply outsourcing the Green Deal technology solutions to other parts of the world. From this point onwards, it is crucial that a much more coordinated approach is taken to how the impacts of this strategy are assessed, how the various measures come together towards a shared objective and how this strategy should be implemented.”

A WAY AHEAD Cefic has its own ideas on how to proceed, as Mensink explained: “Looking forwards, what Europe still needs is a Green Deal ‘game plan’ for its chemical industry, from large companies to SMEs and all its downstream customers, which can deliver the investments needed at scale to meet the chemical strategy goals and at the same time invest in things like electric crackers, hydrogen, chemical recycling, Carbon Capture Storage and Utilisation. This is why we are calling for a sectoral Green Deal for chemicals to help fulfil the enabling role of Europe’s chemical industry.

“Companies need the right policy signals and signposts to invest at unprecedented new scale in Europe, and above all industry needs regulatory predictability,” Mensink added. “We are encouraged to see a proposal in the strategy for further industry and stakeholder dialogue and Cefic stands ready to participate fully to help make the Green Deal a reality. Such dialogue is deeply needed to strike the right balance.”

For the European Association of Chemical Distributors (Fecc), director-general Dorothee Arns added to the call for coordination, saying: “Fecc welcomes the proposals included in the new Chemical Strategy for Sustainability, which can be a real opportunity for our sector.

This applies specifically to SMEs, provided that it can support the industry to deliver on the European Green Deal objectives and strengthen Europe´s strategic value chains.

Potential risks lie in additional complexity for SMEs to implement the regulatory measures, which appear to lack clarity on how to cope with the current geopolitical context and how they can contribute to achieving the objectives spelled out in the European Green Deal.

“Fecc calls on regulatory predictability in combination with more EU investments in innovation and a science-based approach towards REACH and other major pieces of technical regulation as major legislative

framework in the chemical sector. At the same time the distribution sector would appreciate it if this valuable initiative could also lead to a more harmonised approach between REACH and the Biocidal Products Regulation (BPR) on substance identity,” Arns added.

“The Covid-19 pandemic has not only shown that chemicals are essential enablers for meeting the societal mega-challenges, but also that the Commission can identify processes to simplify methodologies for regulations without compromising compliance with the highest HSE standards. Fecc sees the strategy as an opportunity to review these types of overlaps in support of the Chemical Strategy for Sustainability objective of simplifying and strengthening its legal framework, fully in line with the Commission´s Better Regulation agenda, while ensuring its full enforcement in Europe.

“However,” Arns concluded, “the strategy’s success can only be ensured by greater policy coherence and a coordinated approach to support the Green Deal objectives.

This could be achieved by means of an intense stakeholder dialogue with the entire chemical value chain, to which the European distributors would be more than happy to actively contribute.” cefic.org www.fecc.org

 DIALOGUE IS NEEDED IF THE CHEMICAL INDUSTRY, AN ESSENTIAL ENABLER IN MEETING SOCIETAL MEGA-CHALLENGES, IT TO BE ABLE TO FULFIL ITS ROLE IN DELIVERING THE GREEN DEAL

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FULL FUEL FLEXIBILITY MARITIME • THERE ARE GOING TO BE DIFFERENT ROUTES TO A DECARBONISED SHIPPING INDUSTRY. ODFJELL IS LOOKING HARD AT INNOVATIVE FUEL CELL TECHNOLOGIES SHIPOWNERS, SHIPYARDS, PROPULSION manufacturers and marine architects around the world are currently engaged in a race against time to establish the engine technology of the future – a future that is coming closer every day, with the International Maritime Organisation (IMO) having set stringent limits on carbon dioxide emissions from merchant ships from 2030 and even more stringent limits due in force in 2050. Ships built today will certainly hope to be trading in 2030

“Ships are to be operated for 20 to 30 years and we need flexible solutions that can meet future emission requirements. We do not have time to wait, we have to think about zero emissions already now,” says Erik Hjortland, vice-president of technology at Odfjell.

“The fuel cell project is one of the paths we are pursuing. We focus on machinery rather than focusing on one single type of fuel.

Fuel cell technology gives us flexibility that ensures environmentally efficient operation

and plans will have to be in place for the next generation.

Leading chemical tanker operator Odfjell is participating in the development of fuel cell technologies that offer a way to meet those emissions limits, with potential emissions reductions of more than 40 per cent.

regardless of fuel changes that may occur in the years ahead.”

The development project, involving fuel cell technology expert Prototech, engine manufacturer Wärtsilä and Lundin Energy Norway alongside Odfjell, plans to test a 1.2 MW prototype fuel cell at the Sustainable

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Energy ‘catapult centre’ in Norway prior to its installation on one of Odfjell’s newest chemical tankers.

The aim of the project is to develop fuel cells capable of powering a seagoing vessel and using a range of fuel types, including ‘green’ ammonia and LNG. While LNG is being touted as a good way to meet the ‘IMO 2020’ restrictions on sulphur oxide emission, it is still carbon-based and the maritime world realises that it is only a stepping stone on the road towards a decarbonised industry.

PROMISING RESULTS Tests on the new fuels cells so far have been promising. Bernt Skeie, CEO of Prototech says: “Our tests show a CO² reduction of as much as 40 to 45 per cent when using LNG, compared to current solutions. Increased efficiency and reduced fuel consumption also provide significant cost savings, and the ship will be able to sail significantly longer on the same amount of energy. The system will also be ready to operate completely emission-free from the locations where, for instance, ammonia is available for bunkering.”

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“The technology also enables direct capture of CO², which will be yet another alternative for emission-free operation when logistics for CO² management become available,” Skeie adds.

The project aims to develop a technology that can provide emission-free operation over long distances. Battery solutions are currently not suitable for operating oceangoing ships, of which there are more than 50,000 operating globally and thus constitute a big share of international shipping. It is difficult to achieve the goal of climate neutrality without finding solutions for this segment.

The unique feature of the new technology is its high energy efficiency and the flexibility that enables substantial emission reductions from day one with the use of currently available infrastructure for LNG, while also preparing for emission-free operation in line with the development of value chains and infrastructure for sustainable fuels in the future.

“The development of this fuel cell is an example of how forward-looking shipping

 THE NEW FUEL CELL PROJECT WAS INTRODUCED TO NORWAY’S PRIME MINISTER, ERNA SOLBERG,

BY PROTOTECH’S BERN SKEIE (CENTRE) AND ODFJELL’S ERIK HJORTLAND

companies and our unique maritime expertise have the prerequisites to drive new solutions through a broad collaboration within the maritime cluster,” says Harald Solberg, CEO of the Norwegian Shipowners’ Association.

“In the long run, scaling up such solutions will be of great importance in achieving our climate goals, they will have business value, and they can create new jobs in Norway.

Norwegian shipping has set ambitious climate goals. This type of project is very important for us to be able to develop solutions that quickly reduce emissions.”

The development of large fuel cells will have implications in other sectors too, as Ingve Sørfonn, technical director at Wärtsilä, explains: “The new energy solution has the potential to take us a big step closer to the goal of climate neutrality. Fuel flexibility will be a significant contribution to secure future solutions for new ships. And it does not stop with ships, this solution can also be used in offshore oil and gas operations.”

THE BIGGER PICTURE Odfjell’s participation in the project is a concrete example of its commitment to the Sustainable Ocean Principles of the UN Global Compact, which it endorsed last year, and the UN Sustainable Development Goals (SDGs). It also participates in the ‘Getting to Zero’

coalition, a global alliance that is working to develop and operate zero-emission vessels on deepsea trades as early as 2030.

“As a global company, we have a responsibility to our employees, our investors, our customers, to the local communities where we operate, and to the global environment,” Odfjell CEO Kristian Mørch said at the time.

“By signing up to this initiative, we join businesses from around the world in setting clear and shared expectations industry-wide for a healthy and productive ocean. We look forward to contributing.”

The nine Sustainable Ocean Business principles build on and supplement the SDGs, providing a framework for responsible business practices in the oceans, as the UN explained at their launch in September 2019: “The 2030 Agenda for Sustainable Development calls on all stakeholders to conserve and sustainably use the ocean, seas and marine resources for sustainable development. Businesses have a shared responsibility, alongside governments and civil society, to take necessary actions and secure a healthy ocean.”

The UN is also clear that commitment to the principles will require collaboration both within and outside the maritime community.

It states: “By bringing together the leading industries in aquaculture, energy production, fisheries and shipping with key banks, equity funds and insurance companies, the platform has a cross-industry, cross-UN and crossGlobal Goals approach. The platform is designed to drive decision-making processes and catalyse partnerships to advance shared ocean priorities across all 17 Global Goals with a specific aim to scale up the commitments and performance of companies on this critical agenda.”

Odfjell was among the first companies in the shipping industry to sign up, committing itself to prevent pollution, manage its use of marine resources to ensure long-term sustainability, and be transparent about its ocean-related activities and their impact. www.odfjell.com www.prototech.no

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ON THE MOVE DOWNSTREAM • THE TRANSITION TO A CARBON-NEUTRAL SOCIETY LEAVES PLENTY OF SCOPE FOR OIL REFINERS AND DISTRIBUTORS TO MAKE A CONTRIBUTION, UKPIA SAYS THE UK PETROLEUM Industry Association (UKPIA) has released a new report, Transition, Transformation, and Innovation: Our role in the Net-Zero Challenge, that looks closely at the role the UK downstream oil sector can play – and is already playing - in meeting societal targets for decarbonisation. The report looks at some credible scenarios and proposes an illustrative pathway for the sector to help achieve government-mandated net-zero targets; it also offers some practical policy solutions to help industry overcome the challenges that those targets present.

The report provides three key findings: 1. Low-carbon liquid fuels can play a key role in the UK’s decarbonisation process and are already beginning to do so.

2. Hydrogen is a critical component of meeting

net-zero targets. The downstream sector is the largest producer of hydrogen in the world and can maintain and grow its role in producing and delivering zero-carbon emitting hydrogen.

3. A systems-based approach and enabling policy framework are required to produce low carbon and eventually net-zero liquid fuels.

As part of this, bespoke approaches must be considered for sectors such as aviation that have limited decarbonisation options.

“This is an exciting yet challenging period of evolution for the downstream oil sector,” says Stephen Marcos Jones, director-general of UKPIA. “We are committed to action on climate change and this report shows that, within the right policy framework, this sector can transform and deliver Net-Zero.

“Only with industry and government working hand-in-hand in a systems-based approach will the task of Net-Zero be achieved in the UK. As such, this report urges ongoing and rigorous dialogue to ensure optimal results.

We want to work now across government to make this report a reality.”

LIQUIDS WILL LAST The report is based on the assumption that liquid fuels – albeit of a low-carbon variety – will remain the fuel of choice for transport purposes. In this regard, the report seeks to persuade decision-makers that the UK’s oil refining, distribution and marketing sector still has a role to play in a net-zero world and is, in effect, a plea for the sector’s continued existence. That assumption is not so outrageous: the rate of uptake of electric and hybrid vehicles is not fast enough to generate the level of emissions reduction that is required and, in any case, the supply infrastructure is still lacking. Liquid fuels, even of a bio- or e-variety, can use the existing supply network.

As the UKPIA report says: “The downstream oil sector continues to evolve and is already contributing significant emissions reductions whether it be through delivery of biofuels or by reducing emissions in the manufacturing process. Multiple technological means exist to reduce manufacturing processes’ emissions to zero and deliver liquid fuels that have significantly lower carbon emissions across their lifecycle, which could be delivered at scale under the right economic framework.”

As well as being able to deliver low-carbon liquid fuels to help decarbonise the transport sector, UKPIA’s members, the Association says, have the potential to play a role in decarbonising other sectors, through industrial clustering, making better use of waste heat, and contributing its extensive experience of managing hydrogen to help in the development of the UK’s nascent hydrogen economy.

To do this, UKPISA says, there is a need for ‘joined-up government’ and collaboration between government and the industry, in order to deliver the policy framework that will enable businesses to undertake the necessary transformation. “The downstream sector is

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well-established with a history of delivering major projects with its highly skilled workforce, but such is the ambition in reaching the Net-Zero target that it cannot be done alone,” the report states.

NEEDED FROM GOVERNMENT The UKPIA report includes some key recommendations for that policy framework.

Firstly, government needs to help stimulate early demand for low-carbon liquid fuels and hydrogen in the transport sector, while also ensuring that consumers are informed about their role in the decarbonisation transition.

Standards and emissions labels for vehicles should be revised to show their lifecycle emissions, not just tailpipe emissions. The government must work with industry to develop sector-specific plans to decarbonise those sectors with limited decarbonisation options.

The UK needs a hydrogen strategy that sets out policy, regulatory and preferred business frameworks, giving clarity about how supply and demand can be grown together. The UK’s business environment needs to be adjusted to position the country as a first choice for investment in the technology required and to enable companies to compete in the global market. Similarly, the government should provide support for research, development and deployment of decarbonisation technologies, ensuring that they align with company needs.

