HCB Magazine October 2019 by Enhesa Product

PRODUCED IN COOPERATION WITH EPCA FOR DISTRIBUTION AT ITS 53RD ANNUAL MEETING IN BERLIN

M O N T H LY O C T O B E R

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CROSS THAT BRIDGE CHEMICAL LOGISTICS FIRMS GET READY TO FACE THE FUTURE  WHAT THE ENERGY TRANSITION MEANS  COPING IN A DECARBONISED WORLD  SUSTAINABILITY THROUGH DIGITISATION

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I N F O R M AT I O N

D A N G E R O U S

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UP FRONT 01

EDITOR’S LETTER

We live in interesting times. Geopolitical and geostrategic factors are impacting confidence and exacerbating the already volatile and unpredictable economic environment. Growing awareness of impending environmental crises is generating increasing public and political pressure to make changes. And the mature markets are seeing demographic shifts that are having a profound impact on how both young and old see their roles in the workplace. So interesting times are not good for business. Nowhere is that more true than in the petrochemical industry, which – at least in Europe – is coming under immense pressure to make changes and to do something about closing the plastics waste stream. Industry has been talking about environmental stewardship and sustainability for years – but the time for talking is over and it is now time to make some concrete changes. The European Petrochemical Association’s (EPCA) Annual Meeting, which takes place this month in Berlin, comes therefore at a crucial time for the industry. While it may have recovered well in the past few years, after something of a slump following the 2008 financial crisis, that very success has helped to highlight some vital issues, and nowhere more so than in the areas of sustainable development and inefficiencies in the logistics sector. It has been clear for years now that the petrochemical industry must work hard to attract, retain and develop young talent. In this, its efforts are in competition with other industries, which is bad news for a sector that has often struggled to present the sort of image that the young are likely to find attractive. And it is in youth that the industry will find the energy and the new ideas that will be needed to drive the transformation that is necessary – and increasingly urgent.

EPCA has worked hard in recent years to do something to change that image, by providing the space where its members can discuss the issues of talent and diversity in the workplace, and by promoting scientific and technical education in schools. But in this crucial year, EPCA’s Annual Meeting will also be looking in particular at developing leadership talent to drive the industry’s response to the need to become more sustainable. Sustainability is also pressing on the supply chain and, while digitisation has made some headway in reducing inefficiency in the logistics function in recent years, there is still more to be done. The chemical supply chain in Europe has also been hit by infrastructure bottlenecks, with a lack of progress in improving the usability of rail, growing road congestion (not least around Antwerp) and disruption in inland waterway transport caused by more frequent occurrences of low water – something that may well be related to climate change. All of these themes will be topics for discussion at EPCA’s Annual Meeting, which once more has drawn some very knowledgeable speakers and panellists. It has, as ever, also attracted a huge list of delegates, who attend as much for the business opportunities as for the speaker presentations. However, this year more than ever, delegates should not miss the chance to sit in on those business sessions. The European petrochemical industry is in the midst of a period of fundamental transformation and businesses need all the help they can get to navigate what will inevitably be choppy waters ahead. HCB looks forward to seeing you in Berlin! Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 40

•

Hands in pockets Charterers face rising freight News bulletin – tanker shipping

NUMBER 10

UP FRONT Letter from the Editor 30 Years Ago Learning by Training EPCA SPECIAL SUPPLEMENT Getting together What to look for at EPCA The road to sustainability Talking to EPCA’s CEO Caroline Ciuciu Plan your journey Dirk Verstraeten takes the lead Gathering thoughts EPCA’s SCPC works on the future STORAGE TERMINALS Change is gonna come Future on the agenda at FETSA XL Med Tarragona prepares for growth Advantage Antwerp Standic’s plans for new terminal Ready to roll Oiltanking’s new focus Stronger together Eddyfi adds phased array Get back to work Fast recoating from Jotun News bulletin – storage terminals TANKER SHIPPING Get off the road Antwerp aims for sustainability

01 04 05

08 14 20

TANKS Sensor sensibility Hoyer rolls out smart tanks State of play M&S’s view of the market Man Oman JTS expands out of UAE Driving safety home Chemical Express majors on training The Italian job Marcevaggi upgrades fleet Bigger is better Van Hool’s jumbo tanks for BASF News bulletin – tanks and logistics

News bulletin – chemical distribution 52 56

34 42 43 44

62 66

47 48

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

97 98

COURSES & CONFERENCES Training courses Getting clinical Clinital trials event comes to PA Conference Diary

100 103 105

68 70 75

SAFETY Incident Log Silver medal CDI going strong at 25 Fixing a hole Labelmaster survey identifies gaps

106 109 110

79 80 82 84

REGULATIONS Devil in the detail Joint Meeting looks at tanks Plus ça change Same enforcement issues at VCA Read all about it Stay up to date with IATA

112 118 122

46 CHEMICAL DISTRIBUTION Future days Fecc looks to youth Window shopping E-commerce with GoBuyChem Selecting the best Warehouse with ShareHouse

25 CHEMICAL LOGISTICS Now try the best Log4Chem says 4PLs have a role Swiss state sells share SBB commercialises freight A new chapter VTG prepares for the future Progress by partnership Blackmer pumps in Spanish market Smart cooperation IMT strikes deal with NTtank

INDUSTRIAL PACKAGING Perfecting production Schütz adds to capabilities To cap it off Packwise smartens up IBCs News bulletin – industrial packaging

BACK PAGE Not otherwise specified 88 91 92

Campaigns Director Craig Vye Email: craig.vye@hcblive.com Tel: +44 (0) 20 8371 4014

124

NEXT MONTH Steel drum manufacturing survey Storage terminal equipment news Focus on tank container depots IBC market developments

Managing Editor Stephen Mitchell Email: stephen.mitchell@hcblive.com Tel: +44 (0) 20 8371 4045 Designer Natalie Clay

Deputy Editor Alex Roberts Email: alex.roberts@hcblive.com Tel: +44 (0) 208 371 4035

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

Production Manager Binita Wilton Email: binita.wilton@hcblive.com Tel: +44(0)208 371 4048

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

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30 YEARS AGO A LOOK BACK AT OCTOBER 1989

There was a time when the LNG industry was small; thirty years ago there were fewer than 100 LNG carriers in the entire world fleet, and massive barriers to entry kept it tight. It’s very different nowadays, with the trade in LNG having expanded immensely. But back in October 1989 HCB was one of the very few publications with any particular interest or expertise in the sector, and our issue led with news of the inauguration of the massive North West Shelf project in Australia and an overview of world LNG trade and ships on order. In that issue we also looked at the bulk liquid chemicals trades, with an overview of the chemical tanker market and an article on the opening of Stolt Tankers & Terminals’ new storage and distribution hub in Houston. In those days, we felt it necessary to put air-quotes around ‘hub’ as it was such a new-fangled term, as well as around ‘owner’s berth’ – Stolt-Nielsen was looking to improve its own tanker efficiencies in one of the world’s major bulk liquids ports by having its own terminal with berths reserved for its own ships. One innovation that we reported on in October 1989 did not come off: this was a new design for a ‘bottle tanker’ for the transport of liquid chemicals on shortsea and river trades in Europe. But perhaps the item in the October 1989 issue that has most resonance today was the comment piece by editor Mike Corkhill, in which he highlighted the growing practice of outsourcing waste treatment and the increasing volume of maritime trade in hazardous wastes. His comments were sparked in part by militant action by Greenpeace against shipments of PCB-contaminated waste from Canada to the UK.

HCB MONTHLY | OCTOBER 2019

He pointed out that the UK was equipped with specialist waste treatment units capable of handling such material, in contrast to the position in Quebec, and that the material is not particularly hazardous in transport. Therefore, such trade should be supported, not attacked. On the other hand, he also made the following point: “We must also strive to ensure that the invidious practice of dumping hazardous wastes in developing countries, which has sprung up in recent years, is halted forthwith and that efforts to minimise the generation of such materials at sources are given a high priority.” Spool forward thirty years and public concern has swung round from obviously hazardous pollutants to the apparently more benign issue of waste plastics. Recent publicity highlighting the dangers that plastics pollution presents to the world’s oceans – and to humans and all other animals on the plant – has coincided with China’s decision to ban the import of plastics and other wastes, a ban that has been mirrored by other Asian nations. Those bans have forced consumers and industrial producers and users in the developed world to look more closely at how they can prevent such waste from being generated at all. And that will provide a big challenge to the European petrochemical industry in the years to come. Indeed, so great is that challenge that the European Petrochemical Association (EPCA) has put sustainability in general and plastics pollution in particular high on its agenda in the conference sessions at its Annual Meeting this month.

UP FRONT 05

LEARNING BY TRAINING By Arend van Campen

HSE AND OUR BRAIN I’d like to tell you something about behavioural safety. As a professional trainer in our industry I developed a two-day course called BBS, Behaviour Based Safety, which in fact is a voyage into oneself. The course concentrates on self-reflection and psychology because students don’t often ask themselves why they behave in a certain, sometimes dangerous manner. Neither do they often realise that stress can lead to narrowmindedness. Ethics is a condition for safety, because it means ‘doing the right thing.’ But what happens when someone who believes he is doing the right thing is doing it wrong? People are not flawless, they make mistakes or perceive situations differently. A good start is to understand ourselves and specifically our own brain. Different parts of the brain have different responses to decision making. Understanding that people actually have three brains might help. 1. If the decision has to do with what is perceived as danger, the first, Reptilian brain will respond fast and instinctively. 2. If the decision has to do with relationships and emotions, the second, Mammalian brain will take more time to respond based on feelings and emotions. 3. If the decision has to do with an analytical challenge, the third, Neocortex brain weighs options and demands careful deliberation. Reptilian Brain - Instinct (survival, breathing/swallowing/heartbeat, startle response). The brain stem is the reptilian brain. It is a remnant of our prehistoric past. The reptilian brain acts on stimulus and response. It is useful for quick decisions without thinking. It focuses on survival and takes over when you are in danger and you don’t have

time to think. In a world of survival of the fittest, the reptilian brain is concerned with getting food and keeping you from becoming food. The reptilian brain is fear-driven and takes over when you feel threatened or endangered. Fear is a survival mechanism. It triggers the Fight, Flight or Freeze response: faster breathing, increased heart rate, higher blood pressure and metabolism, muscle tension, dizziness, headache, alertness, improved hearing, seeing, getting stronger, faster by stress hormones (adrenaline) (these reactions are unconscious). Limbic System - Emotion (feelings, relationship/nurturing, images and dreams, play). The modules that lie beneath the corpus callosum are known as the limbic system. This area is older than the cortex in evolutionary terms and is also known as the Mammalian brain because it is thought to have first emerged in mammals. This part of the brain, and even that below it, is unconscious, and yet has a profound effect on our experience because it is densely connected to the conscious cortex above it and constantly feeds information upwards. The limbic stem is the root of emotions and feelings. It affects moods and bodily functions. Neocortex - Thought (including planning, language, logic & will, awareness). The neocortex is the most evolutionary advanced part of your brain. It governs your ability to speak, think, and solve problems. The neocortex affects your creativity and your ability to learn. The neocortex makes up about 80 per cent of the brain. This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.

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PUBLICATION PREPARED BY HCB FOR THE 53ND EPCA ANNUAL MEETING 6TH TO 9TH OCTOBER – BERLIN, GERMANY

GETTING TOGETHER EUROPE’S PETROCHEMICAL INDUSTRY OPERATES IN AN UNCERTAIN WORLD BUT THOSE WHO ATTEND EPCA’S 53RD ANNUAL MEETING THIS MONTH WILL FIND EXPERT HELP IN REDUCING THOSE UNCERTAINTIES

The European Petrochemical Association’s

EPCA’s role lies in helping its members

the industry, and research into ways of improving

(EPCA) 53rd Annual Meeting, which opens its

navigate this evolving world, not to lobby for it,

doors to delegates on 6 October in Berlin,

and so its Annual Meeting will present the

efficiency and sustainability in the supply chain.

comes at what EPCA CEO Caroline Ciuciu

results of ongoing work in three main areas

locus for discussion, not just through the various

describes as a “crucial year” for the industry.

that is designed to provide industry with the tools

business sessions that take place over the four

Geopolitical and global economic stresses are

it needs. Specifically, these involve the promotion

days of the event but also through the unrivalled

posing challenges for Europe’s chemical

of relevant education in scientific and technical

opportunities it provides for attendees to meet

manufacturers and their logistics partners.

areas, the attraction of new and diverse talent to

industry leaders and external stakeholders.

EPCA’s Annual Meeting always provides a

EPCA 09

TAKE TIME TO LISTEN

the chemical industry is a prime motor of

booklet and other publications will instead be

The theme of this year’s EPCA Annual Meeting

economic development, both in the developed

available on the EPCA website and on a

is ‘Writing Together the Next Chapter of the

and developing areas of the world, and has an

dedicated mobile app.

European Petrochemical Industry’, reflecting its

important role to play in ensuring that growth is

belief that it is the community of chemical

maintained. Recent game-changing investments

producers, specialist logistics providers and their

in Europe announced by major international

strategic partners down the supply chain that are

producers show that the region still has the

best placed to develop the way forward. EPCA

potential to play that role.

stands for connecting, for sharing knowledge and

But that growth can come at a price and the

LEADERS OF TOMORROW

The magnitude of sustainability challenges demands transformational changes that require some reengineering of business as well as new

forward thinking that can contribute to greater

petrochemical industry is having to deal with

social skills and competences. Addressing issues

efficiency and sustainability in the sector. That

growing concern over plastics pollution. Finding

of recycling and sustainability will inevitably require

means finding practical ways to strengthen

a way to close the plastics recycling loop is a

new approaches, which may be best managed by

cooperation between partners across the value

major task and one that will require innovation to

attracting young talent with energy and new ideas

chain and embed innovative thinking into

solve. This topic will be debated during the

to put them into practice.

industrial strategies, with the aim of generating

EPCA Annual Meeting by Tom Crotty, INEOS

sustainable growth in Europe.

Group managing director, and Patrick Labat,

the industry, it also needs to be developed, as the

To help that process, EPCA has brought in

Not only does that talent need to be brought into

senior executive vice-president, northern Europe

young people joining the chemical industry today

some high-profile speakers who will provide

at Veolia, one of the founding members of the

will be its leaders tomorrow. How current business

delegates with knowledge to inform their

Alliance to End Plastic Waste (AEPW).

leaders can embrace these challenges and develop

decision-making as industry faces up to the

On the topic of sustainability, regular visitors

the right competences to take industry forward will

uncertain future. To start the event, Paul Romer,

to the EPCA Annual Meeting will notice some

be discussed in the business session on 'Talent of

co-winner of the 2018 Nobel Prize in Economic

changes this year, not least the absence of a

Today, Leaders of Tomorrow', with keynote

Sciences, will speak about ‘growth economics’;

bag full of printed material. The attendance

presentations from Stephen Hahn-Griffiths, chief

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10 EPCA

reputation officer at the Reputation Institute, and

cultures, and highlights the importance of science,

Deutschland, EPCA’s Supply Chain Program

Professor Wayne Visser, holder of the BASF-Port

technology, engineering and mathematics (STEM)

Committee (SCPC) is focusing on the strategic

of Antwerp-Randstad Chair in Sustainable

education. In addition, participants gain soft skills

importance of transport infrastructure in Europe

Transformation at the Antwerp Management

that will help them interact in a fast-changing and

as a key asset for the sustained and sustainable

School, who is supporting EPCA in exploring

sometimes divisive environment.

growth of the European petrochemical sector and industry at large.

the concept of sustainability leadership.

The session will emphasise the contribution

For the fourth time, the EPCA Annual Meeting DEBOTTLENECKING THE SUPPLY CHAIN

that transport and storage infrastructure can

HCB readers may be most interested in the

make in terms of meeting the economic, energy

participants will present their ideas for shaping a

business session on logistics and supply chain

and sustainability challenges of today and of the

sustainable future for plastics and petrochemicals.

issues, which has the theme of ‘Investing in

future, as well as the need to foster investment

The competition is more than just about winning

Infrastructure in Europe for Strategic and

in new capacity and upgrading existing assets.

prizes: it draws together students between the

Sustainable Supply Chains’. Under the new

In particular, given the projected 30 per cent

ages of 16 and 19 from across Europe,

chairmanship of Dirk Verstraeten, director

increase in freight transport over the next ten

representing different origins, genders, ages and

of global logistics procurement at Covestro

years, Europe will need to shift further towards

will also play host to the Grand Finals of the European Youth Debating Competition, where

HCB MONTHLY | OCTOBER 2019

12 EPCA

intermodal transport, which will bring rail

chain has embraced digitisation and the benefits

the closing lunch on 9 October will feature a

infrastructure squarely into the spotlight.

enjoyed by those who are leading the journey

speech by Pascal Lamy, director general of the

towards the Industry 4.0 future.

World Trade Organisation (WTO) from 2005 to

With that in mind, the logistics and supply chain business session will feature presentations by

EPCA feels that, with digitisation really picking up

2013, who promises to provide delegates with his

Jacques Vandermeiren, CEO of the Port of Antwerp,

speed in the sector, the time is right to tackle some

interpretation of the fast-changing geopolitical and

Clemens Först, spokesman of the board of Rail

of the larger digital transformation challenges. One

current turbulent trading environments and give an

Cargo Group and chair of the CEO Group at UIC

particularly interesting concept that touches upon

insight into how he sees future relations between

and CER, and Bernhard Kunz, managing director

both digitisation and climate change, is the circular

Europe, the US, Russia and China developing

of Hupac Group.

economy and how new business models, some of

under a more protectionist new world order.

Prior to that, though, there will be a ‘Digital Café Workshop’ on innovation and digitisation in petrochemical supply chain, facilitated by Professor Ann Vereecke, partner at Vlerick Business School,

which are ‘digital-by-design’, can facilitate that transformation. This session is strictly limited in size and attendance is by invitation only.

who worked closely with EPCA on a joint study

to identify the extent to which the chemical supply

HCB MONTHLY | OCTOBER 2019

trade environments and choose the appropriate paths to prosper, in cooperationwith their strategic partners around the world, and to reinvent

published in 2017 and a seminar in Brussels in June 2018 on the topic of digitisation, which sought

Pascal Lamy is ideally placed to help Europe’s businesses reflect on the current geopolitical and

themselves to continue to deliver sustainable TRADE IN A CHANGING WORLD

Wrapping up the 2019 EPCA Annual Meeting,

and sustained economic growth in the evolving world ahead. HCB

HCB MONTHLY | OCTOBER 2019

EPCA 15

THE ROAD TO TRANSFORMATION EPCA'S CEO CAROLINE CIUCIU TALKS ABOUT THE ROLE OF THE ASSOCIATION IN HELPING ITS MEMBERS FACE THE COMING CHALLENGES AND SEIZE THE OPPORTUNITIES IN AN UNPREDICTABLE WORLD When the doors open on the 53rd Annual Meeting

petrochemical supply chain since 2017 with the

of the European Petrochemical Association

support of the Supply Chain Program Committee

(EPCA) in Berlin on 6 October, it marks not just

(SCPC). This generated a report in 2018 that

the start of four days of intense discussions

identified a baseline in the application of digitised

and debates, but the opportunity to finally share

systems among both chemical producers and

with the wide EPCA community the outcomes

their logistics service providers, which was

of intense preparatory work for EPCA CEO

followed up by a workshop in Brussels in June

Caroline Ciuciu and her team.

2018. This work was instrumental in identifying

Not that Ciuciu is daunted by the task. “It’s a

the level of awareness of digitisation within our

privilege and true pleasure to elaborate a

sector, the drivers for transformation, inspiring

programme that reflects the environment in

case studies and the change in mindset needed

which our sector operates, its challenges and

to reap the full benefits.

opportunities and to engage with all these seasoned

Building on that work, this month’s Annual

experts,” she says, referring not just to the list of

Meeting will focus on digitisation as an enabler

high-profile speakers lined up for the Annual

for a sustainable future. There are, Ciuciu says,

Meeting’s business sessions, but also the members

a lot of technologies and platforms already

of the Board of Directors and the three advisory

available that can be applied to improving

bodies (SCPC, TDIC and YETT) of EPCA itself.

operational efficiency, asset utilisation and

“We are pursuing our transformation journey

customer services, but digitisation can also

initiated in 2017,” Ciuciu says. She sees EPCA

bring other benefits and the Annual Meeting

not only as a major business network in Europe

will look in particular at the intersection of

for the sector but also as a ‘knowledge centre’

digitisation and sustainability, including eco-

and considers that this year is part of a

efficiency and other emerging practices.

transformational journey that the industry and the Association itself are on. “It is important to continue the journey,”

EPCA wants to support its member companies in identifying existing solutions that can improve processes and planning, again in collaboration

Ciuciu adds, “and to talk about the more

with Vlerick Business School, whose partner Ann

unusual developments that are coming.”

Vereecke will lead a ‘Digital Café’ workshop during the Annual Meeting where participants will be able to discuss their experiences and their needs.

PATH TO DIGITISATION

“I’m really enthusiastic about this programme,

Some of those developments have been

which will unfold some new developments

investigated through collaboration with academic

illustrating how digitisation is growing in scope

institutions, such as the work done with Vlerick

and magnitude and which will offer the possibility

Business School on digitisation in the

to discuss and shape a path forward together to approximately 90 delegates,” Ciuciu says.

Left: Caroline Ciuciu, EPCA CEO

Initiatives such as this are just one way in which

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16 EPCA

EPCA can support its members and, she adds,

in a session on the theme of ‘Petrochemicals:

within the industry and other sectors. It is not

there will be more to come next year.

An Industry where You Make an Impact!’.

enough to merely attract talent; industry has to

EPCA began work on a research study earlier

develop that talent in order to support it in its

this year in order to understand the main

transformation to meet the demands of a

TEACH THEM RIGHT

competencies and talents that define sustainability

sustainable future.

EPCA is also continuing to promote science,

leaders and to gather more evidence on the

technology, engineering and mathematics (STEM)

employee benefits of individual leadership,

education, not least through the European Youth

especially – for example – how it can attract and

Debating Competition, which will hold its Grand

retain talent to the industry and develop today’s

Finals during the Annual Meeting for the fourth

talent into tomorrow’s leaders. This new research

political and institutional renewal in the EU, with

year in succession. The Association is also part of

was triggered by the results of the EPCA study on

elections for the European Parliament, the

STEM Alliance, a cross-industry partnership

age diversity finalised in 2018 and by the

appointment of a new European Commission,

devoted to the promotion of STEM education, and

magnitude of sustainability challenges many

and the as-yet uncertain outcome of the Brexit

EPCA is participating in direct contact with

industrial sectors are confronted with, that

process. Amidst all that, there have been what

schools via webinars with teachers and students.

demand transformational changes requiring both

Ciuciu terms “game-changing investment”

reengineering of business and new social and

announced in the petrochemical industry in Europe,

leadership skills.

notably within the Antwerp chemical cluster.

Over the year several ‘online chats’ were organised by the STEM Alliance on the topic of STEM careers in the petrochemical industry, in

Led by Prof Wayne Visser, holder of the

TIME OF CHANGE

EPCA’s 53rd Annual Meeting comes at a time of

At the same time, several initiatives are

which several industry representatives

BASF-Port of Antwerp Randstad Chair in

flourishing within the industry and its strategic

enthusiastically participated.

Sustainable Transformation at the Antwerp

partners along the value chain to develop

Management School, this research involved

innovative solutions towards greater circularity.

and schools, fostering dialogues between

interviews with thought leaders in the

This is saving resources, enhancing the reuse and

students, teachers and industry representatives.

petrochemical and other technology sectors,

recycling of valuable products and assets, and

“This is ongoing work,” Ciuciu notes. She is very

together with a literature review. Prof Visser will be

reducing the overall environmental footprint of

enthusiastic about this mission and reports that

speaking again this year at the Annual Meeting

today’s society. EPCA continues to act as a hub

EPCA’s members are being both very supportive

and will share the final results during the renamed

where those interests can come together and

and contributive.

‘Talents of Today, Leaders of Tomorrow’ session.

write the next chapter of the European

EPCA is serving as a bridge between industry

EPCA’s Talent & Diversity Inclusion Council

The ultimate aim of all this work, Ciuciu

(TDIC) has explored this year ‘individual

explains, is to bring meaningful and inspiring

sustainability leadership’ and this will be reflected

perspectives from external experts, front-runners

HCB MONTHLY | OCTOBER 2019

petrochemical industry. How can the European petrochemical industry reinvent itself to continue to deliver sustained and

18 EPCA

sustainable economic growth in an ever-changing

“The planned increase of 30 per cent in freight

There is growing participation in EPCA’s three

economic and geopolitical environment? That

transport in Europe on the horizon 2030,

committees - the Supply Chain Program

question will be addressed in various ways during

combined with the requirements of the Paris

Committee (SCPC), YETT and TDIC – and Ciuciu

the 2019 Annual Meeting, with Ciuciu pointing in

Agreement in terms of greenhouse gas

says she is glad to see new members coming

particular to the opening session, where Nobel

emissions reduction by the same deadline,

forward to take part.

Prize-winning economist Paul Romer will expand

impose a reality check on the state of the

on his theory of the connection between

existing infrastructures and the measures that

regulation, innovation and growth creation.

need to be put in place to truly connect the two

Tom Crotty, director of INEOS Group, and

expressions of a challenging equation,” Ciuciu

ALL ABOUT THE PEOPLE

“We have gathered great people in these

Patrick Labat, senior executive vice-president

says. EPCA wants to identify where the

committees exhibiting a wide range of in-

Northern Europe, member of the Executive

bottlenecks are and how operators can

depth expertise and experience,” she says.

Committee Veolia will share their vision on the

come together to improve efficiency.

“These industry experts are the ones who help

contribution of the petrochemical value chain from upstream to downstream to long-term growth.

“We have to focus on what is ahead of us and

us build our yearly programme, put us in the

how each player can contribute to writing the

right direction and create inspiring projects

next chapter and continue the success of the

together. That is certainly a reflection of the

industry,” Ciuciu says. One part of that focus will

industry at large.” To support EPCA’s mission, several

FOCUS ON SUSTAINABILITY

be the closing lunch at the 2019 Annual Meeting,

Sustainability is also the focus of EPCA’s work in

where Pascal Lamy, former director general of the

professionals with complementary background

the petrochemical supply chain, which is, Ciuciu

World Trade Organisation (WTO), will address

have joined the team over the last two years.

says, “crucial to security supply”. A series of

topics of particular relevance at the moment, not

The latest recruit is Gerardo Ambrosecchia,

incidents over the last few years, such as the

least the future of trade relations in the current

who serves as project manager in charge of

Rastatt incident in 2017 which disrupted supply

polarised world.

SCPC and TDIC activities and projects, who

chains along the south-west rail corridor and

EPCA’s role is to support its members, identify

arrived on 1 July 2019. Bringing in diverse

throughout Europe, or the extreme low water

the upcoming hurdles as well as best practices

background and competencies is also part of

levels on the Rhine river in the second part of

and innovative initiatives, and share this

the transformation EPCA is going through in

2018 highlighted how key reliable, modernised,

knowledge within its wide community. And, as

order to continue meeting the evolving

efficient and well-connected infrastructures are for

Ciuciu says, EPCA’s members are recognising

expectations of the EPCA customers, its

the petrochemical industry.

the value in that effort and are playing their part.

more than 700 member companies. HCB

HCB MONTHLY | OCTOBER 2019

EPCA 21

PLAN YOUR JOURNEY COVESTRO’S DIRK VERSTRATEN, CHAIR OF EPCA’S SUPPLY CHAIN PROGRAM COMMITTEE, EXPLAINS WHAT HIS TARGETS ARE FOR THE DURATION OF HIS TENURE IN THAT ROLE

Dirk Verstraeten, director of global logistics

buzzword and takes off; those waves, Verstraeten

procurement at Covestro Deutschland, became

says, always start with the customer. In the case

chair of the European Petrochemical

of digitisation, those customers had become used

Association’s (EPCA) Supply Chain Program

to the practice of home shopping, with its live

Committee (SCPC) in November 2018. He took

tracking of parcels and seamless online payments.

over from Bertschi’s sales director Johan Devos,

In the chemical industry, such transparency has

who had been in the role for an unprecedented

historically been missing. “You put your cargo on a

five years, in a transition that normally sees the

ship and hope that it will get to the destination,” is

chair alternating between representatives of the

how Verstraeten explains it.

chemical industry and their logistics service providers (LSPs). “Although people come and go, the SCPC

But having picked up on that topic, EPCA went to work in its normal way, engaging with academia – in this case Vlerick Business School – and doing

team has the crème de le crème in supply chain

some research, before issuing a report (in 2018)

and logistics specialists both from

and following up with a workshop in Brussels in

manufacturing and service providers side,”

June 2018 at Vlerick’s site in Brussels.

Verstraeten says. “We were also very pleased to

It is, Verstraeten says, vital to work with an

see that the EPCA team has been enlarged with

external eye if EPCA is to generate value that its

the arrival of Gerardo Ambrosecchia as a project

members do not necessarily have the time or the

manager. The EPCA teams are getting stronger,

expertise to deliver. The Brussels workshop in

which allows us to create more value.”

particular led to lots of ideas and lots of talk.

Less than a year into his planned three-year

“It was a great event,” Verstraeten says. It also

term in the role, Verstraeten tells HCB that he

revealed that everyone is doing something in the

would like to identify a topic for the SCPC to

realm of digitisation, addressing their own needs

look at during his tenure; over the coming year

with the technologies available. Furthermore, it

EPCA and the Committee could engage with

confirmed the earlier research that indicated that

that topic; in his final year, he hopes to be able

the petrochemical industry is behind the curve, and

to deliver a report and implement a project

set some priorities for taking the process forward.

supported by EPCA.

Verstraten says he likes the way the conversation is going on digitisation and hopes to follow this up during his chairmanship, to see if

FOLLOW THE LEAD

So what is this big idea? As with all EPCA

digitisation will turn into a full-blown enabler for business transformation.

activities it is part of a journey, and one that was started by Johan Devos in 2017. Digitisation was one of those waves that starts with a

THE SUSTAINABILITY WAVE

This is where digitisation dovetails with the next Left: Dirk Verstraeten, chair of EPCA's SCPC

wave: sustainability. “The next big challenge could

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22 EPCA

very well be the circular economy,” Verstraeten

recognise that the characteristics of plastics – their

chain and, certainly when it comes to low river

says. “Just like digitisation, this new challenge

malleability and longevity – make them extremely

levels, they may also be related to climate change.

seems to be coming from customers. One just

useful in certain long-term applications. What is

There is certainly a connection with the idea

needs to observe the next generation and their

needed is greater awareness of the need to

of sustainability and this is the question that

behaviour and expectations. For sure this will

collect, recycle and re-use plastics at the end

Verstraeten would like to see answered:

trigger again attention and projects within the

of their initial life; the petrochemical industry

what potential is there for digitisation to

chemical industry and this could very well

has now established a $1.5bn fund to change

make a difference for sustainability?

change our supply chains.”

behaviour and teach industry and the public

The younger generation wants a circular economy with less (ideally no) waste and,

with the collaboration of Vlerick Business School,

“It’s a joint effort,” Verstraeten notes.

but the 2019 EPCA Annual Meeting provides an

potentially, no plastics. “That doesn’t fit with

ideal opportunity to take the conversation forward.

traditional ways of doing business,” Verstraeten says. “It’s scary – but important.” And it is

Some work has started on this question, again

how to handle and use plastics more responsibly.

To do that, it was agreed that it would be useful to WHERE RUBBER MEETS THE ROAD

hold a ‘Digital Café’ during the Annual Meeting.

