HCB Magazine October 2018

EDITOR’S LETTER

Europe is, historically, the birthplace of the chemical industry.

Experimentation and hard work during the Industrial Revolution spurred development of new techniques, initially in Scotland before spreading in the UK and very rapidly also in France, Belgium and Germany. A spirit of innovation and entrepreneurship, allied to ideas for doing old things better and making brand new products pushed the European industry forward until by the 1920s it was dominated by ICI, IG Farben and Rhône-Poulenc, with Dow catching up for North America.

More recently, that venerable tradition has had to face a new reality. Economic and demographic changes over the past hundred years have meant that European producers have been left behind by new production centres in the Middle East – benefitting from low feedstock costs – and Asia, closer to the booming economies and centres of rapidly rising demand, with their new and highly efficient production plants. The slump in oil prices a few years ago further hurt Europe’s competitive position, which slipped again with the emergence of new, lowcost production in the US, based on shale gas feedstocks.

Lately though, the pendulum has swung back in Europe’s favour; rising oil prices have undercut the advantages of low-cost producers and the importance of logistics in getting product to market – and Europe remains a huge market –have encouraged investment in new and more efficient production capacity and responsive, flexible supply chains, especially in the hub ports and industrial clusters in Europe.

And having led the Industrial Revolution, Europe is also at the forefront of the so-called fourth revolution: the application of digitised technologies to identify inefficiencies and enhance competitiveness, not just between companies but between the various regions of the world.

This year has seen a lot of progress in terms of digitisation throughout the chemical supply chain. A workshop hosted by EPCA and the Vlerick Business School in June highlighted the activities of some of those companies that are seen as front runners in the process (our report on which starts on page 26 of this issue). It is evident that those who have thought seriously about the opportunities offered by digitisation are also keenly aware of the threats that it presents, not least the risk that, should the chemical industry and its logistics partners not embark on the road to digitisation, start-ups and IT specialists will come in and disrupt the established ecosystem.

Those front runners have also experienced the organisational changes that come with the process of digitisation, changes that fit in with the generational shift that is going on across the business world. The successful corporation of the future will be looser, devolving decisionmaking down the managerial chain and opening its borders to collaboration and cooperation with its suppliers, customers and, even, competitors.

This process is happening quickly and there is a risk that, should the European industry as a whole not take heed of the way the winds are blowing, it will once again find itself behind the curve. There is a role to be played by its representative organisations, not least in helping establish neutral and nonprofit platforms to enable digitisation across all business relationships in the supply chain.

This reality will inform much of the discussion at this year’s EPCA Annual Meeting in Vienna; we should all know more by the end of it.

Peter Mackay

CONTENTS

VOLUME 39 • NUMBER 10

UP FRONT

Letter from the editor 01

Learning by Training 04

30 Years Ago 05

View from the Porch Swing 06

EPCA SPECIAL SUPPLEMENT

Welcome to tomorrow

Previewing the EPCA Annual Meeting 08

Future days

Johan Devos looks back and forwards 12

Let’s go digital

Potential in the chemical supply chain 16

Back to the future

EPCA’s workshop on digitisation 20

Continue the discussion Reflections on the workshop 32

STORAGE TERMINALS

Changing tack

Vopak responds to the market 39

Trim the sales

Odfjell tweaks its stragegy 42

Ready for anything Noord Natie expands in Antwerp 43

View from the top TEPSA’s Nuria Blasco speaks to HCB 44

The fourth estate

The advantages of Moerdijk 46 What goes around Antwerp pushes for sustainability 50 News bulletin – storage terminals 52

TANKER SHIPPING

Brighter later Odfjell waits for upturn 54

Age cannot wither her Essberger defends older tankers 56

Sweat the small stuff

Smaller LPG tankers doing well 59 News bulletin – tanker shipping 60

TANKS & LOGISTICS

Business as unusual Rotterdam prepares for Brexit 63

The front runner Hoyer leads on smart transport 67

Soaring into Europe

Eagletainer aims for a share of the pie 68

Man-machine interface

M&S considers digitisation 70

Ask the expert Chemical Express on safety 71

Keeping up with chemicals Trifleet considers the market 72

Pass it on The fourth generation Kubenz 74

Open to gains

Sharing data for all-round benefits 76

The new standard

Latest hose from Elaflex 78

Navigating change

Shamrock offers financial advice 81

Make mine Mouvex

Choosing the right pump 83

Bin the bag

Why do shippers stick with flexibags? 86 News bulletin – tanks and logistics 88

CHEMICAL DISTRIBUTION

The French connection Report from the Fecc Congress 92

Proof of the pudding CBA reports improved safety 95 Things are looking up Distributors report better results 96

COURSES & CONFERENCES

Training courses 98

Conference Diary 101

SAFETY

Incident Log 102

Stick to the speed limit

Protecting against diesel runaway 106

REGULATIONS

Turn of the page

Working on 2021’s ADR 108

Do the right thing

Enforcement on the agenda at VCA seminar 114

Vote of confidence

Results of the survey of DG pros 118

BACK PAGE

Not otherwise specified 120

NEXT MONTH

Developments in the IBC market

Focus on tank container depots What’s new in terminal equipment IATA’s rules for 2019

Editor–in–Chief

Peter Mackay

Email: peter.mackay@hcblive.com

Tel: +44 (0) 7769 685 085

Deputy Editor

Sam Hearne

Email: sam.hearne@hcblive.com

Tel: +44 (0) 208 371 4041

Managing Director

Samuel Ford

Email: samuel.ford@hcblive.com

Tel: +44 (0)20 8371 4035

Commercial Manager

Ben Newall

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

Campaigns Director

Craig Vine

Email: Craig.Vine@hcblive.com

Tel: +44 (0) 20 8371 4014

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

ISSN 2059-5735

Managing Editor

Stephen Mitchell

Email: stephen.mitchell@hcblive.com

Tel: +44 (0) 20 8371 4045

Associate Editor

Brian Dixon

Media Production Manager

Jodie Oliver

Designer Natalie Clay

Cargo Media Ltd

Marlborough House 298 Regents Park Road, London N3 2SZ www.hcblive.com

LEARNING BY TRAINING

By Arend van Campen UNCERTAINTY

This is a continuation of my earlier column on ‘Chaos’. Here is a quote from Complexity Labs: Uncertainty is the inability to know everything fully. It is a fundamental property of complex systems primarily due to, the large number of elements, high interconnectivity, interdependence, nonlinear interactions and coevolution. Feedback loops during a system’s development make the space of possible future states to the system grow at an exponential rate. Within complex environments, our traditional analytical methods for modelling the future – that depend on probability and statistics – break down.

What does this mean for the dangerous goods sector? For those who have been reading my columns, it should be evident: we are having to acknowledge that our current management systems may be or are outdated. To deal with increasing complexity, much more is needed to build resilience and govern our industrial systems. We first have to understand that terminals, refineries, chemical process units, etc are complex living social systems of communication and that we need special skills in order to control and manage them.

Management cannot be imposed from the outside in the form of more rules, regulation or compliance demand, but has to be done from the inside. You as a manager can learn how to use new, exciting systems sciences to help you to re-design industries into viable systems that then can be maximally controlled and sustained.

We developed a new method of learning and are teaching managers how to design such systems by using information feedback loop mapping techniques. We ask managers: ‘Are you truly in control or just lucky nothing happened yet?’ and start right there.

You see, nature works in a certain manner and always finds new ways to ensure that life can be continued. Benevolent systems can be continued although they always need to adapt, whilst harmful systems will be discontinued and replaced.

The same applies to businesses. The idea is that when we try to improve a bad design, it becomes worse. The best response is to redesign the entire process so that this new design can be considered functional and does not need outside regulation. This actually means that in order to thrive and be in control, ‘uncertainty’, needs to be minimised. This is possible if you know how to do it, but if you don’t know, you can learn it from us.

I always say, ‘people have little time left, but our planet has all the time in the world.’ You all must have noticed the changing climate and endured the heat in July and August? Perhaps you say, ‘climate change is a hoax and should be denied, I don’t believe in it.’ Are you really sure about that? But uncertainty cannot be evaded. Uncertainty always plays a significant part in our observation of reality. The issue that climate change is real or not is irrelevant. What is important here is the fact that it is information and that only by using ‘all information’ uncertainty can be reduced. Something to think about?

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.

30 YEARS AGO

A LOOK BACK AT OCTOBER 1988

HCB’s October 1988 issue was something of a whopper – almost as big as the current number. There were two reasons for that: there was a lot to report on in terms of regulatory changes, while it was also the preview issue for the Gastech exhibition in Kuala Lumpur later that month. In those days, LNG was something of a niche subject but, over the past decade, the business has grown so much that every man and his dog has an opinion on it and there are a lot of specialised publications, so it is not a market we now cover to any great extent.

Meanwhile, back in the world of hazardous and noxious substances, IMO’s Legal Committee was just about to take a close look at the draft HNS Convention, which sought to do for bulk and packaged chemicals what the Civil Liability Convention had already done for oil cargoes: to establish a system to provide compensation to those who suffer losses in the event of pollution.

It seemed a relatively straightforward idea at the time, but so many complications became apparent over the years that the HNS Convention still awaits ratification by the required number of IMO members.

Another initiative was somewhat more successful. We carried a report from Michael Gut of the Swiss Society of Chemical Industry on the system of classifying road tunnels from the point of view of the dangerous goods that were permitted through them. This was an issue of particular concern to Switzerland, which has more tunnels per kilometre of road than any other country. The Swiss model was used, after a number of serious incidents, as the basis for the tunnel restrictions now in place in ADR.

Meanwhile, the European Parliament was becoming interested in the transport of dangerous goods, again in response to some serious accidents. It was about to debate the ‘Visser Report’, compiled by Ben Visser, MEP. The report included some sensible proposals, particularly on training, licensing and, perhaps most significantly, the need to ensure harmonisation in terms of classification and the transport provisions across various modes.

There were, though, some more problematic proposals, such as the mandatory separation of dangerous goods from passenger transport; this would hardly be feasible in, say, ferry operations, nor in air transport. It had also been proposed that all dangerous goods should be moved by “the least dangerous mode of transport”, taking account of loading and handling as well as the actual movement of goods.

At the time, HCB wondered if the insistence on harmonisation was a good thing, as there had been a trend towards the mutual recognition of national regulations and that seemed to be working well. However, the European Parliament had in mind the aim to create a free transport market across what was then the European Economic Community (EEC, now the EU) and stressed that this could only be achieved if “binding decisions on harmonisation are taken to guarantee the safety of humans and the environment when dangerous substances and wastes are transported”.

That may have been a radical idea at the time but now, with all 28 EU states applying RID and ADR to their domestic transport as well as international movements, we have to say that harmonisation has worked.

FROM THE PORCH SWING

UNINTENDED CONSEQUENCES

I’ve really liked some of the people that I’ve shared a department or group with. In fact, usually, most of them. One year, a person that I’m still friends with today, had a milestone birthday. So I organized an at work celebration a bit more elaborate than the usual and, although we didn’t usually exchange gifts, I helped everyone pick out some inexpensive personalized or gag gifts. Everything went great. The customized birthday cake had just the right words and image, the gifts were laughed at by the group yet appreciated by the recipient, and every one seemed to have a good time.

The next day I needed to interact with a different co-worker, also one that is still my friend today, but she seemed a little aloof. After asking what was wrong and receiving a toneless “nothing” in response, I pushed harder. It turns out this friend had had a milestone birthday several weeks earlier, but nobody even mentioned it. I hadn’t even known it was her birthday and, if I had, I’d’ve done the same things I did for the first co-worker. But intent aside, the elaborate birthday celebration for one person had hurt another person’s feelings. I haven’t

forgotten that even well-intentioned ideas can sometimes have unintended consequences.

A really good DG idea is to make hazard communication as language-independent as possible. Obviously, the symbols on labels, placards, and some marks help make written language unnecessary. But what do we do about some hazard communication that must be in words, in particular Proper Shipping Names (PSNs)?

Well, you might think that’s an easy question, easily answered. We use four-digit identification numbers (usually, but not always starting UN) and give each different PSN its own unique number. This approach has worked well for decades and continues to work well today. Certainly, those involved with electronic data storage and communication love the idea of transmitting or entering only four characters and being able to retrieve much longer PSNs.

However, in today’s world of global shipping, where DG info is transferred to, from, and among various carriers in various modes, problems using only the identification numbers instead of the PSNs are cropping up occasionally. DG regulations sometimes

require us to modify proper shipping names by adding one or more words to the PSN. It’s these extra words that can, sometimes, cause problems when omitted. And replacement of one of these modified PSNs by its identification number for purposes of e-transmission can cause such an omission when the PSN is reconstituted at the other end.

MIXTURE or SOLUTION: If a nail polish remover is 95% acetone with a few innocuous additives like pink color and rose scent, its transport classification will be UN1090, Acetone Solution (or Acetone Mixture), 3, II. If this is abbreviated to just UN1090 and reconstituted later, the PSN becomes merely Acetone. So what? If this stuff spills and the emergency response team sees just Acetone as the PSN on the shipping document, they will expect to see a colorless, transparent liquid that smells like, well, acetone. But if they see pink liquid, and if they smell roses, they’re likely to question the accuracy of the transport classification. And if the PSN is possibly wrong, the emergency responders will wonder if the primary hazard is wrong, too.

I assure you that responding to a spill of an unknown chemical that might have a variety of hazards is much more difficult and time-consuming than responding to a wellcharacterized, single hazard, flammable liquid spill. So, keeping the “solution” or “mixture” as part of the PSN is crucial, because it tells the emergency responders that even though it doesn’t look or smell like acetone, if they treat it as Acetone they’ll be taking the appropriate response measures.

STABILIZED: If a material might either decompose or polymerize dangerously when not stabilized, that material is forbidden from transport. But when that materials has been stabilized, by any of a variety of methods such as blanketing, addition of inhibitors, or temperature control, it is no longer forbidden. If such a material has any other hazard, it is classified per that hazard, and “stabilized” is added to the PSN. For example, it is possible to have a UN3082, Environmentally Hazardous Substance, Liquid, n.o.s. (appropriate

technical name), 9, III. When abbreviating this classification as ‘UN3082’ or even as ‘UN3082 (appropriate technical name)’ and later reconstituting, the “stabilized” is almost certainly lost.

As events on the MSC Flaminia showed us, chemical inhibitors don’t last forever, and prolonged exposure to warmth might shorten that duration. We’ll never know for sure, but wouldn’t it have been nice for the crew of the Flaminia to know the material was “stabilized”, so perhaps they could have treated it differently and prevented the subsequent, deadly, disaster?

RESIDUE LAST CONTAINED or variants thereof: To be sure, this addition to a PSN isn’t always strictly an addition to the PSN itself, but sometimes an additional description element to a full shipping paper description, and might be optional. But it might be important for transporters, handlers, and responders to know whether a container is full of a flammable liquid with minimal air (and thus oxygen) available, and thus not likely to ignite, or is mostly full of a mixture of flammable vapors and oxygen just ready to be set off into an explosion by a spark, static electricity charge, or spot of heat. Clearly, the additional information can be helpful, and shouldn’t be lost somewhere along the transport chain.

HOT or ELEVATED TEMPERATURE: Retained thermal energy isn’t a hazard listed in Classes 1 to 8, and didn’t use to be in Class 9 until there were some accidents and people got hurt because they didn’t know the spilled material was very, very hot. So, ETM (elevated temperature material) got added to Class 9, where it gets a PSN and identification number that warn of the hazard, IF that’s the only hazard. But what if something in Classes 1 to 8 is shipped at an excessively high temperature? Well, then we must add the word HOT to the PSN, unless “molten” or “elevated temperature” is already part of the PSN.

So, what happens if the identification number was used instead of the full description and the word “HOT” got lost when reconstituting the description for a non-original shipping document? Wouldn’t it

be possible for a tank truck or ISO container involved in an auto accident to spill large amounts of a, say, HOT corrosive solid, onto a highway and median? Could the police officers directing traffic around the spill get too close and get thermal burns. Could the heat set the dead or dry grass in the median on fire with no one prepared to deal with that possibility? The word HOT was originally there for a good reason.

INHALATION HAZARD: This one is also technically a basic description add-on rather than just a PSN add-on, but the concept is the same. The USA requires the addition of this term when a chemical is a toxic gas or liberates large amounts of toxic gas when spilled. It doesn’t require much imagination to realize that emergency response procedures related to evacuations could differ drastically depending upon the presence or absence of these additional words. However, to be fair, I don’t think this is quite as likely to be a problem, as just “2.3” communicates the same thing and many of the 6.1 Inhalation Hazards are already listed by name with appropriate response measures fairly well known. But, for mixtures and for new chemicals, of which there are millions, the presence or absence of “Inhalation Hazard” from the n.o.s. description could conceivably affect many lives.

MOLTEN: The word “molten” can occasionally stand in for the word HOT, but often doesn’t mean there’s any heat above what the atmospheric temperature is. The cutoff point for determining whether a chemical is a liquid or a solid is 20˚C (68˚F), so anything that melts above that temperature is a solid by definition. But, we do know that ambient temperature during transport can get up to (and sometimes over) 55˚C (131˚F). So, any material with a melting point above 20˚C but below 55˚C might turn into the ‘liquid phase’ during transportation, even though it’s a solid by definition and PSN. How do we let people know that a ruptured container of a “solid” may not just fall out into a stationary pile like a normal solid, but might actually flow away, a long ways away, from the container itself because it is a solid in a liquid state?

We require the addition of the word “molten” to the PSN. Conceivably, losing the “molten” during e-transmission of DG info from one party to another could cause someone to not adequately contain a spilled ‘solid’, which could then cause additional, unnecessary problems.

So far we have six examples of potential or actual problems that could be or have been caused by omitting the PSN modifiers after e-transmission of DG data. There are others, although I don’t think they’re as much a safety as an environmental risk; Marine Pollutant, the USA’s RQ (hazardous substance), and the word “WASTE”. Nonetheless, even if omitting them generates a lesser level of concern, omitting them when they’re required is non-compliant, and could conceivably damage our environment.

As we move more and more to electronic or virtual shipping documents, we risk the unintended consequences of losing important safety information if we’re not very, very careful. As the investigation into the Flaminia disaster showed us, we’ve already got electronic communication systems that have this problem, so it’s actual, not theoretical.

In my opinion, from my Porch Swing, I think we need to ensure DG experts during training have these ‘add-ons’ emphasized more than they’ve been mentioned in the past, and then the DG experts will know to be sure to have the computer programmers take them into account. And wow, isn’t that a lot of people affected? Count up all the trainers and training program creators, add the number of DG experts in the world with or without a certification or DGSA, and then top it off with everyone who has input into how e-shipping papers should and will work, and you’ll have what I believe is a large number. So, fixing this will likely involve a significant amount of effort. And it’s all due to an unexpected, unintended consequence of a fantastically helpful system that helps us be (mostly) language-independent.

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

PUBLICATION PREPARED BY HCB FOR THE 52ND EPCA ANNUAL MEETING 7TH TO 10TH OCTOBER – VIENNA, AUSTRIA

WELCOME TO TOMORROW

Anyone who attended the 51st EPCA Annual Meeting, which took place in Berlin in October 2017, will have had the chance to see Prof Dr Ann Vereecke, Faculty Dean of the Vlerick Business School, present some early results of a study looking at the process of digitisation in the petrochemical industry and in its supply chain. Her presentation contained a lot to think about

and alarmed some in the audience with the speed at which change is coming to the industry.

In the year since then, the line of inquiry has been continued, with EPCA and Vlerick Business School continuing to cooperate on the publication of the full report of the 2017 study and a workshop in June to discuss its findings and get industry together to share a

range of views and opinions. At the end of that workshop, speakers and delegates alike were insistent that the conversation should continue: there are risks and opportunities aplenty in the new digitised world and a big role for EPCA to play in helping producers and their logistics service providers navigate that future.

THE PETROCHEMICAL INDUSTRY HAS A BIG PART TO PLAY IN CREATING TOMORROW’S RESILIENT CITIES. EPCA’S 52ND ANNUAL MEETING GIVES A FORUM TO DISCUSS WHAT THAT MEANS FOR THE SECTOR

READY FOR TOMORROW

And indeed the conversation is continuing, starting this month at the 52nd EPCA Annual Meeting in Vienna, which runs from 7 to 10 October. The theme of the event is: ‘Petrochemicals and the Low-Carbon Economy: Versatile Solutions for Greater Sustainability’. Digitisation and digital transformation can provide many of the tools needed to allow industry to offer versatility and help it meets its commitments in terms of sustainability and the move towards a circular economy.

As such, digitisation will be part of the agenda during both the Opening Session and the Logistic and Supply Chain Session on the second day, which will be on the topic of

‘Innovation and Innovative Concepts for a More Sustainable Supply Chain’. That will illustrate breakthrough technologies and collaborative practices under development within the petrochemical industry and its supply chain and discuss how this sector is adapting its traditional business model to new feedstocks and natural resources as well as to new sustainability requirements from regulators, customers and other partners in the value chain.

THE WISDOM OF YOUTH

The other crucial element in the future petrochemicals industry will be talent – and

not just the traditional talent of chemical engineers and specialist logistics professionals, but young people with IT skills who can help create the digital future.

EPCA has been doing a lot in recent years to attract young people to the petrochemical industry and will continue its efforts this year through its joint sponsorship of the European Youth Debating Competition (EYDC). The final of this year’s EYDC will take place during the EPCA Annual Meeting, with the winners being announced during the closing lunch session. The topic for debate is: ‘Living, learning, working and moving in Smart Cities of the future: with or without plastics and petrochemicals?’.

That topic highlights what petrochemical producers are going to have to grapple with in the years to come: innovative IT systems will transform the way that people live and interact with their environment and much of that will be enabled by the very materials that petrochemical companies have developed and continue to develop. Yet the public is losing faith in polymers, in particular, as shown by the outcry over plastics pollution in the oceans.

It will be interesting to see how the young debaters approach these issues; their opinions could perhaps help guide today’s industry leaders to shape tomorrow’s world. Indeed, the Opening Session on Tuesday 9 October has a very similar theme: 'Systematic Solutions to Energy-Efficient and Climate-Resilient Cities', featuring a keynote address by the pioneering architect and engineer Carlo F Ratti, founder of SENSEable City Lab at the Massachusetts Institute of Technology.

SOMETHING NEW

Regular attendees at the EPCA Annual Meeting will notice some changes this year. The calendar has been moved slightly, in order to give more time for delegates to meet and talk – and we all know how much they like to do that. There is a pre-conference seminar organised by IHS Markit on the morning of Monday 8 October, with the annual welcome dinner moved to Monday evening and taking place at the Rathaus.

Regulars will also notice that some things do not change; the massive crowd that will attend the EPCA Annual Meeting will be spread around a number of hotels, centred on the Wiener Stadtpark in the middle of town. The Sessions will be held in the Hotel Hilton Vienna am Stadtpark, while the Logistics Village will be a short walk away on the ground floor and mezzanine level of the Hotel InterContinental.

Taking the theme of digitisation a step further, registered delegates will have access to a dedicated

app, giving information on the programme, speakers, transport and meeting rooms.

All this and more information can be found on the EPCA website, www.epca.eu. HCB will, as ever, be in attendance and will come back with a full report on the event in a later issue. HCB

FUTURE DAYS

JOHAN DEVOS, CHAIR OF EPCA’S SUPPLY CHAIN PROGRAMME COMMITTEE, REPORTS ON A HECTIC YEAR HELPING INDUSTRY TO MEET NEW CHALLENGES IN TRADE AND TECHNOLOGY

The changing market – in particular the new importance of Asia – and the consequently more complex, global supply chains have made the European petrochemical industry more than ever aware of the importance of a robust and resilient network of supply chains,” says Johan Devos, Sales Manager Europe at Bertschi AG and, for the past five years, chair of EPCA’s Supply Chain Programme Committee (SCPC).

There are other challenges facing the industry, too. For instance, both in the US and Europe there is a shortage of truck drivers trained to move chemicals; in Europe, road congestion is getting only worse, encouraging a shift away f rom road transport to intermodal movements wherever possible.

Thus, says Devos, the industry – both chemical producers and their logistics service providers (LSPs) – is looking at ways to overcome these challenges. “Chemical companies are specialists in producing all those great molecules,” he says. “Their LSPs –hauliers, storage facilities, warehouse, train operators, vessel owners and the rest – need to move those molecules in a safe way to their end destination. Without a resilient supply chain on hand, the goods will not arrive in time with the receiver and nobody wants to disrupt the production chain.”

As a result, there is a growing realisation that producers need to step up the level of cooperation with their LSPs if they are to secure that robust supply chain that will be vital if they are to tackle current and future challenges.

TEAM WORK

“This last year as SCPC chair was really overwhelming,” Devos says. “We have a great team, with a nice balance of experts from both the chemical producers and LSPs, who are really very dedicated. In combination with EPCA’s enthusiastic CEO, Caroline Ciuciu, her staff and the team, a lot has been achieved.” Since her arrival at the start of 2017, Ms Ciuciu has provided the leadership that has made those achievements possible.

That year started with a very interesting business session at the 2017 EPCA Annual Meeting in Berlin, concentrating on ‘Logistics 4.0’ concepts and focusing on the new wave of digitisation in the petrochemical supply chain.

“Prior to the Berlin meeting, Vlerick Business School (VBS) organised a survey of EPCA members to ‘feel the temperature’ of the sector on digital awareness,” Devos explains. “Prof Dr Ann Vereecke, Partner and Faculty Dean at VBS, concluded that our sector is indeed lagging behind other industries. There was a great panel debate and there were certainly good examples of digitisation on display, but the main message was that the sector needs to stay on track and speed up the process of digitisation.”

It was apparent from the feedback EPCA received that the audience wanted to see this topic pursued. “For that reason, we sought approval from the EPCA Board to organise a workshop in digitisation in Brussels in June 2018,” Devos continues. “The whole EPCA SCPC and Ms Ciuciu’s team put a lot of effort into preparing for this workshop and both the content, the speakers and the high attendance turned it into a great success.”

HCB was on hand to report on »

Left: Johan Devos

what was indeed a fascinating two days – see page XX.

In the meantime, EPCA has been preparing for this year’s Annual Meeting in Vienna. That will feature a full-blown Logistics and Supply Chain session on the Wednesday morning, on the topic of ‘Innovation and Innovative Concepts for a More Sustainable Supply Chain.’

“Caroline Ciuciu managed to attract Dr Yossi Sheffi as the keynote speaker,” Devos says. “Dr Sheffi is one of the leading experts on system optimisation, risk analysis and supply chain management. In combination with a strong panel and interaction with the audience, this will certainly offer quite a lot of food for thought for EPCA’s SCPC to build on for the future.”

HARVEST FRUITS

“My general impression is that our sector is moving only slowly towards digitisation,” Devos says, in light of the discussions at the Brussels workshop.

“But there are quite a number of examples of best practice – such as Bertschi’s Truck Tracer app –that were shared during the workshop. Several case studies are included in VBS’s report that emerged from the survey and this will be made available to all delegates at the Vienna Annual Meeting.

“My main takeaways from the Brussels workshop,” Devos continues, “is that it is important

that all of us involved in the chemical supply chain should go through digital training so that we can understand the main changes that will emerge from the implementation of new, digital technologies. If we want to reap the fruits of digitisation – not least improved visibility and efficiency in the supply chain – we also need to consider and invest in cyber-security. The recent cyber-attacks on Maersk and Cosco show what can happen.

“Next to that, we certainly need to invest in talent to cope with the challenges of ‘smart logistics’. The older generation does not always grasp all the new technology but on the other hand we also need to preserve their knowledge and experience. Last but not least we need more collaboration (both vertical and horizontal) between all parties – shippers and their LSPs need to be open about the path forward so that they can be prepared to tackle these gigantic changes together.”

WORKING FORWARDS

There can be no doubt – particularly after discussions at the Brussels workshop – that those new technologies, such as the Internet of Things, big data and advanced analytics, Cloud computing and all the rest, are coming to the petrochemical industry; there is no way back.

Digitisation will remain a major topic for the future and, as Devos says, “will become an inherent part of current and future supply chain strategies”.

The work that EPCA and its SCPC have done so far will inform the business sessions at this year’s Annual Meeting and Devos expects discussions in Vienna will raise yet more supply chain topics that will form the basis of SCPC’s work for the coming years. Indeed, the theme of this year’s Logistics and Supply Chain session, ‘Innovation and Innovative Concepts for a More Sustainable Supply Chain’, provides a pointer to where that work will go. The keynote speaker at that session, Dr Yossi Sheffi, is Elisha Gray II Professor of Engineering Systems at MIT and Director of the MIT Center for Transportation and Logistics. His latest book, Balancing Green: When to Embrace Sustainability in a Business (And When Not To), gives an insight into how businesses in the supply chain will have to adapt to meet the future.

“With all the challenges that lie ahead of us, the European petrochemical industry will remain a great sector to work in the future, whether on the production side or in the provision of logistics services,” Devos says. “Therefore, SCPC remains a valuable and great instrument to provide support to all EPCA member companies in offering a platform for sharing challenges and discussing the best way forward to tackle the opportunities.” HCB

LET’S GO DIGITAL

There are many hurdles facing the European chemical logistics sector at the moment. These range from the possibility of tariff-based trade wars erupting to the ongoing driver shortage and long-term shortcomings with regard to the continent’s road and rail infrastructure. Meanwhile, another major challenge, says Peter Marshall, Dow Europe’s director of supply chain operations, India, the Middle East and Africa (IMEA) and member of the EPCA Supply Chain Program Committee (SCPC), “is the tight logistics market capacity”, something that is itself “a result of the strengthening economy, with all sectors moving more products [and] in turn exposing more transport infrastructure limitations”.

“A specific example is intermodal logistics,” he continues. “There is broad agreement that increasing use of rail and short sea is desirable but the current reality is that service reliability is not meeting expectations, resulting in more trucks on the roads and adding to the capacity constraints. The EPCA SCPC fosters collaboration between shippers and logistics service providers [LSPs] enabling these long-term structural issues to be addressed.”

ATTRACTING TALENT

At the same time, another major issue concerns the sector’s ability to attract and retain talent.

“Finding the relevant people who have an interest in working in not just the chemical industry but the logistics part of the chemical industry has become progressively difficult,” says Anthony Elwine, Damco’s global head of chemicals and fellow SCPC member. While Elwine cites various

possible reasons for this, including the increasing levels of regulations governing the sector, he also identifies what he terms “the generational question”, whereby a lot of Millennials (defined by the US Pew Research Centre as those people born between 1981 and 1996) “who just have zero appetite” to work in either the chemical or logistics industries.

In addition to wanting “a work-life balance which may be not too akin to what the [chemical logistics] industry is about”, many technologyminded Millennials, Elwine notes, likely see both chemical producers and their LSPs “as not innovative enterprises compared to other employers”, particularly those in the tech and online retail fields. “It’s just not an attractive industry for those people who are technologyfocused. When you’re trying to attract a data scientist to a shipping and logistics company and they have an offer from a large tech company, you get a feeling for the direction that they want to go in,” he says. As such, LSPs need “to find different ways of enticing them into the business” and “making it compelling for them to want to join” the sector.

Rather than simply being financial in nature, the incentives required to attract talent should arguably take the form of “opportunities to innovate” on a par with those to be found within the tech industry. The good news is that as more players within the chemical and logistics sectors realise the need “to become part of [the] digital revolution”, so the number of such opportunities is on the rise, with Elwine noting that in addition to bolstering their digital capabilities, some companies are even looking to establish their own start-up tech firms and the like. »

MEMBERS OF EPCA’S SUPPLY CHAIN PROGRAMME COMMITTEE DISCUSS THE POTENTIAL FOR DIGITISATION TO OVERCOME SOME OF THE CHALLENGES CURRENTLY FACING THE SECTOR

POTENTIAL BENEFITS

But attracting new talent isn’t the only benefit greater digitisation potentially offers the sector. “Digitisation can clearly help improve customer service through better logistics visibility, for example, [by enabling] more proactive communication of estimated arrival times. It will also help improve overall reliability as the data will highlight issues and opportunities,” Marshall states.

“Linking back to the topic of intermodal transport, typically many different service providers are involved in the supply chain and a seamless, real-time information flow will help improve performance and build more resiliency to strikes, weather and the other disruptions that challenge operations on a daily basis,” he continues, noting that Dow, for instance, “has the objective to implement logistics visibility for all modes of transport and maximise the automation of data exchange with its service providers”.