It should also continue to promote industrial clusters with the downstream oil sector at their centre, and prepare the national workforce to delivery Net-Zero in a “just transition”. This will all require a regulatory framework that allows for innovation.

HYDROGEN ACTIVITY Interestingly, the UKPIA report focuses very much on the potential for hydrogen to contribute strongly to reaching Net-Zero in

 THE DOWNSTREAM SECTOR IS ALREADY CONTRIBUTING TO DECARBONISATION, THROUGH THE MANUFACTURE AND DISTRIBUTION OF BIOFUELS AND INVESTIGATION OF HYDROGEN TECHNOLOGIES

the downstream sector, with an important role to play in replacing refinery fuel gas as a source of energy. It can also be sold on for transport or heating use. “In this sense, there is a strong investment case for hydrogen

66 and Element Energy, is progressing with the ‘Gigastack’ project on the east coast of England, which will use ITM’s polymer electrolyte membrane technology and renewable electricity from Ørsted’s offshore wind farms to deliver renewable hydrogen to the Phillips 66 refinery. A first phase has already been completed and funding has been secured for a second phase, which aims to scale up production. “A key objective of the Gigastack project is to identify and highlight regulatory, commercial and technical challenges for real applications of industrialscale renewable hydrogen systems,” says Ørsted.

The second project is the HyNet lowcarbon hydrogen (LCH) development, to be situated near Essar Oil’s refinery at Stanlow in north-west England. It will use Johnson Matthey’s LCH technology, which includes carbon capture, and will use refinery fuel gas as a feedstock. A first plant will supply hydrogen as a substitute for existing refinery

production,” it says.

Until recently, the production of hydrogen by electrolysis had not been thought scalable for large-scale applications. UKPIA highlights two current projects that seek to overturn that consensus. Firstly, ITM Power Trading, in collaboration with Ørsted, Phillips

fuels, while a hydrogen-fired combined heat and power (CHP) plant is also under consideration.

The UKPIA report, Transition, Transformation and Innovation, can be downloaded from the Association’s website at https://ukpia.com/ media-centre/publications/.

“ONLY WITH INDUSTRY AND GOVERNMENT WORKING HAND-IN-HAND WILL NET-ZERO BE ACHIEVED IN THE UK”

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WASTE NOT, WANT NOT RENEWABLES • AN INNOVATIVE PELLETISATION PROJECT IN THE UK AIMS TO REDUCE LANDFILL AND AIR EMISSIONS, WHILE LEANING ON THE LOGISTICS EXPERTISE OF AV DAWSON

UK-BASED WASTE Knot Energy has received funding from Gresham House, an alternative asset management group, to build its first fuel pelleting plant. Waste Knot has chosen a brownfield site, owned by logistics specialist AV Dawson, in Middlesbrough as the location for this new alternative fuel project that will help reduce landfill and carbon emissions.

The plant will produce Waste Knot’s Green Knot branded pellets, which have a high calorific value and offer a reliable, lowemission bulk alternative to coal and pet-coke for energy-intensive industries.

AV Dawson’s Middlesbrough facility was selected as the site for the first plant due to its quayside location on the south side of the River Tees, providing a strategic entrance point to serve the UK and beyond. With construction now underway at the site, this marks an important step for the UK in developing infrastructure to process its own waste and providing an alternative to landfill.

Once completed, the facility will be able to produce more than 240,000 tonnes of fuel pellets per year, which will be transported within the UK by rail or exported by ship.

“We are completely redeveloping a whole area of our Middlesbrough site to provide a tailored solution for the customer that gives them a purpose-built facility with immediate access to the quayside, enabling the efficient production and export of pellets around the world,” says Gary Dawson (below right), managing director of AV Dawson.

“This project is an exciting step forward in the expansion of our port facilities on the River Tees. It is part of our long-term plans

to move into renewable and recyclable energy markets, supporting our diversification strategy and our environmental aspirations.

It also supports the region’s and the UK’s wider environmental challenges to create a circular economy, diverting waste from landfill whilst supporting the move away from fossil fuels,” Dawson adds.

JOBS AND CLEAN AIR “It is fantastic to see Teesside landing the first plant for this exciting new project,” says Tees Valley Mayor Ben Houchen. “Whether it is Net Zero Teesside, e-scooters or pioneering the use of hydrogen across Teesside, Darlington and Hartlepool, we are developing the technologies of the future and creating sustainable good quality, well paid local jobs for local workers. This amazing news further supports our ambitions to drive forward the clean energy agenda, further cementing our region’s reputation as an innovator and world leader in decarbonisation.”

Ed Simpson, investment director, new energy at Gresham House, says: “The benefits to the UK from the Waste Knot Energy project are myriad – from providing a waste disposal alternative to reducing carbon emission from the industrial sector and stimulating regional economic activity. Having just completed its final funding round, this is exactly the type of strategically important sustainable project [Gresham House’s British Strategic Investment Fund (BSIF)] is looking to facilitate, while generating attractive returns for investors.”

Waste Knot Energy is a waste trading company with extensive experience and network in the waste and cement industries.

It specialises in processing waste into high volume alternatives to fossil fuels. Waste Knot will use solid recovered fuel (SRF) as a raw material, sourced from regional suppliers.

AV Dawson is a third generation, familyowned company with strong roots in Teesside, having been founded in Middlesbrough more than 80 years ago. Its 40-ha site has raillinked warehousing and quayside facilities, as well as extensive plant equipment and a supporting road transport fleet. www.av-dawson.com www.wasteknotenergy.com

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RAIL REVOLUTION RAIL • CONNECTING THE RAILFREIGHT BUSINESS WITH DIGITISED TOOLS IS THE AIM OF THE RAILVIS.COM PLATFORM, GATHERING INFORMATION ON CAPACITY ACROSS EUROPE IN ONE PLACE THE RAILFREIGHT BUSINESS has been slow to change but new tools emerging from the wave of digitisation aim to bring the sector into a more connected world. HCB spoke to Adam Fronek, co-founder and director of Railvis.com, to find out what his ideas can do for the industry.

Around that time, digitisation and useful applications were starting to appear in my daily routines and I realised that the railfreight market was left out. Our team grabbed their courage and decided to change these difficult processes and to make the whole rail industry more efficient.

HCB: What was the idea behind the creation of the Railvis.com platform?

AF: I worked in a logistics company, organising daily railfreight transports for our customers.

I got tired of the endless phone calls and inefficient communication. It was very difficult to find suitable wagons for rental and free locomotive capacity. I attended many conferences on the rail industry and realised that all rail transport managers had the same problems.

HCB: So, what is Railvis.com all about?

AF: Railvis.com is a search platform for locomotives and wagons available for rental all across the European continent. Railway companies can offer their available wagons and locomotives and all potential customers can see all the offers, on a transparent map, and compare them in terms of price, technical parameters and location. Then they can make the best decision. Searching and ordering is fully efficient and modernised

thank to digitisation and the rail logistics market in Europe becomes interconnected.

HCB: What does Railvis.com bring to its users? And who can join the platform?

AF: Thanks to Railvis.com, companies can save a lot of time and money, win more opportunities, get a complete overview of the rail market and optimise their processes.

Users that are offering available rolling stock can find potential customers all over Europe in an efficient manner. Users search for available rolling stock can find many different offers, compare them and choose the best.

Being part of our platform brings enormous time savings. Searching and ordering processes that used to take days or even weeks are now being done within 15 minutes.

The platform can be used by railway operators, wagon and locomotive rental companies, wagon or locomotive manufacturers, workshops, freight forwarders, logistics companies, traders, manufacturers and industrial company.

Recently, a Polish railway operator and a Romanian freight forwarding company struck a deal for a two-month rental of specific wagons, confirming the platform’s importance – without Railvis.com they would have never found each other.

HCB: Why should companies join your project?

Who has already joined?

AF: On top of the benefits I already mentioned, I would like to highlight that our platform is independent, simple to use and extremely secure. Privacy and data security are of the utmost importance to us. Our server, located in Germany, fulfils the highest digital security requirements in Europe.

We listen to feedback from our customers and constantly improve and customise the parameters of our platform to the current needs of the railfreight industry.

We can also digitise and implement clients’ fleet systems, allowing them to be seamlessly synchronised with the Railvis.com platform.

 RAILVIS.COM PROVIDES IMMEDIATE VISIBILITY OF WAGON AVAILABILITY ACROSS EUROPE

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Thus, clients’ free capacities for rental are immediately visible in the market and ready to find customers. Last but not least, our platform enables large-scale uploading and connection to the web interface and corporate systems.

We are ready to bring this revolutionary change in logistics processes and help the whole railfreight industry to move into a new era. We strongly believe that this modernisation can bring more freight volumes onto rail and help it gain market share from road transport and sea freight.

Many different railway operators, wagon and locomotive rental companies, freight forwarders and logistics companies have already joined Railvis.com and new companies are entering every day. The

first companies came largely from central and western Europe but now the platform has new users coming from the Balkans and eastern Europe. railvis.com

Railvis.com • i mmediate overview of free capacities in Europe • efficient usage of railway assets, increasing productivity • significant time and money savings • modernising and digitising railfreight in Europe • secure, independent platform

 MEMBERS OF THE RAILVIS.COM TEAM

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CLEAN THE WHEELS RAIL • BETTER ASSET UTILISATION MEANS BETTER SUSTAINABILITY PERFORMANCE. NEXXIOT IS HELPING POLISH RAIL OPERATOR TRANSCHEM DELIVER THAT TO ITS CUSTOMERS POLAND-BASED RAIL OPERATOR Transchem has linked up with Nexxiot to digitise its wagon fleet with the aim of improving sustainability and control of the goods it carries. Nexxiot’s systems will help Transchem gather and analyse the data it needs to make better decisions over asset deployment, helping it reduce emissions in the transport of liquid chemicals and energy products.

“We noticed some of our partners were not as focused on the sustainability and emissions topic as we are,” says Rafał Cisek, director for international cooperation at Transchem. “We want to ensure we can say with confidence that we have done all we can to reduce unnecessary emissions and maximise the quality of the goods we

 LINKING WITH NEXXIOT WILL ALLOW TRANSCHEM TO IMPROVE ITS OPERATIONAL SUSTAINABILITY

transport. Our customers depend on us to do this for them.”

Transchem initially looked into buying the technology it needed and putting it together itself, but this was unfeasible. Cisek chose Nexxiot as a technology partner because it has an integrated approach on the technology and a reputation as market leader and innovator.

Nexxiot provided an integrated solution with sensors, gateway devices, device and data management and all the analytics and reporting that are required to extract profit.

With its innovative technology the company can track, find and protect cargo through intelligent alarms across the globe with an extremely accurate, below 1-metre precision.

“This now allows us to make assessments in real time on deployment of heating solutions and decide how much time is required to manage loading and unloading schedules,” Cisek says. “This means we save on shunting by managing the moves better, we provide better quality for customers and

we get better visibility on partner services to ensure we reach our own sustainability goals.”

MAKE IT SUSTAINABLE Many of the products Transchem moves in its 1,000-strong rail car fleet are temperaturesensitive and some, such as tar and bitumen, require heating to enable them to be unloaded.

“A lot of the time we feel like our partners overheat the product to be on the ‘safe’ side but this results in excess costs and wasted heat energy which leads to soaring emissions,” says Cisek. Nexxiot’s solution brings transparency to the process, reducing the need for such over-heating.

Other products Transchem transports are caustic or flammable, which means that the monitoring hardware fitted to the tanks needs to be intrinsically safe, something with which the Nexxiot kit also complies.

The partnership between Transchem and Nexxiot also illustrates that digitisation is not just about getting greater visibility in the transport chain, it is also fundamental to improving sustainability in transport.

Monika Ferenz, Nexxiot’s managing director in Poland, explains: “This is in line with our motivations to address the current global megatrend of improved sustainability and supply chain transparency. Our clients want to assess the environmental behaviour of partners and supply chain participants to get a single view of their actual energy utilisation and performance.

The deployment of the technology opens the path to multiple wins in social, environmental and business value.”

For its part, Transchem has a focus on innovative solutions and best-in-class services and, as such, has found that the issue of sustainability has risen to the top of the corporate agendas of its customers.

“Our customers naturally have high expectations,” says Cisek. “They see us as their quality service provider of choice and this step to digitise the rail fleet is in keeping with their requirements.” www.nexxiot.com www.transchem.com.pl

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THE CAP FITS TRACKING • OPTIMISING IBC UTILISATION THROUGH THE APPLICATION OF DIGITAL SYSTEMS HAS COME A STEP CLOSER NOW THAT PACKWISE IS STARTING TRIALS OF ITS SMART CAP AFTER THREE YEARS of development, Packwise has started trials of its Smart Cap for intermediate bulk containers (IBCs). It

need for more IBC production – a carbonintensive process – while also optimising the logistics chain and thereby saving fuel,

has recruited 25 IBC users across Europe to test the device over the next five months, anticipating full-scale production starting in January 2021.

The new hand-sized device is designed to cut costs, improve efficiency and enhance safety and environmental performance for users in the chemical, food and logistics sectors. It provides users with track-andtrace capabilities, automatic re-ordering, automated damage notifications and theft protection by means of a digital alarm.