Verstraeten’s time as the chair of SCPC will,

This concept was used to good effect at the 2018

industry, supplier of those very plastics to which

therefore, concentrate on the intersection of

workshop on digitisation in Brussels and will once

upcoming generations are so antipathetic.

digitisation and supply chain sustainability.

again be moderated by Ann Vereeke, partner at

The demands for sustainability present a

As with the focus on digitisation, this responds

Vlerick Business School.

big challenge to the chemical industry but the

to the concerns of EPCA’s members in respect

industry has to acknowledge the inevitability of

of structural and infrastructure issues in

series of short and tightly focused discussions in

the change, which is built into the mentality of

European transport: increasing road congestion,

a small round-table format, with strictly limited

younger generations, who merely want to use

the challenges presented by the existing rail

participation, with the aim of discussing the

things and see no reason to own things any more.

network, and low water on the Rhine.

impact of sustainability and climate change on

nowhere more important than in the petrochemical

The world is unlikely to do without plastics altogether and even environmental groups

HCB MONTHLY | OCTOBER 2019

Each of these factors impacts the effectiveness and efficiency of the European chemical supply

The Digital Café will create a framework for a

the chemical supply chain and identifying whether there is an intersection with digitisation. “We want

to see what the group feels,” Verstraeten says,

continued problems with interoperability have put

will be joined at the session by Jacques

“and though it may be early days perhaps we

a limit on how prepared the chemical industry has

Vandermeiren, CEO of the Port of Antwerp, which

can inspire our members to adjust their mindsets.”

been to embrace the rail mode.

hosts Europe’s largest integrated oil and chemical

“At the end of the day, we’re trying to provide a

It comes as no surprise, then, that the logistics

service to our members,” Verstraeten says. “If this

and supply chain business session during EPCA’s

cluster and the selected location of megainvestments for the sector. Vandermeiren will

is a topic they want help with, we will look more

2019 Annual Meeting will have a strong focus on

illustrate the strategic role that ports like Antwerp

deeply into it.”

rail, with presentations by Clemens Först,

play today in the security of the supply of the

spokesman of the board of Rail Cargo Group, and

European petrochemical industry, the supply chain

Bernhard Kunz, managing director of Hupac

of which is not only regional but global.

RAIL TO THE FORE

Group. Verstraeten says: “There is a lot of

One obvious route to delivering a more sustainable

development coming in rail, especially around

and actually one of the most efficient ways of moving

supply chain is the use of intermodal transport,

Antwerp,” which is timely given the planned

big material flows,” Verstraeten says, concluding by

which implies greater use of rail. But over recent

roadworks that will temporarily add to road

saying: “It’s a journey. We need to bring some value to

years, issues such as the Rastatt closure and

congestion around the port. Först and Kunz

EPCA members and open their eyes.” HCB

HCB MONTHLY | OCTOBER 2019

“We will also touch on pipelines as a valid alternative

EPCA 25

GATHERING THOUGHTS MEMBERS OF EPCA’S SUPPLY CHAIN PROGRAM COMMITTEE SPEAK TO HCB ABOUT GLOBAL TOPICS, LAST YEAR’S CONVERSATIONS AND THEIR PREDICTIONS FOR THIS YEAR’S EPCA ANNUAL MEETING

The European Petrochemical Association (EPCA)

There have been some incredible developments

THE ROLE OF SQAS

meeting provides chemical and petrochemical

in technology and operations since the last EPCA

manufacturers, future customers and logistics service

meeting, but there has also been the spectre of

The Safety and Quality Assessment for Sustainability (SQAS) is a cornerstone within

providers the opportunity to meet and discuss

issues old and new. Industry is always evolving and

the petrochemical industry, established by the

developments on key topics. The global chemical

EPCA’s Annual Meeting is the perfect opportunity

European Chemical Industry Council (Cefic) with

business community can network, collaborate and

for industry leaders to stay abreast and reflect

the aim of providing the best insight into the

receive expert insights from a line-up of world-class

upon international market developments as well as

current strengths of and ways in which future

speakers on topics that affect the industry daily.

technological and societal trends.

service providers might improve. Chemical

WWW.HCBLIVE.COM

companies can use the SQAS assessment reports during selection processes of new service

GET THE PEOPLE IN

Encouraging talent to the chemical industry is

providers and for evaluating existing service

nothing new and the problem has been

providers. SQAS reports are used to support

challenging. Members of EPCA mentioned their

the dialogue between chemical companies

concerns about the recruitment and retention of

and logistics service providers as part of a

talent at last year’s Annual Meeting and members

continuous improvement process.

are still discussing it today.

Peter Devos, managing director of the

“I believe the chemical industry is still very

European Chemical Transport Association

attractive for people to join, but the right initiatives

(ECTA), explains: “Alongside Cefic, ECTA has

need to be undertaken to improve upon it,”

created the SQAS Task Force. This has led us to

comments Leo Brand, global ICT director at Vopak.

put recommendations in place, some of which

“I think EPCA is doing well when looking at

have already been proposed to the SQAS

encouraging new talent to join the industry,”

assembly. We are very pleased to have the

says Jean-Marc Viallatte, vice-president supply

collaboration and SQAS remains a key pillar in

chain at Arkema. “Overall, the issue of recruiting

the responsible care programme. With the new

and retaining talent is getting far more visibility,

Cefic management team and the SQAS Task

leading to developments in finding the best way

Force we will be able to move forward.

to attract new employees.”

“With the Task Force, we agreed we had to do

“We need to present our industry in a more

something because, when looking at new

positive light to society,” says Arnet. “The chemical

organisations, from a procurement point of view,

industry is still seen as old-fashioned and harmful

they can ask ‘what is your score? Do you have a

to the environment, but this isn’t the case – we

certificate?’ We want to make sure it’s fully

need to do more to reflect this. This will be the first

understood and properly positioned in every

step to attract talent as people want a greater

company and we can move forward with a

sense of meaning in their professional lives and

common understanding and respect for the effort

see something good for the future generations.

being put in to responsible care.” “SQAS is very important for our industry,” says

“Industry needs to communicate in a more efficient way about its contribution to solving

Jan Arnet, Group CEO at Bertschi. “Most

complex global challenges, especially on social

recently, companies had to increase quality,

media,” Arnet adds. “This will require

particularly when market volumes were

collaborations and even financial investment

enormously high. Supply chain departments and

from businesses to target future talent. We need

procurement departments had to increase

to remember that this is not just about office

quality, which led to them wanting to do their

workers, marketing teams or customer services,

own audits of key suppliers. This slightly

it’s also about the drivers, terminal workers,

damaged the use of SQAS in the industry but,

production teams and more. Everyone needs

throughout the year, many businesses realised

to be encouraged.”

that SQAS was the best standard and the most effective tool to assess companies.”

“If you look back over the last year, everybody

Above: Peter Devos

was searching for talent in every discipline,”

Devos explains that there will be more publicity

adds Devos. “Resources to recruit have been

will require far greater digital skills, but also remote

from SQAS: “I think the problem with SQAS is that

scarce the past 12 months and I don’t think it

working can attract a different group of people to

is has been around for 25 years and people take it

has improved as they should have. People are

the industry which was not possible before.

for granted. Organisations and people are

still trying to fill vacancies and employment

changing, and we need to put SQAS back on top.

rates are low. Seeking talent and retaining

tank performing inspections without having to

Priority topics such as safety, security, compliance

people remain priorities, but will they still be

stop operations. It’s a huge development. We are

and responsible care are pivotal. However, during

priorities in six months?”

a strong believer in this kind of technological

busy times these topics tend to slip down the list.

Brand explains: “I think digitisation plays an

“In the future there could be a robot in every

development that stops people being at risk,”

We need to do this together, which is another

important part in making the industry more

reason why the Task Force is so important, to

attractive. The moment we are able to fully digitise

“The best advocate we can have is showing

make sure that this remains a priority while

our operations, we take people out of hazardous

that we are bringing in results. We are promoting

investigating new opportunities.”

environments as assets can be managed

supply chains by showing that we can make a

remotely. The workforce will become different as it

change,” concludes Viallatte.

“We still believe in SQAS,” Devos stresses.

HCB MONTHLY | OCTOBER 2019

Brand says.

EPCA 27

GOING DIGITAL

The implementation of digital solutions and connectivity in the industry has revealed

significantly higher interest in the topic itself in

is currently a project underway where each

recent months.”

business is transparently sharing their production

“There are plenty of digitisation projects going

plans. Not all details can be shared as companies

opportunities. Last year, EPCA members

on,” enthuses Viallatte. “Most of these are in the

often prefer to keep things to themselves in the

that were discussing how to prepare different

design stage but we have projects covering

development phase,” says Viallatte.

sectors of their businesses for digitisation

everything from track and trace to increased

are now speaking in terms of utilising the

integration and more. New means of collaboration

to share information and how much visibility should

new processes.

for teams internally have been developed in the

be provided, Arnet explains that “in European land

past 12 months. For us, this is a top priority. It’s

transport, the sharing of data can cover the

been incredibly busy.”

loading location, unloading location, volumes,

Brand says, “[2018] was a wake-up call. We told members that they really need to start developing and translating these new technologies

Arguably, the main hurdle to jump when wanting

When discussing the willingness for businesses

products and more. This is where companies get

to their business. Companies are definitely

to use digitisation as an industry-wide process is

hesitant to share their information. I predict that

becoming more knowledgeable and embracing

crafting a standard for the sharing of information.

sharing of data will become very common within

the initiatives on what they should actually do

“To some extent, companies have been more

just a few years. There is simply no alternative for it

when it comes to digitisation. There has been a

open to sharing data recently. For example, there

when going for supply chain transparency.”

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28 EPCA

Arnet believes that the conversations at this

Arnet continues: “The sharing of information is a

become a more mature discussion than previous

year’s EPCA Annual Meeting will shift to how

second step. I believe the first step is to discuss

years. I see different members recognising the

digitisation can be standardised. “Initially,

what kind of data should be exchanged and in

need for collaboration and sharing data, so they

digitisation can involve a lot of manual effort and

what format. Over the last 12 months businesses

are starting initiatives in this area. This is a very

processes until things can be succinctly shared.

have realised it isn’t as easy as it sounds to share

good sign, but how quick and successful it will be

We are busy trying to standardise data coming

information, as all of us – shippers, logistics

remains to be seen.

from our suppliers of all sectors to be put into a

providers, trailer operators – are working with

“As a comparison, eight oil and gas

format that can be used to inform customers.

different data. Even if the willingness to share

companies and four banks successfully

information exists, there is a way to go in finding

launched their community initiative in November

the best way to share information.”

to standardise data exchange. This has created

“It also depends on what people are talking about with specifics to digitisation. One needs to appreciate that if you are speaking to customers,

huge savings already as it would previously take

they are interested in visibility, trend predictions and alerts – it’s very end-goal focused. But if you

three months to close a deal, but it can now be SHARE THE EXPERIENCE

done in 10 minutes. Although initiatives in the

“I think the interest in discussing digitisation will be

chemical industry will be a little different, I feel

where the conversation changes to what type

higher at this year’s meeting and people will be

this is a nice example of what it possible.”

of data needs to be shared and in what way this

discussing their own experiences, struggles and

can be done.”

challenges with digitisation,” adds Brand. “It will

speak to the supply chain businesses this is

HCB MONTHLY | OCTOBER 2019

Below: Leo Brand

30 EPCA

the industry is predicted to continue. “As long as companies can deliver through their supply chains, they will succeed,” Arnet says. “People will need to wait and see how the recent global trade wars pan out – but this is a bit like predicting Brexit; impossible,” adds Devos. Arnet continues: “I think one of the big talking points at this year’s EPCA will be around climate change. I’m pretty sure this will affect our industry a lot, particularly when developing circular economies, as we are using oil as a main product. The more opportunities there are to do things such as reusing oil, the longer our industry will survive. This also ties in with retaining talent – if we can prove to society that we are circular, it will become far more attractive.” ECTA thinks that looking to the East is where the next chapter of the industry lies. “There are definitely new markets in Asia,” says Devos. “We are seeing a shift in manufacturing volumes towards Asia. From a chemical logistics point of view, third-party logistics service providers will follow this evolution. What we have to do as logistics service providers is to keep this market agility in mind as things can change rapidly. Markets are developing in Asia which can lead to new possibilities and a prime opportunity to see how the industry can adapt its trade links and learn new ways of conducting logistics and intermodal transport.” However, Viallatte says: “There is some opportunity with new routes opening towards the east, but it doesn’t seem to be a game changer and is more of a minor adaptation that businesses are accommodating. Looking at European operations, it still seems to be very western Europe-centric.” “Focusing on chemical markets, I think there is an opportunity for people to optimise the way in Above: Jean-Marc Viallatte

higher compliance, higher sustainability levels and

which business is conducted and logistical

more,” says Devos.

changes,” adds Brand. “Another topic of

“Digitisation within companies is a journey,”

conversation this year will likely be on the

Devos states. “It’s not something that you ever fully achieve because, as new technologies emerge, you need to search for new opportunities.

shortage of drivers across the industry.” LOOKING FORWARD TO TOMORROW

The concluding words from Brand are one of

The members of EPCA believe there is every

ambition and collaboration for those attending the

It’s not only about data and visibility, but it’s also

reason to be positive about the next 12 months,

Annual Meeting in Berlin: “My message to EPCA

about integrating new sensors and technology

even with the unknown implications of issues such

members would be to think in platforms and to

into existing systems to keep progressing. This of

as Brexit and continuing global trade wars.

take the initiative. In the end, all will benefit. Let’s

course takes time and is not something that will

Looking forward, Arnet hopes for “more agile

get rid of all the paperwork, the double processes,

happen overnight. Digitisation is a topic that, I

supply chains” to provide support for the

the double data entries and more. If all parties can

think, will be around for at least another four years

uncertainty that has been growing in the industry

get their acts together, this will be very beneficial

as it is an enabler to achieve a better service,

but is swift to point out the healthy consumption in

for all.” HCB

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34 STORAGE TERMINALS

CHANGE IS GONNA COME CONFERENCE REPORT • EUROPE’S TANK STORAGE SECTOR IS GRAPPLING WITH WHAT THE COMING ENERGY TRANSITION MEANS FOR THEM, AS FETSA’S ANNUAL MEETING HEARD THE FEDERATION OF European Tank Storage Associations (FETSA) held its 2019 Annual General Meeting in Tarragona, Spain on 12 June. It came at a time of great change, not just for the storage terminal industry and the global economy as a whole, but also for the Federation, as it marked the swansong of the organisation’s executive director, Marc de Witte, who was due to hand over the reins to Ravi Bhatiani two months later. The Port of Tarragona had arranged a somewhat surreal venue in the congress centre at the PortAventura theme park,

 THE PORT OF TARRAGONA IS ENERGETICALLY DEVELOPING ITS POSITION AS A HUB FOR THE CHEMICAL INDUSTRY IN THE WESTERN MEDITERRANEAN

HCB MONTHLY | OCTOBER 2019

just out of season, so proceedings were punctuated by the screams of thrill-seekers riding the roller coaster in Ferrari Land, but it did mean that delegates were able to get to the bar with no trouble and they had the restaurants more or less to themselves. The Port had also laid on a wonderful opening dinner in the tunnels of the Roman circus. The AGM featured a one-day conference, chaired by HCB’s editor-in-chief, Peter Mackay. It was opened by Eduardo Sañudo Sánchez, FETSA’s president, who explained the choice of his home town as the venue for the event: Tarragona is home to the main chemical cluster in southern Europe and, through its ChemMed initiative, is seeking to establish the same sort of position in the chemical supply chain as enjoyed by Antwerp and its neighbours in northern Europe.

More broadly, though, Europe has to be more efficient and flexible, and invest in human capital. Sañudo was pleased to see the petrochemical industry showing its confidence in Europe, with recent projects announced in Antwerp, Hamburg and Tarragona, and he noted that Europe is leading the way in developing the sustainable economy, an economy in which storage terminals will play an important role. More local detail was provided by Josep Maria Cruset, president of the Port of Tarragona and of ChemMed, who said the port is “ready for the future”. BRUSSELS CALLING But it was Blanca Andrés Ordax who really got the conversation going. Andrés, policy officer at the European Commission’s (EC) DG Energy, spoke about the ‘Energy Union’, the EC’s ambitious plan to accelerate the energy transition. The EC’s fourth report on the State of the Energy Union had been published on 9 April 2019, giving an update and overview of the Commission’s work on energy and climate and including the adoption of the Clean Energy for All Europeans (CE4AE) legislative package. More significantly for industry, EC has agreed the 2030 targets for greenhouse gas »

(GHG) emissions reductions, use of renewable energy, impact of energy efficiency and reduction in carbon dioxide emissions from road transport. The GHG emissions reduction target of 20 per cent by 2020 tightens to 40 per cent by 2030, and may yet be revised upwards. Carbon dioxide emissions from cars are expected to be reduced by 37.5 per cent, which implies widespread use of electric vehicles – with a potentially very significant impact on the volume of petroleum products to be handled at storage terminal facilities. Andrés laid out the legislative process to implement the CE4AE package, which has already led to directives on energy performance in buildings, the use of renewable energy, energy efficiency, and the governance of the Energy Union. Still to come, although expected this year, were directives on electricity generation and use, risk preparedness and the role of the Agency for Cooperation of Energy Regulators (ACER). The governance mechanism of the Energy Union is based on integrated ten-year plans in all EU member states to ensure that all national and EU-wide trajectories are aligned. The plans cover all dimensions of the Energy Union, including energy security, the internal market, inter-connections, and research, innovation and competitiveness. The ultimate aim is to achieve a carbonneutral Europe by 2050, which Andrés said is “challenging but technically feasible”. Indeed, EC has laid out a detailed plan of how to achieve it, based primarily on electrification in all sectors, increasing use of hydrogen as a power source in industry, transport and buildings, “deep energy efficiency” in all sectors, increased resource and material efficiency in a circular economy, and what is being termed ‘Power-to-X’ or P2X. This is the use of electricity to create ‘e-fuels’ based on renewable energy sources that can be applied in such areas as the heating of buildings, transport fuels, and ‘e-gas’ in targeted industrial applications and in the gas distribution grid. Adding in bio-energy with carbon capture and storage (BECCS) and lifestyle changes – which include alternatives to air travel and dietary changes – could deliver a complete removal of GHG emissions by 2050.

HCB MONTHLY | OCTOBER 2019

EC was at the time of the FETSA event seeking feedback from stakeholders prior to the new Commission taking office in November. “Nothing’s decided yet,” Andrés said. “There’s still time for input.” She was not short of input during the conference, being called on repeatedly to explain the plans in more detail and being offered plenty of advice on how the EC could improve its understanding of the idea of ‘carbon-neutral’. EMBRACE THE INEVITABLE That energy transition appears to be inevitable, at least in Europe. There is huge political backing behind it and industry – including the oil, gas and petrochemical sectors and their logistics service providers – will have to figure out how to work within this new framework. Some views on the necessary adaptation were given by Jorge Lanza Perea, CEO of CLH. “What are we going to do in 15 to 20 years when everyone is driving electric cars?” he asked. He also tried to put the EC’s Energy Union into a global perspective, noting that, while it’s great that Europe is taking a lead, Europe only accounts for some 10 per cent of global carbon dioxide emissions. Large parts of the world lack any access to clean energy – “it’s a global challenge,” Lanza said. The energy

sector will have to be able to guarantee a supply of affordable energy while maintaining environmental sustainability, he said; in order to resolve this “trilemma”, it will be necessary to develop energy policies with a global perspective. While it is clear that there will be a shift towards greater use of gas, we still need all available energy sources, Lanza said; that means oil will continue to be an essential part of the energy mix in 2040. And with the developing world catching up, and lower population growth in developed nations, there will be a shift in consumption away from Europe and North America towards South America and Asia. In other words, for those in the European energy business, the opportunities for growth lie in other parts of the world. CLH is aiming to adapt to the new reality by applying the latest technology in order to make it the most cost-effective and reliable supplier of energy to its customers. It will seek to minimise its environmental impact and reduce externally generated power consumption; it plans to facilitate efficiency access to energy where it is lacking, through investment in new infrastructure and by applying new technologies; and it will seek to diversify into new fuel streams, such as hydrogen.

STORAGE TERMINALS 37

ROOM FOR REFINERS A broader view of the European fuels sector’s approach to the energy transition was offered by Georgia Manno, senior policy advisor at FuelsEurope. She noted that 65 per cent of refinery output currently goes to the transport sector, with only 10 per cent used in the petrochemicals sector. Any major shift in the use of transport fuels will inevitably have a significant impact on Europe’s refineries but all sectors need to contribute to the energy transition, she said. There are, Manno added, no silver bullets when it comes to making the transition to low-carbon or carbon-neutral fuels. E-fuels and advanced biofuels will be needed in the transport sector, which means there will still be some demand for bulk liquids storage capacity. Indeed, a study carried out by Ricardo for FuelsEurope indicated that the use of low-carbon fuels can have a similar impact

on carbon dioxide emissions as a total switch to electric vehicles by 2050. FuelsEurope believes that the use of e-fuels, advanced biofuels and other measures, including carbon capture and use (CCU) and improvements in refinery efficiency, can deliver the emissions reductions being demanded. Not all electricity is ‘clean’ and the current use of electric vehicles often just shifts emissions from the tailpipe to the power plant. Manno offered a future scenario in which the refinery takes the place of an energy hub within an industrial cluster. While continuing to produce fuels (from crude oil, bio-feedstocks, carbon dioxide or wastes), residual heat can be distributed to homes and factories and, through the use of CCS/CCU, sustainable biofuels and low-GHG fuels and other products delivered to industrial users and consumers.

Manno urged EC to ensure that the role of refineries in producing low-carbon fuels is recognised in its industrial and technology strategies and to provide a policy framework that will give investors long-term confidence in the sector. She suggested to Andrés that EC amend its current strategy by adopting carbon dioxide credits for new fuel technologies and CCS in the period to 2030 and, in the longer term, to set a standard price for carbon across the economy, taking a lifecycle approach. A WAY FORWARD Further thoughts on the topic were provided by Matthias Plötzke, director general of the Mittelständische Energiewirtschaft Deutschland eV (MEW), a German trade association representing independent fuel importers, distributors, traders, suppliers and tank storage operators. He noted one problem with the current outlook on the energy transition: current electricity storage capacity in Germany is equivalent to only 41 minutes of demand. Despite this, the current conversation on future energies is skewed very heavily to electric vehicles. In addition, Plötzke said, it would be a “tremendous effort” to produce enough synthetic fuel to meet domestic demand. It would take a lot of investment and international cooperation, plus a sound business case. Where his argument was heading was for greater use of synthetic fuels: the replacement of fossil hydrocarbons with renewably produced hydrocarbons, using electrolysis and synthesis to combine hydrogen with waste carbon dioxide to produce methanol, methane, ammonia and synthetic jet fuel, gasoline and diesel. Such synthetic fuels would allow the use of the existing supply chain infrastructure and existing vehicle fleet – with some modification – and avoid the need for investment in largescale automotive battery manufacturing. He echoed Manno’s comments about the need for a global approach and a consistent price for carbon credits. »

 PORTAVENTURA’S FERRARI LAND PROVIDED A SURREAL BACKDROP TO THE FETSA MEETING

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38 STORAGE TERMINALS

Later in the conference, Marcel van de Kar, director of new energies at Vopak, brought the argument closer to home with a presentation on adapting the terminal business model to fit the new energy environment. “The link to society is crucial,” he began. Vopak sees its role as providing a conduit for vital products by connecting sources of supply and demand. But the world is changing – the global population is growing and people have new demands. Vopak has to change with the times. Furthermore, the world is embracing the energy transition: there is a global transformation underway, although it is not clear exactly how that will happen and how fast the change will take place. It will be different in various regions of the world: there is a need to end energy poverty and to provide access to electricity or clean cooking facilities to the 40 per cent of the world’s population that currently lacks them. At the same time, energy suppliers need to provide clean air by curbing emissions and to combat climate change. For Vopak, those changes mean that all its terminals around the world stand to be affected.

HCB MONTHLY | OCTOBER 2019

MAKING LIQUIDS One major hurdle in the energy transition is the lack of adequate infrastructure to distribute energy to the right location at the right price. That is where terminal operators such as Vopak can facilitate the energy transition, van de Kar said. In order to be able to do that, Vopak has to look at itself and reduce its own environmental footprint. Its current terminal portfolio will need to shift to be able to handle the right products in the right places, and that includes the new, lighter fuels that will be part of the solution. Hydrogen will be a vital element in the new energy picture, van de Kar said, but he was not sure how this would be handled. If it is to be a completely new solution, it will take time to get the infrastructure in place; but there are alternatives, such as the use of a carrier liquid, that could help accelerate the change. Vopak has to be prepared for any eventuality. Carbon capture and storage or use will be vital too. Plötzke had already brought ideas of electrolysis and synthesis to the meeting and van de Kar offered some illustrations

of how that might happen, for instance by cracking methane to generate hydrogen, while capturing the resulting carbon dioxide. He also addressed the shortage of electricity storage capacity, suggesting that this could be done through the use of charged liquids. Overall, though, it makes sense to electrolyse hydrogen where there is cheap electricity and ship it in some form to where it is needed. These ideas gave a strong impression that there will still be a need for tank storage companies, though they will need to reinvent themselves to cope with future fuels. It is noticeable, for example, that Vopak has lately put much of its effort into areas such as LNG and in hub facilities that are closely linked to industrial consumers. FETSA’s conference also featured presentations on the role of strategic storage, bunkering, digitisation and the role of automotive manufacturers in shaping the future of mobility. All these ideas will doubtless be pursued under the leadership of FETSA’s new executive director; it is worth keeping an eye on the Federation’s work at www.fetsa.eu. HCB

The port is working hard to improve its facilities and services to provide the safest and most sustainable operations. There is a safety strategic park inside the port facilities and a pooled service between the port and the chemical terminals to provide swift response in case of any maritime pollution. MED HUB DAY 2019 Tarragona’s annual Med Hub Day is a very important event for the port, and takes place this year on 21 and 22 November. This workshop, which is sponsored by

XL MED PORTS • THE KEY SPANISH PORT AT TARRAGONA IS INCREASING ITS CHEMICAL QUAY CAPABILITIES TO ACCOMMODATE GROWING MEDITERRANEAN DEMAND FOR BULK LIQUID FREIGHT

THE PORT OF Tarragona is one of the most important Spanish ports and a key location for Mediterranean trade. Located an hour along the Catalan coast from Barcelona, the port handles more than 32m tonnes of cargo per year – 19m tonnes of which is liquid bulk freight. Tarragona is aiming to consolidate its position as a Mediterranean hub for the production, storage and distribution of chemicals and petrochemicals and is seeking to capitalise on this sector by leveraging its relationship with the regional chemical cluster. This is done through the ChemMed Tarragona initiative, representing an industrial, logistic, academic and scientific cluster in the area.

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ChemMed comprises more than a hundred chemical companies (both manufacturers and service providers) and a first-rate cargo port. One of the key points of the cluster is the wide range of pooled infrastructure and services it has, which includes two combined-cycle power plants with a total capacity of 820 MW, reclaimed water supply, a pooled underwater sewage outlet pipe, extensive pipeline infrastructure for the transport and exchange of materials, and three pooled fire stations. Tarragona completed an expansion of its chemical quay in 2014, which is now almost all under concession. Its clients store a wide variety of products and are currently expanding storage capacity from 800,000 m3 to some 1.5m m3. There are three main competitive advantages that strengthen the position of Tarragona in the international chemical trades. It has plenty of expertise in the market, making Tarragona the epicentre of the Mediterranean chemical industry. It has deep draught access, allowing larger tankers to call, and offers berth-to-berth and rail interconnectivity. It is also efficient, offering round-the-clock operations and favourable weather conditions all year. Additionally, the port is connected to the local chemical industry by a major pipeline network, providing strong optimisation.

the Port Authority and ChemMed, has the main goals of presenting, analysing and discussing the potential the Mediterranean has to be a key regional hub for liquid bulk products. This annual meeting is dedicated to enhancing the potential of the Mediterranean region as a logistics platform for petrochemical products in order to become a regional hub for those products. Each year a range of stakeholders meet to discuss how to increase the competitiveness of the Mediterranean region. Topics for discussion at this year’s Med Hub Day will include current logistic routes, how costs can be reduced, improving delivery times and reducing CO2 emission. New production and consumer centres around the world will shift chemical trade flows and make the Mediterranean a key zone to optimise the petrochemical logistic chain on a global scale. The main benefits to be found from attending the 2019 event will be: • Learning about new liquid bulk flows to the Mediterranean area • Networking with prospective clients, peers and other stakeholders in the supply chain industry • Identifying business opportunities and areas of focus to improve competitiveness This event allows the Port of Tarragona to present its infrastructure as one of the main nodes in the Mediterranean for both chemical and petrochemical products. It also highlights that the port is an important player in the organisation of international events. HCB www.hubdaytarragona.com www.porttarragona.cat

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ADVANTAGE ANTWERP EXPANSION • STANDIC IS EXPANDING ITS STORAGE CAPACITY IN ANTWERP TO ACCOMMODATE A GROWING VOLUME OF CHEMICALS AS GLOBAL PRODUCT FLOWS RESPOND TO CHANGING DEMAND ANTWERP IS PROVING to be a magnet for investment in petrochemical production in Europe, its hub status and connectivity proving attractive to manufacturers. This is drawing in support from logistics service providers, particularly in the realm of bulk liquids storage. The latest proof of this is a plan by Standic to build a new terminal for the storage of chemicals. The new terminal is located in the 5th Haven dock, with plans for an initial capacity of 95,000 m3 ramping up to some 230,000 m3, doubling Standic’s capacity in the region once it opens in the first quarter of 2021. The Port of Antwerp handles some 235m tonnes of international freight annually and is also home to the largest integrated chemical

and petrochemical cluster in Europe. It is easy to see why Standic is looking to expand here, as Antwerp is a main artery and a continental hub for Europe, connecting with more than 300 liner services and 800 destinations. ANTWERP AUTOMATED Automation has become essential in the development of the most sophisticated and flexible projects and this new Standic facility is no exception. The most striking feature of the new state-of-the-art terminal, aside from full automation, will be the builtin sustainability features that have been specifically designed to meet customer requirements, such as onshore power for ships moored at the terminal. Additionally, large chemical tankers will be able to reach the terminal easily thanks to the favourable depth in the port. Much like the sister facility in Dordrecht, the Netherlands, Standic’s Antwerp terminal is being designed to focus on niche chemical markets and the distribution of chemical products. The Dordrecht facility is home to 163 tanks that offer 230,500 m3 capacity. It is planned that the storage tanks at 5th Haven Dock will vary in size from 500 to 3,500 m3.

“The Port of Antwerp is known as one of the largest maritime clusters in the world, which is why we chose it for our expansion,” says Ronald Ooms, managing director of Standic’s family-owned parent, Hametha. “We aim to build on our success with chemical storage and further expand it. In Antwerp we will be able to further develop in the niche market of more specialised chemicals and serve our customers from all over the world.” “The new Standic terminal will further boost the synergy between the various industrial companies in the port, thus helping to make logistic operations and processes even more cost-efficient,” says William Demoor, customer relations manager at the Port of Antwerp. “Furthermore, the location is ideal for multimodal access, a key factor for sustainable distribution of chemicals.” The Port of Antwerp has been pursuing a platform of sustainable development as a key part of its business plan, a concept that has been readily accepted by Standic. Environmental requirements and compliance have been at the forefront of the design process, ensuring that the lasting impact of the development is as minimal as possible. Part of this sustainable development includes improving the multimodal nature of cargo as even though Antwerp is famed for its accessibility by water – both by sea and by inland waterway – the location is highly favourable for rail transport. HCB www.standic.com

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READY TO ROLL STRATEGY • OILTANKING IS PREPARING ITSELF FOR THE ENERGY TRANSITION, SIMPLIFYING ITS STRUCTURE AND PUTTING IN PLACE A NEW MANAGEMENT TEAM THE GLOBAL ENERGY markets are experiencing a period of structural change due to a slowdown in global GDP growth, decreasing energy intensity and the energy transition. Operators of bulk liquids terminals all around the world are having to face up to that structural change and determine how best to face the future. One such operator, Oiltanking, has recently announced a new strategy to respond to changing market conditions. It includes internal restructuring and a focus on asset optimisation, which may result in further changes in its terminal network following the recent sale of its Tallinn terminal in Estonia to a local fuel distributor.

 INDUSTRIAL TRANSFORMATION IN THE OIL AND PETROCHEMICAL INDUSTRIES IS FORCING TERMINAL OPERATORS TO ORGANISE THEIR OWN TRANSFORMATION

HCB MONTHLY | OCTOBER 2019

The ‘Oiltanking strategy 2025’ has three main legs: • Maximising the value of current assets, including cost optimisation and “reshaping the portfolio” • Achieving profitable growth by prioritising projects with a focus on gas and chemicals, while also enhancing customer-centricity, and • Providing the necessary enablers in terms of safety performance and driving sustainability. “I am convinced that our strategy 2025 will pave the way to a sustainable future,” says Matti Lievonen, who took over as CEO of Oiltanking in April 2019. “In line with our strategic directions, we will focus on operational excellence, safety performance, project execution, and sustainability. I look forward to working with the new Oiltanking Management Team as well as with the entire organisation to make our new strategy a success.”