And when it comes to the environment, there are also other potential benefits to be unlocked. “There’s so many different ways to measure and report [environmental performance], so it’s not particularly uniform how companies do certain things,” Elwine says. “If you were to look at the industry from an HSSE perspective, there’s nobody better worldwide than the chemical/

pharma industry, so if they were to adopt a similar approach to sustainability, they could also be market leaders,” he continues, asserting that in this particular area “technology has quite a role to play moving forwards”.

WORK AHEAD

However, as a recent study commissioned by EPCA and conducted by the Vlerick Business School revealed, there is still much work to be done if the chemical logistics sector is to attain the levels of digitisation found in other branches of the economy. “The chemical industry clearly lags behind FMCG and other sectors in terms of digitisation,” Marshall states. “We are predominantly B2B players and therefore further from end customers in the value chain. There are also specific considerations when transporting dangerous goods that make us naturally more cautious. However, it’s clear that the chemical industry will not be immune from new entrants and disruptors as seen in other sectors. While we are behind other industries, attitudes are shifting and there [has been] much more attention to digital in the last couple of years.”

So how can the sector advance its level of digitisation? “A good starting point is to take a serious look at the EPCA study on digitisation in the chemical industry and develop a holistic digital

strategy. There are a multitude of service providers ready to offer digital solutions; before moving into implementation it’s important to have a clear vision of the desired end state and value proposition to ensure an ultimate return on investment,” Marshall says, reporting that EPCA is also keen to help its members in this area. Indeed, as well as its ongoing work with the Vlerick Business School, the Association also “recently held a workshop focused on digitisation [that brought] together industry thought leaders with practitioners across the chemical industry”.

And in this ever-changing and ever-more tech-savvy market place, it would certainly seem that the onus is on LSPs to adapt if they want to stay competitive. “I think what the industry has realised is that unless they move forward from the B2B to a more B2C environment, they’re going to expose themselves. If they don’t do it, somebody will produce technology that disrupts them,” Elwine says, citing recent examples of major disruptions affecting the retail, hotel and taxi sectors among others. “Shipping has historically been a slow adopter of technology and now you see it being disrupted, so anybody that hasn’t adopted new technology are the ones that are at the greatest risk.” HCB

Left: Anthony Elwine; Above: Peter Marshall

BACK TO THE FUTURE

DIGITISATION IS COMING TO THE PETROCHEMICAL INDUSTRY AND ITS SUPPLY CHAIN. EPCA HELD A WORKSHOP IN JUNE TO HELP ITS MEMBERS PLAN FOR THE UNKNOWN

At the 51st EPCA Annual Meeting in Berlin last year, Prof Dr Ann Vereecke, Partner and Faculty Dean of Vlerick Business School, gave a presentation outlining the early results of a survey undertaken at the request of EPCA to gauge the level of digitisation in the European petrochemical supply chain. That presentation was followed up by publication of report, including a number of short case studies showcasing examples of how some players in the industry are using new technologies in the supply chain.

One finding of the survey was that there was a great appetite within the supply chain for more information and for a chance to examine in greater detail where opportunities lie for reaping benefits in terms of efficiencies and sustainability improvements. In response to that appetite, EPCA organised a workshop in June 2018, which took place at Vlerick’s campus in Brussels. The workshop drew more than 130 attendees from across the supply chain and, in a day and a half, generated some intriguing insights into the process of digitisation and a list of lessons that could be used by all players in the supply chain.

Opening the Brussels workshop, Caroline Ciuciu, EPCA’s CEO, said that digitisation has already begun disrupting the supply chain and it is therefore vital for all involved to be aware of and understand the technologies that are available and what they can do for each business.

Johan Devos, Sales Director Europe at Bertschi AG and chair of EPCA’s Supply Chain Programme Committee, explained the four aims of the workshop:

• To examine the current level of digital maturity in the petrochemical supply chain

• To look at the concrete benefits offered by digitisation

• To assess how technology can improve supply chain performance

• To identify front runners and best practice in the digitisation process.

SURVEY SAYS

Prof Dr Vereecke provided a recap of the key points of the survey. The level of digital awareness in the petrochemical supply chain is high and almost all respondents to the survey said they expect a significant impact on their internal processes and those of their partners in the supply chain. That impact is expected to be felt mainly in the flow of information and finances; few expect any impact on the physical flow of goods. Just over half of the respondents said they expect digital technologies to drive a change in their own business model. There is a way to go, though – 95 per cent of the sector’s customers said that the petrochemical companies are lagging behind other industries when it comes to digitisation. One important factor emerged from this: companies (especially logistics providers) that are closer to the end markets are more likely to have made progress along the digitisation road. It is end customers that are pushing the process and this has implications for implementation strategies.

Prof Dr Vereecke summarised six capabilities that are needed to enable the digitisation process:

• Integration of a digital strategy as part of an overall corporate strategy

• Governance, involving the commitment of top levels of management to an agile structure

• The use of digital technologies in operational and support processes »

• Access to the required talent

• A change of culture, to encourage experimentation and seize opportunities

• Selection of the right technologies, built on an IT core that is reliable, resilient and secure.

The number one priority among these capabilities is the development of a talent pool –there is a “war for talent” going on, Prof Dr Vereecke said, and in this war the petrochemical sector is fighting not just among itself but with all other industrial sectors that are engaged in the process of digitisation.

AVAILABLE TECHNIQUES

It will come as no surprise that companies embarking on the road to digitisation focus first on those technologies that promise a high impact in the short term; those include big data and advanced analytics, Cloud computing, platforms for shared logistics, low-cost sensor technology and the use of digital identifiers.

Prof Dr Vereecke identified some examples, including Damco’s collaboration with Alibaba for the online booking of shipping space, the Port of Rotterdam’s Avanti-Pronto system for port call optimisation, and the electronic European Cleaning Document (e-ECD) developed through collaboration among a number of industry associations.

Prof Dr Vereecke had some observations on the results of the survey and study:

Above: Caroline Ciuciu; Right: Frank Ruland

• Many examples of digitisation involve several partners, bringing their different capabilities and competences to bear within a digital ecosystem. This approach demands a lot of trust and openness on all sides.

• Innovation does not come naturally and many companies will find it demands a cultural shift. Cross-functional teams must be allowed to work together and experiment. Failures will be inevitable and they must be acceptable within a guaranteed service level across the supply chain.

• HR policies will need to attract, develop and retain digital-savvy talent; they will also need to bridge the gap between those personnel and traditional business expertise.

There are risks and challenges involved in the process of digitisation but the survey also showed that digitisation pays off. Respondents – both petrochemical producers and logistics service providers - reported greater efficiency in their internal processes, better staff productivity, enhanced customer service and improved coordination with suppliers.

REAL-WORLD EXAMPLES

Successive speakers reported on their own journey towards digitisation, supporting Prof Dr Vereecke’s comments. There were, for instance, plenty of examples of the use of digital ecosystems, built on the expertise of various players. Technology alone is not enough: it has to serve within a broader vision. Fabio Baerweld,

Manager of Digital Customer Journey at Covestro Deutschland, said that means bringing in its supply chain partners to act as key enablers to manage the digital change and embedding new technologies into new business models and ecosystems. That signals a need for a change to the traditional business mindset.

Markus Deppe, European Chemicals Leader at IBM, reported on how IBM is taking part in a major project involving the application of Blockchain to global container trades, having established a joint venture with Maersk in early 2018. The platform, TradeLens, will digitise the business of booking and managing containerised trade, leading to a global, paperless system for use by all parties in the supply chain. The partners are currently building the platform and a pilot project started in June 2018.

Global trade is today “hugely inefficient” and burdened by paper-based processes, Mr Deppe said. Inconsistent information across organisational boundaries and blind spots throughout the supply chain hinder the efficient flow of goods. The GTD platform aims to remove these inefficiencies by offering an open, neutral means of connecting players in the supply chain by creating an “information backbone” based on Blockchain technology.

Peter Devos, managing director of the European Chemical Transport Association (ECTA), explained how the concept of the e-ECD was developed and implemented. That can be seen as a further example of the change that needs to be made if »

the digitisation journey is to be successful. It involves a transformation from the old silo mindset, accepting of the status quo – something that Mr Devos described as being like “driving with the hand brake on” – to a collaborative mindset in which the whole ecosystem works together. That transition has been facilitated by collaboration between industry associations with the support of their members and the use of NxtPort as a neutral platform provider.

LET’S TALK

It is not just across organisations that digital ecosystems can be built, there is also room –and a pressing need – for organisations to enable digital innovation within their borders by allowing experimentation and accepting that there will be failures along the way. There were various examples of how this is being done in practice, with Melanie Kalmar, Corporate Vice-President, Chief Information Officer and Chief Digital Officer at The Dow Chemical Company, explaining that the process results in the blurring of lines between departments. There is a need to break down the silo mentality, a move that will challenge existing hierarchies and the approach to what are currently seen as cost centres within the organisation.

That change will extend beyond the organisation: Ms Kalmar said the process will transform its relationships with both its employees and its customers, drastically cutting the time to market for new products and ensuring customers get exactly what they need.

Ms Kalmar stressed the need to for businesses to work together, especially in the area of talent recruitment. “Talent availability is the biggest threat to business growth,” she stressed, because whereas petrochemical companies compete with each other to attract, for instance, young chemical engineers, when it comes to tech-savvy graduates they will be competing with other industries.

“We need each other,” was her closing point.

There will be a lot of digital technologies applied across the value chain and the conversation will need to continue. “There are lots of things we could do – but we need to focus on what we should do.”

Ms Kalmar also mentioned the potential for new technologies to improve safety by, for example, using drones to remove the need for personnel to enter enclosed spaces, a point also supported by

Fernando Gómez, Head of Chemistry and Advanced Materials Industry at the World Economic Forum (WEF). He said there are plenty of opportunities: for instance, data analytics and deep learning can help with the advanced modelling of chemical hazards; integrated sensors and connected devices can monitor exposure levels; virtual reality can be applied to training, inspection and maintenance activities. But he said that businesses must ensure that digitisation does not introduce new hazards to the organisation or its people.

Further examples of digitisation in practice were provided by the Port of Rotterdam and NxtPort, both of which have a useful position in the market

as a neutral provider, something that could be used to help foster trust in the sharing of information, and by GoBuyChem and Ovinto.

SERIOUS ABOUT SECURITY

Cyber-security is the elephant in the room; all are aware that making data available to some parties raises the risks that others will try to gain access for nefarious purposes. Tonne Mulder, Chief Information Security Officer at Royal Vopak, reported on the company’s recent vulnerability assessment, designed to identify any weak points and test its security measures. »

The basic approach to cyber-security is, as with safety, to put in place layers of protection and network segregation so as to limit the impact of any attack. But more fundamentally, Vopak needed to know what digital assets it had – both hardware and software. “You can’t protect them if you don’t know what you have,” Mr Mulder said.

Mr Mulder had some important lessons to deliver. Increasingly, terminals have networks of operational technology (OT) taking data from sensors on tank gauges, pumps, valves and other equipment. It is vital that the OT network is never connected directly to the internet – that is a major vulnerability.

Andy Jones, Head of Research at the Information Security Forum, gave the audience an idea of what it is like to be under cyber-attack. He focused on the Industrial Internet of Things (IIoT) – where control systems meet the internet. This interface has its own embedded vulnerabilities and, while safety is its primary function, this is now being challenged.

In an increasingly interconnected world, each organisation needs to consider how vulnerable it would be to an attack on its customers, suppliers or other parties, and vice-versa. Each organisation needs to know what contingency plans its suppliers have in place and know how quickly they would be informed.

Companies should create a plan to ‘reboot’ after an attack. The recent Petya cyber-attack highlighted the need to have people in place who remember how to do things manually – in the future that knowledge may be harder to find if there is no one left in the organisation to knows how to do stuff without computers.

AT THE END OF THE DAY

Delegates had heard a lot during the first day of the workshop but at that point it felt that there were more questions than answers. Prof Dr Vereecke identified seven issues that had come up time and again.

1. Safety, security and sustainability go hand in hand. Is digitisation making the supply chain safer and more sustainable? It is creating new vulnerabilities? How do we train people to operate in that environment?

2. Talent for digitisation in the supply chain is a major issue. How can businesses develop the right people? How can the petrochemical industry work together in this field?

3. Platforms seem to be both a threat and an opportunity. Is this a win/win situation or ‘winner takes all’? How do we create trust across industry? Do we need standards? Who should be in charge?

4. Digital innovation is one thing but how do we get to true digital transformation? What will the new organisation look like?

5. How do businesses create a culture of digital innovation? How can they stimulate experimentation? Should this come from within the organisation or can it be brought in from outside?

6. Everything moves so fast and we cannot say what this conversation will look like in five years’ time. How can businesses plan for a digital unknown?

7. Digitisation will inevitably have an impact on people and their jobs. Is this ‘dehumanising’ the supply chain? Who will lose out? Or is this an advantage for corporate branding? Prof Dr Vereecke challenged the audience to choose which of these issues should be taken forward to the second day and, using digital technology in the form of voting via smart phones, the audience judged the following three priorities:

• Platforms

• Culture

• Transformation to which Prof Dr Vereecke added her own topic: who should drive the change and how can we get everyone involved?

VOICES OF EXPERIENCE

Before they got the chance to start answering those questions, delegates heard from two more

experts in the field. Over dinner, Frank Ruland, Vice-President and Global Head of Industry Partner Management for Energy and Natural Resources Industries at SAP, gave his view on digitisation in the chemical supply chain. He noted that chemical companies have been on the digitisation path since the 1970s, so “There’s no need to be afraid now!”

The ongoing transformation currently underway will, though, make changes that are more fundamental to the business. Some chemical companies are already using digital technologies to create an ‘intelligent enterprise’ that delivers higher revenue and shareholder value. This means

Below: Tonne Mulder and Peter Devos

creating innovative business processes to drive efficiency in operations and engaging with customers to protect their bottom lines.

New business priorities focus on delivering customer outcomes, rather than products; on using the IoT to streamline operations, maximise asset performance and shrink cycle times; competing as part of an ecosystem, through integration up and down the supply chain; and adjusting strategies to respond dynamically to market opportunities and needs. The result is an organisation that is customer-centric, predictive, smart and transparent.

Back in the lecture room the next morning, Leo Brand, Vopak’s Chief Information Officer, acknowledged that, as storage terminals exist largely to even out inefficiencies in the bulk liquids supply chain, the promise that digital technologies will reduce those inefficiencies is something of a threat. Vopak has therefore set itself a target of leveraging digital technologies itself in order to stay ahead of the game.

Within five years, Mr Brand said, Vopak will have one million sensors deployed across its terminal network. The use of advanced analytics of large volumes of data from sensors will allow the

organisation to move along a knowledge curve to a point where it can predict and optimise its operations. It will also bring operating technology (OT), information technology (IT) and enterprise technology (ET) closer together and allow the company to sweat the huge volume of unstructured data it has. It will also involve use of Blockchain-based distributed ledgers for smart supply chains.

Change will require leadership from the top of the organisation, Mr Brand said, which inevitably means a change in outlook. For instance, IT people used to work in the basement; an indicator »

of change will be when they start taking part in client meetings – as they are beginning to do in some companies.

Two years ago, Vopak set up a digital innovation team. It looks at available technologies and demands from customers and aims to develop tools to bring the two together. There is sometimes no obvious return on investment (RoI), Mr Brand said, so leadership needs to be prepared to invest risk capital. For instance, Vopak is currently experimenting with Blockchain but does not expect to see much impact for around five years. Such a situation challenges the established business mindset of seeking a quantifiable RoI, particularly in public companies with shareholders who expect a quarterly dividend.

Mr Brand summed up his presentation with a list of the main learnings Vopak has taken from the digitisation process:

• The journey needs vision and leadership from the top to manage the change

• Middle management see it as a threat (possibly with good reason)

• Frontline people become really important

• There is a need to invest in digital training

• Recruitment is key at all levels

• Experimentation is a key element.

WHAT INDUSTRY THINKS

After all the insights offered by successive speakers, the audience was then invited to split off into small groups in a ‘Digital Café’ format to look specifically at those issues identified at the end of the first day. Each of those present had the opportunity to provide input, with their comments pulled together and presented back to the full audience in the lecture room.

Those discussions were partly successful in answering the questions posed but, in turn, raised yet more questions. For instance, several speakers had mentioned the need for neutral platforms to help drive the digitisation process forward but it was not clear what form those platforms should take or who should run them. There is a value in personal relationships in business but will they be needed in the future? Who is going to pay for it all? Or is there a way to disconnect the concept from money?

There were some helpful suggestions: those active in the chemical supply chain should come together to develop the platforms they need before an external disruptor steps in; that will demand trust on the part of all players in the chain. There is a possible role for industry associations – including EPCA – to come up with definitions, standards and a framework for industry platforms, as ECTA has done in the development of the e-ECD.

Creating a culture of digital innovation may not be easy: the petrochemical industry is risk-averse and its culture does not fit easily with the need to experiment and to be allowed to fail. Another role for EPCA may lie in attracting digital-aware young people to the industry. In the end, it was felt that chemical producers need to listen more closely to their customers and their partners in the supply chain: their voices will help lead the path towards effective digitisation.

But how to get from ‘innovation’ to ‘transformation’?

That will depend on a change in mindset about how the organisation operates and what its goals are.

Companies will need to recognise that people will have to be open to accepting changes to their current jobs if the process is to move to its logical and desired conclusion. A lot of people do not know a lot about digital issues and the provision of self-learning tools could help. Operational teams will need digital support to enable the transformation. And there was a word of warning: if you kill ideas, people will stop having them.

Again, some suggested that EPCA has a role to play here, too, not least since its membership includes not just petrochemical companies and their logistics partners but also a number of IT companies.

Gina Fyffe, Executive Director/CEO at Integra Petrochemicals, stated that driving the change is a matter for each individual: everyone needs to take responsibility, everyone needs to lead. This is not a top-down nor a bottom-up issue. But people need to accept the need for change and realise that failure is allowed.

Companies can help the process by establishing cross-functional, flat hierarchies – a “happy band of brothers and sisters” - and create an environment within the company that makes it comfortable for people to talk outside the organisation.

There is a lot to do and, as had been noted previously, trust is a big issue. EPCA can play a role for the chemical community in demystifying the digital transformation; the language of digitisation is also a barrier for some – perhaps training classes might help.

Ms Fyffe supported the idea of EPCA conducting all these potential activities, provided that a dedicated budget is allocated.

EPCA could spearhead the training process and become an innovation incubator. A space is needed where people can get together to discuss common issues. It was also seen as important that the digitisation conversation continued after the workshop. »

Below: Prof Dr Ann Vereecke

THINGS TO TAKE AWAY

“Plenty of things have happened over the past 20 hours,” said Prof Dr Vereecke as she summarised the workshop. Her list of valuable takeaways included the following insights:

1. The race is on! A lot has changed since work started on the Vlerick Business School/EPCA survey 15 months earlier and there is a clear sense of urgency within the petrochemical industry.

2. The process of digitisation involves a change of mindset. We are all in charge: we should move as an industry but as individuals too.

3. It will be a game of winners and losers. Everyone should keep their eyes open for disruptive newcomers in the supply chain –it is not clear yet who those will be.

4. The process of digitisation starts with a strategy. Companies need to set goals and determine what they can do in the future that they do not do now – and vice versa. This needs leadership and commitment from the top. Echoing Ms Kalmar, she said there is a lot

that could be done; companies need to focus on what should be done. Customers will tell you what they need and companies need to set aside a strategic budget to deliver on those demands.

5. Industry seems unclear on standards –but what do we mean? Does this just involve definitions, or technical standards? Who will take the lead? Do we even need to standardise? Should we not just get on with it and let the standards emerge?

6. IT and OT are coming together. This will create new issues, especially in terms of cyber-security.

7. Industry seems to regard cyber-security as a separate problem and something that can be left to the cyber-security officer to deal with. Prof Dr Vereecke said she was not sure that that is the right approach; cyber-security concerns need to be addressed throughout the process.

8. The future will be about talent. It is vital that industry starts to attract, empower and train the

right people with the right skills to undertake the digitisation journey.

“Just do it!” were Prof Dr Vereecke’s final words. “You will fail here or there, but win overall. Think big but start small,” she recommended. Bringing the workshop to a close, Johan Devos said he had found the two days “very inspiring”. There is no way back now, he said: “We must embrace digitisation within our industry.”

“This was an important meeting,” Mr Devos concluded. It placed supply chain professionals in a position where they were challenged by IT people. “EPCA will continue this journey,” he promised, with more discussions planned for the business sessions at the 52nd EPCA Annual Meeting in Vienna in October 2018.

Delegates to the 52nd Annual Meeting will have the opportunity to pick up a copy of the full report of EPCA’s Logistics and Supply Chain Workshop, ‘Digitisation in the Petrochemical Supply Chain’, as well as the Vlerick Business School/EPCA research study on the same topic, at the EPCA Logistics Village. HCB

CONTINUE THE CONVERSATION

EPCA’S DIGITISATION WORKSHOP LEFT DELEGATES WITH PLENTY TO PONDER BUT HOW DID THE SPEAKERS FEEL IT WENT?

HCB SPOKE TO THREE OF THEM

EPCA’s June workshop on digitisation in the petrochemical supply chain, held at the Brussels campus of Vlerick Business School, generated a lot of discussion and sent delegates home with plenty of ideas. That was also the case for the speakers, despite them having come to the event with the advantage of being closer to the process of digitisation.

Prof Dr Ann Vereecke, faculty dean at Vlerick Business School, who directed much of the action at the EPCA workshop, described the event as being “beyond expectations” when HCB spoke to her immediately after. The audience proved themselves willing to think about what the process of digitisation could mean for them and their organisations and how it could drive change within the petrochemical supply chain.

Dr Vereecke said the concept of the workshop was challenging but that it generated a lot of ideas. Digitisation and smart supply chains are key themes across Vlerick’s activities and it works with a range of industrial sectors on the topic. She said it is clear that the petrochemicals sector is not a leader in the process. “Leaders tend to be asset-light and close to the consumer,” she explained.

CATCHING UP

As the petrochemical industry is behind the curve on digitisation, it is focusing quite understandably on improving efficiency, reducing inventory and other actions that translate directly to the bottom line. So far there has been less focus on improving the customer experience and introducing new processes –

although some of the speakers at the workshop that represented ‘front runners’ in digitising the petrochemical supply chain had indeed highlighted those features.

There is, too, an “even lower focus on business transformation”, Prof Dr Vereecke said. Is that because of the uncertainty that comes with it? Or because organisations have not yet had the insights into what digitisation can deliver?

Perhaps that is an investigation that could be part of a future workshop.

Prof Dr Vereecke advised all participants in the petrochemical supply chain to “listen to the market” – find out what customers want. How do those customers benefit from digitisation in other sectors? How can the petrochemical sector go about providing the same level of service and transparency?

MOVING QUICKLY

Prof Dr Vereecke described Vlerick’s experience with one client, which was looking to be guided through the process of digitisation. This was something of a hand-holding exercise but, along the way, the client came up with what she described as “some wild ideas”. Prof Dr Vereecke said that organisations can find the whole process daunting and she advised taking things step by step, although an end goal should always be kept in mind. It is also important to “get away from ‘buts’,” and trust in the process of experimentation.

“I’m amazed at the speed of change,” Prof Dr Vereecke said. “The mood of the petrochemical industry has changed a lot over the past 15 »

Right: Leo Brand, CIO at Royal Vopak

months” since Vlerick Business School undertook the first part of its study and survey for EPCA. “We were not talking about this at all three years ago, so who knows where we will be in five years’ time,” she said, “but it will surely be very different.” That is a major dilemma for business executives, though: how can you plan for the future if you do not know what the future looks like? Maybe they have to imagine a future then plan on how to grasp the potential offered by digitisation to make it happen.

Andy Jones, Head of Research at the Information Security Forum, who spoke on the subject of cyber-security during the workshop, was not surprised that the audience, mainly from the commercial side of the business, had not attended his track session in great numbers. “It is common to a number of industries that traditionally have not seen themselves as being at the forefront of digital transformation.” They have not yet realised that cyber-security is part and parcel of the digitisation process.

“However,” Jones continued, “the key point is that digital transformation is happening by osmosis. New technologies and techniques are being adopted, particularly in the industrial controls area, that expose plants to new threats that simply were not around ten years ago. The threat is real, and the topic needs to gain greater visibility.”

Some in the audience at the workshop had suggested there might be a role for EPCA in terms of raising awareness of cyber-security. “Certainly, there is a role for industry groups to champion the cause,” Jones agreed. “This is often very helpful and has served other industries well. The comparison I would make is to the maritime industry where industry bodies such as BIMCO have been highlighting cyber-security issues for a number of years. This has resulted in the regulatory bodies, such as the International Maritime Organisation, including cyber-security threats as threats to safety and to introduce specific regulatory requirements. This has taken some time, and an accelerated approach for the petrochemical industry would be welcomed.”

REFRESHING DISCUSSION

Jones had some broader observations about the workshop. “The events that I usually speak at tend to be focused around the cyber-security topic, so it was certainly refreshing to be in a workshop that was aligned to an industry topic,” he said. “There was certainly a good deal of passion in the audience for the industry.”

“I didn’t find the status of digitisation in the petrochemical industry to be surprising,” Jones added. “I find that digitisation is over-hyped and the reality often doesn’t match the promise. I was

pleased to see alignment in some of the messages around cyber security, particularly from the World Economic Forum (WEF).”

Things are, though, moving rapidly, as Prof Dr Vereecke mentioned; Jones said he felt that practical issues will move higher up the agenda. “I think that in two years’ time the agenda will be focused on regulatory requirements, focused on critical national infrastructure requirements such as the EU Directive on the Security of Networks and Information Systems (the NIS Directive), but also new or emerging regulations as governments worldwide respond to the increasing cyber threats with regulatory obligations.

“In terms of the digitisation journey, I think it will have progressed, but the dominance of the B2B model in the industry means that digital initiatives will be slower to emerge as they require industry cooperation. Again, worthy of note is the Maersk-IBM blockchain initiative based on an open source model. This initiative has already been going for a couple of years and will take a further few years to become established (or not!), provided that the industry is receptive. A body like EPCA may well have a role to play in helping these sorts of initiative to succeed,” Jones said.

MAN WITH A MISSION

HCB also spoke to Leo Brand, who had given a very candid picture of the process that Royal Vopak had gone through in its own digital journey. Brand, now three years into his role as Chief Information Officer at Vopak, had a unique perspective, having worked previously in the hotel and airline industries.

Indeed, Brand said, there are a lot of similarities in terms of architecture between hotels and storage terminals: both have space that needs filling, and a list of clients who want to rent that space. The main difference is that hotels are ‘many-to-many’ while terminals are ‘few-to-few’.

Nevertheless, with hotels having moved to a large extent to platforms to fill their rooms, it seems natural that storage terminals could do the same. As he had said in his presentation at the workshop, terminals have access to a lot of information, including vessel movements, trade patterns and trends in industrialisation. This is valuable and, properly used, can help terminals »

Left: Ann Vereecke; Next Page: Andy Jones

minimise their business risk. Making investment in IT can help attract the right partners and customers – and having local partners on board in any new terminal project also reduces risk.

However, Brand said, terminals have so far not been very advanced in the application of IT to their business processes. For one thing, in such an asset-heavy business it is hard to justify the necessary investment. However, sensor-sourced data is now getting cheaper and this will allow all companies in any value chain – including terminals – to gather and use that data.

It is not just in terms of business efficiency that this will make a difference: using data can help with worker safety, with preventative maintenance and with operational planning, and also improve customers’ supply chains.

MANAGE THE CHANGE

Expanding on his presentation, Brand said that management of change is the biggest challenge. What the terminal operator is doing by implementing new technologies is to challenge its

people to do things differently. Vopak has found that the types of data analytics it can apply are new to industry and terminal engineers have had to be retrained. “You have to convince them to change the way they work,” Brand said. On the upside, that means getting better feedback on engineering requirements: in practice new engineering solutions can be developed within two months, rather than two years as might previously have been the case.

In fact, Brand went on, there is a push and a pull in terms of digital technology. This is coming both from the engineers who can see what it can do, and from executives who have their own perspective.

Ultimately, Brand said, the autonomous terminal is the objective, if only for the protection of personnel. There will still be a need for people to operate facilities but, when applied correctly, digital technology will lift the burden of repetitive tasks, something to which “people respond well,” he said. For instance, robots can be used for cleaning tanks, avoiding the need for people to enter dirty tanks with all the risks associated with enclosed space entry. Early problems in the use of

drones for tank inspection have now largely been overcome, Brand noted. But in terms of creating a ‘digital terminal’, the use of 3D scanning is crucial – this is “fantastic technology,” he said.

Within two years, Vopak aims to have a platform in place that will be able to deliver the types of real-time information that its customers will insist on. That information will help deliver efficiencies and take unnecessary costs out of the chain –although those savings must be shared among the various players through the supply chain.

Looking a little further ahead, Brand said that businesses will have to work differently; application of digital technologies will move the focus away from short-term returns to the long term – those that remain focused on the short term will not survive, he predicted.

EPCA has pledged to continue the conversation on digitisation and it will be interesting to see how these and other speakers – as well as the audience – change their views as the petrochemical industry and it logistics service partners continue along the path towards greater digitisation. HCB

CHANGING TACK

ROYAL VOPAK, THE biggest independent bulk liquids terminal operator in terms of network reach, has reported further declines in its financial performance during the second quarter. For the first half of 2018, revenues were down 6 per cent on last year at €626.1m, while operating profit fell 8 per cent –excluding exceptional items – to €236.7m.

Across its network, tank occupancy fell to 85 per cent in the second quarter, down from 90 per cent a year earlier, with much of this decline attributed to a “less favourable oil market structure” and a consequently lower demand for capacity at Vopak’s oil hub terminals.

However, CEO Eelco Hoekstra remains upbeat: “Given the market conditions to

date, the results delivered are satisfactory. The execution of our strategy towards 2019 is very well on track and we increased our cost savings target for 2019.

“In the second half of the year, we will maintain our focus on both short-term performance and long-term value creation for all stakeholders and seize opportunities that are being created in today’s market,” Hoekstra continues. “This enables us to continue storing vital products with care.”

MARKET CONDITIONS

Notwithstanding Hoekstra’s bullish tone, Vopak’s oil terminals are operating in an uncertain market; while global crude oil output rose in the first half of the year, a number of supply disruptions, the reimposition of sanctions on Iran and declining production in Venezuela and Libya caused volatility in prices. Firm demand meant that Vopak’s distribution terminals in short

markets “continue to benefit from solid market fundamentals,” but in hub locations Vopak is experiencing greater competition and weaker demand for storage and handling services, particularly for fuel oil and other products currently in backwardation.

Global demand for key chemicals grew by 4.2 per cent in the first half of 2018, Vopak reports, with robust demand, cheap feedstock and strengthening economies; producers are enjoying good margins and are investing in more capacity. Vopak highlights the US, where the chemical industry continues to benefit from a strong economy, which is driving demand, while access to cheap ethane feedstock gives local producers a cost advantage over the rest of the world.

“Concerns about ethylene overcapacity have faded as some projects have been delayed and strong global demand absorbs the new supply,” Vopak notes.

The chemical market in Europe has also turned a corner, following improvements in the major economies. “Demand for chemicals increased steadily [in the first half] and, after years of rationalisations, several chemical companies recently announced investment plans in Europe.”

Asia continues to offer demand drivers for chemicals, not just in China and India, and now provides an outlet for growing exports from the Middle East. »

STRATEGY • WEAKER RESULTS ARE PROMPTING VOPAK TO TAKE ANOTHER LOOK AT ITS LONGER-TERM STRATEGY, WITH SOME ADDITIONS AND POTENTIAL DISPOSALS BEING LINED UP

Global LPG trade increased by 8 per cent year-on-year in the first half of 2018, with increasing US exports and continued growth in residential and petrochemical end markets in the Asia-Pacific region.

LOOK BUSY

Vopak is certainly keeping busy. During the second quarter, it commissioned the final part of the Chemtank joint-venture industrial terminal in Saudi Arabia and continued with construction of the new industrial terminal in Pengerang, Malaysia. This project is, Vopak says, “progressing well” and commissioning of the first phase is expected to take place before the end of the year.

Vopak’s 2014 strategic review identified potential in the LNG sector and the company has made strides in this area during the first half. “Our business development efforts in gas terminals have seen excellent progress,” Hoekstra reports. “We announced the entrance in the growing LNG market in Pakistan,” which involves Vopak taking a

29 per cent share in Engro Elengy Terminal Pakistan, “and the signing of two new joint ventures to develop LNG terminals in Germany and China.”