This improves demand forecasting and best-before-date surveillance and helps avoid cross-contamination.

Gesche Weger, CEO of the Dresden-based startup, explains what this means for industry: “There are an estimated 10m IBCs in Germany alone and up to 300m across the globe, meaning the impact of improved logistical capabilities will be huge for the chemical, liquid, and food industries, plus a great benefit for the environment.”

“Smart Cap users are able to increase service levels to their customers because fill levels and overall stock can be observed, monitored and replenished in line with demands while benefitting from optimised distribution and recovery routes,” Weger continues.

storage and idle unit costs.

“Our Smart Cap technology enables businesses to enhance pay-per-consumption business models and makes the whole chain far more transparent by creating a digital twin,” says René Bernhardt, chief technology officer at Packwise. “We have been able to reduce the administrative burden with a greatly improved communication system that can be tailored to each business.”

The container and product data for each user, generated by the sensor in the Smart Cap, is encrypted and transmitted to the Packwise Flow web application where it

can be analysed, set to trigger notifications and alarms, and interfaced with existing ERP systems. It creates a digital twin of an IBC showing high-precision sensor data in real time. The platform tells users quickly about any deviation from set parameters and provides calls for action. It visualises and automates processes for various applications in the supply chain.

The Smart Cap can be easily mounted to any type of composite or metal IBC and, once attached, is ready for use to monitor fill level, location, temperature and movement. Once the IBC comes to the end of its life, the Smart Cap can be removed and attached to a new container. The Smart Cap has a battery with a five-year guaranteed life if set at a daily transmission interval.

The initial trial involves 25 businesses in the chemical production, chemical logstics and food logistics sectors in Germany, Switzerland, Austria, the Netherlands and the UK. Packwise envisages beginning production of tens of thousands of Smart Caps in the first half of next year. packwise.de

HOW IT DOES IT Smart Cap technology reduces the number of IBCs lost in the supply chain, reducing the

 THE PACKWISE SMART CAP OFFERS A CLEVER WAY TO OPTIMISE IBC UTILISATION

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ON THE RACK LOADING • THERE ARE SIX CHALLENGES TERMINAL OPERATORS FACE WITH BOTTOM LOADING API COUPLERS. OPW’S DAVID MORROW* OFFERS SOME SOLUTIONS WITHOUT DOUBT, THE piece of equipment that is the true workhorse in any type of liquids storage terminal is the bottomloading API coupler that serves as the conduit between the loading arms and the tank truck. In high-volume terminals, it is not unusual for these couplers to be connected and disconnected more than 50 times a day.

That is 50-plus head-on collisions between the coupler and adaptor, which translates into a huge amount of use and abuse.

Over the years, the design and operation of API couplers (also known as ‘load heads’) has

evolved to the point that they can reliably withstand the abuse that they are subjected to on a daily basis. However, the most dependable terminal liquid transfer operations are the ones in which the terminal makes every effort to ensure that the couplers and their components are cared for to the extent that the operation will consistently run smoothly. Terminals that experience excessive interruptions in their liquid transfer service are ones that cannot meet the demanding delivery schedules of their customers, with the result being lost revenue for both and

– maybe even more damaging – a loss of reputation.

With that in mind, there are six areas of concern that terminal operators must be on the lookout for and remedy if the efficiency of their couplers and their overall loading rack operations are to meet expected operational standards.

THE SIX CHALLENGES Seal wear If a coupler is experiencing leaks after it is connected to the delivery vehicle, the most likely culprit is a worn seal.

Specifically, the nose seal, which is the primary link between the truck and the coupler, may need to be replaced. Terminal operators must monitor this seal constantly and replace it at any sign of wear, lest a leak point develop.

Loading arm adjustment Another potential cause of leaks could be the positioning of the loading arms. Ideally, the loading arms should be balanced at the truck adaptor’s height of 30 to 35 inches off grade. If the arms are positioned either lower or higher than recommended, undue stress on the loading system can result, which can lead to the creation of leak paths.

Weak or broken wave springs While the first two conditions will generally result in minor leaks, a weak or broken wave spring in the coupler can lead to a significant product loss.

The wave spring is critical in producing effective coupler operation because it creates seal compression when it is connected to the truck adaptor. Closely monitoring the performance of the wave spring is important because if it were to break, resulting in insufficient seal compression, the coupler will need to be taken out of service. And while it is replaced, that downtime will compromise fuel-delivery schedules.

Thermal expansion Most couplers are rated for use at 75 to 80 psi (5.2 to 5.5 bar) but they can experience much higher pressures if thermal reliefs are not in place and functioning properly. In fact, extreme thermal expansion can create pressures in excess of 300 to 500 psi (20.7 to 34.5 bar). At pressures

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this high, the coupler could be at risk of a catastrophic failure leading to extreme loss of product. If the technician is having difficulty opening or closing the coupler handle, this may be a sign of thermal expansion issues.

Extreme temperatures Regardless of the ambient temperature, the terminal must keep product flowing. This can become more difficult when extreme temperatures are experienced and is especially true when extreme cold takes hold. Most couplers are designed to operate effectively at temperatures as low as 0˚F (-18˚C) but the seals may become compromised – leading to product leaks – if the temperature gets much lower. In this case, the terminal operator should consider employing one of the new cold-weather couplers that can operate in temperatures as low as -40˚F (-40˚C) that have begun to enter the market.

Dirt and debris build-up Terminal operators should regularly check the latches and cams on their couplers for any build-up of dirt and debris. If any contaminants are allowed to collect in the coupler, the cams may catch and create an imperfect seal, which can result in leaks. Extra attention should be paid to this area in the winter months when road salt and sand can collect on the face of couplers.

TO THE RESCUE Knowing how important it is for terminal operators to optimise their loading rack efficiency, the manufacturers of bottomloading API couplers have worked on developing advanced technologies that can meet the demands of high-volume liquid transfer activities around the world. One example is the Lynx Bottom-Loading Coupler from OPW Engineered Systems. This advanced coupler model combines all of the best

 OPW’S LYNX BOTTOM-LOADING COUPLER (OPPOSITE) FEATURES A UNIQUE U-PIN THAT ALLOWS FAST ASSEMBLY AND DISASSEMBLY TO MINIMISE DOWNTIME WHEN REPAIRS ARE NEEDED

features of API couplers in one device that has been designed to provide a superior and effortless bottom-loading experience.

The fulcrum of advanced API coupler design is the use of a unique U-pin that allows assembly and disassembly of the coupler in no more than 30 seconds. Other key features of the advanced design include: • In-field replacement of the main seals, on or off the arm • Wave-spring design that will last three times longer than competitive models • Durable stainless steel collar and hard anodised aluminum body for increased service durability and life • Four ‘true interlocking’ stainless steel latches that ensure secure coupling and maximum product containment • A wide variety of seal materials, including fluorocarbon, Buna-N (nitrile) and FFKM

• Common operating temperatures from -40˚F to 176˚F (-40˚C to 80˚C), with low-temperature seal options available.

All of these features – and how they optimise the efficiency and reliability of these models of advanced API couplers – can enable manufacturers to offer, for example, a five-year warranty on their operation.

The millions of gallons of fuel that pass through a storage terminal every year would have nowhere to go without API couplers.

That means their design and reliability must be unquestioned if the terminal is to feature a truly efficient loading rack operation.

Next-generation API couplers that can overcome the six concerns that can lead to compromised coupler operation and, by extension, loading rack efficiency can be recognised as true – and reliable – terminal workhorses.

• Short 5.9” (110 mm) and long 7.8” (200 mm) operating-handle lengths • Ergonomic operating handle and carry loop puts less physical strain on users • Maximum working pressure of 80 psi (5.5 bar) • Maximum surge pressure of 493 psi (34 bar)

*David Morrow is Director of Product Management for OPW Engineered Systems, part of Dover Corporation’s OPW division.

He can be reached on +1 (800) 547 3939 or David.morrow@opwglobal.com. More information can be found at opw-es.com.

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Terminals, which has been earmarked as one of our growth focus areas.”

Finalisation of the LoI and formation of a joint venture company are subject to final terms and conditions, including customary regulatory and shareholder approvals.

ROYAL VOPAK, WHICH operates the world’s largest network of independent bulk liquids storage terminals, has recently announced two developments that illustrate its current operational strategy, with both involving partnerships with third parties and focusing on linkages between tank capacity and industrial operations.

Last month Vopak signed a Letter of Intent (LoI) with Chandra Asri Petrochemical, Indonesia’s largest integrated petrochemical company. The LoI anticipates the two companies collaborating to develop petrochemical infrastructure in Cilegon, a major industrial centre in Banten province, Indonesia. Cilegon, which lies at the north-western point of Java, on the Sunda Strait, is also known as ‘steel city’ as it is the focus of steel production for south-east Asia but it is also the home of

As part of their collaboration, Vopak and Chandra Asri will explore storage opportunities to help develop existing petrochemical value chains and help expand the chemical cluster.

Erwin Ciputra, president and CEO of Chandra Asri, explains more: “We look forward to productive discussions with Vopak to jointly explore growing our existing jetty and tank farm operations, with two key strategic objectives: firstly to develop a new jetty and tank farm line of business to serve new third-party customers, and secondly to prepare for the investment and construction of the supporting infrastructure of our second petrochemical complex. We strongly believe in the growth potential of the petrochemical industry in Indonesia and this initiative marks another step forward in that direction to solidify our business scale and reach, to

GULF GROWTH News of the Indonesian project came shortly after Vopak formed a 50/50 joint venture with BlackRock’s Global Energy & Power Infrastructure Fund, Vopak Industrial Infrastructure Americas. The joint venture’s initial activity has been to acquire three major industrial terminals on the US Gulf Coast from Dow, a transaction that is expected to close before the end of the year.

The facilities involved are located in Freeport, Texas (53 tanks, 140,000 m³), St Charles, Louisiana (73 tanks, 409,000 m³) and Plaquemine, Louisiana (30 tanks, 303,000 m³), offering a total storage capacity of 852,000 m³. The terminals primarily handle chemicals, although the Plaquemine site also stores refined products. Vopak Industrial Infrastructure Americas will enter into long-term service agreements with Dow, which expects Vopak’s expertise to provide additional operational efficiencies and opportunities for growth.

“This unique expansion opportunity, in which we partner with the leading global investment experts of BlackRock, fits perfectly into Vopak’s growth strategy for industrial terminals,” says Vopak CEO Eelco Hoekstra. “We are very proud of our expertise and long track record of storing vital products with care for our customers and our drive to continue to invest.”

Mark Florian, managing director of BlackRock’s Global Energy & Power Infrastructure team, adds: “This investment is aligned with our strategy to deliver value for our investors by investing in high-quality

a significant and developing petrochemical cluster. Vopak has an existing terminal nearby at Merak.

serve the needs of our customers and the domestic market.”

Michiel Gilsing, president of Vopak’s Asia & Middle East division, adds: “We believe in the long-term growth potential of Indonesia and this potential collaboration will enable us to further invest in Indonesia in Industrial

and critical operating infrastructure assets that are supported by long-term contracts to provide cash flow visibility and partnering with industry leaders who are like-minded to help grow these businesses while maintaining a strong culture of safety.” www.vopak.com

ALL JOIN HANDS EXPANSION • VOPAK CONTINUES TO HONE ITS TERMINAL NETWORK, ANNOUNCING TWO INVESTMENTS IN PARNTERSHIP WITH PARTIES THAT CAN HELP SUPPORT ITS AMBITIONS

 VOPAK’S LATEST MOVES ARE ALIGNED WITH ITS FOCUS ON INVESTING IN INDUSTRIAL TERMINALS

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DEBATING CLUB PREVIEW • CHANGE IS UNDERWAY IN THE MEDITERRANEAN TERMINALLING SECTOR. THIS YEAR’S MED HUB DAY OFFERS AN OPPORTUNITY TO HEAR WHAT IT ALL MEANS FOR THE PAST three years, the Port of Tarragona has held a short seminar, the Med Hub Day, to bring together the various interests in bulk liquids logistics in the western Mediterranean region. This year, for obvious reasons, it cannot host the event in person but, given the importance of the discussions that take place there, it is going ahead with a virtual event, which takes place on 19 and 20 November.

This fourth Med Hub Day will be an interactive webinar, hosted through an online platform that will guarantee participation and networking between attendees. As before, it will aim to promote debate and exchange information about the strengths and opportunities that lie in the Mediterranean for the chemical and petrochemical supply chains.

For two days, storage terminal operators, port authorities, consignees, forwarders, market analysts and shippers from the chemical industry will meet online and discuss how the ‘new normal’ of the Covid-19 pandemic has affected the sector – and how it plans to re-emerge into a postpandemic era where many of the old challenges, along with some new ones, will remain to be addressed.

its efforts in recent years; other panels will consider bulk liquids terminals, a sector in some flux after recent takeovers and investments, and the chemical and petrochemical sectors.

In addition, the programme will include a presentation on the outlook for the chemical tanker market, with particular emphasis on the impact of the ‘IMO 2020’ rule and future efforts by the International Maritime Organisation (IMO) to reduce the environmental impact of shipping activities.