WORK OUT THE DETAILS To be able to deliver on the strategy, one key objective is to consolidate the regional structure in order to simplify and streamline the organisation. Instead of the current eight regions there will be three, more balanced, regions in future: Americas, EMEA (Europe, Middle East, Africa) and APAC (Asia Pacific including China and India). Furthermore, there will be four central functions: Finance (CFO), Portfolio & Strategy, Assets & Operations (A&O including HSSE) and Human Resources (HR). The heads of the new regions as well as the heads of the central functions will report directly to the CEO. The new management team, as from 1 October, comprises Lievonen (CEO), Holger Donath (senior vice-president Americas), Douglas van der Wiel (senior vice-president EMEA), Claas Pinkenburg (senior vicepresident portfolio and strategy), Yvan Tavernier (senior vice-president A&O) and René Anghel (CFO). Oiltanking is currently looking to appoint senior vice-presidents for the APAC region and for HR; van der Wiel will take interim charge of the APAC region. The new management team will collectively work out detailed strategic directions and related initiatives. Oiltanking plans to have the process completed by January 2020 at the latest and to then start full implementation. One project that perhaps indicates the direction that Oiltanking will be taking is its participation in the German LNG Terminal GmbH, alongside Gasunie and Vopak, which plans to construct an LNG import and distribution terminal in Brunsbüttel in northern Germany. The project has won interest from prospective customers and has the support of local and federal authorities in Germany. Pre-qualification EPC bids are due to be received by this month, with a selection due to be made early in 2020. Oiltanking, a privately held subsidiary of trader Marquard & Bahls, currently owns and operates more than 70 bulk liquids terminals around the world with a combined storage capacity of some 20m m³. HCB www.oiltanking.com

STRONGER TOGETHER NDT • AN INTEGRATED AUTOMATED PHASED-ARRAY ULTRASONIC TESTING SOLUTION HAS BEEN LAUNCHED BY EDDYFI TECHNOLOGIES, COMBINING TWO FLAGSHIP PRODUCTS USERS RELIANT ON non-destructive testing (NDT) now have an additional option as Eddyfi Technologies launches the RMS PA, a powerful new corrosion mapping solution that delivers high-resolution imaging without sacrificing speed. Users of the RMS PA will discover a complete system aimed at significantly improving data quality while reducing inspection times for nonintrusive inspections (NII) of critical assets. Detection capabilities of the latest innovation include corrosion, erosion and microbial induced corrosion with quantifiable, detailed defect characterisation. The new RMS PA integrates the robust field-proven RMS robotic scanning head – from Eddyfi’s Silverwing brand – with Eddyfi’s cutting-edge portable machine-to-machine (M2M) systems, Mantis™ and Gekko®. The RMS scanning head has enjoyed successful deployment on a variety of assets, including pressure vessels, pipelines, storage tanks and other critical structures. It has also been used in harsh environments such as those found in the oil and gas, offshore and mining industries. According to Eddyfi, its Mantis and Gekko units are “undisputedly the most innovative phased-array instruments on the market”. The M2M units are driven by Capture™ software that has been developed specifically to simplify the inspector’s workflow. Inspection setup is fast and easy as the RMS scanning heads are preconfigured within the system. Furthermore, streamlining inspection has been made possible by the RMS controls being embedded and functioning seamlessly with the software.

HCB MONTHLY | OCTOBER 2019

COMBINING STRENGTHS “Adding phased array to the RMS brings major benefits to its users, with a scanning speed up to 10 times faster than conventional systems at a 1 mm resolution,” says Stuart Kenny, general manager of Silverwing. “There is no longer a need to sacrifice resolution for productivity. In addition to phased-array ultrasonics, having the ability to supplement NII campaigns with real-time total focusing method imaging is a game changer within the industry. We are confident that the RMS PA will not only improve the data from NII inspections but will also reduce the inspection time and save money by shortening the timeline from inspection to report. It’s great to see the evolution of our flagship products and I’m excited about future technology developments.”

Current M2M Mantis and Gekko users can add automated corrosion mapping of assets ranging from 152 mm (6 inches) to flat plate to their inspection capabilities, while RMS owners can add phased-array capabilities to existing scanners. The new RMS PA complete solution features a detachable handheld manual scanner for the inspection of smaller areas and assets ranging from 101 mm (4 inches) to flat plate, allowing for improved manual corrosion mapping with M2M instruments. The RMS PA will be a welcome addition to Eddify’s diverse portfolio of NDT sensors, instruments and software for the inspection of critical components and assets in key industries such as aerospace, oil and gas and power. Eddyfi specialises in assisting original equipment manufacturers, asset owners and service companies to enhance productivity, improve personnel safety and protect the environment. This is achieved by pushing the limits of advanced NDT to new heights by featuring various NDT modalities and investing in product development. Currently, Eddyfi serves customers in more than 110 countries, employing more than 460 people in 10 centres of excellence and sales offices, all staffed by NDT experts. HCB www.eddyfitechnologies.com

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BOTTOM LINE BOOST “The business case for these products is crystal clear,” adds Michelle C Ystad Eriksen, global marketing manager – HPI. “If we consider, for example, a large refinery with a capacity of 400,000 barrels per day – if that has the possibility to return tanks to operation after two days instead of a week then it can refine an additional 324 million litres of crude oil. This is the power of TankFast. “It demonstrates that the choice of tank linings isn’t simply a maintenance issue, it’s a core business decision, with real impact on

GET BACK TO WORK COATINGS • JOTUN IS AIMING TO SAVE TERMINAL OPERATORS MONEY WHEN THEY NEED TO RE-COAT TANKS, BY HAVING THEM UP AND RUNNING MORE QUICKLY THAN EVER

JOTUN, ONE OF the global leaders in paints and coatings, has launched TankFast, a range of tank linings formulated to allow bulk liquids storage tanks to return back to service quicker than ever before, with excellent chemical resistance capabilities. “To optimise earnings our customers need to ensure tanks are fully operational,” comments Miles Buckhurst, global concept director – hydrocarbon processing industry (HPI) at Jotun. “Even with spare tanks, storage and transportation flexibility and profit potential are diminished when one or more has to be taken out of service. At Jotun we have recognised that the industry needs to keep tanks in service, and our answer is

TankFast, allowing tanks to return to service faster than ever before while retaining the optimal level of protection. We see this a clear win-win for our global customer base within these highly competitive segments – segments where peak efficiency and productivity are absolutely critical to success.” The TankFast range consists of a number of specially tailored products, such as Tankguard SF, allowing for wet-on-wet application, and Tankguard Plus, allowing for up to 50 per cent faster paint application and curing, which together give significantly shorter shutdowns, getting tanks in the refinery, petrochemical and chemical sectors back into service quicker than ever before.

bottom lines. We’re looking forward to helping our customers realise this potential.” Not only does the Tankguard range provide the basis for the TankFast concept, it also offers different formulations to handle different materials. For instance, zinc silicate coatings are appropriate for use with alcohols, ketones and other solvents; vinyl ester coatings are best for biofuels, acids and aggressive chemicals; and epoxy coatings are suitable for use with alkaline solutions, vegetable and mineral oils (depending on acidity) and some biofuels. Phenolic epoxy coatings are used in high temperature applications. This range of capabilities is part of Jotun’s overall thinking on HPI coatings. “Our mission is to identify and focus on the needs of our customers by offering practical, easy to use products, proven to provide solutions wherever protection is in demand,” the company states. “The longer the lifetime of a coating the greater potential for savings. Correct choice of coating system can ensure time saving benefits and a correct lifetime of the system, reduce maintenance and shutdown time and less chance of system failure.” Jotun is an acknowledged leader in providing protective coatings to the chemical and oil and gas industries. The firm, which is headquartered in Sandefjord, Norway, has supplied innovative, high performance solutions to customers in these specialised markets for more than three decades. HCB www.jotun.com

 JOTUN AIMS TO PROVIDE THE BEST COATING AND GET TANKS BACK INTO SERVICE AS FAST AS POSSIBLE

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NEWS BULLETIN

STORAGE TERMINALS

KOOLE CONSOLIDATED

Institutional investors advised by JP Morgan Asset Management have taken full ownership of Koole Terminals Holding BV after acquiring the 49.99 per cent of the company owned by Canadian investment funds. “A wholly owned structure will give us a clear mandate to execute the Koole Terminals’ strategy while maintaining our commitment to delivering a high level of customer service and safety performance,” says Koole CEO John Kraakman. Meanwhile, in anticipation of the introduction of restrictions on the sulphur content of marine fuels from 1 January 2020 – the ‘IMO 2020’ rule – Koole Terminals and Maersk Oil Trading have announced an agreement to produce low-sulphur bunker fuel at Koole’s Rotterdam terminal. Production of IMO 2020-compliant fuel will take place in the petroleum industrial distillation (PID) unit at the site (above), which Koole acquired from Odfjell in September 2018. “Koole Terminals continues to explore opportunities to contribute to a sustainable society,” says Kraakman. “One of the initiatives is to utilise our PID unit for producing environmentally friendly transportation fuels. We are proud to partner with Maersk and

HCB MONTHLY | OCTOBER 2019

produce a low sulphur bunker fuel to support the reduction of sulphur emissions in order to reduce air pollution.” Annual production is expected to cover between 5 and 10 per cent of Maersk’s annual fuel demand. “Our activities with Koole will be an important driver in ensuring stable, reliable services for Maersk’s customers during a potentially volatile period for global shipping,” says Niels Henrik Lindegaard, head of Maersk Oil Trading at AP Moller–Maersk. koole.com FIRM HALF FOR RUBIS

Rubis has announced first-half EBIT from its Rubis Terminal operation of €24m, an 11 per cent increase over the first half of 2018. “Storage operations are proving very resilient in 2019 and business has stabilised after a difficult year in 2018,” says the company, although its operations in Turkey have been hampered by disruption to Iraqi oil flows and the absence of contango. Rubis notes that it spent €29m in capital projects during the first half of 2019, adding to chemical capacity in Rotterdam and adapting capacity for bitumen at its Dunkirk site in northern France. rubis.fr

LBC IN GOOD HANDS

LBC Tank Terminals has appointed Frank Erkelens as its new Group CEO. Erkelens has outstanding international leadership experience in the tank terminals and logistics sector, most recently as CEO of Odfjell Terminals. He will take up the reins on 15 October, succeeding Walter Wattenbergh, who retired from LBC on 30 September. Haroun van Hövell, chairman of LBC Tank Terminals, comments: “During nearly five years with the company, Walter has successfully led LBC through a significant turnaround by streamlining the business and refocusing on growth initiatives in order to better serve client needs. We are very grateful to Walter for the many contributions he has made. Having known Frank for many years, I am delighted that he will be joining us as the new CEO. His vast experience, track record and strong reputation will be of great value to LBC. Frank will build on Walter’s legacy and steer the business through the next phase of its strategic development.” Frank Erkelens says: “It is a privilege and I am very excited to lead LBC into the next phase of its development and to deliver long-term growth and value creation. Under the leadership of Walter, LBC underwent a substantial

STORAGE TERMINALS 49

turnaround and the company is well positioned to capture the growth opportunities in the markets it is serving. With the support of LBC’s strong shareholders and together with the team at LBC the focus will be on delivering value for LBC’s customers, shareholders, partners and employees, as this will continue to drive LBC’s success and growth in the future.” www.lbctt.com OFFER FOR TALLGRASS

Tallgrass Energy LP has received a non-binding proposal from Blackstone Infrastructure Partners and affiliates to take full ownership; Blackstone and the other sponsors currently own 44.2 per cent of Tallgrass Energy shares. Tallgrass is to set up a conflicts committee to consider the offer, noting that the proposal is only preliminary and does not constitute a binding agreement. www.tallgrassenergylp.com KMI OUT OF CANADA

Kinder Morgan (KMI) has agreed to sell its 70 per cent holding in Kinder Morgan Canada Ltd (KML) to Pembina Pipeline Corp in exchange for some 25m shares in Pembina, equating to just under 5 per cent of Pembina’s common equity. The deal also includes the US portion of the Cochin Pipeline and is expected to close late this year or early in 2020. KML operates an integrated network of crude storage and rail terminals in Edmonton, Alberta, and the Vancouver Wharves Terminal in British Columbia. “We believe KML’s assets will be a great fit with Pembina’s business and this transaction is highly beneficial to KML’s shareholders,” says KMI chairman/CEO Steve Kean. It will also allow Kinder Morgan to reduce debt and create additional value for shareholders. Kinder Morgan has meanwhile announced a $170m investment in a series of projects to increase efficiency, add product liquidity and enhance blending capabilities at its Pasadena and Galena Park terminals on the Houston Ship Channel. The work focuses on butane blending at both sites, MTBE blending at Pasadena, and new inbound pipeline connections. The work at Pasadena, due for completion in second quarter 2020, is supported by a long-term agreement with

a major refiner for approximately 2.0m bbl of refined petroleum products storage capacity at the terminal (below). “These projects speak to Kinder Morgan’s continued commitment to excellence and to improving our already best-in-class facilities along the Houston Ship Channel,” says John Schlosser, president of terminals for KMI. “The announced improvements only serve to enhance our position as the market-leading refined petroleum products storage hub on the US Gulf Coast. This offers our customers unmatched supply optionality and liquidity and modal efficiencies as they aim to maximise storage and blending economics and access domestic and global energy markets in the most cost-effective manner possible.” www.kindermorgan.com MARATHON CONNECTION

MPLX has finalised the acquisition of Andeavour Logistics, creating a large and diversified midstream company. The general partners of both master limited partnerships (MLPs) are owned by Marathon Petroleum. “The combined entity will have an expanded geographic footprint which we

believe enhances our long-term growth opportunities and the sustainable cash flow profile of the business,” says chairman/CEO Gary R Heminger. “We are confident about the midstream growth and value-creation opportunities that exist across this combined platform in the best basins in the US.” www.mplx.com MORE FOR JOHOR

Local reports say that the Johor Port Authority has signed a deal with Smart Crest to build a 1.2m-m³ oil terminal in Tanjung Pelepas. The ‘Bunker Island’ terminal will be equipped with 61 storage tanks, two jetties and seven berths and will offer both oil storage and bunkering capacity. The project, which was originally mooted some 17 years ago, has the support of Malaysia’s transport ministry. It also appears to replace Smart Crest’s Asia Petroleum Hub project, announced in 2016. The Bunker Island terminal is expected to be fully operational in four years’ time, although it could start operations in two years once the first phase of development is complete. www.johorport.com.my

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will be further developed in a structured manner. Fixed time frames will be used for larger, regular movements, so as to give more stability. The MPET and DPWorld terminals for their part have promised to raise the minimum number of teams for barge handling. This means that at least eight teams at MPET and six at DPWorld will be available during weekdays. Finally, the Barge Traffic System (BTS) is being expanded with the addition of a function that will inform barge operators proactively about how busy the terminals are, with automatic notification being given whenever demand exceeds supply.

GET OUT OF THE ROAD BARGING • ALTERNATIVES TO ROAD TRANSPORT HAVE TO BE EFFICIENT IF THEY ARE TO BE USED. THE PORT OF ANTWERP IS CONTINUING TO ENHANCE EFFICIENCY IN BARGE OPERATIONS THE PORT OF Antwerp is focusing on improving the sustainability of port operations, which involves moving away from road transport, reducing emissions from businesses operating in the port, and improving efficiencies in intra-port activities. One aspect of this focus is the aim to reduce the volume of road transport by 4 per cent in favour of barge transport between now and 2030. The Container Barge Action Plan focuses on consolidation, digitisation and efficient scheduling, so as to streamline the transport of goods of all kinds and foster

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collaboration between shippers and their various logistics partners, including barge operators and container terminals. Last year the Port of Antwerp established an initiative to increase efficiency in the use of barges for moving containers into and within the port. As part of the port’s focus on improving sustainability, it had determined that there was a lot of inefficient use of barges, which were moving well below capacity and taking up valuable berth space. That initiative is now being taken forward, following a series of positive evaluations. The barge handling capacity within the port has been expanded by eliminating the shortage of dock labour and setting aside special berths for container barges. Specifically, the barge quay at DPWorld was handed over in June 2019, and an additional berth for barges will enter service in the course of 2019 at PSA Europa terminal, quay 869. The project set up last year for the central planning and monitoring of barge movements was unanimously evaluated as positive, and

FINESSE THE DEAL Last year’s initial project has been amended somewhat this year; as from 1 September this year, the minimum call size has been reduced to 20 moves per shipping terminal and the subsidised hubs in the port (ATO and PSA 667) will no longer operate. On the other hand the consolidation hubs in the hinterland, where containers are gathered to maximise barge utilisation, will continue to operate at the current rate of subsidy. In the area of digitisation, NxtPort has developed the ‘Next Mode of Transport’ and ‘Green Lights’ use-cases, which will shortly be given the go-ahead for testing. The main feature of these projects is that information will be shared at an earlier stage, enabling all parties to make gains in efficiency. As the fifth and last component of the barge optimisation initiative, the period during which container barges can benefit from reduced laytime charges has been extended from 36 to 48 hours as of September 2018. In this way Port of Antwerp seeks to meet the demands of the barge industry. The barge efficiency initiative sits as part of a broader portfolio of work to stimulate a modal shift, particularly away from road transport, as Antwerp in particular is suffering from the effects of road congestion. In April this year the Port of Antwerp held its seventh Mobility Event, where it presented a series of new initiatives. One element of that is the promotion of shortsea shipping for goods moving to or from other European countries, as far afield

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as Spain and Turkey. Furthermore, with the spectre of Brexit looming, shortsea transport offers a promising alternative to trucks travelling to and from the UK as it involves fewer customs formalities. The Port of Antwerp has ambitions for rail too, and is aiming to double the proportion of goods carried by rail from 7 per cent to 15 per cent by 2030. Together with Railport and Infrabel, the Port is focusing on making more efficient and flexible use of the existing rail capacity in the port. This will be achieved thanks to among others the Rail Traffic System, a digital trial project for exchange of information between the rail players and the terminals. “As a community builder we are working together with the port community to achieve an accessible port. We are working on various interesting transport alternatives both for goods and for people, in order to guarantee the accessibility of our port in a sustainable way,” says port alderman Annick De Ridder. GROWTH AT A PACE Initiatives of this sort are vital if Antwerp is to continue to operate efficiently and effectively, given the continued increase in freight volumes through the port. Total freight volumes rose by 0.7 per cent in the first half of this year, with container volumes

(in TEU terms) up 4.9 per cent. There was a drop in liquid bulk throughput of 6.4 per cent, concentrated in petroleum products, with the port saying that the slowdown in economic growth and large fluctuations in oil prices caused uncertainty among traders. Conversely, crude oil and chemical volumes were well up on the year earlier. Commenting on the half-year figures, De Ridder says, “Antwerp is continuing on its growth trajectory despite the current international climate. We are particularly proud that once again we have been able to achieve record figures in important segments. These figures once more underline the need for additional container capacity. I am fully convinced that together with our port companies and other partners we will continue along this growth path.” GOOD NEIGHBOUR That growth has implications for the port’s relationships with its neighbours and the Port of Antwerp has put in place a number of initiatives, two of which were recognised at the International Association of Ports and Harbours (IAPH) World Ports Conference in China in June. One of these is an initiative to raise the level of safety in the port in collaboration with the Neighbourhood Information Network (NIN) Knowledge Base,

the Safety department of the Interior Ministry and local police forces. “Thanks to this port-wide network, information is passed on more quickly and efficiently regarding current matters of concern such as cyber-crime, thefts of copper, spying with drones and so on,” explains Kathy Dua, Port of Antwerp’s safety and security consultant. “The police are able to intervene much more quickly and companies are able to protect themselves better. The network is used to pass on not only urgent messages but also preventive information. This information is provided by safety departments, the police, customs and other authorities and is drawn up in consultation with them. Here at Port of Antwerp we coordinate the network and keep the list of contact details up to date.” The Port of Antwerp is also participating in an initiative set up by the City of Antwerp, ‘Civitas Portis’, which in turn is part of the Civitas network of cities dedicated to cleaner, better transport. “This award is welcome recognition which positions Port of Antwerp as the driving force behind mobility solutions. The European collaboration project helps to draw international attention to initiatives such as the Water Bus, which can only be a good thing,” says De Ridder. HCB www.portofantwerp.com

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HANDS IN POCKETS MARKETS • SHIPPERS AND TRADERS CAN EXPECT TO PAY MORE FOR THEIR OCEAN FREIGHT AS FUNDAMENTALS SWING BACK IN FAVOUR OF CHEMICAL AND GAS TANKER OWNERS IT HAS BEEN a long dark time for vessel owners in the chemical tanker business over the past decade. The market was full of optimism ahead of the 2008 financial crash and the orderbook overhang when demand suddenly evaporated persisted for several years. It is only now that the oversupply of vessels is beginning to unwind, due to a combination of a recovery in vessel demand and supply-side factors such as the scrapping of older vessels and restricted new contracting. Things have been somewhat different in the gas tanker sector, with new LPG export streams from the US and the Middle East adding to tonne-mile demand, especially for larger vessels but also, thanks to growing regional trades and the need in Asia for

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transhipment from VLGCs to supply many ports, smaller semi-refrigerated and fully pressurised ships. Furthermore, conditions remain bright. Odfjell notes, for instance, that the volume of new organic chemical production capacity due to come onstream in the US and Middle East over the coming year could add a further 5 per cent to overall tonne-mile demand, while on the LPG side new export projects in the US are continuing to provide new employment and support newbuilding orders in the VLGC sector. OUTLOOK FOR CHEMICALS The other factor that needs to be taken into consideration is the arrival on 1 January 2020 of the new restrictions on sulphur oxides

emissions from vessels – the so-called ‘IMO 2020’ rule – the impact of which is still uncertain. It is clear that there is likely to be an increase in the cost of bunkers as some owners switch to low-sulphur grades, and owners will do their best to pass these cost increases on to their customers. Furthermore, the cost of retrofitting scrubbers means that more older ships are likely to go for demolition, reducing vessel supply. Odfjell also notes that owners may resort to slow steaming to reduce emissions and IMO 2020 could also reduce the volume of swing tonnage in the chemical trades due to emerging petroleum product movements to ensure the right bunker fuels are available in the right place. All of this means one thing for cargo interests: higher freight costs. Stolt Tankers’ view on the chemical tanker sector is unequivocal: “The slowdown in new chemical tonnage entering the market, supported by increasing chemical demand and positive movements in the product tanker market, should improve fundamentals in the chemical tanker market for the next few years and provide upward potential for freight rates,” the company said in its halfyear results commentary. “The orderbook decreased from 11 per cent in June 2018 to »

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7 per cent in June 2019. Without newbuilding orders, the demand growth is expected to absorb the fleet growth over the coming year. “New chemical production in the US Gulf and Arabian Gulf is expected to increase chemical shipment demand, though impact on specific markets is uncertain considering the potential impact of protectionist policies.” Stolt agrees with Odfjell that IMO 2020 could improve utilisation in the product tanker market and result in swing tonnage moving out of the chemicals arena. LARGER GAS VOLUMES Matters are rather more complex in the LPG shipping sector. Record exports of LPG from the US in the first half of this year, as more shale gas-sourced product has become available and terminal operators have added to capacity, have supported a significant upturn in freight rates for VLGCs and, for once, this has had a knock-on effect in the large and medium-sized gas carrier segments. Exmar notes that the small orderbook in the midsize sector, combined with rising cargo volumes of both LPG and ammonia, have resulted in stronger freight rates. “This upward trend in the market seen in recent months is expected to continue during the remainder of 2019 and 2020,” the operator says. Navigator Gas says there will be a lag before this effect trickles down to the Handysize sector, where it is the strongest player, and that this segment has also been negatively impacted by global trade wars, with a number of its vessels having to exit the Venezuelan cabotage trade as a result of US sanctions. Furthermore, while the LPG market strengthened, the first half of this year saw the usually more consistent petrochemical gas market faltering in the face of a series of unforeseen events that restricted exports and terminal availability around the world. Navigator Gas also points to a “larger than average turnaround season” in the chemical industry in Europe during the first half, which on the one hand increased demand for propylene imports – around 90,000 tonnes was moved in the second quarter alone – but a loss of butadiene availabilities for the EuropeAsia trade. The company says it expects to

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see Handysize carriers moving more into LPG trades as the year continues. SMALL FRY One perhaps surprising impact of the surge in US LPG exports in recent years has been its impact on the smaller gas carrier sectors. While much of this is due to a vibrant regional market in the Caribbean and on trades to South America, Epic Gas reports that there were two long-haul exports to West Africa carried on fully pressurised ships. Furthermore, the smaller gas ships have been kept busy east of Suez by strong import demand across Asia, and particularly in Thailand and Vietnam, as well as in South Africa. Propane and propylene imports into China remain strong, as the continued increase in propane dehydrogenation (PDH) capacity is outstripped by downstream demand. Epic Gas also notes the impact on vessel demand from ship-to-ship operations, which have remained strong this year: it carried out 73 such operations in the second quarter, following on from 358 in 2018 as a whole, and notes an increase in the number of operations carried out in the Indian Ocean and East Africa.

Despite this strong demand, operations in the fully pressurised segment in Asia are currently being adversely affected by uncertainties arising from the US-China trade war. Michael Jolliffe, chairman of StealthGas, says the pressurised market in Asia “presented a relatively tough second quarter for shipowners” with charterers reluctant to conclude or renew period contracts. He does, though, believe that the Asian market will soon correct itself. Without a repositioning cargo, owners will be reluctant to move their vessels back west of Suez, especially if they are anticipating a recovery. What that means is that vessel supply will remain tight in the European market, with little downward pressure on rates. Cargo interests cannot expect any help from shipowners in reducing their costs any time soon. HCB

 BOTH THE CHEMICAL AND LPG TANKER MARKETS ARE BENEFITTING FROM RISING MARITIME TRADE, WITH MORE EXPORT-ORIENTED PRODUCTION CAPACITY DUE ONSTREAM SHORTLY AND CONTINUED STRONG IMPORT DEMAND IN THE EMERGING ASIAN ECONOMIES

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NEWS BULLETIN

TANKER SHIPPING

Annette Hasenberg has taken on the role of executive vice-president, supported by three senior vice-presidents: Howard Powers, Anders Hannested and Niels Mathiesen. Nordic Tankers’ offices in Copenhagen, Stamford, Houston and Bogotá will be kept running and, once fully integrated, MOLNT will be headquartered in Singapore. “The MOLNT business and trade lanes are of high value and a very important part of our core business and ambitious plans to grow MOLCT into being one of the most attractive and leading chemical tanker companies worldwide,” says Watanabe. www.nordictankers.com MARINVEST ON METHANOL

MORE TANKERS FOR THUN

Thun Tankers has named its new 18,000-dwt dual-fuel product/chemical tanker Thun Venern, one of six sister ships ordered by Thun and its partners in the Gothia Tanker Alliance. The vessel, designed by FKAB in cooperation with Furetank Rederi, can be powered by LNG and is ice class 1A. Steel-cutting for the seventh vessel in the series, due for delivery in November 2020, has started at AVIC Dingheng. Earlier this year, Thun Tankers took delivery of its second ‘L-class’ chemical tanker, Thun London, also built by AVIC Dingheng. These 18,650-dwt, IMO II tankers are also trading in the Gothia Tanker Alliance. Thun Tankers has also placed an order for a ‘not always afloat but safely aground’ (NAABSA) product tanker. The 4,250-dwt unit, to be built by Ferus Smit and delivered in October 2020, will be used to call at tidalrestricted ports under a long-term agreement with the UK-based Geos Group. “The NAABSA vessel being built by Thun Tankers for our own requirements will help

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strengthen our NWE physical market position,” says Barry Newton, Geos Group’s managing director. “The new vessel will allow us to focus on enhancing our position as the most reliable bunker supplier in our market by bringing in additional ship-to-ship capability as well as the option of supplying more niche ports. This is an exciting opportunity for us and our clients alike and can only strengthen our partnership with Thun Tankers and take us into a period of strong partnership and growth together.” thuntankers.com MOL INTEGRATING NORDIC

MOL Chemical Tankers has begun the full integration of MOL Nordic Tankers, acquired in January, and expects the process to be completed during 2020. “We see this full integration as a natural step towards further developing our business to the benefit of our customers,” says MOLCT. Per Sylvester Jensen, CEO of Nordic Tankers, and its CFO Henriette Schütze, have now departed, with Tsuneo Watanabe, CEO of MOLCT, taking on the same role at MOLNT.

Marinvest has taken delivery of its two latest newbuildings, Mari Couva and Mari Kokako, from Hyundai Mipo Dockyard. The 49,000dwt IMO II tankers, designed for the transport of methanol, chemicals and products, are equipped with MAN B&W’s ME-LGIM dual-fuel engines capable of running on methanol. The new tankers have joined seven existing methanol-fuelled tankers Marinvest has under charter to Waterfront Shipping. Marinvest says there are many advantages to using methanol as a marine fuel. It is one of the most widely traded chemicals and is available at major ports around the world. It is safe, bio-degradable and burns clean, meeting the most stringent environmental regulations. “In addition to IMO 2020-compliant SOx emissions and the ability to meet Tier III NOx regulations without exhaust after treatment, methanol can also provide a pathway to meeting future carbon emission reduction targets when it is produced from renewable sources,” the company says. www.marinvest.se ABS GIVES JUMBO THE NOD

ABS has granted Approval in Principle (AIP) for a 165,000-m3 ‘Jumbo’ ethane/ethylene

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carrier design. The concept, developed by Daewoo SME, uses IMO Type B cargo tanks constructed of high-manganese austenitic steel, which Daewoo says is more cost-competitive than nickel-alloy steel and provides increased reliability and a more robust containment. “We are proud to support development of this concept, which is the latest in a long line of innovations in gas carrier design that ABS has helped to bring to the market,” says Patrick Janssens, ABS vice-president for Global Gas Solutions. “ABS is committed to facilitating innovations in vessel design which advance safety and drive efficiencies for the industry.” ABS has reviewed the safety, suitability and feasibility of the Type B cargo tank design based on information supplied by DSME to confirm the system would comply with current ABS Rules. ABS and DSME have previously collaborated on Joint Development Projects assessing the viability of high-manganese steel for cryogenic applications. ww2.eagle.org STEALTHGAS SLIPS

StealthGas has reported first-half adjusted net income of $2.33m, up from the $1.60m posted a year ago, which was impacted by a significant

impairment loss. Adjusted EBITDA dropped from $33.6m to $32.1m, reflecting the disposal of a number of older vessels over the period. Stealthgas’s pressurised LPG tankers operating in Asia experienced what chairman Michael Jolliffe describes as “relatively tough” conditions due to the US-China trade war. “Charterers in the region were reluctant to conclude or renew period contracts, thus forcing vessels to operate in the spot market at low rates,” despite high utilisation, he notes. Over the second quarter, StealthGas has moved into new market segments, acquiring an 11,000-m3 pressurised LPG tanker currently under construction for 2021 delivery and, through a joint venture, a 38,000-m3 fully refrigerated vessel. www.stealthgas.com SCRUBBERS FOR SOLVANG

Solvang has taken delivery of Clipper Eris, last of four 21,000-m3 ethylene carriers built by Hyundai Mipo. Solvang says these ships are the first fuel oil-fuelled ethylene carriers to be Tier III compliant, being equipped with hybrid exhaust gas cleaning systems. Up to now, exhaust gas cleaning has only been cost-efficient in special emission control

areas (SECAs) but, Solvang says, the introduction of the ‘IMO 2020’ rules on sulphur emissions on 1 January 2020 will mean that all vessels will need to either be equipped with exhaust gas scrubbers or run on marine gasoil or other low-sulphur distillates. Solvang believes that on a ‘well to wake’ basis, scrubbed heavy fuel oil gives some 10 to 15 per cent lower CO2 emissions than marine gasoil operation. The new vessels are optimised for both short- and long-haul trade, with a fuel capacity together with exhaust gas cleaning to allow them to sail for more than 50 days without bunkering. “Compared to our previous vessels, this is about 50 per cent increase in cruising range,” Solvang says. They are also fitted with a ‘high-lift’ rudder combined with an integrated ‘swirl generator’ that increases propulsion efficiency. This rudder design also provides maximum manoeuvrability at low speeds. Solvang has installed cargo plant based on its decades of experience in the ethylene trades, which shorten cool-down times by up to 20 per cent compared to earlier versions. Solvang is due to take delivery of the last of its current newbuilds, a Panamax VLGC, this month, which will take its fleet up to 27 ships. solvangship.no

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pressure. “Furthermore,” Burtscher adds, “we are working on the ability to measure the filling level inside the tank.” Additionally, the sensors can be adjusted accordingly to suit clients, meaning critical upper or lower violation limit triggers can be altered depending on a tank’s contents. If this is not the first time that a particular cargo has been in transport to a particular destination, the data collected on previous journeys can be used to optimise logistic processes. Data collected by the sensors can be seen – almost in real time – through Smart Portal,

SENSOR SENSIBILITY DIGITISATION • HOYER CONTINUES TO ROLL OUT THE SMART TANK CONCEPT ACROSS ITS FLEET, AND IS ALSO FOCUSING ON REDUCING THE ENVIRONMENTAL IMPACT OF ITS TRANSPORT OPERATIONS

IT WAS IN May 2017 that Hoyer began digitising its tank container fleet, launching the Smart Tank concept in response to client expectations and the growing availability of the appropriate technology. Rolling out the Smart Tank concept across the Hoyer tank container fleet, which currently numbers 40,347 tanks, has been a massive task but the company reports that more than a third – some 15,000 – tanks are now equipped. Hoyer describes the digital transformation of its fleet as “the centrepiece of the intelligently networked logistics management”. The sensors fitted to the tank containers continuously measure important set parameters, with

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information and warning systems and its own online portal ensuring optimum load monitoring and a variety of analysis options. “We are happy to announce that more than 15,000 tanks are equipped smart already,” says Stephanie Burtscher, communications manager at Hoyer. “Our plan is to equip further tank containers until the end the year. By the end of 2019 we aim to have fitted approximately 22,000 containers.” One issue for Hoyer is the challenge of updating a fleet of this size, operating around the world. However, Burtscher explains, the fitting of the sensors is taking place at more than 30 locations worldwide. “The majority of the equipping is being undertaken internally by Cotac,” she says. It is expected to take up to three years to finish the task. GET YOUR DATA HERE The technology being installed includes a sensor that will be attached to the heating conductor to accurately measure the heating or cooling system temperature, a sensor determining location via GPS and GSM, a non-intrusive sensor to measure product temperature and a sensor for measuring

which has been optimised for both desktop and mobile devices and can be mapped in the customer’s own IT system via interfaces. One of the main benefits of Smart Portal is that it simplifies operational monitoring and control of logistics processes, ultimately eliminating the need to manually create and update complex summary tables. “Smart technology reports deviations in critical load values, thus guaranteeing even greater safety, security and product quality from loading to discharge,” says Burtscher. “With our technology we focus on controlling the products in order to ensure safety and quality. In combination with information and warning systems and its online portal, Smart Tank ensures optimum control of load and predictive analysis options.” With the addition of Smart Portal, fleet management has attained a new level that includes detailed information about fleet status. Accurate documentation of idle or turnaround times can be used to increase the fleet’s utilisation rate and avoid empty repositioning. Smart Tank and Smart Portal can therefore make logistics not only more cost-efficient but also more environmentally friendly. Burtscher concludes by saying: “Smart Logistics is the future-oriented continuation of our quest for transparency, reliability, quality, safety and security in a dynamic market and competition.” LESS IS MORE Continuing on the theme of environmentally friendly developments, Hoyer has enlarged its fleet with a number of LNG- and CNG-fuelled vehicles. Hoyer currently operates seven CNG-

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fuelled vehicles and the two new LNG-fuelled vehicles will assist attaining emission targets of reducing CO2 by 25 per cent per tonne/km by 2020. The new vehicles produce 15 per cent less CO2 and 60 per cent less nitrogen oxides, offer drastic noise reduction and use 15 per cent less fuel than a comparative diesel counterpart, even those with Euro 6 low-emission engines that currently make up 96 per cent of the trucks used by Hoyer in Germany. “As experts in transporting gases liquefied under pressure and cryogenically, we ensure gases of all kinds are transported safely and smoothly on a daily basis,” says Thomas Hüttemann, managing director of Hoyer’s Gaslog business unit. “The growing LNG market has an especially positive effect on the balance sheet of our business. Not only transporting these alternative energy sources but also driving with them ourselves immediately was therefore a logical consequence for us.”