Vopak is also readying itself for the arrival of the sulphur content restrictions in marine bunker fuels in 2020. It has said its terminals in the main bunkering hubs in Fujairah, Rotterdam and Singapore will be ready to support the new market requirements and it has already announced plans for work at the Europoort terminal in Rotterdam, which are supported by customer commitments.

Vopak is also making strides in the digital world, with the new digital terminal management system having gone live this year in Long Beach and Los Angeles ahead of a global roll-out.

MORE CAPACITY COMING

In making its half-year financial results public, Vopak also announced a number of new projects. It will expand its Merak chemical terminal in Indonesia, adding

50,000 m3 to take capacity up to 131,000 m3 by early 2020. Merak is, Vopak notes, the main chemical import terminal in the country and is home to Indonesia’s greatest concentration of petrochemical facilities.

Vopak has also announced a new jetty for the Linkeroever terminal in Antwerp, to enable planned future growth, and a “major service improvement project” at the Penjuru terminal in Singapore, to handle the demands of the local chemical market.

These project add to earlier announcements this year, including a 100,000-m3 expansion for clean petroleum products and biofuels at the joint venture import/distribution terminal in Jakarta, Indonesia; a 67,000-m3 expansion of the Sebarok terminal in Singapore, primarily to handle marine gasoil after the introduction of the global sulphur cap at the start of 2020; and 15 new stainless steel tanks for the Botlek terminal in Rotterdam, which will add 63,000 m3 of storage capacity for styrene and other chemicals.

Conversely, Vopak has also announced that it will “conduct a strategic review and test the market value” of its terminals in Algeciras, Amsterdam, Hamburg and Tallinn, signalling the prospect of another round of divestments.

Furthermore, Vopak says its terminal in Venezuela “operates under difficult circumstances”. Political, social and economic problems – inflation is expected to exceed 1,000,000 per cent this year – mean that Vopak faces an uncertain accounting position.

Overall, the short-term outlook for Vopak’s financial performance will be influenced by currency exchange movements, particularly the US and Singapore dollars, and by changes in the oil market. It does, though, have some 3.2m m3 of expansion and new construction projects due to be commissioned in 2019 and, with their high commercial coverage, these new assets are expected to contribute to a “significant” improvement in EBITDA next year.

Vopak is also focusing on efficiencies to support its operating margin; at least €25m in savings has already been delivered and another €15m is anticipated. The 2019 cost base is, therefore, expected to be below the €676m recorded for 2017. HCB www.vopak.com

TRIM THE SALES

STRATEGY • MAJOR CHANGES AT ODFJELL

TERMINALS ARE DUE TO UNWIND BY THE END OF 2018, PUTTING IT IN A STRONGER POSITION TO CONTRIBUTE TO ITS PARENT’S FIGURES

Odfjell CEO Kristian Mørch says the two transactions will further strengthen Odfjell SE as a company. While the funds received from Koole for the Rotterdam terminal will help strengthen its balance sheet, “the planned increase in our shareholding in the jointventure terminal in Antwerp [Noord Natie] will ensure a foothold in Europe, with Antwerp being the most important port for chemicals in the EU”.

WHERE THE MONEY GOES

In the second quarter, Odfjell generated $25.9m of revenues from its tank terminal activities, up from $25.2m in the prior period but down on the $27.5m generated a year earlier. EBITDA came in at $8.9m, down from $10.3m in the second quarter of 2017 but ahead of the $6.3m achieved in the prior period.

The quarter-on-quarter increase was driven by better results in Rotterdam, following the one-month shutdown of the distillation unit in the first quarter, alongside strong demand for tankage in Houston. Average utilisation across the network improved by one percentage point to 86 per cent; excluding Rotterdam it rose from 90 per cent to 94 per cent.

THE FUTURE SHAPE of Odfjell Terminals is beginning to become clearer, with the sale of its Rotterdam facility going through and discussions ongoing over the divestment by Lindsay Golberg of its 49 per cent shareholding in Odfjell’s mainline terminal operations.

As was previously announced, Koole Terminals BV is to buy Odfjell Terminals (Rotterdam) in a deal that is expected to close before the end of the year. Odfjell will book around $100m from the sale, which has already received clearance from competition authorities.

Odfjell says it will use part of that cash to buy out Lindsay Goldberg’s share in Noord Natie Terminals, in which Odfjell Terminals owns 25 per cent; a price of $27m has been agreed.

Following the transactions, Odfjell Terminals BV will become a wholly owned holding company controlled by Odfjell SE. This will control 51 per cent of the terminals in the US and Asia as well as the 25 per cent share in Noord Natie. New investors are being lined up to take Lindsay Goldberg’s 49 per cent holding in the US and Asian terminals, with it likely that regional interests will be involved.

Odfjell sees these changes as being part of its strategy to focus on those terminals where it has operational control, with investments in four terminals having been sold since 2016, generating $344m in cash and $80m in book gains. “We remain fully committed to our tank terminal business and our focus going forward will be on growth and optimising of our existing portfolio,” says the company.

The bottom line looks weak, however, as Odfjell has booked an impairment charge of $58m and a tax loss of $43m relating to the sale of the Rotterdam terminal; once the deal goes through, that will be covered by the anticipated $100m net gain.

Odfjell says it is not expecting any significant changes in the bulk liquids terminal sector in the second half of the year and forecasts that its results will be stable through to the end of 2018.

Construction of the second terminal in Santos, Brazil by Odfjell’s nonconsolidated affiliate Granel Quimica is on track for completion by the middle of 2019. Capacity will be 51,910 m3, complementing the 97,720 m3 available at the first Santos site. HCB www.odfjell.com

READY FOR ANYTHING

EXPANSION • CONTINUED INCREASES IN THE VOLUME OF CHEMICALS MOVING THROUGH THE PORT OF ANTWERP HAVE UNDERPINNED NOORD NATIE’S LATEST ROUND OF EXPANSION INVESTMENTS

NESTLED IN THE heart of the old port of Antwerp, Noord Natie Terminals has been providing specialised services to the chemical industry since 1950. Now, with Antwerp being the focus of much of the trade in chemicals in northern Europe, Noord Natie is being encouraged to expand its operations, despite being hemmed in on three sides by the waters of the Hansadok.

However, having taken a long-term lease on an adjacent 11-ha plot, Noord Natie has been able to expand capacity and has this year just

opened two new tank pits, adding 32,700 m3 of new capacity. Together, the new pits have 13 tanks, all in stainless steel and with dedicated stainless steel lines, in capacities from 1,300 m3 to 5,000 m3

The focus in now moving on to an adjacent tank pit, which is due to be finalised in early 2020; this will have seven tanks and a total of 12,700 m³ of capacity, again with dedicated stainless steel lines. Plans are also in hand for a yet another project, which will involve 12 tanks and 45,000 m³ of new capacity, which is expected to be readied by mid-2022. There is another 45,000 m² of land available for further tank storage or for related activities such as blending, warehousing, ADR parking or whatever the client industries require. The lease has also opened up another 185 metres of potential vessel berths.

ADDING VALUE

The terminal’s total capacity has been steadily increasing over the past decade, growing by 140,000 m3 to a current capacity of some 380,000-m3 and the growth has led to increased throughput and improvements to the terminal’s infrastructure.

Noord Natie moved to a new office building in 2017 to bring all its staff

together in one place. The move also allowed for an increase in the number of loading stations, which has helped to facilitate higher throughput of road tankers.

In the next phase of development, Noord Natie aims to improve the administrative process and begin preparing the terminal for order-based loading. The terminal has ample space for simultaneous handling of up to nine vessels. By the end of 2019, the maximum draft of the port’s berths will be increased from 11.3 m to 14.0 m.

Noord Natie is also responding to increased pressure on the local road infrastructure and is making plans to handle more product by rail. The terminal is constructing a block train handling facility which is due to be ready in the first quarter of 2019. Additionally, it has increased the frequency of single car moves from one every three working days, to one every working day.

Noord Natie Terminals, in which Odfjell Terminals has a 25 per cent stake, focuses mainly on bulk storage but additional activities such as blending, drumming, packaging, storage of packed liquids and storage of tank containers are also an important part of the total package of services it offers. HCB www.noordnatie.be

VIEW FROM THE TOP

NURIA BLASCO • TERMINALES PORTUARIAS SL (TEPSA)

WHAT ATTRACTED YOU TO THE TANK STORAGE INDUSTRY IN THE FIRST PLACE?

Nuria Blasco: I don’t even remember when I started being attracted by industry, factories and engineering. I was raised in Tarragona, the largest chemical hub in the Mediterranean, with an important industrial port. I do remember being on the beach, looking with my father at the ships waiting to enter the port. As a child, I loved the night view of the refinery with its thousands of lights and wondered what the people working there did.

The tank storage industry has a unique combination of gifts. It is located mostly in port areas and that means open spaces, seafront areas and hectic activity. It is a highly specialised industry so it means you are touch with new technologies, new requirements and high standards. It is a critical industry for our customers so they are always putting pressure on us to deliver our best. It is an industry that handles dangerous goods and that means we have to be very conscious of the risks.

HOW DID YOU GET TO WHERE YOU ARE NOW?

NB: It was natural for me to study industrial engineering and, later in my career, take additional degrees in project management and business subjects. I started at TEPSA 20 years ago; the first years were focused on technical jobs and then, step by step, I realised I enjoyed managerial tasks more and more.

The transition to managerial positions was also natural, each step bringing increasing responsibilities. Despite my broad knowledge of TEPSA, this latest challenge – as general manager – is extraordinary. Each new position is a new story and I am grateful for a long history of challenges. This variety of

roles and positions was really a blessing for me personally – I’m curious – and for the development of my career.

WHAT ARE YOUR CURRENT RESPONSIBILITIES AND WHAT CHALLENGES DO THEY PRESENT?

NB: As general manager of TEPSA I am responsible for all aspects of the company. As to challenges, the world is moving faster than ever and our customers expect quick, flexible and easy solutions, while longterm contracts are becoming less and less frequent. Our industry, though, requires high investment and a long-term approach.

In my opinion, a major challenge is ensuring a profitable business in an uncertain environment where manufacturers look to keep stocks as low as possible, in a framework of increasing costs related to regulation, SHEQ considerations and labour costs.

On the other hand, the industry has become global, with worldwide players active in a competitive environment. Keeping our brand image and our niche market in good health is a pretty good challenge also. Finally, our terminals are well prepared to handle high volumes with excellent sea/ land infrastructure; we feel hub activities are still underperforming and there is room for improvement and additional business.

WHAT IS THE COMPANY’S CURRENT FOCUS AND HOW DOES IT AFFECT YOU?

NB: In our business, safety and a holistic respect for the environment – and here I mean not just the traditional aspects of quality, health, security and environmental protection but also a true respect for current and future customers, co-workers, suppliers and the communities in which we are settled –is paramount.

NURIA BLASCO General Manager

Terminales Portuarias SL (TEPSA) Barcelona, Spain www.tepsa.es

Handling dangerous goods is mainly a matter of taking care of products while controlling their risks: safety comes first, without a doubt. But sustainability is also becoming essential for a long-term business such as tank storage: we must minimise our environmental impact while reducing our energy consumption. We also have to be lean and sustainable in our organisation and our financial structure.

As a long-term business we aim to create long-term partnerships with our stakeholders; as a storage terminal we are just one step in the supply chain of our customers and therefore we must follow the changes they are making. We are happy to help our customers improve their logistics but we need to understand their needs over the long term so we can adjust the services we provide. That is what we promise: flexible tanking, certified.

WHAT DOES TEPSA OFFER TO INDUSTRY THAT SETS IT APART?

NB: TEPSA is an independent terminal company and a pioneer in Spain in the tank storage business for chemicals, oil products and foodgrade products. We love our business and we love helping our customers optimise their logistics in a safe and seamless manner. We are committed to becoming the best partner for our customers every day, everywhere and for everything they need.

Our good reputation has been earned through our daily work, safety standards and holistic respect for the environment. Undoubtedly, our

commitment to our employees, customers and the environment has been the only way to consolidate a solid network of stakeholders.

FROM A PERSONAL PERSPECTIVE, WHAT ARE YOUR TARGETS WITHIN THE COMPANY?

NB: We have a history of nearly 55 years of success, evolving from a small company to the modern and solid TEPSA we are now. My target is to lead this great company into the future, in a changing and competitive world, consolidating our strengths based on the great team of TEPSA people. Leading for results through people: they are the ones who

handle our customers’ energy and chemical products with care, efficiency and passion.

OUTSIDE OF WORK, HOW DO YOU RELAX?

NB: I know it is simple but I love walking on the beach. This gives me time to relax as well as time to reorganise my brain. I enjoy practising yoga and pilates with the girls and playing tennis with my friends at the weekend – and having a beer afterwards!

Last but not least – and I would not say this is a relaxing activity – I like sharing my time with my teenage children and being amazed at how fast and how well they are growing up.

THE FOURTH ESTATE

PORTS • LOGISTICS SERVICE PROVIDERS ARE WAKING UP TO THE ADVANTAGES OF MOERDIJK, WHICH DESCRIBES ITSELF AS THE NETHERLANDS’ FOURTH LARGEST PORT

THINK OF PORTS in the ARA region and it is natural to think of Antwerp, Rotterdam and Amsterdam, the shining jewels in northern Europe. But glinting among them is Moerdijk in the south of the Netherlands, nestled halfway between Rotterdam and Antwerp. And while its neighbours may enjoy the headlines, their very popularity has generated congestion both at the waterfront and on the road and rail links into the hinterland.

Moerdijk is, therefore, increasingly being seen as an alternative, with its proximity to the petrochemical industry and relatively easy access to the European hinterland obvious advantages when it comes to moving products

efficiently. That includes pipelines, which link Moerdijk to the chemical clusters in Belgium and the Netherlands, as well as in Germany.

Moerdijk has also pursued a policy, similar to that in Antwerp, in which chemical and chemical-related companies make use of each others’ products and residual streams, enhancing the sustainability of their operations.

Indeed, the Port Authority of Moerdijk says that development and growth are only possible if they occur in balance with the environment; operators in the port are expected to find ways to reduce their environmental footprint, through collaboration with the Port Authority and cross-linking sustainability goals and

initiatives between companies active in the port. Initiatives in this area include wastewater management, use of waste heat and the appointment of ‘front runners’ in sustainability to spread the message.

Ferdinand van den Oever, CEO of the Port Authority of Moerdijk, links the struggle for sustainability squarely with greater efficiency through integration. “One of our challenges is to reduce the waste that is still in our logistics chains,” he says. “By waste, I mean for example empty cargo space or inefficient use of modalities – such as using trucks rather than barges or trains where available –but also damage to goods during transport.”

That approach underpins the way that the port works with the companies located within its borders, with the port, shippers, logistics providers and other service companies all working together to deliver the most seamless supply chain possible.

YOUTH ON ITS SIDE

Another thing that Moerdijk has going for it is that, as a port, it is extremely young. It dates only back to the 1960s, having been created from excavations for the new Biesbosch storage reservoirs. Local municipalities saw an opportunity to create extra work opportunities for their young people and, this being the Netherlands, building a new port seemed the obvious idea.

What that means is that the port was developed within the existing road, rail and inland waterway infrastructure, unlike its larger neighbours, which have out-grown their original land and are having to fit in with transport links as best they can. Moerdijk is four hours’ sailing from the open sea and located directly on a crossing of several rivers, which links straight into the Rhine and Meuse waterways. It is also at the crossroads of the main Rotterdam-Antwerp highway and eastwest routes, giving it direct access to the Ruhr area of Germany.

Being so far inland also means there is little tidal variation so there are few arrival and departure restrictions. Moerdijk does a lot of business handling containers and other cargoes that have been transhipped in one of the larger ports, bringing them in for storage or for onward distribution on the waterway system.

The Port of Moerdijk Authority stands ready to help operators develop new or expand existing facilities; there is still space available and any necessary infrastructure projects will receive support from the Authority.

CHEMICAL ATTRACTION

The advantages offered by Moerdijk’s location and facilities have been recognised for some time; the town even has a street dedicated to the industry – Chemieweg. This is the location of Shell’s major chemical complex where, fitting in with the port’s aims for sustainability, it has recently started work on a massive solar power facility, which will be capable of generating 27 MW once it opens early next year. Solvay Solutions Nederland, KLK Kolb, Lyondell Basell Benelux, Hexion and Arkema subsidiary Coatex are among other chemical manufacturers to have set up shop in the port’s dedicated area.

Manon Baartmans, commercial manager of the Port Authorities of Moerdijk characterises Moerdijk as a ‘one-stop-shop’, an approach taken up by many of the logistics service providers in the port. For example, Stolthaven Moerdijk offers 45 bulk storage tanks for chemicals in both mild and stainless steel, with a total tank capacity of some 48,350 m³, and is also home to Stolt Container Terminal Moerdijk, the main ARA tank depot for sister firm Stolt Tank Containers.

It has a 7,500-m2 warehouse for hazardous goods, two filling lines for drums and intermediate bulk containers (IBCs), 23 tank container heating positions, storage for up to 1,100 loaded or empty tank containers, a cleaning station for road tankers, tank containers and IBCs and a full-service repair workshop. Stolthaven says the facility is “strategically located in a lockfree port between Antwerp and Rotterdam”. Furthermore, its efficient rail links and congestion-free highway access “provides a versatile one-stop shopping logistical

solution”. All operations are certified according to ISO 9001; the bulk liquids terminal has a current CDI-T assessment; and the tank container terminal is assessed according to SQAS.

TAKE A TRIP

Stolthaven Moerdijk is just one of several facilities located along Middenweg that sport names familiar to any HCB reader and which provide a range of services to chemical manufacturers, not the least of which are logistics services.

Turning into Middenweg from the southern ring road, the visitor immediately finds NewPort Tank Containers’ European headquarters, next door to Burg Service, offering tank cleaning, maintenance and repair services. As part of CIMC Enric, Burg’s Moerdijk station also acts as the arrival point in Europe for new tank containers from China, which are initially delivered into Rotterdam and moved the short distance to Moerdijk so they can be readied for customers.

A little further along Middenweg is Frans de Wit International’s terminal, which has space for the storage of up to 2,500 loaded or empty tank containers as well as bonded storage.

Frans de Wit International offers a wide range of services at the site, including the transfer of chemicals and gases between tanks, blending of chemicals, tank container repair and maintenance, and the onward movement of tanks by its own road fleet.

Nearby there are also services for those shipping in freight containers: Moerdijk Container Terminals, GCA Netherlands, Kuehne + Nagel Logistics, Van der Helm and Koolwijk Logistics among them.

The most important of these is undoubtedly CCT, hub of Moerdijk’s shortsea shipping activities and a significant contributor to the success of the port operations.

It is part of the West-Brabant corridor, a partnership launched in February 2018 to allow the bundling of containerised cargo between terminals in Moerdijk, Tilburg, Oosterhout and Rotterdam for eventual loading onto deepsea ships at one terminal in Rotterdam, which is already leading to greater efficiency in cargo handling and customs clearance.

A similar project is currently being discussed with the Port of Antwerp, with Moerdijk already having been granted a special arrangement.

SPACE TO BREATHE

Another indicator of support for what Moerdijk is doing for the chemical industry has come from logistics service provider Gondrand, which opened a warehouse in the port in the year 2001. Having experienced substantial growth in demand, the company had a decision to make: move, expand or renew?

Its decision was to create a new warehouse location, 5 km from its existing position, due to open this year. »

Gondrand specialises in the transport and warehousing of packaged chemicals and, Business Unit Logistics Manager Tom Heesakkers, explains, “The rules in the Netherlands are very strict in this respect, and are constantly being tightened even further. We could have opted to upgrade our existing 16-year-old site in Moerdijk, but in the end it proved more effective and futureproof to build a completely new site.”

There were a number of other considerations. “To begin with, the new site will comply with the latest PGS15 guidelines for the storage of packaged hazardous and CMR substances in the area of fire safety, as well as occupational and environmental safety,” Heesakkers says. “The 17,500-m2 site, with 30,000 pallet locations, will immediately give us sufficient capacity to safely and efficiently facilitate our existing and future customers’ growth.”

Did Gondrand consider moving away from Moerdijk? Not really, says Heesakkers: “We looked at other spots in West-Brabant, but Moerdijk has it all: good access via road, barge and rail in combination with a central location. It was also a deliberate decision not to change our employees’ commute too much.”

Employees were also involved in the construction of the new building, says Heesakkers. “We carried out risk analyses with them. Because safety is ultimately not about people doing things because that’s what they’re told to do. It’s about wanting to work safely. The combination of an enormously safe site, and a high level of safety awareness, will ensure we continue to set the safety standard in the decades to come.”

HANDLING AND MOVING

Brenntag also has a warehouse for dangerous goods in Moerdijk, one of a number of locations operated by Brenntag Netherlands, itself headquartered in Dordrecht, that serve more than 6,000 customers within the country. Brenntag offers storage, packing, treatment and sale of industry base chemicals, speciality chemicals, additives and ingredients to various industrial sectors, including life sciences, environmental and material science customers.

A trip to the end of Middenweg reveals the waterside and the new TechnoPort tank container depot and cleaning facility, an affiliate of NewPort Tank Containers, which opened last year.

Along the way, the visitor also passes the Netherlands base of the German road tanker

and tank container operator Rinnen, while Switzerland-headquartered Bertschi has one of its four Dutch depots at the port.

PACK IT IN

Another element in the movement of chemicals is the availability of industrial packaging. Schütz, one of the world’s three major suppliers of packaging to the chemical industry, chose Moerdijk for its Benelux base, not least because it offers an ideal location for the delivery of packagings to consumers in Antwerp and Rotterdam, as well as the local industry around Moerdijk.

“With a surface area of more than 60,000 m2 and using the most advanced technology throughout the entire production and assembly process, as well as state-of-the-art service facilities, the Moerdijk plant sets new standards of quality and efficiency,” says Schütz Benelux.

Schütz Benelux, which opened in 2007, is one of the company’s largest and most modern production sites in the world, supplying the Benelux markets with plastics and steel drums and intermediate bulk containers (IBCs); it is also part of the global collection and reconditioning network, the Schütz Ticket Service.

“Since we started producing IBCs here in 2007, our Dutch site has been continuously growing through the addition of new products and services, investment in new production technologies and the expansion of warehouse and logistics capacities,” the company states. In 2008, steel drum production began, with capacity significantly expanded in 2011 alongside a new line for coating the insides of drums.

At the end of 2017, Schütz began production of 220-litre F1 plastics drums at Moerdijk. “The outlook is good,” the company says, “with all signs pointing to continued growth. An expansion of the internal plant infrastructure is already being planned.”

When a service company of the stature of Schütz says that demand growth is rising, it should be apparent that the port of Moerdijk is meeting a need; efficiency in the supply chain will be critical to the continued competitivity of the European chemical industry and that is just what shippers find in Moerdijk. HCB www.portofmoerdijk.nl

SUSTAINABILITY IN PRACTICE

This approach to plastics pollution is just one aspect of the Antwerp Port Authority’s commitment to sustainability, again in partnership with the local chemical industry and its logistics service providers. Sustainability, Antwerp says, is a fundamental determinant of the way it approaches activities, as demonstrated in its fourth annual Sustainability Report, published at the end of 2017, which lists the diverse initiatives in place to match the UN’s 17 goals for sustainable development and meet the sometimes conflicting needs of people, the environment and economic growth.

This involves a sustainable approach to the development of available space within the Port of Antwerp, ensuring efficiency for now and for the future, as well as a sustainable transition to a circular and low-carbon economy. At the 88-ha Churchill Industrial Zone, for instance, the Antwerp Port Authority is seeking investors that will bring synergies to the cluster in order to help reduce carbon dioxide emissions.

WHAT GOES AROUND

PORTS • CONCENTRATING ON SUSTAINABILITY AND THE CIRCULAR ECONOMY IS NOT A COST: IT ACTUALLY PROMOTES BUSINESS AND INVESTMENT, THE PORT OF ANTWERP SAYS

POLYMERS ARE GETTING a bad press these days; maritime pollution with plastics waste is making headlines around the world. As home to the largest petrochemical cluster in Europe and its most important polymer hub, the Port of Antwerp is taking the issue seriously.

Last year, Antwerp joined in with the Operation Clean Sweep® initiative, set up by the international chemical industry and supported by PlasticsEurope, making it the first port in Europe to implement the ‘Zero Pellet Loss’ programme and pledge to prevent plastics material from entering the environment. That has involved bringing together companies involved in

the production and handling of polymers in order to reduce to an absolute minimum any loss of raw materials to port waters or the broader environment.

The Zero Pellet Loss programme bundles together a number of local initiatives; these include weekly inspections of places where plastics could possibly have been released to the environment. If any pollution is found, it is traced back to its source and appropriate precautions are put in place to prevent any future recurrence of the loss. These precautions are monitored by an incident manager, who also controls the measures taken to remove the contamination.

As a special incentive, in 2016 the Antwerp Port Authority presented a Sustainability Award to the Ecluse project, which aims to gradually replace traditional energy sources for chemical companies on the left bank of the Scheldt River with ‘green’ heat. That heat, in the form of steam, is produced at the wasteto-energy plants operated by waste recycling company Indaver and its joint venture Sleco, while the heat distribution network is being built by Infrax. Once the Ecluse project reaches full capacity, it will be one of the largest industrial heat clusters in Europe, saving a remarkable 100,000 tonnes of carbon dioxide emissions every year.

Antwerp Port Authority will present another Sustainability Award in 2019 and says that many chemical companies have already submitted details of sustainability projects.

Initiatives such as these are, though, just the most obvious examples of Antwerp’s commitment to sustainability: others are less obvious but just as telling, such as the water buses introduced to replace workers’ daily commute, the promotion of renewable energy and environmental services, or the extensive research and development work in

the field of digitisation, designed to improve efficiencies and remove waste from the chemical supply chain.

Antwerp Port Authority’s efforts in the area of sustainable energy management have been recognised in the renewal of its ISO 50001 certification in July 2018, three years after its initial certification. “As a Port Authority we are conscious of our responsibility towards society, and we aim to set an example within the port platform,” says infrastructure manager Greet Bernaers. “With a clearly formulated energy management plan that enjoys general support, we want to inspire other companies to pursue energy efficiency in the same way. The fact that we have achieved ISO 50001 compliance for two cycles in a row shows that we have been able to make energy efficiency an integral part of our business.”

EFFICIENCY BEGETS INVESTMENT

Indeed, a large part of the drive towards sustainability and a circular economy involves the identification and elimination of waste in the system – and that can only be good for business. An important argument for the Antwerp cluster is the high degree of

integration, which is reflected along the entire chemical supply chain – from raw material supply through production and energy management to waste processing or administrative, technical and logistical services. It is therefore no coincidence that both new and existing companies continue to invest in the port.

The largest foreign investment in Antwerp – amounting to some €350m – came via Nippon Shokubai, which chose the port for its superabsorbent polymer and acrylic acid plant. There are other development plans in hand as well: Evonik is to invest many millions of euros in expanding its production capacities for specialty silicates, and Air Liquide will invest €80m in the construction of a hydrogen production plant as a part of a new long-term contract between the company and Covestro for the supply of hydrogen.

Moreover, Antwerp is currently in discussion with Borealis which, after a successful feasibility study, is proceeding with a technical study for a new world-scale propane dehydrogenation (PDH) plant at its existing production site in Kallo.

HANDLING CAPACITY

Alongside this investment in chemical production, bulk liquids terminal operators are also planning expansion. Antwerp accounts for around one quarter of all chemical tank capacity in Europe and the

trend is rising. Among current expansions of note is Oiltanking’s construction of the largest butane tank in the world at its Antwerp Gas Terminal (AGT) facility. The 135,000-m3 tank, due to start operations next year, will handle butane under a long-term deal with Ineos.

Elsewhere in the port, expansions are under way at Noord Natie, SEA-Invest, Vesta Terminals and Vopak ACS, with ITC Rubis also planning further additions. Projects such as this are needed to maintain efficiency in the supply chain as chemical production capacity increases; Antwerp Port Authority reports that the first half of 2018 experienced record freight volumes, with 118.6m tonnes of goods passing through the port, an increase of 6.5 per cent compared to the first half of 2017.

Containerised freight continues to be the main driver for growth, with throughput up 8.3 per cent year on year at 5.6m TEU, but chemical products throughput also increased by 8.2 per cent and oil derivatives, the largest item in the liquid bulk sector, were also up by 6.4 per cent.

Those interested in finding out more about Antwerp’s efforts towards sustainability, and information on investment opportunities, can meet the port at this year’s Annual Meeting of the European Petrochemical Association (EPCA) in Vienna, where the Port will host its own lounge under the motto ‘Feel the Chemistry’. HCB www.portofantwerp.com

NEWS BULLETIN

STORAGE TERMINALS

FUELLING ON THE FAL

World Fuel Services (WFS) has completed refurbishment of its terminal in Falmouth, UK, the final element being opening of a new jetty and strengthened breakwater. During the refurbishment programme, the tank farm was completely decontaminated, ageing tanks were demolished and replacement tankage constructed. A state-of-the-art waste oil processing was added, enhancing the terminal’s position as a marine fuelling and reception facility.

The original jetty was built in 1861 and, after falling into disrepair during World War I, was repaired and lengthened in 1923. WFS acquired the Falmouth terminal and port infrastructure in 2010, attracted by its position in the English Channel and the large volume of passing trade. It now gets more than 500 ship calls per year.

Headquartered in Miami, WFS is a global fuel logistics, transaction management and payment processing company, principally

engaged in the distribution of fuel and related products and services in the aviation, marine and land commercial, industrial and transportation industries. www.wfscorp.com

CONTITANK EXPANDS IN DELFZIJL

Contitank is currently engaged in a 13,100-m3 expansion of its terminal in Delfzijl, the Netherlands. Work started in June on the first of three 2,500-m3 tanks, with the construction programme due to be completed by the end of 2018. In addition, seven 800-m3 stainless steel tanks will be built in a second tank pit.

The expansion at Delfzijl responds to customer demand and, through the addition of stainless steel tanks, add flexibility to the terminal’s offering. Furthermore, as Contitank CEO Joris Hoogenbosch says, “This expansion can serve as the basis for the growth of bio-economy in Groningen.” www.contitank.eu

TRISTAR TAKES SHELL SITE

UAE-based Tristar has acquired Shell’s chemical terminal in the Jebel Ali Free Zone (JAFZA) in Dubai. The terminal, situated on a 21,000-m2 plot, has nine storage tanks with a total capacity of 5,505 m3, a jetty with three pipeline connections, a truck loading gantry and drumming facilities.

“This facility will complement our existing dangerous goods facility in JAFZA South zone, which currently houses a wide range of packed chemicals and petroleum products,” Eugene Mayne, group CEO for Tristar, is reported as saying.

Under the terms of the deal, Tristar will undertake a capacity expansion and modernisation programme over the next five years, extending the terminal’s capacity to 25,000 m3. Shell will remain a customer under the terms of a services agreement signed between the two companies. www.tristar-group.co

SHELL UPS STORAGE IN SINGAPORE

Oiltanking Singapore Chemical Storage is to build two new bullet tanks to store propylene for Shell Eastern Petroleum, expanding the existing C3 system Shell has at the site.

“Securing this new expansion for propylene, a key feedstock for Jurong Island, Oiltanking Singapore Chemical further anchored its position as a key chemical/propylene hub and integrated logistics and service provider for feedstock,” says the company, a joint venture between Oiltanking and Macquarie Infrastructure.

On completion of the new tanks, capacity at the terminal will reach 409,000 m3 www.oiltanking.com

CONTANDA PLANS HOUSTON PAIR

Contanda has announced plans to build two new bulk liquids terminala in Houston, to support its strategic expansion into petrochemical and hydrocarbon storage. The first project,

Contanda Houston Jacintoport Terminal, will provide up to 3.0m bbl (475,000 m3) of storage at Contanda’s existing Jacintoport facility, located adjacent to its steel terminal.

“This project meets the growing needs of our customers who have requested additional storage and logistics services to support their growth initiatives,” says Jerry Cardillo, president/CEO. “The new Contanda Houston Jacintoport Terminal will strengthen our position as a leading storage provider in our growing renewable, petrochemicals and hydrocarbons markets and allow us to continue our growth platform in and around the Houston Ship Channel.” Alongside the automated terminal, Contanda will build a deepwater dock, two barge docks and truck and rail infrastructure. Construction is due to start this month with commissioning scheduled for fourth quarter 2019.