This has a significant impact on ports and terminals, as they will be the parties responsible for delivering cleaner fuels to ships calling at their jetties.

There will also be a look at rail-port intermodality as a surface transport link in a hub strategy. This again is an especial focus of the Port of Tarragona, which is expecting to be

linked to the Euro-gauge network within the next two years, helping ease the flow of goods arriving at its quays through the port and onto a much wider hinterland. It is illustrative of the importance of this development that Patrick Hore, head of the sales and operations centre for chemicals at DB Cargo BTT, has been lined up as one of the speakers.

And, of course, no conference these days would be complete without a look at the Covid-19 epidemic and its impact on the petrochemical logistics chain.

The event will be moderated by Patrick Kulsen, managing director of Insights Global, an independent market research and consultancy company focusing on the international petroleum and petrochemical industries. Kulsen was founder of PJK International, which merged with TankTerminals.com in 2016.

It will be a great pity not to be able to visit the beautiful port city of Tarragona for this year’s Med Hub Day but the port has done a great job in once more bringing together the disparate interests in the bulk liquids business and some intensive discussions can be expected.

The IV Med Hub Day 2020 is free to attend; those interested can register at www.hubdaytarragona. com.

LOTS TO TALK ABOUT Over the course of two days, different panel sessions will look at the role of the region’s ports in promoting bulk liquids handling – led by the Port of Tarragona, which has made the petrochemical sector a major focus of

 TARRAGONA HAS BEEN WORKING TO DEVELOP ITS ROLE AS A CHEMICAL TERMINALLING HUB

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NEWS BULLETIN

STORAGE TERMINALS

OT ADDS MORE TANKAGE

Oiltanking Antwerp Gas Terminal has commissioned a new 135,000-m³ fully refrigerated storage tank, dedicated to the storage of butane for Ineos. The new double-containment tank doubles capacity at the terminal and marks a first step in its expansion plans; a second tank with similar dimensions is already under construction.

“By completing this project, Oiltanking reiterates its capability as a world class service provider for gas logistics,” says Douglas van der Wiel, senior vice-president, EMEA at Oiltanking. “This project had its challenges along the way, but the project team managed to progress the construction in accordance with all applicable standards and more importantly in a safe way. We would obviously like to thank Ineos for its continued trust in our company as well as our employees, our main contractor TGE, and all other stakeholders involved for the hard work put in enabling us to reach this milestone.”

In South Africa, meanwhile, Oiltanking MOGS Saldanha has completed first phase commissioning at its new crude oil terminal in Saldanha Bay (above). The terminal currently

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has nine storage tanks offering 1.6m m³ of capacity and there is space to expand this to 2.1m m³. The terminal is equipped for crude oil blending and is connected to a VLCC jetty.

“With the completion of this project we offer a new range of services in terms of crude oil logistics,” says CEO Dirk Exalto. “I would like to thank our first moving clients entrusting us with the handling of their valuable products.

The project would not have been successful without the teamwork displayed by all parties involved. I would specifically like to thank WBHO, as our main contractor, as well as the subcontractors, all other stakeholders and Oiltanking MOGS Saldanha colleagues for the hard work that made us reach this milestone in a joint effort.”

Oiltanking MOGS Saldanha is a joint venture between Oiltanking, MOGS and Industrial Development Corporation of South Africa. www.oiltanking.com TRADEBE TAKES TWG

Tradebe Port Services, Tradebe’s tank storage division, has acquired TWG Tanklager Wilhelmsburg, which operates a 34,500-m³ chemical storage terminal in Hamburg,

Germany, from BDH Biodiesel Hamburg.

Tradebe says the site, one of the few remaining independent bulk iquids terminals in the port of Hamburg, has permits to expand capacity by 40,000 m³.

“We are delighted with this acquisition as it allows to expand our storage terminal business in the strategic Port of Hamburg,” says Josep Creixell, chairman of Barcelona-based Tradebe.

“This acquisition fits well with our strategy of providing a flexible and customised service to our clients and stakeholders, whilst enlarging the range of services into chemicals and specialty chemicals. Furthermore, the acquisition strengthens the presence of our Group in the German market, a key geography for our group’s growth strategy. We see very attractive opportunities to develop new projects in TWG.” Dr Heino Schmidt, CFO of Dr August Oetker AG, which sold the terminal, adds: “We are glad to have found a good new home for TWG Tanklager Wilhelmsburg. Tradebe Port Services is a strategic player, family-owned, and able to provide a good platform from which TWG Tanklager Wilhelmsburg will be able to grow and prosper.” Michael Westhagemann, senator for Economics and Innovation of the

STORAGE TERMINALS 45

Free and Hanseatic City of Hamburg, notes: “I am pleased that with Tradebe a new owner has been found who will keep the company and jobs and who would like to expand further at the location in the Port of Hamburg. This decision is based on the fact that a dynamic future awaits the Port of Hamburg that fits into the strategic direction of the company.” www.tradebe.com RUBIS READY FOR TEPSA

Rubis has reported a mixed set of results for the first half of 2020, with revenues overall down 21 per cent, largely due to a slump in sales and prices in its Rubis Énergie distribution business.

Rubis Terminal fared better, demonstrating “a great deal of resilience,” and achieving a 2 per cent increase in EBITDA to €43m.

The Covid-19 lockdown led to a 70 per cent drop in fuel consumption in France, which hit depot turnover, but the return of a contango market led to high demand for storage capacity at its terminals and to a number of new contracts being signed, particularly in Turkey.

Rubis also announces that Rubis Terminal,

now a joint venture with I Squared Capital, expects to close the acquisition of Spanish tank terminal operator Tepsa in the fourth quarter.

Last month it raised €150m through a bond issue to help fund the acquisition. rubis.fr ZENITH HEADS FOR LA

Zenith Energy has completed the acquisition of three bulk liquids storage terminals in the Los Angeles area from Plains All American Pipeline. “Zenith is excited to be entering the Los Angeles market with these strategic assets, which can efficiently supply California’s current energy needs with great flexibility to play a part in the future low-carbon energy landscape,” says Jeff Armstrong, president/CEO of Zenith.

The acquired assets comprise the Long Beach, Dominguez Hills and Alamitos terminals, which have a combined storage capacity of 8.2m bbl (1.3m m³), together with bi-directional pipelines linking the three sites together and to deepwater docks, local refineries and the bio-refining system in southern California.

“The Los Angeles Terminals and related

infrastructure are both beneficial for customers and strategically important for our business,” says Armstrong. “We look forward to bringing to bear our core values, including safety first and environmental protection among many others, through our expanded footprint to continue to deliver high-quality service. We are also excited to welcome new employees to the Zenith family as we swiftly transition operation of the terminals.”

Following the transaction, Zenith Terminals now has 23 sites in the US and two in Europe. zenithterminals.com PRAX BUYS IN ZEEBRUGGE

Harvest Energy Marine, part of the Prax Group, has acquired a 20,000-m³ storage terminal in Zeebrugge, Belgium from Total. The renamed Prax Terminals Belgium facility will be used primarily for the storage and supply of marine bunker fuels.

“I am delighted to announce the acquisition of the terminal in the port of Zeebrugge, which reflects our strategic objective to move into a new stage of accelerated investment, growth and development,” says Sanjeev Kumar, CEO of the Prax Group. “This acquisition demonstrates our proactive approach to the ever-changing needs of our customers in the marine fuels environment and our commitment to build a robust and reliable supply chain to meet those needs. It is the natural evolution in our progression towards making Harvest Energy Marine a leading player in the global marine market.”

Geert Boden, general manager of Harvest Energy Marine, adds: “As we continue to serve customers from right across the north west of the continent, it is imperative for us to maintain the strong brand reputation and high standards of safety, supply and service for which we are known. The acquisition of the terminal in Zeebrugge means that Harvest Energy Marine is readily able to adapt to the changes in the current bunkering market.

We are in a great place to respond to the requirements of our customers, both new and existing, in order to continue to deliver innovative solutions to reduce refuelling times, whilst providing customers with their most important resource.” prax.com

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BARENTZ INTERNATIONAL HAS entered into a definitive agreement to acquire Maroon Group, one of the largest specialty chemical distributors in North America. The acquisition is expected to close before the end of the year and is aligned with Barentz’ strategy of becoming a global leader in the life science and broader specialty chemical industries. Terry Hill, Maroon Group CEO, and his management team will continue to manage the business.

Hidde van der Wal, Barentz CEO, says:

The Netherlands and Europe very well and has been highly successful and active in the global ingredients industry for more than 30 years. We are very pleased that he will join the Management Board of Barentz and guide us, with his very talented team of approximately 300 specialists, towards a smooth continuation of excellence and growth of both companies.”

Hill says it was a logical decision to join with Barentz. “The deciding factor was that Barentz is already a global business and

BEST OF BOTH WORLDS The acquisition is expected to bring with it a number of synergies. “Our product portfolios are very complementary,” van der Wal says. “We have no conflicts of interest and we can learn a lot from each other. Maroon Group has significant scale in North America - the biggest economy of the world, where we were small, until today.

The combination will immediately make Barentz a leading global distributor with an excellent opportunity to establish new business segments in North America. It is a natural combination that enables us to offer quality and expertise to our combined customer base.”

Founded in 1977 and based in Avon, Ohio, Maroon generates an annual turnover of some $500m. It offers an industry-leading common infrastructure of technology, value-adding services, global sourcing and logistics network and a commitment to Creating Customer Success®. This operating philosophy, Barentz says, has enabled Maroon Group to offer its 5,000 customers, principal suppliers and employees with national capabilities, while maintaining a local focus.

Barentz was established in 1953 and now has operations in more than 60 countries with a strong presence in Europe and Asia and a growing presence in North and Latin America. The company employs around 1,100 people worldwide, sources ingredients from top global suppliers and serves over 15,000 customers.

Headquartered in the Netherlands, Barentz distributes ingredients for products to small- and medium-sized enterprises and large customers globally. The group sources branded specialty ingredients from leading manufacturers worldwide and its

“Terry Hill brings excellent experience and ‘know-how’. He also knows my home country

this creates tremendous opportunities to strengthen our business in North America and internationally,” he adds. “Barentz is well-known across the industry, we share the same philosophy and entrepreneurial DNA, and is the best possible new home for the stakeholders across our business.”

ingredients experts provide value-added technical support, including pre-mixing, blending, ingredient formulation and ingredient testing, from its state-of-the-art, customised formulation centres and application laboratories around the world. barentz.com

BARENTZ BUYS MAROON ACQUISITION • BARENTZ HAS TAKEN A DEEP DIVE INTO THE NORTH AMERICAN CHEMICAL DISTRIBUTION MARKET WITH THE ACQUISITION OF MAROON GROUP

 ADDING MAROON WILL PROVIDE BARENTZ WITH NEW EXPERTISE AND A MUCH BROADER REACH

HCB MONTHLY | NOVEMBER 2020

CHEMICAL DISTRIBUTION 47

São Paulo. Benzaquen said at the time: “This is a great step forward for all of us.

Chemspecs’ highly trained sales team of technical experts and the well-equipped application laboratory will be of great value.

It is the perfect complement to Tovani’s existing team of specialists, and it will certainly enhance the further development of our product portfolio and services.”

SINCE MOVING INTO Brazil in a big way with the finalisation of a joint venture with Tovani Benzaquen Ingredients in 2018, Barentz has invested heavily in the country, more than doubling the size of the operation. The most recent development includes the completion of two new application labs and a new centralised state-of-the-art warehouse, all located in São Paulo. The warehouse has been designed to the highest standards for the handling of pharmaceuticals, further enhancing the level of service that Tovani can offer.

Moses Benzaquen, CEO of Tovani, says the

directly related to the close relationship that now exists with Barentz. “We operate as one team with one goal, with a strong focus on knowledge,” he says. “With the global network of Barentz, we have access to all life science trends and to the latest development in applications and solutions. Our new facilities reflect our ambition to constantly enhance our support and services to all Latin American life science customers.”

Tovani Benzaquen, formed in 1992, serves more than 1,500 customers in across Brazil and in neighbouring countries. It is active

A BIGGER PLAN The arrangement with Tovani has been beneficial for Netherlands-headquartered Barentz, too. Frank Smit, its regional director, describes the Tovani business structure: “A customer-centric approach that is based upon deep knowledge, and with sole focus on the four life science markets is the recipe for successful growth. It all has a very positive impact on our business in all South American markets, where Barentz and its partners are making similar progress.”

Hidde van der Wal, CEO of Barentz, adds: “I expected a lot when we started our cooperation, but Moses and his team have really surpassed my expectations. Due to the Covid-19 pandemic, we cannot organise an official opening, but all new facilities at Tovani in São Paulo are operational now.

I feel proud, and for us this is the ideal showcase as to how we will build further on a local level to become the Number One global distributor in life science ingredients.”