Hoyer is also investigating using electrically powered cars to reduce its environmental impact. However, the market does not yet offer any adequate solutions for heavy trucks of the kind required by Hoyer. Furthermore, the fact

that a service station network for alternative energies equipped to handle these vehicles is not yet available in many countries represents an additional obstacle. HCB www.hoyer-group.com

STATE OF PLAY BUSINESS • IN HIS REGULAR ANNUAL REVIEW OF THE TANK CONTAINER SECTOR, DAVID KEW OF M&S LOGISTICS REPORTS ON SOME THREATS TO SAFETY AND SECURITY THE PAST YEAR has highlighted some unwelcome trends in the global tank container industry, a sector that has become increasingly important in the worldwide trade in liquid chemicals but one that is as open to external risk as any other. Its customers search for ever greater cost reductions and alternatives, while macroeconomic and geopolitical machinations make it ever harder for tank container operators to plan for continued business success. Recent expansion of the tank container fleet has been founded at least in part by low prices for newbuild tanks offered by manufacturers in China. But that has its downside. “There has been an increase in the number of start-up logistic service providers who, having got their

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hands on some tank containers, start operating without consideration of proper procedures or a regard for the safety of the operations, never mind the acquiring of sufficient and fit for purpose insurance,” says David Kew, managing director of M&S Logistics. That has had a knock-on effect, with existing players in the market having to cut costs to compete. “Even among established providers, there has been cost cutting where technology is used to reduce human overheads, resulting in a loss of expertise in handling hazardous cargoes.” FEEL THE SQUEEZE On a broader basis, the current global market conditions have been putting pressure on

margins both for chemical manufacturers and their logistics service providers (LSPs). “Unfortunately, the last decade has seen this at the cost of safety and integrity of the supply chain,” Kew says. “This downward pressure has led to some producers and suppliers cutting corners. We have seen an increase in the mis-declaration of cargoes and in some cases a reduction in the inclusion of inhibitors and stabilisers.” That loss of expertise, already pinpointed by other voices in the tank container sector, puts the excellent safety reputation of tank container at risk. There has already been a reported increase in the number of cases where pitting corrosion has affected the internal surfaces of tanks – which, being made of stainless steel, are impervious to most forms of corrosion. But more significantly, there have been some high-profile containership fires, not least the MSC Flaminia incident in 2012, which is thought to have been caused by the improper handling of divinyl benzene. Kew also points to a number of others, including those involving the containerships Eugen Maersk (2013), Hansa Brandenburg (2013), APL Austria (2017), MSC Daniela (2017) and

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Maersk Honam (2018), in which fires broke out due to the improper handling of improperly declared dangerous goods. One outcome of these incidents has been greater regulation, most recently the imposition of new restrictions and provisions for the carriage of polymerising substances, including special provision 386 in Amendment 38-16 of the International Maritime Dangerous Goods (IMDG) Code. BIN THE BAG Kew is keen to stress the environmental credentials of tank containers, especially in contrast to other, competing methods of moving liquids in bulk. In a world where there is a growing momentum towards the circular economy’s mantra of ‘re-use, recycle, remanufacture’, a stainless steel tank with more than 20 years’ worth of life in it avoids many of the issues that apply to short-life or single-use packagings.

What’s more, tank containers have been shown to be highly resistant to damage. Even during the disastrous explosion and fire in the port of Tianjin in 2015, tanks that were caught up in the incident kept their integrity, despite serious damage to the frame and cladding. The chemicals in those tanks were ruined by the high temperatures, but they did not leak. That level of performance is in sharp contrast to the flexitank, which has become increasingly popular for the movement of nonhazardous goods. But these are merely large plastic bags, most of which are incinerated or sent to landfill after a single trip and suffer regularly from leaks in transit. “With the state of the environment and the global push to reduce single use plastics,” says Kew, “the question has to be asked if the perceived savings are worth it?” Kew is adamant that chemical shippers and their LSPs should not be derailed by financial headwinds. “While there is a need

to build more sustainable partnerships both from a safety and environmental standpoint, we know global growth is slow and we’re heading for still more tough times,” he says. “While margins remain under pressure and we all continue to strive for reduced costs, we would do well to remember the words of the English writer and economic mind, John Ruskin: ‘The common law of Business Balance prohibits paying a little and getting a lot. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better’.” HCB www.mslogisticsltd.com

 PROPERLY LOOKED AFTER AND OPERATED, TANK CONTAINERS OFFER THE SAFEST AND MOST COSTEFFECTIVE MEANS OF MOVING LIQUID CHEMICALS IN BULK

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MAN OMAN EXPANSION • AS THE USE OF TANK CONTAINERS IN THE MIDDLE EAST CONTINUES TO GROW, JTS HAS GROWN OUT ITS BASE IN JEBEL ALI WITH A NEW FULL-SERVICE FACILITY IN OMAN JOINT TANK SERVICES (JTS) has been the at the forefront of expansion, innovation and the introduction of new technologies to the Middle East over the last 20 years. The first JTS depot was established in the Jebel Ali Free Zone (North), next to the DP World container terminal, in 1998. Today, the JTS Jebel Ali depot covers a total area of more than 28,000 m2, has storage capacity for 1,800 empty tank containers, can stack tank containers five high and provides lifting capacity up to nine tonnes. Customers include both major tank container operators and leasing companies. “At a time when tank containers were not well known or used in the Middle East,

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the partners of JTS saw a great potential to offer the first professionally run, tailor-made facility dedicated to cleaning, repair, storage and support services for intermodal tanks,” says Pasupathy Swamy, general manager of JTS. “Coupled with the growing regional hub potential, professional environment and services offered by the Jebel Ali Free Zone Authority (JAFZA) and DP World made this a winning combination.” ALWAYS EXPANDING Throughout 2010, JTS underwent a major change, kickstarting further growth and laying the foundations for some dynamic years ahead. Part of that was the decision to relocate from Jebel Ali Free Zone North to South. “The new team recognised the performance and potential this business model offered and therefore approved the construction of a new facility,” says Pasupathy. “The direction of the new facility was not only to consolidate existing services for the tank container industry, but also to expand our portfolio by developing business offerings directly to the chemical industry in segments such as chemical drumming, warehousing and distribution.” JTS’s package of services now includes cleaning tank containers, intermediate bulk containers (IBCs) and road tankers, covering

even difficult cargoes such as resin and synthetic latex, and the testing and repair of tank containers. The repair services are diverse, including structural and shell repairs; statutory IMO testing; tank surveys, inspections and checks. Furthermore, JTS offers its customers offsite technical assistance, the handling and storage of empty tank containers, tracking and coordination assistance, and leasing and full transport logistics. “We maintain a very high standard and are equal to the major depots being operated in Europe,” says Pasupathy. “Our key strengths are our customer-centric approach, one-stop solution for all tank container requirements, a highly competent team of people well versed with regulations and codes of practice, and a standardised and refined process that ensures high quality services along with competitive prices.” JTS is the first facility in the Middle East to be quality (ISO 9001:2015), environment (ISO 14001:2015) and OHSAS 18001:2007 certified and SQAS assessed. LOGISTICS AND DEPOTS The new JTS Chemical Logistics division (JTS Chemlog) became operational in July in Jebel Ali. It provides storage of full tanks »

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with Class 3, 4.1, 6.1, 8, 9 and non-hazardous cargo, as well as drumming, warehousing of both hazardous and non-hazardous chemicals and distribution. Eric Chan, head of JTS Chemlog, highlights JTS’s strengths as an integrated chemical logistics provider and specialist in chemical logistics: “Our new facility is equipped with filling stations to help our customers repack their products from bulk to smaller packages, such as drums, IBCs and more. Our full tank open storage areas are completely selfcontained and fitted with fire detection systems. “We are able to reduce order cycle time and deliver better inventory management solutions for our clients, thus creating cost savings for them. Meanwhile, our customised warehouse management system is designed to serve our customers.” The thinking behind JTS Chemlog is clear: “We feel that such value-added services need to be part of the package if you want to be a one-stop chemical hub,” explains Chan. The new depot in Oman, JTS (FZC) Sohar, is a 100 per cent subsidiary of JTS-Jebel Ali. Set in the Sohar Port Free Zone, the facility has an area of 32,000 m2. Of this, 10,000 m2 has been developed to handle the expert cleaning, repair, testing and storage of both full and

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empty tank containers. Operations officially began in the middle of September. Following on from this, a second phase will be developed for drumming and warehousing at the site. The reasons behind these developments are a response to the growth of Oman’s petrochemical industry. The Sohar facility currently has capacity for 180 empty and 60 full tank containers and can handle T50 gas tank containers as well. MEETING A NEED R Elavarasan, depot manager at the new Sohar facility, says: “Uncompromising commitment to quality, health, safety and environmental issues is the greatest strength of JTS. JTS has brought invaluable experience and expertise acquired over two decades to our new facility. This facility is equipped with state-of-the-art machinery and all tank container needs are offered under one roof. It is important that the Sohar facility is also approved by Civil Defence for storing laden tank containers that contain Class 3, 4.1, 6, 8 and 9 items. JTS identified the need for a logistics service provider at Sohar that can provide all the services that are required for tank containers, laden tank container storage and transportation.”

Elavarasan explains further that location is one of the key features for the Sohar facility. “Sohar port has become an ideal transhipment centre between east and west,” he says. “The new facility is aimed at serving the Qatar and local market. The new highway that connects Sohar and Saudi Arabia also links existing roads to the UAE, further increasing the potential of Sohar port. Our existing customers are keenly looking forward to using the services that are to be offered in JTS Sohar, as it will greatly reduce the repositioning costs for the operators and for Qatar exporters.” According to Elavarasan and other JTS staff, a key factor setting JTS apart has been its investment in people: “This has enabled the building of an experienced and skilled workforce that delivers expressed and implied customer requirements every time.” Finally, inkeeping with the environmental prowess of the Jebel Ali facility, the Sohar facility has had an in-house wastewater treatment plant designed and installed to greatly reduce the impact on the environment. This commitment mirrors that of Jebel Ali, where wastewater is being treated to irrigation standard and used for plants. HCB jts.ae

• Product spillages • Both scenarios simultaneously “These tests are done with the help of a specialist company that prepares the ‘danger situation’ simulations. During these tests, the instructor checks that the driver performs the operations correctly, following the rules received,” explains Mattozzi. However, being a part of a simulation and theorising about scenarios is only part of the training. Video and photographs of previous incidents, such as the explosion involving a road tanker in Bologna in August 2018, are

DRIVING SAFETY HOME TRAINING • IN ORDER TO PROVIDE THE HIGHEST LEVEL OF SERVICE TO CUSTOMERS AND ANSWER THEIR QUESTIONS, CHEMICAL EXPRESS FOCUSES ON RIGOROUS SAFETY TRAINING AND VEHICLE STANDARDS

CHEMICAL EXPRESS HAS just celebrated its 40th anniversary, a wonderful milestone for any business. The key to its success with growth and customer retention is put down to an engrained attitude towards safety and being able to ensure the highest levels of safety for people and products in transport. “When I meet a new customer for the first time, they usually ask me ‘how can you guarantee that our chemicals will be transported in a safe way?’ or ‘how do you train your drivers to handle difficult situations and emergencies, such as fires or product spills?’,” says Francesco Mattozzi, account

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manager at Chemical Express. “For Chemical Express, safety must be the main element of the transport service in order to protect all people involved and the environment, and making staff aware of any potentially unsafe situations or, in case of dangerous situations happening, how to deal with them.” PRACTICE MAKES PERFECT Training for individuals includes a comprehensive evaluation of potentially dangerous scenarios that they may encounter and how to react appropriately. Nevertheless, in addition to the theoretical knowledge, Chemical Express insists its employees must show they have the ability to carry out required emergency operations with competence, swiftly and securely. “For many years, Chemical Express has arranged regular practical tests in order to verify drivers’ skills. If they have previously had training in an area, the tests are refresher training to show they are familiar with handling it correctly,” says Mattozzi. The dangerous situations that Chemical Express simulates with its team include: • Fires

used as case studies and examples of how swiftly – and easily – disasters can strike. “Drivers must understand that even the smallest distraction can cause terrible accidents,” says Mattozzi. “For this reason, headsets and seat belts are mandatory, and the use of mobile phones during driving is absolutely forbidden. Drivers are subject to continuous checks from our company and in the event that the drivers are discovered to contravene these rules, disciplinary sanctions are enforced.” Additionally, there are further training programmes employed by Chemical Express for its drivers and employees that are designed to reduce the factors that contribute to disasters. These courses include: • Defensive driving • Use of personal protective equipment • Working at heights “Therefore, when I’m asked how we can guarantee safety during transport I reply: ‘By being aware of the dangers, by implementing a continuous training programme, by utilising the most advanced technical safety equipment, but above all, transmitting our corporate safety culture to all the employees and the drivers. We ensure it is applied in all daily activities, even the simplest ones. Espousing our vision and putting safety first all our staff is how we are able to assure safe transport for our customers,” says Mattozzi. KITTED OUT It is not just proper training that gives its customers peace of mind, but also the standards of the vehicles and equipment that Chemical Express uses to avoid dangerous scenarios and create a safe environment.

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“Our vehicles are equipped with advanced emergency braking systems, lane departure warning systems and are compliant with EC Regulation 661/2009 for trucks. There are walkways with anti-slip surfaces, handrails, air valves with a ground operator, lifeline for tank containers and more,” says Mattozzi. “However, the bit that is of most importance is that the training is both theoretical and practical for the drivers.” Chemical Express, founded in 1979, offers tailor-made solutions by road, rail and sea to all its customers. Thanks to its flexible vehicle fleets, Chemical Express is able to meet the different needs of customers across Europe, with a concentration on liquid chemicals and industrial wastes, and products requiring temperature control. HCB www.chemicalexpress.it

 CHEMICAL EXPRESS BELIEVES GOOD TRAINING IS VITAL IF ITS EMPLOYEES ARE TO PROVIDE A SAFE SERVICE

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THE ITALIAN JOB LOGISTICS • MARCEVAGGI GROUP DEMONSTRATES WHAT IT TAKES TO KEEP AHEAD OF THE CURVE IN A VARIETY OF MARKETS ACROSS EUROPE WHILE ENFORCING BENEFICIAL BUSINESS CULTURES MARCEVAGGI GROUP, A family-run service provider for logistics in the Mediterranean, is continuing to expand and evolve with the digitisation age. Led by Emanuele Remondini, the son of founder Mario Remondini, Marcevaggi has amassed more than 500 staff, more than 2,000 pieces of equipment and handles more than 3.5m tonnes of freight a year. Divided into two sections that focus on specialised logistics – Star and Levorato Marcevaggi (LM) – the company is able to cater for and provide expertise across distinct markets. Star is the side of the business that handles chemical logistics, while LM manages oil and gas logistics. Markets continuously evolve and the whole Marcevaggi Group is championing flexibility and creativity to adapt and thrive – two traits it claims are very strong in Italian culture – as it seeks to improve on the €140m turnover it recorded in 2018. MEDITERRANEAN MOVERS Over the last five years, Star has focused on its road sector and began renewing its tank container fleet in order to provide enhanced integrated solutions. This was a response to the fleet age and improving maintenance, but also to take advantage of developments in road technology. Since the start of 2019, Star has been investing in LNG trucks for its domestic markets. Across Europe there is a growing momentum in switching vehicles

 MARCEVAGGI’S STAR CHEMICAL TRANSPORT UNIT IS MAKING INCREASING USE OF INTERMODAL TRANSPORT TO MOVE PRODUCT ACROSS EUROPE

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from diesel to electric/LNG fuel, something Marcevaggi Group believes will transform the European economy and is a factor that logistics companies need to take advantage of. Respect for nature and the environment is now a cornerstone of Marcevaggi culture, so much so that this respect is being displayed on its newest trucks. Over at LM, the vehicles host banners of fluffy clouds on pristine blue skies, while Star’s vehicles will be sporting luscious green hills from 2020. Two years ago, Star entered a joint venture with PIR Group, a leading tank storage business in Italy. Thanks to this partnership, Star and PIR are growing their portfolio of services to the chemical industry, particularly for the Italian market. New developments

include providing several solutions in intermodal and road transport, intermediate storage, sea and inland storage and rail car transport spanning all of Europe. Star has a particularly strong standing in Italy, Poland and Turkey thanks to its own direct European branches. The group also holds minority shares in the main international railways and is investing in shifting to rail transport for intermodal projects. Furthermore, facilities and offices have been renewed to nurture the best work environment and attract talent from across the industry. This has been coupled with strong development in management in order to grow the size of business units. Star boasts a 98 per cent SQAS score and is dedicated to improving HSSE standards in all its business units. According to Marcevaggi Group, even though improving HSSE is becoming a “must” for the industry, there is a definitive value in improving HSSE for those working in the supply chain and this needs to be recognised. Finally, Star is following suit with the new digitisation progresses that are sweeping the industry by investing in its own IT ERP system. This system is connected to the new open standard platform for EDI connections and track and trace software. HCB www.marcevaggi.com

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BIGGER IS BETTER DESIGN • JOINT WORK BY VAN HOOL AND BASF TO DEVELOP LARGE TANK CONTAINERS FOR IN-PLANT AND RAIL APPLICATIONS IS CONTINUING AND MOVING FROM LIQUIDS TO GAS TRANSPORT

BELGIAN TANK CONTAINER specialist Van Hool is in the final throes of developing a 52foot tank container capable of handling a wide range of gases. The work is the latest element in a multi-year project that began with the realisation by BASF that in-plant logistics at its massive Ludwigshafen chemical production site in Germany were constrained by the reliance on rail tanks to move product from the main rail terminal around the plant to various loading/unloading points. It was quickly realised that the simple action of decoupling the tank from the bogie

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would remove much of the inefficiency being experienced. However, BASF could not give up the size advantage of rail tanks and needed something much larger than any tank container yet built. “The design began two or three years ago at the BASF Ludwigshafen factory, based on liquid tankers,” explains Kris Dobbelaere, sales and business developer at Van Hool. “BASF found there was a lot of inefficiency surrounding internal transport with the existing rail tank cars.” Separating the tank from the bogie not only removed that inefficiency but also opened up new possibilities for tank design and construction, bogie design (including the use of autonomous vehicles) and the use of the tanks for product storage. “The tank containers are built in cooperation with BASF, but initially began as a new logistics concept formed by BASF and we were asked to take part i n a joint development. There is a joint patent on the design of the tank container,” Dobbelaere says.

TO FIT THE FRAME To meet the needs of the Ludwigshafen site, the initial work concentrated on tanks for liquids and only more recently has moved on to the more specific challenges posed by a tank for pressurised gases, although the basic design parameters remain the same. BASF needed to replicate the tank car in terms of its size and maximum gross weight (75 tonnes), but to do so in the form of a tank container that could be removed from the bogie and be stacked six high. “With these parameters in place, we were able to begin designing the tanks and the frames that could gain approval for ADR/ RID and more,” says Dobbelaere. The newly developed gas tanks are based on those same principles but are adapted in order to handle eight specific gases moved at Ludwigshafen. “Although the products did not need a working pressure above 10 bar, for safety reasons we decided to design a 27-bar tank. This provides extended possibilities for the future,” says Dobbelaere. Although the design was inspired by the in-plant needs at Ludwigshafen, BASF quickly started to think about how the new tanks could be used to move product between plants, which raised a whole new »

set of considerations. “During the process another limitation was having to achieve the G1 Profile to ensure safe passage through bridges, tunnels and other structures,” adds Frank Bolte of Van Hool’s commercial sales department. “The tanks can be built to other specifications [outside of G1], but they will then be limited to the rails they are able to use.” WITHIN THE RULES Dobbelaere explains some of the engineering challenges Van Hool faced in the development of the new BASF-class tanks: “The frame design is very specific to be able to cope with the increased weights when considering the stacking ability from a static point of view, but also from a dynamic point of view when thinking about the daily operations on rail. There were several designs for the new frame that drew on our decades of experience in building for rail. The design that satisfied the parameters best was then built and thoroughly tested. “The process involved in designing and approving a new tank container takes years before actually becoming traffic,” Dobbelaere continues. “Fortunately, as international legislation surrounding tank containers is very clearly explained, therefore, within those limitations, it speeds up optimising and modifying designs. The question of designing the new gas container was brought to us at the end of 2018 and the first prototype was present during the Transport Logistic fair in Munich [June 2019].

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“We have planned the designs for dangerous goods within the existing regulations,” continues Dobbelaere. This has had an impact on the equipment of the tanks as the provisions in RID for rail tank cars differ from those for demountable tanks. “There was close cooperation with the authorities on this project so every party will learn and further develop from this, possibly leading to changes in regulations,” he says. The sheer size of the tanks means that there is little potential for them to be used on the road, although they may be moved empty by road in order to get to maintenance or cleaning depots. They are also moved by road within the Ludwigshafen site and Van Hool designed a skeletal to move empty tanks. “BASF has also decided to have an automated guided vehicle that is able to handle these tanks,” says Dobbelaere. “We have extra safety features added to provide more stability for the vehicles when considering on-site movements.” “It is possible for the tanks to be carried by road via the skeletals, but it’s not the core aim as there is a maximum allowed weight,” adds Dobbelaere. “There is no use in using a tank this large with only 20 m3 of product in it; that removes the advantage it was designed for.” FINDING A MARKET These new tank designs do not stand in isolation. Their size limits their applicability to large-volume product flows, which means they are not suitable for supplying end users.

Rather, they are designed for in-plant logistics, storage and B2B business within the chemical sector. The advantage of the new system is that no significant investment will be needed to handle the new tanks. For example, reach stackers able to handle 75-tonne containers are available in the market. “Chemical companies like BASF and logistics frontrunners see the advantages of the new system compared to conventional rail tank cars. They are already building up a new intermodal network with terminals in Antwerp, Hamm, Ludwigshafen, Schwarzheide and Tarragona able to handle 75-tonne containers – a new segment in intermodal traffic across Europe has been born and is growing,” says Dobbelaere. Van Hool believes that the financial savings offered by the new equipment will far outweigh the level of investment needed and that it will prove to be cost-effective. “The main purpose of this type of equipment is to improve and change the rail logistics related to tank transport, specifically for the big flows of chemical commodities,” says Dobbelaere. The new tanks will increase flexibility and the speed of loading and unloading compared to using rail tank cars, and it is the users of such tank cars that will be the target audience for the new tanks. However, convincing what is a rather conservative industry of the benefits of change may not be so straightforward. “During the first presentation of the liquid tank containers of this style [in 2017], the very conservative rail market was sceptical,” recalls Dobbelaere. “Within the last two years, we have seen a big change in vision and mentality towards the products. Whereas the majority were sceptical two years ago, ideas are now being created where these tanks will have their applications.” Despite the warmer reception in recent months, Bolte explains: “The drawback is that this concept will only work if the infrastructure is available. This could take some time.” “However, we also received a lot of queries from port authorities about how this type of equipment can be developed further,” adds Dobbelaere. “There have also been conversations with a wider range of businesses about how they can adapt facilities to handle things such as cleaning and so on.”

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There is clearly interest in this equipment, it just requires planning and, perhaps, a couple of larger businesses to take the first steps. “We’re looking at facilities across Europe,” says Bolte. “In the future, eastern European facilities would be well suited for transport into Russia, China and Asia and vice versa. Additionally, one of the challenges being examined for future possibilities is combining this particular traffic flow with deep sea traffic.” “Although this equipment is called a ‘container’, we aren’t really focusing on the container market itself,” concludes Dobbelaere. “This is more about the development of rail tank cars, which is the market we are aiming to tackle. There are further developments in the pipeline for this series of projects, but we cannot say more. This type of development is

 WORK BY BASF AND VAN HOOL HAS CREATED A WHOLE NEW CONCEPT FOR MOVING LIQUIDS AND GASES

only experienced perhaps once every five years, so it is of great importance, particularly as it is a new design. It’s rare to have this form of project as it’s not just the development of one specific item, but the whole package around it, making it far more complex.”

The gas tank container is currently receiving the final approvals and terminals are finalising infrastructure alterations to be able to start using them soon, perhaps even within the next six months. HCB www.vanhool.be

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NEWS BULLETIN

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possibilities for the transport of corrosive and high purity chemicals. The first video in the series can be viewed on the Eurotainer website at www.eurotainer.com/ video/eurotainer-composite-range-products. DACHSER EXPANDS IN POLAND

RENAULT GETS REPEAT ORDER

Van den Bosch Transporten has purchased 49 lightweight Renault trucks for the transport of liquid and dry bulk goods. Some of these vehicles have an EML mid-lift axle, providing a greater loading capacity and allowing the company to take advantage of the 44 tonne weight limit in force in some European countries. “We choose Renault trucks because of the lightweight tractor,” says Rico Daandels, Van den Bosch Transporten CEO. “This enables us to transport more payload within the European weight standards for intermodal transport. ” This was the second Renault purchase in short order “The comfort, the capacity of the truck and the size and equipment of the cabin are the most important factors that our drivers look for in a truck. The Renault Trucks T offers this, so that a repeat purchase was obvious,” concludes Daandels. www.vandenbosch.com EUROTAINER PROMOTES COMPOSITES

Eurotainer has launched a series of videos to introduce the market to the benefits of its new composite tank containers, manufactured by Omni Tanker. The first video covers the wide range of products that can be transported in these lightweight containers, which offer new

Logistics service provider Dachser has opened a new branch in Rzeszow, Poland, its ninth in the country. This area has been a region of growth for the company in recent years and the new facility will handle intercontinental freight transport, particularly air freight, while also offering road transport and warehouse capacity. “South-eastern Poland is a region in which many companies are increasing their international revenue. The amount of groupage cargo we have handled in this part of the country has grown consistently over the past few years. For our customers, this investment in a new branch means better access to the entire Dachser network and thus to EU sales markets,” says Dr Grzegorz Lichocik, managing director of Dachser European Logistics Poland. Located close to Rzeszow-Jasionka airport and the A4 highway, the new branch covers a total area of almost 3,000 m2. It consists of a 2,100-m2 contract logistics warehouse, a nine-gate transit terminal, space for chemicals and dangerous goods storage and an office and social facilities. www.dachser.com MORE LAG FOR NIJHOF

Nijhof-Wassink has bought ten stainless steel tank trailers from Belgian manufacturer LAG. The tankers are designed for very specific goods that require special handling and have a highly polished internal finish to improve the unloading of viscous product. The trailers are also readied for digital fleet management, being equipped with a communication unit that allows Nijhof-Wassink to monitor product temperature. »

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Nijhof-Wassink has plenty of experience in tank trailer transport and came to LAG with a detailed specification list. Maarten Thaens, master engineer at LAG Trailers, says that it is not so much the rich options list that demonstrates this experience. “The smaller modifications to the vehicle that guarantee a more efficient and wear-resistant transport in the long term give it away. The team at Nijhof asked for adjustments on a more detailed scale; manhole seals, insulation and unloading modalities.” The new tank trailers will partly replace older units and partly expand the fleet. Nijhof-Wassink has also ordered 30 tipping silo trailers from LAG, which will be delivered later this year. www.lag.eu LOADTEC COSIES UP TO CARBIS

Loadtec Engineered Systems has formalised its long-standing partnership with Sam Carbis Solutions Group and is now migrating to a new company, Carbis Loadtec Group Ltd. Loadtec Engineered Systems will continue to operate and close out existing orders; open and new orders received after 1 September will be handled by the new company. “This is an exciting new development for Loadtec customers as we are now a manufacturing company and can offer closer, faster and improved service with the backing of a long established and financially strong international company,” says managing director Alec Keeler. “We now have the resource behind us to fund growth and take on bigger projects that require packaged solutions for complex problems.” “Loadtec Engineered Systems has exclusively represented Carbis for 22 years on a worldwide

basis and we are used to working together, cooperating and developing unique solutions for our customers’ unique applications,” Keeler adds. Shawn Mizell, president of Sam Carbis Solutions, says: “I am very excited at the opportunity this partnership affords both companies and look forward to what the future holds.” www.carbisloadtec.com NEW FACE AT QUALA

Quala has appointed Brian Bolinger as vice-president of its Environmental, Health & Safety (EHS) Department. His role will be to help his team to identify opportunities, flag threats, and become proactive in regards to safety so they can continuously improve their environmental, health, and safety culture. “What I have learned over the years that I find interesting about safety is we all have the same goal: to return to our families, friends, and hobbies in the same way we leave them each day,” he says. Quala has also expanded its Quala Maintenance programme with ‘Light Maintenance’, aimed at a niche market. “We are not looking to compete with experienced maintenance shops on a national level, but our customers have reached out to us requesting that we provide simpler maintenance services that help keep their rigs on the road,” says Jerry Stafford, vice-president of Quala Maintenance. “Deciding what services make the cut can be difficult, but we don’t have the space to keep our maintenance bays stagnant. If a job is estimated to take over a few weeks to complete, our team will typically avoid it.” www.quala.us.com

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NOW TRY THE BEST DIGITISATION • CHEMICAL PRODUCERS CAN BENEFIT FROM THE EXPERTISE OF SPECIALIST 4PLS WHEN THEY ARE APPLYING INDUSTY 4.0 CONCEPTS TO THEIR SUPPLY CHAIN IT WAS ONE of those buzz phrases that came into the supply chain apparently out of nowhere – the control tower function. Everyone should have one, consultants said, and here’s some technology so you can have one too. A functional control tower will provide greater visibility to supply chain partners, especially to customers, giving them confidence in the company’s operations. That’s true up to a point. But, as Kirry Mukherji, managing director of Log4Chem, explains, “All major shippers have a control tower function somewhere, maybe buried between ‘logistics’ and ‘customer service’.” So if companies already have a control tower, why do they need help? “This function must now be promoted and technically enabled to give customers that

home-shopping experience of shipment tracking and last-mile visibility,” Mukherji says. “It’s time to turn the light on.” An organisation can do that itself, but how many companies working in the chemical supply chain have the in-house expertise and resources necessary to achieve the required outcome? Many companies, Mukherji believes, will also be changing their enterprise resource planning (ERP) systems to help them cope with the management of increasingly large volumes of information and provide interconnectivity between corporate platforms. This never-ending process of migration is a drain on capital and, for many operators, it makes more sense to outsource the task to a fourth-party logistics provider (4PL) such as Log4Chem.