Contanda is also working on a second new liquids terminal in the area, the Contanda Houston Greens Bayou Terminal, to serve the local refining and petrochemical sectors. A site has been secured on the Houston Ship Channel and Contanda is aiming for the terminal to be operational in 2021. www.contanda.com

INTER INTO A SLIDE

Inter Pipeline Ltd, Canada-based parent of Inter Terminals, reported second-quarter revenues of C$631.0m, up 22.3 per cent year-on-year, with net income rising 33 per cent to C$136.1m. Inter Terminals, however, saw profits fall from C$25.3m to C$17.4m and average utilisation drop from 98 per cent last year to 84 per cent. This decline reflected unfavourable market conditions in Denmark, while its terminals in Sweden and Germany are operating near capacity. www.interpipeline.com

MIXED BAG IN ARA

The three major ports in the Benelux countries have revealed variances in their first-half performance, indicating changes in the region’s hydrocarbons sector. The Port of Amsterdam suffered a 6.7 per cent fall in throughput of oil products in the first half of 2018, due to maintenance outages at one terminal and reduced trading on the futures market, especially for diesel.

“Whether the decline in oil products will continue is difficult to predict,” says Koen Overtoom, CEO of the Port of Amsterdam. “We are a truly international trading port, meaning that geopolitical developments affect the volumes that pass through our port. Oil products continue to be an important cargo flow for us at this time.”

The Port of Rotterdam, meanwhile, recorded throughput of 232.8m tonnes in the first half of 2018, down 2.2 per cent on the same period last year. While container throughput continued to rise, there were sharp declines in the volume of crude oil (down 7.6 per cent), coal (down 11.9 per cent) and mineral oil products (down 4.8 per cent). Throughput of ‘other liquid bulk’ (including chemicals) grew by 2.0 per cent.

However, the Port of Antwerp, which has a much stronger presence in the chemicals sector, reported very strong growth in throughput in

the first half of 2018, with overall tonnage up 6.5 per cent at 118.6m tonnes. Much of this reflects increasing container volumes but liquid bulk throughput was also up 6.1 per cent at 38.3m tonnes; chemicals volumes rose 8.2 per cent and refined products by 6.4 per cent, despite a fall in export volumes.

FILLING IN IN TARRAGONA

Vopak Terquimsa is undertaking a second phase of tank construction at the new chemical jetty in Tarragona (below). This project will add 27,500 m3 of chemical tankage and take capacity at the dock to 40,000 m3. It will also take Vopak Terquimsa’s overall capacity in Tarragona to more than 430,000 m3.

This second expansion is the logical consequence of “our ambition to grow in the Port of Tarragona, and is in line with the commitments acquired with our shareholders and with the Port Authority of Tarragona,” explains Eduardo Sañudo, general director of Terquimsa. The new capacity will help the company to “continue to meet the needs of our industrial customers located in the chemical cluster of Tarragona, while allowing us to attract new flows that enhance our role as a hub for chemical products in the western Mediterranean,” he adds. www.vopakterquimsa.com

BRIGHTER LATER

In the short term, chemical tanker operators are having to deal with two disruptive factors. The first is the weak market for clean petroleum product tankers, which is making more swing tonnage available to move chemicals. The second is the escalating trade dispute between China and the US, which has seen significant tariffs being imposed by both sides on all manner of goods, including a number of chemicals.

tariffs, low feedstock costs in the US will probably keep US-produced ethylene glycol competitive in Asian markets.

BETTER THAN THE REST

THE CHEMICAL TANKER market has continued to weaken during the first half of the year; although some indicators are beginning to improve, the oversupply that has persisted for ten years now is still limiting the ability of operators to respond effectively.

The chemical tanker orderbook has now fallen to 8 per cent of the current fleet, which provides some optimism moving forward, but that decline reflects the fact that 20 new deepsea (18,000 dwt or more) ships were delivered in the second quarter, and only five were scrapped. On the other hand, new orders were limited to swing tonnage over 50,000 dwt, with no new contracts for core chemical tonnage appearing in the second quarter.

In its second-quarter report, Odfjell notes that only a few of the chemicals in scope of the new tariffs are shipped in bulk as liquids; moreover, tariffs on ethylene dichloride, lube oils and acrylonitrile from the US are not having any significant impact on chemical tanker demand, as Chinese importers are sourcing product from elsewhere, while US exporters are finding other markets in Asia.

However, Odfjell notes, Chinese tariff increases are now moving to other products shipped in large volumes by sea, including methanol and ethylene glycol; again, though, China has alternative sources for these products, particularly methanol, with Trinidad due to bring a major new export plant onstream in the first quarter of 2019.

“We therefore currently do not expect any major negative impact on volumes shipped –and perhaps it may even increase demand for regional distribution in some trades,” Odfjell says. It also notes that, even with increased

Against this backdrop, Odfjell has managed to maintain its level of financial performance in its chemical tanker operations. Second-quarter revenues of $209.0m were only slightly behind those of the prior quarter and virtually flat compared to the year-earlier figure. EBITDA of $28.0m was up on the first quarter’s $26.9m, although behind the $30.5m recorded a year ago. The quarter-on-quarter improvement in EBITDA is noteworthy given overall market conditions and reflects improved performance in Odfjell’s portfolio of contracts of affreightment (COA), which enjoyed higher nominations and stronger volumes. It also reflects the successful implementation of cost control measures, as well as the ongoing restructuring of its fleet and vessel ownership profile.

During the last quarter it took delivery of the last of the 25,000-dwt stainless steel tankers that now form a 15-strong pool with CTG. In the second half of the year it will add the last of the ‘super-segregator’ vessels that form part of its arrangement with Sinochem; another ten stainless steel carriers are due to be added between now and the end of 2020. HCB www.odfjell.com

MARKET • ODFJELL’S STRATEGY HAS ALLOWED IT TO OUTPERFORM WHAT IS STILL A GENERALLY WEAK CHEMICAL TANKER MARKET, THOUGH SOME RELIEF IS DUE NEXT YEAR

AGE CANNOT WITHER HER

RESTRICTIONS • PUTTING

been properly maintained throughout its life can expect to continue to trade safely and efficiently until 25 or even 30 years of age, he says.

EXPENSIVE TO BUILD

PLACING RESTRICTIONS ON vessels according to age is a crude metric but one that is used by charterers and port state control alike when assessing ship quality. Tankers of more than 20 years of age may be rejected by charterers without any regard to their actual ability to do their job safely and efficiently.

That approach is wrong on a number of counts, says Jan A Hammer, managing director of Essberger Tankers. A stainless steel chemical tanker that has been well designed and well constructed and that has

But in the face of conflicting restrictions placed on older tankers, Hammer believes a more sensible solution is to set a universal age limit of 25 years; this will encourage owners to invest in building and maintaining good quality vessels and give them the opportunity to trade those vessels to their fullest extent over a predictable lifetime, with benefits not only to owners and charterers but also the environment.

“I do not want to be misunderstood,” Hammer says. “Safety and environmental care are the most important aspects of our business and will never be compromised. I would not have launched my proposal if I did not know that the safety record of some of the chemical companies that are not operating with age restrictions are in fact better than for those that do.”

The business of operating chemical tankers is, Hammer says, inseparable from the business of tank cleaning. Chemical tankers are designed to be able to carry several different cargoes simultaneously – not just liquid chemicals but also vegoils, petroleum products, lube oils and so on – and also to be able to change to other cargoes at every port call, as market conditions and vessel scheduling demands. As a result, chemical tankers are designed to be able to strip their tanks of cargo using deepwell pumps, and to clean the cargo tanks quickly and effectively.

In addition to the necessary pumps and cleaning machines – one for each cargo tank - chemical tankers will normally be equipped with nitrogen generators for tank blanketing, boilers for steam generation, heating coils and vapour return lines. This also means a lot of interlocks and control systems. Add in the cost of the stainless steel cargo tanks and it is clear that a chemical tanker is a very expensive ship to build.

To put this into perspective, a new 6,500dwt stainless steel chemical tanker will, in today’s market, cost around $20m to $24m. That is much the same as a handysize (37,000 dwt) bulker. A 40,000-dwt ‘super segregator’ stainless steel chemical tanker will cost

AN AGE LIMIT ON CHEMICAL TANKERS IS A CRUDE APPROACH THAT BENEFITS NO ONE, SAYS ESSBERGER’S JAN HAMMER. HE HAS A PROPOSAL TO MAKE

between $60m and $80m, almost as much as a 350,000-dwt VLCC. In other words, stainless steel chemical tankers cost as much as simpler vessels with a carrying capacity between six and nine times larger.

All this investment needs to be recouped and that has an influence on the expected economic life time (ELT) of the vessel. ELT is usually determined as being the point where the cost of ongoing maintenance outweighs the potential returns from trading. Frequently, the cut-off point coincides with a special survey: classification societies require that vessels undergo a special survey (which includes a drydocking) every five years and such surveys are expensive. As a result, an ageing vessel may well be retired immediately before its fifth special survey (generally at 25 years of age) or sixth special survey (at 30 years).

In the chemical tanker sector, Hammer says, less sophisticated vessels with coated tanks are often retired before they reach the age of 25; the higher cost of stainless steel

ships means that owners need to trade them longer and, as a result, make sure they are fitted with all the necessary equipment and are well maintained. In such cases, a 25-yearold ship can, from a safety and quality point of view, perform much better than a younger tanker that was badly constructed and not properly maintained.

CHARTERER RESTRICTIONS

Age restrictions are just one issue among many when it comes to charterers’ ‘rules and regulations’, Hammer points out. Such rules, which have proliferated in recent years, may include the vetting and CAPrating of ships and crew matrices in addition to age restrictions. These come on top of class surveys and audits carried out by the Chemical Distribution Institute (CDI) and by port state control inspectors.

“Commercial operation of chemical tankers is not rocket science but it is still relatively difficult and certainly requires skilled and experienced people,” says Hammer. “It goes without saying, therefore, that individual or charterer-specific rules and regulations make the running of the business additionally complex.”

What makes life hard is that these additional requirements are often specific to a particular charterer; a vessel that may be

perfectly acceptable to one charterer may be unacceptable to another; just taking age restrictions as an example, some charterers demand that vessels are no more than 15 years old, or 20, 23, 25 or whatever.

Hammer believes that the incident that gave impetus to charterers’ view on vessel age was the sinking of the tanker Erika off the coast of France in 1999. The tanker broke in two, spilling its fuel oil cargo and causing severe pollution of the sea and coastline.

Erika was 25 years old at the time of the incident and, while it later emerged that there were specific problems with the ship, a few charterers quickly introduced a 25-year limit on the vessels they were prepared to employ; that restriction rapidly spread through the industry and, with individual charterers keen to establish their environmental credentials, has been successively tightened.

Not only do shipowners face a range of age restrictions from different customers, those customers also vary their age restrictions depending on a range of aspects, such as the cargo involved, the route and the ports that will be visited, and other factors. All this leads to uncertainty for the owner.

WASTE OF SPACE

The inevitable outcome of this is reduced utilisation of carrying capacity. Given the »

range of restrictions and the waivers and exemptions that exist, owners cannot schedule their fleets efficiently. They cannot achieve the best cargo combination for each vessel for each voyage, which leads to an unnecessary number of port and berth calls, more time in port, more ballast voyages and empty positioning. That translates directly into inefficient vessel utilisation overall and an environmental footprint that is bigger than necessary.

“Another effect is that lower utilisation obviously means a limitation of supply – fewer ships than those physically capable are made available to compete for specific cargoes, the result being higher freight rates and cost of transport than would otherwise have been the case,” Hammer says.

The intentions of charterers in imposing age restrictions are good: to reduce the number of incidents and improve safety. But do they do that? There is no evidence to suggest they do. Most incidents on tankers – 90 per cent is a proportion widely quoted – are due to human error, either aboard the ship or in shoreside functions. There are no figures that demonstrate any correlation between tanker incidents and vessel age.

Moreover, if owners are uncertain about the long-term trading potential of their ships, are they going to be willing to put in the necessary investment at the newbuilding stage, and to continue to maintain those ships effectively? Some owners have already been complaining that the business is not sustainable as things stand.

RETURN ON INVESTMENT

Shipowners, like any other business, make investment decisions on the basis of an expected return. If a chemical tanker owner wants to build new ships, it will likely be on the basis of an expected return over the 25 years of useful life of those ships; if charterers’ age restrictions mean that the lifetime is only 20 years, that investment does not pay off.

The rational response to that is to base the initial investment on a 20-year lifetime; that inevitably means a compromising on building specifications and expenditure on maintenance over the life of the ship.

The result is obvious: a vessel of poorer quality, which is not good for safety. “I would say, in fact, that a low-quality ship built for 20 years is potentially a higher risk than a highquality ship built for the optimal economic lifetime,” Hammer says. In addition, this response increases the industry’s environmental footprint and means that ships will go for demolition with components that could last for many more years.

This, in effect, resembles a ‘buy-and-throwaway’ culture but, as Hammer says, “Is that what the world expects of us today?”

More than that, cheaper ships generally have a lower degree of automation, which can lead to more personal injuries among the crew and make the vessels less attractive. This makes it harder for operators to recruit and retain high quality crew.

One suggestion has been that older vessels could simply be moved to so-called ‘secondary’ trades. This seems to mean deploying them in low-grade cargoes (bunkers, fuel oil, etc) and/or in areas where safety is believed to be less of an issue. That is hardly an ethical approach. “Shouldn’t the

safety and quality of transport be equally Important for everyone involved, in all parts of the world?” Hammer asks. “Don’t we all want to bring the world towards a common safety and quality standard?”

HERE’S AN IDEA

Hammer has a suggestion to rectify the problem. As he says: “The safest solution is by contributing to bringing the chemical tanker industry towards common rules and regulations, including a maximum age limitation of 25 years for stainless steel chemical tankers.”

If charterers could agree (or be made to agree) that they will accept quality vessels up to the age of 25 years, that would remove the uncertainties faced by operators in the deployment of their fleet. It would also give owners the confidence to invest in high quality ships and maintain them to the standards required. “An age restriction at this particular milestone is something owners and operators easily can plan for and live with,” Hammer concludes. HCB www.essberger.biz

SWEAT THE SMALL STUFF

LPG • IMPROVED EARNINGS FOR FULLY PRESSURISED GAS SHIPS ARE NO SURPRISE, JUST THE ANTICIPATED OUTCOME OF RESTRAINED NEWBUILDING ACTIVITY AND FIRM DEMAND

GLOBAL SEABORNE LPG trade is expected to grow by 3.5 per cent this year to 95.1m tonnes, according to Facts Global Energy. That will provide employment for LPG carriers of all sizes but in many segments fleet growth is outpacing demand. It is only in the fully pressurised segment that additions to the global fleet are currently lagging demand and the past year has shown some significant improvement in earnings.

Epic Gas, which has a young and modern fleet of 39 vessels and is the largest commercial operator of pressurised LPG carriers, reports that average market rates for its 3,500-m3 ships were up 36 per cent year-on-year in the second quarter; the

increase for its 5,000-m3 vessels was 24 per cent. Only in the larger segments, where there is more competition with semirefrigerated carriers, were earnings flat or slightly off.

“Fleet supply in the smaller vessels segment where we operate remains contained taking into account minimal newbuilding deliveries scheduled for the next three years and a growing pool of scrapping candidates from older vessels,” says Charles Maltby, CEO of Epic Gas.

Timecharter equivalent earnings per vessel/ day rose 13.7 per cent overall compared to the second quarter 2017, with fleet utilisation running at 92.9 per cent.

ALL AROUND THE WORLD

Epic Gas is active in all geographic locations and so has a unique perspective on the market for pressurised LPG carriers. It notes that, during the second quarter, heightened activity in north-west Europe persisted until the summer lull set in late in the period. There was better employment for larger vessels compared to the prior period, with shippers moving larger parcel sizes and willing to pay firmer rates.

The Middle East was busy with LPG and petrochemical exports during the second quarter. The region saw an increasing presence of the largest sized pressure vessels to serve growing markets in Pakistan, Bangladesh, Sri Lanka and, more recently, Sudan.

The market in Asia remained firm for most of the quarter. China’s propylene imports remain an important driver in the 3,500-m3 and 5,000-m3 sectors and imports during the second quarter are understood to have remained at the previous period’s level of 230,000 tonnes.

Things have been less optimistic elsewhere. The Mediterranean/Black Sea spot market was generally quiet, with weak export activity from Russia and the Ukraine and contractual volumes being moved largely by tradercontrolled tonnage.

While US LPG export volumes continue to increase, they mainly benefited larger LPG carriers in the second quarter, with volumes moved by pressurised and smaller semi-refrigerated ships down by 22 per cent compared to the first quarter. This was mainly felt in transatlantic cargoes to the Mediterranean and West Africa, which disappeared from the market.

Epic Gas states that there are currently 324 fully pressurised gas tankers of 3,000 m3 capacity or more on the water (excluding domestic Chinese-flagged tankers), with only eight newbuildings due to be delivered by the end of 2020. Conversely, there are currently 12 ships of 28 years or older, which makes them likely candidates for scrapping. Fleet growth in the next two years is therefore expected to be extremely low, if not negative, which will further tighten the market in those locations where demand remains firm. HCB www.epic-gas.com

NEWS BULLETIN

TANKER SHIPPING

ETHANE CONVERSION FOR NAVIGATOR

Navigator Gas has completed what it says is the first ever conversion of a marine diesel engine to use ethane as a fuel. The 35,000-m3 Navigator Aurora, which was built in 2016 with a MAN B&W 6S50 ME-GI dual fuel engine running HFO and LNG, has been converted to use HFO and ethane. The decision to carry out the conversion was taken by Navigator and Borealis, the vessel’s charterer, following trials on a test bed engine last year; the work was carried out while berthed alongside in Frederikshavn, Denmark with the cooperation of the engine manufacturer and TGE, the cargo system supplier.

Paul Flaherty, director of fleet and technical operations at Navigator Gas, says: “This project represents a significant investment by both Navigator Gas and Borealis that clearly demonstrates a very strong commitment to environmental protection and the reduction of greenhouse gas emissions. This retrofit

modification will comply with all current global emissions regulations and position us as early adopters of the global sulphur cap regulation due to come into force on 1 January 2020.”

Navigator Holding, parent company of Navigator Gas, has meanwhile reported a second quarter loss of $3.16m compared to a net income of $2.25m for the same period last year. Revenues were off slightly, falling from $74.4m to $73.2m. The company reports a weak freight rate environment and rising bunker costs, which outweighed an increase in vessel utilisation, prompted in particular by an increase in long-haul petrochemical gas trades from Europe to the US Gulf and from Brazil to the Far East. www.navigatorgas.com

SALE BOOSTS EXMAR

Exmar has reported a 6.7 per cent year-on-year increase in turnover for the first half of 2018, with revenues reaching $47.6m. EBITDA came in at $23.3m, compared to a loss of

$17.8m last year, boosted by a $30.9m capital gain on the sale of the FSRU Excelsior

First-half EBIT from LPG tankers fell from $7.4m to $1.9m, largely due to continued declines in rates for VLGCs and mid-size carriers; however, Exmar notes, rates have improved since June and it expects the market to remain at a firmer level going forward.

Exmar currently has only one VLGC, BW Tokyo, but has two LPG-fuelled 80,200-m3 units under construction at Hanjin Heavy Industries for delivery by 2020; these are secured under long-term charters to Equinor, formerly Statoil.

Exmar’s modernisation of its core midsize fleet came to a conclusion in July with the delivery of its final newbuilding, Wepion www.exmar.be

SKAUGEN ABBREVIATED

IM Skaugen SE changed its name to ISMK SE ahead of its delisting from the Oslo Stock Exchange on 17 September. That move is part of its comprehensive refinancing plan announced in April and the three-month protection provided by Singapore courts, which expired at the end of September. www.skaugen.com

DORIAN DIVES WITH RATE SLUMP

Dorian LPG has reported revenues of $27.6m for the first quarter of its 2019 fiscal year, down from $41.0m a year ago; the net result was a loss of $20.6m compared to an adjusted net loss of $22.3m in the same period last year.

Dorian notes that freight rates fell in the early part of the quarter but have since recovered, with the Baltic LPG index exceeding $40/tonne in July for the first time since February 2016. With more US exports expected in the second half of the year, and additional capacity coming onstream in Australia, more support should be provided by rates, though serious recovery may have to wait until 2020 once the current newbuilding bulge is accommodated.

Dorian LPG also continues to resist a takeover offer from BW LPG, which is to nominate three individuals to stand for election to Dorian’s Board of Directors at its annual meeting of shareholders. It has also been made public that Seacor Holdings, one of Dorian’s largest shareholders, is backing the takeover.

Martin Ackermann, BW LPG’s CEO, says, “Due to Dorian’s continued refusal to engage meaningfully with us on a proposed combination, we have decided to go directly to shareholders with our director nominees. We urge all Dorian shareholders to make their voices heard by voting to elect directors who are open to exploring opportunities to maximise value.”

www.dorianlpg.com

BW SWITCHES TO LPG

BW LPG has joined a select band of owners looking at LPG as a fuel for its ships. “BW LPG has been preparing for IMO 2020 for years and I am pleased to announce that we have signed contracts for the delivery and retrofitting of four LPG-propelled dual-fuel engines,” says Martin Ackermann, CEO of BW LPG. “We will be the global pioneer in operating next-generation,

high-tech green ships with dual-fuel propulsion. This retrofitting is just one way in which we ensure that our shareholders invest in a forward-looking company that positions itself well for future challenges.”

LPG propulsion will, BW LPG says, reduce its sulphur oxide emissions by up to 97 per cent, making it fully compliant with all current and future sulphur emissions requirements. The contract for four engines includes options on further retrofits.

BW LPG has meanwhile reported secondquarter EBITDA of $8.1m, well down on last year’s $39.6m after a continued fall in VLGC freight rates. Inventory restocking in the US left lower volumes of LPG available for export, although the company reports that improved arbitrage margins and increased fixing activity have supported a recovery in rates during the third quarter so far. www.bwlpg.com

TEAM BACK IN THE BLACK

Team Tankers International has moved back into the black, reporting net income of $4.4m for the second quarter, compared to a net loss of $7.1m in the same period last year. At the

start of the latest period, Team completed the acquisition of Laurin Shipping and AngloAtlantic Steamship, which have now been integrated into the Team operation. “We expect annualised cost savings in excess of $7m through the combination,” says CEO Hans Feringa, who has been reappointed to the position for a further four years.

Team has also refinanced its debt facility, exercised purchase options on three leased vessels and begun the process of bringing more vessels onto its new in-house technical management platform. www.teamtankers.com

EVERGAS VLECS MOVE FORWARD

Evergas reports that its first 85,000-m3 very large ethane carrier (VLEC) (below) has been launched at DSIC in China and will be delivered in the first quarter of 2019. Steel cutting on a sistership has begun. The two VLECs will be used by Ineos Trading & Shipping to move liquefied ethane from the US on long-haul routes. Evergas is already working with Ineos with eight smaller multigas vessels trading ethane. www.evergas.net

BUSINESS AS UNUSUAL

TRADE • RIPPLES FROM THE BREXIT DECISION ARE SPREADING THROUGHOUT EUROPE; ROTTERDAM IS LIKELY TO BE PARTICULARLY BADLY AFFECTED, AS JANNY KOK REPORTS

THE UK’S EXIT from the EU, scheduled for March 2019, is causing great consternation in the local economy and nowhere more so than among logistics service providers. Uncertainty about the form of any future customs and tax arrangements between the UK and the EU makes it difficult for those involved in trade, whether as exporters, importers or logistics firms, to plan very far ahead.

Much of that uncertainty derives from the UK Prime Minister’s inability to reconcile the two wings of her ruling Conservative Party;

without being able to come down on one side or another, Prime Minister ‘Maybe’ has been unable to define exactly what the UK expects from a post-Brexit arrangement and, as a result, no arrangement has been forthcoming.

It should not be forgotten in all this that Brexit – and particularly a ‘no deal’ Brexit –will have serious repercussions for similar industry sectors on the other side of the (English) Channel. This is especially true of companies operating in and through the major northern European ports – as well as

the ports themselves. For instance, some 90 per cent of ro-ro traffic leaving Rotterdam is bound for the UK.

The tide of populism that delivered the Brexit vote in 2016 has also had an impact in other EU member states, which has created uncertainty in a number of countries about whether other EU exits might be possible, or about how the continuing EU will respond.

Meanwhile, those involved in cross-Channel trade seem to be taking a ‘wait and see’ approach to the more immediate threat. In the summer, a conference at the European Parliament concluded that there is a lack of urgency about the issue, and a recent survey in the Netherlands found that only 18 per cent of companies likely to be affected by Brexit are planning for a worst-case scenario.

The Port of Rotterdam is, though, taking the threat seriously, CEO Allard Castelein has initiated a dry run for a no-deal Brexit, »

involving public and private interests, to be held in late November, 90 days before Brexit becomes reality. Rotterdam is particularly at risk, since some 40m tonnes of freight moves between Europe’s largest port and the UK each year, with around 600,000 trailer movements.

At present, the frictionless border between the UK and continental EU states means that goods leaving Rotterdam on an afternoon ferry can be in UK shops the next morning. After 29 March 2019, that will no longer be the case. In September 2018, representatives of the Port of Rotterdam Authority, Dutch Customs and the Dutch Consumer Safety Authority (NVWA) made it clear that, under World Trade Organisation (WTO) rules, which will apply post-Brexit, customs formalities and the supervision of goods moving between the Netherlands and the UK will be re-introduced. That will include the levy of customs duties, goods and vehicle inspections, and the collection of documentation.

UK negotiators have been told that they cannot rely on ‘special arrangements’ being

in place to tackle the loss of free trade, and the attendant customs, food and veterinary inspections and the documentation to go with them; there have been suggestions that this will quickly generate five-mile queues for freight traffic within the port area in Rotterdam.

motorways, as it is anticipated that drivers will be held up for hours, if not days, waiting for embarkation onto ferries from Dover or onto the Shuttle trains through Eurotunnel.

One problem to be faced is that most people working for companies that are involved only in intra-EU trade have no experience of the legal requirements for international trade. It is estimated that there are around 35,000 companies just in the Netherlands that are in this position and will have to learn about customs declarations and other compulsory documentation if they are to continue to trade with the UK.

The same goes for the authorities: the Dutch government has taken the precaution of preparing to hire (and train) 928 additional customs officers; the Consumer Safety Authority will hire 143 staff, including around 100 vets.

As yet, plans for the construction of new customs inspection posts, parking spaces for lorries and cool warehouses for flowers and vegetables have been put on hold while the world waits for the outcome of negotiations. The UK authorities have so far made preparations for the worst by planning to install portable toilets along the M2 and M20

Trade associations in the Netherlands are also preparing for the worst. The employers’ association VNO-NCW has warned its members to be prepared and is offering assistance. Together with the government, other branch organisations and banks, VNO-NCW has set up a website with details and instructions on how to deal with the impact of Brexit on their business with the UK.

The cost to the Netherlands of Brexit –in terms of added costs and inefficiencies as well as lost trade and higher consumer prices for UK goods – has been estimated at more than €10bn over the coming ten years. One can only imagine that other countries will face similar financial losses. Given the size of the impact on EU states, and the fact that the UK has not been able to establish quite what it wants its relationship with the EU to be post-Brexit, EU trade negotiators are currently focusing on striking new deals with other countries, notably Norway, Canada and South Korea.

Chief negotiator Michel Barnier has repeatedly stressed that the UK cannot pick and choose from a menu of agreements and, while he said last month that “we still hope to reach an agreement with the UK”, he was also firm in his insistence that there will be no ‘business as usual’ after Brexit. HCB

THE PORT OF ROTTERDAM IS AIMING TO RAISE AWARENESS OF THE PROBLEMS THAT WILL UNDOUBTEDLY EMERGE AS A RESULT OF THE UK’S EXIT FROM THE EU IN MARCH NEXT YEAR



“90 PER CENT OF THE RO-RO TRAFFIC LOADING IN ROTTERDAM IS BOUND FOR THE UK”

THE FRONT RUNNER

DIGITISATION • WITH 20 YEARS’ EXPERIENCE OF TELEMATICS IN THE SUPPLY CHAIN, HOYER AIMS TO STAY AT THE FOREFRONT OF TECHNOLOGY WITH ITS LATEST PROJECT, SMART TANK

HOYER, THE HAMBURG-based international bulk logistics firm, is no stranger to the application of the latest information technology to the supply chain. It started its first trials with GPS solutions 20 years ago and, in 2013, began working with telematics solutions for dedicated businesses. But as the possibilities of using data more intelligently started to reveal themselves, things have moved on more rapidly since then.

Marlen Blechschmidt, head of digitalisation at Hoyer’s Business Unit Netlog, explains: “The need for transparency in the logistics chain for products – and especially dangerous

goods – revealed itself as a general requirement of the market and broader society. Therefore, in 2016, Hoyer decided to equip its entire tank container fleet with smart technology.”

The outcome of this decision will be seen by Hoyer’s customers when its new Smart Tanks arrive on their premises. “The Smart Tank is one of Hoyer’s leading digital projects and plays a fundamental role in the group’s overall strategy,” Blechschmidt says. “Through this, Hoyer is setting new standards as a solutions provider for liquid goods.”

By enriching transport data with realtime information, Hoyer is able to offer new and improved services to its customers. “Our activities always include long-term responsibility for people and the environment and the Smart Tank supports our customers’ needs for safety, quality and reliability,” Blechschmidt adds.

Hoyer reports that the Smart Tank project has attracted “massive interest” from the chemical industry. That level of interest also made it clear that there is an appetite for more information, both internally and externally, to explain the possibilities on offer through the technology. “Implementing the resulting findings in practice and on time is another challenge that Hoyer successfully manages,” Blechschmidt says.

THREE-WAY BENEFITS

The Smart Tank offers three main advantages. It can optimise fleet management,

significantly reducing the need for manual inputs and improving fleet utilisation.

It enhances safety in transport, meeting societal and environmental demands. And it adds to the quality of transport operations through a focus on deviation management and timely delivery of goods, as demanded by modern in-time logistics.

Hoyer can offer not only geo-information but complete monitoring of goods in transport at any defined point of time. “Monitoring also includes the condition of the transported goods – temperature, filling level and pressure – allowing us to identify any deviations. These can be detected at an early stage through deviation alerts,” Blechschmidt explains.

“This project marks a strategic milestone in the tank container logistics industry,” Blechschmidt continues.

“The digitalisation of the logistics chain in the chemical industry is a global challenge that Hoyer has accepted technologically by developing and using the Smart Tank’s highly specialised telematics solution.

“We will complete the installation process within the next two to three years,” she adds. “At the end of that period we intend to have our employees and processes prepared for making optimal use of the whole smart logistics concept.

The strong interest of our customers underlines our vision to set a new standard for the industry.” HCB www.hoyer-group.com

SOARING INTO EUROPE

OPERATORS • EAGLETAINER LOGISTICS IS BUILDING ITS PRESENCE IN EUROPE, AIMING TO BOOST ITS MARKET SHARE IN THIS HIGHLY COMPETITIVE MARKET, AND WILL BE PRESSING ITS CASE IN VIENNA THIS MONTH

EAGLETAINER LOGISTICS, A Singaporebased tank container operator, is working hard to promote its work in Europe. HCB spoke to Sylvia van der Brugge, general manager of Eagletainer Logistics, who told us about Eagletainer’s endeavours in the European Market.

Eagletainer first opened its doors in 2006 with a fleet of 250 tank containers. Twelve years later, the company has grown significantly and now owns 8,400 tank containers, of which 3 per cent are leased and 97 per cent are fully owned.

In 2012, the company opened its first European office in the Netherlands, which today has five full-time staff. Entering a new economic area and trying to build up a brand is extremely difficult; Eagletainer has had to work exhaustively to establish itself in this hugely populated market.

“We do our utmost to serve our clients with the highest level of customer service,” says van der Brugge. “By building up good relationships, we aim to increase the volume of shipments we process for each of our clients and, as a result, continue to grow organically in Europe.”

STIFF COMPETITION

Eagletainer hopes to further build European brand awareness by attending the European Petrochemical Association’s (EPCA) Annual Meeting in Vienna this month. “As a newcomer in the European market, it’s difficult for us to gain market share, especially with all of the well-established names around us,” says van der Brugge. “Generally speaking, the European market is competitive; there are a lot of players.”