The tie-up with Tovani was part of a larger entry into the Latin American market by Barentz, which in 2017 set up a similar joint venture with Deltagen Group covering northern and western countries on the continent. Speaking at the time, van der Wal said the Tovani deal fitted in perfectly with Barentz’ global strategy, which identified Latin America as an important new market.

expansion and growing success of the firm is

in the human nutrition, pharmaceuticals, personal care and animal nutrition sectors.

Since its acquisition it has expanded its workforce to nearly 100.

Part of that growth came in 2019 with the acquisition of Chemspecs, a local distributor of personal care ingredients, also based in

“Brazil has recovered after some years of recession and we now see great opportunities here, both to develop the country and to grow as a company,” he said. barentz.com tovani.com.br

BIG IN BRAZIL LATIN AMERICA • THE JOINT VENTURE SET UP BY BARENTZ AND TOVANI TWO YEARS AGO IS PAYING OFF, LEVERAGING THE EXPERTISE OF BOTH PARTNERS TO DOUBLE IN SIZE

 TOVANI HAS EXPANDED LAB AND WAREHOUSE SPACE TO COPE WITH RAPID BUSINESS GROWTH

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TWO-PART HARMONY STRATEGY • BRENNTAG IS LOOKING TO PROSPER IN THE RAPIDLY CHANGING GLOBAL MARKET BY RESTRUCTURING INTO TWO COMPLEMENTARY DIVISIONS BRENNTAG HAS INTRODUCED a new operating model that it says is a core element of the company’s ‘Project Brenntag’

range of industries. It stands for superior customer proximity and local market know-how,” says Steven Terwindt, future

transformation programme, designed to set the base for organic earnings growth in what it sees as a rapidly changing market environment.

The new structure will be introduced in January 2021; full-line chemical and ingredients distribution will remain at its core but this will be handled by two divisions: Brenntag Essentials and Brenntag Specialties.

“We are in a leading position globally and have a resilient business model. However, the requirements of our business partners and industry change,” says group CEO Christian Kohlpaintner. “By setting up two global champions with a differentiated steering approach and addressing the diverse markets needs and expectations, we develop our company to lead our industry as preferred partner for customers and suppliers.”

COO of Brenntag Essentials.

Brenntag Specialties will focus on ingredients and value-added services that are directly used in the production of customers’ end products.

The division will focus on selected industries: nutrition, pharmaceuticals, personal care/HI&I (Home, Industrial & Institutional), materials science (coatings and constructions, polymers, rubber), water treatment and lubricants.

These focus industries are large globally relevant sectors with significant solutions potential and characterised by high regulatory requirements.

“The division will more consequently leverage the full potential of our product and ingredients portfolio, which is the broadest in the market, and our unique technical and

TWO INTO ONE Brenntag Essentials will market a broad portfolio of process chemicals across a wide range of industries and applications.

Brenntag says the division will leverage scale with flexible and cost-efficient delivery at competitive prices and a highly efficient business process back end. Brenntag Essentials builds on its global reach and comprehensive product portfolio and continues to follow a geographic and regional logic.

“Brenntag Essentials will be the agile, lean, and efficient distribution partner of customers and suppliers in local geographies in a broad

 CHRISTIAN KOHLPAINTNER, BRENNTAG CEO, SAYS THE GROUP MUST FOLLOW CHANGING DEMAND

HCB MONTHLY | NOVEMBER 2020

application expertise. Thus, we will capture untapped opportunities together with our business partners,” says Henri Nejade, future COO of Brenntag Specialties.

The new operating model will be accompanied by changing roles and responsibilities in the Management Board, with Kohlpaintner and CFO Georg Müller being joined by the two divisional COOs. Brenntag says it will also appoint a Chief Transformation Officer, yet to be named, who will be responsible for the overall transformation process initiated, driving functional excellence and the digital transformation of Brenntag.

The new differentiated market approach is backed by a globally consistent and advanced customer segmentation and a customised sales organisation designed to reinforce Brenntag’s leadership in sales and customer service in the chemical distribution industry.

Brenntag says it continues to offer the most comprehensive portfolio of chemical products, ingredients, and value-added services in the industry. With the two new divisions the company will better leverage on its strengths while sharpening its profile towards relevant industry segments. www.brenntag.com

CHEMICAL DISTRIBUTION 49

BOUNCING BACK SURVEY • SALES HAVE PICKED UP LATELY IN THE UK’S CHEMICAL DISTRIBUTION SECTOR BUT, WITH A NO DEAL BREXIT STILL LIKELY, THE FUTURE LOOKS LESS ROSY FOR CBA MEMBERS THE LATEST QUARTERLY Supply Chain Trends survey, carried out by the UK’s Chemical Business Association (CBA) in early

back is that it is caused by a combination of two factors. Firstly, a return to more or less normal working by most downstream sectors

October, shows a surprising positive swing in orderbooks and sales expectations compared to the previous survey in June. On the other hand, margins are expected to be squeezed and employment prospects look gloomy.

Peter Newport, CBA’s chief executive, says: “This survey shows the volatility of the current market. CBA’s view of the bounce

after the full national Covid-19 lockdown.

Secondly, companies are stock building to prepare for a No Deal exit from the EU. This Brexit outcome has also resulted in the three-month outlook for sales margins declining by more than 25 per cent.”

CBA’s Supply Chain Trends survey asks companies to provide information on orderbooks, sales, sales margins and employment, on a ‘better–worse–same’ basis. To measure short-term trends, the analysis ignores responses answering ‘same’ and focuses on the positive or negative

 PETER NEWPORT, CBA’S EXECUTIVE DIRECTOR, SAYS BREXIT IS AFFECTING SALES MARGINS

balance provided by the difference between the ‘better-worse’ responses.

RESULTS IN DETAIL CBA members were asked if their orderbooks were better, worse, or the same than during the last three months. The October 2020 survey shows a balance of +20 per cent, representing a positive swing of 53 per cent in the three months since the last survey in June, when the corresponding figure was -33 per cent.

Similarly, respondents compared their current sales volumes with the preceding three months and indicated their expectations for the coming three months.

Current sales volumes have bounced back into positive territory, showing a balance of +25 per cent, a positive swing of 56 per cent since the last survey in June 2020. The outlook for the next three months is subdued, though, although it remains positive at +5 per cent, slightly lower than the figure reported in June.

Respondents compared current sales margins with the preceding three months and also forecast the trend over the coming three months. Current sales margins have turned negative at -6 per cent. Future sales margins are expected to accelerate this trend, having also turned negative (-32 per cent), a fall of 25 per cent since the last survey in June.

Finally, CBA members were asked if they expect employment levels to be higher, lower or remain the same over the coming three months. In June 2020, for the first time since CBA began conducting the survey in 2013, respondents reported a negative trends in employment prospects (-8 per cent); the latest survey sees this trend strengthening to a negative outlook of -11 per cent.

CBA represents the independent chemical supply chain, with a membership that includes distributors, traders, warehouse operators and logistics and transport companies; most of its members are small and medium-sized enterprises. Its distributor members have a combined annual turnover of £2.75bn and employ more than 8,700 people; its logistics member companies handle more than 4m tonnes of chemicals every year. www.chemical.org.uk

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

IMCD BIGGER IN BRAZIL

Ashland has appointed IMCD Brasil to distribute its full line of personal care and home care products in selected states in Brazil. “The addition of Ashland’s world-class ingredients to IMCD Brasil’s personal care and home care portfolios is an important win for our technical sales team,” says Nicolas Kaufmann, managing director of IMCD Brasil. “The availability of Ashland’s robust product line will support our customers and IMCD’s application specialists to develop in our laboratories new formulations that favour the creation of innovative products for the Brazilian market.”

“We are excited to extend our successful relationship in other regions of the world with IMCD to Brazil,” says Alessandro Moraes, Ashland’s general director for Latin America.

“We are confident that IMCD’s team of technical and market experts in the personal care and home care industries will add to Ashland’s structure, help expand business and further develop customer relationships.

HCB MONTHLY | NOVEMBER 2020

The entire national territory will be covered by IMCD Brasil, with the exception of the South region (Paraná, Santa Catarina and Rio Grande do Sul) where Ashland already has a distributor.”

In Finland, IMCD has acquired Oy KokkoFiber AB, a leading supplier of fibre-reinforced plastic composite materials. “IMCD Finland was established 25 years ago and since then we have strived to offer our customers best-in-class solutions,” says Sami Valkama, managing director of IMCD Finland. “We recognise the importance of the composite business in the Nordic region.

With this acquisition, IMCD will not only expand and strengthen its relationship with other suppliers in the composites market, but it will be in an excellent position to offer its synergistic product portfolio to new customers.”

In corporate news, IMCD has opened a new US headquarters facility in Westlake, Ohio (below), designed to accommodate current and future business growth and to complement its global digitisation initiatives to better serve its markets across the US.

Thomas Van Valkenburgh, president of IMCD US, says the new site was created “to enable employees in their quest to drive excellence as we serve both our principals and customer partners. This is not just a new office space, but a modern work environment carefully designed to inspire collaboration, galvanise partnerships and encourage entrepreneurship.” www.imcdgroup.com 3M GETS INTO CANADA WITH PH

Cleveland, Ohio-based Palmer Holland and 3M have expanded their long-term agreement, which will now include distribution of 3M Advanced Materials’ portfolio in Canada. “3M has been one of our premiere principals for over 30 years, and this expansion further solidifies the mutual dedication between our organisations to growing together,” says Tony Denton, Palmer Holland’s business director. “We are very excited to share our expertise throughout Canada.” www.palmerholland.com TELKO GROWS LUBES BUSINESS

Telko has acquired ILS Nordic and its subsidiary Autolubes Nordic, strengthening its position in the Nordic lubes market. ILS Nordic is a strategic distribution partner of BP Castrol in Sweden and Norway; Telko has been BP Castrol’s distributor in Finland since 1958.

CHEMICAL DISTRIBUTION 51

“The acquisition accelerates Telko’s strategic change. Telko has consistently freed up working capital from low-margin and slow-moving businesses and focused them on more profitable and more capital-efficient businesses,” says Aki Ojanen, CEO of Aspo Group, Telko’s parent company.

Mikko Pasanen, managing director of Telko, adds: “Over the past five years, Telko has been actively growing its lubricants business in the Nordic countries. The [ILS] acquisition brings strong synergies and is a significant step in the growth of Telko’s business and emergence as a leading player in the Nordic lubricants market.”

The acquisition will increase Telko’s net sales in 2021 by approximately €10m and will improve Telko’s relative profitability, the company says. The lubricants business will now be reported separately, alongside the two existing divisions of plastics and industrial chemicals. www.telko.com www.ilsnordic.se BIESTERFELD BROADENS DYMAX DEAL

Biesterfeld is expanding its distribution partnership with US manufacturer Dymax, adding Hungary, Romania and Bulgaria to the list of European countries where it supplies Dymax’s light-curing adhesives, casting compounds and conformal coatings, used mainly in medical technology, industry and electronics. Biesterfeld has been distributing the range in Germany, the Baltic states and much of central Europe since 2018.

Robert Ignatzek, head of sales EMEA at Dymax, says: “The partnership with Biesterfeld has been ambitious from the start, so we are very excited about expanding our collaboration in other European regions. With their considerable experience in the electronics industry, the experts at Biesterfeld guarantee comprehensive customer service and excellent logistics handling.”

“With the outstanding properties of the industrial adhesives and the high-performance light-curing technology, we can offer our customers tailor-made products and solutions that deliver production and competitive benefits,” adds Dr Anna Geffken, product manager at Biesterfeld Spezialchemie. www.biesterfeld.com

AXIEO NOW DKSH

DKSH has successfully completed the integration of Axieo in Australia and New Zealand, part of its strategy to expand the market position of its performance materials business unit in the Asia-Pacific region. The deal includes two innovation centres operates in collaboration with Monash University in Melbourne.

“DKSH is delighted to integrate Axieo into its global team,” says Ben Hopkins, senior director of DKSH Performance Materials, Australia & New Zealand. “Axieo is brimming with talent and innovative products. Our six offices give us true reach across Australia and New Zealand. The integration marks an exciting development for our new and existing customers, as we enrich the region with additional market insights, value-added services and our broad network. We see opportunities across many market segments. Our global resources and focus will really boost our bandwidth in both markets.

The Axieo business profile creates insights and opportunities for DKSH that we can leverage for our global network.”

Founded in 1950, Axieo has sold, marketed and distributed specialty chemicals and ingredients to nearly 3,000 customers. The ingredients are applied across the personal care, pharmaceutical as well as food and beverage industries. The specialty chemicals are used in multiple industrial applications, such as coatings, plastics and agriculture. www.dksh.com

AZELIS TURKEY OPENS NEW LAB

Azelis has opened a new application and training centre in Istanbul, Turkey. The facility will service the Turkish food, personal care and pharma markets and will offer product advice, formulation development and technical research. In addition, it will be used to host customer meetings, interactive formulation workshops, supplier meetings and internal technical trainings.

The new centre follows on from the acquisition in December 2019 by Azelis of Ekin Kimya, a leading supplier of high-quality chemicals to pharmaceutical, food, cosmetics, laboratory sectors in Turkey and surrounding countries.