FINDING SAVINGS “As a chemicals 4PL, we have proven that it is possible to cut costs and add more value simultaneously. Selective digitisation with a team of chemical logistics experts has enabled us to reduce operating costs while improving the transparency and reliability to end customers,” Mukherji says. “It’s a simple formula – delays cost time and money; remove the problems and you improve performance while cutting costs. “Here is just one example: your ERP allocates a lane to one carrier, at best with a back-up carrier. The granularity of big data makes this ‘one-size fits all’ approach anachronistic,” he continues. “Our dynamic allocation management gives a defined group of pre-approved carriers the flexibility to opt in and out of lanes as it suits their business. This benefit (and lower risk) for the carriers yields additional margin that is sustainably greater than the cost of our intervention.” Mukherji believes that the arrival of big data and greater visibility through the supply chain is making old metrics redundant. “An overall delivery performance of 99 per cent has become irrelevant,” he says. What is crucial is the actual experience of each individual customer relative to their expectations. “We can pinpoint that silently suffering customer that has less than 75 per cent on-time deliveries and take corrective action before they silently leave you.” These abilities give the lie to the belief expressed by some in the business that digitisation will, by disintermediation, remove the space for 4PLs. “Elements of what we do have already become redundant,” Mukherji allows, “but that stimulus has propelled our growth, evolving further up the value curve. We continue to save our customers millions more than we cost them.” Log4Chem GmbH is a 4PL focusing exclusively on the European chemicals industry, building a customer base over the past decade through carrier-neutral transport management and optimisation. This gives Mukherji the confidence to be able to say: “You can do it yourself – or give it to us. We know how!” HCB www.log4chem.com

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SWISS STATE SELLS SHARE RAIL • KEEN TO ACCELERATE THE MODAL SHIFT AND ENCOURAGE A MARKET-FOCUSED OUTLOOK, SWITZERLAND HAS SOLD A SHARE IN SBB TO A CONSORTIUM OF LOGISTICS FIRMS IN SEPTEMBER 2018, Switzerland’s stateowned rail company SBB announced its intention to identify suitable partners to take a minority interest in its railfreight business, with the aim of shifting the market positioning of SBB Cargo to a more entrepreneurial focus. In order to facilitate the sale, SBB Cargo was established as an independent company within the SBB Group on 1 January 2019. At the end of August 2019, SBB announced that it had accepted an offer from Swiss Combi AG to take a 35 per cent holding in SBB Cargo. The investment is subject to approval by the relevant antitrust authorities and is not expected to be finalised until spring 2020. Both sides have agreed not to disclose any financial details about the deal. It is anticipated that this equity participation will ensure a partnership-driven, marketoriented development of the railfreight business in and through Switzerland. SBB will maintain a majority holding in SBB Cargo and will have three representatives on the

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six-strong board of directors of SBB Cargo, along with two from Swiss Combi and one independent board member. FOUR TAKE PART Swiss Combi AG is a joint venture formed specifically for participation in SBB Cargo by four Swiss logistics companies: Bertschi AG, Camion Transport AG, Galliker Holding AG and Planzer Holding AG. Camion and Planzer each have a 40 per cent share in Swiss Combi and will supply one board member each; Bertschi and Galliker each have a 10 per cent share. All four move significant volumes of freight on the Swiss and international road and railfreight transport markets and have a mutual interest in further developing a sustainable modal split between road and rail transport, as well as in fostering a competitive local railfreight market. The four companies, each family-owned, are aiming to use their participation to improve the competitiveness and profitability of SBB Cargo and, thereby, to

contribute positively to a sustainable and environmentally friendly modal shift towards rail. Outside of Swiss Combi, the four firms will continue to operate independently. Camion Transport says its participation is strategically important. “We have been using environmentally friendly rail transport since 1985. By acquiring interests in SBB Cargo AG, not only will we be able to help shape the future of Swiss rail freight transport, but we can also contribute to making future progression successful.” Bertschi is the only one of the four logistics companies involved in Swiss Combi to have a strong position in the chemical supply chain. It moves 80 per cent of its European freight volumes using intermodal transport by rail and plans to use its decade-long experience in expertise in such intermodal transport to help further SBB Cargo’s position. “These plans shall further contribute to the achievement of challenging climate targets in freight transportation,” Bertschi says. SBB Cargo moves almost 30m tonnes of freight per year in wagonload, company trains and intermodal transport within Switzerland, equivalent to some 10,000 full truckloads per day. Its international operation is the leading provider of transalpine railfreight services through Switzerland, with a market share of some 38 per cent. SBB Cargo generated revenues of SFr 742m ($750m) in 2018. HCB www.sbbcargo.com

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care activities, boost our regional capabilities and provide integrated, digital solution offerings to our customers.” POSITIVE DEVELOPMENTS With these appointments, VTG says it is both reinforcing the care it provides to international customers and stepping up its capabilities in the individual regions. Over the past few months, VTG has already been pressing ahead with the expansion of its portfolio in Asia, setting up new offices in Russia and Shanghai and establishing a commercial representation

A NEW CHAPTER RAIL • AFTER A SUCCESSFUL FIRST HALF YEAR, VTG IS TAKING STEPS TO POSITION ITSELF FOR THE FUTURE, WITH A NEW FOCUS ON INTERNATIONAL FULL-SERVICE RAILFREIGHT OPERATIONS VTG AG HAS announced two significant changes at the top of its management, as part of a reorganisation that aims to improve customer service and enhance connectivity. With effect from 1 September, Sven Wellbrock, previously head of the Rail Europe business line, is now COO Europe and Chief Safety Officer. He will be responsible for all of VTG’s railcar leasing and logistical activities in Europe, as well as for safety matters. Oksana Janssen, previously head of the Rail Russia business line, is now COO Eurasia and Far East. Her responsibilities include railcar leasing business in the named regions, and she will also oversee tank container and project logistics activities. Ms Janssen’s mandate further covers the services provided by VTG along the New Silk Road.

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Both Wellbrock and Janssen are now on the Executive Board, alongside CEO Dr Heiko Fischer and CFO Mark Stevenson. At the same time, Günter-Friedrich Maas, who has acted as chief logistics and safety officer since 2014, has left VTG to pursue other openings. “This decision takes us a further important step toward VTG’s future orientation as a full-service international provider with a strong focus on rail,” says Dr Fischer. “The introduction of digitisation in 2017 and the acquisition of Nacco last year were important milestones for us. They have crucially expanded our portfolio of products and services. The next steps are now to ramp up our international customer

in Japan. At the same time, dovetailing the railcar and logistical units under the mandate of the new Board members will facilitate customer care and consulting that is more comprehensive and complete. In particular, this move will enable the digitisation offensive launched two years ago to be anchored and connected across all operations to the same extent – translating into the implementation and marketing of corresponding customer solutions. Those recent changes – especially the acquisition of the Nacco operation in 2018 – have had a significant impact on VTG’s first-half results, which saw revenues rise 16.6 per cent year-on-year to €599.3m and EBITDA jump by 42.2 per cent to €247.0m. “In the first half of 2019, we were able to maintain the successful trajectory we have seen in recent quarters. Both revenue and EBITDA once again posted considerable gains,” says Dr Fischer. “In line with our forecast, VTG is benefiting from the successful acquisition and integration of Nacco. The numbers prove that this was the right decision for the future of our company. At the same time, constant high capacity utilisation across our fleet shows that the market trusts our products and services. Further confirmation comes from positive revenue development and the acquisition of new customer business by the logistics divisions.” HCB www.vtg.com

 VTG PLANS TO RAMP UP ITS INTERNATIONAL RAILFREIGHT OPERATIONS, PARTICULARLY IN ASIA

In response to this, Reques established his own fuel distribution business, Reques e Hijos SL, based in Collado Villalba, some 25 km north-west of Madrid. Very soon the firm, led by Ángel Reques and his son, Ángel Jr, was delivering 2m litres of heating oil and diesel a year. This success brought Reques e Hijos to the attention of Repsol, which had formed from the remnants of CAMPSA, initially as a state-owned enterprise but now 90 per cent owned by private interests. “Repsol saw that we were a potential customer that sells a lot, so they gave us the opportunity to form a partnership with them to distribute heating oil under their brand,” says Ángel Jr, who is now director of Reques e Hijos. “So, we started buying more and more trucks and the business started to grow.”

PROGRESS BY PARTNERSHIP PUMPS • BUILDING A SUCCESSFUL FUEL DISTRIBUTION BUSINESS TAKES GOOD JUDGMENT AND A BIT OF LUCK, BUT ALSO RELIABLE EQUIPMENT AND GOOD RELATIONS WITH SUPPLIERS

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ESTABLISHING A FUEL distribution business in Spain in the 1980s, amidst the turbulence of the post-Franco and pre-EEC years, was a brave thing to do for Ángel Reques but one that in the end paid off handsomely. He initially secured a small contract with the state-owned oil company CAMPSA, distributing heating oil to homes in Madrid but with the end of CAMPSA’s monopoly in 1992, the market opened up and independent distributors like Reques suddenly had the chance to grow.

CALM AMONG THE STORM The turbulent political landscape and uncertain market conditions made it vital that Reques e Hijos could rely on its trucks and equipment to keep the fuel flowing through its system. As part of that, it quickly standardised on Blackmer’s TX Series sliding vane pumps for all its tank trucks and the loading bays at its depot. “We started mounting Blackmer pumps on our trucks in 1993 after we had been using other pumps for a couple of years,” says Ángel Jr. “We have tried other brands over the years, mainly because some tank truck manufacturers mount other brands of pumps, but when we order those trucks we get the surprise that it isn’t a Blackmer pump. I prefer the TX pumps because they are very robust, very reliable, they last a very, very long time and we can trust them in almost every situation.” Specifically, the TX Series pumps provide the operational characteristics that can satisfy the demands that are common in the delivery of heating oil and diesel, including: • Sliding vane operation that self-adjusts for wear and maintains flow rates • Dual-end shafts that simplify installation • Mechanical seal and ball-bearing construction for maximum reliability • Symmetrical bearing support for even loading wear and long life

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• A djustable relief valves that protect against excessive pressures • Easy vane replacement without needing to take the pump out of service The reliability of the Blackmer pumps has supported Reques e Hijos’ growth; the company now runs 30 tankers out of two fuel depots and is the largest fuel distributor in Madrid. A LOCAL SUPPLIER Ensuring that Reques e Hijos has ready access to TX Series pumps, parts and accessories is Cetil Dispensing Technology SL, which is based 25 km north-east of Madrid in Algete. With its roots in the longestablished Spanish fuel-handling companies Cetil SA and Medición y Transporte SA, Cetil Dispensing Technology places an emphasis on developing dispenser equipment and systems that are used in the transfer of motor fuels and other oil products. “Before we were Blackmer distributors, we were distributors for another company, but when that company decided to sell directly to

its customers in Spain, we had no pumps,” explains Marcos Kremers, sales manager for Cetil Dispensing Technology’s High Flow division, which outfits truck fleets and depots with equipment and systems for use in handling heating oil and diesel fuel. “We decided to go with a high-quality pump and started the Blackmer partnership for distribution. Suddenly, all of our customers changed to Blackmer because they wanted Cetil’s after-sales service and stock for immediate delivery of parts. This is a great example of customers being loyal to a company because of the great service that is provided.” In the case of the relationship between Reques e Hijos and Cetil, that loyalty is definitely a two-way street. “We always ask our tank truck manufacturers to install a compact pump-emission system from Cetil because they give us a good warranty and help us size the pump to our needs,” says Ángel Jr. “We are happy with this solution we are using right now, and because Cetil’s pump is Blackmer, we are happy with the Blackmer pumps.”

LOYALTY PAYS A main contributor to the loyalty that Reques e Hijos has built with Cetil and Blackmer is the reliability of the TX Series pumps in varying operating conditions. Madrid is situated at the foot of the Sierra de Guadarrama mountain range, whose peaks are still snow-capped in June, serving as a reminder that the harsh winter months are never too far away. In those conditions, when people rely on the availability of heating oil to warm their homes, schools, hospitals and businesses, service interruptions cannot be tolerated, especially if they are caused by a malfunctioning pump. The operational reliability of the TX pumps makes that concern irrelevant. “One of the things we appreciate most from Blackmer pumps is their high reliability in winter,” says Reques. “Because heating oil is 70 per cent of our turnover in the winter months, we need pumps that don’t break and that we can trust during this very busy time for us.” “Like our partners Blackmer and Cetil, we provide quality service, a quality product, and that is the secret of our success,” Reques concludes. “The Blackmer pumps give us the guarantee that when we come to a customer we can make the delivery without any surprises. We pump a lot of litres a year, so we need something very trustworthy. We are very happy with Blackmer pumps and we will continue using these pumps for many years.” HCB This article is based on a piece written by Iris Willmes, regional sales manager, Europe and Scandinavia, Transport Dry Bulk and Liquids, for Blackmer and PSG, a Dover company that covers a range of pump and compressor brands. Full information on the company’s products can be found at www.blackmer.com or www.psgdover.com.

 (LEFT TO RIGHT) MARCOS KREMERS OF CETIL DISPENSING TECHNOLOGY, IRIS WILLMES OF PSG/BLACKMER, AND ÁNGEL REQUES JR, WORKING TOGETHER TO ENSURE CONSISTENT SUPPLY OF HEATING OIL IN MADRID

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SMART COOPERATION TELEMATICS • IMT HAS EXPANDED ITS PARTNERSHIPS INTO CHINA, STRIKING A DEAL WITH NTTANK TO MAKE ALL ITS NEW TANK CONTAINERS SMART-READY, IF NOT ALREADY SMART-EQUIPPED INTERMODAL TELEMATICS (IMT), the biggest supplier of telematics technology for the tank container sector, provides generic and tailor-made telematics hardware and software solutions. To date, more than 40,000 of its sensors have been installed on tank containers worldwide. Based in the Netherlands, IMT offers smart sensor technology and a software platform with which operators, container manufacturers, lessors and shippers obtain the insights to improve their product quality, efficiency and safety. The sensors are all ATEX-certified for operation in explosive atmospheres. A team of 12 hardware engineers, 35 software engineers and in-house assembly line provide IMT customers the best products

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with the highest quality. The company’s sensors and platform improve operating efficiencies, secure quality of cargo and provide track history of all relevant data of each container; location, temperature, pressure, full/empty, heating and load/unload data. These data monitoring and retrieval leads to transparency of transport, safety, quality and integrity control, flexibility and efficiency as well as management by exception. IMT states it sets the standard in smart sensor technology. EASTERN FOCUS Nantong Tank Container (NTtank) is a Chinabased tank container manufacturer offering expertise in building various types of tank containers. NTtank’s annual capacity is 10,000

units, including 8,000 standard units and 2,000 specials. According to the latest ITCO tank container fleet survey, NTtank manufactured 8,500 units in 2018, an 85 per cent utilisation rate. Its main customers include lessors such as Eurotainer, Exsif Worldwide, Seaco and Trifleet, and operators including Stolt, Hoyer, ITT and Suttons. NTtank established a relationship with IMT by choosing IMT’s ‘pre-kit’ to install on all its tank containers, at no extra cost for newbuilds. Additionally, NTtank will become the exclusive sales agent in China (excluding tank container manufacturers) of IMT’s telematics solutions portfolio. Installing the pre-kit to change tank containers into smart tanks takes only five minutes. The IMT pre-kit includes a digital thermometer (Type WT17-Ex) and a bracket for the easy installation of the communication and location terminal (CLT). With the installed pre-kit including the digital thermometer, the temperature can be checked in °C and °F on the tank container with an accuracy of 0.3°C and no calibration is ever needed. IMT holds a patent on this non-calibration technology. At the same time, a customer can upgrade its tank container into a smart tank container in less than five minutes. This is done by installing the CLT 17-Ex on the CLT-bracket and paying an activation fee for the WT17Ex digital thermometer. Dethmer Drenth, managing director and founder of IMT, describes the simple CLT installation process simply as “screwing two bolts onto the CLT bracket which will be pre-installed by NTtank on every new tank container”. When asked about the reasons why NTtank chose IMT as a partner to make its tank containers smart, Jie Huang, general manager at NTtank, says: “To make a tank container a smart tank container is a trend for the future of the tank container industry. We are devoting ourselves to developing more advanced, safer and smarter tank containers. IMT is a world-leading smart equipment supplier. We chose IMT to be our partner to cooperate with each other to help our customers and friends upgrade their tank containers based on both companies’ excellent products and worldwide service.” HCB www.intermodaltelematics.com

The panels underlined that the industry still shows massive growth potential, even though distributors still face clear challenges, which need quick adaptation and a renewed vision. As the Congress progressed, the discussions on the key topics were transformed into images on the wall of the meeting room, thanks to the visual representation of David Jesus Vignolli – a London-based visual artist and founder of VisualScribing.com - who offered the participants his artistic interpretation of events, which raised plenty of smiles among those who read through his take on the day.

FUTURE DAYS CONFERENCE REPORT • EUROPE’S CHEMICAL DISTRIBUTORS GATHERED FOR THEIR ANNUAL CONGRESS IN SITGES IN JUNE WITH A NEW FORMAT AND PLENTY TO TALK ABOUT THE EUROPEAN ASSOCIATION of Chemical Distributors (Fecc) held its 2019 Annual Congress in the seaside town of Sitges, Spain this past 12 to 14 June, with more than 150 participants on hand to discuss the challenges facing the sector in a world of volatility and unpredictability. Professionals from all parts of the supply chain, including chemical manufacturers, logistics service providers (LSPs), traders and customers took part, providing a very useful overview of current sentiment across the industry. The 2019 Fecc Congress, under the banner ‘Voices of the Future’, offered a totally new

 ABOVE: FRANK SCHNEIDER OF IMCD GREETS CONGRESS MODERATOR KATRINA SICHEL

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format, which included a full programme on the first day plus a half day of networking activities (a catamaran tour followed by a lunch in Sitges) on the second day. This year’s programme was characterised by two plenary debate sessions where participants could interact with the speakers and the moderator by asking questions or sharing their view via the Fecc2019APP. The Congress app provided the audience with several functionalities, including messaging, questions, live polling, survey and a timeline. Thanks also to the ability of an excellent moderator, Katrina Sichel, the full day was marked by a lively discussion around the themes of digitalisation and cyber security, promoting and attracting young and diverse talents into chemical distribution, value chain and services for the future and sustainability.

SCENE SETTERS After an introduction by Fecc president Neville Prior, chairman of UK-based distributor Cornelius, the scene was set by Gordon Hay, strategic consultant with Powercounsel, and Frank Schneider of IMCD Deutschland and a member of the executive committee of IMCD Group BV. They introduced the concept of the ‘New Fecc’ and examined a report prepared for Fecc by the Boston Consulting Group (BCG). According to the BCG report, direct sales still dominate the chemical industry, with only 10 to 12 per cent of sales going through distributors. This is a very low figure compared to other industrial sectors – which is as high as 80 or 90 per cent in the pharmaceuticals sector, for instance – indicating that there is plenty of scope for future development, especially in China and elsewhere in the Asia-Pacific region. Current global sales in the chemical distribution sector are greater than €100bn per year and, over the next five years, this figure is expected to grow at more than 5 per cent per year, with the Asia-Pacific region outperforming the rest of the world with annual growth of 6.2 per cent. This is, Schneider said, “a challenge for us” but one that chemical distributors should be able to cope with. “If we grow faster than the chemical industry, it doesn’t mean we are taking money out of the system,” he added, it is merely a sign that manufacturers are focusing more on their core activities and relying increasingly on well qualified chemical distributors to handle the sales and supply functions.

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But, as Gordon Hay said, there are threats to distributors’ position in the market from the emerging digitised sales process. “Digitisation of core processes is an absolute necessity,” he stressed. This is not just basic connectivity between suppliers and customers – that’s “entry level stuff,” he said – although if distributors cannot do these things, they are going to be out of the game. More worrying is the potential for chemical manufacturers to take over the distribution space through digitisation – some of the larger suppliers are already offering online sales – or for other external interests or even LSPs to come in and disrupt the value chain. To counter these threats, chemical distributors will need to look more seriously at value-added services and leverage their proximity to the market to offer data back up the supply chain. There is also a demographic risk to chemical distributors; they need to understand it and mitigate is through strategic workforce planning. There are, Hay said, no easy solutions but distributors need to focus on recruitment and transferring skills between departments. Similarly, the increasing focus on the need for sustainability offers lots of win/

win opportunities across the supply chain. Distributors do, though, need to be aware of the higher costs and disruption to existing practices that may come as a result of environmental policies, decarbonisation and new regulation. LET’S GET DIGITAL Fecc had gathered an informed panel to discuss digitisation in the chemical distribution sphere. Neil Carr, business president, coatings at Dow, said that the nature of the business is about to “fundamentally change”. This is scary for some existing employees, he said, and chemical producers and distributors both need people who can get excited by data. That comment drew the remark, “You can convert to loving data!” from Sibylle Mutschler, head of Digital4Clariant, Clariant’s digitisation programme. There is, though, no recipe to follow, Mutschler said. “You can’t just buy solutions and put them to work.” Each company needs to address the necessary changes through cross-functional teams working towards a common goal. “They have to leave their egos at the door,” she added. Axel Schmidt, chief digital officer at Wacker Chemie, said his company sees lots of opportunities through digitisation, especially

in saving costs, increasing efficiency and improving the customer experience. There is, he said, also the opportunity to improve employees’ lives, even if employees (at all levels) also present a challenge. Dani Loughran, managing director of Aston Chemicals, took a rather more practical approach. Chemical distributors are being squeezed between the divergent needs of their suppliers and customers and are put in a position where they are being asked to absorb complexity; speed and efficiency are crucial and distributors need systems that can deliver that. “We can’t invest in things and wait to see if they work,” she added. “We don’t have the time or money for that.” Bringing a more youthful perspective to the conversation was Lotte Vater, global distribution manager at Synthomer, who is so young (27) that she has never seen a fax. From her point of view, the main challenge of digitisation lies in getting older people to do their jobs differently. “We have to convince them that their job will be more enjoyable,” she said. PLATFORM FOR SALES Should distributors be scared of new platforms offering online chemical sales? Thorsten Lampe, managing director of Asellion, which is one of those platforms, explained that what they are doing is mirroring what happens in real life. “Tinder provides an easy way to say ‘no’ and chemical distributors need a similar button,” he observed. Carr was not so sure: Dow has its own front-end that offers direct sales. This has changed its relationship with some distributors but, he said, it is not a substitute. Schmidt admitted that platforms are driving a shift in power down the supply chain. The end customer can now buy whenever it is most convenient for them. Chemical distributors have to take this on board – if they get it right they will be partners for both ends of the deal. Mutschler said it is not the buying itself that is the unmet need that platforms offer, but functions such as the provision of samples, information, safety data, tracking or finding partners for innovation. It did seem that, in comparison to other sectors of the chemical supply chain, the »

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conversation about digitisation among distributors and their suppliers is focusing very much on lubricating the existing channels. There was plenty of talk of standalone project and of improving efficiency and reducing costs, for example, but nothing really transformational. Dow is still insisting on showing a return on its investment in digital projects, something that others in the logistics chain have said is not a route they feel able to go down. Perhaps it is something about the nature of the distribution function that is different – this is a face-to-face relationship, not simply a business-tobusiness affair. PARTNERS IN PROFIT A second plenary debate addressed distributors’ role in the value chain services of the future, looking particularly at sustainability, security and safety. Participants on both sides of the market stressed the need for mutual understanding and partnerships, with Holger Heidemann, vice-president of global distribution at Elementis, saying that, while distirbutors can bring local market intelligence, manufacturers need to make their strategy clear to the distributor if the partnership is to deliver the value the manufacturer expects.

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Neil Carr agreed: “If you’re goint to use a channel partner for distribution, you need to know why – and it’s not always clear.” Is it to gain access to local markets? Is it about the availability of assets? The distributor should not duplicate the work of the manufacturer but focus on what it can do better – which may involve digitisation. Manufacturers need to actively manage their distributors, not merely devolve responsibilities. Jörg Naumann, global head of supply chain management at Clariant, explained that, for him, distributors play an important role in easing complexity by taking on the customers that the producer finds it hard to serve. In an ideal world, he said he would like to digitally integrate distributors into the supply chain as they understand the value added by his products and can help sell them and expand the market. Unfortunately, the distributors currently being used cannot do that. Julia Bourne, business development manager at Aston Chemicals, agreed; Aston makes an effort to understand the products it is handling and solve problems for the manufacturer as well as the end user, she said. This means having a highly trained team in place that can handle that complexity and effectively act as an extension of the manufacturer.

Klaud Hald Winstroem, head of coatings, adhesives and specialities for northern Europe at Covestro, said the company is planning to hand over a lot of its smaller customers to distributors to reduce complexity. “Distributors are better at taking care of those customers and can grow the business,” he said. His advice to distributors was two-fold: get to know the local market, and don’t be afraid of the digital journey. Elsewhere during the Congress, there was much talk of the need to put women into leadership positions and to develop new talent although, looking at the panel sessions and the delegates, chemical distributors are well ahead of other parts of the supply chain in both those metrics. At the end of the three days, with attendees having had plenty of opportunity to network and to see some of the sights of the Barcelona region, the meeting was wrapped up by Neville Prior, who announced that the 2020 Congress will take place in Milan on 27 to 29 May. Full information will be available soon on the Fecc website, www.fecc.org. HCB

 THE FIRST REPORT ON THE CONGRESS (ABOVE) WAS PROVIDED BY DAVID JESUS VIGNOLLI

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The solutions provided go even further for those seeking the best financial investments. Hidden costs or costs that are often overlooked are clear and included by GoBuyChem. “All the suppliers of the chemicals have their prices already exwarehouse and what our algorithm does is add freight rate, insurance and finance to get that cargo to its destination from where it came from, immediately,” says Bhardwaj. For example, if there are two suppliers offering exactly the same product at the same price, but from two different cities, the freight costs (and more) will be different, meaning the lowest advertised price isn’t always the lowest delivered cost.

WINDOW SHOPPING DIGITISATION • THERE IS MORE THAN ONE WAY TO GET A SLICE OF THE BOOM IN ONLINE SALES OF CHEMICALS, AS SHOWN BY THE GOBUYCHEM AND IMPRATECH PLATFORMS

BUYING AND SELLING chemicals is now a 21st century occupation and moving increasingly online. What does that mean for parties in these transactions? GoBuyChem is the equivalent of websites such as Expedia, Trivago or Moneysupermarket, but specifically for chemicals. The market comes to the seller, not the other way around. Impratech, on the other hand, is a digital sales solution that provides the tools for businesses to sell online directly to customers through a bespoke and customisable secure online platform. Dr Bharat Bhardwaj, CEO of GoBuyChem and Impratech, describes what he is seeking to change: “Traditionally, when selling chemicals, it used to be the case of phoning every single business, perhaps getting in the car and arranging face-to-face meetings or – in the last fifteen years – emailing. The online way of selling chemicals is only just starting.”

This process will definitely accelerate with the young generation of digital natives now entering business life. Businesses using GoBuyChem to source chemicals can benefit from the scalability of the platform, which can cater to individual shipments of specialist chemicals or large amounts of commodities on a regular basis, meaning all businesses are able to benefit from the platform regardless of their size. Furthermore, as a clearing house that handles all transactions between its users, GoBuyChem makes it easier to cope with different payment terms. “The seller need not set themselves up with every customer and need not do credit insurance as the contracting partner is GoBuyChem. The buyer can have extended payment terms, if needed, without the supplier giving them, as GoBuyChem is who the contract is with,” says Bhardwaj.

ONE FOR ALL “Wouldn’t it be good if each company had the ability to sell through their own webshop?” says Bhardwaj. “With Impratech, a business would have their own branded platform to sell their products to their customers, thereby potentially internalising your customers. Anything done to make a customer’s life easier is considered a winner.” Many will be aware that investing time, money and effort into a project to develop suitable online sales platforms is costly on all fronts, particularly for smaller parties. Impratech provides a customisable solution that doesn’t require heavy investment. “The big companies are creating their own platforms, but what do you do about the thousands of small- to medium-sized companies out there – with sales potential ranging to a billion dollars – who don’t have the resources to create their own platform? Money isn’t always the only factor to consider. It’s also about the management time to develop such a platform,” explains Bhardwaj. GoBuyChem and Impratech are both being demonstrated at the EPCA Annual Meeting at a variety of different times. At the moment, both brands are focusing on the European markets and, once a presence has been successfully established, further expansion will follow. HCB www.gobuychem.com www.impratech.com

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SELECTING THE BEST WAREHOUSING • AFTER DEMONSTRATING SUCCESS IN GERMANY AND AUSTRIA, SHAREHOUSE, AN ONLINE MARKETPLACE FOR WAREHOUSING SOLUTIONS, IS READY TO CONQUER NEW MARKETS DISASTER HAS STRUCK – somehow 30,000 pallets have been left in Hamburg and the pre-planned storage provider is suddenly unable to handle such a large amount. What can be done? Fortunately, there is a way to solve this problem and have all 30,000 pallets moved and stored safely and correctly within 48 hours at suitable regional facilities. The answer: ShareHouse. This real-life scenario happened only a few months ago and serves as one of a growing number of ShareHouse success stories. Describing itself as “the Air BnB of logistic services and warehouses,” ShareHouse has taken central Europe by storm in the last 12 months and shows no sign of slowing down. Started in Germany, ShareHouse has recently expanded into Austria and is eyeing new territories at the same time as implementing strong product development.

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MAKE A CHANGE The idea for ShareHouse came from a growing frustration about existing practices surrounding storage logistics, particularly when seeking short- and mid-term solutions. Businesses spent time manually inputting data to extensive spreadsheets that proved to be inefficient and often inaccurate, so a digital solution was sought. “We figured out that 10 to 20 per cent of warehouse space in Germany was inefficiently used, which is why we selected this as our starting destination,” explains Florian Loesser, business development manager at ShareHouse. For example, if a business has its peak from June till September and completely uses the 10,000 m² of the warehouse, but from September to April only 7,000 m² is used, there is a problem. ShareHouse makes sure that the free capacity will be used by another client.