Attending the EPCA will, she says, offer it an important platform to meet potential and existing customers from all over Europe and act as an important catalyst in Eagletainer’s plans for European prominence.

A lot of Europe is still facing an ongoing shortage of drivers, especially in the Benelux states and Germany. Eagletainer’s European division has had to make adjustments to its operations in order to keep up with demand. “We have to constantly fine-tune our operations,” continues van der Brugge. “Due to the significant pressure on truck drivers, it’s very important for us to know what booking we can and cannot accept. However, we strongly believe in good customer service and we will never say no to a delivery unless we absolutely have to. It’s very important that once we commit ourselves to delivery of tank containers, we know for sure that our partners can handle it.”

In the wake of the Hanjin Shipping bankruptcy in 2016, Eagletainer was still able to ship every booking that it took on, something that van der Brugge has attributed to the excellent relationship that the company has with its shipping partners: “In the end, we are all partners,” says van der Brugge.

Eagletainer is dedicated to high standards of communication, service and quality, something that can only be gained from being in the tank container industry as long as it has. The company is able to offer services such as short and long-term leasing of tank containers as well as door-to-door transportation with full customs clearance.

With additional offices in China, Malaysia, the Philippines and a head office in Singapore, Eagletainer is making its mark around the world. HCB www.eagletainer.com

MAN-MACHINE INTERFACE

DIGITISATION • SMART SUPPLY CHAINS ARE COMING BUT, ASKS M&S LOGISTICS’ DAVID KEW, WHO IS GOING TO PAY FOR THEM? AND WHAT DOES IT MEAN FOR INVESTORS AND WORKERS IN THE SECTOR?

DIGITISING THE CHEMICAL supply chain has been a recurring topic throughout 2018 – and will no doubt continue to be so in the future. But it is not an off-the-peg solution for logistics service providers (LSPs) in the sector and, as David Kew, managing director of tank container operator M&S Logistics, explains, there are many steps to go through if the process is to deliver benefits.

Pressure for greater digitisation and the use of Blockchain solutions (especially in the realm of distributed ledgers) in the chemical supply chain is, Kew says, coming primarily from chemical producers. As industries, he adds, both chemical producers and their LSPs are behind the curve on digitisation in comparison with other sectors. Furthermore, while LSPs are still a few years away from being required to integrate into supply chainwide digitised systems, they need to start preparing now.

That process will require commitment and the necessary investment from all the relevant stakeholders. As Kew says, “While M&S acknowledges the drive to implementation of Blockchain concepts, it will not be without cost. The question is: while offering value to all parties that are required to invest – and considering the required investment – how is it going to be financed?”

At the moment, margins in the European logistics business are under significant

pressure. As a result, international tank container operators and other players in the sector are re-evaluating their activities in the European market. “M&S has reduced its European exposure this year, preferring to trade in regions where a fair return can be made from the services we provide,” Kew states.

WHAT ABOUT THE HUMAN ASSETS

M&S is also alert to the human cost of digitisation and the implications it has for how companies will do business in the future. For digitisation and Blockchain to work properly across the chemical logistics sector, there will need to be a change of attitude and culture, Kew says, with a common approach and real partnerships between chemical producers, their LSPs and other service providers, such as depots, road hauliers, rail companies and shipping lines.

“M&S invests in people and we need to understand how digitisation will affect our staff, our suppliers, our customers and their needs,” Kew adds. After all, when things go wrong – as they sometimes will – it will be people who will fix them, not systems.

That does not mean that M&S is letting the digital revolution pass it by. It is already working with Real Asset Management (RAM) on its tank management system and paying close attention to the level of digitisation in the system.

But Kew is aware of the threats. “While we’re all interested in new technology,” he says, “the question needs to be asked: ‘Where is the real value?’ With Blockchain we need to identify what information is key to the supply chain. In terms of standard bulk liquids it is unlikely that there will be more than 10 items of information that really add value.”

Then there is the issue of confidentiality. “If we open our systems to each other, how do we manage it and ensure we’re not compromising sensitive information,” Kew asks. Moreover, in Europe, how can we develop the processes, bearing in mind the need for stringent data protection rules? HCB www.mslogisticsltd.com

ASK THE EXPERT

SAFETY • CHEMICAL EXPRESS DISCUSSES THE LAYERS OF PROTECTION THAT NEED TO BE IMPLEMENTED TO ENSURE THE SAFE DELIVERY OF PRODUCT

SAFETY IN THE WORKPLACE has become a hot topic in recent years, especially in relation to dangerous goods. Transport companies must be able to guarantee that all of their operations are carried out with full risk assessments in place for both staff and equipment. The first stage of this process involves company-wide safety awareness. Safety is more than just observance of regulations – it is a set of behaviours and daily activities that, within themselves, underpin the wellbeing of employees. Pursuing best practice and prohibiting risky behaviour through reward and penalty systems can be quite effective in preventing incidents. Continuous training provided by employers is an excellent way to

make sure staff are continually up to date with the latest regulations.

On the road and in the workplace, that means not just knowing the risks that dangerous goods present but also being trained in such areas as:

• Safe and defensive driving

• Personal protective equipment

• Working at height

• Technical devices.

Significant importance is given to near miss analysis: looking at events that had the potential to cause injury but, by pure happenstance, did not. It is important that incidents such as these are turned into case studies and used to further educate, in order to prevent something similar happening again. Something that cannot be understated is the necessity to keep all devices to the most up-to-date versions; out-of-date technology can be more dangerous than the most irresponsible human.

AS STANDARD

All newly manufactured vehicles are equipped with advanced emergency braking systems (AEBS) and lane departure warning systems, in compliance with EC Regulation 661/2009. These safety devices are designed to automatically slow or stop a vehicle in the event that an obstacle is detected, some even able to automatically correct the driver’s trajectory. Other systems such as anti-slip and emergency stop signal systems have existed on the market for some years but are now becoming ‘as standard’ features in a lot of vehicles.

Chassis production has also come a long way, with many equipped with safety devices such as ergonomic rear access, easy access for the use of hoses, retractable handrails, low and anti-slip steps, and collection tanks in case of product spill during unloading operations.

Latest generation tank containers are fitted with numerous safety mechanisms such as anti-slip walkways, stainless steel collapsible handrails and an air valve accessible to the ground operator to allow the operator to achieve the correct pressure within the tank without the need to climb on top, thus eliminating the risk of falling. Some operations can also be carried out with an all-important ‘lifeline’, which allows operations to be carried out at high altitudes with constant anchorage.

Additionally, tanks are often equipped with safety devices to aid unloading operations, such as remote controls that allow immediate shutoff of the unloading valve, even when the driver is some distance away. Safety relief valves and vacuum relief valves also come in useful should there be any overpressure or depression of the tank.

Chemical Express has been present in the industry since 1979 and provides its transport services to all its customers, making the know-how and all the technological innovations available, in order to guarantee very high safety standards at all levels. The company offers tailormade solutions in order to meet customer requirements when transporting by road, rail or sea. HCB www.chemicalexpress.it

KEEPING UP WITH CHEMICALS

LEASING • ROBIN POL, SALES DIRECTOR OF GLOBAL TANK CONTAINER LESSOR TRIFLEET LEASING, DISCUSSES THE IMPORTANT ISSUES FACING LOGISTICS SERVICE PROVIDERS IN THE CHEMICALS SECTOR

HCB: Trifleet Leasing serves a variety of sectors. How do the requirements of the chemical industry differ from other industries?

RP: Within the chemical industry, particular importance is paid to the safe, efficient and sustainable transport of the product. We do everything we can to ensure that the transport and handling of chemicals is risk-free and environmentally responsible; it is critically important for the industry’s image and reputation. Chemical companies must ensure the safety of people as well as the environment and the products that they

transport. This is achieved by maintaining comprehensive protective measures throughout the supply chain.

HCB: Other than sustainability, is there anything else that has to be kept in mind?

RP: Of course, sustainability and environmental awareness are fundamental principles throughout the chemical supply chain. Second to these, simplification of processes is our top priority. Clients in the chemical industry focus on the production of chemical goods and outsource related parts of the business such as tank containers and the respective service to competent partners like Trifleet.

Our clients need to be sure that their goods are being transported in the best suited tank, with the peace of mind that they are being supported by qualified technical and

operational staff. Of course, the chemical industry is also looking for ways to improve effectiveness and efficiencies throughout the supply chain. Supply chain costs are estimated to be 8 to 10 per cent of turnover and the industry is seeking professional and innovative partners to generate new ways to improve.

HCB: What does Trifleet do to keep up with industry demands?

RP: For us at Trifleet, it means that all our focus is on the client’s goods. Over the past three decades, we have gained a lot of industry expertise regarding compatibility of chemical products with tank containers as well as the technical and practical requirements for safe transport. We work alongside the chemical industry to invest in specialised tank containers for its products. We also provide advice, creative ideas and innovative equipment and materials. Today we have around 4,500 tanks that are specifically designed for the chemical industry and its wide range of products.

We offer efficient, worry-free tank container services. These services begin with the correct tank container and procedures, but also cover fleet management services, including maintenance and repair, all of which need to be available globally.

HCB: Given your multinational client base, do you feel you are big enough to serve this industry?

RP: Given that we are continuing to grow in this sector, we definitely think so. Today we are the largest privately owned and ownermanaged global tank container leasing company. We have approximately 15,000 tank containers and we are a global top five player in the industry. In 2018, we are extending our fleet with more than 2,000 new tank containers, which signifies our largest annual growth increase to date.

We are headquartered in Rotterdam, Netherlands but we also have offices in Houston, Singapore, Hamburg, Shanghai and Paris. We also have a dedicated team of agents in Italy, Brazil and South Africa. Being successful in this industry doesn’t just mean that you have a huge tank container fleet. It is also very important that we remain agile and personally committed to our clients. HCB www.trifleet.com

PASS IT ON

Of course, Konstantin has grown up watching his father successfully manage the company set up in the 1930s by Michael’s grandfather Wauter, who died too early at 60, and his friend Harri Kube, just as Michael did before him.

MANAGEMENT • AS LEADERSHIP OF KUBE & KUBENZ IS HANDED ON TO THE FOURTH GENERATION, THE LONG-TERM BENEFITS OF FAMILY OWNERSHIP ARE AS STRONG AS EVER

ATTRACTING AND RETAINING the right talent is a big issue across the chemical logistics industry these days – but it is less of a problem for family-owned businesses. As Michael Kubenz, third-generation leader of Kube & Kubenz, hands over to his son Konstantin after 39 years at the helm, HCB spoke to them both to find out what other advantages there are for firms with a built-in succession plan.

But not only has Michael been a role model to his son, the family-owned business model means he has also been a role model to the workforce. The structure, Michael says, makes it easier to establish a culture of safety and security, something that is particularly important in a company that is given the responsibility of handling dangerous goods on behalf of its customers. That culture filters down from the top and, in a close-knit organisation where the managing director is on first-name terms with many of the longserving drivers, it does not have far to go.

Michael Kubenz feels that larger logistics firms, for whom establishing this sort of strict safety culture is not so easy, are wary of getting into the chemicals business. Any incident involving hazardous chemicals could impact its business reputation elsewhere.

Furthermore, publicly owned companies need to show short-term results and quarterly

dividends to their shareholders; a familyowned business can think in the long term, with the aim of remaining sustainable through the generations.

EXPERIENCE ON HAND

So what has Konstantin learned at his father’s knee? “I have learned leadership skills,” he says. “When you are managing more than 350 people, you have to behave like a role model. You also have to be accessible for your staff –be there, and be a front-line leader.”

Being there for driver safety days, retirement parties and other events is very important from a management point of view, he says.

Running an international logistics company also means being confronted on a daily basis by all sorts of issues, so a similarly wide range of skills and knowledge

OPPOSITE: MICHAEL KUBENZ (TOP) AND HIS SON KONSTANTIN WILL WORK TOGETHER TO LEAD KUBE & KUBENZ FOR A FEW YEARS BEFORE MICHAEL TAKES A WELL-EARNED STEP BACK FROM DAILY OPERATIONS



is vital. “This was something I found very impressive when watching my father at work,” Konstantin says.

Age and experience also bring the ability to empathise with the workforce, something that can only be developed over time. In this regard, Konstantin is fortunate that he will have his father and grandfather on hand for advice as he takes over the leadership.

Michael has another way of putting it: “I’ve grown old with my drivers.” That also shows another advantage of the familyowned structure: drivers become part of that family and are more willing to stick around, although Michael admits that it is very difficult to find new drivers in Germany these days. Kube & Kubenz is hiring from Poland and also putting in place enhanced rates for drivers with long service with the company.

MAKE IT NEW SCHOOL

We hear a lot about the generational shift happening in industry these days, so what can the next generation bring to the leadership at Kube & Kubenz? Konstantin says he has already implemented some changes, including a roadmap for digitisation. He wants to engender a more participative leadership style, with decisions being made throughout the organisation and giving more freedom to the next level of management, with a strong focus on customer engagement. “The times have changed,” Michael admits; the business has to become more collaborative. It is also clear that the expectations of those young people coming into the workforce are different to those of their parents, and any company looking to recruit good people has to take this into account.

Konstantin has more work to do. “The company has changed over time but some processes are still ‘old school’,” he says. “We need to get rid of paper.” Customers and their trade associations are pushing for more technology and interfaces with customers’ IT systems. That means that a family-owned logistics firm has to look at its own business model. It will not be possible to deliver all those customer expectations from within and there are certain areas where start-ups

and IT specialists have a more efficient way of working.

Konstantin expects some big changes over the next three years. “We have to invest. The technology is out there – we don’t have to do it ourselves,” he says.

This is a big change, but for a company like Kube & Kubenz, the management of change is a constant focus, whatever that change relates to. And when it relates to IT, it means giving power to those within the company that will be early adopters and internal leaders to help ease the process. “It is not ‘if’ but ‘when’ and ‘how’,” Konstantin says. “We want to challenge our employees to participate in the process of change and help design their own future.”

And that is a big shift. Future success will not be all about quick top-to-bottom decision making – although there may be times when that is still appropriate – but about collaboration and devolved management.

CHANGE IN THE AIR

That is not to say that things haven’t changed radically during Michael’s four decades of leadership. When he started, communication happened by telex and cable and the arrival of fax machines in the 1980s was quite a revolution. In those days the haulage business was highly regulated, with fixed rates; nowadays it is a completely open market. Europe too has opened up; before the euro arrived, drivers had to be sent off with cash in different currencies and spent a lot of their time waiting at border controls.

In the days of manual reporting to clients, each customer had a separate system. It might be thought that automation has put an end to that but in fact each customer needs a separate interface to be able to communicate effectively, a situation Konstantin describes as “ridiculous”. This is very expensive and, he says, there is a need for neutral platforms so that, as Michael says, “everybody only has to develop one interface”.

There is a role for associations such as the European Petrochemical Association (EPCA) and the European Chemical Industry Council (Cefic) in the development of such platforms and the subject will be on the agenda at the European Chemical Transport Association’s

(ECTA) annual meeting in Düsseldorf, not far from Kube & Kubenz’s branch in Bergheim, in November. “There is a lot to do,” warns Konstantin. “It’s not as easy as everybody thinks.”

Maybe this is not such a bad time for Michael to be stepping back but, he says, he started the succession process with mixed feelings. “I’m giving up my life’s work,” he says. “But the advantage of a family business is that I can do that and remain proud that the next generation is taking over.” HCB www.kubekubenz.com

OPEN UP TO GAINS

ASSET OPTIMISATION • TANKCONTAINERFINDER IS ADAPTING ITS SYSTEMS AND TOOLS TO MAKE THE SUPPLY CHAIN COMFORTABLE WITH SHARING INFORMATION, WHICH IS VITAL TO REDUCE WASTE

TRUST – OR RATHER a lack of it – has been a sticking point in introducing digital services into the chemical supply chain, despite the obvious opportunities for increasing efficiency in asset utilisation. TankContainerFinder.com (TCF) has had to face that issue head-on if it is

to develop its matchmaking service for tank container operators and users.

In particular, TCF has experienced a reluctance on the part of its users to share location-based data, specifically the location of empty tank containers. To combat this, it has introduced an ‘availability module’, in which operators can share tank availability anonymously. “We have convinced many isotank operators to display their availability in an attempt to reduce the amount of empty repositioning worldwide,” says Léon de Bruin, co-founder of TCF.

Another concern that TCF faced is whether suppliers would feel comfortable displaying their prices on its platform. However, de Bruin notes, this has not been a barrier for most and a lot of industry players have been more than happy to display their prices. “I think it’s fair to say we have gained trust in the industry,” says de Bruin. “We are using that trust as a basis for future growth.”

WHERE TO NEXT

In the coming year, TCF aims to focus on more value-added services. “We are looking how to add extra value for our users on a day-to-day basis and are discussing with the team and partners how to place them on our roadmap,” says de Bruin. “We are looking at how implementing Blockchain technology and IoT/telematics can build a more sustainable, reliable and efficient supply chain. We are also working to provide a service where we connect depot cleaning and repair stations, work alongside transporting companies and provide insurance. Additionally, we want to help customers with their tendering processes, but that’s something for a further future.”

Those types of service are a natural extension of TCF’s original remit when it launched in 2017. Rather than merely existing to put operators and users together, it has been growing into a booking platform and has concentrated on creating a worldwide supply and demand network. By adapting its platform to allow users to see prices, availability, conditions and make bookings, TCF is becoming a one-stop shop in the tank container industry.

TCF is also working to optimise fleet utilisation as well as making use of continuous feedback loops where both the searcher and the tank container supplier help populate ‘jobs to be done’ on the company’s roadmap. “Our main focus here is to help create a more sustainable, transparent and efficient supply chain in the tank container industry,” says de Bruin.

The company is now focusing on optimisation of the booking process and consistently has the scaling up of development in mind. “We are also looking at ways to optimise the entire tank container supply chain by fulfilling our customers’ ‘jobs to be done’,” says de Bruin. Currently we are working with 2-3 weeks agile sprints with an aim to reduce these to 1-2 weeks burndown sprints.” HCB www.tankcontainerfinder.com

EMPTY TANKS REPRESENT A COST NOT JUST FOR OPERATORS BUT FOR THE SUPPLY CHAIN AS A WHOLE

THE NEW STANDARD

INCREASING VARIETY IN road fuel specifications and the ever-growing need to ensure they are kept free of contamination are challenging the standard transfer equipment in use at refineries and oil terminals.

Elaflex, one of the leading suppliers of petroleum hoses in Europe, has addressed this issue with the launch of its new Polypal Oil hose, specifically designed to cope with applications where gasoline fuel types and additives often change or may be unknown.

The Polypal Oil hose follows the established trend in the chemical industry, where universal hoses are preferred to those with specialised rubber linings, Elaflex says. The new hose is universally resistant with a UPE lining that is electrically conductive and suitable for all types of petroleumbased fuels, aromatics and fuel additives, incorporating a very low permeation of highly volatile fuel components.

ALL-ROUND PERFORMANCE

In order to manufacture environmentally friendly and efficient premium products, terminals have to constantly handle new or changing fuel qualities. Hose assemblies used at the terminal are therefore subjected to volatile strain due to changing amounts as well as new types of aromatics and additives. Some of the new compositions of gasoline, aromatics or additives may have an adverse

effect on the longevity of standard hoses. For decades, the ‘Yellow Band’ TW hoses from Elaflex have been the standard for bottom loading of road tankers with diesel, heating oil and gasoline but, after extensive field trials, Elaflex now recommends the new Polypal Oil hose as the standard for gasoline products.

Elaflex says its TW hose is still suitable for diesel and heating oils, even pure B100 biodiesel, and can be used in gasoline service where the aromatic content is less than 50 per cent and in applications where fuel qualities do not fluctuate considerably. Alternatively, Polypal Oil can be used as a universal hose for all kinds of fuels.

Polypal Oil has a working pressure of 16 bar and an operating temperature range from -30˚C to +100˚C, corresponding to the EN 12115 standard. It has a smooth, black ultra-high molecular weight polyethylene (UPE) lining, reinforced with textile braids and a galvanised steel helix. The cover is black chloroprene, resistant to oil, marked with a blue and white spiral. Both the lining and cover and electrically conductive, again in conformity with EN 12115. It is available ex stock in sizes DIN 50, 75 and 100. HCB

More information on the Polypal Oil hose is available on the Elaflex website, www.elaflex.de, or via the Elaflex hose configurator at https://hoseconfigurator.elaflex.de.

HOSES • PRODUCT TRANSFER EQUIPMENT NEEDS TO KEEP UP WITH DEVELOPMENTS IN FUEL QUALITIES; ELAFLEX IS PLAYING ITS PART WITH A NEW ‘ALLROUNDER’ HOSE

NAVIGATING CHANGE

be maintained. The right partner can help with the three key pillars needed to achieve this: distribution, supply chain management and financing.

is key. A partner with global supply chain expertise can also help to develop new markets, assessing the opportunity risks and advising on different regulations.

Having access to financing enhances a company’s ability to control its day-to-day running costs, buy in bulk and earn higher profit margins. Companies can further avoid bankruptcy risks by the support of external financing, and of course enhance competition and productivity by entering the international arena.

However, political instability, currency volatilities and a changing competitive landscape are all causing challenges for trade. Towards the end of last year, it was estimated that there was a $1.5tr trade deficit. However, companies need not be restricted to financial services available locally because there are far more financing alternatives that exist; a partner experienced in trade finance will be able to advise on the best solutions and take care of all the frequently complicated documentation.

GLOBAL SOLUTIONS

THE PETROCHEMICAL INDUSTRY is in a period of extreme transition. A decline in advantaged feedstock supplies from North America and the Middle East, coupled with a predicted slow-down in demand growth in emerging markets such as China, is putting margins at risk and calling into question capacity additions. Global market forces like the US-China trade war and NAFTA negotiations are all putting pressure on market players. In the coming years, all players will have to work much harder to hone their core capabilities and strategy. At the same time, however, high levels of customer service and the smooth day-to-day operations of export-import of products must

Distribution chains, like supply chains, can be complex and sensitive and, as industry players seek to grow into new markets, it becomes more important than ever to set up a robust and flexible strategy – one which must align with other elements of the supply chain, including logistics and financing. The right partner can support this sensitive balancing act to ensure efficiency and responsiveness and help to avoid many of the logistical issues and trade-related risks.

Petrochemical producers are acutely aware of the particular challenges to create the most responsive and competitive supply chains. With customers demanding more than ever before and tougher environmental regulations, it is imperative to create a cost-effective supply chain that will result in the best customer service and, ultimately, commercial success. An important part of this is finding the right channels, be it for additives, solvents, glycols, biofuels or other petroleum products. Additionally, organising the most efficient and reliable transport to ensure a smooth, timely and safe delivery

Shamrock believes that it is the blend of these three ingredients that support the growth and development of a sustainable and competitive business. The company’s understanding and experience of the European and global petrochemical market spans 15 years, during which it has built up intricate knowledge of supply chain management and trade finance solutions. Its team has truly global experience, working with customers in 40 countries across all continents, and can always offer its customers the most reliable channels for their product needs and customise logistics solutions to their specific business needs.

Shamrock offers financing solutions to support customers at any stage of the supply chain with better payment terms and lower costs. The company has a long-standing and reputable track record with leading financial institutions and always works with its customers to create better and more outlets for their products. Shamrock is the one-stop-shop for the petrochemicals industry. HCB www.shamrockoils.com

FINANCE • CÉLINE BOUTIER, MANAGING DIRECTOR OF SHAMROCK SHIPPING, EXPLAINS THE NEED FOR SHIPPERS TO FIND THE BEST SUPPLY CHAIN PARTNER AND CREATE A ROBUST STRATEGY FOR THE FUTURE

MAKE MINE MOUVEX

PUMPS • BUILDING A REPUTATION AS AN OEM SUPPLIER MEANS HAVING RELIABLE BRANDS ON HAND. CAB’S INDUSTRIES RECOMMENDS MOUVEX PUMPS FOR THAT REASON

PHILIPPE CABRILLON HAS, since 1986, been CEO of Cab’s Industries, a leading OEM for transport trucks in France. Based in Brie-Comte-Robert, some 40 km south-east of Paris, Cab’s Industries specialises in equipping vehicles for the transport of liquid and dry-bulk raw materials and finished food, chemical and petroleum products.

Cab’s Industries approach is based on investing in the success of its clients, which include many of the most well-known truck manufacturers in Europe. With that in mind, Cab’s Industries stocks all of its 12 facilities

in France with equipment that has been designed to ensure safe, reliable and efficient product transfer, whether the vehicle has been on the road for a decade or is fresh off the assembly line. Fully equipped test benches are deployed for the process of inspecting new or repaired equipment.

“We know the market because we are in front of our customers,” says Philippe Maisonneuve, general manager and sales manager for Cab’s Industries. “We hear what they tell us and work hard to meet their needs.”

RECOMMENDED LINE

Two of the more crucial pieces of equipment that are found on transport trucks are the pumps and compressors that are used to facilitate the critically important tasks of loading and unloading the vehicles. In this instance, Cabrillon is quite rigid in his thinking: Cab’s Industries recommends, first and foremost, Mouvex® pumps and compressors to its customers.

Founded in 1906, Mouvex is headquartered in Auxerre, France, and is a product brand of PSG®, a Dover company. Importantly, Mouvex is a highly regarded manufacturer of positive displacement pumps, screw compressors, hydraulic coolers and vane compressors for use in the refined fuels, oilfield, energy, food/sanitary, military, transport and chemical process industries.

“Mouvex is our partner, and an internationally recognized company known for the quality of its equipment for more than 100 years,” says Maisonneuve. “Mouvex is a pump and compressor expert, and Cab’s is a transportation expert, so that’s the reason why we are very complementary with each other. »

“Mouvex has nearly all of the products we need, while some of their competitors have only bulk products, or some have only liquid pumps. Mouvex has bulk compressors, pumps for hydrocarbons, pumps for chemicals, compressors for chemicals, hydraulic coolers. It’s a nice range with very good products. They are also compact in design and lightweight, which helps us comply with strict Euro6 regulations regarding transport size and weight.”

PUMP UP THE LIQUID

The Mouvex compressor model that Cab’s Industries puts on the most trucks is the B200 Flow Control Series Screw Compressor. The B200 can meet customer demands because it is compatible with all truck models and configurations and can be mounted to the vehicle through the power take-off (PTO) with no prop or drive shaft required.

The compressor is lightweight, easy to maintain and has an optimised flow path that lowers unloading times, with the availability of a flow-control check-and-relief valve (CRV) that helps to produce more consistent flow rates. All of the B200’s exterior components, including flanges and relief valve, are stainless steel for added protection against corrosion. If needed, the B200 can be fitted with a silencer if noise is an issue for the driver or his customers.

These features, along with its oil-free operation, make the B200 ideal for the transfer of a wide range of liquid products. The stainless steel design also makes the B200 a viable option for the transfer of corrosive liquid chemicals and solvents. The B200 can reach a wide range of flow rates up to 180 m3/h (793 gpm) at discharge pressures up to 2.5 bar (36 psig).

“We are selling more and more B200s because the customers know the benefits that come with buying a B200,” says Maisonneuve. “They save time because unloading is quicker, with low or zero maintenance and no spare parts to stock. That’s the reason we are selling more and more of the B200 product.”

If necessary, Cab’s Industries does recommend an alternative solution to the B200: Mouvex’s Enterprise Series vane compressors are suited for the discharge of

fluids that can be problematic for transfer pumps. The body and rotor of the Enterprise vane compressors are constructed of hardcoated cast iron that gives them the ability to withstand harsh operating conditions. They also feature an anti-corrosion coating on the compressor and CRV, along with stainless steel flanges. They are easy to disassemble and reassemble, while the blade can be inspected without it needing to be removed from the compressor. Flow rates range from 59 to 173 m3/h (260 to 762 gpm) at maximum discharge pressures of 2.5 bar (36 psig).

QUIETLY PUMPING

In terms of pumps, Cab’s Industries’ top seller is the CC8 Series rotary vane pump. Available to the truck market for more than a decade, the CC8 has a proven design and method of operation that is perfect for the transfer and handling of petroleum products such as gasoline, diesel, kerosene, heating oil, heavy oil, bitumen and biodiesel. The CC8 is compact and compatible with most truckmounting configurations; it offers quiet operation, a double-ended shaft that enables mounting in either direction depending on the preferred pump rotation, an integrated bypass valve, and ATEX certification that allows it to be used in explosive atmospheres.

“I think the CC8 is the best pump on the market because it has good flow, up to 60 to 65 m3 per hour (264 to 286 gpm) in most cases, and it can also go to 8 bars (116 psi) of

pressure,” says Maisonneuve. “I think the CC8 has more than 80 per cent of the French market, and it is also known in England and in Germany and in other countries because it’s a very good product.”

A GOOD REP

Over 30 years of operation, Cab’s Industries has successfully built a leading reputation in the truck market by putting the considerations of the customer at the forefront of its business model. Mouvex is one of the brands that has helped Cab’s Industries attain this exalted status. Because of the reliable, safe and costeffective operation of Mouvex compressors, pumps and other truck components, the company has become a first-choice solution among its extensive European customer base.

“At Cab’s Industries, we try to create a total solution for our customers,” says Maisonneuve. “In our business, reputation is very important, and we have worked very hard to build ours. That’s why we use Mouvex – we know we will have no risks to our reputation by using Mouvex products.” HCB

About the author: Christophe Jovani is the EMEA Marketing Communications Manager for Mouvex® and PSG® and can be reached at christophe.jovani@psgdover.com or +33 386 498 681. More information on the Mouvex and PSG brands can be found at www.mouvex.com or www.psgdover.com.

BIN THE BAG

FLEXIBAGS • SINGLE-USE PLASTIC BAGS ARE ON THE WAY OUT ALL OVER THE WORLD, SO WHY ARE SOME SHIPPERS STILL WEDDED TO THE IDEA OF USING THEM FOR BULK LIQUIDS?

IN 1966, YOUNG Benjamin Braddock, floundering around in his parents’ pool in the hot summer after graduation, was advised to “go into plastics”. It was not a bad idea at the time and, had Braddock been real instead of the character played by Dustin Hoffman in The Graduate, he might now have been happily retired after a fulfilling and profitable career in the business.

But now, more than fifty years later, humanity’s long-running love affair with polymers seems to be on the wane. In recent years, a number of countries have tried to stem the rising tide of the use of plastics –and the problems related to their disposal.

Charges or outright bans on lightweight

plastics shopping bags have been introduced in several countries around the world, starting in Bangladesh, which imposed a total ban in 2002 after serious flooding was blamed on Dhaka’s sewers being blocked by such bags.

A likely tipping point occurred in 2017, with the airing of the final episode of the BBC television series Blue Planet II, which highlighted the role of plastics pollution and microplastics in the world’s oceans in killing a wide range of marine life. This single programme has had a massive impact by raising awareness of plastics pollution around the world and led rapidly to plans to ban single-use plastics items.

HEADING FOR LANDFILL

So, if consumers are pushing for less packaging, why is it that bulk liquids shippers are increasingly wedded to singleuse flexibags – basically just big plastics bags – that are difficult to dispose of at the end of their very short life?

After all, shippers using smaller packagings have taken onboard the need to re-use, remanufacture and recycle their drums and IBCs; a global collection and recycling system exists, which often sees old packagings shredded and used to make pallets for the next generation of packagings.

That process fits with the idea of the ‘circular economy’ and helps shippers –not least chemical producers – meet their commitment to sustainability, something that is often a requirement imposed by their representative trade association, if not their customers.

But, with that focus on sustainability, it seems bizarre that some producers are making growing use of flexibags. These are essentially very large single-use plastics bags, with little possibility of re-use. Anecdotal evidence

suggests that only around 25 per cent of them go for recycling, with the rest sent to landfill or incineration. And the recycling route is becoming increasingly difficult, particularly since China imposed a ban on the import of used plastics material for recycling.

Flexibags also suffer regular leaks – one shipping line admitted to HCB that a failure rate of up to 10 per cent is expected, and even deemed acceptable. This is one reason why flexibags have never been accepted for the carriage of dangerous goods, although even more innocuous liquids can cause severe problems, particularly if a hard-toclean product leaks aboard a ship or across a main road, as has happened frequently in the past.

CIRCULAR ARGUMENT

And yet some chemical manufacturers continue to use flexibags, despite these shippers’ stated commitment to sustainability and the clear indication that flexibags cannot be regarded as a sustainable product. Indeed,

their use seems to be increasing, with forecasts suggesting the number of flexibag shipments will top one million in 2020.