“With our highly qualified staff in this application and technical centre, we will be able to further strengthen the technical support given to Azelis Turkey’s and Ekin Kimya’s Food & Health, Personal Care and Pharma customers at a local and international level, starting from concept to applied products to formulation creation,” says Sertaç Sürür, managing director of Azelis Turkey (pictured above at the new centre).

“In the near future, we will as well start servicing the home care market from this centre.

We’re looking forward to bring our customers even more benefits through the formulation support and inspire them with workshops.”

The new centre is one of more than 60 application labs across the global Azelis network; each is dedicated to a specific industry and to serving the local market. www.azelis.com

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ONLINE FOR SAILORS CHEMICAL TANKERS • CLOSE COLLABORATION BETWEEN THE AMERICAN P&I CLUB AND ABS CONTINUES TO DELIVER NEW LOSS PREVENTION INITIATIVES FOR THE INDUSTRY THE AMERICAN P&I Club and classification society ABS have worked together to produce a new e-learning module on chemical tanker operations, brought to life by state-of-the-art animations by IDESS IT, a frequent contributor to the American Club’s loss prevention capabilities.

The new e-learning module, Chemical Tank, has been developed in accordance with the IMO Model Course 1.03: Advance Training for Chemical Tanker Cargo Operations, 2016

 SEAFARERS WORKING ABOARD CHEMICAL TANKERS HAVE A COMPLEX SET OF WORK TASKS

edition, and in compliance with the competency and knowledge requirements contained in the 2010 edition of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW Code), Table A-V/1-1-3, Specification of minimum standard of competence in advanced training for chemical tanker cargo operations.

The new e-learning module will form an important new addition to the American Club’s growing library of safety and environmental protection related materials, the Club states.

This initiative is the latest development in an increasingly dynamic collaboration between the American Club and ABS in the

field of loss prevention which has, in the recent past, embraced subjects as diverse as measures to prevent injury caused by slips, trips and falls, and the protection of vessels from cyber attack.

POWER OF TWO Dr William Moore, senior vice-president and global director of loss prevention at SCB Inc, the American Club’s manager, says: “We are very pleased to be launching this important new e-learning tool for the promotion of best practices in the operation of chemical tankers. It is even more pleasing to be doing so in conjunction with our friends at ABS with whom we continue to develop new initiatives to enhance the safety of life and limb at sea, and the protection of the environment.”

“ABS is a leader in the classification of chemical tankers, so is uniquely well placed to work with the American Club to develop this industry-leading training,” says John McDonald, senior vice-president, global business development at ABS. “Together, we are using our strong technical and sector knowledge to help drive safety performance in the industry.”

New York-based American Steamship Owners Mutual Protection and Indemnity Association (the American Club), was founded in 1917 and is the only mutual Protection and Indemnity (P&I) club to be domiciled in the entire Americas. Day-to-day management of the American Club is provided by Shipowners Claims Bureau, also headquartered in New York. The Club is able to provide local service for its members across all time zones, communicating in a large number of different languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of 13 mutuals which together provide Protection and Indemnity insurance for some 90 per cent of all world shipping. www.american-club.com ww2.eagle.org

HCB MONTHLY | NOVEMBER 2020

COURSES & CONFERENCES 53

CONFERENCE DIARY The global Covid-19 pandemic has caused the cancellation or postponement of many events planned for the next few months. A number of events have also been transformed into ‘virtual’ meetings.

HCB has been trying to keep on top of developments but readers should check the dates and locations shown below as things are still changing rapidly.

NOVEMBER

DECEMBER

NACD Annual Meeting November 9-12, La Quinta, CA 49th Annual Meeting of the National Association of Chemical Distributors www.nacd.com/education-meetings/meetings/ annual-meeting/nacd-annual-meeting-2020/

World LNG Summit December 1-4, virtual 21st annual conference and awards dinner https://world.cwclng.com/

LogiPharma November 9-12, virtual Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com Argus LPG 2020: CIS and Global Markets November 19, virtual 15th annual event for the regional LPG sector www.argusmedia.com/en/conferences-eventslisting/lpg-2020 IV Med Hub Day 2020 November 19-20, virtual Fourth annual workshop on regional tank storage issues www.hubdaytarragona.com LNGgc Asia November 24-26, virtual Congress on commercial and technical aspects of LNG in the fuel transition www.informaconnect.com.sg/event/lnggc-asia/

NISTM December 8-9, The Woodlands 13th Annual National Aboveground Storage Tank Conference & Trade Show www.nistm.org

JANUARY

International Petroleum Week (IP Week) February 23-25, virtual Annual week of meetings, conferences and seminars www.ipweek.co.uk Hazardex 2020 & PPTEx February 24-25, Harrogate Conference and exhibition on hazardous area operations and personal protective technology www.hazardexonthenet.net/event.aspx?EventID=4903 Interpack February 25-March 3, Düsseldorf Major triennial packaging show www.interpack.com/

NISTM January 19-21, Orlando National Institute for Storage Tank Management’s 22nd annual international aboveground storage tank conference and trade show www.nistm.org/events.html

PPC Spring Meeting February 28-March 2, Tampa Bi-annual meeting and tradeshow of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php

COHMED January 25-28, virtual Annual conference of the Cooperative Hazardous Materials Enforcement Development (COHMED) programme https://cvsa.org/eventpage/events/cohmedconference/

MARCH

FEBRUARY

AFPM Annual Meeting March 7-9, San Antonio AFPM’s annual meeting for refiners and marketers www.afpm.org/events/292be90000010c IATA World Cargo Symposium March 9-11, Istanbul 14th global conference on air cargo www.iata.org/events/wcs/pages/index.aspx

SMM February 2-5, Hamburg 29th biennial exhibition and conference for the global shipping industry http://smm-hamburg.com/en

AFPM IPC March 14-16, San Antonio AFPM’s annual International Petrochemical Conference www.afpm.org/events/2926d800000001

Oil Terminal 2020 November 26-27, St Petersburg 15th oil terminal congress and exhibition www.oilterminal.org/en

GPCA Forum February 10-11, Dubai 15th annual meeting of the Gulf Petrochemicals & Chemicals Association www.gpcaforum.net

Intermodal Asia March 16-18, Shanghai Seventh annual exhibition for the Asian intermodal sector www.intermodal-asia.com

Hazards30 November 26-27, virtual Conference and exhibition on best practice in chemical and process safety www.icheme.org/career/events/hazards-30/

Internationale Gefahrgut-Tage Hamburg 2021 February 22-23, Hamburg 37th annual conference on dangerous goods transport (German language) www.ecomed-storck.de/Veranstaltungen/

StocExpo 2021 March 16-18, Antwerp The main annual exhibition and conference for the European tank terminal industry www.stocexpo.com/en/

Gefahrgut & Gefahrstoff November 24-26, Leipzig Trade fair for all those involved in the transport and internal logistics of dangerous goods and materials www.ggs-tradefair.com/?language=en

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

1/9/20

Gothenburg, freight trains chemicals Sweden

Large part of eastern Gothenburg was cordoned off after two freight trains collided during switching in yard; The one car overturned; one train had ethylene oxide, hydrogen peroxide; no leak reported but danger of explosion Local.se

4/9/20

Chardavol, truck chlorine Ilam, Iran

Gas cylinder with chlorine exploded during transport by truck; “driver carelessness” suspected; at least 210 people were affected by gas, though not seriously; other cylinders on truck were stabilised by fire crews

6/9/20

Lambata, road tanker fuel Niger, Nigeria

Road tanker collided head-on with another truck as both tried to avoid potholes in road; tanker was ruptured, This Day exploded; burning fuel spread to nearby shops, houses; no fatalities reported as area was quiet on Sunday

10/9/20

Liberty township, road tanker adhesive Ohio, US

Tank truck took ramp onto I-80 too fast, rolled over; driver and his dog escaped unhurt from cab; flammable adhesive load spilled from tanker, necessitating extensive cleanup; driver cited for carelessness

WKBN

14/9/20

Anthony, road tanker fuel Lagos, Nigeria

Driver lost control of laden road tanker, collided with five other vehicles; tanker was not compromised and there were no reports of injuries; all vehicles were towed away quickly to allow road to reopen

Premium Times

14/9/20

Tuba, Benguet, road tanker gasoline Philippines

Road tanker with 24,000 litres gasoline fell into ravine after driver attempted to overtake another tanker; driver hospitalised with injuries; no report of fire and no word of loss of cargo

Pilipino Star

17/9/20

Mülheim, road tanker fuel NRW, Germany

Road tanker caught fire under railway bridge after collision with car on A40; tanker had 35,000 litre cargo of unspecified fuel; both drivers injured; damage to road surface; bridge being inspected for safety

24Vest

21/9/20

nr Wartburg, road tanker KZN, South Africa

gasoline, diesel

13 people killed by collision of road tanker and minibus on R33; tanker driver reportedly ignored stop sign and then fled after accident, being sought by police; road closed during cleanup of spilled fuel cargo

Times Live

23/9/20

Felele, road tanker gasoline Kogi, Nigeria

At least 28 killed after NNPC road tanker lost control, rolled over onto car, burst into flames; brake failure thought to have caused crash; other vehicles were caught up in blaze

This Day

24/9/20

Ifako-Ijaiye, road tanker LPG Lagos, Nigeria

Mana Gas tanker with 30 tonnes LPG exploded after tyre burst; thought that valve was leaking; at least 30 people were injured; nearby buildings, vehicles destroyed in explosion

RSOE

HCB MONTHLY | NOVEMBER 2020

Vehicle Type

Substance

Details

Source

Khaleej Times

SAFETY 55

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Vessel

Substance

Details

Source

31/8/20 off Venezuela Nabarima crude oil

Water ingress reported on floating storage and offloading unit with 173,000 tonnes oil; FSO developed list; unions blamed lack of proper maintenance, employment of unqualified crew by operator PdVSA

FleetMon

1/9/20 off Sri Lanka MOL Charisma unknown

Fire broke out in cargo hold of containership en route from Port Klang to Mumbai; ship reduced speed, sailed FleetMon for Colombo and anchored off; fire said to have been extinguished by ship’s CO² system but needed inspection

3/9/20 off Sri Lanka New Diamond crude oil

Fire broke out in engine room of VLCC with 270,000 tonnes crude oil; one crewman killed, another injured; small leak of bunker fuel; intense effort prevented fire from spreading to cargo; tanker towed to shelter

Maritime Executive

7/9/20

off Dung Quat, Vietnam

Major explosion in cargo tanks of product tanker, in ballast, waiting to enter port; several crew blown overboard, one killed; thought that vapours from residue of last cargo may have been ignited

FleetMon

27/9/20

Hakata, Hansung cars Fukuoka, Japan

Fire broke out on cargo deck of Russian ro-ro with cargo of used cars from Vladivostock; at least 12 cars destroyed in fire, which took three hours to extinguish

FleetMon

28/9/20

off Kolkata, India

Fire broke out in container or containers aboard containership arriving from Port Klang; vessel had more than FleetMon 500 boxes on board; nature of cargo involved in fire as yet unknown; fire out by the following day

2/10/20

Melaka, Strovolos — Malaysia

Trung Thao — 36-BLC

X-Press unknown Godavari

Dredger Oceanline 5001 ran full-speed into side of tanker moored alongside supply vessel, causing hull FleetMon breach above water line and cargo deck damage; not clear if tanker was in cargo or why dredger did not see it

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

Details

Source

1/9/20

Bethlehem, Pennsylvania, US

chemical styrene plant

Half-mile evacuation of businesses around Sabic plant in Selkirk was ordered after leak of styrene at plant, found to be from leaking rail tank car; homes outside area advised to shelter in place; no injuries reported

Daily Gazette

3/9/20

Karachi, oil depot crude oil Pakistan

Two workers killed, three injured after fire broke out at Shell Oil depot in Keamari; blaze started on PSO’s 20-inch oil line but thought to have affected processing units; investigation underway

Dawn

4/9/20

Narayanganj, pipeline natural gas Bangladesh

Underground gas line exploded near mosque during evening prayers, killing 24, injuring many more; thought that leaking gas was ignited when air conditioning units came on after power cut, causing spark

Daily Sabah

4/9/20

Tbilisi, concert hall oxygen Georgia

One killed, three injured by explosion of oxygen cylinder during repair work at club in concert hall; cause of explosion not known

Caucasian Knot

8/9/20

Palm Bay, Florida, US

Explosion at FAR Chemical plant thought to have been caused by fault in refrigeration unit that caused fire, which spread to drums of isopropyl alcohol solution; plant evacuated, roads closed

Click Orlando

10/9/20

Beirut, warehouse cooking oil Lebanon

Major fire broke out in warehouse in port area, used to store cooking oil and other products as part of aid after BBC August’s ammonium nitrate blast; fire spread to tyres; possible that repair work was under way

10/9/20

nr Lawrenceville, warehouse acetylene Georgia, US

Fire broke out at loading dock of Averitt Express site, involving pallet of acetylene cylinders; fire was quickly extinguished; workers had been moving pallet with forklift at the time; thought one cylinder may have leaked