“We found that there was actually a really high demand for short- and mid-term storage solutions in the industry,” says Loesser. “But there was no transparent and Germany-wide service that could handle these requests.” ShareHouse then developed a platform that could accurately and swiftly provide information on unused space across the nation, providing a solution for businesses seeking storage and those wanting to optimise their available space. After roughly one year in Germany, expanding into Austria was a surprisingly easy process for ShareHouse. “We had already built up our brand in Germany, so people in Austria knew of us,” says Loesser. “In Germany, it was quite difficult in the beginning as no one had heard of us, but the Austrian market is growing by itself.” ShareHouse is now looking to expand into more European nations such as the Netherlands, Belgium, Czech Republic and deeper into eastern Europe; therefore, doing market research on which countries to tackle next. WHAT’S NEW However, as exciting as new territories can be, developing the current product is more important for ShareHouse than seeking expansion. “We are about to launch a new product which has had a successful soft-

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launch. The new product will allow potential users to place requests on the platform and then the logistic service provider (LSP) will have the ability to quote on the requests,” says Loesser. ShareHouse experienced a 250 per cent increase in requests since the soft-launch two months ago. Rather than having users seeking solutions by individually messaging every potential provider, users are able to broadcast their requirements to the whole platform. Those that are able to handle the request and are seeking business can respond with quotes and details. This makes the process for businesses needing solutions and those wanting to utilise their warehouse capabilities much swifter. “We are also interested in

 DIGITISATION HAS ARRIVED IN THE WAREHOUSING SECTOR AND SHAREHOUSE IS INTENDING TO EXPAND ITS COVERAGE AND FUNCTIONALITY EVEN FURTHER

offering warehouse management systems, but this is in early days,” Loesser explains. ShareHouse has strict rules for those that want to promote the fact they can provide dangerous goods storage as a service. An issue faced by ShareHouse is that it does not own or operate any storage units directly, therefore diligent checks must be undertaken to ensure safety and compliance. “If a business says it has a dangerous goods warehouse, we receive their certifications and check them internally. If there are any doubts, we then discuss further with the certifying body and higher authorities. Should there be any doubts after this, we can visit and qualify the warehouses ourselves, or we refuse to use them; but this has never happened,” says Loesser. CHALLENGE AHEAD When looking to the future for ShareHouse, Loesser says: “The biggest challenge for us going into 2020 would probably be the growth

in competition. Therefore, we need to be quick in what we are doing and provide the best service. Another challenge will be found when it comes to expanding our services outside of locations like Germany, Austria and parts of Switzerland because of language barriers.” Despite the growth in competition and the potential for language-related issues, Loesser is confident about the next 12 months due to ShareHouse’s specific benefits and ever-growing network. “The old-style competitors and normal LSPs are still around, but our USP is that we are extremely fast. We have developed a network of more than 1,000 LSPs with warehousing capabilities and high service standards, meaning we have access to more than 2.8m m² – this makes us the biggest warehouse in Germany! We are always working to increase our network and aim to be the first port-ofcall for businesses seeking solutions.” HCB www.sharehouse.eu

NEWS BULLETIN

CHEMICAL DISTRIBUTION

“We are extremely excited to represent Eastman’s interests in military markets,” says Matt Mannette, business manager for military and aerospace at Univar Solutions. “Not only does this agreement continue to strengthen our companies’ existing relationship, it also allows both of us to better serve this extremely dynamic market segment.” www.univarsolutions.com BUSY BIESTERFELD

SOURCING SOLUTIONS

There have been several developments over the last few weeks for Univar Solutions. Firstly, Univar’s board of directors has approved officially changing the corporate name from Univar Inc to Univar Solutions Inc, effective 1 September 2019. “This name change marks another completed milestone as we progress on the integration of the legacy Univar and Nexeo chemical, ingredient and distribution businesses,” says David Jukes, Univar Solutions president/CEO. “I’m pleased to see our integration consistently moving forward as we combine the best of the best and deliver increased value to our customers and suppliers.” The shares of common stock will continue trading under the ticker symbol UNVR on the New York Stock Exchange, and the assigned Committee on Uniform Securities Identification Procedures number will remain the same. There have also been business developments as Univar Solutions has been selected by BASF as the US distributor for a range of

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products. Univar will be distributing the Lupragen® amine catalysts on a national scale and will be the Midwest distributor for Baxxodur® polyetheramine curing agents and chain extenders. Joey Gullion, vice-president focused industries US at Univar Solutions says: “Utilising our market-leading supply chain with BASF’s high-quality [portfolio] will benefit our customers who count on us to bring technical solutions to their formulation requirements. We look forward to this new and exciting agreement.” Univar Solutions is well positioned to represent these specialty products in the coatings, adhesives, sealants and elastomers (CASE) and polyurethane markets. Additionally, Univar Solutions is to distribute Eastman Turbo Oils and Skydrol™ aviation hydraulic fluids to the military aviation market, leveraging its expertise to broaden the availability of these products to clients. Turbo Oils and Skydrol have been in use for more than 50 years across a range of military specifications and functions.

The Norwegian distribution company Lindberg & Lund Group has been acquired by Biesterfeld Spezialchemie. Lindberg & Lund distributes raw materials and formulated products, including lubricants, construction adhesives, solvents, composite materials, castings and auxiliaries, across the Nordic region, operating branches in Sweden and Finland. “The range of products and services offered by the Lindberg & Lund Group perfectly complements our portfolio in the area of performance products,” says Peter Wilkes, managing director of Biesterfeld Spezialchemie. “Furthermore, this step will allow us to expand our strategic presence in Europe and to extend to Scandinavia and Finland.” www.biesterfeld.com US PHARMA SCOOP FOR LBB

LeBaronBrown Specialties (LBB) has entered into a strategic partnership with Meggle Excipients and Technology, effective 1 August. The partnership covers distribution of Meggle’s excipient products to US pharmaceutical and nutraceutical industries. LBB’s subsidiary companies – American International Chemical and Charkit Chemical Company – will share responsibility for sales, marketing and distribution in the US market. Meggle selected LBB as it can readily service customers in the US. “Representing Meggle is a tremendous addition for Charkit and AIC,” says Jay Lang, Charkit president. “Meggle is one of only a

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handful of manufacturers of pharma-grade lactose excipients in the world, and they are well known for the excellent quality of their product portfolio.” www.lebaronbrown.com ACCESS TO CASE

Azelis Americas CASE is to become the exclusive distributor for certain BASF Intermediates products, effective 15 October. Azelis will supply PolyTHF®, 1,5 pentanediol, 1,6 hexanediol and Capromer Poly-CLO® into the CASE and plastics markets of the US. Complete formulation services will also be provided. Dan Gruber, managing director, Azelis Americas CASE, says: “We are pleased to be expanding our relationship with BASF’s Intermediates division. These products are used throughout the CASE market, from coatings for fabrics to construction adhesives. All of our US-based customers will now be able to access our formulation expertise for Intermediate products by BASF.” Azelis Americas CASE already has an extensive relationship with BASF, serving as a distributor for many BASF strategic business units throughout the US. Earlier this year, BASF CM selected Azelis Americas CASE to

distribute its polyurethane product line throughout the US, and BASF’s ED division had already done so for the dispersions and resins products across the US. www.azelis.com CHA NGING THINGS UP

Brenntag plans to convert its legal form from a German stock corporation (AG) into a European company (SE). The decision was made by the management supervisory boards who consider the European company form best for modern corporate structure. “Brenntag is an international group headquartered in Europe and employing people from over 100 nations, of whom 90 per cent work outside Germany,” says CEO Steven Holland. “The Societas Europaea as a supranational legal form stands for our global orientation and identity and the transformation is a consistent step in the further development of our company.” Meanwhile, Brenntag has become the exclusive sales and marketing distribution partner for the cosmetic active ingredients of INABATA France. The agreement covers Germany, Austria and Switzerland (the DACH region). INABATA has years of expertise in pharmaceuticals and pharma products through its subsidiary Pharmasynthese, and this

collaboration will provide a great platform for DACH businesses to be introduced to the INABATA range of actives, the company says. Patrick Koch, Brenntag’s business manager pharma and cosmetics in the DACH region, adds: “I am delighted that INABATA have appointed Brenntag as their exclusive distributor in the DACH region. We look forward to promoting INABATA´s active ingredients. I am sure this will become a successful long-term partnership.” Furthermore, Brenntag Specialties is to become the exclusive distributor for BASF’s amine curing agents in the western and south-western US, effective 15 October. The deal will cover the Baxxodur® amine product line including the polyetheramine and isophroediamine lines, composed of prepolymers, curing agents and chain extenders. “We are proud to expand our relationship with BASF,” says Ted Davlantes, vice-president, coatings and construction, Brenntag North America. “This collaboration provides our customers the convenience of developing and sourcing their entire formula from one source. In addition, customers are fully supported with a dedicated team of industry experts and a broadened product portfolio.” www.brenntag.com

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PERFECTING PRODUCTION MANUFACTURING • SCHÜTZ CONTINUES TO EXPAND AND UPGRADE ITS SITES AROUND THE GLOBE TO COPE WITH INCREASING DEMAND FOR STEEL DRUMS AND IBCS GLOBAL INDUSTRIAL PACKAGING giant Schütz has had a presence in Indonesia since 2005, starting with a small sales office in Jakarta before opening its first Indonesian production plant in Karawang in 2013. This past June, Schütz opened a new, high-tech facility at the Karawang site (below), located 50 km east of Jakarta, designed to ensure customers receive optimal supplies, improve supply security and boost operational efficiency – essential when working across a nation of 17,000 islands. The latest investment at the site had added a fully automatic, state-of-the-art extrusion blow moulding unit for the manufacture of intermediate bulk containers (IBCs).

HCB MONTHLY | OCTOBER 2019

This new installation can produce productspecific pieces, such as inner bottles for the EX-protected line; a new grid welding unit; and a new ultra-modern IBC assembly line, meaning that Ecobulk MX and SX models can be produced here to supply the Indonesian market. All products created in Karawang will comply with FSSC 22000. One of the major benefits of the new facility for Schütz and its clients is a greater level of automation, resulting in significantly shorter cycle times. The plant layout was specifically designed to provide optimal process chains and efficient internal logistics to capitalise on the shorter cycle times. Furthermore, operating a significantly larger

warehouse provides more flexible solutions for customers. Looking to the future, there are plans for the Karawang plant to have equipment for Schütz’s Reco line installed, enabling the reconditioning of IBCs as a part of the Schütz ticket service. CLASSIC CONTAINER While demand for IBCs is developing rapidly, especially in emerging economies, Schütz reports that “steel drums are still a preferred method” across several areas of the chemical industry due to their “specific properties and universal applicability”. To provide users with the highest quality steel drums and ensure efficient supply, Schütz has been investing in new equipment at its existing steel drum plants and expanding global steel drum production. This expansion is providing customers with a steady supply of standard and specialised products, including corrugated steel tight-head and corrugated steel open-head drums varying in size (216.5 to 250 litres for tight-head drums and 210 to 230 litres for open-head drums) and thickness (0.8 mm to 1.2 mm). In Germany, Schütz has replaced the coating line at its Selters plant to meet new standards and to improve production quality, capacity and flexibility. New lines for bung closures, screen printing, shell moulding and fully automatic palletisation were also put into operation. This allows customers to specify how they want their new drums consigned – they can, for instance, be held in place with plastics straps, machine cord or stretch film. In addition, the Selters plant has received a new folding machine and a sophisticated helium leak testing system. Meanwhile, in the US, Schütz has been producing steel drums in Houston, Texas, since 2016. This has been further expanded by the development of Schütz ELSA – a Mexican subsidiary that produces a wide range of product variants for the local market, following the acquisition of Envases y Laminados in 2018. Schütz ELSA also produces smaller models with a capacity of 30 litres and higher. These drums can be delivered uncoated or coated, individually or palletised as required. HCB www.schuetz.ne

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TO CAP IT OFF DIGITAL PACKAGING • ENSURING THAT IBCS ATTAIN THEIR FULL POTENTIAL IS AT THE CORE OF PACKWISE’S SMART CAP INNOVATION, BRINGING DIGITAL CONNECTIVITY TO PACKAGINGS IN USE PACKWISE, A START-up describing its products as “the IoT solution for IBCs”, has won the European Solvents Industry Group (ESIG) Solvents Award 2019. ESIG, a sector group of the European Chemical Industry Council (Cefic), presented the award to Packwise for a creation embracing digitisation and improving functionality on a global scale: Smart Cap. Smart Cap is a new piece of hardware for intermediate bulk containers (IBCs) that collects a range of data, including filling level, impact, temperature and movement. “Customers needed support when it came to collecting, servicing and reconditioning IBCs, but there were problems,” says Felix

Weger, product management at Packwise. “The big one was a ‘black box’ problem. We had to wait for the end-user to call us up and request collection and we would have to respond immediately without any real preparation. Additionally, there was a lot of Excel use and manual input which became messy and had errors – so we decided there must be a digital solution that provides greater transparency.” Highlighting the unpredictability and inefficiency of existing systems, Weger mentions that neighbouring businesses sometimes request pick-ups one day apart from each other, meaning a collection to the same location that could been achieved in

one run now takes two visits to complete. Thanks to Smart Cap, these IBCs can be monitored, making it easier to predict collection and ensuring a continuous cycle and improved logistics. Packwise says IBCs can spend up to 80 per cent of life empty and immobile. Smart Cap monitors when a container needs collection and how it is used, and sends a notification to the owner indicating that the IBC is immobile, making it key to achieving optimum efficiency. Smart Cap also measures impacts, assisting the investigation of incidents. The sensors are able to recognise if an IBC becomes slanted or tips over. NEVER LEFT BEHIND The major benefit of Smart Cap is that it will always know where an IBC is. Thanks to three separate tracking systems, it is possible to follow an IBC with a Smart Cap anywhere in the world. “The average loss rate is between 5 and 10 per cent, but we have had a client that was experiencing a loss rate of 20 per cent. That is lost IBCs – not destroyed or damaged ones – but those that have simply disappeared and their whereabouts unknown,” says Weger. Ensuring containers are never lost not only saves replacement IBC costs, but also protects the environment by reducing the amount of CO2 required to create a new container. Smart Cap comes with a battery life of five years, covering the IBC lifecycle. If the IBC the Smart Cap is attached to needs replacing, the Smart Cap can easily be removed and attached to another container by a screw attachment or adhesive mount. The Smart Cap can measure through all materials apart from steel, providing a huge range of options. The mount is made of HTPE, meaning it can be recycled alongside the IBC at the end of its life. There are future plans for Smart Cap to be adapted to work with other forms of packaging solutions to provide a more efficient system for a variety of products. Smart Cap operates in 170 nations and comes with Packwise Flow, a software that allows tabular and graphical views of sensor data and a digital twin for up to 20,000 containers. HCB packwise.de

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INDUSTRIAL PACKAGING

SCHÜTZ IMPROVES NORWEGIAN FACILITY

The Schütz plant in Kongsvinger, Norway, some 100 km north-east of Oslo, has finished its latest expansion and modernisation. The production of plastic components has been concentrated and expanded in a newly built 1,200-m2 hall (above). In addition to the preexisting extrusion blow moulding system, a new three-shift layer extrusion blow moulding system has been installed, and inner container production is linked to IBC assembly via new, fully-automated conveyor technology. Production of plastics pallets has also been relocated to the new hall meaning plastics production is now all under a single roof. The Nordic nations are a vitally important market for Schütz, and have been since its inception, according to Veit Enders, Business Unit Manager EMEA Schütz. The company is now the largest reconditioner of industrial packagings in the region, with the company stating: “The competence displayed by Schütz in reprocessing containers and reusing recovered plastics is a key component of the company’s sustainability strategy.” www.schuetz-packaging.net

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GOOD FOR GREIF

Greif ’s third quarter results indicate a strong increase compared to the same period in 2018, largely thanks to the Caraustar acquisition, but some sectors have weakened. During the latest quarter, net sales increased by $240.5m to $1.25bn and gross profit increased by $62.3m to $279.4m. Adjusted EBITDA rose by roughly 39 per cent versus the same period in 2018 to $203.8m. “Greif produced solid third quarter 2019 results despite ongoing market softness and a weakening industrial economy,” says Pete Watson, Greif ’s president/CEO. “Third quarter adjusted EBITDA rose by roughly 39 per cent versus the prior year quarter. Our newly acquired Caraustar operations performed better than our original assumptions. However, we faced weaker market demand in our containerboard operations and in certain segments of our rigid industrial packaging business. “In light of external headwinds, we are implementing additional optimisation measures in parts of our portfolio to lower costs and better navigate challenging market conditions,” Watson adds. “We remain laser-focused on

those areas within our control to more profitability serve our customers. I remain highly confident in our long-term plan to drive more sustainable free cash flow, deliver our balance sheet and grow our profits.” Greif has been working on rebranding nearly 90 former Caraustar facilities in Canada and the US since its acquisition in February 2019. The facilities added to the Greif roster operate within one of four specific units: recycling services, mill group (coated and uncoated paperboard and specialty paperboard products), industrial products group (tubes and cores, construction products, protective packaging, adhesives) and consumer packaging (folding cartons, set-up boxes, packaging services). Greif now has nearly 300 facilities across 43 nations. In other news, Greif ’s GCUBE® with Shield barrier technology is now available throughout North America. Users receive improved product stability, shelf life and operational performance across a range of industries. The innermost layer remains 100 per cent highdensity polyethylene (HDPE), the intermediate layer contains the Shield blend, which reduces the permeation of gases, and the external layer can be customised with colours or antistatic. Shield technology, introduced last year, is proven to be more efficient than offsite fluorination and is currently the only barrier technology available that is fully recyclable, Greif says. www.greif.com PROCESSING PESTICIDES

HDPE plastic pesticide containers will now be processed through Mauser Packaging Solutions’ Reidsville, North Carolina facility. The Ag Container Recycling Council (ACRC) certification was granted following a site review to ensure the council’s stringent guidelines for handling and recycling recovered HDPE containers were met. The Ag Container Recycling Council is a not-for-profit organisation founded in 1992.

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The Council promotes and supports programmes in the US related to the collection and recycling of used agricultural crop protection, animal health and specialty pest control product containers. More than 190,000,000 pounds (86m tonnes) of plastics have been recycled through the Council’s recycling programme since its founding. The resulting recycled resin can be used in specific, approved end products such as drain pipes, highway sign posts and utility conduit. “This certification supports our continued commitment to reducing the amount of waste sent to landfills,” says Jen Kienen, Mauser Packaging director, PCR division. “We continue to look for new ways to close the packaging lifecycle loop and give raw materials a second life.” www.mauserpackaging.com BERLIN INTO EUROPE

Berlin Packaging has acquired Vincap & Adolfse, a specialist supplier of food and beverage closures and pharmaceutical packaging serving customers in northern Europe from its base in Utrecht, the

Netherlands. Vincap & Adolfse will be integrated into Berlin’s Bruni Glass division, based in Milan, Italy. Paul Devilee and Joost Wurth, owners of Vincap & Adolfse, say they are “excited to become part of the Berlin Packaging family and to embrace our new Bruni Glass colleagues”. www.berlinpackaging.com CHANGING FORM

Germany-based Jokey Group has decided to change the legal form of its parent plants in Wipperfürth and Gummersbach from a GmbH to a Societas Europaea (SE). The move does not entail any change in the shareholder structure of head office location. The SE Board of Directors consists of Herbert Kemmerich, chairman and CEO, Ralf Kemmerich, deputy chairman and COO, and Dr Peter Köhler. The SE’s managing directors – CEO Jens Stadter, COO Ralf Kemmerich, CFO Peter Dörmbach and CSO Christof Kölschbach – are responsible for the operative business. Jokey currently has 15 plants in 12 countries. In addition to its Germany sites, Jokey also has facilities in France, Poland, the Czech

Republic, Turkey, Serbia, Belarus and Russia. www.jokey.com CONSOLIDATING STAVIG

Stavig Group has formed the largest independent manufacturer, reconditioner and recycler of rigid packagings in the US, through the centralisation of support for its four independent packaging solution brands - Myers Container, Container Management Services, General Steel Drum and North Coast Container – under the Stavig Group name. All current brands will remain in place after the process is complete but will now be connected by the Stavig Group brand to promote to its customers a long-term vision and reliable, redundant capabilities. Stavig Group, now under its fourth generation of family ownership (below), says it is is creating a sophisticated growth platform for its customers. Stavig Group takes a lifecycle approach to industrial packaging solutions and promotes a strong commitment to continuous improvement and sustainability across all companies. staviggroup.com

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TRAINING COURSES AIRSAFE TRANSPORT TRAINING PO Box 347 Cloverdale, WA 6985, Australia T (+61 8) 9277 6968 www.airsafe.com.au Dangerous Goods by Air – Acceptance • October 23-25 – Perth • October 28-30 – Melbourne • November 11-13 – Brisbane • November 19-21 – Perth • November 20-22 – Sydney • December 3-5 – Adelaide • December 9-11 – Perth Dangerous Goods by Air – Refresher • November 6 – Perth • November 14 – Brisbane • November 19 – Sydney • December 2 – Adelaide • December 17 – Perth AMSA Full Acceptance (IMDG) • October 21-22 – Perth • November 1 – Melbourne • November 14 – Brisbane • November 18 – Sydney • December 6 – Adelaide • December 12-13 – Perth AMSA Full Acceptance – Refresher • November 1 – Melbourne • November 7 – Perth • November 15 – Brisbane • November 18 – Sydney • December 4 – Perth • December 6 – Adelaide Dangerous Goods by Road • November 4 – Perth 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 21-23 – Brisbane • November 11-13 – Sydney • November 11-13 – Melbourne • November 18-20 – Brisbane • December 2-4 – Sydney • December 2-4 – Melbourne • December 9-11 – Brisbane

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Dangerous Goods – Air Transport Recertification • October 17 – Sydney • October 24 – Brisbane • November 14 – Sydney • November 21 – Brisbane • December 5 – Sydney • December 5 – Melbourne • December 12 – Brisbane Dangerous Goods by Sea – Function-Specific, Initial • November 6-7 – Brisbane • November 6-7 – Sydney Dangerous Goods by Sea – Function-Specific, Recertification • October 21 – Melbourne • October 25 – Brisbane • October 25 – Sydney • November 1 – Brisbane • November 1 – Melbourne • November 8 – Sydney • November 21 – Sydney • November 22 – Brisbane • November 25 – Melbourne • December 6 – Sydney • December 11 – Melbourne • December 13- Brisbane AUSTRALIAN FEDERATION OF INTERNATIONAL FORWARDERS Westfield Office Tower, Suite 403, Level 3, 152 Bunnerong Road Eastgardens, NSW 2036, Australia T (+61 2) 9314 3055 www.afif.asn.au Dangerous Goods Acceptance (Air) • October 22-24 – Melbourne • November 12-14 – Sydney • November 18-20 – Brisbane • November 19-21 – Melbourne • December 3-5 – Sydney • December 16-18 – Brisbane Dangerous Goods Re-certification (Air) • October 21 – Brisbane • October 21 – Melbourne • November 11 – Sydney • November 18 – Melbourne • November 25 – Brisbane • December 2 – Sydney • December 10 – Melbourne Dangerous Goods Awareness (Air) • November 22 – Melbourne

Dangerous Goods by Sea – Full Acceptance • November 13-14 – Brisbane • December 11-12 – Brisbane Dangerous Goods by Sea – Recertification • October 25 – Melbourne • November 7 – Sydney • November 25 – Sydney • November 26 – Brisbane • December 11 – Melbourne • December 17 – Sydney • December 18 – Brisbane BARRY TRAINING SERVICES Sully Moors Road Sully CF64 5RP, UK T (+44 1446) 743 913 www.barrytrainingservices.co.uk ADR – Initial • October 28-Nov 1 – Barry ADR – Refresher • October 21-23 – Barry • December 2-4 – Barry CAMEON PO Box 17345 Edinburgh EH12 1DJ, UK T (+44 131) 334 1929 www.cameon.com Dangerous Goods by Air • January 13-15 – Manchester Dangerous Goods by Air – Revalidation • February 7 – Manchester Dangerous Goods by Road and Sea • February 4-6 – Manchester Dangerous Goods by Road – Upgrade • January 16 – Manchester Dangerous Goods by Sea – Upgrade • January 17 – Manchester Dangerous Goods Safety Adviser • November 11-15 – Manchester CHEM FREIGHT HONG KONG Suite 907, Silvercord Tower 2 30 Canton Road, Tsim Sha Tsui Kowloon, Hong Kong T (+852) 2961 4887 www.chemfreight.com.hk IATA Basic DG Regulations • October 28-Nov 1 – Kowloon

• November 11-15 – Kowloon • December 9-13 – Kowloon IATA Refresher DG Regulations • October 22-24 – Kowloon • November 4-6 – Kowloon • November 18-20 – Kowloon • December 2-4 – Kowloon • December 16-18 – Kowloon IATA Dangerous Goods Awareness (Category 4 & 5) • October 21 – Kowloon • November 7 – Kowloon • November 25 – Kowloon • December 5 – Kowloon 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 9-13 – Houston Multi-Modal Transportation – Recurrent • October 31-Nov 1 – Baltimore • December 5-6 – Houston European Road Transportation • October 31-Nov 1 – Baltimore DGI TRAINING CENTER 1060 El Camino Real, Suite B Redwood City, CA 94063-1645, USA T (+1 650) 306 8450 www.dgitraining.com IATA Initial • October 23-24 – San Francisco • October 30-31 – Atlanta • November 6-7 – Chicago • November 13-14 – Dallas • November 13-14 – New York • November 20-21 – Los Angeles • December 11-12 – Las Vegas IATA Recurrent • October 24 – San Francisco • October 31 – Atlanta • November 7 – Chicago • November 14 – Dallas • November 14 – New York • November 21 – Los Angeles • December 4 – Las Vegas

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IMDG Recurrent • October 25 – San Francisco • November 1 – Atlanta • November 8 – Chicago • November 15 – Dallas • November 22 – Los Angeles • December 6 – Las Vegas Ground Transportation (49 CFR) Initial • October 28-29 – Atlanta • November 4-5 – Chicago • November 11-12 – Dallas • November 18-19 – Los Angeles • December 9-10 – Las Vegas Ground Transportation (49 CFR) Recurrent • October 29 – Atlanta • November 5 – Chicago • November 12 – Dallas • November 15 – New York • November 19 – Los Angeles • December 5 – Las Vegas Multimodal Initial (49 CFR/IATA/IMDG) • October 28-Nov 1 – Atlanta • November 4-8 – Chicago • November 11-15 – Dallas • November 18-22 – Los Angeles • December 9-13 – Las Vegas Multimodal Recurrent (49 CFR/IATA/IMDG) • December 4-6 – Las Vegas Ground/Air Shipping - Initial (49 CFR/IATA) • November 13-15 – New York Ground/Air Shipping - Recurrent (49 CFR/IATA) • December 4-5 – Las Vegas Ground/Ocean Shipping Recurrent (49 CFR/IMDG) • December 5-6 – Las Vegas Air/Ocean Shipping – Recurrent (IATA/IMDG) • October 24-25 – San Francisco • October 31-Nov 1 – Atlanta • November 7-8 – Chicago • November 14-15 – Dallas • November 21-22 – Los Angeles ENGINEERING EQUIPMENT & MATERIALS USERS ASSOCIATION (EEMUA) 2nd floor, 16 Black Friars Lane London EC4V 6EB, UK T (+44 20) 7488 0801 www.eemua.org/Training-andcompetency/ TankAssessor • November 4-8 – Rotterdam • November 11-15 – München • November 18-22 – Manchester TankIntro

Texas Hazardous & Industrial Waste Management • October 31 – Dallas • November 6 – Houston FREIGHT TRANSPORT Complete Environmental ASSOCIATION Regulations Hermes House, St John’s Road • October 23-24 – Orlando Tunbridge Wells TN4 9UZ, UK RCRA Hazardous Waste T (+44 1892) 526171 Management www.fta.co.uk • October 28-29 – Nashville Dangerous Goods Safety Adviser • October 29-30 – Dallas • October 21-25 – Tunbridge Wells • October 31-Nov 1 – Charlotte ADR – Initial • November 4-5 – Houston • October 14-18 – Stirling • December 5-6 – Boston • October 28-Nov 1 – • December 9-10 – Manchester, NH Leamington Spa • December 12-13 – Hartford, CT ADR – Refresher • December 16-17 – Parsippany, NJ • October 29-31 – Leeds • December 18-19 – Philadelphia RCRA Hazardous Waste LION TECHNOLOGY Management Refresher 570 Lafayette Road • October 16 – Sparta, NJ Sparta, NJ 07871-3447, USA T (+1 888) 546 6511 OILSPILL RESPONSE TRAINING www.lion.com Lower William Street Multimodal Hazmat Shipper Southampton SO14 5QE, UK Certification (49 CFR/IATA/IMDG) T (+44 23) 8033 1551 • October 28-31 – Detroit www.oilspillresponsetraining.com • October 28-31 – Cincinnati Oil Spill Clearance – On-Scene • December 9-12 – Pittsburgh Commander (IMO Level 2) • December 16-19 – Chicago • November 11-15 – Singapore Hazmat Ground Shipper On-Scene Commander – Certification (49 CFR) Asia-Pacific (IMO Level 2) • October 28-29 – Detroit • November 5-7 – Yangon • October 28-29 – Cincinnati • December 2-4 – Laos • October 28-29 – Milwaukee On-Scene Commander – • December 5-6 – Cleveland Turkey (IMO Level 2) • December 9-10 – Pittsburgh • November 19-22 – Antalya • December 11-12 – St Louis Oil Spill Response Management • December 16-17 – Chicago (IMO Level 3) Hazmat Air Shipper Certification • October 21-24 – Southampton (IATA) • October 22-24 – Singapore • October 24 – Kansas City, MO • October 29-31 – Cape Town • October 30 – Detroit • November 4-6 – Fort Lauderdale • October 30 – Cincinnati • November 12-14 – Lagos • December 11 – Pittsburgh • December 9-11 – Shenzhen • December 13 – St Louis • December 18 – Chicago TANKTERMINAL TRAINING Hazmat Vessel Shipper Schulhausstrasse 11 Certification (IMDG) 3932 Visperterminen • October 25 – Kansas City, MO Switzerland • October 31 – Detroit T (+41 79) 83 71 392 • October 31 – Cincinnati T (+31 6) 5493 1738 • December 12 – Pittsburgh www.tankterminaltraining.com • December 19 – Chicago Loss Control Marine Expeditor New York Hazardous Certification (Bulk Liquids) Waste Management • October 28-29 – Rotterdam • October 28 – Long Island Loss Control Marine Expeditor • October 30 – Albany Certification (LNG) • November 1 – Rochester • October 30-31 – Rotterdam • November 4 – White Plains TRAININGTEAM • November 6 – Syracuse 12 Gleneagles Court, • November 8 – Buffalo • October 21-22 – Manchester TankStrategies • December 2-6 – Antwerp

Brighton Road Crawley, West Sussex RH10 6AD, UK T (+44 1293) 536943 www.trainingteam.co.uk Dangerous Goods by Air (Initial) • October 21-23 – Glasgow • October 21-23 – Manchester • November 4-6 – East Midlands • November 4-6 – Heathrow • November 11-13 – Gatwick • November 18-20 – Bristol • November 18-20 – Manchester • November 18-20 – Newcastle • December 2-4 – Heathrow • December 9-11 – Gatwick • December 9-11 – Manchester Dangerous Goods by Air Revalidation • October 21-22 – Leamington Spa • October 28-29 – Manchester • November 4-5 – Glasgow • November 5-6 – Heathrow • November 11-12 – Manchester • November 12-13 – Gatwick • November 25-26 – East Midlands • December 5-6 – Heathrow • December 5-6 – Manchester • December 10-11 – Gatwick Radioactive Materials by Air • October 24-25 – Manchester • November 7-8 – Heathrow Carriage of Lithium Batteries by Air, Road and Sea • November 12-13 – Gatwick • November 27-28 – East Midlands Dangerous Goods by Road • October 23-24 – Gatwick • October 23-24 – Newcastle • November 13-14 – East Midlands Dangerous Goods by Road – ‘Top-Up’ • October 25 – Glasgow • November 8 – East Midlands • November 8– Heathrow • November 15 – Gatwick • November 22 – Bristol • November 22 – Manchester • November 22 – Newcastle • December 6 – Heathrow • December 13 – Gatwick • December 13 – Manchester Dangerous Goods by Sea • October 21-22 – Gatwick • October 21-22 – Newcastle • November 11-12 – East Midlands Dangerous Goods by Sea – ‘Top-Up’ • October 17 – East Midlands • October 24 – Glasgow • November 7 – East Midlands

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• November 7 – Heathrow • November 14 – Gatwick • November 21 – Bristol • November 21 – Manchester • November 21 – Newcastle • December 5 – Heathrow • December 12 – Gatwick • December 12 – Manchester Multimodal Air, Sea & Road • November 4-8 – East Midlands • November 4-8 – Heathrow • November 11-15 – Gatwick • November 18-22 – Bristol • November 18-22 – Manchester • November 18-22 – Newcastle • December 2-6 – Heathrow • December 9-13 – Gatwick • December 9-13 – Manchester Dangerous Goods Safety Adviser • October 21-25 – Tunbridge Wells • November 11-15 – Heathrow • November 11-15 – Manchester Dangerous Goods Safety Adviser - Refresher