The primary attraction of single-use flexibags, of course, is their relatively low cost. Disregarding the potential for leaks and the problems of disposal, that makes them very interesting for personnel within chemical companies charged with reducing the cost of shipping nonhazardous products.

The issue is that flexibags are only lightly regulated, certainly in comparison to alternative packaging methods. Flexibags compete directly with tank containers –more expensive certainly, but they last for 25 years or more. And at the end of that long life, owners must ensure that the tanks are properly recycled – and have that process transparent and documented.

A similar approach to flexibags would be for them to have an end-user certificate describing how the empty bag is to be disposed of; otherwise, how can a shipper that claims to be observing sustainability targets show that it is doing so in practice? How can contributing to plastics pollution in the seas and on land be seen as ‘sustainable’? HCB

THE WORLD IS BEGINNING TO WAKE UP TO THE PROBLEMS BEING CAUSED TO MARINE LIFE BY THE VOLUME OF PLASTICS POLLUTION IN THE OCEANS

NEWS BULLETIN

TANKS & LOGISTICS

HOYER WINS IN UK, IRELAND

Hoyer Petrolog UK has secured a five-year contract with Phillips 66 to distribute commercial and retail fuels from its Bramhall terminal. “This five-year agreement with Phillips 66 provides another important step in Petrolog achieving its strategic growth objectives in the fuels market,” says Allan Davison, operations director at Hoyer Petrolog UK.

Valero has also renewed its contract with Hoyer Petrolog to provide aircraft refuelling services at Dublin Airport. “The extension of this contract is excellent news for Hoyer and secures a strategically important piece of business within Ireland,” says Davison. “The contract involves refuelling planes during all hours of airport operation and involves 10 refuelling vehicles and 28 staff.”

www.hoyer-group.com

RENEWING SUTTONS

Global transport provider Suttons has updated its brand identity, replacing the familiar gold

laurel with chevrons and using a more modern font. The new branding is being rolled out across its existing assets as well as the new trucks and tank containers being bought in the current £25m investment programme.

“As a major logistics supplier to the chemicals industry, Suttons recognises that it needs to provide a service which supports the expectations of the industry,” says John Sutton, CEO of Suttons Group. “Although our strategy, investment plan and people development support this, we felt that the brand identity did not. Now, when our customers look at it, we hope that they will feel it portrays the right things about our strategy and vision, which is to use advanced information technology and assets to provide world class service levels to our customers globally.”

www.suttonsgroup.com

VTG UNDER ASSAULT

VTG AG has signed purchase agreements with Wascosa and Aves One concerning parts of the

Nacco Group; the move clears the way for VTG’s long-planned takeover of CIT Rail Holdings (Europe) SAS and its associated Nacco Group. Competition authorities in Germany and Austria had approved the takeover with the proviso that some 30 per cent of Nacco was first sold to a third party; those authorities have confirmed the eligibility of Wascosa and Aves One in the transaction.

The plan is for Wascosa to take over the railcar leasing business, including the workforce, and for Aves One to purchase the railcars. VTG now expects the Nacco acquisition to close in the second half of this year.

VTG has meanwhile released its half-year results, showing group revenues up 3 per cent at €513.8m and EBITDA up 8.3 per cent at €177.0m, absent a one-off charge for costs associated with the Nacco acquisition. “Our results for the first half of 2018 pick up where we left off with the positive development seen in recent quarters,” says chairman Dr Heiko Fischer. VTG reports rising utilisation both in its railcar and tank container sectors, with strong demand from the European chemical industry.

VTG continues to resist a takeover from minority shareholder Warwick Holding GmbH, an indirect subsidiary of funds advised by Morgan Stanley Infrastructure Inc. In a reasoned opinion published by the Executive Board and Supervisory Board in early September, VTG argued that the offer price of €53 per share does not reflect the fundamental value that VTG can generate as an independent company. “Thanks to its long-standing experience and high-level technical expertise, VTG is one of the market leaders and at the forefront of innovation in the European railcar leasing and rail logistics market. Due to an attractive market environment, the strengthening of the business model by the proposed acquisition of the CIT Rail Holdings (Europe) SAS, and the digitisation strategy

initiated by the company, VTG has excellent growth prospects,” the company says. It points out that analysts consider a target price of some €58.45 per share as being closer to the true value of the firm.

www.vtg.com

LNG FOR NIJHOF-WASSINK

Nijhof-Wassink has started to re-equip its fleet with LNG-fuelled tractor units, buying two Volvo FH units for its dry bulk operation. The LNG engines emit 20 per cent less carbon dioxide than equivalent diesel engines, despite Nijhof-Wassink already having a very young fleet of Euro6 tractors. The company says it intends to expand its LNG-fuelled fleet and, later, to move to bio-LNG, which will further reduce its emissions footprint.

Nijhof-Wassink is paying great attention to its carbon dioxide emissions, having introduced training for its drivers and advice from a team of behaviour-based safety (BBS) coaches. In the search for ever-lower emissions, it also uses rail and waterway transport where possible.

www.nijhof-wassink.com

FOOD FOR THOUGHT

Braid Logistics has added 50 new tank containers to its fleet, as part of its continual investment in its service capability.

Manufactured by CIMC in Nantong, China, the 26-m3 T11 tanks, like all Braid tank containers, are foodgrade standard. They will be

utilised for bulk liquid distribution in the service of food and drink industries in New Zealand, Australia, and south-east Asia. They represent the second of four batches that Braid will take in this year.

www.braidco.com

RATES ONLINE

Leschaco has introduced a new online freight rate portal. Instant Freight Quote (IFQ) is, the company says, the only such portal that can take dangerous goods into account when providing a rate offer.

In the first phase of development, IFQ provides port-to-port rates for full container loads (FCL) from northern Europe to the rest of the world and for less-than-container loads

(LCL) from Germany to the world. Quotes include costs in the port of loading and the usual sea freight surcharges. In this way, IFQ makes it easier for companies to quickly receive a freight rate offer, which can then be booked directly online.

Leschaco says it sees the chance to further establish itself as an experienced and reliable logistics partner worldwide, not only through the digitalisation of internal processes and interfaces to its customers, but also in the digitalisation of online pricing and the associated transparency on the global transport markets.

www.ifq.leschaco.com

ABBEY OPTS FOR LNG

Abbey Logistics has begun trialling Volvo’s new LNG-powered FM tractor unit, the first such gas-powered 6x2 tractor to be available in the UK. Abbey has previously trialled CNG and LNG 4x2 axle units, which produced “very positive results” compared to their diesel equivalents.

Volvo’s FM tractor units promise the same performance as diesel-engined cabs but with 20 per cent lower carbon dioxide emissions and lower fuel costs. “We are very excited to be the first UK tanker company to trial Volvo’s new 6x2 tractor,” says David Batty, Abbey’s fleet engineer. “I have been convinced of the potential benefits of gas technology in heavy haulage based on our extensive trials last year, and this new tractor has the potential to be a pivotal moment for us and the wider industry.”

www.abbeylogisticsgroup.com

THE FRENCH CONNECTION

CONFERENCE REPORT • WITH FECC’S ANNUAL CONGRESS

TAKING PLACE THIS YEAR IN NICE, DEVELOPMENTS IN THE FRENCH CHEMICAL DISTRIBUTION SECTOR WERE HIGH ON THE AGENDA

THE LUDICROUSLY OVERPRICED capital of the French Riviera, Nice this year played host to the European Association of Chemical Distributors’ (Fecc) 2018 Annual Congress. Staged this past June at the Hyatt Regency Nice Palais de la Méditerranée, the event kicked off with a welcoming speech by Fecc president Neville Prior before moving on to a joint presentation by Jean Mazères and Gilles Richard. Respectively, the vice-president and general secretary of the Union Française du Commerce Chimique (UFCC), they told

delegates that their organisation currently represents the interests of 66 French chemical distributors, five French chemical producers and eight associate members. In 2017, they continued, the French chemical distribution sector had a total headcount of around 3,300 and saw its combined turnover rise 8 per cent on the previous year to reach a value of approximately €2.9bn. Of this, €0.6bn came from export sales, which accounted for 22 per cent of total turnover, up on the 17 per cent commanded in 2012. In total, they reported, the sector operates 35 Seveso sites across France, with 70 per cent of UFCC members fully signed up to Responsible Care (RC). Meanwhile, 71 members are

ISO 9001/9002 certified and 21 ISO 14001 certified. Other certifications attained by UFCC members, they said, include inter alia ISO 22000, ISO 26000, ISO 45001 and OHSAS 18001.

NEW STRATEGY

Mazères and Richard then outlined the UFCC 2020 initiative. A new strategy voted in by members at the Association’s 2017 General Assembly, UFCC 2020 seeks to address various “important changes in chemical distribution” and the need for UFCC “to allocate dedicated resources” to help companies succeed in key growth markets such as cosmetics. Thus, UFCC has decided to “increase [its] expertise in life sciences issues” by hiring a suitably qualified and experienced chemical engineer; ensure better communication by hiring a communications and marketing officer; recruit new members for “better representativeness”; and “facilitate and improve exchanges” between members and the UFCC committees.

Indeed, the number of UFCC committees and working groups will now be expanded to include a social committee that will focus on relations with trade unions and “social regulations”; a sustainable development committee; a products and applications

committee; and a transport and logistics committee. Among other things, the UFCC 2020 initiative will also see the Association providing its members with enhanced regulatory analysis; undertaking collective advocacy at a national level; and offering companies legal consultations. Additionally, the Association will also develop specific tools for members, such as websites and documents, while offering training sessions on such matters as REACH, CLP, ADR, safety and the environment.

TARGETED THEMES

Gislene da Silva (below) of the French Pôle Parfum, Aromes, Senteurs et Saveurs (PASS) then took to the podium, explaining to delegates that in 2005 the country’s Interministerial Committee for Regional Development established a number of competitive clusters (pôles de compétitivité) These, she revealed, are intended to bring together firms, research laboratories and training institutions within a specific territory in order to “support innovation through collaborative products or services”.

While they are partially financed by the French government, these competitive clusters can also support their projects in a wide variety of areas by involving various partners, including the National Research Agency, Bpifrance and Caisse des Depots.

In total, there are currently 70 such clusters around France focused on such fields as food, health, aeronautics, IT, electronics and energy. Centred on Grasse, traditionally the capital of the world’s perfume industry, the PASS cluster represents 150 members covering four sectors: aromatics, cosmetics, food and “transversal services”. These sectors, she reported, command annual turnovers of, respectively, €2.7bn, €3.2bn, €350m and €75m while between them employing a total staff of around 12,600.

Among other things, PASS helps its members find specific partners with which to collaborate while developing tools, programmes and training sessions to help its members on both an economic and technological basis. This all falls under the clusters’ general remit to manage collaborative projects; improve employment

and skills; support the competitiveness of members; and minimise the environmental impact of players. Among other things, PASS, she revealed, has developed a Guide of Good Practices for the Eco Extraction of Plants while also developing a database concerning pesticide risks for essential oils.

GLOBAL GOALS

Sticking with environmental matters, Liam McCarroll, Univar’s sustainability coordinator, revealed that Univar has set itself six global goals for 2021 that focus on such “key areas of responsibility” as energy and emissions; resource use; responsible handling; safety; sustainable supply chains; and equality and diversity. “Our responsibilities are not news to any of us. However, sustainability does not end at our gates. With over 8,000 suppliers globally, our upstream stakeholders carry a greater potential to impact on our environment and society,” he told delegates.

By working to improve the situation beyond its own business, Univar, he explained, seeks to reduce both supply chain disruptions and reputational risks while also identifying opportunities to innovate products and

services. To engage players along the supply chain, the company has a number of tools at its disposal, including in-house supply chain assessment questionnaires; in-house supply chain auditing systems; a supplier code of conduct; third-party supply chain audits and assessments; and “synergistic relationships”.

SUPPLIER ASSESSMENTS

On the subject of risk-based supplier assessments, McCarroll explained that Univar has operated supplier assessments within Europe, the Middle East and Africa for some time now, expanding their scope in 2017 with a requirement to disclose further data on environmental and ethical matters.

Every one of Univar’s suppliers, he continued, is assessed and prioritised according to industry, risk-assessed geographic location, and acquired rights. At the same time, the company’s supplier audits focus in on such issues as environmental management; commitment to (and any breaches of) anti-trust, anti-bribery and corruption laws; compliance with ethical labour standards; health and safety; and business continuity plans. »

“As distributors, we must do the same for our customers. Just as we engage our suppliers to improve responsible business practice, our customers rightly expect the same from us,” he said. To do this, Univar “continues to share [its] actions and performance” through regular sustainability reports, customer questionnaires and its work with such organisations and initiatives as EcoVadis and Sedex.

Looking to the future, McCarroll informed delegates that Univar anticipates ever greater transparency and accountability; an increasing focus on innovation and collaboration; “acting beyond compliance as the norm”; a continued growth in the use of technology; and more frequent reporting. To address this, he asserted, distributors need to be proactive while taking action on material issues, reporting transparently and avoiding ‘greenwash’. “As distributors, our ability to achieve this success is based on three departments: internal sustainability; material supplier engagement; [and] broad stakeholder collaboration,” he said, warning that “today’s best practice will be tomorrow’s standards”.

RISING SALES

Dorothee Arns (below), executive director of Petrochemicals Europe, an industry sector of the European Chemical Industry Council (Cefic), then told delegates that between 2016 and 2030 world chemical sales are expected to rise from €3.4tr to €6.3tr. However, the EU’s slice of the pie looks set to drop over the period from 15.1 per cent to 12 per cent. In terms of current EU chemical sales, speciality chemicals, she revealed, account for 27.2 per cent; petrochemicals 25.9 per cent; polymers 21.6 per cent; consumer chemicals 13.6 per cent; and basic inorganics 11.7 per cent.

“Europe’s chemical excellence is based on a variety of value chains which originate from its steam cracker base and which are closely interlinked,” she said, explaining that there are currently some 20 companies that together operate more than 50 steam crackers within the 28 EU member states. Combined, these plants provide “homogenous geographic coverage” and direct employment for more than 300,000 people. Moreover, the sector contributes some €155bn to overall European GDP. An energy-intensive industry, more than 80 per cent of its production costs are related to oil and gas as feedstock and

energy. Similarly, the sector is also capitalintensive, with a typical steam cracker costing more than €1.5bn to construct.

While “95 per cent of all manufactured goods are based on petrochemicals”, the sector, she noted, is “highly exposed to international competition”. And while the oil price drop has brought some welcome relief, numerous structural challenges remain in Europe. Moreover, while “the eco footprint of Europe’s chemical industry has substantially improved” – between 1990 and 2014 the sector upped production by 80 per cent while cutting greenhouse gas emissions by a 60 per cent – numerous challenges and uncertainties still need to be addressed, including issues pertaining to the growing of bio-fuels in the context of competition from food.

RISING REGULATORY COST

At same time, the regulatory landscape is increasingly difficult, with Arns noting that the number of EU regulations in the field of health, safety and the environment alone rose from 940 in 2004 to 1,724 by 2012.

“Regulatory costs in Europe are steadily rising,” she said, pinpointing such “major milestones” as REACH (2007), CLP (2008), Seveso III (2012) and ETS Phase 3 (2013).

On top of this, there are also many question marks with regard to energy costs, the UK voting to leave the EU, and also US policy with regard to, among other things, trade and tariffs. At the same time, the sector is seeing a wide range of investments being made “everywhere outside Europe”, including the “emergence of the North American gas-based and China coal-based chemical industry advantage”. Summing up, Arns noted that while the EU petrochemical sector has many things going for it, such as a “large integrated domestic market with strong customer industry clusters”, it nonetheless has to contend with many negatives, including low population growth leading to low demand for chemicals in general. HCB

The second part of this report in next month’s HCB will cover such topics as developing successful supply chain partnerships within the pharma sphere and the various digital trends affecting the European chemical distribution sector. www.fecc.org

PROOF OF THE PUDDING

ACCIDENTS • OBSERVATION OF RESPONSIBLE CARE PRINCIPLES AND APPLICATION OF GOOD SAFETY MANAGEMENT CAN HELP REDUCE ACCIDENTS IN THE CHEMICAL SUPPLY CHAIN, CBA SHOWS

MOVING DANGEROUS GOODS might be thought of as a highly dangerous business but the fact is that, in the UK at least, it is remarkably safe, as two reports from the Chemical Business Association (CBA) show.

CBA members report a fall in the number of accidents in the chemical logistics sector, reaching an all-time low in 2017, despite making more than a million journeys to deliver some 4.5m tonnes of chemicals.

CBA’s Logistics Index reports on the health, safety, security and environmental performance of its members companies engaged in haulage, warehousing and tank farm operations. The report, now in its twelfth year, is based on data from 22 companies employing 3,022 people.

The number of reported accidents fell from 23 in 2016 to 17 last year; these accidents involve incapacity for more than three days – a stricter criterion that used in the official Reporting of Injuries, Diseases and Dangerous Occurrences (RIDDOR) regulations. Of the 17, 88 per cent resulted from a manual handling process or a slip, trip or fall. Two resulted in serious injury but none involved exposure to a harmful substance.

The lost time accident rate fell from 0.40 in 2016 to 2017.

There were four reported transport incidents, compared to just one in 2016, although none of these led to a release of product. This equates to a transport incident rate of 0.86 for 2017, up from 0.25 in 2016.

CBA notes that ‘transport incidents’ can include simple events such as mechanical breakdown or puncture repair.

CBA’s logistics members reported 20 enforcement actions in 2017, double the number in 2016. No Prohibition Notices or Improvement Notices were issued in relation to sites operated by CBA logistics members. There were 20 transport Prohibition Notices, of which ten required the infringement to be rectified immediately.

TAKING PROPER CARE

CBA has also reported on its members’ Responsible Care performance in 2017, which shows an increase in the number of accidents compared to 2016, although still within the long-term downward trend.

Andrew Beck, chairman of CBA’s Responsible Care Committee, says: “Accident levels have shown a year-on-year rise, though the long-term trend remains downward. It is also pleasing to note that transport incidents continue to fall despite the total tonnage delivered maintaining its historically high levels.”

In 2017, CBA member companies reported 33 accidents resulting in incapacity for more than three days, up from 25 accidents in 2016. One-third of the 2017 accidents resulted from a manual handling process or a slip, trip or fall, while eight involved exposure to a harmful substance. There were no fatalities during the year.

The number of transport incidents – which include any event that requires the attendance of the emergency services – fell from five in 2016 to just three last year. This is equivalent to 0.77 transport incidents for every million tonnes of product distributed.

CBA also collects data on the disposal of waste by its members. Last year, 11 per cent of special or hazardous waste was recycled, recovered or disposed of with energy recovery and only 5 per cent sent to landfill; 43 per cent of non-hazardous waste was recycled and 16 per cent went to landfill. HCB www.chemical.org.uk

THINGS ARE LOOKING UP

FINANCIALS • HALF-YEAR FIGURES FROM THE WORLD’S LEADING CHEMICAL DISTRIBUTORS REVEAL A LARGELY POSITIVE SNAPSHOT OF THE GLOBAL MARKETS

GERMANY’S BRENNTAG, THE world’s largest chemical distributor in terms of sales, has announced a second-quarter post-tax profit of €118.3m ($135m), an increase of 10.8 per cent on the €106.8m achieved this time last year. At the same time, the company’s sales rose 7.1 per cent year-on-year to €3.2bn from €3bn, while operating EBITDA grew by 4.8 per cent to reach €231.3m.

“We are pleased with the strong performance which is underpinned by broad-based organic growth and positive contributions from acquisitions leading to a double-digit increase in operating EBITDA,” says CEO Steven Holland (below). “Together

with the first quarter, this made for a solid first half of 2018 for us – with organic growth strongly outperforming the prior year.”

In terms of geography, the company reports that operations in its home territory of Europe, the Middle East and Africa (EMEA) “continued to perform well”, with sales climbing 6 per cent year-on-year to €1.4bn; operating gross profit 4.8 per cent to €293.5m; and operating EBITDA 8.6 per cent to €103m. “With another strong performance in almost all customer industries”, Brenntag North America, meanwhile, saw its sales rise 4.6 per cent over the period to €1.2bn concurrent with a 0.4 per cent increase in operating gross profit and a 1.3

per cent increase in operating EBITDA, which, respectively, came in at €281.4m and €108m.

Further south and “in an economic environment that remained challenging”, Brenntag Latin America “achieved results on a par with the prior-year period thanks to its broad regional footprint”. Nevertheless, regional sales dropped 4.4 per cent year-onyear to €195.4m while operating gross profit fell 7.7 per cent to €40.7m and operating EBITDA 10.3 per cent to €8.7m. That said, Asia Pacific pulled in some “excellent quarterly results”, confirming “that the segment is a promising growth region where Brenntag continues to deliver above average rates of increase”. Consequently, compared to 12 months ago, sales jumped 23.7 per cent to €351.7m, resulting in a 17 per cent increase in operating gross profit, which closed at €57.2m, and a 17.9 per cent increase in operating EBITDA, which hit €19.8m.

IMPROVED RESULTS

Also announcing second-quarter results, Univar, the world’s number two, posted a net income of $56.1m from total net sales worth almost $2.4bn. This compares favourably to respective prior-year figures of $31.3m and $2.2bn. “Our strategy is working, our global execution is improving,” says president and CEO David Jukes. “The investment in our sales force effectiveness is showing improved results across all of our regions during the second quarter and we continue to receive more product authorisations from our supplier partners, both of which position us well for future growth. We delivered strong growth in both the EMEA and Latin America regions and the pace of our US transformation continues to accelerate. Our entire company is energised to maintain our momentum as we enter the second half of the year.”

Indeed, in its native US net sales grew 10.0 per cent year-on-year to $1.3bn; gross profit 5.5 per cent to $290.8m; and adjusted EBITDA 5.9 per cent to $97.2m. In Canada, however, dampened demand from the agricultural sector offset otherwise healthy industrial chemicals growth. Thus, while gross profit rose by 2.1 per cent to $68.9m, net sales dropped 8.4 per cent over the period and adjusted EBITDA 5.2 per cent to $34.6m.

A rosier picture, though, emerged in the EMEA, where net sales increased 10.4 per cent year-on-year to $511.9m, leading to a 12.9 per cent increase in gross profit, which came to $118.2m. Simultaneously, adjusted EBITDA jumped 17.3 per cent over the period to $40.1m due, the company says, “to doubledigit growth in Focused Industries, favourable mix and improved sales force execution”. Univar’s Rest of World segment, on the other hand, was aided by a “strong performance in both Brazil and Mexico along with increasing profitability in Asia Pacific”. As such, it was able to finish the quarter with regional net sales of $100m, a gross profit of $22.6m and an adjusted EBITDA of $9.1m, representing respective year-on-year increases of 0.2 per cent, 22.2 per cent and 85.7 per cent.

IMPROVED MARKET ENVIRONMENT

Closing its third-quarter books, Nexeo Solutions clocked up a gross profit of $120.2m from sales and operating revenues worth just over $1bn. This marked gains of 17 per cent and 11 per cent on its respective prior-year figures of $102.7m and $942.7m. “The investments we have made in marketleading capability, combined with disciplined commercial execution and an improved market environment are yielding record results,” says president and CEO David Bradley. “Over the last 12 months we have delivered 17 per cent adjusted EBITDA growth, which is a direct reflection of the quality of our people and the strength of our proprietary operating system.”

Breaking this down, Nexeo notes that its Chemicals business upped its sales and operating revenues over the previous year’s quarter from $443.9m to $494.9m, primarily due to “a 12.9 per cent increase in average selling prices largely as a result of an inflationary pricing environment and increased specialty mix”. At the same time, gross profit went from $54.3m 12 months

ago to $64.9m as a result of “a favourable shift in product mix and strong commercial execution” combined with “the addition of new specialty suppliers”.

STRONG GROWTH IN ASIA

Meanwhile, Switzerland-headquartered DKSH, which describes itself as “the leading market expansion services provider with a focus on Asia”, reports that it completed the first six months of the year with a post-tax profit of SFr 97.5m ($98m), an increase of 4.5 per cent on the SFr 93.3m announced 12 months ago. Hand-in-hand with this, net sales rose 7.4 per cent year-on-year to reach SFr 5.7bn from SFr 5.3bn, although EBIT remained essentially stable at SFr 139.5m. In terms of chemical distribution, its Business Unit Performance Materials (BUPM) recorded “particularly strong growth in Thailand, the Philippines and India”. Resultantly, the BUPM was able to up its net sales by 5.8 per cent over the period to SFr 475.7m, while EBIT “stood 6.1 per cent above last year’s level” at SFr 39.7m.

“The three Business Units Healthcare, Performance Materials and Technology reported good results and increased

profitability,” says CEO Stefan P Butz. “DKSH, on a group level, developed its acquisition pipeline and strengthened its presence in New Zealand with the purchase of Davies Foods. We also further increased our strategic focus with [a] transaction in China.”

Back in the States, Hawkins kicked off its fiscal 2019 with a first-quarter net income of $9.1m, up from $5.8m 12 months ago, from sales totalling $149.8m, themselves up from $133.7m. “We are pleased that the momentum in our businesses that we saw building in the fourth quarter of fiscal 2018 continued into the first quarter of fiscal 2019,” says president and CEO Patrick Hawkins. “We see positive signs in each of our segments, with new business opportunities, price increases due to rising material costs taking hold and previouslymade investments paying off. As stated at the end of fiscal 2018, we believe we are well-positioned for fiscal 2019 earnings improvements.” HCB www.brenntag.com www.univar.com www.nexeosolutions.com www.dksh.com www.hawkinsinc.com

TRAINING COURSES

AITAC PO Box 146

Riddell’s Creek, VIC 3431, Australia

T (+61 3) 5428 6077 www.aitac.com.au

Sea Transport of Dangerous Goods

• November 12-13 – Tullamarine

Sea Transport of Dangerous Goods – Recertification

• November 14 – Tullamarine

Air Transport of Dangerous Goods

– Acceptance, Initial

• November 26-28 – Tullamarine

Air Transport of Dangerous Goods

– Recertification

• November 22 – Tullamarine

Dangerous Goods Driver Licence

• October 20-21 – Tullamarine

• November 17-18 – Tullamarine

• December 8-9 – Tullamarine

ALL MODES DANGEROUS GOODS TRAINING

8 Laurel Road Hatton Vale, QLD 4341, Australia

T (+61 7) 5411 4415

www.amdg.com.au

Dangerous Goods – Initial Air Acceptance

• October 23-25 – Melbourne

• November 13-15 – Brisbane

• November 20-22 – Melbourne

• November 20-22 – Sydney

• December 4-6 – Brisbane

• December 4-6 – Perth

Dangerous Goods by Sea –

Function-Specific, Initial

• November 7-8 – Brisbane

• November 12-13 – Melbourne

• November 26-27 – Perth

• December 17-18 – Sydney

ATLAS COMPLIANCE

89 Devonshire Drive

Timberlea, Nova Scotia B3T 2J6, Canada

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

Dangerous Goods by Air – Initial

• November 28-30 – Halifax

Dangerous Goods by Air –Refresher

• November 18 – Halifax

Dangerous Goods by Road –Initial

• November 26-27 – Halifax

Dangerous Goods by Road –Refresher

• October 19 – Halifax

• November 9 – Halifax

• November 23 – Halifax

BARRY TRAINING SERVICES

Sully Moors Road

Sully CF64 5RP, UK

T (+44 1446) 743 913

www.barrytrainingservices.co.uk

ADR – Initial

• October 22-26 – Barry

• December 10-14 – Barry

ADR – Refresher

• October 15-17 – Barry

• December 3-5 – Barry

BUREAU OF DANGEROUS GOODS

4 Corporate Drive, Bldg. 4, Suite D Cranbury, NJ 08512, USA T (+1 609) 860 0300

www.bureaudg.com

49 CFR 2-Day Initial

• October 22-23 – Cranbury

• November 12-13 – Cranbury

49 CFR 1-Day Recurrent

• November 6 – Cranbury

49 CFR and IATA Initial

• October 22-25 – Cranbury

• November 12-15 – Cranbury

49 CFR and IATA Recurrent

• November 6-7 – Cranbury

CAMEON

PO Box 17345 Edinburgh EH12 1DJ, UK

T (+44 131) 334 1929

www.cameon.com

Dangerous Goods Safety Adviser (DGSA)

• November 12-16 – Manchester

Dangerous Goods by Air

• January 14-16 – Manchester

Dangerous Goods by Air –Revalidation

• February 8 – Manchester

Dangerous Goods by Road and Sea

• February 5-7 – Manchester

Dangerous Goods by Road –Upgrade

• January 17 – Manchester

Dangerous Goods by Sea –Upgrade

• January 18 – Manchester

Dangerous Goods Safety Adviser

• February 25-March 1 –Manchester

CARGO TRAINING INTERNATIONAL PO Box 176 Shepperton TW17 8WP, UK T (+44 1932) 769682

P O Box 580026 Houston, TX 77258-0026, USA T (+1 281) 333 4672

www.cargotraining.com

Dangerous Goods by Air – ICAO (full course)

• October 22-24 – Charleston

• October 29-31 – Heathrow

• November 5-7 – Chicago

• November 12-14 – Manchester

• November 15-17 – Newcastle

• December 3-5 – Dallas

• December 3-5 – Heathrow

Dangerous Goods by Road – ADR (full course)

• October 29-31 – Birmingham, UK

• November 5-7 – Manchester

Dangerous Goods by Road –Revalidation

• October 30-31 – Birmingham, UK

• November 6-7 – Manchester

Dangerous Goods by Sea (IMDG)

• October 25-26 – Charleston

• November 1-2 – Birmingham, UK

• November 8-9 – Chicago

• November 8-9 – Manchester

• December 13-14 – Houston

IMDG – Sea – Revalidation

• October 26 – Charleston

• November 9 – Chicago

• December 14 – Houston

DOT 49 CFR - Full Course

• October 18-19 – Dallas

• December 6-7 – Dallas

• December 13-14 – Houston

Lithium Batteries by Air

• November 19 – Heathrow

Lithium Batteries by Road

• November 20 – Heathrow

Dangerous Goods Safety Adviser

• November 12-16 – Heathrow

• November 12-16 – Manchester

Dangerous Goods Safety Adviser (Refresher)

• November 14-16 – Heathrow

• November 14-16 – Manchester

Radioactive Materials by Air (full course)

• November 22-23 – Heathrow

Radioactive Materials by Air –Revalidation

• November 23 – Heathrow

CHEMICAL HAZARDS

COMMUNICATION SOCIETY PO Box 899 Oxford OX1 9QG, UK T (+44 333) 210 2427 www.chcs.org.uk