AJC

11/9/20

Nasim Shahr, Tehran, Iran

One killed, several injured by explosion in battery workshop; blast damaged vehicles, buildings; cause of explosion unclear; investigation underway

Tasnim

11/9/20

Zarqa, army depot munitions Jordan

Series of explosions in warehouse at army depot, used to store unusable mortar bombs; thought that shortcircuit sparked fire; committee formed to investigate blast

Al Jazeera

15/9/20

Chabany, pipeline natural gas Kyiv, Ukraine

1.5-metre export gas line suffered rupture, explosion; nearby settlements advised to keep power off in case of Interfax further ignition; no injuries reported; cause of rupture not known

16/9/20

Ancona, warehouse flammables Italy

Explosions sparked huge fire that spread through several warehouses in port area, said to be part of shipbuilding Ahram facility and containing various flammable liquids; vast clouds of smoke across city; cause not yet known Online

16/9/20

Edmond, pipeline natural gas Oklahoma, US

12-inch underground gas line exploded, leaving large crater in road; massive fire followed blast until gas supply was stopped; incident happened in rural area and no evacuations required; cause as yet unknown

KOCO

24/9/20

Lake Worth, pipeline natural gas Florida, US

Explosion on Florida Gas Transmission line caused severe damage to roads, overpass, but no injuries; Turnpike had to be closed until situation was brought under control; lengthy investigation likely

CBS12

27/9/20

Tianmen, Hubei, China

Five workers killed, one injured after explosion at Chutian Fine Chemical pharmaceutical plant; reports SCMP suggest blast happened when equipment was being tested; yellow smoke was pictured coming from wreckage

chemical IPA plant

battery unknown workshop

chemical acetamides plant

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AN EMERGING HAZARD INCIDENT REPORT • REGULATORY CHANGES ARE BEING ADVISED AFTER THE MAERSK HONAM INVESTIGATION POINTS TO IMPROPER CLASSIFICATION OF SDID THE DISASTROUS FIRE aboard the containership Maersk Honam on 6 March 2018, which caused the deaths of four crew members and left one missing, was most likely caused by the spontaneous self-decomposition of a large consignment of sodium dichloroisocyanurate dihydrate (SDID), according to a report into the incident by the Transport Safety Investigation Bureau (TSIB) of the Ministry of Transport, Singapore.

The ship, carrying 7,860 containers, was en route from Singapore to the Suez Canal when the fire broke out when it was in the Arabian Sea, some 900 nm west of the Indian coast.

As the fire took hold, the crew attempted to fight it by boundary cooling and the release of carbon dioxide into the cargo hold, but these attempts failed and the crew abandoned ship

less than three hours after the first sign of fire.

TSIB subsequently engaged Dr JH Burgoyne & Partners to undertake a very thorough inspection of the vessel, once it was secured and moored off Dubai.

Due to the nature of the incident and the severe fire damage to the ship, it has proved impossible to determine with certainty what caused the fire to break out. However, it started in a hold that had 54 containers of SDID, as well as 11 containers with dangerous goods of Division 5.1. The crew all reported smelling chlorine and their boiler suits were bleached, strongly suggesting that a chlorine compound was involved.

RULE OUT THE IMPOSSIBLE The investigation team considered other

causes. It was thought unlikely that another dangerous cargo had been misdeclared: there was no evidence found during the forensic examination of the hold where the fire started of anything that would indicate another source.

The crew had not noticed any smell indicating combustion and no black or grey smoke was seen during the initial phase of the incident.

The investigation team also ruled out the possibility of an electrical fault or that the heated fuel tanks had caused the fire.

TSIB says that the most likely explanation is that the integrity of the SDID consignment, carried in block stowage, had been compromised and that the heat generated by spontaneous self-decomposition worsened.

Although the crew demonstrated “good efforts” to take care of each other during the emergency, TSIB notes that the fire alarm was not raised at the onset of the fire, which led to a delay in the closure of magnetic fire doors in the accommodation block, immediately aft of the fire, and exterior ventilator vents.

As a result, toxic smoke spread through the accommodation areas.

HAZARDS NOT RECOGNISED TSIB also looked at the current classification of SDID, which has a chlorine content of 56 per cent, under the International Maritime Dangerous Goods (IMDG) Code. Shipping SDID under UN 3077 environmentally hazardous substance, solid, nos, in Class 9, permitted by special provision 135, does not properly reflect the potential secondary hazards of decomposition and instability, its report says.

SDID displays similar chemical properties to some substances assigned to Division 5.1.

In particular, the lower chlorine level in SDID compared to dichloroisocyanuric acid, assigned to UN 2465, Division 5.1, may have been deemed less risky when it was added to the IMDG Code. Test results for SDID, which formed the basis of its classification, had been derived from relatively small package sizes; in the Maersk Honam incident, the SDID was packaged into flexible intermediate bulk containers (FIBCs), each with around 1 tonne of product. In effect, this created a block of containers, each with around 20 tonnes of SDID, amounting to a cuboid of more than 1,000 tonnes.

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SAFETY 57

As with the earlier problems encountered with calcium hypochlorite, it would appear that packing SDID in large volumes has the effect of lowering the temperature at which self-accelerating decomposition can occur; this can be further affected by moisture or impurities, Burgoyne thinks. In certain circumstances, the report says, this temperature can be as low as those that might reasonably be expected to obtain in a ship’s hold in hot weather, as might easily be encountered in the Arabian Sea. It is likely that the decomposition reaction began well before the fire broke out.

ACTION NEEDED The report includes a call for action: “As such, the investigation team deems that there is merit for SP 135 to be reviewed for the carriage of SDID and its secondary hazard to be addressed in such a review.”

A relevant submission to the International Maritime Organisation’s (IMO) Subcommittee on the Carriage of Cargoes and Containers (CCC) should be considered at the earliest opportunity.

TSIB makes a direct comparison with calcium hypochlorite, saying that carriers should adopt similar requirements, as recommended by the Cargo Incident Notification System (CINS) and to consider stowing SDID on the weather deck and away from direct sunlight, so that water-based firefighting equipment can provide a better response in the event of a fire.

TSIB also notes that, even if the SDID was declared as a Division 5.1 substance, there would have been practical challenges to fighting the fire; the appropriate response would be to flood the hold with abundant water, as recommended by the IMDG Code’s Emergency Schedules (EmS), but this would have required cutting holes in the hatch covers. It is difficult to imagine how this

 THE DISATROUS FIRE ABOARD MAERSK HONAM HAS RAISED QUESTIONS ABOUT SDID; THE SHIP HAS SINCE BEEN REBUILT USING THE SALVAGED PORTION OF THE HULL (ABOVE)

would have been done, especially at night, and would in any case have been contrary to the EmS recommendation of moving crew away from the fire.

TSIB is aware that there are no statutory requirements for cargo holds to be fitted with water-flooding systems and calls for the International Convention on the Safety of Life at Sea (Solas) to be reviewed in this respect, particularly has containerships have become larger in recent years. It also notes that some classification societies have, since the Maersk Honam fire, developed standards and guidance on the installation and use of such firefighting system.

CONCLUSIONS AND RECOMMENDATIONS Since the fire, operator Maersk Line has made some operational changes, in particular by banning the stowage of IMDG containers immediately forward or aft of the accommodation block and engine casing. It has also made changes to fire drill procedures, firefighting procedures and the current training programme. In

area of fire protection and response in cargo holds.

Singapore, as the flag administration, has also recognised that existing fire protection, detection and extinction arrangements on containerships can be inadequate. In February 2020, in collaboration with the Marshall Islands registry, the International Association of Classification Societies (IACD) and the World Shipping Council (WSC), it submitted a paper to IMO’s Marine Safety Committee urging the evaluation of existing arrangements and a possible amendment of Solas and the Fire Safety System (FSS) Code, to include goal-based standards.

TSIB’s extensive report ends with recommendations for Maersk Line and for the flag administration. One of those urges Maersk to work with CINS or other organisations to produce guidelines for the safe carriage of SDID, recognising its primary and secondary hazards and in light of SP 135. Singapore is urged to consider submitting a paper to IMO or the UN Sub-committee of Experts on the Transport of Dangerous Goods, requesting

addition, it has strengthened its in-house IMDG acceptance procedure, focusing on safe stowage, and developed a scanning tool to improve the detection of undeclared or mis-declared dangerous goods. Maersk may also make technical design changes on future newbuildings, particularly in the

a review of SP 135 and consideration of classifying SDID under Division 5.1.

The TSIB report can be downloaded here: www.mot.gov.sg/docs/default-source/defaultdocument-library/final-report_mib-mai-cas035---fire-on-board-srs-maersk-honam-on-6march-2018.pdf.

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SCREEN TIME REPORT • LABELINE MOVED ITS BIENNIAL ROADSHOW ONLINE BUT THE REVAMPED ‘WEBSHOW’ PROVED VERY POPULAR AND MANAGED TO DELIVER A LOT OF CRUCIAL INFORMATION THIS COMING 1 January marks the arrival of the biennial updates to the various modal and regional regulations governing the transport of dangerous goods – although there are a variety of transitional periods and delays to complicate multimodal operations.

By rights, that deadline, which rolls around with depressing regularity every two years, should have been marked by gatherings of dangerous goods professionals, eager to make sure they were keeping up to date. But, in this strangest of years, travel restrictions

In the UK, one of the most useful of those events is Labeline’s Biennial Roadshow, which has been strongly supported by HCB over the past few years. While there had been plans in place to hold the one-day event in two venues, overwhelming forces led to it being moved online and it took place over three successive Tuesdays during September.

Labeline has pursued a policy of making the event as cheap to attend as possible, so as to spread the word around as many people as it can – the dangerous goods function

and social distancing measures meant that those events had to move themselves into the virtual world.

regularly being rewarded with a desultory budget in many companies. So moving it online meant that it was even cheaper than normal: attendees did not have to travel, did not have to get their suit cleaned, and did not have to pay the modest charge to register.

Indeed, the presentations were recorded and

 LABELINE HAS PLENTY OF COPIES OF ADR 2021 FOR THOSE WHO NEED IT

HCB MONTHLY | NOVEMBER 2020

are available for anyone to view, free of charge, on the Labeline website at www.labeline.com/ dangerous-goods-webshow/.

Given that free-to-view package, the hastily renamed Labeline Biennial Dangerous Goods Webshow attracted nearly 900 registrants, well in excess of attendance at recent physical events. It also attracted a wider range of sponsors, some of whom took the opportunity to speak and explain their goods and services to the audience.

GETTING AROUND The Webshow was split into three days, each running for a few hours in the afternoon (UK time), so as not to force viewers into peering into their screen for too long. Even so, it was notable to hear pleas for a coffee break every so often, which is perhaps a learning that can be taken away by others planning a similar virtual event.

The first day concentrated on the transport of dangerous goods by road and sea. The new edition of ADR, the regulations governing the transport of dangerous goods by road not just in Europe but increasingly in other parts of the world, is now available. Caroline Raine from the National Chemical Emergency Centre (NCEC) took attendees through the

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major changes. She stressed, however, that her presentation was based on the draft amendments to Annexes A and B of ADR, with the revised edition still awaiting formal adoption at the beginning of October.

The 2021 edition of ADR will contain fewer changes than is usual and fewer than it might have done had WP15, the body responsible for its maintenance, been able to hold its planned session in May, where there were some outstanding issues to be discussed. These will now have to roll over to the 2023 edition, unless contracting states decide to bring them forward through the use of multilateral special agreements.

NEW IN ADR Looking at the detail of ADR 2021, Raine said that there are only four new UN entries; three cover electronic detonators (UN 0511, 0512 and 0513), while UN 3549 addresses solid medical waste of Category A. This was prompted by the difficulty in dealing with large volumes of waste material during the response to the Ebola virus outbreaks but it may well come in handy in the future.

UN 3549 is not covered by the exemption in 1.1.3.6, Raine noted. On the other hand, the exemption in 1.1.3.7(b) has been revised to clarify that it applies to data loggers.

Data loggers also came up in the new 5.5.4, relating to dangerous goods in equipment in use or intended for use during transport.

Theoretically at least, this also applies to those shipping or carrying non-dangerous goods, as do other parts of Chapter 5.5.

Much of the detail of Raine’s presentation was covered in HCB’s report on the ADR revisions (see October 2020, page 104).

It is worth, though, highlighting the new special provision 390 dealing with the transport of lithium batteries packed with and in equipment in combined packaging, the update to tank provision TP19 on minimum shell thicknesses, the various changes to the marking and labelling specifications in Chapter 5, and the new 6.1.3.14 on packagings that have been tested to more than one design type. This last item

reflects common industry practice, Raine noted.

Raine also mentioned that various competent authorities had put in place relief from certain provisions in light of Covidrelated restrictions; these covered, inter alia, the expiry of tank and packaging certifications, drivers’ hours of service, and recurrent training. Many of these temporary measures are approaching their end date and it is not year clear if or when they will be renewed; dutyholders should be alert to any changes and disruption that they could cause.