• October 23-25 – Tunbridge Wells • November 13-15 – Heathrow • November 13-15 – Manchester YORDAS GROUP Lancaster Environment Centre, Lancaster University Lancaster, Lancs LA1 4YQ, UK. T (+44 1524) 510278 www.thereachcentre.com Managing REACH for Downstream Users • November 12 – Lancaster Managing REACH Compliance in Supply Chains after 2018 • November 13 – Lancaster REACH – IUCLID • November 14 – Lancaster Introduction to the Biocidal Product Regulations • October 16 – Lancaster 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 4-6 – Heathrow • November 11-13 – East Midlands • November 18-20 – Luton • November 25-27 – Southampton • December 2-4 – Heathrow • December 9-11 – Stansted Carriage of Dangerous Goods by Air – Revalidation • November 7 – Heathrow • November 14-15 – East Midlands • November 21-22 – Luton • November 28-29 – Southampton • December 5-6 – Heathrow

• December 12-13 – Stansted Carriage of Diagnostic & Infectious Substances by Air • November 12 – Elstree Carriage of Lithium Batteries by Air, Road & Sea • November 7-8 – Heathrow • December 9-12 – Elstree Dangerous Goods Safety Adviser • November 11-15 – Heathrow • November 11-15 – Manchester TRANSCHEM TRAINING The Legion, Wigshaw Lane Culcheth, Warrington WA3 4LY, UK T (+44 151) 488 0961 www.transchemtraining.com ADR Initial • October 21-25 – Warrington • November 11-15 – Wakefield • November 18-22 – Warrington • December 2-6 – Wakefield • December 9-13 – Warrington

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GETTING CLINICAL PREVIEW • PENNSYLVANIA IS HOSTING ONE OF THE MOST ESSENTIAL CLINICAL TRIALS GATHERINGS IN THE US FOR THE EAST COAST THIS OCTOBER

AFTER GREAT SUCCESSES in previous years, Clinical Trial Supply East Coast will be returning to King of Prussia, Pennsylvania. The show will open its doors to the leading minds and industry influencers in pharmaceutical supplies on 16 and 17 October at the Valley Forge Casino Resort Hotel. Attendees will join pharma and biotech experts and take part in essential discussions surrounding new trends and opportunities. This is one of the prime opportunities to learn how clinical trial supply chains can be optimised from the best in the sector, enabling businesses to keep ahead in a rapidly changing environment. Clinical Trial Supply East Coast is one of the biggest shows in the US for pharma logistics and a huge number of key decision makers will be in attendance. There will be more than 35 exhibitors, nearly 50 expert speakers and 75 per cent of all attendees are directors or higher in their respective businesses. This is an unrivalled opportunity for a huge variety of businesses to source the best solution providers to partner with, allowing acceleration across trial timelines and innovative developments.

with dedicated talks on the topic alongside the importance of shipping integrity for swift movements through customs. Of course, no clinical trial supply discussion would be complete without a focus on security and timeliness. The variables that are faced when dealing with the clinical trial sector can be intimidating, but they are manageable. Expert speakers will hone in on the specifics of permit timelines, options when regarding temperature ranges, active/passive pros and cons, new technology becoming integrated with existing solutions and the technicalities of personalised medicines. The main floor will host exhibitors and plenty of networking spaces, including coffee

stations and buffets, while the expert-led presentations take place across the show. Exhibitors at this year’s event will include top-tier names such as PCI Clinical Services, Pelican Biothermal, Biocair and Sharp Clinical alongside many others. A couple of new formats have been added for 2019 after the success of the 2018 event. These new formats include think tank sessions and open forum discussions spread across the programme to provide attendees with the opportunity to engage directly with the speaking faculty. As multiple solution providers exhibit their solutions and co-presenting alongside sponsor companies this meeting promises to showcase best practices and techniques which are translatable into practice. For more information on the conference and exhibiting, email Hannah Toms (hannah.toms@arenainternational.com) and download the full agenda from the website. It promises to be an unmissable event for those seeking to take advantage of North American expertise. HCB www.arena-international.com/ctseastcoast/ register

STRENGTHEN THE CHAIN Pharma companies large and small will be rubbing shoulders with biotech businesses and embracing the opportunity to discuss, debate and consider new technologies and processes designed to streamline supply chain operations. Spread over two days, the show is set to cover all bases for those who handle pharma logistics. Topics will include discussions on the future of digitisation and how to prepare for clinical trial logistics in locations such as China and Canada. Keeping clinical trial patients the key focus of studies and catering to their needs will be a big conversation,

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CONFERENCE DIARY OCTOBER

EPCA Annual Meeting OCTOBER 6-9, BERLIN 53rd annual meeting of the European Petrochemical Association www.epca.eu Advanced Responsible Care OCTOBER 8, CREWE Workshop for Responsible Care coordinators, organised by CBA https://www.chemical.org.uk/training-andworkshops/advanced-responsible-care/ LNGgc OCTOBER 8-10, LONDON Annual conference on LNG shipping and trade https://energy.knect365.com/lnggc-london/ ICOPCE 2019 OCTOBER 21-24, SINGAPORE International chemical and oil pollution conference and exhibition www.icopce.com Oil & Non Oil 2019 OCTOBER 23-24, ROME Trade show on fuel and non-oil storage and distribution in Italy and Europe www.oilnonoil.it SMCR 2019 OCTOBER 24-25, SHANGHAI Fourth Summit Meeting on Chemical Regulations in Asia Pacific http://smcr.cirs-group.com/hcf&smcr/ DGAC OCTOBER 28-30, BALTIMORE Annual conference of the Dangerous Goods Advisory Council www.dgac.org/dgac-meetings-0 CHEMTREC International Hazmat Summit OCTOBER 29-30, HOUSTON Inaugural biennial forum for parties involved in the safe transport, handling and use of hazardous materials www.chemtrec.com/news-events/chemtrecinternational-hazmat-summit Lithium Battery Workshop OCTOBER 29-30, AMSTERDAM

Ninth IATA workshop on lithium battery regulations www.iata.org/events/cargo-events/pages/lbworkshop.aspx Gas Asia Summit OCTOBER 30-31, SINGAPORE Conference and exhibition, incorporating seminar on small and mid-scale LNG in Asia-Pacific www.gasasiasummit.com

NOVEMBER

Intermodal Europe NOVEMBER 5-7, HAMBURG Annual trade show and conference for the container, transport and logistics industry www.intermodal-events.com European Autumn Gas Conference NOVEMBER 5-7, PARIS 34th annual conference on Europe’s position in the global natural gas/LNG industry www.theeagc.com Argus Asia LPG & Petrochemical Feedstocks NOVEMBER 6-7, SHANGHAI Conference for LPG suppliers and buyers to discuss critical issues www.argusmedia.com/en/conferences-eventslisting/lpg-and-petrochemical-feedstocks Oil & Gas East Africa NOVEMBER 7-9, DAR ES SALAAM Fifth exhibition for the oil and gas sectors in Tanzania www.expogr.com/tanzania/oilgas/ APLA Annual Meeting NOVEMBER 9-12, BUENOS AIRES 39th annual Latin American petrochemical conference www.apla.com.ar/en/ ADIPEC NOVEMBER 11-14, ABU DHABI 35th annual Abu Dhabi International Petroleum Exhibition & Conference www.adipec.com NACD Annual Meeting NOVEMBER 11-14, MARCO ISLAND, FL 48th Annual Meeting of the National

Association of Chemical Distributors www.nacd.com/education-meetings/meetings/ annual-meeting/2019-annual-meeting/ Hazards Australasia 2019 NOVEMBER 13-14, BRISBANE Conference on process safety management in the chemicals sector www.icheme.org/career/events/hazardsaustralasia-2019/ ECTA 2019 NOVEMBER 14, DÜSSELDORF Annual meeting of the European Chemical Transport Association www.ecta.com/event-3232788 Opslagtanks NOVEMBER 14, DORDRECHT Dutch-language conference on storage tank and terminal safety in the ARA port area http://iir.nl/events/opslagtanks/ Oil Terminal 2019 NOVEMBER 14-15, ST PETERSBURG 13th oil terminal congress and exhibition www.oilterminal.org/en The Med Hub Day 2019 NOVEMBER 21-22, TARRAGONA Third annual workshop on regional tank storage issues www.hubdaytarragona.com EEMUA Storage Tanks Seminar NOVEMBER 28, DURHAM Annual EEMUA seminar to address issues with storage tanks www.eemua.org/tni/Calendar/Events/2019/Nov/ EEMUA-Annual-Storage-19.aspx

DECEMBER

GPCA Forum DECEMBER 3-5, DUBAI 14th annual meeting of the Gulf Petrochemicals & Chemicals Association www.gpcaforum.net NISTM DECEMBER 10-11, THE WOODLANDS, TX 12th annual National Aboveground Storage Tank Conference and Trade Show www.nistm.org

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Substance

Details

Source

28/6/19

nr Hay, truck NSW, Australia

dangerous goods

Ute (pickup truck) collided with truck on Sturt Highway; fire broke out in truck due to unspecified dangerous goods; ute driver was trapped and died in fire; investigation underway

Big Rigs

28/6/19

Naalya, road tanker fuel Wakiso, Uganda

Road tanker with unspecified fuel exploded after being struck by car trying to overtake it on highway; road closed while fire crews dealt with blaze; no injuries reported

Daily Monitor

28/6/19

Port Huron, freight train Michigan, US

40 cars in CN train derailed in St Clair River tunnel; one tank car with some 52,000 litres sulphuric acid leaked; WXYZ acid was contained on site and posed no threat to public but made removal of other cars very difficult

28/6/19

Topeka, road tanker unknown Kansas, US

Tank truck with unknown cargo ran off Topeka Turnpike into ditch, hit tree and caught fire; responders heard small explosions but said tank was not breached; driver died in crash

WIBW

28/6/19

Kingston Springs, road tanker MMA Tennessee, US

Tank truck was involved in collision in I-40; tanker rolled over, leaked methyl methacrylate to road; half-mile evacuation zone imposed; tanker driver hospitalised; highway closed in both directions for cleanup

1/7/19

Ahumbe, road tanker gasoline Benue, Nigeria

At least 60 people were killed when road tanker, which had rolled over and was leaking fuel, exploded; most of those killed were collecting fuel, but some were on passing bus; nearby shops razed in ensuing fire

This Day

2/7/19

Kostanay, rail tank car diesel Kazakhstan

Tank car derailed in yard of Ivolga Holding, spilling diesel; some 20 m² affected by spill; remaining diesel pumped from tank; incident under investigation

Trend

3/7/19

nr Centralia, road tanker lube oil Washington, US

Tank truck carrying used motor oil truck guardrail on I-5, rolled over; some 1,800 gal (6.8 m³) oil leaked and was spread along highway by passing vehicles; driver arrested under suspicion of DUI

The Olympian

4/7/19

Shuklai, road tanker fuel UP, India

Reliance fuel tanker overturned en route Faizabad from Lucknow; while crews were trying to right the tanker, Siasat it caught fire; six firemen injured, one fire truck damaged

7/7/19

Ogere, road tanker fuel Ogun, Nigeria

Tanker driver lost control after hitting another vehicle on Lagos-Ibadan highway; tanker rolled over, caught fire; four people suffered burn injuries; police blamed tanker driver, citing dangerous driving

Daily Trust

7/7/19

nr Krasnoturinsk, road tanker fuel Sverdlovsk, Russia

Road tanker swerved into ditch after brakes failed, caught fire and exploded; four people killed, 11 injured; reports said driver was drunk had had allowed seven locals to ride on top of the tanker

Xinhua

8/7/19

San Antonio, truck ammonia Texas, US

Truck was in collision with pickup on US 181; two plastics totes (IBCs) fell from truck, one rupturing and spilling 19% ammonia solution to road; one driver, two responders needed hospital treatment

mySA. com

10/7/19

Worcester, W Cape, road tanker LPG South Africa

Driver of gas tanker reversed into lamp post, damaging tank and causing leak of LPG; gas ignited by passing car; explosion caused fire in nearby buildings, some of which were destroyed; no fatalities

IOL

11/7/19

Afrin, road tanker diesel Syria

Bomb placed on road tanker was detonated in residential area, spreading burning fuel to nearby homes, businesses and other vehicles; 11 people killed, 35 injured

Daily Sabah

13/7/19

Fujairah, road tanker diesel UAE

Diesel tanker swerved, overturned on Yabsa bypass, catching fire; vehicle completely gutted but no injuries reported; cause under investigation

Gulf News

14/7/19

Chicago, road tanker diesel Illinois, US

Tank truck was in collision with SUV on I-55 expressway; tanker rolled over, caught fire; tanker driver killed in crash; northbound lanes closed overnight

CBS Chicago

14/7/19

Hays, freight train ethanol Kansas, US

Three tank cars in UP train derailed; fire crews set up 300-ft perimeter, some residents evacuated; no leaks found; roads remained closed while derailed cars were removed

Hays Post

18/7/19

Harwich, road tanker gasoline Massachusetts, US

Tank truck with 12,000 gal (45.4 m³) gasoline overturned after swerving to avoid animal; some 4,000 gal spilled, half of which was recovered; much of the rest reached storm drains to nearby marsh; driver unhurt

Cape Cod Chronicle

19/7/19

nr Junction City, truck munitions Kansas, US

Two trucks collided on I-170; one was carrying munitions between US Army arsenals; personnel from Fort Riley attended to assist; reports indicate that some munitions presented radiological hazard

KWCH

19/7/19

Suoi Nghe, road tanker oil Ba Ria, Vietnam

Oil tanker was hit on roundabout by another truck carrying sand; tanker caught fire; witnesses reported two explosions; truck completely gutted in fire; two people on truck died in blaze; tanker driver unhurt

Viet Nam News

20/7/19

Stung Hav, car gas cylinders Sihanouk, Cambodia

During delivery of 10 gas cylinders to Tumnop Rolok commune, one cylinder was dropped and exploded; one person decapitated by flying shrapnel; supplier found to be using old tanks

Khmer Times

21/7/19

East Jakarta, road tanker fuel Indonesia

32,000-litre Pertamina fuel truck hit separator at toll road spilt on Wiyoto Wiyono road; two on tanker killed in crash; car hit tanker, sparking massive fire that killed the car driver

Jakarta Post

21/7/19

nr Secunda, road tanker fuel MP, S Africa

Road tanker caught fire on R546 near Standerton, cause unknown; fire spread to veld and ignited vapours from redundant crude oil pipeline, which spread fire to Sasol gas pipeline alongside

The South African

HCB MONTHLY | OCTOBER 2019

Vehicle Type

sulphuric acid

SAFETY 107

ROAD/RAIL/AIR INCIDENTS (CONTINUED) Date

Location

Vehicle Type

Substance

Details

Source

24/7/19

Oxnadalsheibi, road tanker fuel oil Iceland

Road tanker with 30,000 litres marine fuel oil overturned on mountain pass in northern Iceland, spilling some Iceland 13,000 litres; responders struggled to prevent pollution reaching rivers; contaminated soil removed Review

24/7/19

Daingerfield, road tanker gasoline Texas, US

Tank truck exploded while loading gasoline at WOI Petroleum depot; one person seriously injured; several fire crews responded; cause not yet clear

KSLA

24/7/19

Crisp county, road tanker ethanol Georgia, US

Tank truck exploded in parking lot of Synergy Solutions ethanol and waste recycling plant; one person badly injured; no evacuations needed; not clear what caused the blast or whether the tanker had cargo at the time

WFXL

25/7/19

Yorkton, freight train crude oil Sask., Canada

CP oil train collided with Federated Co-op road tanker with fuel on crossing at Highway 9; road closed; no leak or fire reported and no serious injuries; RCMP to investigate incident

CJME News

26/7/19

nr Sandstone, truck explosives WA, Australia

Driver missing after his truck caught fire, exploded in remote location on Sandstone-Menzies road; truck had ABC unknown quantity of mining explosives; investigators from Perth looking into the event

26/7/19

Greensboro, freight train ethanol Georgia, US

Eight NS tank cars with ethanol derailed; fire crews found no leaks from the tanks, each of which had 30,000 gal (113.6 m³) ethanol; NS brought in crane from Atlanta to right tanks; cause under investigation

28/7/19

San Rafael, road tanker gasoline California, US

Tank truck with 6,700 gal (25.4 m³) gasoline overturned on rural road, leaking some cargo to dry creek bed; CBS driver had taken wrong road, could not manage hairpins through valley; most spilt fuel expected to evaporate

29/7/19

Houston, truck fertiliser Texas, US

Two workers were killed after one opened hatch on mobile fertiliser truck; both were overcome by fumes and NBC died at the scene; hazmat crews monitored air quality at incident site near high school DFW

31/7/19

Tunfure, road tanker diesel Gombe, Nigeria

Vehicle crashed into road tanker on Gombe-Bauchi expressway, killing motorcyclist; tanker caught fire, exploded, spreading blaze to other vehicles; witnesses said illegally parked vehicle caused the incident

WXII

Channels TV

MARINE/INLAND WATERWAY INCIDENTS Date

Location

1/7/19

Vessel

Substance

Details

Source

Aliaga, Syn Zania LPG Turkey

Explosion, fire during loading of SOCAR-owned LPG tanker (4,000 dwt, 2008) at Pekim refinery; one person killed, 16 injured; cause of explosion not yet known

Bernama

6/7/19

off Ngqura, E Cape, Chrysanthi S fuel oil South Africa

Up to 400 litres bunker oil spilled in Algoa Bay during fuelling of bulker (80,000 dwt, 2012); spill resulted in oiling of endangered African penguins; vessel owner fined; locals repeated concerns at bunkering operations

Herald

9/7/19

Guaymas, — Sonora, Mexico

Some 3,000 litres sulphuric acid spilled from Grupo México mine to Gulf of California, causing small fish kill; operator played down significance but environmental groups noted persistent pollution by the company

Mexico News Dy

12/7/19

West Java, — crude oil Indonesia

At least 10 beaches, seven villages affected by oil spill from Pertamina’s Offshore North West Java field; damaged wellhead leaked oil for more than two weeks; company expected cleanup to take three months

Jakarta Post

28/7/19

Ambarli, Icdas 5 scrap Turkey

Fire broke out in cargo hold of cargo ship (15,600 dwt, 2019) at berthed in Marmara Sea; cargo was scrap metal; shore-based fire crews had blaze quickly under control but ship said to have suffered damage

FleetMon

29/7/19

Semarang, Zulkifli 2 gas Java, Indonesia

Four shipyard workers were killed, allegedly from inhaling poisonous gas while working in hatch of barge {simple asphyxiation also possible) at Tanjung Emas seaport; authorities investigating incident

Antara News

Details

Source

sulphuric acid

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

1/7/19

Celaya, pipeline natural gas Guanajuato, Mexico

Construction workers accidentally punctured gas pipeline, sending fireball into the sky; nearby businesses evacuated; three people injured, one reported missing

2/7/19

Dunedin, freight depot nitric acid New Zealand

Container of concentrated nitric acid fell off pallet at PBT Transport site, spilling some product; facility was evacuated but one manager needed hospital treatment; no off-site impact

Otago Dy Times

4/7/19

Ijegun, pipeline gasoline Lagos, Nigeria

Two people were killed, more than 30 vehicles destroyed by explosion, fire after thieves tapped into NNPC pipeline; reports suggest thieves allowed some fuel to drain to ditch so they could ignite it and escape

Gulf News

4/7/19

Fort Mill, stores fireworks S Carolina, US

Fire broke out in containers with fireworks stored ahead of Fourth of July celebrations at two stores in town; responders had to dodge exploding rockets to bring blaze under control

USA Today

10/7/19

Dera Bassi, Punjab, India

pharmaceutical chemicals plant

One worker killed, 12 injured by powerful explosion at Punjab Chemicals & Pharmaceuticals plant; one unit at factory completely destroyed; blast broke windows in nearby homes; cause unknown

The Tribune

11/7/19

Phoenix, Arizona, US

storage ethanol terminal

Around 1,000 gal (3,800 litres) ethanol leaked at Kinder Morgan terminal; some workers evacuated, no injuries KJZZ reported; not clear what caused the spill, which was all cleared up

WWW.HCBLIVE.COM

MISCELLANEOUS INCIDENTS (CONTINUED) Date

Location

Plant type

12/7/19

Rochester, Pennsylvania, US

13/7/19

Substance

Details

Source

pool supply chlorine store

Complex emergency at abandoned pool supply store, initially involving fire that prompted evacuation; fire later broke out in waste bin with chemicals; site unoccupied for five years and very dilapidated

CBS

Muar, Johor, Malaysia

electronics factory

Fire crews called to factory found three of four 220-litre drums of sodium fluoride leaking, possibly due to contamination; soda ash applied to soak up spill; no injuries recorded

Bernama

15/7/19

nr Tel Aviv, Israel

ammunition munitions plant

Explosion, fire in warehouse used to store smoke grenades at Israel Military Industries plant; authorities said Jerusalem there was “unknown malfunction”; incident quickly under control with no threat to public Post

17/7/19

Accomac, Virginia, US

poultry paracetic processing plant acid

Fire broke out in storage tank outside Perdue Processing facility; fire crews found tank with paracetic acid Shore and/or “chloride”, close to fuel tank, on fire; crews allowed fire to burn out; precautionary evacuation ordered Dy News

19/7/19

Yima, gas plant gas Henan, China

At least 15 people killed, 15 injured by explosion in air separation unit at Henan Coal Gas facility; blast shattered windows 3 km away; investigation underway

PTI

22/7/19

St Clair, Ohio, US

Five employees injured by explosion at Midwest Ammunition facility, reportedly during “work on a machine”; factory on fire; bad weather prevented helicopter transport of victims; fire marshal’s office investigating

WLWT

23/7/19

Rialto, bunker fireworks California, US

Fireworks stored in an earthen bunker at Pyro Spectaculars by Souza facility exploded; fire was confined to the one bunker, as layout is designed to prevent spread of fire to other bunkers; spectacular show but no injuries

PressEnterprise

24/7/19

Bourges, Cher, France

Some 2,000 litres nitric acid spilled from container at MBDA missile factory; around 50 employees evacuated; France3 nearby residents asked to shelter in place; two police who were called to the site needed treatment

24/7/19

Gagret, battery plant HP, India

27/7/19

Guarello Island, fuel terminal diesel Chile

sodium fluoride

ammunition explosives plant

armaments nitric acid factory sulphuric acid

One worker died following explosion (more likely rupture) of storage tank with sulphuric acid at JMD battery plant; police investigating incident

The Tribune

Some 40,000 litres diesel spilled at terminal owned by mining company CAP SA on island near Puerto Natales; Reuters CAP mines limestone on the island; some of the spill reached the sea; Chilean Navy investigating

Brave new world We’re ready. To set the standard even higher. We have become the industry standard, the benchmark, in fact the market leader in transport and logistics insurance. We owe this position to one simple fact: we are committed to going above and beyond for our Members. Year on year our expert staff, the knowledge and support they offer, and the quality of our underwriting and claims services surpass our Members’ expectations. No one is more confident about embracing the future. For unrivalled customer service visit ttclub.com

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10/09/2019 12:09

SAFETY 109

SILVER MEDAL AUDITS • FOUNDED 25 YEARS AGO, CDI CONTINUES TO PROVIDE A SERVICE TO ITS CHEMICAL INDUSTRY MEMBERS AND TO SERVICE PROVIDERS IN THE CHEMICAL SUPPLY CHAIN THE CHEMICAL DISTRIBUTION Institute (CDI) is 25 years old this year, marking a significant milestone in the promotion of safety and sustainability in the chemical supply chain. CDI was originally established by the chemical industry to inspect and audit oceangoing vessels carrying liquid chemicals and gases in bulk, in parallel to the SQAS audit scheme for land-based operations, but its remit was soon extended to a similar system for inspecting and auditing bulk liquids storage terminals (CDI-T). The tanker inspection scheme, CDI-M, and CDI-T are now well established around the world and have contributed to improved safety standards in both markets. CDI has also attempted to do the same for the packaged chemicals sector via the International Marine Packed Cargo Audit Scheme (IMPCAS), although this enormous project has as yet had a less comprehensive influence, largely due to the extraordinarily large number of players involved. Nonetheless, CDI, under general manager Capt Howard Snaith, continues to provide not only a quality and safety assessment service to its chemical industry members but also information to tanker and terminal operators. For instance, last month CDI introduced the ninth edition of its Ship Inspection Report, which is used by assessors around the world, and is about to launch the seventh edition of its Terminal Inspection Report, which includes a benchmarking function. Both of these new editions respond to changes in the industry and requests from its members for more specific information. The value of CDI’s activities is reflected in continuing growth among its membership. Over the past year, for instance, the CDI-T scheme has gained two additional chemical

company participants – MEGlobal International and Tricon Energy – and two new terminal company participants, Oiltanking Singapore Chemical Storage and Tristar Transport LLC. SERVICE SUCCESS In terms of the provision of information to operators, an important part of its remit, CDI this year published a new book, Packaged Chemicals By Sea: Risk Mitigation. “The commercial success of all companies is built on reputation. With the lightning speed and ferocity of modern media, a good public image in the international marketplace remains intact until the moment of an incident,” CDI notes. “This book provides insight into the entire marine logistic distribution supply chain and the responsibilities of chemical manufacturers and their service providers.”

For those in the chemical tanker sector, last year CDI published Chemical Tanker Operations for the STCW Advanced Training Course, a comprehensive guide to chemical tanker cargo operations. It is an essential reference point for serving officers and managers, as well as those undertaking advanced training as required by the STCW Convention. It covers topics such as international regulations, cargo handling and hazards, environmental protection, emergency response, safety management, tank cleaning and ship design and equipment. Both of these publications are available from Witherby Seamanship International. CDI has lost none of its purpose over the past 25 years and in June this year elected a new chairman of the board: Capt Jan Antonsson, global maritime technical manager, chemicals at Shell International Trading & Shipping, who said on his appointment: “CDI has been leading the chemical and LPG industry in providing assurance to its members in safety, security and quality performance for the last 25 years. CDI has continuously improved and enhanced its services, going from strength to strength. Under my chairmanship CDI will continue to improve safety for vessels crews and terminal operators, ensuring the safe and sustainable transport and storage of chemicals and gases in the industry.” HCB www.cdi.org.uk

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110

FIXING A HOLE SURVEY • UNDERSTANDING THE GAPS THAT EXIST IN A COMPANY’S DG SUPPLY CHAIN IS THE FIRST STEP TO BEING ABLE TO PLUG THEM, SAYS LABELMASTER VICE-PRESIDENT ROB FINN THE GROWTH OF e-commerce, coupled with the supply chain evolution, has made moving dangerous goods (DG) in a safe and compliant manner more important than ever. Unfortunately, several key gaps exist within organisations’ processes and infrastructure that make maintaining a reliable hazmat supply chain challenging. This much was evident in the report of the 2019 Global Dangerous Goods Confidence Outlook survey, conducted by Labelmaster, IATA and HCB to gain insights into how organisations around the world approach DG shipping and handling, and the challenges they face. The results found that DG professionals continue to find compliance challenging and

 THE 2019 DG CONFIDENCE OUTLOOK SURVEY REVEALED SOME TELLING DIFFERENCES IN THE ABILITY OF DG PROFESSIONALS TO DO THEIR JOB, GIVEN THE LEVEL OF SUPPORT THEY RECIEVE AND THE TECHNOLOGY THEY HAVE AT THEIR DISPOSAL

HCB MONTHLY | OCTOBER 2019

time-consuming, and desire additional support from their companies in order to better ensure compliance, support future operational needs and gain greater business value from the supply chain. Overall, budget constraints, lack of adequate technology, lack of seniorlevel executive risk awareness, and resource constraints all contribute to this sentiment. LACKING IN CONFIDENCE The supply chain has a great impact on an organisation’s overall business performance and managing DG safely and compliantly as part of the supply chain adds a greater level of complexity. Given this, how do DG pros feel about the value of their supply chains? According to the 2019 survey, two-thirds of respondents have confidence that the investment their company makes to support DG compliance can meet current needs; however, 21 per cent said that it does not meet current needs and only 13 per cent believe their current investment can support future needs.

The lack of confidence many DG pros have in their organisation’s supply chain is partly the result of specific gaps within their operations and infrastructure, and partly due to specific gaps within the global hazmat supply chain itself. The continued growth of e-commerce has brought with it challenges for companies, including increased reverse logistics activity. In fact, independent research suggests that 30 per cent of products ordered online are returned. This onslaught of return deliveries – both consumers returning to stores and stores returning to manufacturers and distributors – has created a challenging reverse logistics environment. And it is compounded by the fact that many products being purchased and returned online contain hazardous components, such as lithium batteries, medical devices, laptops, varnishes, paints, cosmetics and other items. Unfortunately, many DG pros are not confident in their organisation’s ability to manage this process. Overall, only one in five DG pros believes their company can support future reverse logistics needs, with those in North America the least confident (14 per cent), compared to 24 per cent in Asia-Pacific and 23 per cent in Europe. Developing a strong reverse logistics process for hazardous products requires a thoughtful, proactive approach. This begins with a clear understanding of how reverse

SAFETY 111

logistics and returns impact the supply chain and the overall health of the company. It then extends to identifying the impact that a mismanaged process could have on customer perception and brand reputation, followed by a determination of more streamlined ways to marry efficiency with safety in order to achieve positive change. CLARITY OF THOUGHT The supply chain is becoming increasingly data-driven, making access to and communication of timely and accurate master data imperative. Unfortunately, data accuracy, completeness and reliability remain challenging for DG pros. This is reflected in both the centralised data stored and communicated across companies’ supply chains, and in the data quality and accuracy they receive from upstream supply chain partners. One key reason for organisations’ inability to achieve data collection and transparency is the use of limited and disparate technology across the supply chain. While technology has continued to advance and is critical to the supply chain, more than half of DG pros – 55 per cent - still rely on manual processes for shipping DG. Manual processes are wrought with inefficiencies, including the inability to validate shipments against the latest regulations, and an overall slowing of shipping time. But simply using technology is not a guaranteed fix for DG management and compliance challenges. In many cases, DG pros believe that using their company’s existing systems, such as ERP and WMS, are not particularly effective or relevant in terms of DG functionality. Technology can significantly improve the efficiency, accuracy and compliance of shipping dangerous goods. But every company is different, so it’s not a ‘one size fits all’ approach. It’s about using the right technology and getting the most out of it. DG shippers need to understand the functionality of their systems, know how these systems integrate into the DG supply chain, and then identify gaps in their infrastructure and processes. This will help improve compliance while providing greater

transparency, both internally and with supply chain partners. MIND THE GAPS While some supply chain issues have to do with internal process or infrastructure gaps, others have to do with the risk associated with partners. In fact, 71 per cent of survey respondents wish their supply chain partners were as compliant as their own company. While this often comes as a result of the manufacturers, retailers or distributors they do business with not having adequate resources or training to handle and ship DG properly, in some cases this comes about as a result of risk transfer with carriers. In fact, 42 per cent of survey respondents agree that the carelessness with which carriers handle or transport DG is a significant problem for their business, though this sentiment varies based according to region, with those in North America (30 per cent) and Europe (41 per cent) less likely to suffer compared to their counterparts in Asia Pacific (58 per cent), Africa and Middle East (53 per cent) or South America (80 per cent). Although DG pros feel that their carriers share part of the responsibility for hazmat supply chain gaps, they also point to regulators for the complexities of hazmat supply chain management. When asked, “If you had the opportunity to influence regulatory bodies who define the DG shipping rules, which of these ideas would you be most in favor of?”, half of respondents indicated “develop one core set of requirements that are common to all regulatory bodies and then have annexes for all modes” as their top choice. THREE TRIBES In order to successfully navigate an increasingly complex and dynamic hazmat supply chain landscape, organisations need to overcome these supply chain gaps. Unfortunately, this can be extremely difficult as many companies lack the resources and processes required to meet current supply chain needs, and few have the budget and infrastructure necessary to address future requirements. Labelmaster identified three distinct groups based on attitudes and behavioral

responses revealed in this year’s survey – basically compliant, safely compliant and competitively compliant – with each facing unique challenges. The group an organisation falls into based on its attitude toward, and approach to, compliance directly impacts the level of confidence a DG pro has in ensuring enterprise-wide compliance. Regardless of which type of organisation they work for, DG pros still desire more resources in order to increase DG confidence and deliver real business value. However, the specific gaps that need to be addressed, and how they influence management into providing additional support, varies. Understanding which group fits their company can help DG pros develop a practical framework for prioritising resource needs and making compliance a competitive advantage that drives revenue, improves supply chain performance, reduces risk and enables better customer service. To learn more about these groups, the gaps that exist within the DG supply chain and ideas for how to improve DG compliance within your organisation, download the full report at www. labelmaster.com/dg-confidence-outlook/. HCB

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DEVIL IN THE DETAIL MULTIMODAL • THE JOINT MEETING’S SPRING SESSION WADED THROUGH PLENTY OF DETAIL BUT MADE FEW DECISIONS ON CHANGES TO THE 2021 REGULATORY TEXTS

THE SPRING 2019 Joint Meeting of the RID Committee of Experts and the UN Economic Commission for Europe (ECE) Working Party on the Transport of Dangerous Goods (WP15) took place in Bern, Switzerland this past 18 to 22 March. The aim of the meeting was to continue work on the development of amendments that will appear in the 2021 editions of the regulations governing the transport of dangerous goods by rail (RID),

road (ADR) and inland waterway (ADN) in Europe and in those other countries that have adopted or observe those regulations. The meeting was chaired by Claude Pfauvadel (France) with Silvia Garcia Wolfrum (Spain) as vice-chair. It was attended by representatives of 21 full member countries, the European Commission (EC), the EU Agency for Railways (ERA), the Organisation for Cooperation between Railways (OSJD) and 11 non-governmental organisations.