EU Classification for Supply –Substances

• October 30 – London

EU Classification for Supply –Mixtures

• October 31 – London

EU Labelling for Supply

• October 31 – London

Advanced preparation of SDSs

• November 6 – London Risk Characterisation and the Chemical Safety Report

• December 12 – Manchester

The Extended SDS –Understanding Exposure Scenarios

• December 13 – Manchester

DANGEROUS GOODS OF AMERICA

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

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

Initial IATA & HMR Air

• November 5-7 – Doral

Recurrent IATA & HMR

• November 13 – Doral

IMDG Code & HMR Ocean

• November 12 – Doral

DANGEROUS GOODS ADVISORY COUNCIL

7501 Greenway Center Drive, Suite 760

Greenbelt, MD 20770, USA

T (+1 202) 289 4550 www.dgac.org

Multi-Modal Transportation –Initial

• December 3-7 – Orlando

Multi-Modal Transportation –Recurrent

• October 25-26 – Arlington, VA

• December 10-11 – Orlando

DANGO TRAINING SERVICES

169 Affric Road

Glenrothes KY7 6XA, UK

T (+44 1592) 748234

www.dangerousgoodstrainingdts. co.uk

Dangerous Goods by Air

• October 22-24 – Aberdeen

• November 5-7 – Aberdeen

• November 12-14 – Aberdeen

• November 26-28 – Aberdeen

• December 3-5 – Aberdeen

Dangerous Goods by Sea

• October 25-26 – Aberdeen

• November 8-9 – Aberdeen

• November 15-16 – Aberdeen

• November 29-30 – Aberdeen

• December 6-7 – Aberdeen

FREMANTLE TRAINING & TRANSPORT

Rathmore Lodge Rathmore Road

Torquay, Devon TQ2 6NY, UK

T (+44 1803) 293344

www.fremantletraining.co.uk

ADR Driver Training

• November 12-16 – Bristol

• November 19-23 – Plymouth

GLOBAL TRANSPORT TRAINING

54 Norristown Road

Blue Bell, PA 19422, USA

T (+1 215) 283 0983 www.gttstraining.com

Multi-Modal - IATA/IMDG/DOT 49 CFR – Initial

• October 22-26 – Dallas

• October 29-Nov 2 – Cincinnati

• October 29-Nov 2 –Philadelphia

• November 5-9 – Chicago

• November 5-9 – San Francisco

• November 12-16 – Houston

• November 12-16 – Fairfax, VA

• November 26-30 – Atlanta

• November 26-30 – Portland, OR

• December 3-7 – Los Angeles

• December 3-7 – Newark

HAZMATEAM

12 Kimball Hill Road Hudson, NH 03051-3915, USA T (+1 603) 882 1112 www.hazmateam.com

US DOT 49 CFR Ground Transportation – Initial

• November 5-7 – Hudson

US DOT 49 CFR Ground Transportation – Intermediate Refresher

• December 3-4 – Hudson

US DOT 49 CFR Ground Transportation – Advanced Refresher

• November 1 – Hudson

DOT Manifesting and Function Specific (49 CFR) Ground Transportation

• October 18 – Hudson

International Air Shipping –Initial

• December 11-13 – Hudson International Air Shipping –Refresher

• November 28-29 – Hudson

Water Transportation of Dangerous Goods (IMDG) –Refresher

• December 17 – Hudson Hazard Communication/GHS

• October 29 – Hudson Incident Command

• December 6 – Hudson

OSHA Emergency Response Operations – Initial/Refresher

• November 9 – Hudson

• December 18 – Hudson

OSHA Emergency Response Technician – Initial

• November 12-14 – Hudson

OSHA/EPA Emergency Response

– Initial

• November 12-16 – Hudson

Confined Space Entrant/ Attendant

• October 23 – Hudson

Confined Space Rescue

• October 24 – Hudson

HAZMAT TRAINING SCHOOL

SINGAPORE

146A Changi Road Singapore 419726

T (+65) 6542 5539 www.haz-mat-training.com

IATA Dangerous Goods Regulations (Initial)

• November 19-23 – Singapore

IATA Dangerous Goods Regulations (Recurrent)

• October 25-26 – Singapore

• November 22-23 – Singapore

• December 6-7 – Singapore

IATA Dangerous Goods Regulations (Awareness)

• November 19 – Singapore

IMDG Code Dangerous Goods By Sea

• October 23-24 – Singapore

• December 4-5 – Singapore

Chemical Safety Awareness

• November 15 – Singapore SCDF Hazmat Transport Driver Permit

• November 14 – Singapore

• December 3 – Singapore

ICC COMPLIANCE CENTER 2150 Liberty Drive Niagara Falls, NY 14304, USA

T (+1 888) 442 9628 88 Lindsay Avenue Dorval, QC H9P 2T8, Canada

T (+1 888) 977 4834 www.thecompliancecenter.com

Shipping Dangerous Goods by Ground in Canada: 2-Day Initial

• October 16-17 – Toronto

Shipping Dangerous Goods by Ground in Canada: 1-Day Refresher

• October 23 – Toronto

• December 11 – Toronto

Shipping Dangerous Goods by Ground in Canada: 1-Day Initial/ Refresher

• November 20 – Vancouver

Shipping Dangerous Goods by Ground in Canada: 1/2-Day Drivers & Handlers

• November 5 – Toronto

Shipping Dangerous Goods by Air: Initial

• November 13-15 – Toronto

• November 21 – Vancouver

• December 4-6 – Montreal

Shipping Dangerous Goods by Air: Refresher

• October 24 – Toronto

• December 12 – Toronto

JOHN GERRISH & ASSOCIATES

500 McCormick Drive Glen Burnie, MD 21061, USA

T (+1 410) 768 8356

www.jgatraining.com

Hazardous Materials in Ground Transportation (Initial)

• November 12-13 – Glen Burnie

Ground Transportation – 49CFR (Recurrent)

• December 3 – Glen Burnie

Hazardous Materials in Ground and Air Transportation

• November 12-14 – Glen Burnie

• December 3-4 – Glen Burnie

Hazardous Materials in Ground and Ocean Transportation

• December 3-5 – Glen Burnie

Hazardous Materials in Ground, Air and Ocean Transportation

• December 3-5 – Glen Burnie Air Force Manual (AFMAN 24-204)

• October 19 – Glen Burnie

• November 15 – Glen Burnie

• December 6 – Glen Burnie

Driver’s Hazmat (Non-CDL Endorsement)

• December 31 – Glen Burnie

General Awareness of Hazardous Materials in Transportation

• December 31 – Glen Burnie

Radioactive Materials in Transportation

• December 31 – Glen Burnie

PETER EAST ASSOCIATES

504 Centennial Park Centennial Avenue

Elstree, Herts WD6 3FG, UK

T (+44 20) 8953 6721

www.petereast.com

Carriage of Dangerous Goods by Air – Certification

• October 29-31 – Dublin

• November 5-7 – Heathrow

• November 12-14 – Luton

• November 19-21 –Southampton

• December 3-5 – Heathrow

• December 10-12 – Stansted

Carriage of Dangerous Goods by Air – Revalidation

• November 8 – Heathrow

• November 15-16 – Luton

• November 22-23 –Southampton

• December 6-7 – Heathrow

• December 13-14 – Stansted

Carriage of Dangerous Goods by Road & Sea

• October 22-24 – Southampton

• November 5-7 – Manchester

• November 12-14 – Heathrow

• December 3-5 – Stansted

Carriage of Diagnostic & Infectious Substances by Air

• November 13 – Elstree

Carriage of Lithium Batteries by Air, Road & Sea

• November 8-9 – Heathrow

• December 10-11 – Elstree

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

• November 5-7 – Elstree

Dangerous Goods Regulations Update

• October 30 – Heathrow

• November 9 – Northampton

• November 15 – Manchester

• November 23 – Southampton

• November 29 – Glasgow

• November 30 – Heathrow

• December 6 – Stansted

• December 7 – Dublin

• December 13 – Luton

• December 14 – East Midlands

Dangerous Goods Safety Adviser

• November 12-16 – Heathrow

• November 12-16 – Manchester

R-A SPECIALISTS INC

45 Clinton Avenue Valley Stream, NY 11580-6024, USA

T (+1 516) 593 0395

www.r-a-specialists.com

Dangerous Goods by Air – Initial

• December 4-6 – Valley Stream

Dangerous Goods by Air –Recurrent

• November 14 – Valley Stream

Dangerous Goods by Ocean –Recurrent

• November 7 – Valley Stream

ROADSAFE EUROPE Unit 006, Solent Business Centre Millbrook Road West Southampton SO15 0HW, UK

T (+44 23) 8070 2576

www.roadsafeeurope.com

ADR Initial

• October 22-26 – Southampton

• November 19-23 –Southampton

• December 10-14 – Southampton

ADR Refresher

• October 31-Nov 2 – Southampton

• December 3-5 – Southampton

Dangerous Goods Safety Adviser

• November 12-16 – Southampton

SAF-T-PAK 17827 – 111 Avenue

Edmonton, AB T5S 2X3, Canada 7466 Candlewood Road, Suite E Hanover, MD 21076, USA T (+1 800) 814 7484 www.saftpak.com

Shipping Division 6.2 Infectious Substances

• October 23 – Long Island, NY

• October 24 – Albany

• October 24 – Raleigh

• October 30 – Hartford

• November 1 – Cleveland

• November 21 – Atlanta

• December 13 – Frederick, ND

SAFEWARE QUASAR

9 Langley House

Wheatcroft Business Mark Landmere Lane, Edwalton Nottingham NG12 4DG, UK T (+44 115) 965 1888 www.safeware-int.com Transport of Dangerous Goods Awareness

• November 7 – Nottingham EU Chemical Regulatory Compliance in a Nutshell

• November 6 – Nottingham Authoring Safety Data Sheets

• November 29 – Nottingham

TRAININGTEAM

12 Gleneagles Court, Brighton Road

Crawley, West Sussex RH10 6AD, UK T (+44 1293) 536943

www.trainingteam.co.uk

Dangerous Goods by Air (Initial)

• October 22-24 – East Midlands

• October 22-24 – Heathrow

• November 5-7 – Manchester

• November 12-14 – Gatwick

• November 19-21 – East Midlands

• November 19-21 – Heathrow

• December 3-5 – Gatwick

• December 3-5 – Manchester

• December 10-12 – Heathrow

Dangerous Goods by Sea –‘Top-Up’

• November 8 – Manchester

• November 22 – East Midlands

• November 22 – Heathrow

• December 6 – Gatwick

• December 6 – Manchester

• December 13 – Heathrow

Radioactive Materials by Air

• October 25-26 – Heathrow

CONFERENCE DIARY

RIPA Annual Conference

OCTOBER

EPCA Annual Meeting

OCTOBER 7-10, VIENNA

52nd annual meeting of the European Petrochemical Association www.epca.eu

Lithium Battery Workshop

OCTOBER 9-10, BANGKOK

Eighth IATA workshop on lithium battery regulations www.iata.org/events/Pages/lb-workshop.aspx

Oil & Non Oil 2018

OCTOBER 9-11, VERONA

Trade show on fuel and non-oil storage and distribution in Italy and Europe www.oilnonoil.it

Oil & Gas East Africa

OCTOBER 11-13, DAR ES SALAAM

Fourth exhibition for the oil and gas sectors in Tanzania www.expogr.com/tanzania/oilgas/

World LNG Series: Asia Pacific Summit

OCTOBER 16-19, SINGAPORE

Tenth annual meeting for LNG buyers and sellers http://asiapacific.cwclng.com/

International Conference on Flat Bottom Tanks

OCTOBER 17-18, MUNICH

Meeting on technical and regulatory changes at tank storage facilities. www.tuev-sued.de/academy/

FFA 2018

OCTOBER 18-19, SHANGHAI

Fifth annual conference on floating energy systems www.ffa-annual.com/indexen.html

DGAC

OCTOBER 22-24, ALEXANDRA, VA

Annual conference of the Dangerous Goods Advisory Council www.dgac.org/dgac-40th-annual-summit-andexposition-dates

IPANA Annual Conference

OCTOBER 23-25, HOUSTON

Annual meeting of the Industrial Packaging Alliance of North America www.industrialpackaging.org/#events

OCTOBER 24-26, HOUSTON

77th annual meeting of the Reusable Industrial Packaging Association www.reusablepackaging.org/event/fallconference-2/

LNGgc

OCTOBER 29-31, LONDON

Annual conference on LNG shipping and trade https://energy.knect365.com/lnggc-london/

Gas Asia Summit

OCTOBER 31-NOV 1, SINGAPORE Conference and exhibition, incorporating seminar on small and mid-scale LNG in Asia-Pacific www.gasasiasummit.com

NOVEMBER

Tank Truck Week

NOVEMBER 5-7, NASHVILLE

National Tank Truck Carriers’ (NTTC)

Annual Tank Truck Show & Maintenance Seminar www.tanktruck.org/events/events-detailview/2018-tank-truck-week

Intermodal Europe

NOVEMBER 6-8, ROTTERDAM

Annual trade show and conference for the container, transport and logistics industry www.intermodal-events.com

European Autumn Gas Conference

NOVEMBER 7-9, BERLIN

33rd annual conference on Europe’s position in the global natural gas/LNG industry www.theeagc.com

APLA Annual Meeting

NOVEMBER 10-13, CANCUN

38th annual Latin American petrochemical conference www.apla.com.ar/en/

LogiChem US

NOVEMBER 12-13, PHILADELPHIA

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

ADIPEC

NOVEMBER 12-15, ABU DHABI

34th annual Abu Dhabi International Petroleum Exhibition & Conference www.adipec.com

all4pack

NOVEMBER 12-15, PARIS

Biennial trade fair for the packaging and packaging machinery industries, incorporating Emballage www.all4pack.fr

NACD Annual Meeting

NOVEMBER 12-15, CARLSBAD, CA

47th Annual Meeting of the National Association of Chemical Distributors www.nacd.com/meetings/am/2018-annualmeeting/

Opslagtanks

NOVEMBER 14-15, SPIJKENISSE

Dutch-language conference on storage tank and terminal safety in the ARA port area http://iir.nl/events/opslagtanks/

Petrochemical Supply Chain and Logistics

NOVEMBER 15-16, HOUSTON

Conference on optimising polymer and liquid petrochemical supply chains www.petchem-update.com/petrochemicalsupplychain/

Oil Terminal 2018

NOVEMBER 22-23, ST PETERSBURG

12th oil terminal congress and exhibition www.oilterminal.org/en

GPCA Forum

NOVEMBER 26-28, DUBAI

13th annual meeting of the Gulf Petrochemicals & Chemicals Association www.gpcaforum.net

ECTA 2018

NOVEMBER 29, DÜSSELDORF

Annual meeting of the European Chemical Transport Association www.ecta.com/event-2802705

EEMUA Storage Tanks Seminar

NOVEMBER 29, LONDON

Annual EEMUA seminar to address issues with storage tanks www.eemua.org/tni/Calendar/Events/EEMUAAnnual-Storage-18.aspx

INCIDENT LOG

ROAD/RAIL/AIR INCIDENTS

Date Location Vehicle Type Substance Details Source

12/6/18 Duttapukur, road tanker diesel Road tanker overturned, caught fire at fuel station after skidding off road; one person in cab was trapped, The W Bengal, India died in fire; only hand-held extinguishers, sand available to fight fire; fire crews prevented blaze spreading Telegraph

13/6/18 nr Sulphur Springs, road tanker gasoline Tyre blowout caused sparks that ignited tank truck’s gasoline cargo on Highway 19/24; initial reports spoke Paris Texas, US of explosion; driver uninjured; road closed for some time to allow for repairs Extra

14/6/18 Osogbo, road tanker gasoline Road tanker with 33,000 litres gasoline caught fire in fuel station; ten fuel pumps at facility caught fire, Nigerian Osun, Nigeria prompting employees, drivers to flee; nearby businesses also evacuated; cause of ignition unknown Tribune

15/6/18 Kharghar, road tanker asphalt Road tanker with asphalt collided with chemical tanker near toll plaza on Sion-Panvel highway; huge spill Times of Maharashtra, India of molten asphalt, blocking two lanes; police blamed negligence on part of several drivers, poor lighting India

16/6/18 Weber City, road tanker vapours Tank truck exploded during inspection, repair at unidentified facility; two workers injured in blast; fire chief WCYB Virginia, US said vapours in tank ignited, presumably due to hot work on tank

17/6/18 Busesa, road tankers gasoline Nile Gaz tanker overturned on Iganga-Bugiri highway; while fuel was being transferred to two other tankers, Daily Iganga, Uganda fire broke out when one driver started his engine; locals collecting spilt fuel were caught in fire, seven died Monitor

17/6/18 Princeton, freight train propane 23 cars of 98-car CSX train, including five propane tank cars, derailed; at least one propane tank on fire, with Courier Indiana, US locals reporting explosion; one-mile evacuation zone imposed; crews allowed fire to burn out; no injuries & Press

18/6/18 Kuala Pilah, road tanker diesel Road tanker with 20,000 litres diesel overturned into ravine after accident with car; no serious injuries; some Bernama Sembilan, Malaysia diesel spilled to river; DOE personnel on site while remaining diesel was transferred

19/6/18 Chikkamagaluru, road tanker LPG Bullet tanker overturned on highway after driver lost control; tanker exploded, spreading fire that destroyed Times of Karnataka, India five homes nearby; one person reported killed; driver, cleaner badly injured; other residents evacuated India

19/6/18 Memphis, truck titanium Truck carrying 39,000 lb (17.7 t) TDO caught fire on I-40, cause unknown; hazmat crews despatched as WMC Tennessee, US dioxide smoke billowed from truck, though road remained open during response; no injuries reported

21/6/18 Mogadore, rail tank car butadiene Leak reported from rail tank car delivering butadiene to Omnova Solutions plant; hazmat responders found ABC Ohio, US loose valve, replaced leaking seal; nearby residents evacuated; no injuries reported

22/6/18 nr Doon, freight train crude oil 33-car BNSF freight train with crude oil from Alberta derailed, likely due to track being washed out by The Iowa, US heavy rain; substantial spill of oil to swollen Rock River; communities downstream alerted to spill Gazette

25/6/18 nr Collinsville, truck ammonium Truck carrying ammonium nitrate crashed, overturned, cause unknown; driver airlifted to hospital with spinal Daily Qld, Australia nitrate injury; 2-km exclusion zone imposed while responders dealt with potentially explosive spill of AN Mercury

27/6/18 Talbot Lake, road tanker diesel, Fire broke out in B-double on Highway 16, cause unknown; fire crews decided to allow fire to burn rather Fitzhugh Alberta, Canada gasoline than risk run-off into nearby lake; road closed in both directions, with no detour available

27/6/18 Vankayalapadu, road tanker gasoline Road tanker overturned on HH-16 in Guntur district, reportedly after driver fell asleep at the wheel; cargo of The Hans AP, India 10,000 litres gasoline spilled to road; fire crews laid foam blanket on spill; driver, cleaner both hurt

27/6/18 East Finley, road tankers diesel, acid Fire broke out during refuelling of frack trucks at CNX well pad; fire destroyed seven frack trucks, tanker ObserverPennsylvania, US with diesel, another tanker with unspecified acid; 4,000 gal (15 m3) diesel burned; several small explosions Reporter

28/6/18 Yingshang county, road tanker gasoline Coal truck ran into rear of fuel tanker stopped at light, causing spill; leaking gasoline ignited, spreading fire SCMP Anhui, China to nearby homes; eight killed, mostly residents, four others injured; local authorities investigating

28/6/18 Lagos, road tanker gasoline Fuel tanker crashed on Otedola bridge on Lagos-Ibadan expressway after brake failure; fire destroyed dozens Reuters Nigeria of vehicles; at least 12 people killed, many more injured

29/6/18 Mallam Karo, road tanker kerosene Conoil tanker was in head-on collision with truck on Minna-Suleja Road; tanker exploded, spreading fire to Info Niger, Nigeria truck; five people hurt but no fatalities; police blamed speeding on part of one or both drivers Nigeria

30/6/18 Brahmanbaria, freight train oil Nine cars of oil train from Dhaka to Chittagong derailed near Brahmanbaria station, spilling unknown volume New Age Bangladesh of oil along tracks; Bangladesh Railway said spill was quickly cleaned up and traffic resumed within hours

1/7/18 Mangalagiri, road tanker sulphuric Road tanker with 19 t concentrated sulphuric acid heading to Chennai port hit pole, overturned after brakes The Hans AP, India acid failed; responders diverted traffic away from spilling acid, applied sand to prevent spread; police investigating

1/7/18 Linden, road tanker gasoline Tanker driver was engulfed in flames, died later in hospital, when fire broke out while he was trying to transfer Stabroek Guyana gasoline from broken down tanker to another vehicle; pump malfunctioned during transfer, leading to spill News

3/7/18 Portland, rail tank car toluene Tank car found to be leaking toluene at rail yard in Northwest Portland; nearby residents advised to shelter KATU Oregon, US in place, nearby highway closed during response; no injuries reported

ROAD/RAIL/AIR INCIDENTS (CONTINUED)

Date Location Vehicle type Substance Details Source

5/7/18 Catworth, truck sulphuric Some 800 litres sulphuric acid leaked from truck (probably from IBC) in layby on A14; responders diluted Cambs Cambridgeshire, UK acid spill with water (!) with assistance of Environment Agency; road partly closed during response, cleanup Live.com

9/7/18 Chittagong, truck LPG Three people riding in ‘mini truck’ were killed when gas cylinder (possibly fuel tank) exploded; motorbike UNB Bangladesh was caught up in fire, its three (!) passenger were all injured

9/7/18 Bahawalpur, road tanker gasoline Police were alerted to gasoline gushing from tanker driving on road near toll plaza; police stopped tanker, Urdu Punjab, Pakistan found broken seal on pipe; response managed to prevent fuel from spilling to Sutlej River Point

9/7/18 Lake county, road tanker gasoline Tank truck collided with SUV on M-37/US 10, causing spillage of gasoline cargo; tanker driver thrown from 9&10 Michigan, US wreck; nearby evacuation advised; remaining gasoline was transferred before wreck could be righted News

9/7/18 Gweru, road tanker diesel Road tanker with 30,000 litres diesel rolled over on roundabout; locals gathered to collect fuel before fire ZBC Midlands, Zimbabwe crews arrived to douse spill with water; no fire or injuries reported

10/7/18 Orhangazi, road tanker methanol Road tanker with 27 tonnes methanol overturned; tanker ruptured in several places; leaking methanol ignited; Hurriyet Bursa, Turkey road closed in case of explosion; driver injured jumping from cab

11/7/18 Sanandaj, road tanker fuel Road tanker with unspecified fuel ran into back of bus that had stopped to pick up passengers; tanker burst MNA Kurdistan, Iran into flames; at least 27 people killed, many other injured

12/7/18 Whangarei, road tanker sulphur 44 km-long spill of liquid sulphur from tanker from Marsden Point refinery was caused by failed weld in tank; NZ New Zealand driver failed to spot leak until he stopped at lights; spill was washed off; no action to be taken against driver Herald

12/7/18 nr Anderson, road tanker chemicals Tank truck with unspecified flammable chemicals crashed on I-85 after collision with second vehicle; road Indept’t S Carolina, US was closed, one-mile evacuation zone imposed due to fear of explosion; tanker caught fire immediately Mail

13/7/18 Carbon county, road tanker crude oil Double tanker crashed on Route 6, spilling some 6,000 gal (22.7 m3) waxy crude from Uintah Basin to road, KUER Utah, US Price River; second tank rolled but did not spill; oil solidified on contact with water, making cleanup easier

14/7/18 Kinsley, trailer fireworks Trailer caught fire after fireworks display; workers had collected spent fireworks and loaded them with live KWCH Kansas, US fireworks, which were ignited by embers; trailer was unhitched from pickup, no further damage

15/7/18 Delhi, aircraft gasoil Quantity of gasoil leaked from consignment arriving from Turkmenistan at Indira Gandhi airport; leaking Hindustan India cargo was moved to isolation bay; not clear why such a mundane cargo should be moving by air Times

MARINE/INLAND WATERWAY INCIDENTS

Date

13/6/18 off Kochi, Nu Shi Nalini naphtha Fire broke out aboard chemical tanker (16,700 dwt, 2012) after explosion in engine room during repairs; The Hindu Kerala, India one crewman medevaced with burns later died; no report of impact on cargo of naphtha

14/6/18 Kaohsiung,

Kolkata,

Kolkata

Two

was only refloated

said to be with fuel cargo, were beached by storm; all crew evacuated safely;

weeks later after work by salvage company; no

Winner FleetMon

Severe fire broke after explosion out among 464 containers on Shreyas-owned cargoship; crew abandoned FleetMon

ship, which drifted ablaze for three weeks until sinking in shallow water; cargo unknown but clearly flammable

Jose Maria Fire broke out on deck of product/chemical tanker (46,900 dwt, 2009), reportedly during hose connection FleetMon Oaxaca, Mexico Morelos II procedure while berthed at Pemex refinery; terminal personnel, crew quickly extinguished fire 23/6/18 Rotterdam, Bow Jubail fuel oil Odfjell chemical tanker (37,450 dwt, 1996) contacted LBC jetty, breaching hull in way of bunker tanks and Maritime Netherlands spilling 217 t HFO to harbour; extensive cleanup required, serious impact on operations; cost will be heavy Executive 2/7/18 Salina Cruz, Fedro Majuro petroleum Tanker loading at Pemex jetty was pushed onto wharf by sudden squall, causing damage to vessel, jetty, Mexico Oaxaca, Mexico lines; significant pollution by unidentified product; vessel name not recorded in databases News D’y 4/7/18 Marmara Sea, Gammagas

LPG tanker from Greece to Ukraine collided with cargoship Ersoylar 1; both ships were damaged but no FleetMon Turkey leaks reported; both ships brought to anchor 9/7/18 nr Pulau Panjang, pipeline natural gas Major gas leak from underwater pipeline operated by CNOOC Indonesia; navigation in area restricted; FleetMon Banten, Indonesia authorities suspect anchor damage, most likely from local bulker Lumoso Raya anchored nearby 13/7/18 Gulf of Suez, Kimolos fuel oil Suezmax tanker (157,000 dwt, 2018), cargo Russian fuel oil, contacted bottom during southbound passage of FleetMon Egypt Suez Canal; no leak but pictures showed list and trim forward, possibly due to damage to ballast tanks

MISCELLANEOUS INCIDENTS

Date Location Plant type Substance Details Source

~/5/18 Penghu, oil depot gasoline

CPC revealed that 63 m3 gasoline had spilled from its Penghu depot since the start of 2018 due to corrosion Taipei Taiwan in tank floor; site teams believed they could fix problem but failed; spill polluted 0.8 ha land nearby Times

16/6/18 Erbil, market fireworks Fire burned more than 120 shops in Siyaj bazaar; initially thought to be due to short-circuit, later emerged fire Rudaw Kurdistan, Iraq was started by fireworks stored ahead of Eid al-Fitr; no casualties but severe damage to shops, goods

18/6/18 nr Hudson, tank battery crude oil Lightning strike believed to have caused explosion, fire that damaged six storage tanks at NGL Energy Fox40 Colorado, US Partners oil well in Weld county; fire burned for several hours but was extinguished without injury

19/6/18 St John’s, truck repair

Three workers were injured by explosion in Trimac National Tank Services workshop, reportedly during Canadian NL, Canada shop repair work on tank truck; blast blew roof off building; thought that residues in tank may have ignited Press

25/6/18 Gambell, pipeline diesel Some 2,500 gal (9,500 litres) diesel thought to have leaked during delivery to municipal storage tank; leak KTOO Alaska, US was only discovered on 13 July when sheen was seen on pond; no leak to sea

26/6/18 Delaware county, pipeline gasoline Unknown volume of gasoline spilled from Sunoco’s 12-inch product pipeline to Darby Creek, south of WHYY Philadelphia, US Philadelphia Int’l Airport; booms deployed to prevent spread of spill; source took several days to locate

27/6/18 Abadan, oil refinery

Six injured, one badly, when fire broke out at refinery, reportedly in distillation unit; on-scene fire crews Reuters Khuzestan, Iran brought blaze under control

27/6/18 Hamamatsu, fireworks fireworks One worker killed, another badly injured by explosion at fireworks factory; resulting fire was quickly brought Japan Shizuoka, Japan factory under control; investigation underway Today

28/6/18 Chechnya, service fuel At least five people hurt by massive explosion at service station, reportedly due to fire reaching underground RT Russia station tanks; video showed facility engulfed in flames followed by huge explosion; cause of initial fire unknown

30/6/18 Gaza, house fireworks Two person killed, eight injured by explosion in house being used as fireworks production unit; three of those Sputnik Palestine injured were in critical condition; cause unknown; investigation underway

1/7/18 Aculco, pipeline gasoline Crack in Pemex pipeline spilled gasoline to fields in Agua Zarco; villagers rushed to collect spilling product; Mexico México, Mexico no evidence that line had been deliberately attacked, something that happens frequently in Mexico News D’y

2/7/18 Rourkela, pipeline diesel IOCL pipeline carrying diesel from Paradip refinery suffered leak, attracting locals to collect product; police PragaOdisha, India suspect locals may have broken into line but no proof; surrounding fields contaminated by spilled diesel tivadi NS

2/7/18 Wakasa, chemical chemicals One worker killed, dozens injured by explosion at Protein Chemical Co plant, which makes pharma and Japan Fukui, Japan plant chemical agents; yellow smoke billowed from damaged plant; no indication of leak; cause under investigation Times

3/7/18 Pleasant Hope, warehouse fireworks One worker injured by explosion at AM Pyrotechnics facility; building was engulfed in flames; person hurt WPSD Missouri, US was the only one in the building when incident took place; cause of explosion not known

4/7/18 Warangal, fireworks firecrackers At least eight workers were killed, two missing after massive explosion at Bhadrakali Fireworks plant; Times of Telangana, India factory building was reduced to rubble by the blast; facility had storage licence but no permit for manufacturing India

5/7/18 Kemaman, bitumen crude oil Four people injured by fire at Kemaman Bitumen Co refinery involving three large crude oil tanks with some Bernama Terengganu, Malaysia refinery 20,000 litres oil; fire thought to have broken out in one tank; fire burned for days; investigation underway

5/7/18 Tultepec, fireworks fireworks Responders called to fireworks plant after explosion arrived just as a second blast happened; at least 24 Mexico México, Mexico plant people killed in series of explosions; facility was in La Saucera, a zone reserved for pyrotechnics plants N’s Today

6/7/18 Clinton, propane propane Two workers burned by explosion at Rapid Xchange propane refilling plant; one-mile evacuation order; WRAL N Carolina, US filling plant nearby US 701 closed; fire crews had been at site the day before responding to another incident

7/7/18 nr Jenner, pipeline oil, water More than 100 m3 oil and produced water leaked from Cor4 Oil Corp pipeline to marshland; line isolated, CBC Alberta, Canada vacuum trucks deployed to collect liquid, contaminated soil being removed

7/7/18 Minna, oil depot gasoline Floating roof in gasoline storage tank at NNPC depot dropped, causing spill; residents were collecting fuel, Punch Niger, Nigeria putting it on pickup truck, when truck caught fire; fire spread to depot; no casualties reported

12/7/18 Yibin, chemical chemicals 19 people killed, 12 injured by explosion at Yibin Hengda Technology plant; huge flames, smoke seen over Reuters Sichuan, China plant plant; cause under investigation; some arrests after it emerged operator had carried out illegal construction

12/7/18 Cairo, chemical chemicals 12 people injured by explosion at chemical plant near Cairo airport, thought to be due to high temperatures MENA Egypt that affected chemicals in storage area; few details but plant thought to belong to Egypt’s armed forces

18/7/18 Jalgaon, agricultural ethylene Three workers killed, one injured b explosion of ethylene gas cylinder at banana-ripening facility; Business Maharashtra, India facility forensic investigators called in to try and determine cause of blast, which is so far unknown Standard

19/7/18 Chambersburg, army depot undisclosed Three people airlifted with injuries after explosion at Letterkenny Army Depot; facility known to store and RSOE Pennsylvania, US maintain munitions but cause of explosion uncertain; one injured person said to have chemical burns

STICK TO THE SPEED LIMIT

required installation of these safety valves for vehicles and machines working at the UK site.

BURNING ISSUE

Gasoline engines and diesel engines do not operate the same way. A gasoline engine is generally fed by a carburettor and butterfly valve where the volume of air-fuel mixture taken into the engine is controlled by the accelerator pedal, which subsequently controls engine speed.

engines are a potential source of ignition in areas processing oil and gas. Airborne combustible hydrocarbons can blend with the air causing an additional supply of energy that is consumed by the running diesel engine. Since diesel engines control fuel and not air, the engine can no longer maintain speed control and at surprisingly low concentrations the extra energy is sufficient for the engine to accelerate uncontrollably.

At higher than normal rpm speeds the typical result is internal valve ‘float’ which exposes the combustion flames into the manifolds and this then ignites the outside flammable mixture with catastrophic consequences.

DIESEL ENGINE RUNAWAY is a dangerous phenomenon where the running engine draws extra energy from low concentrations of any hydrocarbons in the surrounding air. This causes uncontrolled overspeed beyond the safe limits and an explosion or ignition of the external air-fuel mixture.

A fatal accident at ICI Wilton in the UK in 1969 led to increased general awareness of diesel engine runaway in the oil and gas industry. Based on an Esso Research patented original flow operated solution, Chalwyn created its automatic D valve in 1972 to overcome this problem. Esso Fawley refinery

A diesel engine’s speed, however, is controlled by the air-fuel mixture happening in the combustion chamber. Diesel engines use a ‘direct injection’ method with no need for butterfly valves to manage air flow.

Since no air restriction is present in a diesel engine, it means that an unlimited air supply is possible.

Diesel engine runaway can be caused by several variables; however, one common cause is the engine drawing in external hydrocarbons that have leaked into the atmosphere.