Raine concluded by reporting that the new transitional legislation for the GB Carriage of Dangerous Goods etc Regulations, to reflect the UK’s eventual full exit from the EU, was expected to be published shortly.

[The legislation was subsequently made on 12 October.] While much of this amending regulation deals with the technicalities of the UK no longer being an EU member state, there is one substantive change: the replacement of the current EU ‘pi’ mark for pressure receptacles with a new and corresponding ‘rho’ mark for those pressure receptacles manufactured in the UK. CODE BREAKERS If a virtual event means that attendees do not have to travel, the same is true for the presenters. And, while Gene Sanders was due to have given an in-person training session on the Certified Dangerous Goods Practitioner qualification, he was still able to give his presentation on the upcoming changes to the International Maritime Dangerous Goods (IMDG) Code from his home base in Florida.

Sanders, an independent trainer and consultant, and also an HCB columnist, stressed that he could only speak about the expected changes, since the final text of Amendment 40-20 to the Code had not yet been finalised (and is still not). It is due to enter into force on a voluntary basis on 1 January 2021 and will become mandatory on 1 January 2022. As with ADR, the extent of the changes in the IMDG Code is not as »

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broad as might normally be expected and many of the amendments are the same as those in ADR, drawn as they are from the 21st revised edition of the UN Model Regulations, which was adopted in December 2018.

Sanders also stressed that ‘Editorial Corrections’ to the current IMDG Code, Amendment 39-18, will not be flagged up as changes in Amendment 40-20, so users will need to be alert to that and make sure that they have those corrections in hand.

Part of Sanders’ presentation dealt with changes that have not happened. For instance, there were proposals for amendment and editorial corrections put forward relating to the provisions for fumigated cargo transport units but no amendments were made.

Similarly, there have been discussions over special provision 76, which allows competent authorities to provide approval for the transport of goods that are otherwise forbidden. However, some states give no such approvals, others give approvals for some products; this leads to modal disharmony, especially if the same goods are forbidden for carriage by other modes.

Sanders said that some guidance on the topic is likely and there may be a revision in due course to move the provisions into an SP9xx mode-specific special provision.

Specific to the IMDG Code, there are a number of changes to the segregation provisions. Sanders noted in particular a rewording of SG53 to require certain products to be kept away from non-dangerous

liquid organic materials, which tend to be combustible, although no guidance is given and it may prove difficult to comply.

MORE FROM BIG DADDY Elsewhere in the new IMDG Code, 2,4 dichlorophenol, which has no specific proper shipping name, is being moved from UN 2020 Chlorophenols, solid to UN 2923 Corrosive solid, toxic, nos, as, on the basis of test data, it has a corrosive hazard. It will now be Class 8 (6.1, P) rather than Division 6.1 (P).

The filling and discharge of portable tanks aboard ship is not allowed, though the provision will be clarified to allow the use of salvage packaging in the event of a leak.

The dangerous goods declaration will have to show when the Limited or Excepted Quantity provisions are used, the change appearing in 5.4.3.2.1. This is consistent with the provisions in Chapters 3.4 and 3.5. The requirement to show the flash point on the DG declaration does not apply to Division 4.1 materials, though some sublimate (moving directly from solid to vapour) and perhaps it should apply. The provision will be clarified to state that the flash point shall only be shown on declarations for substances that have a Class 3 primary or subsidiary hazard with a flash point below or equal to 60˚C. The IMDG Code will now contain a provision in 6.8.3.1.2.1.2 to allow the use of fibrereinforced plastics (FRP) portable tanks with competent authority approval, in which case they will be treated as IMO 4 tanks. However, Sanders pointed out, the UN Sub-committee of Experts is also looking at FRP tanks so there may be further changes to come.

There may also be some action on the classification of carbon and charcoal (UN 1361 and 1362) in order to have modal harmonisation on the circumstances under which these products can be shipped unregulated. Discussion so far has centred on the entry in column (17) of the Dangerous Goods List, which may change, Sanders said. HCB readers should be aware that there have been a number of serious fires

 EXPERT SPEAKERS FROM AROUND THE WORLD WERE ABLE TO APPEAR ON THE WEBSHOW

HCB MONTHLY | NOVEMBER 2020

REGULATIONS 61

aboard containerships that have been traced to charcoal shipments, so IMO will need to get this right.

While he was on the call, Labeline had asked Sanders to provide an update on the US Hazardous Materials Regulations in 49 CFR, though as he pointed out, there had not been much activity recently. The final rule under HM-215O was published on 11 May this year; this is the international harmonisation rule, which brought the US into line with the modal provisions that took effect at the start of 2019, so the US regulators are getting a little behind. A notice of proposed rulemaking under HM-215P, the next biennial harmonisation rule, was due by August 2020 but has so far not appeared.

One item in HM-215O was a renewed definition of polymerising substances; shippers should be aware that the US definition does not exactly align with the UN’s cut-offs for self-accelerating decomposition temperature and is, in fact, more restrictive.

THE FLY GUYS Labeline’s longstanding relationships with the regulatory bodies means that it can reach out and attract the very highest calibre of speaker to its events. That was certainly the case when it came to an update on the air mode, where presentations were given by Dave Brennan, assistant director, cargo safety and standards at the International Air Transport Association (IATA), whose department is responsible for maintaining the IATA Dangerous Goods Regulations, and Geoff Leach of The Dangerous Goods Office, who for many years was chair of the International Civil Aviation Organisation’s (ICAO) Dangerous Goods Panel.

Brennan ran through some of the major changes that appear in the 62nd edition of the IATA DGR, which takes effect promptly on 1 January 2021 (see HCB October 2020, page 108 for full details). He highlighted a number of issues that those involved in the transport of dangerous goods by air need to be aware of, not least the major new provisions for competency-based training and assessment (CBTA), though these have a two-year transitional period. Employers will now be

accountable for ensuring that their staff are competent through assessment and will have to ensure that the training they are given is appropriate to their roles: the tables in 1.5.A/B will be deleted, with the aim of making employers give more thought to the specific training required for each individual.

Elsewhere, there are some changes in line with other modal regulations and various amendments to the special provisions.

Brennan thought that the revised A215, dealing with the technical name for environmentally hazardous substances, may be challenging and stressed that the technical name must appear elsewhere in the Dangerous Goods List in capitals.

IATA has also toughened up the packing instruction relating to solids containing dangerous goods. This follows an incident in which packages containing hand wipes leaked in transit.

IATA draws its DGR mainly on the basis of ICAO’s Technical Instructions; Brennan noted that ICAO has varied from other modes in the application of the new provisions for data loggers, fearing that large batteries might end up in air transport without regulation. Discussions on this topic are ongoing and Brennan felt that an addendum might appear (Leach thought it unlikely) in order to facilitate multimodal shipments.

MOVE ONLINE Following a presentation by Scott Dimmock of Dangerous Goods Online Training, Leach discussed issues surrounding the delivery of training online, especially when the new CBTA provisions are arriving. “Necessity is the mother of invention,” he observed, saying that the Covid-19 pandemic has made in-person training virtually impossible.

It was necessary to find ways of transferring classroom training to a webinar format.

What Leach has found is that there are some unexpected practical challenges. For a start, the IATA DGR is copyright material, unlike ADR. It cannot be copied, so students have to be provided with an actual copy of the regulations, along with workbooks. So much is fairly straightforward – it is getting the valuable IATA regulations back that is a problem.»

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In addition, Leach said, companies need to make sure their employees have the time to take the course and concentrate on it – they cannot be distracted by other tasks.

“Is this the new normal?” Leach asked.

“I sincerely hope not!” It is vital for those active in the dangerous goods supply chain, not just trainers, to get out and meet people.

But online training will, he hoped, provide

HCB MONTHLY | NOVEMBER 2020

a model for reaching remote locations in future.

Herman Teering of DGOffice looked at digitisation more broadly, noting that IATA began its e-freight project in the mid-2000s.

An XML specification for dangerous goods documentation appeared in 2009 but it was only in 2018 that airlines began taking it seriously. DGOffice is helping develop

that trend, working in Europe through the Dangerous Goods Transport Information Network Association (DGTINA) and participating in a ‘sandbox’ project in the US and Canada, which is due to run to 2022, although this is more focused on rail transport. IATA has also established a specific work group in the area of XML standards.

The problem comes, Teering said, when various different standards are developed; some of them are mode-specific, which is a shame, he said, though it seems a big task to get a standardised set of data for all types of transport. However, the net is spreading wider all the time, with the EU looking at moving other transport documentation into an electronic sphere.

OFF THE BOOKS There were many other presentations over the three days, covering security, enforcement, response and more. Phil Rice from Abloy Ltd, one of the sponsors, introduced attendees to

REGULATIONS 63

Abloy’s new high-security locking system, which leverages the benefits of digitisation to not only provide its clients with the assurance that their shipments are not being stolen or tampered with, but also to restrict access to those who need it.

For instance, Rice said, a ‘smart’ lock such as Abloy’s new CLIQ Connect Key can tell the owner who opened the container and where, when and for how long it was open. It can be set to only allow access at a certain place and does not even need a key – a code can be sent to a mobile phone that will open the lock.

Attendees also heard from Terry Harvey and Jason Dearsley, respectively chair and vice-chair of the CDG Practitioners Forum, established in 2000 to allow police forces in the UK to share best enforcement practice and their experiences of dangerous goods on the road. They showed some examples

his many years as a Dangerous Goods Safety Adviser.

Jon Lang from NCEC gave an insight into the expectations and requirements for delivering specialist advice over the phone to those dealing with chemical incidents.

Nick Bailey from Ambipar Response and Aaron Montgomery, CEO of Ouray Group, gave an overview of the specialist resources needed to carry out clean-up, post incident clean-up and remediation, known as level 3 response, in various parts of the world.

At the end of the event, Keith Kingham, Labeline’s managing director, expressed his pleasure at the level of engagement.

“I am delighted that so many of our customers from around the world were able to attend the Webshow - and that we had such a positive feedback from both attendees and sponsors. Labeline is much more than a one-stop shop for DG compliance, we are

of bad practice which, sadly, seem all too common and all too difficult to eradicate.

Mark Spence, chair of the British Association of DG Professionals (BADGP), illustrated the rights and wrongs of dangerous goods packaging, citing plenty of examples that he has come across in

pleased to support the sector by sponsoring the industry’s trade associations and investing in events such as this.”

Since the event, Labeline has taken delivery of its stock of ADR 2021 and is also supplying RID 2021 and the IATA DGR. www.labeline.com

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64 BACK PAGE

NOT OTHERWISE SPECIFIED WHAT IT SAYS ON THE TIN Coronavirus lockdowns and restrictions have been hard on many of us, though here on the back page we are relatively happy as long as the wine deliveries keep turning up. But in some parts of the world people are used to being stuck at home with little to do and, in many of them, young minds turn easily to mischief.

So it is perhaps not surprising that a number of teenagers got themselves in a spot of trouble last month in Dallas County, Indiana.

The local Sheriff’s Office received several calls from residents near the small town of Woodward with reports of a large explosion.

On arrival, they discovered that three lads had been indulging in a spot of shooting practice; unfortunately, they were using as targets tins of Tannerite, a compound of ammonium nitrate and aluminium powder used to make exploding rifle targets.

Tannerite is normally used in small quantities and has to be mixed to become explosive, which means it is legal under federal law, according to the ATF. However, firing a round at an entire tin is not the recommended practice and the whole thing blew up. Fortunately for them, the boys were standing far enough away not to be hurt and police could not find that they broke any laws.

FLY IN THE OINTMENT There are other ways of causing an unintended explosion in the home, as an 80-year-old man in the Dordogne region of France found out to his cost in September. Sitting down to dinner, he was irritated by a fly buzzing around him.

He reached for his electronic fly swatter and tried to pin down the pest.

Sadly for the man, a gas canister in the house was leaking and a spark from the swatter ignited the gas, causing an explosion that destroyed his kitchen and badly damaged the roof of his home. The man came out of the incident with just a burn to his hand but, local reports said, had to check into a local campsite while his house was repaired.

There does, though, seem to be a pattern here: the Des Moines Register noted in its report of the incident that there had been two cases of explosions involving Tannerite during ‘gender reveal’ parties and one, in southern California, had caused a fire in September that was still burning in October.

also evidently used in blood pressure monitors.

In this case, the mercury in the unit spilled out and led to the arrival of the Massachusetts Hazmat Team and local police. Funnily enough, no injuries were reported, no one was hurt and “the general public was never at risk”.

Maybe we were ok back at school too.

HCB MONTHLY | NOVEMBER 2020

QUICKSILVER RESPONSE Here on the Back Page we are old enough to remember poking mercury around on the desk with a pen during chemistry lessons at school, but these days mercury is seen as a Very Bad Thing indeed. Our friends at HazmatNation have recently filed several reports of large-scale responses to mercury spills, most recently one at a medical centre in Raynham, Massachusetts where last month an old blood pressure monitor was accidentally knocked over, occasioning a Tier 1 hazmat response.

Mercury, as we all know, was regularly used in thermometers and barometers and was

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