TANKS MATTERS As per the usual practice, papers relating to tanks were remitted to the Working Group on

THE JOINT MEETING MUST ADDRESS THE NEED FOR REGULATORY HARMONY TO HELP INTERMODAL TRANSPORT

HCB MONTHLY | OCTOBER 2019

Tanks, which met for the first three days of the session under the chairmanship of Arne Bale (UK) with Kees de Putter (Netherlands) acting as secretary. Its first task was to review a proposal from Belarus, following up on discussions at the previous meeting of WP15, to change the word ‘test’ to ‘inspection’ in 6.8.2.5.1, to align the tank marking requirement with the provisions for inspections in 6.8.2.4.1 to 6.8.2.4.4. This was easy for the Working Group to agree. A follow-up informal document from the UK led to similar changes in 6.8.2.5.1, 6.8.3.5.10, 6.8.3.5.11 (RID only), TT6 and TT8 in 6.8.4(d), and 6.10.4. Belgium raised a question in plenary as to whether the term ‘exceptional check’ used in 6.8.2.4.4 should be replaced by ‘exceptional inspection’. This too seemed sensible, although this would require a formal proposal at a later meeting. Belgium sought the Working Group’s opinion on a request it had received for interim approval for the carriage of trifluorochloroethylene, classified as UN 3160 liquefied gas, toxic, flammable, nos, in T50 portable tanks by rail and road. This is

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not permitted in RID/ADR but is permitted for maritime transport under 6.7.1.3 of the International Maritime Dangerous Goods (IMDG) Code by special permit 14193 issued by the US Department of Transportation. RID/ ADR permit the carriage of UN 3160 goods in PxBH tanks and Belgium queried why this is not the case for T50 tanks. The Working Group noted that the US’s interim approval is in place pending the introduction of applicable provisions in the regulations and felt that a proposal for assigning a portable tank instruction for this substance should be submitted to the UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG). The International Tank Container Organisation (ITCO) returned to the problems being experienced by the definition in 1.2.1 of ‘Tank-container/portable tank operator’, which refers to the enterprise “in whose name the tank-container/portable tank is registered”. That enterprise is often a financial entity such as a leasing company or bank that takes no part in the tank-container/ portable tank operator’s safety obligations as per Chapter 1.4. ITCO pressed for the replacement of the word ‘registered’ in the definition by ‘operated’. The prospect of a change in this definition is hampered by terminology used in RID relating to ‘tank-wagon operator’ and ‘tank-wagon keeper’. The Working Group put forward three options but the Joint Meeting was unable to

decide. The issue will need to go back to the Working Group and, at the request of ERA, the Joint Coordinating Group of Experts. Romania continued with its work to tidy up the often conflicting use of the words ‘risk’ and ‘hazard’ or ‘danger’ in the regulations and the Working Group looked at its proposals relating to Chapters 4.3, 6.8 and 6.10, making some comments that the Romanian delegate agreed to take into consideration. While the proposed amendments to the English text were seen to be justified, more thought needs to be given to the amendments to the French text. The UK returned with another paper, following discussions at the two Joint Meetings in 2018, regarding the protection required for fittings and accessories mounted on the upper part of vacuum-operated waste tanks in the event that the vehicle overturns. The UK proposed to amend 6.10.3.1 to clarify that the requirements of 6.8.2.1.28 apply to items of equipment that may be positioned in the ‘protected area’ on the top of the tank. Two views were expressed by the Working Group: firstly, that 6.8.2.1.28 is not overtaken by Chapter 6.10 and therefore is not excluded by 6.10.3.1; and secondly that 6.8.2.1.28 was never intended to apply when equipment is placed in a ‘protected area’. Some experts also noted that there have only been a few accidents and, in those where there was no protection, there has been no loss of contents due to damaged equipment. »

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It was not possible to reach a conclusion, although it was agreed that the current text would benefit from clarification. The UK will present a revised proposal taking account of the comments made. The UK also submitted a report on the ninth session of the informal working group on the inspection and certification of tanks. The main objective of the group is to establish a common approach of reciprocal recognition for the administrative controls and procedures for conformity assessments, type approval certification and inspections, with inspection bodies approved on the basis of EN ISO/IEC 17020. The working group had come up with completely revised texts for 1.8.6 and 1.8.7 and some amendments to Chapter 6.8. The document had drawn a number of informal documents, including one from EC that proposed amendments to help ensure the proper functioning of the Transportable Pressure Equipment Directive (2010/35/EU). In particular, this had new wording for 1.8.6.2.1. As this was the first time the complete set of proposed amendments was available it was felt that the impact of the new wording should be further considered at the next meeting of the informal working group, due to take place in London in June. The Joint Meeting

concurred with the Working Group on Tanks on the need to ensure a common approach for the reciprocal recognition of administrative controls and procedures, and invited the Working Group to continue to review the proposed amendments. Poland followed up on the informal document it had presented at the previous Joint Meeting with a proposal to introduce into RID/ADR provisions concerning carriage of goods in tank-wagons, demountable tanks, battery-wagons (RID)/fixed tanks (tank-vehicles), demountable tanks, batteryvehicles (ADR), tank-containers, tank swap bodies and multiple-element gas containers (MEGCs) after the date of expiry of the last intermediate inspection. Poland was seeking a common solution to the issue, after numerous discussions on the topic, not least those involving the International Union of Railways (UIC). Its proposal included revisions to 4.3.2.3.7 to allow tanks filled prior to the specified date of the last inspection to be used for up to three months. The Working Group agreed the proposal in principle but felt that the wording could be improved; the amendment has been adopted pro tem in square brackets pending an editorial review.

In an informal document, the UK provided its preliminary findings from a test programme being undertaken on pressure relief valves on LPG road tankers. This programme aims to build a base of evidence that will allow inspection bodies at intermediate inspections to justify a check of the documentation or the marking of pressure relief valve set pressures (as permitted by EN 14334:2014) rather than physically testing such valves. So far, 145 valves had been tested and only one showed a deviating opening pressure. This valve was thought to have been incorrectly set prior to installation. The Working Group thanked the UK for its work, noting that tanks constructed according to EN 12493 may be inspected based on EN 14334, which allows visual inspection of the pressure relief valve. An informal document from the Netherlands addressed the dual approval of tanks as portable tanks and as tankcontainers. While acknowledging that dual approval may be confusing for inspection bodies, users and enforcement agencies, the Netherlands acknowledged that it could be beneficial for industry. One option might be to introduce additional portable tank instructions that would be applicable only for inland use, although this would involve a lot of work and agreement in principle should be reached before embarking on the task. While there was some support for the approach suggested, most delegations expressed the view that dual approvals should no longer be issued. It was then decided that there was no need to continue with the project. However, the Netherlands delegate indicated that he would work with the representative of Belgium to find a solution. The International Union of Private Wagons (UIP) returned to the difference between EN 14025 and EN 12561 in terms of the diameter of manholes in tanks. The latter references EN 14025:2008, which allows for standard flanges with an internal diameter of 492 mm; the Working Group was of the opinion that

 THE VARIOUS EXPERTS DISAGREE ON THE VALUE OF THE DUAL APPROVAL OF TANKS UNDER UN AND ADR

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the earlier minimum internal diameter of 500 mm needs to be satisfied and, in that case, a transitional measure could be required for tank-wagons built according to EN 14025:2008. Germany asked for an interpretation as to whether heating elements are permitted on fibre-reinforced plastics (FRP) tanks; in the English and French texts, the wording of 6.9.1.3 states that heating elements shall not be used for FRP tanks. This only refers to the design and construction of FRP tanks but the majority view was that they should not be equipped with heating elements. However, the representative of the Netherlands pointed out that this provision was interpreted differently in his country. Delegations were invited to consider whether a proposal for further clarification was needed. STANDARD APPROACH Papers relating to standards were passed to the Working Group on Standards, which met during lunch breaks. Prior to the Joint Meeting, a series of teleconferences had taken place where contracting parties and states had discussed the changes being made by the European Committee for Standardisation (CEN) and the International Standardisation Organisation (ISO), leaving only a few matters to be discussed. There were no recommendations to reference any new or revised standards in the 2021 RID/ADR text at the session.

The Working Group did identify that there was a need to specify that the change from using a technical code to using a new standard should be subject to a transitional period and offered a proposed amendment to 6.2.5 and to 6.8.2.7 and 6.8.3.7. The latter proved acceptable to the Joint Meeting. It will involve the insertion of a new paragraph after the first paragraph in 6.8.2.7: As soon as a standard newly referenced in 6.8.2.6 can be applied, the competent authority shall withdraw its recognition of the relevant technical code. A transitional period ending no later than the date of entry into force of the next edition of RID/ADR may be applied. At the end of the first sentence in what is now the third paragraph, the following text is add: “and shall update the list if it changes”. Similar text is added in 6.8.3.7. The chair of CEN’s technical committee TC 296 announced that a new version of prEN 13094 Tanks for the transport of dangerous goods – Metallic gravity discharge tanks – Design and construction, is currently in the process of preparation. Aside from the actual standards, there is growing concern that there is a loss of expertise in the standards-making procedure and among the regulators themselves. EC has now announced its intention to withdraw the M/086 mandate, meaning there will no longer be a consultant specialising in TDG issues. Some non-governmental »

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organisations involved are keen to contract an independent advisor in the context of RID/ ADR/ADN. A proposal was put together by the Working Group, noting that everyone benefits from having good quality standards referenced in RID/ADR, with the primary concern of all being safety. “We have had a situation with the CEN Consultant that has worked well for many years and is now not able to function,” it says. The Joint Meeting welcomed this initiative and invited non-governmental organisations to take the necessary steps to implement it, on the understanding that the independent standards advisor would continue to work in accordance with the terms of reference and the mandate given by the Joint Meeting to the former CEN consultant. The Joint Meeting will be informed on progress at its autumn 2019 session. In response to an informal document from Finland, and noting that accreditation bodies always refer to the most recent version of a standard, the Joint Meeting agreed in principle that the reference to EN ISO/IEC 17025:2005 should be updated, as this will not expire until October 2020 despite the 2017 edition already being available. Some delegations indicated that the reference to EN ISO/IEC 17020 might also need to be updated. It was suggested that the need for regular updates of references to specific editions of

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standards could be avoided by the use of dynamic references indicating the use of “the latest version applicable”. The Joint Meeting invited Finland to submit an official document for the next session with a proposal that would take account of the comments made. INTERPRETATION OF RID/ADR/ADN Germany raised what it referred to as “undesirable developments” in the delegation of inspection tasks in accordance with 1.8.6.4.1. It is mistakenly assumed that an accredited inspection body’s accreditation would cover not just the entity itself, with its locations, but also external subcontractors (separate legal entities). This is obviously not correct. Further, it is sometimes assumed in the market that 1.8.6.4.1 authorises the accredited inspection body itself to assess the competence of its subcontractor in accordance with EN ISO/IEC 17020 or EN ISO/IEC 17025 by carrying out an ‘audit’ and that accreditation of this subcontractor can then be dispensed with, because ‘equivalence’ has been demonstrated. This is also obviously incorrect. Germany invited to discuss the matter and its strict interpretation that it offered in its paper. An informal document from France helped illuminate the issue, noting that 1.8.6.4.1 mentions that an inspection

body may use subcontractors to perform some of its tasks if (a) the external entity is accredited separately or (b) the external entity (subcontractor, subsidiary) is not accredited separately, in which case it shall be included in the accreditation of the inspection body. The Joint Meeting took up point (b), noting that such an approach does not imply accreditation of the subcontractor by the inspection body. The assessment of the subcontractor may be done by the inspection body but the way in which it is performed is subject to procedures validated in the context of its accreditation by the accreditation body. An ongoing monitoring process takes place as part of the accreditation procedure which allows the subcontractors to be included in the inspection body accreditation. The representative of Germany took note of the interpretation provided by the Joint Meeting and said that she would further check how this issue is being addressed at national level in her country and on the basis of the outcome, may consider the need to request additional clarifications. PROPOSALS FOR AMENDMENT Spain returned to an issue it had raised at the previous Joint Meeting on the differences in the name and description of UN 1010 between RID/ADR and the UN Model Regulations. In the latter, the entry is

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‘Butadienes, stabilised or Butadienes and hydrocarbon mixture, stabilised, containing more than 40% butadienes’. Meanwhile, the latter part of the entry in RID/ADR reads: ‘having a vapour pressure at 70˚C not exceeding 1.1 MPa (11 bar) and a density at 50˚C not lower than 0.525 kg/l’. These two definitions are not equivalent. Spain had looked closely at alternative UN entries for mixtures that do not meet the UN definition, referring in particular to UN 1965 Hydrocarbon mixture, liquefied, nos and UN 3161 Liquefied gas, flammable, nos, which have different special provisions assigned and do not have SP 386 relating to stabilisation. Spain offered a proposal that sought to align the name and description for UN 1010 in RID/ADR with that in the UN Model Regulations and to add a new special provision for mixtures containing less than 40 per cent butadienes. The Joint Meeting thought this special provision could be confusing but agreed to adopt the first part of the proposal and change the name and description of UN 1010.

The International Road Transport Union (IRU) came with a proposal based on discussions at the previous Joint Meeting and during WP15, where several delegations agreed that ADR should be amended to allow new methods of training, such as online and videoconference courses, to be used in the future. It had also been confirmed that online driver training for dangerous goods in some contracting parties is already an option for the driver when applying to refresher training. IRU now proposed amending 8.2.2.5.2 in ADR to allow one day of e-learning for the theoretical part of refresher training courses. There was support in principle for the proposal but the Joint Meeting considered that the text offered by IRU was too open and needed to be further refined before it could be considered for adoption. Some delegations felt that, should provisions for online training be introduced into ADR, they should provide clear guidance to competent authorities on what could or could not be allowed to ensure a common approach among contracting parties. The Joint Meeting invited IRU to return with a revised proposal in light of the comments made. HCB

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The second part of this two-part report on the spring 2019 Joint Meeting will look at further proposals for amendment and reports from informal working groups.

OPPOSITE: THE UK HAS BEEN EXAMINING THE NEED IN PRACTICE TO INSPECT PRESSURE RELIEF VALVES DURING THE PERIODIC INSPECTION OF LPG ROAD TANKERS

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PLUS ÇA CHANGE CONFERENCE REPORT • VCA KEEPS THE UK AND IRISH DG COMMUNITY UP TO DATE WITH DEVELOPMENTS BUT THIS YEAR’S SEMINAR HAD SOME DEPRESSINGLY FAMILIAR STORIES TO TELL THE ANNUAL DANGEROUS goods seminar organised by the Vehicle Certification Agency (VCA) on behalf of the UK Department for Transport (DfT), provides an excellent opportunity for dangerous goods safety advisers (DGSAs), trainers and others involved in compliance with the transport regulations to hear about the latest and upcoming changes to those rules. It also helps to highlight issues with compliance and enforcement, as well as external issues that are impacting the business. So it was, then, that at this year’s 34th annual VCA Dangerous Goods Seminar, held at the Daventry Court Hotel this past 4 and 5 June, delegates were treated to the usual updates on UK, European and international regulations from an expert panel of speakers, including a number from DfT’s Dangerous

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Goods Division, as detailed in the first part of this report on the event (HCB September 2019, page 56). It was apparent to regular delegates that DfT has not only hired a new team of younger people to take the Division forward, but also that the leadership are more than happy to give them their head when it comes to representing the UK at international fora and to present the results of those meetings to attendees at the VCA seminar. WORDS FROM THE OLDIES Bearing in mind the arrival of some newer faces among both regulators and the regulated, HCB’s editor-in-chief Peter Mackay gave a lively presentation, outlining his belief that, as older members of the dangerous goods community retire or die off, it is

important that the lessons that have been learned the hard way over the past decades are not forgotten. Readers who follow Peter’s weekly video presentations will be aware of this conversation, which at the VCA seminar covered such events as the explosion aboard the chemical tanker Stolt Valor, the process mishaps at Flixborough and Seveso in the 1970s, the horrific road tanker explosion outside the Los Alfaques campsite near Tarragona, and of course the fire aboard the containership MSC Flaminia in 2012. In each case, someone made a decision that led to loss of life, whether to save time or money or due to ignorance or the willingness to take a chance. Peter quoted Warren Buffett, saying: “It’s good to learn from your mistakes; it’s better to learn from other people’s mistakes.” Bringing things back closer to home, Phil Lapczuk, operations enforcement manager at the Driver and Vehicle Standards Agency (DVSA), gave his regular update on roadside enforcement activity, which is just one element of the Agency’s remit to improve safety for all road users. DVSA inspects around 1 per cent of all dangerous goods vehicles; in the year to end March 2019 that amounted to 1,715 vehicles, of which 581 inspections revealed infringements of the regulations, leading to 384 prohibitions. Load securing is a big issue “and not going away,” Phil said, just has he has done over and over again. What has changed is that DVSA now has the power to levy on-the-spot fines. But most prohibitions are driver-related and again the situation has not improved. Why is this? Is training adequate? Does it deliver competence? DVSA is now considering the introduction of fines for intervention, something that the Health & Safety Executive already has at its disposal. EYES IN THE SKIES Continuing with the theme of enforcement, Keith White, acting head of VCA’s Dangerous Goods Office, summarised the situation in airfreight. There had been a significant reduction in incidents and events over the past 50 or so years, he said, but that trend has now levelled out; further improvements will need a new approach.

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The UK Civil Aviation Authority (CAA) is working on improving its ability to manage oversight of safety risks and to allocate resources to those areas with the greatest potential to enhance safety, and to increase the effectiveness of its safety regulation activities and projects. The aim of the work is to establish a system of performance-based oversight and regulation, although there are concerns about the ability of CAA to undertake the work given its apparent lack of resources. Terry Harvey, a police officer with the Suffolk Constabulary and, since late 2018, chair of the National Carriage of Dangerous Goods Practitioners Forum, explained what the Forum does and the role of the police in enforcing the transport regulations. Across the UK there are two national check weeks each year, when every police area concentrates on looking at vehicles carrying dangerous goods; police officers trained specifically in dangerous goods regulations also conduct random checks throughout the year. Each police area should have a DGSA to oversee activities and to provide assistance and advice; the level of training currently

 REGULATORS ARE STRUGGLING TO CONTINUE TO IMPROVE THE SAFETY RECORD IN AIR CARGO TRANSPORT

varies but the Forum has created a national training package to help ensure standards are maintained nationally. As with Phil Lapczuk’s presentation, it was somewhat depressing to hear from Terry that the main problems police come across are the same old issues: fire extinguishers that are inaccessible, empty or out of date; old or inadequate instructions in writing; inaccurate documentation; and missing vehicle equipment or personal protective equipment. Terry also showed some images that illustrated the often creative ways hauliers use to display orange-coloured plates. BOXED IN Another attention-grabbing presentation came from Kevin Dougherty, director of operations at Air Sea Containers, one of the event’s sponsors, who began by pointing out that “you can pull someone off the street and have them packaging dangerous goods for air transport in three days”. His presentation sought to convince the audience that three days of training is not enough to explain the intricacies of the regulations for the proper packaging of dangerous goods, particularly in light of the statistic he quoted that 70 per cent of shipments in 4GV boxes are not properly prepared. Kevin gave delegates a thorough explanation of what the UN packaging

mark means, how packagings are tested and what the test report says. He pointed them towards the text just above the signature at the bottom of the test report, which says: “The use of packaging methods, components, materials or dimensions other than those specified herein shall invalidate any approval based on these tests.” What this means is that any packaging, such as a 4GV box, used to transport dangerous goods must be in exactly the form it was in when it was tested; this includes inner containers and methods of closure. There are, though, some exceptions to this. Some outer packagings/large packagings have been successfully tested using different types of inner packaging, which provides some flexibility; in addition, fewer inner packagings may be used, providing that sufficient cushioning is used to fill the void space; further, alternative inner packagings may be used, providing they are of equivalent or smaller size and made of a material of equal or greater strength, or have smaller openings. Users need to be careful, though. Kevin described some common misconceptions that can lead to invalidation of the test: users cannot remove the buffer partitions, use alternative cushioning material, change the tape or taping method, or exceed the weight capacity. Packaging manufacturers also have responsibilities under the regulations. In particular, paragraph 6.1.1.5 in the UN Model Regulations states: “Manufacturers and subsequent distributors of UN packagings shall provide information regarding procedures to be followed to prepare packages before shipment.” Air Sea Containers is taking proactive steps to make sure its packagings are used properly. Kevin explained a new programme: Stop Know Do. This urges users to Stop before they buy packagings and make sure they Know what their requirements are under the various transport obligations. Air Sea Containers is also adding QR codes to all its packagings, providing easy access to assembly and closure instructions. BACK TO BATTERIES A number of other presentations at the VCA seminar offered advice and pointers to staying »

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in compliance and away from accidents. Alex McCulloch, dangerous goods manager at UPS International and a member of the International Air Transport Association’s (IATA) Dangerous Goods Board (DGB), provided an insight into how UPS is dealing with the threats posed by lithium batteries in airfreight. UPS has decided to use fire-resistant unit load devices (ULDs), manufactured from fibre-reinforced plastics panels that are able to withstand fires at temperatures of 650˚C for at least four hours. This gives aircrew sufficient time to get safely down on the ground. UPS began deploying these ULDs in 2015 and now has some 18,000 in use out of a total ULD inventory of more than 42,000 units. The rest are due to be replaced as soon as possible. Alex reported that ULD manufacturers are continuing to improve their units in areas such as fire detection and suppression. UPS’s own tests demonstrate that these fireresistant ULDs can mitigate gas build-up and contain a lithium battery fire. The latest ULDs being deployed are lighter and stronger than earlier models. UPS has also used fibreglass blankets as fire-resistant covers for palletised cargo. These are similarly designed and tested to withstand fires for at least four hours.

 TOP: THE DAVENTRY COURT HOTEL PLAYS ANNUAL HOST TO THE UK AND IRELAND’S DANGEROUS GOODS COMMUNITY

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UPS has taken a broad approach to the lithium battery threat. Since 2017 all shipments of lithium batteries under UN 3480 or 3090 must move as fully regulated; this provides visibility of all shipments within the UPS system. It has put in place programmes to formalise the relationship with small package shippers and for shippers of lithium metal batteries. Shipments are segregated aboard aircraft to prevent propagation of any fire to combustible material. Alex had plenty of advice for shippers. Make sure you know the regulations and ensure your people are trained; observe the 30 per cent state of charge for UN 3480

shipments; and keep up to date, as the rules change frequently. Shippers should beware of counterfeit batteries and confirm the UN 38.3 test reports. And use the IATA guidance document on lithium batteries, which is freely available on the IATA website. Sticking with lithium batteries, Keith White returned to the podium at the end of the seminar to bring the story up to the present day. He noted that there are two active work streams: the work by SAE International at the behest of the International Civil Aviation Organisation (ICAO) to develop a performancebased packaging standard to support the safe shipment of lithium batteries as cargo on aircraft, and an intersessional working group of the UN Sub-committee of Experts that is attempting to refine the classification of lithium batteries along hazard-based lines. SAE started work in 2015 with the aim of completing the project in 2016 but, three years on, it has still not been finished. Keith said he felt the membership of the project team was too wide, which has taken up time and has also resulted in vested interests having a say. There are still plenty of questions to be answered and thus it has been hard to get a draft text on which to vote. The next meeting of the SAE group was due to take place in July, with little hope of a resolution. The UN intersessional working group has made more progress and will be hoping to finalise a text during the current regulatory

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biennium (i.e. by December 2020). It has already discussed the use of packaging as mitigation in the event of a lithium battery incident, and a way of classifying batteries in division, similar to the approach used for Class 1 explosives. The UK had submitted proposals to the UN Sub-committee for its July 2019 session that sought to add tests to Chapters 6.1 and 6.6 of the Model Regulations for articles that may evolve excessive heat during transport – this would apply to oxygen generators as well as lithium batteries – to ensure that packagings used for such articles are able to contain the effects of a heating event without loss of structural integrity and without flames propagating outside the packaging. LET’S GET ONLINE Also speaking about air transport was Paul Horner, formerly with IATA but now director of Dangerous Goods Safety Group (UK), who discussed the move from paper to digital processes in the sector. The current documentation process is linear and complex and, given the availability of reliable tools, it

seems sensible to move to digital platforms, he said. IATA has already moved into the space, developing an electronic dangerous goods declaration (e-DGD) that has been avidly adopted by airlines. The digital platform supporting e-DGD allows all parties to a shipment to have visibility of the necessary documentation; this includes the shipper and consignee, any freight forwarder, the airline involved, ground handling agents and any transit airports. Paul’s presentation was eagerly received by the audience, who were excited by the development. Also speaking on the topic of digitisation was Munmohan Malli, strategic business manager of the Frameworks and Engagement Team in DfT’s Dangerous Goods Division, who explained what was happening with the European Telematics Working Group set up to look at the use of e-documents in terms of the transport of dangerous goods. So far the work has been led by Germany, France and Italy, he noted, and these countries have run some pilot projects. A broader pilot project is planned for the third quarter.

The European plan expects a voluntary system that will provide a live e-document that will show only what is on a vehicle at any point, which will certainly be of use in milkround deliveries. It will also give authorities more visibility over what’s being carried on their roads. There was some confusion among the audience as to who will benefit from this idea, with many of the opinion that business is doing very well and going ahead with implementing its own digitised telematics systems. The other presentation of note came from Ziyad Akhlaq from DfT, who had drawn the short straw and was asked to explain what Brexit will mean for the dangerous goods sector. But, as things have moved on a lot since then, his words are now obsolete. Perhaps next year’s VCA Dangerous Goods Seminar will be able to give a definitive answer – or perhaps not. It will be worth keeping an eye on the VCA website www.vehicle-certification-agency.gov.uk – for all the latest. HCB

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READ ALL ABOUT IT AIR • WOULD YOU CONSULT LAST YEAR’S NEWSPAPER TO GET TODAY’S NEWS? PROBABLY NOT, SO WHY DO SOME THINK IT’S OK TO CONSULT LAST YEAR’S REGULATIONS TO SHIP DG TODAY? EVERY BUSINESS TRIES to cut costs whenever possible and it makes sense to assess what are nice-to-haves and musthaves in terms of resources and tools to get a job done right. But, just as evidently, nobody wants to take a chance on safety. Safety is the number one priority for anyone shipping dangerous goods by air and is at the forefront of every decision they make. Air cargo touches so many players in the transport chain that when a business takes

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the risk, even an unintentional one, of not being compliant with the latest shipping standards, the entire chain is impacted. So a first step is to ensure that everyone is using the same version of the regulations. The cost of cargo reference manuals, whether new or renewals, can seem significant and may seem like a potential place to cut costs by skipping a year or two, using previous editions in between renewals. But that approach introduces the risk that

someone in the transport chain is using out-of-date standards and is out of step with players up and down the chain. For those consigning dangerous goods by air, the gold standard is the International Air Transport Association’s (IATA) Dangerous Goods Regulations (DGR), the 61st edition of which takes effect on 1 January 2020. HCB caught up with David Brennan, assistant director of cargo safety and standards at IATA HCB: Why is it important to have the latest version of the DGR every year? DB: Because things change faster than every two years. It is critical for any business shipping dangerous goods by air to be confident knowing the most recent standards are being followed for the safe and efficient transport of those goods which are, by definition, dangerous. Many a time I’ve had someone tell me they had been fined - sometimes quite heavily - for not being

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compliant with x or y update to a regulation and first thing I do is ask them what version of the DGR they were using. In every single instance, it is an older version. You just can’t take that chance. HCB: What’s new in the 2020 edition of the DGR? DB: There are significant changes in the 2020 edition of the DGR. For example, restrictions on the movement of certain goods have been relaxed a bit, providing more options to industry. Also, the application of marks, where some inexperienced people were not placing them where they needed to be. Now we’ve made it explicit that they must always appear on one side of the package, they cannot be wrapped around a corner. There are also new standards for composite packaging. Appendix H covers competency-based training, a huge concern

for training providers and employers. It’s important to get this information in 2020 before the competency-based training comes into effect at the beginning of 2021. Those are just a few examples. HCB: What would you advise someone in the air cargo chain when it comes to compliance? DB: Compliance means reducing the risk of something going wrong that might put passengers, airline employees, ground staff and everybody else in the transport chain at potential risk. It is very important to always use the most up to date regulations to maintain that compliance. It saves money, time and improves safety. It is good for your business to do it properly. In addition to an updated edition of the DGR, there are all the other IATA manuals (such as special cargo or cargo operations) that provide the same level of confidence to

the user, knowing the very latest regulations and standards are at their fingertips. For convenience, the 2020 manuals are also available in digital formats that are compatible with Windows, Android and Apple operating systems, making it more convenient to reference these manuals while on the go. Every business needs to know the best and latest practices to maintain the quality of its cargo services when handling and shipping dangerous goods or other cargo commodities such as perishables, pharmaceuticals or live animals. HCB The 2020 IATA manuals including the DGR manual are available to order by visiting bit. ly/2020manuals. HCB will return next month with a more detailed investigation of the changes that appear in the 2020 edition of the DGR.

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NOT OTHERWISE SPECIFIED FISHING FOR DANGER Readers will probably be aware of ‘detectorists’ – those people, usually in anoraks, who go around the countryside with a metal detector looking for buried treasure. Well, unbeknownst to us, there is a similar practice that goes on in waterways – ‘magnet fishing’. In fact, this only came to light because authorities in France are clamping down on enthusiasts because of the dangers involved. Apparently, illegal magnet fishermen (we assume they are mainly men) use large magnets to retrieve debris from rivers or canals but, recently, police in Nantes had to evacuate a large part of the city after a man dredged up a World War II mortar out of the River Erdre. Bomb disposal teams were called into deal with the 25-cm projectile. Press reports noted that a man was blinded in northern France in May this year, after fishing up a World War I shell containing mustard gas. Indeed, Eric Lombard, head of the bomb disposal unit at the Sécurité Civile, told reporters that the unit is called out two or three times a week. The problem is at its most severe in northern France, scene of so much fighting during both world wars; authorities say it will take three centuries to remove all the unexploded ordnance. HIDDEN BEQUEST Bomb disposal experts were also busy in Minnesota in August, where a widow was clearing out her home in preparation for selling it. The 74-year-old and her family came across a PVC tube in the back of the garage; perhaps they knew the late husband’s foibles well, or perhaps it was just a good guess, but they called in the Minneapolis Bomb Squad in any case.

HCB MONTHLY | OCTOBER 2019

What they found in the tube was eleven sticks of dynamite, which were destroyed in a controlled explosion. It is not known how long the dynamite had been there nor, indeed, what they had been kept for. DANGER FROM FISH There are many hazards in the home and dynamite is a pretty obvious one. However, a woman from Telford, UK was made seriously ill simply by cleaning out her fish tank recently. Apparently, she and her family had been on holiday and, while they were away, all the fish in the tank died. They decided to get rid of it, but had to clean it first. Later the same day, the woman developed a raging fever and, after a quick consultation with Dr Google, called an ambulance. She was put into isolation for two days and her husband, children and the paramedics that attended all needed treatment. It emerged that in the process of scrubbing the tank, the decorative coral gave off palytoxin, reportedly the second most deadly poison known to mankind and one for which there is no antidote. While the family were in hospital, their home was cordoned off and deep-cleaned using smoke bombs; they were not allowed back for several days, although the woman was unwell for more than a week. Oddly, as far as we know, coral does not appear in the UN Model Regulations and there is no reference to it in the GHS. Nonetheless, some authorities, including SA Health in South Australia, and trade bodies do publish information alerting the public to the dangers. It seems, though, that there is no requirement for retailers to provide warnings.

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