Accident history has shown that diesel

Turning off the ignition key or fuel supply will not stop this process and the engine will continue to accelerate beyond the red line and normal safe limits. Only fitting an emergency shut off valve in the engines air intake system will prevent the overspeed by stopping the engine at a pre-set limit

CONSEQUENCES

Incidences of damage from diesel runaway by consumption of the lubricating oil were seen and understood in earlier times, but these rarely resulted in loss of life. However, in the late 20th century, accident investigations and improved safety standards led to requirements for automatic engine shutdown devices

COMBUSTION • DIESEL ENGINE RUNAWAY CAN HAVE FATAL CONSEQUENCES FOR COMPANIES INVOLVED IN MANUFACTURING, TRANSPORTING AND STORING HAZARDOUS MATERIAL

in several regions for offshore oil and gas operations. Unfortunately, the awareness and local regulations varied internationally, so engine-related accidents have since continued in both ‘upstream’ and ‘downstream’ petrochemical activities.

In Texas in 2003, two workers were killed and two more were injured when a vapour cloud from the cargo was drawn into the intakes of two idling vacuum trucks. In 2005 a US refinery explosion was ignited by a runaway diesel pickup; 15 people died and 170 were injured in the blast.

In 2010, an offshore rig explosion killed eleven people and created the largest accidental oil spill in history. A diesel engine runaway in the engine room is considered one of the main contributing factors.

THE SOLUTION

Most tanker trucks use diesel engines, making this already dangerous problem into an extremely dangerous one in the event of a flammable liquid or gas leak. Loading and

unloading of flammable and combustible liquids is one of the most hazardous operations likely to be undertaken at any manufacturing or storage facility. Tankers transporting highly flammable liquids are a top concern; diesel engine runaway can cause explosions if not prevented.

In any instance, the drivers of these vehicles are likely to be innocent victims of an accident involving diesel engine runaway and it is the fleet operator’s duty to make sure all risks have been considered when working in hazardous areas and all safety precautions are in place.

With increased awareness has come regulatory reform. Transport Canada has taken a pro-active approach and passed a new law that requires automatic air intake shut-off devices to be fitted on all diesel engines. Compliance with this law took effect on 12 January 2018 and it is recommended that operators review safety policies and follow this leading example. HCB www.chalwyn.com

“AIRBORNE COMBUSTIBLE HYDROCARBONS CAN BLEND WITH AIR CAUSING AN ADDITIONAL SUPPLY OF ENERGY”

TURN OF THE PAGE

THE UN ECONOMIC Commission for Europe’s (ECE) Working Party on the Transport of Dangerous Goods (WP15) held its 104th session from 15 to 17 May in Geneva. It was attended by representatives of 24 countries, the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF) and three non-governmental organisations. The meeting was chaired by JA Franco (Portugal) with Ariane Roumier (France) as vice-chair.

By this point in proceedings, the consolidated text of the 2019 edition of ADR –which regulates the international transport of dangerous goods in Europe and, increasingly, other parts of the world – had already been prepared so the meeting’s main focus was on beginning work on the next round of amendments, which will include those changes introduced into the 21st

revised edition of the UN Model Regulations, which had been agreed in December 2017.

The February meeting of the Inland Transport Committee, WP15’s parent body, had approved the results of the 2016–2017 biennial evaluation plan and adopted its programme of work for the 2018–2019 biennium.

Since the previous meeting, San Marino had acceded to the ADR Agreement, bringing the number of contracting parties to 50.

Representatives from Belarus and Georgia informed the Working Group on the ways in which their countries are implanting the ADR regulations; the government of Georgia has taken steps to allow ADR to be applied to domestic transport from 1 January 2019.

Belarus and Tunisia are also making steps towards accession to the 1993 Protocol. The Working Party urged another 12 countries to

do the same so that the Protocol can come into effect.

RID/ADR/ADN FEEDBACK

A number of outstanding issues discussed by the Joint Meeting of RID/ADR/ADN Experts at its spring 2018 session remained to be incorporated into ADR. One of these was the contentious change to footnote 4 (RID) and 2 (ADR) to 6.8.2.1.18:

However the cross section of shells according to 6.8.2.1.14 (a) may contain recesses or protrusions such as sumps, cut-outs or recessed manhole constructions. They may be constructed of flat or shaped (concave or convex) sheet metal. Dents and other unintended deformations shall not be regarded as recesses or protrusions.

This change will only appear in the 2021 editions of ADR and RID. Other amendments were agreed for the 2019 edition; those with substantive rather than editorial implications include:

1. In the Table in 1.1.3.6.3, under transport category 0, for Class 4.3, ‘3132’ is added after ‘3131’.

2. A new transitional provision 1.6.1.47 is added:

Lithium cells and batteries not meeting the

ROAD • WP15’S SPRING SESSION FINALISED SOME LASTMINUTE CHANGES TO THE 2019 TEXT OF ADR AND OPENED DISCUSSION ON A NUMBER OF RECENTLY IDENTIFIED PROBLEMS

requirements of 2.2.9.1.7 (g) may continue to be carried until 31 December 2019.

3. In the Dangerous Goods List (Table A in 3.2.1), ‘CV24’ is inserted in column (18) against the second entry for UN 2031.

4. In the first sentence of 4.1.6.8, after ‘Valves’, is added “and other components which are to remain connected to the valve during carriage (e.g. handling devices or adaptors)”.

5. The second sentence of 5.2.1.5 is amended to read:

The mark, which shall be clearly legible and indelible, shall be in one or more languages, one of which shall be French, German or English, unless any agreements concluded between the countries concerned in the transport operation provide otherwise.

6. At the end of 5.3.1.7.1, a new sentence is added:

The deviations specified in 5.2.2.2.1, second sentence, 5.2.2.2.1.3, third sentence and 5.2.2.2.1.5 for danger labels also apply to placards.

7. In 6.2.4.1, applicability of EN 1442:2016 + A1:2008 is limited to 31 December 2020; a new line is added afterwards adding EN 1442:2017, applicable immediately.

8. Various references are amended for EN 12245 and EN ISO 14246 in 6.2.4.1.

9. A new footnote is added in 6.8.2.1.2, referencing 7.1.3.

10. In the Table in 6.8.2.6.1 there are changes of applicability for EN 14025 and

a new standard is added immediately afterwards. EN 12972:2018 Tanks for transport of dangerous goods – Testing, inspection and marking of metallic tanks will be mandatory from 1 January 2021.

11. In the Table in 6.8.2.6.1, a note is added after EN 14432 and 14433: This standard may also be used for gravitydischarge tanks.

12. In the Table in 6.8.2.6.2, there are amendments to the applicability of EN 12972.

13. In 6.8.5.4, reference to EN 1252-2:2001 is replaced by EN ISO 21028-2018.

Following a review and, on the basis of a submission from Germany, the revised version of EN 590 (A1:2017) was deemed acceptable for reference.

The Secretariat had offered some guidelines on the application of EN 13094:2015 within the scope of ADR. This was accepted, with some amendment, and will be published separately on the UN ECE website. EN 13094 specifies requirements for the design and construction of metallic gravity-discharge tanks intended for the carriage of substances having a vapour pressure not exceeding 110 kPa (absolute pressure) for which a tank code with letter ‘G’ is given in Chapter 3.2 of ADR.

PROPOSALS FOR AMENDMENT

Germany reported on an informal working group looking at ways to clarify 9.3.4.2, which had met in early January. The goal of the work is to reflect the safety requirements »

in ADR by formulating them in such a way as to ensure that they can be met without precluding any alternative solutions to which technological progress might give rise. WP15 noted the progress made so far and invited the informal working group to extend its remit to cover mobile explosives manufacturing units (MEMUs). It was to meet again in early October.

Russia reported on the decision taken by the Working Party on Brakes and Running Gear of the World Forum for Harmonization of Vehicle Regulations (WP29) that a vehicle equipped with a speed limitation function (SLF) could be considered to be in compliance with ADR 9.2.5. Romania noted that Directive 2002/85/EC amends Directive 92/6/EEC and that some wording in 9.2.5 now needs revising. An amended text was agreed.

The UK reported on a successful trial of the first inspection waiver for EX/II, EX/ III, FL and AT vehicles and MEMUs typeapproved in accordance with 9.1.2.2 and for which a declaration of conformity with the requirements of Chapter 9.2 had been issued. The UK will prepare a formal document on this subject, setting out the results of the tests, for discussion at the next session.

At the previous session, Austria had proposed a change to the second sub-

paragraph of 5.3.2.1.6; delegations had asked for more time to consider the change, which was kept in square brackets pending confirmation. However, after further discussion, the general feeling was that no clarification is required and the proposal was therefore not adopted.

Again following on from the previous session, Sweden returned to the issue of different terms being used in ADR for descriptions of electrical connections in the requirements concerning precautions against electrostatic charges. Various delegations came with suggestions, the English version of ADR adopting a change from ‘earthing’ to ‘electrical bonding’ in 9.7.4, 9.7.5.2 and 9.8.3.

Finland offered suggested amendments to deal with inconsistencies between revisions adopted for 2.2.51.1.3 and special provision 307 in relation to ammonium nitrate-based fertilisers, which were gratefully received by the Working Party. These were largely editorial in nature, although there is an important change to the Note to 2.2.51.2.2, which will now read:

The term “competent authority” means the competent authority of the country of origin. If the country of origin is not a Contracting Party to ADR, the classification and conditions »

of carriage shall be recognized by the competent authority of the first country Contracting Party to ADR reached by the consignment.

A further paper from Finland sought to rationalise the layout of label model 2.1 in 5.2.2.2.2, which again was accepted by the Working Party. On a similar topic, France pointed out that 5.2.2.2.1.6(d) in ADR refers specifically to UN Nos 1011, 1075, 1965 and 1978, while the same paragraph in the UN Model Regulations refers merely to ‘liquefied petroleum gases’ which, according to the definition, also includes UN 1969. It was decided to bring ADR into line with the Model Regulations in this case.

Germany proposed a correction to footnote ‘b’ in the Instructions in Writing. This generated opposition not only on the basis that it is undesirable to amend the Instructions in Writing too often but also that the proposal, in an informal document, arrived too late for full consideration.

Germany offered to submit an official document to the next session, which means that there will be no change for the 2019 edition of ADR.

INTERPRETATION OF ADR

Sweden sought the Working Party’s opinion of the meaning of ‘country of origin’ in 4.1.3.8: is this the country where the load was prepared or the country of origin of the tanks involved in the carriage? The opinion given was that this means the country of departure of the cargo.

France asked for opinions on the way that quantities are expressed in the transport document, in accordance with 5.4.1.1.1(f). Does this match with the units required by 1.1.3.6, with liquids expressed in volume, articles in gross mass and solids in net mass, or are alternatives allowed? The general opinion was that 5.4.1.1.1(f) allows the shipper to choose the most appropriate unit and that 1.1.3.6 applies only to exempted transport.

OTHER BUSINESS

Germany floated the idea of copying the certificate number on the back of the driver training certificate; some delegations could see value in the idea but did not agree with Germany’s proposition that this would be an aid to security. There was also a comment that there should be a transitional period if the proposal were to be adopted. Germany will

return with an official proposal for the next session.

Romania offered a draft consolidated table laying out the applicable requirements of Part 9 of ADR to EX/II, EX/III, FL and AT vehicles and MEMUs, respectively. Many delegations thought this could serve as a very useful guideline and asked for an official submission at the next session. Those with comments were urged to write directly to the Romanian representative in good time.

In an informal document, Sweden raised the question of the acceptable minimum level of supervision of vehicles, bearing in mind that Chapter 8.5 is not clear on what ‘supervision’ means. A number of other delegations shared Sweden’s concerns and were invited to communicate directly so that Sweden could return with a formal proposal. The Working Party also expressed its regret that the International Road Transport Union (IRU) was not in attendance as it was felt that it could

AS MORE COUNTRIES AROUND THE WORLD ARE USING ADR AS A BASIS FOR THEIR REGULATIONS, IT HAS BEEN DECIDED TO DROP THE WORD ‘EUROPEAN’ FROM ITS TITLE

have made a useful contribution to this and, indeed, a number of other discussions.

Switzerland raised an issue originally put forward by Sweden at the spring 2018 RID/ADR/ADN Joint Meeting, namely the placarding and marking of wagons and containers containing both limited quantities and other dangerous goods. A situation is possible where transport units that contain a lot of dangerous goods in limited quantities alongside other dangerous goods need only display placarding referring to the fully regulated material; thus the placarding may mislead emergency responders as regards the overall hazards within the transport unit.

Most delegations felt that this was a subject that needed to be raised at the Joint Meeting in an official document.

Switzerland also raised a similar issue with regard to the loading of tank vehicles, particularly when vehicles are moving between, say, gasoline and biofuels service. Problems are foreseen in the placarding of such vehicles, especially if vapours or residues of gasoline remain in the vehicles.

Luxembourg pointed out that a similar situation is possible in inland tank vessels. The two representatives were invited to exchange information so that an official document can be submitted at a future meeting.

The Working Party returned to the proposal to delete the word ‘European’ from the title of the ADR Agreement. This seems a reasonable idea, since ADR is now applied directly or forms the basis of domestic regulation in many countries in Latin America and Asia. The chair asked each delegation in turn for their opinion; a majority supported the change, with no strong opposition from the others. This was welcomed by the chair of the Working Party and the director of the Sustainable Transport Division.

The Working Party asked the secretariat to draw up a draft protocol of amendment with the Office of Legal Affairs so the change can be effected without delay. This may have to wait until the 106th meeting in May 2019.

WP15 has also been asked to consider how its work can contribute to the achievement of Sustainable Development Goals. Suggestions included changing the frequency and duration of its sessions, and the development of new tools to assist in the implementation of ADR. The chair invited delegations to continue thinking how to improve the Working Party’s working procedures, with the discussion likely to continue into the future.

The 105th session of WP15 is scheduled to be held from 6 to 9 November. One item on the agenda will be the election of officers for the next biennium. HCB

DO THE RIGHT THING

CONFERENCE REPORT • THERE’S MORE TO REGULATION THAN RULES; THERE’S ENFORCEMENT FOR A START, AS VCA’S ANNUAL DANGEROUS GOODS SEMINAR HEARD

DELEGATES TO THIS year’s annual Dangerous Goods Seminar, hosted by the UK Vehicle Certification Agency (VCA) on behalf of the Department for Transport (DfT), had the chance to hear all about the rule changes that will face them next year. Senior officials from the various regulatory bodies provided a full overview of the 2019 text for all modes, as detailed in the first part of this report (HCB September 2018, page 62).

Also on the agenda at the Seminar, which took place at the Daventry Court Hotel in early June, were speakers from industry and from the enforcement agencies, who

reported on what is going on down on the ground. Among those was Nick Deal of the Road Haulage Association (RHA), who gave an insight into what drivers face when subjected to a roadside inspection, both in the UK and elsewhere in Europe.

A common issue during a roadside inspection is that the driver reacts badly to being pulled over; this alone can lead to trouble, and Nick advised drivers to remain calm and courteous. After all, the inspector is only doing his or her job.

Issues also occur when UK drivers cross the English Channel. There are some apparently minor requirements in other countries that can trip up the unwary. For instance, in Germany, anyone driving a load of explosives must have undergone training (in German) on the German

Explosives Act on top of ADR. In the Basque region of Spain and in Catalonia there are specific routing requirements for loads that require the orange-coloured plate: vehicles must only use motorways and other major roads, leaving at the nearest exit to their final destination. In Poland, the transport document must declare the owner of the goods. Nick illustrated these and other differences with some cases from his notebook, which sometimes finish with the driver having to pay a fine, in cash.

DRIVERS AT THE SHARP END Nick also stressed the importance of safe loading. The Driver and Vehicle Safety Agency (DVSA) and the Police, which carry out roadside inspections in the UK, will be looking to see that the load is secured. An insecure load can lead to a fixed penalty of £100 and if the vehicle is deemed to be in a dangerous condition it can result in prosecution, which affects the owner’s rating under the Operator Compliance Recognition Scheme. RHA has a document that provides guidance to its members on load securing.

A big non-compliance issue involves fire extinguishers, which account for something like half of all enforcement actions. The rules

require extinguishers to be protected from the weather but also be easily accessible; hauliers need to think about where they place extinguishers on their vehicles – and make sure they are kept up to date.

Nick also spoke about the orange-coloured plates required for some dangerous cargoes. They must be affixed to the front and rear of the transport unit and “set in a vertical plane”. That means they cannot be put inside the windscreen and cannot be left dangling on a chain.

Speaking from the other side of the inspection, Phil David, who was just about to retire after a 29-year career with South Wales Police, gave a perspective on what the enforcement agencies are finding on the roads.

In general, Phil said, drivers often lack the knowledge they ought to have; five years between refresher training is, he said, too long. There is also often a laziness on the part of drivers, who fail to apply the training they have received. Drivers are also under pressure from their employers to get more done. Too often there is no overarching control at the dispatch point and no qualified person in charge. This all amounts to a system failure, Phil said.

Phil followed this up with plenty of illustrations of the kinds of problems that

emerge during roadside inspections – the audience always lap this up – before offering some solutions. Of the 3,500 or so annual checks made, 37 per cent involve some sort of prohibition, but there is no end deterrent and no mechanism for cancelling a driver’s ADR certificate. Increased sanctions are needed, he said, but there simply are not enough enforcement personnel out there to do an effective job. The only way to bring industry into line, he said, is a graduated system of fines.

ROADSIDE, PORT SIDE

Phil Lapczuk of DVSA also had plenty to say about roadside inspections, noting that around 85 per cent of all dangerous goodsrelated infractions are under the control of the driver. The driver should know and check that the correct personal protective equipment, fire extinguishers, instructions in writing, etc are on the truck when he sets off. It is vital to make sure that drivers, fleet managers and other personnel involved in moving dangerous goods by road all have specific responsibilities under the regulations.

DVSA has introduced a system of ‘earned recognition’ and is working with partners to look at future activities. “We want you to be compliant,” Phil said.

There was also an update on enforcement in the maritime mode from Helen North, who at the time of the Seminar was at the Maritime and Coastguard Agency (MCA) but has since returned to DfT’s Dangerous Goods Division. MCA’s Enforcement Unit has the job of following up on significant breaches of safety and environmental issues covered by Merchant Shipping legislation. It had 138 surveyors based in nine offices around the UK. Last year the Enforcement Unit started 87 investigations and 12 prosecutions; however, hardly any of those involved dangerous goods.

As an example, Helen quoted a case at Heysham, which MCA attended after being alerted by the Lancashire Police. The load included some undeclared dangerous goods; the driver was not ADR-trained; there were no placards for maritime transport; and the dangerous goods notes were either inaccessible or non-compliant.

The Enforcement Branch wrote to the freight forwarder, haulier and consignor, notifying them of the non-compliance and requiring improvements. The next call to Heysham was to attend a similar vehicle, with the same parties involved. The freight forwarder was then interviewed under caution and is now in liquidation; the consignor was also interviewed under caution, given a Formal Caution and has now taken corrective measures.

MCA is also responsible for inspecting containers at the dock although, compared to its counterparts in some other countries, it has very limited resources available. An average of around 200 containers have been inspected each year, with one-third receiving a prohibition notice. Half of the deficiencies found relate to securing and 25 per cent to placarding and labelling.

LET’S GET TECHNICAL

In addition to issues surrounding enforcement, the VCA Seminar also found time for some more technical presentations. Steve Gillingham, principal engineer with DfT’s Dangerous Goods Division, reported on progress with the faults found in certain road tankers over the past few years. These largely revolved around »

the weld quality of tanker barrels, discovered during routine inspections. DfT has invested £2m in a research programme, early results from which had been presented at the previous three Seminars.

ADR requires that welds must be “skilfully made” and “afford the fullest safety” but the research programme found some circumferential welds containing numerous and extensive indicators of fusion defects; there was also evidence of cracking and shell distortion. Going further than the initial problem, DfT found that initial surface cracks found in certain tankers built before a twin-wire welding process was introduced in 2010 are predicted to cause failures during rollovers.

Steve’s presentation was of most use to engineers in the audience, delving very deeply as it did into some very technical areas; the work undertaken by DfT has raised a number of issues, much of which was to be discussed at the autumn Joint Meeting of RID/ADR/ADN Experts and the Working Group on Tanks.

Ziyad Akhlaq of VCA’s Dangerous Goods Office spoke on the theme of tank and pressure vessel approvals, explaining the way in which DfT can deal with tanks that had non-conformities at the time of construction. If presented with such tanks, DfT will be able to issue an authorisation, based on a review

of the relevant regulations, standards and codes and on tolerances and allowances; this may involve the retrofitting of material to strengthen the tank and additional tests, checks or inspections. Any such authorisation will be for domestic carriage only and will be time-restricted.

Ziyad also spoke about the P15Y approvals system, which allows for the extension of the inspection period for pressure receptacles used for certain gases. Companies applying for such approvals must be audited to the ISO 9000 quality standard and have to produce annual returns giving details of the cylinders involved.

Also on a technical point, Richard Hakeem, director of safety and technical policy at the UK LPG Association, with the assistance of DfT’s Darren Freezor, looked at the risk estimation work being done by the EU Agency for Railways (ERA). This four-year project aims to flesh out the requirements for risk management, such as those in Chapter 1.9 of RID and ADR.

It has so far generated a guide for risk estimation and a guide for decision makers, which are due for release later this year. These guides are not compulsory and ERA will be looking for feedback from industry with a view to revising them over the next few years.

However, the LPG sector is not convinced by the recommendations resulting from this

work, Richard said, especially those for the retrofitting of thermal protection on road tankers, where the costs appear to be disproportionate.

Richard moved on to the informal working group on boiling liquid evaporating vapour explosions (BLEVEs), which met in February 2018. Work is still going on but, Richard said, the outcome should improve the quality and transparency of assumptions used in risk estimations and drive wider harmonisation across industry.

DUTCH COURAGE

VCA’s Dangerous Goods Seminar always hears from someone from outside the UK’s borders and this year it was the turn of Eric Miggelbrink, senior policy officer at the Dutch Ministry of Infrastructure and Water Management, who explained the Dutch perspective on the regulations.

That perspective has to take into account the massive fireworks storage explosion in Enschede in May 2000 that killed 22 people. It was, Eric said, the trigger for renewed thinking on risks and risk-based decision making in the Netherlands. “We can’t exclude risks, but we can minimise them and prepare for response,” he said.

The Government has established a national risk profile, covering territorial security, physical safety, economic security, ecological security and social and political stability. Tectonically accurate, this sees the highest risk as being severe flooding, and the lowest risk an earthquake. The government is now provided with information on an annual basis, showing the relative risks, in order to guide decision making.

The national risk profile allows an integrated approach to safety, the ‘Safety Chain’. This starts with removing unsafe situations or putting in place measures to reduce the severity of an unsafe event. “Dealing with risk demands policy decisions,” Eric said.

DISPATCHERS AND DRIVERS ALL HAVE RESPONSIBILITIES TO ENSURE THAT DANGEROUS GOODS REMAIN SAFE DURING TRANSPORT AND HANDLING



Eric quoted a 2013 European Commission study on harmonised risk acceptance criteria in the transport of dangerous goods. There is, in general, increasing demand for safety but different EU member states have developed different answers. This means there is the potential for risk to be shifted from one country to another and, potentially, an overall increase in risk for the population. This approach calls into question the effectiveness of the regulatory system.

In 2014, the Joint Meeting of Experts decided to develop a method for the sharing of knowledge on risks and to draw up guidance, including a common understanding on the calculation of risks and the subsequent decision-making based on those risks.

For the Netherlands, the approach to risk in the transport of dangerous goods builds on RID, ADR and ADN and consists of a ‘Base Network’ involving clusters of chemical industry activity, the main ports in the country, and international routes to and from the hinterland. This approach is designed to resolve the growing tension between the transport of dangerous goods and spatial planning, especially the

spread of housing and other construction into risk zones. This had led to pressure by municipalities to ban the transport of dangerous goods on certain routes, threatening to increase bottlenecks in the supply chain.

The Base Network now creates a boundary and a clear distinction between dangerous goods activities and residential populations.

Eric explained the mathematics behind the risk assessment and said that the restrictions that emerged have now been embodied in legislation.

LOOKING AHEAD TO 2019

As ever, the VCA Dangerous Goods Symposium ended with an invitation to the audience to take time to speak to the regulators and other speakers, who made themselves available throughout the two days – even over breakfast.

The date of next year’s Symposium – the 34th in the series – has not yet been settled; those interested in attending should keep an eye on the dangerous goods page on the VCA website, www.dft.gov.uk/vca/dangerousgoods/ dangerous-goods-offi.asp, where details will be posted as soon as they are available. HCB

“FIRE EXTINGUISHER ISSUES ACCOUNT FOR AROUND HALF OF ALL ROADSIDE ENFORCEMENT ACTIONS”

VOTE OF CONFIDENCE

DG shipping and handling, and the challenges they face.

It’s no secret that growing volumes and types of DG, along with more extensive and complex regulations, have made moving DG in a safe, secure and compliant manner increasingly difficult. In fact:

• 51 per cent of respondents said they find it challenging to keep up with the latest regulations,

• 15 per cent were not confident that they can ensure DG regulatory compliance across their entire organisation, and 13 per cent were unsure, and

• 58 per cent feel that even if they follow the regulations perfectly there is a chance their shipments will be stopped.

When asked to rank their greatest challenge to compliance, 28 per cent cited budget constraints but 21 per cent said that their company leadership is not aware of the risks involved in their operations. Ineffective training and lack of technology were other common problems.

As we saw in the 2017 survey, those responsible for DG face an uphill battle –not only in meeting evolving regulations, but also in overcoming inadequate infrastructure and training.

MAINTAINING A SMOOTH supply chain is critical in today’s highly competitive market. Yet despite the importance (and overall impact) of compliance on the supply chain, dangerous goods (DG) professionals find it increasingly challenging to do their jobs effectively and efficiently. This was evident in the 2018 Global Dangerous Goods Confidence Outlook survey, conducted by Labelmaster, IATA and HCB to gain insights into how organisations around the world approach

BEHIND THE CURVE

Being able to stay up-to-date with the latest regulations and then abide by them requires the proper training, infrastructure and processes. While most DG professionals believe their companies are able to stay abreast of the latest regulations and prepare employees appropriately, there is still a significant population where improvement is needed.

One key area that can help is technology. There is no denying that technology is critical to the supply chain and significantly improves efficiency, speed and accuracy. But even with a number of technology resources available,

more than one-quarter of DG professionals are still doing everything manually.

Reliance on manual processes is time-consuming, significantly increases the chance of human error and makes it harder to maintain consistency across an organisation. But just because a company uses some sort of technology for compliance, it does not mean they have the infrastructure they really need. This was evident in the survey responses, as 15 per cent believe their company’s ability to quickly adapt to regulatory and supply chain changes is “lagging behind the industry” and only 21 per cent believe it is “advanced –ahead of the industry.”

Furthermore, the need for improvement extends to training as well. One-quarter of respondents feel their company’s training does not adequately prepare people within the organisation to comply with DG shipping regulations. In many cases, the scope of those being trained needs to be expanded. In fact, 67 per cent of respondents believe DG training should be extended to other departments across their company.

Companies that view compliance as a competitive advantage are more likely to use DG-specific technology, feel they have the technological support that quickly adapts to regulatory and supply chain changes, and have higher confidence in overall operations. Those that adhere to minimum requirements are more likely to be challenged by ineffective training and a lack of awareness on the part of company leadership, and are much less confident in their ability to ensure compliance across the organisation.

Respondents were asked how they would allocate extra budget, should it be made available. More effective training was the top target, cited by 42 per cent, with 29 per cent asking for more technology.

Unfortunately, obtaining the budget and resources to fuel these areas is not easy – and most likely requires buy-in from executive leadership. But how do you get that buy-in? It starts with changing the conversation around DG management.

COMPLIANCE • THOSE WHO KNOW ABOUT DANGEROUS GOODS COMPLIANCE ARE OFTEN UNDERVALUED; ROB FINN, VICE-PRESIDENT OF LABELMASTER, OFFERS SOME TOOLS TO CHANGE THAT

CHANGE THE CONVERSATION

Changing the conversation means reframing the overall view of DG management within an organisation. This begins with DG professionals quantitatively demonstrating how their compliance programme can reduce costs and increase revenue to make a positive contribution to the company’s bottom line. Simply put, it is defining the total value of compliance, taking into account three factors relevant to any business engaged in DG transport:

• The cost of maintaining compliance throughout the supply chain, such as expenses for people, processes, compliance products, supportive software and technology, reporting, training and management

• The cost of non-compliance due to errors and lapses such as civil penalties, carrier refusal and delays, fines, remediation and higher insurance costs

• The opportunities of higher-level compliance-enabling differentiation, revenue growth and faster cash flows, such as implementing new products that are aligned with regulatory standards from day one, faster product delivery to customers, increased brand equity, and the ability to offer emerging or popular products that others may not.

The total value framework provides a real business case for adequately investing resources to support compliance. Company buy-in enables DG pros to invest in solutions that will provide a meaningful impact, such as technology to increase compliance, save time and ship faster; and training that adds real business value. Survey responses spotlighted the fact that for many companies training is sometimes the only resource available to build and maintain compliance. This puts a tremendous amount of pressure on training to be effective. To make your training efforts

pay off, use a training resource that has DG expertise; make sure your content is up-to-date; integrate your company’s unique policies, products and suppliers into the training; and establish objective, quantitative metrics that show cost savings or revenue generation.

DG pros recognise the value in resources, technology and training that support compliance, but still aren’t getting the support they need.

Compliance will only become more challenging, so it is critical for them to redefine how their organisation views compliance in order to get the support and investment they need.

To learn more about the total value of compliance, download a TVC technical brief and schedule a free assessment, visit www.labelmaster.com/tvc. To read the full survey report, visit www.labelmaster.com/ dg-compliance-outlook. HCB

ADVERTISERS INDEX

Express

NOT OTHERWISE SPECIFIED

STINKY POOL

Nobody wants to wake up in the morning and find a foreign body in their swimming pool. Dead leaves, exhausted frogs and the occasional duck may be fairly easy to remove but, for one homeowner in Pennsylvania in August, it was a more difficult job.

In fact, the poor chap was woken one morning by hearing a loud crash in his yard.

Looking out of the bedroom window, he discovered that a tank truck had landed in his pool. That was bad enough – but it emerged that this was a septic tanker carrying a load of human sewage.

It emerged that an overturned propane tanker in Conestoga township, Lancaster county, had caused a diversion; the septic tanker failed to negotiate a turn, crashed through the fence and ran straight into the pool.

Larry Frankford, chief of the local volunteer fire department, was asked about the smell: “You can just use your imagination,” he told local reporters. No amount of chlorine is going to cover up the mixture of sewage and diesel that spilled to the pool.

DEATH BY ICE CREAM

A sad but cautionary tale comes to us from the state of Washington, where an elderly woman died and her daughter-in-law was badly injured while sitting in a car in July. The younger woman had offered to drive her mother-in-law home late one night and it was only when her husband woke at 4 am to go to work that he realised she had not come home.

He found the car parked a few blocks from their home in Lakewood, with the two women unconscious inside. Ambulance crews took the two women to hospital, where the older woman was pronounced dead. The cause

of the incident was asphyxiation due to displacement of oxygen in the car by carbon dioxide.

The man worked distributing ‘Dippin’ Dots’ (apparently, a novelty ice-cream) to local businesses and he stored dry ice in the car to keep the stuff frozen on his rounds. He had been doing this without incident for some years but had recently bought a new car. “The newer car probably had better sealing,” said the sheriff’s department.

So if you’re involved in a similar trade, best keep hold of the old jalopy.

ART WITH A CAPITAL ‘F’

Korean artist Lee Bul first exhibited her artwork Majestic Splendor at MOMA in New York in 1997, although it did not last long. The work in question consists of a fish embroidered with sequins; unfortunately, as the fish began to decay, the refrigeration unit failed and the smell made visitors nauseous.

Spool forward 20 years and the same artwork (though presumably a different fish) was on display at the Hayward Gallery in London. Ms Lee had taken the precaution of packing the rotting fish in a sealed plastic bag along with some potassium permanganate to help dampen any smell.

Sadly, the piece went awry once more; while it was being handled, Majestic Splendor caught fire, causing damage to the gallery and a visit from the fire brigade. They suspected that gases given off by the decomposing fish combined with the preservative, causing a spontaneous combustion.

“Following this expert advice,” said the gallery, “we have now taken the decision to remove Majestic Splendor from the exhibition.” A sad day for art-lovers everywhere.

Logistics

Essberger Tankers

Merchandising

Terminals

& Kubenz

Biennial

Logistics

Terminals

Tank Containers

Bellyband

Assurance

of

of Moerdijk

Telematic Systems

Leasing